Investment: Brazil the Hosting Country of World Cup …wink.globes.co.il/docs/Giancarlo Gerli-Apex...
Transcript of Investment: Brazil the Hosting Country of World Cup …wink.globes.co.il/docs/Giancarlo Gerli-Apex...
BRAZIL: YOUR GATEWAY TO BUSINESS AND INVESTMENT
Investment: Brazil the Hosting Country of World Cup and Olympic Games
Tel-Aviv - December 11, 2011
Giancarlo Gerli Director
COVERED AREAS
INFRASTRUCTURE AND BASIC INDUSTRY
PAPER/PULP TELECOM STEEL MINING
ELECTRIC POWER
WATER AND SANITATION
OIL, GAS AND PETROCHEMICAL
TRANSPORT
INTERRELATED AREAS
INVESTORS SERVICE
OPERATORS OTHER
SERVICES
ENGINEERING ASSEMBLY SYSTEMS /
EQUIPMENTS CONSTRUCTION
GOODS AND SERVICES FOR INFRASTRUCTURE AND BASIC INDUSTRY
ACTUAL INFRASTRUCTURE INVESTMENT
13.5 17.0 25.8
31.6 43.2
59.6 61.8
83.3
2003 2004 2005 2006 2007 2008 2009 2010
US$
bill
ion
Exchange rate = annual average dollar.
2003 – 2010 (2010 prices)
56.2 56.1
152.4
53.1
17.9
Transport Electric power Oil and gas Telecommunications Water andsanitation
Exchange rate= annual average dollar.
US$
bill
ion
ACTUAL INFRASTRUCTURE INVESTMENT
2003-2010
INVESTMENT REQUIREMENTS IN INFRASTRUCTURE 2011-2015
ELECTRIC POWER US$ 80.7 b
OIL AND GAS (*) US$ 241.2 b
TRANSPORT/ LOGISTICS US$ 97.7 b
TELECOMMUNICATIONS US$ 56.0 b
WATER AND SANITATION US$ 48.3 b
TOTAL US$ 523.9 b
(*) E&P, downstream, gas and energy.
Exchange rate: 1 US$ = 1.76 R$
OPPORTUNITIES AND PLANS BY SECTOR
GENERATION
Expansion plan will increase the installed capacity (118,400 MW) with additional 45,600 MW (23% renewable).
ELECTRIC POWER
10-YEARS EXPANSION PLAN (2010/2019)
This expansion plan has an integrated vision of the demand expansion
and different available sources.
TRANSMISSION
Physical expansion of the transmission system is expected to happen with additional 36,791 Km
E & P
• After-Salt areas
11th Bid Round – 174 blocks (expected in 2012)
87 off-shore
87 on-shore
• Pre-Salt area – New frontiers
Basins in Santos, Campos and Espirito Santo state
• Shipyard and Systems
Modernization and Expansion of Transpetro (Petrobras subsidiary company) fleet
Demand for building and/or leasing of:
Drilling equipments, production platforms, special and support ships
OIL & GAS
OPPORTUNITIES AND PLANS BY SECTOR
Goal: to recover investment level in infrastructure, addressing 1% of GDP at least, over 2008-2023.
NATIONAL PLAN FOR LOGISTICS AND TRANSPORT
Roadways: conservation and expansion of network
OPPORTUNITIES AND PLANS BY SECTOR
TRANSPORT
restructuring and expansion from 28,830 Km to 44,720 Km (load)
Railways:
Passengers: High Speed Train (São Paulo / Campinas /
Rio e Janeiro): 511 km - Expected investment : US$ 23 B Public hearings planned for February 2012
Ports
NEW PROJECTS PLANNED:
A new plan addressed by the regulatory agency indicates 19 areas along the Brazilian coast where to develop and build new ports.
OPPORTUNITIES AND PLANS BY SECTOR
TRANSPORT
• Private sector is also expected to invest and operate.
• The first project will be set in Manaus (Amazonas State, North Region) involving US$ 795 million.
Airports
Investment plan (2009 to 2014)
• Infraero, federal state-owned company, has released an investment plan for 16 airports with an amount of US$ 5.6 billion. Bidding processes under way or about to happen.
OPPORTUNITIES AND PLANS BY SECTOR
TRANSPORT
Private sector new opportunities
• The federal government started the concession model adoption in the Brazilian airport system. Private utilities will be responsible for investment and operation in a partnership with Infraero. • First airport concession: São Gonçalo do Amarante Airport (city of Natal ) in the State of Rio Grande do Norte (Northeast). Auction done in Aug 22th. • Next airports: Sao Paulo International, Campinas (São Paulo) and Brasília are scheduled to Dec 22th.
WATER AND SANITATION
National Plan for Water and Sanitation:
Federal Government has built a plan (now under final hearings) that aims at universalizing the access to services of water and sanitation in 20 years (2030).
OPPORTUNITIES AND PLANS BY SECTOR
Investment requirements:
• Goal is to provide water and sanitation infrastructure for 100% of the population.
• US$ 9.6 billion/year until 2030 or US$ 11.4 billion/year until 2025.
TELECOMMUNICATIONS
UNIVERSALIZATION OF TELECOMMUNICATION SERVICES
New contracts were signed between regulatory agency and private companies to extent infrastructure and services even to small communities in the country.
Challenge to merge internet, broad band, TV and telephony
OPPORTUNITIES AND PLANS BY SECTOR
Overall Projected Investment (R$ Billion)
Segment 2011 – 2014 Beyond
2014 Total
For a better city (water & sanitation + urban mobility )
57.1 -- 57.1
For the community (healthcare + education)
23.1 -- 23.1
My home, my life (housing) 278.2 -- 278.2
Water and Light for all 30.6 -- 30.6
Transport / Logistics 104.5 4.5 109.0
Energy 465.5 627.1 1092.6
TOTAL 959.0 631.6 1,590.6
PAC II (2011 – 2014)
OPPORTUNITIES AND PLANS BY SECTOR
Source: Federal Government.
INFRASTRUCTURE AREAS
Projected investment (R$ billion)
Segment 2011 – 2014 Beyond
2014 Total
Urban infrastructure (water & sanitation + urban mobility)
57.1 -- 57.1
Water and Light for all 30.6 -- 30.6
Transport and logistics 104.5 4.5 109.0
Energy 465.5 627.1 1,092.6
TOTAL 657.7 631.6 1,289.3
Source: Federal Government.
PAC II (2011 – 2014)
OPPORTUNITIES AND PLANS BY SECTOR
Urban Infrastructure (R$ billion)
W &S: water 13.0
W & S: sewage 20.0
W & S: drainage 10.0
W & S: waste mgmt 1.5
W & S: project development 0.6
Total Water & Sanitation
45.1
Urban mobility (large cities) 12.0
TOTAL 57.1
Source: Federal Government.
PAC II (2011 – 2014)
OPPORTUNITIES AND PLANS BY SECTOR
May 13, 2008 – Ministry of Sports and CBF (Brazilian Soccer Confederation) sign a Technical Cooperation Agreement with ABDIB
March 2009 – ABDIB Study concluded : Infrastructure Demand to handle World Cup 2014 in 18 candidate host cities.
Emphasis on structuring projects (multiplying factor)
LEGACY
WORLD CUP 2014
Required Actions
in 9 areas
City Requirements
• Hotel network Able to meet demand
• Public Security
• Touristic and economic potential in the region
• Hospital network (public and private)
•Telecommunications
• Power
• Infrastructure for roads Enabling connections among airport / hotel / stadium
• Infrastructure for airports and ports Allowing transfers of delegations, tourists and supporters in a fast and efficent way
• Water & Sanitation
23
WORLD CUP 2014
GAP ANALYSIS A
B
Actual status
Estimated status in
2014 with existing
projects
Gap still open to
be closed with
recommended
additional projects
Urban Mobility
Hotel network
Power
Telecomm.
Hospital network
Water/ Sanitation
A B
A B
A B
A B
Security
A B
A B
Airports
Ports A B
A B
A B
Key
Ind
icato
rs- M
inim
um
level - 2
014
18
Candidate
cities
Key
Ind
icato
rs - Id
eal le
vel - 2
014
Explanation
Minimum
Level
Ideal
level
Minimum
level of
requirements
to be a host
city for 2014
World Cup
Ideal level to
enable a city
to host any
game in 2014
World Cup,
independently
of the phase
WORLD CUP 2014
Estimated Investment Volume (US$ Million)
Dimension Projects Amount
URBAN MOBILITY 287 39,791.51
16 AIRPORTS 38 4,165.00
PORTS 7 463.71
ELECTRICAL POWER 128 1,566.65
WATER & SANITATION 186 7,313.82
HOTEL NETWORK 132 7,558.41
HOSPITAL NETWORK 25 690.47
SECURITY 63 2,478.79
STADIAS / ARENAS 12 3,836.12
TELECOMMUNICATIONS 30 2,049.53
Total 908 69,914.01
WORLD CUP 2014
Investment Potential by Host-Cities
Host City R$ Million
MANAUS 6,036.95 SALVADOR 8,999.44 FORTALEZA 6,727.20
BRASÍLIA 6,169.50 BELO HORIZONTE 11,681.40
CUIABÁ 2,117.20 RECIFE 5,813.01
CURITIBA 6,830.21 RIO DE JANEIRO 18,675.90
NATAL 5,756.31 PORTO ALEGRE 7,352.20
SÃO PAULO 34,570.80
Total Brazil 120,730.12
Natal
Manaus
Fortaleza
Salvador
Belo Horizonte
Brasília
Cuiabá
São Paulo
Rio de Janeiro
Curitiba
Porto Alegre
Recife
WORLD CUP 2014
Airports INVESTMENT PLAN (2010 - 2014)
Investment Amount (R$ Million)
São Paulo (Viracopos, Guarulhos) 2,139.8
Rio de Janeiro (Galeão, Santos Dumont) 863.7
Belo Horizonte (Confins) 508.6
Porto Alegre 1,208.3
Curitiba 400.8
Brasília 864.6
Cuiabá 90.4
Manaus 327.4
Fortaleza 283.7
Salvador 44.4
Natal 576.9
Recife 19.8
TOTAL AIRPORTS 7,328.4
WORLD CUP 2014
City Project Objectives
Belo Horizonte Investment on the Sewage System for BH Metropolitan
network
Expansion and improvement of the current Sewage
System
Cuiabá Increase in the Sewage Collection Expansion of sewage tunnels
Curitiba Reduction, Disposal and recovery of solid waste Actions aiming at reducing waste generation and
implement adequate disposal
Fortaleza Implementation of the Cocó Macro System (Sewage) Cover 80% population
Natal Implementation of collection network and ocean outfalls
in Nothern region Cover 100% population via sewage network
Porto Alegre New water collection Reduce cost of chemical products for water treatment
Recife/Olinda Capibaribe Basin
Re-urbanization, creation of new public areas and streets
36 boroughs in the western area improvement of
environmental conditions in the Capibaribe basin
Rio de Janeiro Sewage Expansion of the sewage collection and treatment for Rio
Marangá basin, improving coverage.
Salvador
Expansion of the Sewage system - collection, pumping
stations, home connections - Bacias do Comércio, Aratu-
Macaco, Jaguaribi, Calafate 1 e 2, Alto do Camurujipe 1 e
2, Tripas, Saboeiro, Mangabeira e Península
WORLD CUP 2014
WATER AND SANITATION
INVESTMENT PLAN (2010 - 2014)
Ports
Investment Amount (R$ Million) Project Description
São Paulo (Santos) 119.9 Pier improvement and internal access
Rio de Janeiro 314.0 Implementation of 3 Piers
Manaus 89.4 Adaptation of 3 Storage Depots to Passenger Terminals, restauration of luggage storage, pier expansion,
front-area urbanization with parking lots and passangers crossways.
Natal 53.7 Adaptation of old installations to Passenger Terrminals, Pier expansion, area urbanization with parkings and
better accesses
Fortaleza (Mucuripe) 105.9 Construction of Passenger Terminal, new pier pavement, area urbanization with parkings and better accesses
Salvador 36.0 Adaptation of old installations to Passenger Terrminals, Pier expansion, area urbanization with parkings and
better accesses
Recife 21.8 Adaptation of a storage Depot and construction of a new passenger Terminal, pavement, and area urbanization
with parkings and better accesses
TOTAL PORTS 740.7
WORLD CUP 2014
INVESTMENT PLAN (2010 - 2014)
Area Investment (US$ million)
Investment COJO *
(US$ million)
Total (US$
million) %
Olympic Villages
1,270.25 0.0 1,270.25 20.69
Sport Installations
476.65 282.54 759.19 12.13
Security 235.95 0.00 235.95 3.77
Technology 202.93 35.82 238.75 3.81
Transport 3,730.00 0.00 3,730.00 59.59
Total 5,915.78 318.36 6,234.14 100.0
% 94.91 5.09 100.0
*COJO = Organization Committee for the Games
OLYMPIC GAMES 2016
POTENTIAL INVESTMENT IN INFRASTRUCTURE
35
AGENDA
Actions planned for the Olympic Games 2016 are perfectly connected with those for the Word Cup in 2014. Major projects in Rio include:
Implementation of street works, special works, micro and
partial drainage and / or adjustments in existing streets, to
facilitate access to huge sports events;
Reurbanization in areas sorrounding Maracanã and the
harbour, with a great and significant social impact in
installations, housing and transport;
Corredor T5 - Barra da Tijuca – Penha (Bus Rapid Transit);
OLYMPIC GAMES 2016
36
Express corredor connecting Lagoa with Barra boroughs;
Connection between Deodoro and Barra boroughs (BRT);
Connection Barra and Penha (BRT);
Rio Olympic Park;
Olympic Centers;
Media Village in Barra area;
Olympic Village;
Main Press Center and International Broadcasting Center
Sponsors Village and Live Site.
AGENDA
OLYMPIC GAMES 2016
Source: Bovespa (São Paulo Stock Exchange) Elaboration: Abdib
MARKET VALUE OF INFRASTRUCTURE COMPANIES
720,120,306,086
765,378,921,112
374,535,852,471
474,171,527,275
0
100,000,000,000
200,000,000,000
300,000,000,000
400,000,000,000
500,000,000,000
600,000,000,000
700,000,000,000
800,000,000,000
900,000,000,000
1,000,000,000,000
August 2008 – October 2011 (stocks in R$)
Total with Petrobras Total without Petrobras
INFRASTRUCTURE INVESTMENT FUNDS
Operating funds:
AG Angra Infraestrutura: W&S + infrastructure sectors
FIP Brasil Energia: energy and renewable energy
Infra Brasil FIP: W&S + transport, energy
BRZ Logística : transport
FIP Caixa Ambiental: W&S
FIP Energia PCH: Small Hydro and Thermal plants
FI FGTS : all infrastructure sectors
Note: Committed Capital = US$ 6.3 billion
How to get funding for investment?
New rules, approved last June and already in practice, offer suspension of income tax or reduction to zero for investment in infrastructure
One goal: enhance infrastructure investment by tax reduction for domestic and foreigner investors. Another goal: improve a long term private funding for infrastructure projects and help public banks in the effort to provide additional long term funding for the sector.
Source: BNDES (Social and Economic Brazilian Development Bank)
Economic sector
2003 2004 2005 2006 2007 2008 2009
2010
Agrobusiness 4.6 6.9 4.1 3.4 5.0 5.6 6.9 10.1
Industry 14.1 13.1 18.5 19.6 18.0 30.1 29.6 41.4
Basic industry 1.9 2.6 4.7 6.2 6.6 5.7 10.7 8.7
Services and Retail
3.7 3.4 4.6 5.6 8.7 11.6 21.1 30.7
Infrastructure 9.2 13.9 15.2 16.6 26.6 37.9 68.1 77.5
Total 33.5 39.9 47.1 51.4 64.9 90.9 136.4 168.4
Basic industry (%) in global outlays
5.7 6.5 10.0 12.1 10.2 6.3 7.8 5.2
Infrastructure (% ) in global outlays
27.5 34.8 32.2 32.3 41.0 41.7 50.0 46.0
BNDES FINANCING BY ECONOMIC SECTORS
Original values, in R$ billion
43
Investors in World Cup 2014 are twice welcome:
They can cooperate to a very important event
from both social and economic point of view
Projects legacy will equally benefit society and
those who accomplished them or helped in
their accomplishment
FINAL MESSAGE
Thank you!
ASSOCIAÇÃO BRASILEIRA DA INFRAESTRUTURA E INDÚSTRIAS DE BASE
www.abdib.org.br [email protected]
THANK YOU!