Brazil
Investment Opportuni/es
Miriam Belchior
Minister of State
Ministry of Planning, Budget and Management
BRAZIL IN A SUCCESSFUL MOMENT
Four structural movements explain this moment:
• Sustained economic growth: with price stability, fiscal
responsibility and lower external fragility
• Dynamic internal market as main driver, increasing the resilience to
the economic crisis
• Important interna/onal player as exporter and des/na/on of
foreign investments
• Investment as an important priority of public spending, having the
private sector as a partner:
•
•
•
•
•
Growth Accelera/on Program – PAC
“Minha Casa, Minha Vida” Program
Pre‐Salt Layer
World Cup ‐ 2014
2016 Olympics and Paralympic Games
BRAZIL IN A SUCCESSFUL MOMENT
We have reduced social and regional inequali/es,
ge\ng us back on the track of sustained
development, preserving the democra/c ins/tu/ons
Brazil is a country of opportuni/es, with
macroeconomic stability, an expanding
consumer market and policy support for
investment and innova/on
GROWTH ACCELERATION PROGRAM – PAC
In 2007 – PAC 1
•
•
•
•
To accelerate the pace of economic growth
To increase employment and income
To reduce social and regional inequali/es
To overcome infrastructure bo^lenecks
In 2009 ‐ a new role
• To reduce the impact of the interna/onal crisis –
countercyclical policy
In 2011 – a new phase: PAC 2 – 2011‐2014
GROWTH ACCELERATION PROGRAM –
PAC 1 – 2007‐2010
Infrastructure projects in three areas
US$ billion
Area
2007‐2010
LOGISTICS
45,1
POWER G&T
165,8
SOCIAL AND URBAN
152,3
TOTAL
363,2
94,1% completed
GROWTH ACCELERATION PROGRAM –
PAC 2 – 2011‐2014
Preliminary investment forecast
US$ billion
Area
LOGISTICS
2011‐2014
67,2
POWER G&T
260,0
SOCIAL AND URBAN
200,4
TOTAL
527,7
INVESTMENT OPPORTUNITIES
HOUSING – “MINHA CASA, MINHA VIDA”
POWER GENERATION AND TRANSMISSION
OIL AND GAS
HIGHWAYS
RAILROADS
AIRPORTS
URBAN MOBILITY
PORTS
HOUSING
“MINHA CASA, MINHA VIDA” PROGRAM
“MINHA CASA, MINHA VIDA” PROGRAM
1st PHASE – 2009‐2010 – US$ 29,4 billion
•1 million homes to families with income up to US$ 2.569, reducing Brazil’s housing
deficit by 14%
•57% of the units to low income families (monthly income lower than US$ 771)
•Subsidies for housing finance to families with income between US$ 771 and US$
1.541
•Guarantee Fund to reduce risks and costs
2nd PHASE – 2011‐2014 – US$ 69,4 billion
• To build 2 million homes
Long term partnership between
Government and private investors
ELECTRIC POWER
GENERATION AND TRANSMISSION
ELECTRIC POWER GENERATION
Compe//veness as priority, renewable sources with
low carbon emission
Annual energy biddings in a regulated market
• Hydroelectric power plant – energy delivered at the fimh year
• Wind, thermal and other power plants* – energy delivered at
the third year
Biddings planned – 2011‐2014
21 HPP – 15 thousand MW – US$ 21 billion
* New projects are included each year in accordance with the planning of the sector
ELECTRIC ENERGY TRANSMISSION
• Large interconnec/ons – 24.481 km
• Regional Lines – 18.729 km
Total Investment
US$ 27 billion
OIL AND GAS
Produc/on and Explora/on
PRODUCTION AND EXPLORATION
Increase oil and gas produc/on
Seismic assessment, drilling, plaoorm construc/on and
produc/on development
To explore the reserves and enlarge na/onal produc/on, including
the new Pre‐Salt discoveries – poten/al reserves of 11 to 16
billon barrels of oil equivalent (BOE)
Value chain: naval industry, mechanical engineering, steel, chemical,
precision engineering, among others
Total Investment – US$ 405 billion
2011‐2014 – US$ 106 billion
Amer 2014 – US$ 299 billion
REFINEMENT, PETROCHEMISTRY AND FERTILIZER
Refinery Premium I
Refinery Clara Camarão
Refinery Premium II
Refinery Abreu e Lima
Suape Petrochemical– PTA
FAFEN‐SE Sulphate of Ammonia
Suape Petrochemical– PET POY
Ammonia Factory
Nitrogen
Fer/lizer Factory III
Chemical Complex UFN‐4
Rio‘s Petrochemical Complex
Total Investment – US$ 76 billion
2011‐2014 – US$ 44 billion
Amer 2014 – US$ 32 billion
HIGHWAYS
HIGHWAYS
Preliminary investment forecast – US$ 28 billion
Projects
Expansion
Maintenance
Projects
Km
7.917
55.000
12.636
FEDERAL HIGHWAY CONCESSION PROGRAM
Total Investment– US$ 3 billion
Central‐South Region – 54% of the Brazilian GDP
GO
DF
BR‐116
BR‐040
MG
Governador
Valadares
Belo
Horizonte
Concession bidding
2nd half, 2012
Total Length: 1.754 km
• BR‐040/Distrito Federal‐Goiás‐Minas Gerais – 937 km
• BR‐116/Minas Gerais – 817 km
CONCESSION MODEL
Emphasis on service quality
• Concessionaire performs the necessary investments in the most efficient
way to meet the Performance Parameters
Investments
• Construc/ons required – recovery, duplica/on, ligh/ng, and others
• Construc/ons condi/oned to the volume of traffic – to expand capacity
• Performance Parameters: paving, safety, signage, ligh/ng, user assistance,
and others
Project rate of return – IRR: 6 to 8% p.y.
Term of Concession: 25 years
Annual tariff increase indexed to infla/on
RAILROADS
RAILROADS
Preliminary investment forecast – US$ 25 bilion
Projects
Expansion
Studies
High Speed Rail
Km
4.700
2.985
1.991
RAILROADS
North Extension
North‐South Railway
Barcarena
North‐South Railway – South Sec/on
Palmas‐Anápolis
Itaqui
Açailândia
Estreito
Midwest Integra/on Railway Uruaçu/GO‐Lucas do Rio Verde/MT
Araguaína
East‐West Integra/on Railway –
Barreiras/BA – Figueirópolis/TO
Guaraí
Vilhena
Lucas do
Rio Verde
Palmas
Figueirópolis
Midwest Integra/on Railway
Lucas do Rio Verde/MT‐Vilhena/RO
North‐South Railway
Ouro Verde/GO – Estrela d’Oeste/SP
Uruaçu
Construc/on
Studies and projects
Done / preexis/ng
In progress
To bid
Cae/té
East‐West Integra/on Railway
Ilhéus/BA‐Barreiras/BA
Ilhéus
Anápolis
Estrela
d’Oeste
Panorama
West Integra/on Railway Barreiras
Dourados
Uberlândia
North‐South Railway
Estrela d’Oeste/SP‐Panorama/SP
HIGH SPEED RAIL – US$ 18 BILLION
Resende
São José dos Campos
36 million
inhabitants
Taubaté
Campinas‐São
Paulo‐Rio de
Janeiro – 511 km
Metropolitan Region of Campinas
Volta Redonda
Metropolitan Region of São Paulo Metropolitan Region of Rio de Janeiro
Market Poten/al
•Metropolitan Region of São Paulo: 19 million inhabitants
•Metropolitan Region of Rio de Janeiro: 12 million inhabitants
•Metropolitan Region of Campinas: 2.5 million inhabitants
Economic Relevance
•Rio de Janeiro and São Paulo states concentrate 45 % of Brazil’s GDP
•São Paulo is La/n America's biggest financial center, concentra/ng 70% of the stock market
•Rio de Janeiro is the biggest Brazilian tourism hub
HIGH‐SPEED RAIL – HSR
Concession process
• 1st stage – concession of the services of opera/on, maintenance and
technological pa^ern– concession bidding – 2nd semester 2012
• 2nd stage – concession of the civil construc/on and infrastructure maintenance
according to the technical and technological parameters
Bidding to be open to all exis/ng technologies
Compulsory technology transfer
Public sector par/cipa/on: own capital and financing
Documenta/on available at www.tavbrasil.gov.br
Technical studies on demand, alignment, geology, opera/on and economic‐financial
modeling completed and available
AIRPORTS
AIRPORTS
Increasing Demand
• 10% average annual growth between 2003 and 2010
• 5,1% es/mated average annual growth un/l 2030
TOTAL INVESTMENT – US$ 12 billion
56 works in 22 airports
AIRPORT CONCESSION PROGRAM
Investment – US$ 9 billion
Airport
SÃO GONÇALO
DO AMARANTE
BRASÍLIA
CAMPINAS
São Gonçalo do Amarante
Guarulhos
Campinas
Brasília
Capacity – millions of
Passengers/year
2011
2014
0,0
25,9
9,3
14,0
• Concession of 4 airports – São Gonçalo do
Amarante/RN, Brasília/DF, Guarulhos e
Campinas/SP
SP (GUARULHOS)
• Federal Government will define the
development plan for the sector
6,2
40,0
13,3
21,7
URBAN MOBILITY
MOBILIDADE GRANDES CIDADES – US$ 10 billion
Subway, LRT, BRT and bus lanes
• Public transporta/on systems in major urban centers
• Projects of 7 ci/es were already announced – Belo Horizonte/MG, Curi/ba/PR,
Porto Alegre/RS, Salvador/BA, Fortaleza/CE, Recife/PE and Rio de Janeiro/RJ
• Program is on final stage of selec/on – construc/on to be started in 2012
Manaus
Belém
Fortaleza
São Luis
Natal
João Pessoa
Recife
Teresina
Maceió
Salvador
Brasília
Goiânia
Campo Grande
Belo Horizonte
Guarulhos Rio de Janeiro
Campinas São Paulo
Duque de Caxias
Nova Iguaçu
Curi/ba São Bernardo São Gonçalo
do Campo
Porto Alegre
Metrôs
PORTS
PORTS
Moderniza/on and Construc/on
71 PROJECTS –
24 PORTS – US$ 3 billion
Ventures
Quan/ty
Dredging
23
Port Infrastructure
37
Logis/cs Intelligence Systems/
Studies and Projects
11
WORLD CUP
12 HOST CITIES
Fortaleza
Natal
Manaus
Recife
Cuiabá
Salvador
Brasília
Belo Horizonte
São Paulo
Curi/ba
Porto Alegre
Rio de Janeiro
12 STADIUMS – US$ 4 BILLION – UNDER
Estádios da Copa 2014 – Andamento das obras (declaratório)
CONSTRUCTION
BELO HORIZONTE 50%
FORTALEZA
RECIFE
33%
61%
BRASÍLIA
MANAUS
CUIABÁ
52%
NATAL 21%
38%
RIO DE JANEIRO
40%
40%
SALVADOR 54%
CURITIBA 11%
PORTO ALEGRE 20%
SÃO PAULO 30%
URBAN MOBILITY
50 Projects – Subway, LRT, BRT and bus lanes
Total investment – US$ 7 billion
PORTS
7 passenger terminals
Total investment – US$ 497 million
OLYMPIC GAMES – RIO 2016
Olympic Park
AEROPORTOS ‐ Módulo Operacional – MOP
AEROPORTOS NAS CIDADES DA COPA
OLYMPIC GAMES 2016
Major Investments:
Building Arenas, Media Center and Olympic Village
Urban Legacy
• Urban Mobility: BRT (Transolímpica and Av. Brasil), Subway
Line 4 and LRT Port‐Downtown
• Port area revitaliza/on
Social Legacy – security and slums urbaniza/on
Environmental Legacy – sanita/on and pollu/on control
Brazil
Investment Opportuni/es
Miriam Belchior
Minister of State
Ministry of Planning, Budget and Management