Investment Opportunies · 2nd PHASE – 2011‐2014 – US$ 69,4 ... Lucas do Rio...
Transcript of Investment Opportunies · 2nd PHASE – 2011‐2014 – US$ 69,4 ... Lucas do Rio...
Investment Opportuni/esInvestment Opportuni/es
BrazilBrazil
Miriam BelchiorMiriam BelchiorMinisterMinister ofof StateStateMinistryMinistry ofof Planning, Budget Planning, Budget andand Management Management
Four structural movements explain this moment:Four structural movements explain this moment:• Sustained economic growth: with price stability, fiscalresponsibility and lower external fragility
• Dynamic internal market as main driver, increasing the resilience tothe economic crisis
• Important interna/onal player as exporter and des/na/on offoreign investments
• Investment as an important priority of public spending, having theprivate 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 BRAZIL IN A SUCCESSFUL MOMENTIN A SUCCESSFUL MOMENT
We have reduced social and regional inequali/es,We have reduced social and regional inequali/es,ge\ng us back on the track of sustainedge\ng us back on the track of sustained
development, preserving the democra/c ins/tu/onsdevelopment, preserving the democra/c ins/tu/ons
BRAZIL BRAZIL IN A SUCCESSFUL MOMENTIN A SUCCESSFUL MOMENT
Brazil is a country of opportuni/es, withBrazil is a country of opportuni/es, withmacroeconomic stability, macroeconomic stability, an expandingan expandingconsumer market and policy consumer market and policy support forsupport for
investment investment and innova/onand innova/on
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
Infrastructure projects in three areas
GROWTH ACCELERATION PROGRAM –PAC 1 – 2007‐2010
US$ billion
94,1% completed94,1% completed
Area 2007‐2010
LOGISTICSLOGISTICS 45,145,1
POWER G&TPOWER G&T 165,8165,8
SOCIAL AND URBANSOCIAL AND URBAN 152,3152,3
TOTALTOTAL 363,2363,2
GROWTH ACCELERATION PROGRAM –PAC 2 – 2011‐2014
Preliminary investment forecast
US$ billion
Area 2011‐2014
LOGISTICSLOGISTICS 67,267,2
POWER G&TPOWER G&T 260,0260,0
SOCIAL AND URBANSOCIAL AND URBAN 200,4200,4
TOTALTOTAL 527,7527,7
HOUSING – “MINHA CASA, MINHA VIDA”
POWER GENERATION AND TRANSMISSION
OIL AND GAS
HIGHWAYS
RAILROADS
AIRPORTS
URBAN MOBILITY
PORTS
INVESTMENT OPPORTUNITIES
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 housingdeficit 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 betweenGovernment and private investors
ELECTRIC POWERELECTRIC POWERGENERATION AND TRANSMISSIONGENERATION AND TRANSMISSION
Compe//venessCompe//veness as as prioritypriority, , renewablerenewable sourcessources withwithlowlow carboncarbon emissionemission
ELECTRIC POWER GENERATIONELECTRIC POWER GENERATION
Biddings planned – 2011‐201421 HPP – 15 thousand MW – US$ 21 billion
Annual energy biddings in a regulated market• Hydroelectric power plant – energy delivered at the fimh year• Wind, thermal and other power plants* – energy delivered atthe third year
* New projects are included each year in accordance with the planning of the sector
ELECTRIC ENERGY TRANSMISSION
•• Large interconnec/ons Large interconnec/ons –– 24.481 km 24.481 km•• Regional Regional LinesLines –– 18.729 18.729 kmkm
Total InvestmentUS$ 27 billion
OIL AND GASOIL AND GASProduc/onProduc/on and and Explora/on Explora/on
Increase oil and gas produc/onIncrease oil and gas produc/onSeismic assessment, drilling, plaoorm construc/on andSeismic assessment, drilling, plaoorm construc/on and
produc/on developmentproduc/on development
To explore the reserves and enlarge na/onal produc/on, includingthe 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
PRODUCTION AND EXPLORATIONPRODUCTION AND EXPLORATION
Total Investment – US$ 405 billion2011‐2014 – US$ 106 billionAmer 2014 – US$ 299 billion
Suape Petrochemical– PTA
Refinery Abreu e Lima
Rio‘s Petrochemical Complex
Refinery Premium I Refinery Clara Camarão
NitrogenFer/lizer Factory III
Chemical Complex UFN‐4
Ammonia Factory
Refinery Premium II
FAFEN‐SE Sulphate of Ammonia
REFINEMENT, PETROCHEMISTRY AND FERTILIZERREFINEMENT, PETROCHEMISTRY AND FERTILIZER
Suape Petrochemical– PET POY
Total Investment – US$ 76 billion2011‐2014 – US$ 44 billion Amer 2014 – US$ 32 billion
HIGHWAYSHIGHWAYS
Projects Km
Expansion 7.917
Maintenance 55.000
Projects 12.636
HIGHWAYSHIGHWAYS
Preliminary investment forecast Preliminary investment forecast –– US$ 28 US$ 28 billionbillion
Total Length: 1.754 km• BR‐040/Distrito Federal‐Goiás‐Minas Gerais – 937 km• BR‐116/Minas Gerais – 817 km
Central‐South Central‐South RegionRegion –– 54% 54% ofof thethe BrazilianBrazilian GDP GDP
FEDERAL HIGHWAY CONCESSION PROGRAMFEDERAL HIGHWAY CONCESSION PROGRAMTotal Total InvestmentInvestment–– US$ US$ 3 3 billionbillion
GovernadorValadares
BeloHorizonte
GO
DF
MG
BR‐040
BR‐116
Concession bidding2nd half, 2012
Emphasis on service qualityEmphasis on service quality• Concessionaire performs the necessary investments in the most efficientway to meet the Performance Parameters
InvestmentsInvestments• 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 Project rate of return –– IRR: 6 to IRR: 6 to 8% 8% p.y.p.y.
TermTerm ofof ConcessionConcession: : 25 25 yearsyears
Annual tariff Annual tariff increase indexed increase indexed to infla/onto infla/on
CONCESSION MODEL CONCESSION MODEL
RAILROADSRAILROADS
Projects Km
ExpansionExpansion 4.7004.700
StudiesStudies 2.9852.985
High High SpeedSpeed RailRail 1.9911.991
RAILROADSRAILROADS
PreliminaryPreliminary investmentinvestment forecastforecast –– US$ US$ 25 25 bilionbilion
Construc/on
Studies and projects
Figueirópolis
UruaçuCae/té
Anápolis
Palmas
Açailândia
Ilhéus
Araguaína
Guaraí
Estrelad’Oeste
Itaqui
VilhenaBarreiras
Lucas doRio Verde
East‐West Integra/on Railway Ilhéus/BA‐Barreiras/BA
North‐South RailwayEstrela d’Oeste/SP‐Panorama/SP
Midwest Integra/on Railway Uruaçu/GO‐Lucas do Rio Verde/MT East‐West Integra/on Railway –
Barreiras/BA – Figueirópolis/TO
Barcarena
Estreito
North ExtensionNorth‐South Railway
North‐South RailwayOuro Verde/GO – Estrela d’Oeste/SP
Midwest Integra/on Railway Lucas do Rio Verde/MT‐Vilhena/RO
Uberlândia
North‐South Railway – South Sec/onPalmas‐Anápolis
In progressTo bid
Done / preexis/ng
RAILROADSRAILROADS
Panorama
West Integra/on Railway Dourados
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
Metropolitan Region of Campinas
Metropolitan Region of São Paulo
São José dos CamposTaubaté
Volta Redonda
Resende
Metropolitan Region of Rio de Janeiro
36 millioninhabitants
HIGH SPEED RAIL – US$ 18 BILLION
Campinas‐SãoPaulo‐Rio de
Janeiro – 511 km
HIGH‐SPEED RAIL – HSR
Concession process• 1st stage – concession of the services of opera/on, maintenance andtechnological pa^ern– concession bidding concession bidding –– 2nd semester 2012 2nd semester 2012
• 2nd stage – concession of the civil construc/on and infrastructure maintenanceaccording 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.brTechnical studies on demand, alignment, geology, opera/on and economic‐financialmodeling completed and available
AIRPORTS
Increasing DemandIncreasing Demand••10% average annual growth between 2003 and 201010% average annual growth between 2003 and 2010
••5,1% es/mated average annual growth un/l 20305,1% es/mated average annual growth un/l 2030
AIRPORTSAIRPORTS
TOTAL INVESTMENT – US$ 12 billion56 works in 22 airports
AIRPORT CONCESSION PROGRAMAIRPORT CONCESSION PROGRAMInvestment Investment –– US$ 9 US$ 9 billionbillion
BRASÍLIA
CAMPINAS
SP (GUARULHOS)
SÃO GONÇALODO AMARANTE
•• Concession of 4 airports Concession of 4 airports –– São São Gonçalo doGonçalo doAmarante/RN, Brasília/DF, Amarante/RN, Brasília/DF, Guarulhos eGuarulhos eCampinas/SPCampinas/SP
•• Federal Federal GovernmentGovernment willwill define define thethedevelopmentdevelopment planplan for for thethe sector sector
AirportCapacity – millions ofPassengers/year2011 2014
São Gonçalo do AmaranteSão Gonçalo do Amarante 0,00,0 6,26,2GuarulhosGuarulhos 25,925,9 40,040,0CampinasCampinas 9,39,3 13,313,3BrasíliaBrasília 14,014,0 21,721,7
URBAN MOBILITY
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
MOBILIDADE GRANDES CIDADES – US$ 10 billion
Fortaleza
Recife
Salvador
Belo Horizonte
Brasília
Rio de Janeiro
Porto Alegre
Curi/ba
São Paulo
Manaus
Goiânia
São LuisBelém
CampinasGuarulhos
Campo Grande
João Pessoa
Teresina
Duque de CaxiasNova IguaçuSão Gonçalo
Natal
São Bernardo do Campo
Maceió
Metrôs
PORTS
PORTSModerniza/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 CUPWORLD CUP
Manaus
Fortaleza
Natal
Recife
Salvador
Belo Horizonte
Brasília
Cuiabá
São Paulo Rio de Janeiro
Curi/ba
Porto Alegre
12 HOST CITIES
Estádios da Copa 2014 – Andamento das obras (declaratório)12 STADIUMS – US$ 4 BILLION – UNDERCONSTRUCTION
BELO HORIZONTEBELO HORIZONTE BRASÍLIABRASÍLIA CUIABÁCUIABÁ CURITIBACURITIBA50% 52% 40% 11%
FORTALEZAFORTALEZA MANAUSMANAUS NATALNATAL PORTO ALEGREPORTO ALEGRE61% 38% 21% 20%
RECIFERECIFE RIO DE JANEIRORIO DE JANEIRO SALVADORSALVADOR SÃO PAULOSÃO PAULO33% 40% 54% 30%
50 Projects 50 Projects –– Subway Subway, LRT, BRT and bus lanes, LRT, BRT and bus lanes
URBAN MOBILITYURBAN MOBILITY
Total investment Total investment –– US$ US$ 7 7 billionbillion
7 passenger terminals7 passenger terminals
PORTSPORTS
Total investment Total investment –– US$ US$ 497 497 millionmillion
Olympic Park
OLYMPIC GAMES OLYMPIC GAMES –– RIO 2016 RIO 2016
AEROPORTOS ‐ Módulo Operacional – MOPAEROPORTOS NAS CIDADES DA COPAOLYMPIC GAMES 2016OLYMPIC GAMES 2016
Major Investments:Major Investments:
Building Arenas, Media Center and Olympic VillageBuilding Arenas, Media Center and Olympic Village
Urban LegacyUrban Legacy• Urban Mobility: BRT (Transolímpica and Av. Brasil), SubwayLine 4 and LRT Port‐Downtown• Port area revitaliza/on
Social Legacy Social Legacy –– security and slums urbaniza/on security and slums urbaniza/on
Environmental Legacy Environmental Legacy –– sanita/on and pollu/on control sanita/on and pollu/on control
Investment Opportuni/esInvestment Opportuni/es
BrazilBrazil
Miriam BelchiorMiriam BelchiorMinisterMinister ofof StateStateMinistryMinistry ofof Planning, Budget Planning, Budget andand Management Management