INVESTMENT OPPORTUNITUES IN THE STATE OF AMAZONAS

Creating Opportunities

• 98% of Amazonas State’s Forest is

preserved;

• The Brazilian Amazon covers about 59% of

the Brazilian territory.

Population: 3,5 million

State Capital: Manaus

Average Temperature: 31,4 ºC

Area: 1,57 million Km² (39% Brazilian Amazon)

Intl. Borders: Peru / Colombia / Venezuela

World's Largest: Biodiversity, Potable Water Reservoir, River (Amazonas)

Income per Capita: US$ 9.626

GDP: US$ 33,54 bi - R$ 58,29 bi (2010

The State of Amazonas

Brazilian Amazon

Western Europe

CREATION OF THE MANAUS FREE TRADE ZONE

(Bill # 3.173/57 altered by art. 1st of Decree # 288/67)

“Manaus Free Trade Zone is an area of free trade, import and export and of

special fiscal incentives, established with the purpose of creating within

the Amazon, an industrial, commercial and agricultural center endowed

with economic conditions to allow its development, in face of local

factors and great distances from the centers that consume its products”

• President Dilma Roussef has announced support from the Federal Government to

extend ZFM’s Tax Incentives for fifty (50) more years. – until 2073

Manaus Free Trade Zone - ZFM

Subsectors/activities that contribute to the

Manaus Industrial Park Revenue

Jan-Dec/2010

Revenue (2010): US$ 35,1 billion

Electronics35,04%

Others11,23 %

Two Wheels19,89%

Chemical11,99%

Computer Goods9,68%Metallurgical

7,02%

Thermoplastic5,16%

Manaus Industrial Park

Source: SUFRAMA

Source:COGEC/SUFRAMA -

LOCAL INDICATORS BEFORE ZFM AFTER 45 YEARS OF ZFM

COLLEGES AND UNIVERSITIES 1 13

MASTERS AND DOCTORATES DEGREES 0 20

RESEARCH CENTERS 2 8

POPULATION 254.000 1.738.641

STATE SCHOOLS 6 600

HEALTH INSTITUTIONS 8 464

GDF AMAZONAS/ GDP BRAZIL 0,6 1,58

GDP PER CAPITA AMAZONAS - 11.829

PROCESSING INDUSTRY 173 600

DISTRICTS 31 119

VEHICLE FLEET 828 400.254

SHOPPING CENTERS 0 5

Manaus Figures

• 7th most populous city of Brazil

• 6th richest of the country

• 4th city in tax collections

• 2nd biggest Industrial Hub in Brazil

• 1st City in population growth within cities of more than 1

million inhabitants

Manaus

6/46

• Over 550 industries manufacturing locally;

• Several global corporations settled here;

• Over 107.629 workers employed;

• Turnover: U$ 35 billion in 2010;

• 1.018 new projects approved since 2007;

• US$ 13,9 billion in forecasted investments since 2007;

• Federal and state tax incentives as well as import tariff

reductions

Manaus Industrial Park

Source: COISE/CGPRO/SAP – SUFRAMA 2012

Real DollarIN BILLIONSGrowth Highlights

2003 a 2010: Real = 130% Dólar = 253%

Evolução do Faturamento do PIMPIM Revenue Evolution

Fonte : INPE/PRODES 2009

PIB E TAXA DE DESMATAMENTOGDP Growth X Deforestation

8/46

Naval Industry

GT PNAVAL

Current Scenario

• Annual Revenue of800 million dollars• 2nd Largest Naval hub,

8000 direct and 24000 indiretct Jobs

Illegal MarketTax EvasionEnvironmenta DegradationSocial VulnerabilityCluttered disposition22,000 km of navigable rivers (zero km of waterways)

GT PNAVAL

Proposed Scenario

Increased revenuesNew economic matrixfor AmazonasReducing the cost of Amazonas

10 years of deployment•Annual Revenue of15 billion dollars•30,000 new direct jobs

•Attraction of an anchor shipbuilder

• Strengthening of the local shipbuilding industry

•Amazonas - “HUB” of repairing services

• Shipbuilder of defense

• Harbor

GT PINAVAL

Assumptions

Implantation in two steps

Step 1

Area of 38,8km².

Approximately 10 thousand

direct jobs.

Step 2

Area of 63,47km².

Approximately 20 thousand

direct jobs.

GT PINAVAL

OVERVIEW

Etapa 1

University City

• Investiment: R$ 300 millions;

• Complete Urban structure:

– Residential and commercial spaces;

– Highways;

– Leisure areas and tourism;

– Government Agencies (Bus terminal, hospital, police station, fire station);

• Initial project: 13.000.000 m2;

• Inauguration scheduled: 1º semester of 2014;

– Beginning with construction of the Rectory and buildings of Health Sciences, Social Sciences and Technology;

• Presence of all units of University of Amazonas State (UEA);

SEPLANSecretaria de Estado de Planejamento e

Desenvolvimento Econômico

University City

• Teaching Hospital: 200 beds and Olympic Village;

• Largest housing complex for students in Brazil:

– Initially two thousand student places;

• Linear Park: where visitors can admire the flora and fauna of the Amazon de onde os visitantes poderão contemplar a flora e fauna amazônica through suspended walkways;

• Sustainable items:

– Solid Waste Management;

– Energy efficiency;

– Water recyclingReaproveitamento de água.

SEPLANSecretaria de Estado de Planejamento e

Desenvolvimento Econômico

MINING, OIL & GAS INDUSTRY.

INVESTMENT OPPORTUNITIES IN THE STATE OF

AMAZONAS, BRAZIL.

Amazon Basin:

19,7% fresh water

Availability of

hydric resources

world: 41.997,73

km³/ano

SEPLANSecretaria de Estado de Planejamento e

Desenvolvimento Econômico

Solimões Basin - Amazonas State

Oil and Gas Industry

Jatapu Mine - Limestone

for cement plant

SEPLANSecretaria de Estado de Planejamento e

Desenvolvimento Econômico

K - POTASSIUM

S E P L A NSecretaria de Estado de Planejamento e

Desenvolvimento Econômico

THANK YOU!

SEPLANSECRETÁRIA DE ESTADO DE PLANEJAMENTO E

DESENVOLVIMENTO ECONÔMICOwww.amazonas.am.gov.br

www.seplan.am.gov.br

GT PINAVAL