September | 2013 Ministry of
Finance
B R A Z I L I A N G O V E R N M E N T
Brazil’seconomic outlook and
investment opportu...
3
Ministry
of Finance
Foreword
Economic Outlook
Economic Development and Demand for Infrastructure
Capital Market Instrume...
5
Ministry
of Finance
5
Foreword
Foreword
Brazil currently presents an enormous opportunity for investment in infrastructu...
6
Ministry
of Finance
6
Foreword
of 2013 when compared to the second quarter of 2012. Furthermore, manufacturing shows sig...
Economic Outlook
8
Ministry
of Finance
8
EconomicOutlook
GDP, QoQ seasonally adjusted annual rate, in % change, second quarter 2013
The wor...
9
Ministry
of Finance
9
EconomicOutlook
Purchasing Managers Index (PMI), manufacturing, in points
Slow recovery of advance...
10
Ministry
of Finance
10
EconomicOutlook
10-Year U.S.Treasury yields, in % per annum
Uncertainty about the tapering of th...
11
Ministry
of Finance
11
EconomicOutlook
Nominal exchange rate, in U.S. dollar/national currency, index (January 2007 = 1...
12
Ministry
of Finance
12
EconomicOutlook
In US$ million
Volatility did not affect the capital account of the balance of p...
13
Ministry
of Finance
13
EconomicOutlook
Foreign direct investment in G-20 countries, 2012, in US$ billion
Confidence: hi...
14
Ministry
of Finance
14
EconomicOutlook
Public sector net debt and General government gross debt, in % of GDP
Public sec...
15
Ministry
of Finance
15
EconomicOutlook
International reserves, in US$ billion (July 2013)
Brazil’s international reserv...
16
Ministry
of Finance
16
EconomicOutlook
Reserves-to-imports of goods ratio, in %, July 2013
Brazil’s international reser...
17
Ministry
of Finance
17
EconomicOutlook
Reserves-to-short term external debt ratio, in %, March 2013
Brazil’s internatio...
18
Ministry
of Finance
18
EconomicOutlook
International reserves, in US$ billion
Brazil’s international reserves have not ...
19
Ministry
of Finance
19
EconomicOutlook
In billions of U.S. dollars and millions of contracts
The role of derivatives in...
20
Ministry
of Finance
20
EconomicOutlook
In billions of U.S. dollars and millions of contracts
Sixth largest market for c...
21
Ministry
of Finance
21
EconomicOutlook
Foreign exchange derivative transactions over spot transactions, in %
In Brazil,...
22
Ministry
of Finance
22
EconomicOutlook
Current account, in % of GDP, second quarter of 2013
G20 emerging markets extern...
23
Ministry
of Finance
23
EconomicOutlook
Trade balance, total and ex-oil, in US$ billion
Oil and gasoline accounted for a...
24
Ministry
of Finance
24
EconomicOutlook
Gross fixed capital formation, seasonally adjusted, in % QoQ
Despite difficultie...
25
Ministry
of Finance
25
EconomicOutlook
Broad Consumer Price Index (IPCA), in %YoY
Inflation within the target range sin...
26
Ministry
of Finance
26
EconomicOutlook
Consumer price index, in %YoY, August 2013
G20 emerging markets inflation
*July2...
27
Ministry
of Finance
27
EconomicOutlook
In %, latest available data
Sound financial system
Source:InternationalMonetaryF...
28
Ministry
of Finance
28
EconomicOutlook
Real estate loans, annual growth rate, in %
Real estate loans have still huge op...
29
Ministry
of Finance
29
EconomicOutlook
Budget balance, in % of GDP
Brazil presents sound fiscal accounts
*IMFestimates
...
30
Ministry
of Finance
30
EconomicOutlook
10-year Brazilian Global bonds* and U.S.Treasury yields, in % per annum
Confiden...
31
Ministry
of Finance
31
EconomicOutlook
Non-resident share in federal public debt, in % of total DFPD*
Increasing number...
Economic Development
and Demand for
Infrastructure
34
Ministry
of Finance
EconomicDevelopmentand
DemandforInfrastructure
Broad retail sales, seasonally adjusted, in %YoY
Dom...
35
Ministry
of Finance
EconomicDevelopmentand
DemandforInfrastructure
New formal jobs, in millions
Sustainable labor marke...
36
Ministry
of Finance
EconomicDevelopmentand
DemandforInfrastructure
Airline traffic, in millions of passengers
Increasin...
37
Ministry
of Finance
EconomicDevelopmentand
DemandforInfrastructure
Brazilian trade flow (exports plus imports), in US$ ...
38
Ministry
of Finance
EconomicDevelopmentand
DemandforInfrastructure
Total cargo handling in ports, in millions of tons
S...
39
Ministry
of Finance
EconomicDevelopmentand
DemandforInfrastructure
In thousand vehicles per km per year, on highways un...
40
Ministry
of Finance
EconomicDevelopmentand
DemandforInfrastructure
New vehicles (buses, trucks, light commercial vehicl...
41
Ministry
of Finance
EconomicDevelopmentand
DemandforInfrastructure
Revenue tonne kilometers (RTKs), in billions
Railroa...
42
Ministry
of Finance
EconomicDevelopmentand
DemandforInfrastructure
Brazilian grain harvest*, in millions of tons
Brazil...
43
Ministry
of Finance
EconomicDevelopmentand
DemandforInfrastructure
Brazil in the global ranking, by production and expo...
Capital Market
Instruments
46
Ministry
of Finance
CapitalMarketInstruments
Howcannon-residentinvestorsnegotiatedebt securitiesandfundsinBrazil?
CMNRe...
47
Ministry
of Finance
CapitalMarketInstruments
FinancialInstrumentsforInfrastructureInvestments
Definition Benefitsfor
no...
48
Ministry
of Finance
CapitalMarketInstruments
Definition Benefitsfornon-
-residentinvestors* Minimum Requirements
Invest...
49
Ministry
of Finance
CapitalMarketInstruments
Definition Benefitsfornon-
-residentinvestors* Minimum Requirements
Infras...
50
Ministry
of Finance
CapitalMarketInstruments
Definition Benefitsfor
non-residentinvestors* Minimum Requirements
Brazili...
51
Ministry
of Finance
CapitalMarketInstruments
Producedby:MinistryofFinanceand
BrazilianDevelopmentBank(BNDES)
FinancialI...
Highways
54
Ministry
of Finance
Highways
Highway Concessions
Highways
Updatedinformationavailableat
www.logisticsbrazil.gov.br
Sour...
55
Ministry
of Finance
Highways
Auction Concluded
on September 18th
Road Concession – BR-050: from Cristalina (GO) (BR-040...
56
Ministry
of Finance
Highways
Road Concession – BR-040: Brasília (DF) – Juiz de Fora (MG)
Object Demand Criteria
• Secti...
57
Ministry
of Finance
Highways
RoadConcession–BR-116:fromBA/MGborder(DivisaAlegre)toMG/RJborder(AlémParaíba)
Object Deman...
58
Ministry
of Finance
Highways
Road Concession – BR-101:
from the entry point of BR-324 (BA) to the entry point of the BA...
59
Ministry
of Finance
Highways
Road Concession – BR-262: from the entry point of BR-381 (J. Monlevade) to the entry
point...
60
Ministry
of Finance
Highways
RoadConcession–BR-153:fromPalmas(TO)toAnápolis(GO)(BR-060entrypoint)
Object Demand Criteri...
61
Ministry
of Finance
Highways
Road Concession – BR-060 (DF/GO), BR-153 (GO/MG) and BR-262 (MG)
Object Demand Criteria
• ...
62
Ministry
of Finance
Highways
Road Concession – BR-163: from MT/MS border to MS/PR border
Object Demand Criteria
• Secti...
63
Ministry
of Finance
Highways
Road Concession – BR-163: from Sinop (MT) to MT/MS border
Object Demand Criteria
• Section...
Railways
66
Ministry
of Finance
Railways
Railway Network
Exploited rail network
PIL - Rail Network
(11,000 km) – to be awarded
Stru...
67
Ministry
of Finance
Railways
Railway Concession: São Paulo rail beltway (“Ferroanel”) and access to Santos seaport
Obje...
68
Ministry
of Finance
Railways
Object Demand Concession characteristics Financing Conditions
Section: Lucas do RioVerde
-...
69
Ministry
of Finance
Railways
Object Demand Concession characteristics Financing Conditions
Section: Açailândia -
Vila d...
70
Ministry
of Finance
Railways
Object Demand Concession characteristics Financing Conditions
Section: 	 OuroVerde de
Goiá...
71
Ministry
of Finance
Railways
Object Demand Concession characteristics Financing Conditions
Section: 	 Belo Horizonte -
...
72
Ministry
of Finance
Railways
Object Demand Concession characteristics Financing Conditions
Section: Rio de Janeiro -Vil...
73
Ministry
of Finance
Railways
Object Demand Concession characteristics Financing Conditions
Section: Anápolis – Corinto
...
74
Ministry
of Finance
Railways
Object Demand Concession characteristics Financing Conditions
Section: Feira de Santana –
...
75
Ministry
of Finance
Railways
Object Demand Concession characteristics Financing Conditions
Section: Lapa – Paranaguá
Ex...
76
Ministry
of Finance
Railways
Object Demand Concession characteristics Financing Conditions
Section: Maracaju – Lapa
Ext...
77
Ministry
of Finance
Railways
Object Demand Concession characteristics Financing Conditions
Section: Mairinque – Rio
Gra...
78
Ministry
of Finance
Railways
Study in Progress
Railway Concession – High-SpeedTrain (TAV)
Rio de Janeiro - São Paulo - ...
Ports
80
Ministry
of Finance
Seaports
Source:NationalLogistics&Planning
Company(EPL)
Producedby:MinistryofFinance
Major Brazilia...
81
Ministry
of Finance
Seaports
Port Investment Program - Bidding Blocks
Block Ports Estimated
Investment
Increase
Capacit...
82
Ministry
of Finance
Seaports
Port Investment Program
InthefirsthalfofSeptember2013,
theaverageexchangeratewas
approxima...
Airports
84
Ministry
of Finance
Airports
Source:CivilAviationSecretariat(SAC)
Producedby:MinistryofFinance
Major Brazilian Airports...
85
Ministry
of Finance
Airports
Airport Investment Program
InthefirsthalfofSeptember2013,
theaverageexchangeratewas
approx...
86
Ministry
of Finance
Airports
Schedule for the concessions of Galeão and Confins airports
2013
Release of
Auction
Notice...
87
Ministry
of Finance
Airports
Galeão - Summary Chart
Galeão - Summary Chart
Airport Area: 17,881,697m²
Area for Apron: 7...
88
Ministry
of Finance
Airports
Galeão – Financial Conditions
Object:
•	 Expansion, maintenance and operation of the Antôn...
89
Ministry
of Finance
Airports
Galeão- Estimated Demand
10
30
50
70
2038203320232013
60.3
50.1
34.5
19.2
MillionPassenger...
90
Ministry
of Finance
Airports
Confins - Summary Chart
Confins - Summary Chart
Airport Area: 15,010,000 m²
Area for Apron...
91
Ministry
of Finance
Airports
Cofins - Financial Conditions
Object:
•	 Expansion, maintenance and operation of theTancre...
92
Ministry
of Finance
Airports
Confins – Estimated Demand
5
14
23
32
41
50
2043203320232013
28.1
18.1
10.9
43.3
MillionPa...
Oil and Gas
94
Ministry
of Finance
OilandGas
InthefirsthalfofSeptember2013,
theaverageexchangeratewas
approximatelyUS$1= R$2.30
Source...
95
Ministry
of Finance
OilandGas
Source:NationalAgencyofPetroleum,
NaturalGasandBiofuels(ANP)and
MinistryofMinesandEnergy(...
96
Ministry
of Finance
OilandGas
Source:NationalAgencyofPetroleum,
NaturalGasandBiofuels(ANP)and
MinistryofMinesandEnergy(...
97
Ministry
of Finance
OilandGas
InthefirsthalfofSeptember2013,
theaverageexchangeratewas
approximatelyUS$1= R$2.30
Source...
98
Ministry
of Finance
OilandGas
Source:NationalAgencyofPetroleum,
NaturalGasandBiofuels(ANP)and
MinistryofMinesandEnergy(...
99
Ministry
of Finance
OilandGas
Source:NationalAgencyofPetroleum,
NaturalGasandBiofuels(ANP)and
MinistryofMinesandEnergy(...
100
Ministry
of Finance
OilandGas
Source:NationalAgencyofPetroleum,
NaturalGasandBiofuels(ANP)and
MinistryofMinesandEnergy...
Electricity
102
Ministry
of Finance
Electricity
Brazilian investments in the electricity sector auctions – 2013 to 2017
Estimated Expa...
103
Ministry
of Finance
Electricity
Source:EnergyResearchOffice(EPE)
Producedby:MinistryofFinance
Electricity Auctions
• M...
104
Ministry
of Finance
Electricity
HPP-HydroPowerPlant
ANEEL-NationalElectricityAgency
Source:EnergyResearchOffice(EPE)
P...
105
Ministry
of Finance
Electricity
Main financial requirements for
participating in electricity auctions and for signing ...
106
Ministry
of Finance
Electricity
BNDES FINEM (Financing to Enterprises) Financial Aspects
Hydro Power Plant
(HPP)
Therm...
107
Ministry
of Finance
Electricity
Source:EnergyResearchOffice(EPE)
Producedby:MinistryofFinance
Electricity Auctions: ma...
108
Ministry
of Finance
Electricity
Source:EnergyResearchOffice(EPE)
Producedby:MinistryofFinance
Hydropower Expansion: 20...
109
Ministry
of Finance
Electricity
Source:EnergyResearchOffice(EPE)
Producedby:MinistryofFinance
Hydropower Expansion: au...
110
Ministry
of Finance
Electricity
HPP São Manoel - Fact sheet
•Teles Pires River
• Capacity: 700 MW
• Firm Energy: 400 a...
111
Ministry
of Finance
Electricity
Source:EnergyResearchOffice(EPE)
Producedby:MinistryofFinance
The development of wind ...
112
Ministry
of Finance
Electricity
Source:EnergyResearchOffice(EPE)
Producedby:MinistryofFinance
The development of bioel...
113
Ministry
of Finance
Electricity
Source:EnergyResearchOffice(EPE)
Producedby:MinistryofFinance
Other energy sources to ...
114
Ministry
of Finance
Electricity
Source:EnergyResearchOffice(EPE)
Producedby:MinistryofFinance
Transmission Line Auctio...
115
Ministry
of Finance
Electricity
Source:EnergyResearchOffice(EPE)
Producedby:MinistryofFinance
Transmission Line Auctio...
116
Ministry
of Finance
Electricity
BNDES FINEM (Financing to Enterprises) Financial Aspects
• Access to financing availab...
117
Ministry
of Finance
Electricity
Source:EnergyResearchOffice(EPE)
and National Electricity Agency(ANEEL)
Producedby:Min...
118
Ministry
of Finance
Electricity
Source:EnergyResearchOffice(EPE)
Producedby:MinistryofFinance
Main Projects: north-sou...
119
Ministry
of Finance
Electricity
MainTL Projects to be Auctioned in 2013
2nd
semester 2013 - transmission lines (EPE pr...
Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades em Infraestrutura no Brasil
Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades em Infraestrutura no Brasil
Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades em Infraestrutura no Brasil
Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades em Infraestrutura no Brasil
Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades em Infraestrutura no Brasil
Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades em Infraestrutura no Brasil
Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades em Infraestrutura no Brasil
Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades em Infraestrutura no Brasil
Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades em Infraestrutura no Brasil
Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades em Infraestrutura no Brasil
Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades em Infraestrutura no Brasil
Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades em Infraestrutura no Brasil
Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades em Infraestrutura no Brasil
Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades em Infraestrutura no Brasil
Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades em Infraestrutura no Brasil
Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades em Infraestrutura no Brasil
Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades em Infraestrutura no Brasil
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Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades em Infraestrutura no Brasil

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A presidenta Dilma Rousseff participou, nesta quarta-feira (25), do Seminário Empresarial Oportunidades em Infraestrutura no Brasil, em Nova York.

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Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades em Infraestrutura no Brasil

  1. 1. September | 2013 Ministry of Finance B R A Z I L I A N G O V E R N M E N T Brazil’seconomic outlook and investment opportunities infrastructure
  2. 2. 3 Ministry of Finance Foreword Economic Outlook Economic Development and Demand for Infrastructure Capital Market Instruments Highways Railways Ports Airports Oil and Gas Electricity Appendix – Main types of business organizations in Brazil Useful Links Glossary Summary 5 7 33 45 53 65 79 83 93 101 121 126 128
  3. 3. 5 Ministry of Finance 5 Foreword Foreword Brazil currently presents an enormous opportunity for investment in infrastructure. The Brazilian economy has changed substantially over the last ten years. From 2003 to 2012, real GDP increased by 41 percent, real total wages by 65 percent and domestic retail sales by 119 percent. It was a period of consolidation for the domestic market, based on income growth and social inclusion. The country is currently among the biggest markets in the world. In the last decade, investments grew by 71 percent, above GDP growth rates, but they should increase even further in order to become the new engine of economic development. Eonomic growth has brought about challenges, particularly for the long term. Above all, Brazil needs to build up and modernize its infrastructure.That is the reason why President Dilma Rousseff launched the Energy and Logistics Investment Program in 2012, consisting of concessions for highways (7,500 km), railways (10,000 km), airports (Rio de Janeiro and Belo Horizonte) and ports.The implementation of the Program will not only reduce costs and improve competitiveness for all industries, but also keep Brazil on the sustainable growth path that has been a characteristic of the Brazilian economy over the last decade. In oil and gas, the 11th Bidding Round in May 2013 was very successful, and both the 12th Bidding Round and the 1st Round of the Pre-Salt Layer are scheduled for the end of 2013. In electricity, many auctions are being carried out until2017forthegenerationof33,000MW(fromhydropower,windpowerandothersources)andtheinstallationof 21,000 km of transmission lines. As far as short term perspectives are concerned, Brazil resumed economic growth in 2013, after a small period of deceleration due to the deepening of the international crisis. In the second quarter, GDP grew 6.0 percent (quarter- over-quarter, seasonally adjusted annual rate), one of the highest rates among G20 countries. The sustainability of the economic recovery is supported by high levels of investment, which increased 9.0 percent in the second quarter
  4. 4. 6 Ministry of Finance 6 Foreword of 2013 when compared to the second quarter of 2012. Furthermore, manufacturing shows signs of improvement, after two years of difficulties brought about by the international crisis. The outlook for the world economy, however, remains tenuous. Although there are signs of economic recovery in developed countries, with demand picking up in some advanced countries, the turmoil created by the expectation of tapering in U.S. monetary stimulus severely affected some emerging economies. World trade growth is still disappointing, posing challenges for economies heavily dependent on foreign markets. The Brazilian economy is prepared to face the challenges posed by the international economy. In addition to its considerable size – 200 million people, mostly belonging to the middle social classes –, the domestic market has beengrowing atanannualrateofover6percent inthelastfiveyears.Brazil’sbanksandfinancialmarketsareamong the soundest and most dynamic in the world. International reserves of around US$ 370 billion vis-à-vis short term foreigndebtofUS$40billiongivemonetaryauthoritiesthecapacitytointerveneifnecessary.In2012, foreigndirect investmentinflowstoBrazilwereUS$65.3billion,thefourthlargestintheworld.Inthefirsthalfof2013,FDIinflows amounted to US$ 30 billion. After a decade of consolidation of the domestic market, Brazil is ready for another decade of growth, now supported by investments, particularly in infrastructure. Private businesses and investors, both domestic and foreign, have the opportunity to take part in this process.
  5. 5. Economic Outlook
  6. 6. 8 Ministry of Finance 8 EconomicOutlook GDP, QoQ seasonally adjusted annual rate, in % change, second quarter 2013 The world economy in the second quarter of 2013 Source:InternationalMonetaryFund (IMF)andBloomberg Producedby:MinistryofFinance Above 3% Below or equal to 3% Brazil Chile Russia India China Indonesia 5.6 South Korea4.5 Mexico 3.8 Canadá Japan United kingdom Italy -1.2 -1.0 2.9 2.3 France -1.3 -2.9 1.9 Germany 2.9 South Africa Australia USA Canada 1.7 2.5 2.0 6.0 7.0 8.5 Turkey 2.4 Euro area 1.2 3.0
  7. 7. 9 Ministry of Finance 9 EconomicOutlook Purchasing Managers Index (PMI), manufacturing, in points Slow recovery of advanced economies and China Source:ISM(forUSA)andHSBC/Markit Producedby:MinistryofFinance 40 42 44 46 48 50 52 54 56 58 60 Sep 2013 Jan 2013 Jul2012 Jan 2012 Jul2011 Jan 2011 Jul2010 Jan 2010 Aug 2009 USA Euro Zone China 51.2 51.1 55.7
  8. 8. 10 Ministry of Finance 10 EconomicOutlook 10-Year U.S.Treasury yields, in % per annum Uncertainty about the tapering of the FED monetary stimulus may trigger exchange-rate and financial volatility in emerging countries. United States recovery: a double-edged sword Source:Bloomberg Producedby:MinistryofFinance 2.69 1.0 1.5 2.0 2.5 3.0 3.5 4.0 18 Sep 2013 Jan 2013 Jan 2012 Jan 2011
  9. 9. 11 Ministry of Finance 11 EconomicOutlook Nominal exchange rate, in U.S. dollar/national currency, index (January 2007 = 100) The long term appreciation of the Brazilian real has been partially reversed in 2013 Source:Bloomberg Producedby:MinistryofFinance 60 90 120 150 17 Sep 2013 Jan 2013 Jan 2012 Jan 2011 Jan 2010 Jan 2009 Jan 2008 Jan 2007 94.1 69.7 70.8 72.9 85.8 Brazil South Africa Mexico India Turkey
  10. 10. 12 Ministry of Finance 12 EconomicOutlook In US$ million Volatility did not affect the capital account of the balance of payments *CentralBankofBrazilestimate Source:CentralBankofBrazil Producedby:MinistryofFinance 2012 2013 2013 July Jan-July July Jan-July Estimate* Current Account -3,746 -28,990 -9,018 -52,472 -75,000 Financial Account 8,307 53,580 9,315 58,902 83,000 Direct Investment (net) 7,509 42,240 4,019 41,259 FDI 8,440 38,169 5,212 35,239 65,000 Portfolio Investment 1,343 3,707 3,898 17,981 Other Investments -588 7,537 1,418 -437
  11. 11. 13 Ministry of Finance 13 EconomicOutlook Foreign direct investment in G-20 countries, 2012, in US$ billion Confidence: high inflows of foreign direct investment Source:UNCTAD Producedby:MinistryofFinance 0 50 100 150 200 Japan South Africa Germ any Italy Korea Saudi Arabia Turkey M exico Indonesia France India Canada Russian Federation Australia United Kingdom Brazil China United States167.6 121.1 65.3 62.4 57.0 51.4 45.4 25.5 25.1 19.9 12.7 12.4 12.2 9.9 9.6 6.6 4.6 1.7
  12. 12. 14 Ministry of Finance 14 EconomicOutlook Public sector net debt and General government gross debt, in % of GDP Public sector net debt drops consistently and stable gross debt *July2013 Source:CentralBankofBrazil Producedby:MinistryofFinance 30 35 40 45 50 55 60 65 2013* 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 60.4 54.8 50.6 48.4 47.3 45.5 38.5 42.1 39.2 36.4 35.2 34.1 Public Sector Net Debt General Government Gross Debt 56.4 58.0 57.4 60.9 54.2 58.7 59.4 53.4
  13. 13. 15 Ministry of Finance 15 EconomicOutlook International reserves, in US$ billion (July 2013) Brazil’s international reserves in a comfortable situation *June2013 **May2013 ***January2013 Source:Bloomberg Producedby:MinistryofFinance 0 300 600 900 1,200 3,500 Italy ** South Africa Australia ** France ** United Kingdom * Germ any ** Indonesia Turkey Canada M exico India Korea Brazil Russia *** SaudiArabia ** Japan China * 252 168 106 104 93 72 62 56 46 39 36 480 3,497 1,188 685 374 330
  14. 14. 16 Ministry of Finance 16 EconomicOutlook Reserves-to-imports of goods ratio, in %, July 2013 Brazil’s international reserves 58% above annual imports *August2013 **June2013 Source:Bloomberg Producedby:MinistryofFinance 0 50 100 150 200 Turkey SouthAfrica M exico Indonesia India Russia ** Brazil* China **185% 158% 150% 56% 49% 44% 43% 42%
  15. 15. 17 Ministry of Finance 17 EconomicOutlook Reserves-to-short term external debt ratio, in %, March 2013 Brazil’s international reserves much above external debt levels Source:BloombergandInternational MonetaryFund(IMF) Producedby:MinistryofFinance 0 200 400 600 800 1,000 Turkey Argentina South Africa M exico Indonesia India China Russia Brazil 952% 572% 462% 303% 232% 229% 167% 108% 92%
  16. 16. 18 Ministry of Finance 18 EconomicOutlook International reserves, in US$ billion Brazil’s international reserves have not been changed even under international uncertainty Source:CentralBankofBrazil Producedby:MinistryofFinance 300 325 350 375 400 12 Sep 2013 Aug 2013 Jul2013 Jun 2013 M ay 2013 Apr2013 M ar2013 Feb 2013 Jan 2013 US$ 373.6 bn
  17. 17. 19 Ministry of Finance 19 EconomicOutlook In billions of U.S. dollars and millions of contracts The role of derivatives in Brazil: second largest market for interest-rate options and futures *ForBrazil,indicatorsonlyinclude futuresandoptionsoperations ** InChina,currencyderivativesarenot traded(FXrestriction) ***TurkdexAnnualMarket Statistics(AnnualFactBook2012) Source:WorldFederationofExchanges Producedby:MinistryofFinance 0 5,000 10,000 15,000 20,000 25,000 30,000 Turkey*** South Africa Russia M exico Brazil* 25,212 241 58 38 0 Financial volume traded in 2012 (US$ billion) Number of contracts traded in 2012 (millions) Brazil / BVMF* 25,212 501 Mexico /Mexder 241 31 Russia / Moscow Ex 58 21 South Africa / JSE 38 3 Singapore / SGX 0 1 India / NSE-BSE-MCX 0 0 Malaysia / Bursa Malaysia 0 0 China** 0 0 Turkey*** 0 0 US$ Billion
  18. 18. 20 Ministry of Finance 20 EconomicOutlook In billions of U.S. dollars and millions of contracts Sixth largest market for currency options and futures *ForBrazil,indicatorsonlyinclude futuresandoptionsoperations ** InChina,currencyderivatives arenottraded(FXrestriction) ***TurkdexAnnualMarket Statistics(AnnualFactBook2012) Source:WorldFederationofExchanges /FuturesIndustryAssociationMagazine March2013 Producedby:MinistryofFinance 0 1,000 2,000 3,000 4,000 5,000 Turkey *** South Africa M éxico Russia India Brazil*4,525 821 437 100 15 13 US$ BillionCurrency Options and Futures Country Financial volume traded in 2012 (US$ billion) Number of contracts (in millions) traded in the same basis (if contracts were all of USD 1,000) Brazil / BVMF* 4,525 4,727 India / NSE-BSE-MCX 821 868 Russia / Moscow Ex 437 413 South Africa / JSE 15 17 Mexico /Mexder 100 98 Turkey /Turkdex *** 13 1 Malaysia / Bursa Malaysia 0 - China ** 0 - Singapore / SGX 0 -
  19. 19. 21 Ministry of Finance 21 EconomicOutlook Foreign exchange derivative transactions over spot transactions, in % In Brazil, the large market for foreign exchange derivatives stimulates companies to use currency hedging Source:BankforInternational Settlements(BIS) Producedby:MinistryofFinance 0 50 100 150 200 250 300 350 400 450 Japan Russia Australia Euro M exico Canada Global United States United Kingdom South Africa Korea India China Turkey Brazil419% 347% 252% 247% 231% 207% 178% 175% 161% 161% 138% 137% 136% 134% 101%
  20. 20. 22 Ministry of Finance 22 EconomicOutlook Current account, in % of GDP, second quarter of 2013 G20 emerging markets external sector *Firstquarter2013 **Excludingtheoilaccount,the Braziliancurrentaccountdeficitwould be1.9%ofGDP.Therewasatemporary delayintheregisterofthe2012 importsandtherewereseveralstops formaintenanceinPetrobrasplatforms. Additionally,delaysinthestartofnew producingsystemsinthelastfewyears andexistingproblemsinthepost-salt systemsresultedinaslowdowninthe domesticextractionofoilandgassince 2010.Allthesefactorsthatinterfered intheBraziliantradebalancewillstart toimprovesignificantlyinthesecond halfof2013.Tennewplatformswillbe startingoperationsin2013/2014,and severalotherswillstartoperationsin thefollowingyears,doublingproduction until2020,accordingtoEIAestimate Source:Bloomberg Producedby:MinistryofFinance -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 -5.9 Turkey* South Africa* India* Indonesia Brazil M exico China Russia* 3.0 2.4 -1.3 -3.2 -3.3 -5.1 -5.8 -5.9 -1.9**
  21. 21. 23 Ministry of Finance 23 EconomicOutlook Trade balance, total and ex-oil, in US$ billion Oil and gasoline accounted for a large part of the decrease in trade surplus *Ona12-monthbasisuptoJuly2013 Source:MinistryofDevelopment, IndustryandTrade(MDIC) Producedby:MinistryofFinance 0 10 20 30 40 2013* 2012 2011 2010 2009 12.5 19.5 26.2 26.0 19.325.3 20.2 29.8 19.4 4.5 Total balance ex-oil and other oil products Total balance
  22. 22. 24 Ministry of Finance 24 EconomicOutlook Gross fixed capital formation, seasonally adjusted, in % QoQ Despite difficulties, investments are recovering in Brazil Source:BrazilianInstituteofGeography andStatistics(IBGE) Producedby:MinistryofFinance -2 -1 0 1 2 3 4 5 2Q 20131Q 20134Q 20123Q 2012 1.5 4.7 3.6 -1.4
  23. 23. 25 Ministry of Finance 25 EconomicOutlook Broad Consumer Price Index (IPCA), in %YoY Inflation within the target range since 2004 *Averageforecastfor2013,according totheCentralBankofBrazilmarket researchonSeptember6,2013 Source:BrazilianInstituteofGeography andStatistics(IBGE)andCentralBank ofBrazil Producedby:MinistryofFinance 2013* 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 Upper Bound Lower Bound Target core IPCA 5.85.86.55.94.35.94.55.77.69.312.57.76.08.9 3.1
  24. 24. 26 Ministry of Finance 26 EconomicOutlook Consumer price index, in %YoY, August 2013 G20 emerging markets inflation *July2013 **June2013 Source:Bloomberg Producedby:MinistryofFinance 0 2 4 6 8 10 12 India ** Indonesia Turkey Russia South Africa * Brazil M exico China2.5 3.5 6.1 6.4 6.5 8.2 8.8 10.7
  25. 25. 27 Ministry of Finance 27 EconomicOutlook In %, latest available data Sound financial system Source:InternationalMonetaryFund (IMF)-FiscalSoundnessIndicators Producedby:MinistryofFinanceSpain Australia India Italy Russia Japan South Korea France USA United Kingdom South Africa Canada Mexico Brazil Turkey Germany Italy Spain South Africa Japan France United Kingdom Australia USA India Russia Canada Turkey South Korea Chile Argentina Mexico Brazil India South Africa United Kingdom Australia Mexico Japan Canada Turkey USA Italy Russia South Korea Germany Brazil Basel Index (Capital Adequacy) (Provisions minus Delinquencies)/Capital Net Assets/ Short-term Liabilities 17.9 17.4 17.0 16.3 16.1 15.7 15.7 14.4 14.3 14.3 14.2 13.4 13.3 13.1 11.8 11.4 -3.1 -3.1 -5.9 -9.9 -12.1 -14.7 -15.5 -16.1 -19.4 -21.4 -23.6 -27.6 -73.7 10.0 9.0 2.8 0.6 183.1 140.8 111.3 87.6 80.1 77.4 76.4 56.3 51.3 47.3 43.5 38.0 33.0 27.0
  26. 26. 28 Ministry of Finance 28 EconomicOutlook Real estate loans, annual growth rate, in % Real estate loans have still huge opportunities of expansion in Brazil Source:CentralBankofBrazil Producedby:MinistryofFinance 0 10 20 30 40 50 60 70 Jul2013 Jan 2013 Jul2012 Jan 2012 Jul2011 Jan 2011 Jul2010 Jan 2010 Jul2009 Jan 2009 Jul2008 M ar2008 34.0 Despite their growth, in July 2013 real estate loans represented only 7.7% of Brazil’s GDP, a much lower rate than in developed countries and most emerging economies
  27. 27. 29 Ministry of Finance 29 EconomicOutlook Budget balance, in % of GDP Brazil presents sound fiscal accounts *IMFestimates Source:InternationalMonetaryFund (IMF)-FiscalMonitorand CentralBankofBrazil Producedby:MinistryofFinance Primary Results Nominal Result United States Asia Euro Zone Latin America Brazil 2006-2008 2010-2013* United States Asia Euro Zone Latin America Brazil 2.6 1.3 -1.5 -1.5 -7.1 3.3 3.0 1.2 0.0 -1.9 -2.5 -2.3 -4.2 -3.0 -9.0 -2.8 -1.1 -1.4 -1.6 -3.8 2006-2008 2010-2013*
  28. 28. 30 Ministry of Finance 30 EconomicOutlook 10-year Brazilian Global bonds* and U.S.Treasury yields, in % per annum Confidence: low spreads for sovereign bonds *Yieldsatissuedate Source:NationalTreasurySecretariat (STN) Producedby:MinistryofFinance 0.0 1.4 2.8 4.2 5.6 7.0 9 M ay 2013 5 Sep 2012 3 Jan 2012 7 Jul2011 27 Jul2010 15 Apr2010 15 Dez2009 7 M ay 2009 6 Jan 2009 U.S. Treasuries Brazilian sovereign bonds 6.1 5.8 4.8 5.0 4.5 4.2 3.4 2.7 2.82.4 3.3 3.6 3.9 3.0 3.1 1.9 1.6 1.8
  29. 29. 31 Ministry of Finance 31 EconomicOutlook Non-resident share in federal public debt, in % of total DFPD* Increasing number of non-resident investors in Brazilian public debt *DomesticFederalPublicDebt Source:NationalTreasurySecretariat (STN) Producedby:MinistryofFinance 0 2 4 6 8 10 12 14 16 18 1.8 2.0 2.1 2.7 4.5 4.7 4.9 5.2 5.0 5.1 5.3 5.5 5.9 6.2 6.3 6.4 7.6 7.7 7.5 6.7 6.8 7.2 7.1 6.9 6.6 6.4 6.5 6.7 6.6 6.9 7.8 8.4 8.4 8.8 9.7 9.8 10.2 9.9 10.0 10.6 10.6 11.2 11.5 11.5 11.3 11.4 11.8 11.4 11.4 11.3 11.5 11.1 11.6 11.8 11.3 11.4 11.4 11.3 11.9 11.9 12.1 12.3 12.3 12.2 13.2 13.3 13.4 13.8 13.9 13.7 14.4 14.3 14.8 14.6 14.4 14.5 15.5 Jul2013 M ar2013 Nov 2012 Jul2012 M ar2012 Nov 2011 Jul2011 M ar2011 Nov 2010 Jul2010 M ar2010 Nov 2009 Jul2009 M ar2009 Nov 2008 Jul2008 M ar2008 Nov 2007 Jul2007 M ar2007 15.5
  30. 30. Economic Development and Demand for Infrastructure
  31. 31. 34 Ministry of Finance EconomicDevelopmentand DemandforInfrastructure Broad retail sales, seasonally adjusted, in %YoY Domestic market: dynamism of retail sales *Ona12-monthbasisuptoJuly2013 Source:BrazilianInstituteofGeography andStatistics(IBGE) Producedby:MinistryofFinance 0 3 6 9 12 15 2013* 2012 2011 2010 2009 2008 2007 2006 2005 200411.1 3.1 6.4 13.6 9.9 6.8 12.2 6.6 8.0 5.8
  32. 32. 35 Ministry of Finance EconomicDevelopmentand DemandforInfrastructure New formal jobs, in millions Sustainable labor market ensures dynamic domestic demand For2012and2013,updatesafterthe officialreleasedateweretakeninto consideration *JanuarytoJuly2013 Source:MinistryofLaborand Employment Producedby:MinistryofFinance 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2013* 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 0.1 0.1 0.3 0.4 0.5 1.2 1.0 1.5 0.9 1.9 1.8 1.9 2.5 1.8 1.8 2.9 2.2 1.3 0.9 19.90 million jobs
  33. 33. 36 Ministry of Finance EconomicDevelopmentand DemandforInfrastructure Airline traffic, in millions of passengers Increasing demand for infrastructure services: airline passengers Source:NationalAgencyforCivil Aviation(ANAC) Producedby:MinistryofFinance 0 20 40 60 80 100 120 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 101.4 92.6 77.2 62.8 56.0 52.1 47.7 44.1 35.7 33.4 35.9 36.0 34.0 2002-2012: 182.3% growth
  34. 34. 37 Ministry of Finance EconomicDevelopmentand DemandforInfrastructure Brazilian trade flow (exports plus imports), in US$ billion Growing external trade *Ona12-monthbasis uptoAugust2013 Source:MinistryofDevelopment, IndustryandForeignTrade(MDIC) Producedby:MinistryofFinance 0 100 200 300 400 500 2013* 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 199596.4 101.0 112.7 108.8 97.2 111.0 113.9 107.7 121.5 159.5 192.1 229.2 281.3 370.9 280.7 383.7 482.3 465.7 474.7 2002-2012: 332.4% growth
  35. 35. 38 Ministry of Finance EconomicDevelopmentand DemandforInfrastructure Total cargo handling in ports, in millions of tons Significant growth in port trade volume *Ona12-monthbasisuptoMarch2013 Source:NationalAgencyforWater Transportation(ANTAQ) Producedby:MinistryofFinance 500 550 600 650 700 750 800 850 900 950 2013* 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 570.8 620.7 649.4 692.8 754.7 768.3 732.9 833.9 885.6 904.0 902.9 2003-2012: 58.4% growth
  36. 36. 39 Ministry of Finance EconomicDevelopmentand DemandforInfrastructure In thousand vehicles per km per year, on highways under concession Vehicular traffic *Estimatebasedonmonthly averageuptoAugust2013 Source:BrazilianAssociationof HighwayConcessionaires(ABCR) Producedby:MinistryofFinance 0 20 40 60 80 100 120 2013* 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 111 105 99 89 69 60 69 67 65 61 56 57 51 43 2002-2012: 86.6% growth
  37. 37. 40 Ministry of Finance EconomicDevelopmentand DemandforInfrastructure New vehicles (buses, trucks, light commercial vehicles and cars), in million of vehicles Vehicle sales more than doubled in ten years *Ona12-monthbasis uptoAugust2013 Source:BrazilianAssociationof AutomotiveVehicleManufacturers (ANFAVEA) Producedby:MinistryofFinance 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2013* 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 4th largest vehicle market in the world 1.5 1.4 1.5 1.7 1.9 2.5 2.8 3.1 3.5 3.6 3.8 3.8 2002-2012: 153.5% growth
  38. 38. 41 Ministry of Finance EconomicDevelopmentand DemandforInfrastructure Revenue tonne kilometers (RTKs), in billions Railroad volumes Source:NationalTransportation Agency (ANTT) Producedby:MinistryofFinance 130 164 198 232 266 300 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002168 182 203 221 232 258 271 244 278 291 298 2002-2012: 77.4% growth
  39. 39. 42 Ministry of Finance EconomicDevelopmentand DemandforInfrastructure Brazilian grain harvest*, in millions of tons Brazilian harvest in record figures *Preliminarydata:subjecttochangeby Conab/MAPA **ConabestimatesinSeptember2013 Source:MinistryofAgriculture, LivestockandFoodSupply(MAPA) Producedby:MinistryofFinance 70 90 110 130 150 170 190 210 2012/2013** 2011/2012 2010/2011 2009/2010 2008/2009 2007/2008 2006/2007 2005/2006 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001 100.3 96.8 123.2 119.1 114.7 122.5 131.8 144.1 135.1 149.3 162.8 166.2 187.1
  40. 40. 43 Ministry of Finance EconomicDevelopmentand DemandforInfrastructure Brazil in the global ranking, by production and exports quantities, 2011 Agricultural leadership Source:FoodandAgriculture Organisation(FAO) Producedby:MinistryofFinance Orange Juice Tobacco Chicken Whitesugar Corn Beans Soybean Processed beef Coffee 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 3 3 16 Producer Exporter
  41. 41. Capital Market Instruments
  42. 42. 46 Ministry of Finance CapitalMarketInstruments Howcannon-residentinvestorsnegotiatedebt securitiesandfundsinBrazil? CMNResolution2,689ofyear2000,whichrulesoninvestmentsbynon-residentinvestorsin thefinancialandcapitalmarketsofinvestment,providesallnecessaryinformation Brazildoesnotimposetaxes ontheinternationalremittanceofprofitsanddividends Producedby:MinistryofFinanceand BrazilianDevelopmentBank(BNDES) FinancialInstrumentsforInfrastructureInvestments https://www3.bcb.gov.br/normativo/ detalharNormativo.do?method=deta lharNormativo&N=100014927 • More Info: CMNResolution2,689
  43. 43. 47 Ministry of Finance CapitalMarketInstruments FinancialInstrumentsforInfrastructureInvestments Definition Benefitsfor non-residentinvestors* Minimum Requirements Investment Debentures and Real Estate Receivables Certificates • ZeroIncomeTaxRate(IR) • ZeroTaxonFinancialOperations(IOF) • Weightedaveragematurity:overfouryears. • Return:CRIpaysinterestatafixedrateoratafloatingrate peggedtoaninflationindexortheReferenceRate(TR).Totalor partialuseofpost-fixedrateofinterestareforbidden. • Norepurchase:bytheissuerorrelatedpartyinthefirsttwo yearsafterissuanceandearlyliquidation,exceptincasestobe regulatedbyBrazil’sNationalMonetaryCouncil(CMN). • Requiredevidencedocuments: securityshouldbe registeredwithclearinghousesdulyauthorizedbythe CentralBankofBrazilortheBrazilianSecuritiesandExchange Commission(CVM). • Simplifiedprocedure:todemonstratethepurposeof allocatingresourcesintothefuturepaymentorreimbursement ofexpenses,costsorliabilitiesrelatedtoinvestmentprojects, includingthoseaimedatR&D&I(research,developmentand innovation). • Noresalecommitment:undertakenbythebuyer. • Yieldpaymentfrequency:ifany,itmustbeatleast180 daysapart. • Debêntures de Investimento e Certificados de Recebíveis Imobiliários (CRI) *Incaseofinvestmentsfromcountries whicharenotsubjecttoa20%(orhigher) incometaxrate(“taxhavens”),theabove mentionedtaxbenefitsdonotapply, unlessitisrelatedtoawealthfund Producedby:MinistryofFinanceand BrazilianDevelopmentBank(BNDES)
  44. 44. 48 Ministry of Finance CapitalMarketInstruments Definition Benefitsfornon- -residentinvestors* Minimum Requirements InvestmentFundin CreditRights • ZeroIncomeTaxRate(IR) • ZeroTaxonFinancial Operations(IOF) • Termofduration:minimumofsixyears. • Nopayment,fullyorpartially:ofprincipaloftheFund’squotasinthefirsttwoyearsfromthe closingdateofthepublicofferingofthequotadistributionthatconstitutetheinitialassetsofthe Fund,exceptincasesoftheFund’searlyliquidationmentionedintheFund’sregulation. • Noacquisitionofquotas:bythesellerorbytheissuerorbyanypartiesrelatedtothem,except incaseofsubordinatedquotasforpurposesofamortizationandwithdrawal. • Amortizationplanofquotas:includingthosefromincorporatedyields,ifany,mustbeatleast 180(onehundredandeighty)daysapart. • Requiredevidencedocuments:quotasmustbeadmittedtotradingonanorganizedsecurities marketorregisteredwitharegistrysystemdulyauthorizedbytheCentralBankofBrazilorthe BrazilianSecuritiesandExchangeCommission(CVM)undertheirrespectivejurisdiction. • Simplifiedprocedure:todemonstratethepurposeofallocatingresourcesintoatransactionof investmentprojects,includingthoseaimedatR&D&I. • Mandatorypresenceofthefollowing:intheassignmentagreement,regulationandprospec- tus,ifany,inamannertobedeterminedbyCVM: •Goaloftheprojectorthebeneficiaryprojects; •Estimatedbeginningandendperiodsor,forongoingprojects,descriptionofthecurrentstage andestimatedendperiod; •Estimatedvolumeoffinancialresourcesrequiredtocarryouttheprojectornotinitialized projectsorforthecompletionofongoingprojects; •Estimatedpercentageoffundstoberaisedwiththesellingofthecreditrightscomparedto thefinancialresourcerequirementsofthebeneficiaryprojects. • Fund’sequity:consistsofatleast85%(eighty-five)percentofcreditrightsand,fortheremaining portion,offederalgovernmentsecurities,repurchaseagreementsbackedbygovernmentbondsor mutualfundquotasthatinvestinfederalgovernmentbonds. FinancialInstrumentsforInfrastructureInvestments • Fundos de Investimento em Direitos Creditórios (FIDC) *Incaseofinvestmentsfromcountries whicharenotsubjecttoa20%(or higher)incometaxrate(“taxhavens”), theabovementionedtaxbenefitsdonot apply,unlessitisrelatedtoawealthfund Producedby:MinistryofFinanceand BrazilianDevelopmentBank(BNDES)
  45. 45. 49 Ministry of Finance CapitalMarketInstruments Definition Benefitsfornon- -residentinvestors* Minimum Requirements Infrastructure Debentures • ZeroIncomeTaxRate(IR) • ZeroTaxonFinancial Operations(IOF) • Issuance: must be between January 2011 and December 2015. • Weighted average maturity: over four years. • Return: Debentures pay interest at a fixed rate or at a floating rate pegged to an inflation index or the Reference Rate (TR).Total or partial use of post-fixed rate of interest are forbidden. • No repurchase: by the issuer or related party in the first two years after issuance and early liquidation, except in cases to be regulated by Brazil’s National Monetary Council (CMN). • Required evidence documents: security should be registered with clearing houses duly authorized by the Central Bank of Brazil or the Brazilian Securities and Exchange Commission (CVM). • Simplifiedprocedure:todemonstratethepurposeofallocatingresourcesintothefuturepaymentorreimburse- mentofexpenses,costsorliabilitiesrelatedtoinvestmentprojects,includingthoseaimedatR&D&I. • No resale commitment: undertaken by the buyer. • Yield payment frequency: if any, it must be at least 180 days apart. Projects Approval: • Priority investment projects: to be implemented in the infrastructure area, or intensive economic production in research, development, and innovation. Also, according to the Decree n. 7,603 of year 2011, projects should have: • Approval Ordinance: issued and approved by the Ministry responsible for that sector • Focus on deployment, expansion, maintenance, recovery, adaptation or modernization processes in the following sectors: • Specific Purpose Companies (SPE): for management and implementation. • Issuer: dealer or grantee or authorized contractors or lessee. •Logisticsandtransportation •Broadcasting •Urbanmobility •Basicsanitationand •Energy •Irrigation •Telecommunications FinancialInstrumentsforInfrastructureInvestments • Debêntures de Infraestrutura *Incaseofinvestmentsfrom countrieswhicharenotsubject toa20%(orhigher)incometax rate(“taxhavens”),theabove mentionedtaxbenefitsdonotapply, unlessitisrelatedtoawealthfund Producedby:MinistryofFinanceand BrazilianDevelopmentBank(BNDES)
  46. 46. 50 Ministry of Finance CapitalMarketInstruments Definition Benefitsfor non-residentinvestors* Minimum Requirements Brazilian Infrastructure Bonds Investment Funds • ZeroIncomeTaxRate(IR) • ZeroTaxonFinancialOperations(IOF) • Concentrationininvestments:mustholdatleast67%(sixty- -seven)percentoftheFund’snetworthwithinthefirsttwoyears and85%(eighty-five)percentintheremainingyears. • FundofFunds(FIC)investments:mustholdatleast95% (ninety-five)percentofFICnetworthintheInfrastructureBonds InvestmentFund’squota. FinancialInstrumentsforInfrastructureInvestments • Fundos de Debêntures Incentivados Producedby:MinistryofFinanceand BrazilianDevelopmentBank(BNDES)
  47. 47. 51 Ministry of Finance CapitalMarketInstruments Producedby:MinistryofFinanceand BrazilianDevelopmentBank(BNDES) FinancialInstrumentsforInfrastructureInvestments http://www.bcb.gov.br/pre/normati- vos/res/2011/pdf/res_3947_v1_O. pdf Decree 7,632/11 http://www.planalto.gov.br/ ccivil_03/_Ato2011-2014/2011/ Decreto/D7632.htm http://www.planalto.gov.br/ ccivil_03/_Ato2011-2014/2011/Lei/ L12431.htm http://www.planalto.gov.br/ ccivil_03/_Ato2011-2014/2012/Lei/ L12715.htm#art71 http://portal.anbima.com.br/Pages/ home.aspx • More Info (useful links): Law12,431ofyear2011 Law12,715ofyear2012 BrazilianFinancialand CapitalMarketsAssociation CMNResolution3,974of year2011 Decree7,632ofyear2011
  48. 48. Highways
  49. 49. 54 Ministry of Finance Highways Highway Concessions Highways Updatedinformationavailableat www.logisticsbrazil.gov.br Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance 7 2 6 9 5 4 1 3 PA MA PE BA TO MT ES MG GO MS SP PR SC RS Açailãndia Sinop Palmas Parnamirim Lucas do Rio Verde Cuiabá Recife Maceió Aracaju Salvador Porto Seguro Mucurí Vitória Campos Além Paraíba Divisa Alegre Mafra Maracaju Estrela D’Oeste Rio de Janeiro Belo Horizonte São Paulo Santos Campo Grande Uruaçu Brasília Rio Grande Juíz de Fora Anápolis Goiânia Feira de Santana BR-116 BR-050 BR-262 BR-040 BR-153 BR-163 BR-262 BR-060 BR-101 BR-153 BR-163 Belém 2 1 3 5 4 6 8 7 9 BR-116/MG BR-040/MG-GO-DF BR-101/BA BR-262/MG-ES BR-050/GO-MG BR-153/GO-TO BR-163/MT BR-163/MS BR-060/153/262/DF-GO-MG 8
  50. 50. 55 Ministry of Finance Highways Auction Concluded on September 18th Road Concession – BR-050: from Cristalina (GO) (BR-040 entry point) to MG/SP border Object Demand Criteria • Section: BR-050, Entry Point of BR- 040/GO (Cristalina) – Border w/ MG/SP • Total Length: 426 km • Length to be widened: 219 km The project includes widening, maintenance and operation of the highway. Other widening projects are also planned to happen, including the construction of 9 km of side roads. Demand Projection (AADT): 2014 (54,232), 2019 (62,790), 2024 (76,046). Connects Brasilia, the state of São Paulo and the South Region of the country, crossing an important agricultural and wholesale retail center - the Minas Gerais triangle. Term: 30 years Criteria: lowest tariff Economic and Financial Modeling CAPEX*: US$ 1.3 billion OPEX: US$ 869 million Financing conditions: Term: 25 years (Grace period: 5 years) Rate: TJLP** + 2%a.a. Real leveraged IRR: up to 16% per year, in real terms. Debt to equity ratio: 70% / 30% Equity support: up to 49% of SPE*** or holding’s share capital (Institutions: public banks and pension funds) Environmental licensing: State- owned EPL is in charge of obtaining Previous License (LP) and Installation License (LI) of duplication works MT TO GO MS PR SP MG RJ ES BA BR-153 BR-060 BR-050 São Paulo Palmas Curitiba Goiânia Uberaba Uberlândia Catalão Cristalina Brasília Highway BR-050 GO/MG To be awarded BR-040 Rio de Janeiro Vitória *Withoutbenefitsandindirect expenses **TJLP-LongTermInterestRate, currently5%p.a. ***SpecialPurposeEntity InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30 Updatedinformationavailableat www.logisticsbrazil.gov.br Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance
  51. 51. 56 Ministry of Finance Highways Road Concession – BR-040: Brasília (DF) – Juiz de Fora (MG) Object Demand Criteria • Section: BR-040, Juiz de Fora (MG) – Entry point of BR-251 (Brasília - DF) • Total Length: 937 km • Length to be widened: 715 km The project includes widening, maintenance and operation of the highway. Other widening projects are also planned to happen, including the construction of side roads between Luziania and Brasilia. Demand Projection: under study Connects two important economic centers in Brazil - Rio de Janeiro and Belo Horizonte - to the fourth most populous city and the highest GDP per capita in the country - Brasilia. It is the main route for supply of coal to steel parks. ConcessionTerm: 30 years Number ofToll Plazas: 11 Criteria: lowest tariff Economic and Financial Modeling Financing conditions: Term: 25 years (Grace period: 5 years) Rate:TJLP* + 2%a.a. Real leveraged IRR: up to 16% per year, in real terms. Debttoequityratio:upto70%/30% Equity support: up to 49% of SPE** or holding’s share capital (Institutions: public banks and pension funds) Environmental licensing: State- owned EPL is in charge of obtaining Previous License (LP) and Installation License (LI) of duplication works GO PR SP MG RJ ES Brasília Luziânia Sete Lagoas Belo Horizonte Juiz de Fora BR-381 BR-040 Highway BR-040 MG/GO/DF To be awardedGranted Section 180 Km São Paulo Curitiba Rio de Janeiro *TJLP-LongTermInterestRate, currently5%p.a. **SpecialPurposeEntity Updatedinformationavailableat www.logisticsbrazil.gov.br Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance
  52. 52. 57 Ministry of Finance Highways RoadConcession–BR-116:fromBA/MGborder(DivisaAlegre)toMG/RJborder(AlémParaíba) Object Demand Criteria • Section: BR-116, RJ/MG Border (Além Paraíba) - MG/BA Border (Divisa Alegre) • Total Length: 817 km • Length to be widened: 817 km The project includes widening, maintenance and operation of the highway. Other widening projects are also planned, including the construction of 27 km of side roads. Demand Projection: under study Connects two important economic centers in Brazil - Rio de Janeiro and Salvador – across eastern Minas Gerais. ConcessionTerm: 30 years Number ofToll Plazas: 8 Criteria: lowest tariff Economic and Financial Modeling Financing conditions: Term: 25 years (Grace period: 5 years) Rate:TJLP* + 2%a.a. Real leveraged IRR: up to 16% per year, in real terms. Debttoequityratio:upto70%/30% Equity support: up to 49% of SPE** or holding’s share capital (Institutions: public banks and pension funds) Environmental licensing: State- owned EPL is in charge of obtaining Previous License (LP) and Installation License (LI) of duplication works GO SP MG RJ ES BA BR-116 São Paulo Rio de Janeiro Divisa Alegre Teófilo Otoni Gov. Valadares Muriaé Além Paraíba Salvador Highway BR-116 MG To be awarded *TJLP-LongTermInterestRate, currently5%p.a. **SpecialPurposeEntity Updatedinformationavailableat www.logisticsbrazil.gov.br Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance
  53. 53. 58 Ministry of Finance Highways Road Concession – BR-101: from the entry point of BR-324 (BA) to the entry point of the BA-698 (Mucuri) Object Demand Criteria • Section: BR-101, Entry Point of BA-698 (Mucuri) – Entry Point of. BR-324/BA • Total Length: 772 km • Length to be widened: 551.3 km The project includes widening, maintenance and operation of the highway. Other widening projects are also planned to happen, including the construction of 67 km of side roads. Demand Projection (AADT): 2014 (57,392), 2019 (71,312), 2024 (87,140). ConnectsthesoutherncoastofBahia tothestatesofEspíritoSantoandRio deJaneiro.BR-101isaveryimportant roadconnectingthenortheastwiththe southeastandsouthernregionsalong thecoastalline,wherelivesagreat shareofBrazilianpopulation.Important portsarealsoconnectedbythisroad. ConcessionTerm: 30 years Number ofToll Plazas: 9 Criteria: lowest tariff Economic and Financial Modeling CAPEX*: US$ 2.2 billion OPEX: US$ 1.3 billion Financing conditions: Term: 25 years (Grace period: 5 years) Rate:TJLP** + 2%a.a. Real leveraged IRR: up to 16% per year, in real terms. Debttoequityratio:upto70%/30% Equity support: up to 49% of SPE*** or holding’s share capital (Institutions: public banks and pension funds) Environmental licensing: State- owned EPL is in charge of obtaining Previous License (LP) and Installation License (LI) of duplication works TO GO SP MG RJ ES BA Salvador Rio de Janeiro BR-101 BR-116 BR-381 BR-262 Belo Horizonte Vitória MucuríJoão Monlevade São Paulo Highway BR-101 BA To be awarded *Withoutbenefitsandindirect expenses **TJLP-LongTermInterestRate, currently5%p.a. ***SpecialPurposeEntity InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30 Updatedinformationavailableat www.logisticsbrazil.gov.br Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance
  54. 54. 59 Ministry of Finance Highways Road Concession – BR-262: from the entry point of BR-381 (J. Monlevade) to the entry point of BR-101/ES Object Demand Criteria • Section: BR-262, Entry Point of BR-381 (J. Monlevade) – Entry Point of BR-101/ES • Total Length: 377 km • Length to be widened: 196.4 km The project includes widening, maintenance and operation of the highway. Other widening projects are also plannedw, including the construction of a ringroad and 13 km of side roads. Demand Projection (AADT): 2014 (7,549), 2019 (9,297), 2024 (11,388) The state of Minas Gerais (MG) has the third largest population in Brazil.This road gives access to the ports of the state of Espirito Santo, the main gateway to MG exports and imports, constituting an alternative route for the flow of MG production. ConcessionTerm: 30 years Number ofToll Plazas: 5 Criteria: lowest tariff Economic and Financial Modeling CAPEX*: US$ 916 million OPEX: US$ 739 million Financing conditions: Term: 25 years (Grace period: 5 years) Rate:TJLP** + 2%a.a. Real leveraged IRR: up to 16% per year, in real terms. Debttoequityratio:upto70%/30% Equity support: up to 49% of SPE*** or holding’s share capital (Institutions: public banks and pension funds) Environmental licensing: State- owned EPL is in charge of obtaining Previous License (LP) and Installation License (LI) of duplication works TO GO SP MG RJ ES BA Salvador Rio de Janeiro BR-101 BR-116 BR-381 BR-262 Belo Horizonte Vitória Mucurí São Paulo Highway BR-262 ES/MG To be awarded João Monlevade Governador Valadares *Withoutbenefitsandindirect expenses **TJLP-LongTermInterestRate, currently5%p.a. ***SpecialPurposeEntity InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30 Updatedinformationavailableat www.logisticsbrazil.gov.br Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance
  55. 55. 60 Ministry of Finance Highways RoadConcession–BR-153:fromPalmas(TO)toAnápolis(GO)(BR-060entrypoint) Object Demand Criteria • Section: BR-153, Anápolis (Entry Point of BR-060/GO) - Entry Point of TO-080;TO-080, Entry Point of BR-060/GO- Palmas • Total Length: 814 km • Length to be widened: 769.5 km The project includes widening, maintenance and operation of the highway. Other widening projects are also planned, including the construction of 10 km of side roads. Demand Projection (AADT): 2014 (99,926), 2019 (119,627), 2024 (146,113). ConnectsPalmas,Goiâniaandthesoutheast ofthecountry,crossingamajorBrazilian agriculturalpole.Palmasisthegeographical centerofthecountry,withthevocation tobecomeanimportanthub.BR-153is themainroadtoreachthecityofManaus fromotherregions,benefitingfromthe heavytrafficofManausFreeZone,which concentratesBrazilianelectronicproduction, amongotherimportantindustries. ConcessionTerm: 30 years. Number ofToll Plazas: 11. Criteria: lowest tariff. Economic and Financial Modeling CAPEX*: US$ 3.0 billion OPEX: US$ 1.4 billion Financing conditions: Term: 25 years (Grace period: 5 years) Rate:TJLP** + 2%a.a. Real leveraged IRR: up to 16% per year, in real terms. Debt to equity ratio: 70% / 30% Equity support: up to 49% of SPE*** or holding’s share capital (Institutions: public banks and pension funds) Environmental licensing: State- owned EPL is in charge of obtaining Previous License (LP) and Installation License (LI) of duplication works MT TO GO MS SP MG RJ ES BA Palmas Gurupi Uruaçu Anápolis BR-153 TO-080 BR-060 BR-040 BR-050 BR-262 BR-153 Highway BR-153 GO/TO To be awarded *Withoutbenefitsandindirect expenses **TJLP-LongTermInterestRate, currently5%p.a. ***SpecialPurposeEntity InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30 Updatedinformationavailableat www.logisticsbrazil.gov.br Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance
  56. 56. 61 Ministry of Finance Highways Road Concession – BR-060 (DF/GO), BR-153 (GO/MG) and BR-262 (MG) Object Demand Criteria • Section: BR-060, Entry Point of BR-251 (DF) – Entry Point of BR-153/GO; BR-153, Entry Point of BR- 060/GO – Entry Point of Br-262/MG; BR-262, Entry Point of BR-153/MG – Entry Point of BR-381 (Betim) • Total Length: 1,177 km •Lengthtobewidened:648km The project includes widening, maintenance and operation of the highway. Other widening projects are also planned, including the construction of 27 km of side roads and ringroad in Goiânia. Demand Projection (AADT): 2014 (160,374), 2019 (195,551), 2024 (238,453). Connects Brasília, Goiânia, Uberaba and Belo Horizonte, crossing a major Brazilian agricultural pole. Term: 30 years. Number ofToll Plazas: 11. Criteria: lowest tariff. Economic and Financial Modeling CAPEX*: US$ 3.9 billion OPEX: US$ 1.8 billion Financing conditions: Term: 25 years (Grace period: 5 years) Rate:TJLP** + 2%a.a. Real leveraged IRR: up to 16% per year, in real terms. Debttoequityratio:upto70%/30% Equity support: up to 49% of SPE*** or holding’s share capital (Institutions: public banks and pension funds) Environmental licensing: State- owned EPL is in charge of obtaining Previous License (LP) and Installation License (LI) of duplication works MT TO GO MS SP MG RJ ES BA Palmas Gurupi Uruaçu Anápolis BR-153 TO-080 BR-060 BR-040 BR-050 BR-262 BR-153 Highway BR-060/153/262 DF/GO/TO To be awarded *Withoutbenefitsandindirect expenses **TJLP-LongTermInterestRate, currently5%p.a. ***SpecialPurposeEntity InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30 Updatedinformationavailableat www.logisticsbrazil.gov.br Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance
  57. 57. 62 Ministry of Finance Highways Road Concession – BR-163: from MT/MS border to MS/PR border Object Demand Criteria • Section: BR-163, Border MT/MS – Border w/ MS/PR • Total Length: 847 km • Length to be widened: 807 km The project includes widening, maintenance and operation of the highway. Other widening projects are also planned. Demand Projection: under study Connects Cuiabá, Campo Grande and the Southeast/South Regions of Brazil, constituting an alternative route for the flow of Brazilian agricultural production. Term: 30 years. Criteria: lowest tariff. Economic and Financial Modeling CAPEX*: US$ 2.8 billion OPEX: US$ 1.3 billion Financing conditions: Term: 25 years (Grace period: 5 years) Rate:TJLP** + 2%a.a. Real leveraged IRR: up to 16% per year, in real terms. Debttoequityratio:upto70%/30% Equity support: up to 49% of SPE*** or holding’s share capital (Institutions: public banks and pension funds) Environmental licensing: State- owned EPL is in charge of obtaining Previous License (LP) and Installation License (LI) of duplication works MT TO GO MS PR SP MG RJ ES BA Curitiba Cuiabá Campo Grande Nova Alvorada Dourados BR-163 BR-364 BR-262 BR-267 Highway BR-163 /267/262 MS BR-163 To be awarded *Withoutbenefitsandindirect expenses **TJLP-LongTermInterestRate, currently5%p.a. ***SpecialPurposeEntity InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30 Updatedinformationavailableat www.logisticsbrazil.gov.br Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance
  58. 58. 63 Ministry of Finance Highways Road Concession – BR-163: from Sinop (MT) to MT/MS border Object Demand Criteria • Section: BR-163, Sinop – Border MT/MS • Total Length: 851 km • Length to be widened: 453 km The project includes widening, maintenance and operation of the highway. Other widening projects are also planned, including 20 km of ringroad (in 5 different cities) and 44 km of side roads. Demand Projection (AADT): 2014 (5,815), 2019 (7,140), 2024 (8,757) Connects Sinop, Cuiabá, Campo Grande and the North/Southeast/ South Regions of Brazil, crossing an important Brazilian agricultural production. Term: 30 years Number ofToll Plazas: 9 Criteria: lowest tariff Economic and Financial Modeling CAPEX*: US$ 2.7 billion OPEX: US$ 1.4 billion Financing conditions: Term: 25 years (Grace period: 5 years) Rate:TJLP** + 2%a.a. Real leveraged IRR: up to 16% per year, in real terms Debttoequityratio:upto70%/30% Equity support: up to 49% of SPE*** or holding’s share capital (Institutions: public banks and pension funds) Environmental licensing: State- owned EPL is in charge of obtaining Previous License (LP) and Installation License (LI) of duplication works MT TO GO MS PR SP MG RJ ES BA Goiânia Curitiba Cuiabá Campo Grande BR-163 BR-364 BR-262 BR-267 Posto Gil Rondonópolis Sinop BR-163 Highway BR-163 MT To be awarded *Withoutbenefitsandindirect expenses **TJLP-LongTermInterestRate, currently5%p.a. ***SpecialPurposeEntity InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30 Updatedinformationavailableat www.logisticsbrazil.gov.br Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance
  59. 59. Railways
  60. 60. 66 Ministry of Finance Railways Railway Network Exploited rail network PIL - Rail Network (11,000 km) – to be awarded StructuringWaterways PAC – Rail network New railways – Studies underway Updatedinformationavailableat www.logisticsbrazil.gov.br Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance Pacific Link Pacific Link Santarém Manaus Porto Velho Belém / V. Conde Rio Grande Santos Itaguaí Rio de Janeiro Vitória Ilhéus Salvador Suape Pecém Itaqui Aratu S F. Sul Paranaguá Itajaí / Navegantes Estrela d’Oeste Figueirópolis Estreito Lucas do Rio Verde Uruaçu Belo Horizonte Eliseu Martins Barreiras Rondonópolis Açailândia Salgueiro Parnamirim Maracaju
  61. 61. 67 Ministry of Finance Railways Railway Concession: São Paulo rail beltway (“Ferroanel”) and access to Santos seaport Object Demand Concession characteristics Financing Conditions The North Ferroanel will surround the metropolitan region of São Paulo, connecting Santos to Jundiaí. It will increase the rail cargo capacity and alleviate the traffic in the city. Section: Jundiaí-Manuel Feio; Riberão Pires-Evangelista de Souza; access to Santos Seaport Allows offsetting the transportation of cargo and passengers from other means of transporation in the São Paulo Metropolitan Region and optimizes railway access to Santos Seaport. Build, operate and transfer Railinfrastructurebuilderand manager:Concessionforrailway exploitation,comprising:construction, maintenance,signalingandcomunications systems,andtrafficcontrol. ConcessionTerm: 35 years Construction to be completed up to the 5th year of the concession term. RiskMitigation:DemandRisk (Guaranteedpurchaseof100%ofrailway operationalcapacityavailability);Socio- environmentalandExpropriationRisks (EnvironmentalandExpropriationcostsand chargeslimitedtovaluespre-establishedin concessioncontracts). Environmental licensing: State-owned EPL is responsible for obtaining Previous License (LP) and will give support for obtaining the Installation Licence (LI) of construction works. Term: 30 years (Grace period: 5 years) Rate:TJLP* + 1%a.a. Real leveraged IRR: up to 16% per year, in real terms. Upfront payment of revenues due to operational capacity availability, in equivalent value of 15% of total referential CAPEX. Equity support: up to 49% of SPE** or holding’s share capital (Institutions: public banks and pension funds). Canguera Amador BuenoMarinque Evangelista de Souza Santos Pereque Itaquaciara Perus Eng Manoel Feio Suzano Rio Grande da Serra Ipiranga Lapa Jundiaí Northern Ferroanel (SP) To be awarded SP Santos Seaport *TJLP-LongTermInterestRate, currently5%p.a. **SpecialPurposeEntity Updatedinformationavailable atwww.logisticsbrazil.gov.br Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance
  62. 62. 68 Ministry of Finance Railways Object Demand Concession characteristics Financing Conditions Section: Lucas do RioVerde - Campinorte and Palmas - Anápolis Extension: 1,920 km InterconnectsBrazil’sMidwestRegiontothe SoutheastandNortheast,providingrailway transportationtoproductioncenterslocated inthemidwestandtheoutflowthroughthe North-SouthRailway. Build, operate and transfer Estimated CAPEX: US$3.65billion Railinfrastructurebuilderand manager:Concessionforrailway exploitation,comprising:construction, maintenance,signalingandcomunications systems,andtrafficcontrol. ConcessionTerm: 35 years Construction to be completed up to the 5th year of the concession term. RiskMitigation:DemandRisk (Guaranteedpurchaseof100%ofrailway operationalcapacityavailability);Socio- environmentalandExpropriationRisks (EnvironmentalandExpropriationcostsand chargeslimitedtovaluespre-establishedin concessioncontracts). Environmental licensing: State-owned EPL is responsible for obtaining Previous License (LP) and will give support for obtaining the Installation Licence (LI) of construction works. Term: 30 years (Grace period: 5 years) Rate:TJLP* + 1%a.a. Real leveraged IRR: up to 16% per year, in real terms. Upfront payment of revenues due to operational capacity availability, in equivalent value of 15% of total referential CAPEX. Equity support: up to 49% of SPE** or holding’s share capital (Institutions: public banks and pension funds). Railway Concession: from Lucas do RioVerde (MT) to Campinorte (GO) and from Palmas (TO) to Anápolis (GO) MT TO GO MS SP MG RJ ES BA Palmas Campinorte Anápolis Lucas do Rio Verde Concession: Lucas do Rio Verde - Campinorte and Palmas - Anápolis To be awarded *TJLP-LongTermInterestRate, currently5%p.a. **SpecialPurposeEntity Updatedinformationavailable atwww.logisticsbrazil.gov.br Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance
  63. 63. 69 Ministry of Finance Railways Object Demand Concession characteristics Financing Conditions Section: Açailândia - Vila do Conde Extension: 457 km Interconnects the Midwest Region to the North and the port ofVila do Conde, completing the north stretch of the North- South Railway, allowing the production and outflow of grains, minerals and oil products through the port ofVila do Conde Build, operate and transfer Estimated CAPEX: US$ 1.39 billion Rail infrastructure builder and manager: Concession for railway exploitation, comprising: construction, maintenance, signaling and comunications systems, and traffic control. ConcessionTerm: 35 years Construction to be completed up to the 5th year of the concession term. Risk Mitigation: Demand Risk (Guaranteed purchase of 100% of railway operational capacity availability); Socio-environmental and Expropriation Risks (Environmental and Expropriation costs and charges limited to values pre- established in concession contracts). Environmental licensing: State-owned EPL is responsible for obtaining Previous License (LP) and will give support for obtaining the Installation Licence (LI) of construction works. Term: 30 years (Grace period: 5 years) Rate:TJLP* + 1%a.a. Real leveraged IRR: up to 16% per year, in real terms. Upfront payment of revenues due to operational capacity availability, in equivalent value of 15% of total referential CAPEX. Equity support: up to 49% of SPE** or holding’s share capital (Institutions: public banks and pension funds). Railway Concession: from Açailândia (MA) toVila do Conde (PA) TO MA PA Belém Açailândia Carajás Vila do Conde Port Itaqui Port Concession: Açailândia - Vila do Conde To be awarded *TJLP-LongTermInterestRate, currently5%p.a. **SpecialPurposeEntity Updatedinformationavailable atwww.logisticsbrazil.gov.br Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance
  64. 64. 70 Ministry of Finance Railways Object Demand Concession characteristics Financing Conditions Section: OuroVerde de Goiás – Dourados Extension: 1,339 km Expands the North-South Railway and reaches important production centers of grains. Build, operate and transfer Estimated CAPEX: US$ 1.78 billion Rail infrastructure builder and manager: Concession for railway exploitation, comprising: construction, maintenance, signaling and comunications systems, and traffic control. ConcessionTerm: 35 years Construction to be completed up to the 5th year of the concession term. Risk Mitigation: Demand Risk (Guaranteed purchase of 100% of railway operational capacity availability); Socio-environmental and Expropriation Risks (Environmental and Expropriation costs and charges limited to values pre- established in concession contracts). Environmental licensing: State-owned EPL is responsible for obtaining Previous License (LP) and will give support for obtaining the Installation Licence (LI) of construction works. Term: 30 years (Grace period: 5 years) Rate:TJLP* + 1%a.a. Real leveraged IRR: up to 16% per year, in real terms. Upfront payment of revenues due to operational capacity availability, in equivalent value of 15% of total referential CAPEX. Equity support: up to 49% of SPE** or holding’s share capital (Institutions: public banks and pension funds). Railway Concession: OuroVerde de Goiás (GO) – Estrela D’Oeste (SP) – Panorama (SP) – Dourados (MS) Concession: Ouro Verde de Goiás - Dourados To be awarded Ouro Verde de Goiás Goiânia Campo Grande Dourados Panorama Andradina Estrela d’Oeste GO MS *TJLP-LongTermInterestRate, currently5%p.a. **SpecialPurposeEntity Updatedinformationavailable atwww.logisticsbrazil.gov.br Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance
  65. 65. 71 Ministry of Finance Railways Object Demand Concession characteristics Financing Conditions Section: Belo Horizonte - Candeias Extension: 1,350 km Createsnewpossibilitiesfortransportofgeneral cargobetweenthesoutheastandnortheast regions,refocusingontheuseofrailwaystothe developmentoftheinternalmarket. Build, operate and transfer Estimated CAPEX: US$ 4.80 billion Rail infrastructure builder and manager: Concession for railway exploitation, comprising: construction, maintenance, signaling and comunications systems, and traffic control. ConcessionTerm: 35 years Construction to be completed up to the 5th year of the concession term. Risk Mitigation: Demand Risk (Guaranteed purchase of 100% of railway operational capacity availability); Socio-environmental and Expropriation Risks (Environmental and Expropriation costs and charges limited to values pre- established in concession contracts). Environmental licensing: State-owned EPL is responsible for obtaining Previous License (LP) and will give support for obtaining the Installation Licence (LI) of construction works. Term: 30 years (Grace period: 5 years) Rate:TJLP* + 1%a.a. Real leveraged IRR: up to 16% per year, in real terms. Upfront payment of revenues due to operational capacity availability, in equivalent value of 15% of total referential CAPEX. Equity support: up to 49% of SPE** or holding’s share capital (Institutions: public banks and pension funds). Railway Concession: from Belo Horizonte (MG) to Candeias (BA) GO SP MG RJ ES BA Concession: Belo Horizonte - Candeias To be awarded Salvador Candeias Corinto Salvador Port Aratu Port Belmonte Port Terminal Brumado Caetité Belo Horizonte Ilhéus Port *TJLP-LongTermInterestRate, currently5%p.a. **SpecialPurposeEntity Updatedinformationavailable atwww.logisticsbrazil.gov.br Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance
  66. 66. 72 Ministry of Finance Railways Object Demand Concession characteristics Financing Conditions Section: Rio de Janeiro -Vila Velha Extension: 572 km Integrates the port of Rio de Janeiro and its Terminals to the Ports ofVitória eTubarão, creating new logistic possibilities for the movement of cargo. Build, operate and transfer Estimated CAPEX: US$ 1.52 billion Rail infrastructure builder and manager: Concession for railway exploitation, comprising: construction, maintenance, signaling and comunications systems, and traffic control. ConcessionTerm: 35 years Construction to be completed up to the 5th year of the concession term. Risk Mitigation: Demand Risk (Guaranteed purchase of 100% of railway operational capacity availability); Socio-environmental and Expropriation Risks (Environmental and Expropriation costs and charges limited to values pre- established in concession contracts). Environmental licensing: State-owned EPL is responsible for obtaining Previous License (LP) and will give support for obtaining the Installation Licence (LI) of construction works. Term: 30 years (Grace period: 5 years) Rate:TJLP* + 1%a.a. Real leveraged IRR: up to 16% per year, in real terms. Upfront payment of revenues due to operational capacity availability, in equivalent value of 15% of total referential CAPEX. Equity support: up to 49% of SPE** or holding’s share capital (Institutions: public banks and pension funds). Railway Concession: from Rio de Janeiro (RJ) toVilaVelha (ES) MG RJ ES Concession: Nova Iguaçu - Vila Velha To be awarded Vitória Vila Velha Campos dos Goitaguazes Formosa Beach Tubarão Port Vitória Port Niterói Port Rio de Janeiro Port Ponta UBU Port Terminal Açu Port Terminal Macaé Port Terminal Rio de Janeiro Barra do Piraí Duque de Caixias Port Terminal Nova Iguaçú *TJLP-LongTermInterestRate, currently5%p.a. **SpecialPurposeEntity Updatedinformationavailable atwww.logisticsbrazil.gov.br Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance
  67. 67. 73 Ministry of Finance Railways Object Demand Concession characteristics Financing Conditions Section: Anápolis – Corinto – Campos Extension: 1,706 km Createsnewpossibilitiesfortheoutflowofgrains andmineralsfromproductioncentersthrough mainports. Build, operate and transfer Estimated CAPEX: US$ 7.80 billion Rail infrastructure builder and manager: Concession for railway exploitation, comprising: construction, maintenance, signaling and comunications systems, and traffic control. ConcessionTerm: 35 years Construction to be completed up to the 5th year of the concession term. Risk Mitigation: Demand Risk (Guaranteed purchase of 100% of railway operational capacity availability); Socio-environmental and Expropriation Risks (Environmental and Expropriation costs and charges limited to values pre- established in concession contracts). Environmental licensing: State-owned EPL is responsible for obtaining Previous License (LP) and will give support for obtaining the Installation Licence (LI) of construction works. Term: 30 years (Grace period: 5 years) Rate:TJLP* + 1%a.a. Real leveraged IRR: up to 16% per year, in real terms. Upfront payment of revenues due to operational capacity availability, in equivalent value of 15% of total referential CAPEX. Equity support: up to 49% of SPE** or holding’s share capital (Institutions: public banks and pension funds). Railway Concession: from Corinto (MG) to Campos (RJ) GO SP MG RJ ES BA Uruaçu Concession: Uruaçu - Campos Ilhéus Port Corinto Brumado Vitória Vitória Port Açu Port Terminal Belo Horizonte Intendente Câmara Campos Bernardo Sião To be awarded Anápolis *TJLP-LongTermInterestRate, currently5%p.a. **SpecialPurposeEntity Updatedinformationavailable atwww.logisticsbrazil.gov.br Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance
  68. 68. 74 Ministry of Finance Railways Object Demand Concession characteristics Financing Conditions Section: Feira de Santana – Ipojuca Extension: 893 km Modernizes the northeastern railway network, linking the major ports and markets Build, operate and transfer Estimated CAPEX: US$ 3.78 billion Rail infrastructure builder and manager: Concession for railway exploitation, comprising: construction, maintenance, signaling and comunications systems, and traffic control. ConcessionTerm: 35 years Construction to be completed up to the 5th year of the concession term. Risk Mitigation: Demand Risk (Guaranteed purchase of 100% of railway operational capacity availability); Socio-environmental and Expropriation Risks (Environmental and Expropriation costs and charges limited to values pre- established in concession contracts). Environmental licensing: State-owned EPL is responsible for obtaining Previous License (LP) and will give support for obtaining the Installation Licence (LI) of construction works. Term: 30 years (Grace period: 5 years) Rate:TJLP* + 1%a.a. Real leveraged IRR: up to 16% per year, in real terms. Upfront payment of revenues due to operational capacity availability, in equivalent value of 15% of total referential CAPEX. Equity support: up to 49% of SPE** or holding’s share capital (Institutions: public banks and pension funds). Railway Concession: from Feira de Santana (BA) to Ipojuca (PE) BA SE AL PE PB Concession: Feira de Santana - Ipojuca To be awarded Recife Maceió Aracajú Salvador Porto de Recife Porto de Suape Porto de Maceió Terminal Portuário de Atalaia Velha Porto de SalvadorPorto de Aratu Salgueiro *TJLP-LongTermInterestRate, currently5%p.a. **SpecialPurposeEntity Updatedinformationavailable atwww.logisticsbrazil.gov.br Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance
  69. 69. 75 Ministry of Finance Railways Object Demand Concession characteristics Financing Conditions Section: Lapa – Paranaguá Extension: 150 km Expands and modernizes rail access to the port of Paranaguá. Build, operate and transfer Estimated CAPEX: US$ 1.17 billion Rail infrastructure builder and manager: Concession for railway exploitation, comprising: construction, maintenance, signaling and comunications systems, and traffic control. ConcessionTerm: 35 years Construction to be completed up to the 5th year of the concession term. Risk Mitigation: Demand Risk (Guaranteed purchase of 100% of railway operational capacity availability); Socio-environmental and Expropriation Risks (Environmental and Expropriation costs and charges limited to values pre- established in concession contracts). Environmental licensing: State-owned EPL is responsible for obtaining Previous License (LP) and will give support for obtaining the Installation Licence (LI) of construction works. Term: 30 years (Grace period: 5 years) Rate:TJLP* + 1%a.a. Real leveraged IRR: up to 16% per year, in real terms. Upfront payment of revenues due to operational capacity availability, in equivalent value of 15% of total referential CAPEX. Equity support: up to 49% of SPE** or holding’s share capital (Institutions: public banks and pension funds). Railway Concession: from Lapa (PR) to Paranaguá (PR) MS PR SC RS SP RJ Concession: Lapa – Paranaguá Porto Alegre Florianópolis Rio Grande Port Pelotas Port Laguna Port Imbituba Port Itajaí Port Paranaguá Port São Sebastião Port Guaíba Port Terminal Duque de Caxias Port Terminal Cascavel Lapa Maracaju Panorama São Paulo Rio de Janeiro Curitiba Eng. Bley Mafra Campo Alto do Sul Chapecó Santos Port To be awarded *TJLP-LongTermInterestRate, currently5%p.a. **SpecialPurposeEntity Updatedinformationavailable atwww.logisticsbrazil.gov.br Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance
  70. 70. 76 Ministry of Finance Railways Object Demand Concession characteristics Financing Conditions Section: Maracaju – Lapa Extension: 989 km Creates new logistics possibilities for the outflow of grains and other cargo from production centers through the Port of Paranaguá. Build, operate and transfer Estimated CAPEX: US$ 3.13 billion Rail infrastructure builder and manager: Concession for railway exploitation, comprising: construction, maintenance, signaling and comunications systems, and traffic control. ConcessionTerm: 35 years Construction to be completed up to the 5th year of the concession term. Risk Mitigation: Demand Risk (Guaranteed purchase of 100% of railway operational capacity availability); Socio-environmental and Expropriation Risks (Environmental and Expropriation costs and charges limited to values pre- established in concession contracts). Environmental licensing: State-owned EPL is responsible for obtaining Previous License (LP) and will give support for obtaining the Installation Licence (LI) of construction works. Term: 30 years (Grace period: 5 years) Rate:TJLP* + 1%a.a. Real leveraged IRR: up to 16% per year, in real terms. Upfront payment of revenues due to operational capacity availability, in equivalent value of 15% of total referential CAPEX. Equity support: up to 49% of SPE** or holding’s share capital (Institutions: public banks and pension funds). Railway Concession: from Maracajú (MS) to Lapa (PR) MS PR SC RS SP RJ Concession: Lapa – Paranagua Porto Alegre Florianópolis Rio Grande Port Pelotas Port Laguna Port Imbituba Port Itajaí Port Paranaguá Port São Sebastião Port Guaíba Port Terminal Duque de Caxias Port Terminal Cascavel Lapa Maracaju Panorama São Paulo Rio de Janeiro Curitiba Eng. Bley Mafra Campo Alto do Sul Chapecó Santos Port To be awarded *TJLP-LongTermInterestRate, currently5%p.a. **SpecialPurposeEntity Updatedinformationavailable atwww.logisticsbrazil.gov.br Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance
  71. 71. 77 Ministry of Finance Railways Object Demand Concession characteristics Financing Conditions Section: Mairinque – Rio Grande Extension: 1,667 km Creates new logistics possibilities for the flow of cargo between Sao Paulo and the South Region of Brazil, linking production and consumption centers. Build, operate and transfer Estimated CAPEX: US$ 10.73 billion Rail infrastructure builder and manager: Concession for railway exploitation, comprising: construction, maintenance, signaling and comunications systems, and traffic control. ConcessionTerm: 35 years Construction to be completed up to the 5th year of the concession term. Risk Mitigation: Demand Risk (Guaranteed purchase of 100% of railway operational capacity availability); Socio-environmental and Expropriation Risks (Environmental and Expropriation costs and charges limited to values pre- established in concession contracts). Environmental licensing: State-owned EPL is responsible for obtaining Previous License (LP) and will give support for obtaining the Installation Licence (LI) of construction works. Term: 30 years (Grace period: 5 years) Rate:TJLP* + 1%a.a. Real leveraged IRR: up to 16% per year, in real terms. Upfront payment of revenues due to operational capacity availability, in equivalent value of 15% of total referential CAPEX. Equity support: up to 49% of SPE** or holding’s share capital (Institutions: public banks and pension funds). Railway Concession: from Mairinque (SP) to Rio Grande (RS) MS PR SC RS SP RJ Concession: Mairinque – Rio Grande Porto Alegre Florianópolis Rio Grande Port Pelotas Port Laguna Port Imbituba Port Itajaí Port Paranaguá Port São Sebastião Port Guaíba Port Terminal Duque de Caxias Port Terminal Cascavel Forno Port Maracaju Panorama São Paulo Rio de Janeiro Mairinque Eng. Bley Mafra Campo Alto do Sul Chapecó Santos Port To be awarded *TJLP-LongTermInterestRate, currently5%p.a. **SpecialPurposeEntity Updatedinformationavailable atwww.logisticsbrazil.gov.br Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance
  72. 72. 78 Ministry of Finance Railways Study in Progress Railway Concession – High-SpeedTrain (TAV) Rio de Janeiro - São Paulo - Campinas 1st Phase Physical Description Section: Rio de Janeiro - São Paulo - Campinas Extension: 511 km The High-SpeedTrain Rio de Janeiro – Campinas will be the first high speed rail service in Brazil.The first phase includes the concession of the operation and maintenance of the system, supply and assembly of operational (signalling, electrification and telecommunication) and safety systems, rolling stock and acoustic protection, and technology transfer. Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance Viracopos Galeão Guarulhos São Paulo Campinas Rio de Janeiro
  73. 73. Ports
  74. 74. 80 Ministry of Finance Seaports Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance Major Brazilian Ports Macapá Belém/Miramar/Outeiros Itaqui Pecém Cabedelo Suape/Recife Maceió Aratu/Salvador Porto Sul/Ilhéus Vitória Itaguaí/Rio De Janeiro Santos/São Sebastião Paranaguá/Antonia Itajaí/Imbituba/São Francisco do Sul Porto Alegre Rio Grande Vila do Conde Santarém Manaus/ Itacoatiara Porto Velho
  75. 75. 81 Ministry of Finance Seaports Port Investment Program - Bidding Blocks Block Ports Estimated Investment Increase Capacity Auction Block 1 31 terminals at: Santos, Outeiro, Santarém, Belém, Miramar andVila do Conde Ports US$ 1.5 bi 27 million tons/year Dec 2013 Block Ports Public Consultation Auction Block 2 44 terminals at: Paranaguá, Antoni- na, Salvador, Aratu and São Sebastião Ports Sep 2013 Jan 2014 Block 3 36 terminals at: Cabedelo, Fortale- za, Itaqui, Macapá, Recife and Suape Ports Oct 2013 Feb 2014 Block 4 28 terminals at: Itaqui, Niterói, Rio de Janeiro, Itajaí, São Francisco do Sul, Rio Grande, Porto Alegre andVitória Ports Nov 2013 Mar 2014 InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30 Source:SpecialSecretariatofPorts Producedby:MinistryofFinance
  76. 76. 82 Ministry of Finance Seaports Port Investment Program InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30 Source:NationalLogistics&Planning Company(EPL) Producedby:MinistryofFinance Conditions to public ports • Terminals at public ports will be leased through public auction Main Features • 25-year term, renewable only once Standardized biddings conducted through auction by ANTAQ ContractualTerms (requirements) • Minimutm Investments • Minimum productivity • Minimum static capacity Selection Criteria Terminal in verticalized chains or with healthy competition environment • Bidding for greater handling capacity • Induction of new investments Terminals with features of provision of services to third parties • Bidding for lowest tariff • Reduction of port costs • Guarantee of isonomic access to users  Conditions to private ports • Terminalsatprivateportsmaybeleasedwithoutapublicauction,shoulditsconstructionnotconflict with another port or terminal, existing or planed.There are 62 private terminals that should obtain its lease in the next months, with a estimated investment of US$ 7.5 billion
  77. 77. Airports
  78. 78. 84 Ministry of Finance Airports Source:CivilAviationSecretariat(SAC) Producedby:MinistryofFinance Major Brazilian Airports Brasília Goiânia Boa Vista Tabatinga Cruzeiro do Sul Rio Branco Tefé Porto Velho Manaus Santarém Altamira Macapá Belém (Val de Cans) Belém (Júlio César) Marabá Palmas Cuiabá Corumbá Campo Grande Ponta Porã Foz do Iguaçú Uruguaiana Bagé Porto Alegre Pelotas Criciúma Florianópolis Navegantes Joinville Curitiba (Afonso Pena) SP (Congonhas) Curitiba (baracher) SP (Campos de Marte) Londrina Uberaba Uberlândia RJ (Jacarepaguá) RJ Santos Dumont Macaé Campos dos Goytacazes Vitória Montes Claros Petrolina Juazeiro do Norte Fortaleza Parnaíba Guarulhos RJ (Galeão) Campinas SJ dos Campos Teresina Imperatriz Carajás Campina Grande Paulo Afonso Ilhéus Salvador Aracajú Natal João Pessoa Recife Maceió Confins BH (Carlos Prates) BH (Pampulha) 15.000.001 to 30.100.000 (3) 5.000.001 to 15.000.000 (9) 1.000.001 to 5.000.000 (15) 5000.001 to 1.000.000 (7) 100.001 to 500.000 (19) Up to 100.000 (13) Passengers per year Concessions to be granted : Galeão (Rio de Janeiro) Confins (Belo Horizonte) Concessions already granted : Guarulhos (São Paulo) Viracopos (São Paulo) Brasília
  79. 79. 85 Ministry of Finance Airports Airport Investment Program InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30 Source:CivilAviationSecretariat(SAC) Producedby:MinistryofFinance Airport International Pax - 2012 Domestic Pax - 2012 Estimated Investment Auction Concession Term Situation Guarulhos International (GRU) 11,387,443 20,958,079 US$ 3.1 billion Feb 2012 20 years Granted Viracopos International (VCP) 75,610 8,627,690 US$ 5.1 billion Feb 2012 30 years Granted Brasilia International (BSB) 409,975 15,419,553 US$ 1.8 billion Feb 2012 25 years Granted Galeão International (GIG) 4,190,433 12,973,780 US$ 2.45 billion Nov 2013 25 years To be Granted Confins International (CNF) 443,955 9,834,536 US$ 1.52 billion Nov 2013 30 years To be Granted
  80. 80. 86 Ministry of Finance Airports Schedule for the concessions of Galeão and Confins airports 2013 Release of Auction Notices TCU* and Public Hearings AuctionStudies May Jun Jul Aug Sep Nov *TCU-FederalCourtofAuditors Source:CivilAviationSecretariat(SAC) Producedby:MinistryofFinance
  81. 81. 87 Ministry of Finance Airports Galeão - Summary Chart Galeão - Summary Chart Airport Area: 17,881,697m² Area for Apron: 712,895 m2 Aircraft Capacity: -T1: 19 boarding gates + 12 remote positions -T2: 19 boarding gates + 12 remote positions - 15 positions for cargo aircraft PassengerTerminals: Capacity: 17.4 million Pass/Yr Area: T1 - 147,834 m² T2 - 132,847 m² Parking: 4,310 parking spaces CargoTerminal: 46,500 m² Cargo Movements: 87,876 ton Staff Employees: 958 Number of Passengers, in million Passenger Profile (2012), in million Int Dom 13.0 4.2 0 6 12 18 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2011-2012: 17.5% Average Growth = 16% Source:CivilAviationSecretariat(SAC) Producedby:MinistryofFinance
  82. 82. 88 Ministry of Finance Airports Galeão – Financial Conditions Object: • Expansion, maintenance and operation of the Antônio Carlos Jobim International Airport (Galeão Airport) with a total area of 17,880,000 m2 Contract criteria: • Term: 25 years • Consortium:INFRAERO,thegovernmentownedcompany,willhold49%oftheConcessionairecapital; private leveraged (51%) • Periodic review of the capex program and Investment triggers • Bidding Criteria: highest bid + variable fee • Minimum bid: US$ 2.09 billion • Variable fee: 5% of the gross revenue • CAPEX: US$ 2.45 billion • Project IRR: 6.63% p.a. • OPEX: US$ 4.63 billion Financing conditions*: • Credit term: 14 years • Grace period: 2 years • Debt: up to 80% of the capex • Interest Rate: TJLP (currently at 5%) + 0.9% + risk spread (0.46% to 3.57%) per year *BNDESfinancingconditionsapplied toairportsalreadygranted(Guarulhos, ViracoposandBrasília). InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30 Source:CivilAviationSecretariat(SAC) Producedby:MinistryofFinance
  83. 83. 89 Ministry of Finance Airports Galeão- Estimated Demand 10 30 50 70 2038203320232013 60.3 50.1 34.5 19.2 MillionPassengers Source:CivilAviationSecretariat(SAC) Producedby:MinistryofFinance Year 2013 2023 2033 2038 Passengers 19,269,199 34,537,602 50,138,243 60,365,874
  84. 84. 90 Ministry of Finance Airports Confins - Summary Chart Confins - Summary Chart Airport Area: 15,010,000 m² Area for Apron: 211,437 m2 Aircraft Capacity: Apron 1: 9 boarding gates + 9 remote positions Apron 2: 7 positions for general aviation + 1 helipad Apron 3: 2-4 positions for general aviation PassengerTerminal: Capacity: 10.3 million Pass/Year Area: T1 - 60,305 m² Vehicle Parking : 2,005 parking spaces CargoTerminal: 9,880 m² Cargo Movements: 27,163 ton Staff Employees: 344 Number of Passengers, in million Passenger Profile (2012) , in million Int Dom 9.8 0.4 2011-2012: 9.5% Average Growth = 46.3% Migration of Pampulha to Confins 0 4 8 12 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 Source:CivilAviationSecretariat(SAC) Producedby:MinistryofFinance
  85. 85. 91 Ministry of Finance Airports Cofins - Financial Conditions Object: • Expansion, maintenance and operation of theTancredo Neves International Airport (Confins Airport) with a total area of 15,010,000 m2 Contract criteria: • Term: 30 years • Consortium: INFRAERO, the government owned company, will hold 49% of the Concessionaire capital; private leveraged (51%) • Periodic review of the capex program and Investment triggers • Bidding Criteria: highest bid + variable fee • Minimum bid: US$ 476.5 million • Variable fee: 5% of the gross revenue • CAPEX: US$ 1.52 billion • Project IRR: 6.63% p.a. • OPEX: US$ 1.57 billion Financing conditions*: • Credit term: 14 years • Grace period: 2 years • Debt: up to 80% of the capex • Interest Rate:TJLP (currently at 5%) + 0.9% + risk spread (0.46% to 3.57%) per year *BNDESfinancingconditionsapplied toairportsalreadygranted(Guarulhos, ViracoposandBrasília) InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30 Source:CivilAviationSecretariat(SAC) Producedby:MinistryofFinance
  86. 86. 92 Ministry of Finance Airports Confins – Estimated Demand 5 14 23 32 41 50 2043203320232013 28.1 18.1 10.9 43.3 MillionPassengers Year 2013 2023 2033 2043 Passengers 10,993,890 18,162,209 28,165,165 43,334,690 Source:CivilAviationSecretariat(SAC) Producedby:MinistryofFinance
  87. 87. Oil and Gas
  88. 88. 94 Ministry of Finance OilandGas InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30 Source:NationalAgencyofPetroleum, NaturalGasandBiofuels(ANP)and MinistryofMinesandEnergy(MME) Producedby:MinistryofFinance 11th Round – Bidding Results (May 2013) • 142 bought blocks, from 289 offered at the auction • US$ 1.22 billion in signature bonus • US$ 3.0 billion in the Minimum Exploratory Program commitment • Local Content offers indicates good possibilities for execution of the previous commitments regarding earlier bidding rounds • 30 companies bought blocks at the bidding round - 18 companies from 11 different countries
  89. 89. 95 Ministry of Finance OilandGas Source:NationalAgencyofPetroleum, NaturalGasandBiofuels(ANP)and MinistryofMinesandEnergy(MME) Producedby:MinistryofFinance 11th Round – Bidding Result (May 2013) Brasília Pernambuco-Paraíba Barreirinhas Pará-Maranhão Amazonas River Mouth Ceará Parnaíba Tucano and Reconcavo Basins Potiguar Onshore Basin Potiguar Offshore Espírito Santo Onshore/Offshore Brought Blocks Offered but not sold Offshore Sedimentary Basin Pre-Salt Limit
  90. 90. 96 Ministry of Finance OilandGas Source:NationalAgencyofPetroleum, NaturalGasandBiofuels(ANP)and MinistryofMinesandEnergy(MME) Producedby:MinistryofFinance 11th Round – Bidding Result (May 2013) Sedimentary basin State Bought Blocks Area (km2 ) Sergipe-Alagoas onshore AL 11 320.89 Foz do Amazonas AP 14 10,543.55 Pernambuco-Paraíba PB 1 476.95 PE 3 1,776.23 Tucano Sul BA 21 3,789.67 Espírito Santo offshore ES 6 4,328.40 Espírito Santo onshore ES 6 178.73 Recôncavo BA 15 443.13 Ceará CE 6 3,642.32 Potiguar offshore CE 3 2,303.23 RN 1 767.38 Potiguar onshore RN 14 411.80 Barreirinhas MA 19 9,997.40 Pará-Maranhão MA 2 1,538.57 PA 0 - Parnaíba (onshore) PI 14 42,143.81 MA 6 17,620.43 TOTAL 11 142 100,282.49
  91. 91. 97 Ministry of Finance OilandGas InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30 Source:NationalAgencyofPetroleum, NaturalGasandBiofuels(ANP)and MinistryofMinesandEnergy(MME) Producedby:MinistryofFinance 1st Round of production sharing – Pre-Salt layer Date: October 21, 2013 Area name: Libra • 1,548 sq km • Deep water of Santos Basin • Well with tested oil discovery • Estimative of 42 billion bbl of oil in situ, indicating recovery of 8 to 12 billion barrels Signature Bonus: R$ 15 billion (~US$ 6.5 billion) Judgement criteria: Percentage of profit oil for the Government (minimum of 40% in average along the contract period) Local Content • 37% at Exploratory Phase • From 55% to 65% at Production Development Phase Jul Sep Oct21st Dec 2013 Preliminary auction notice, areas and data Release of auction notice Auction Contract Signature
  92. 92. 98 Ministry of Finance OilandGas Source:NationalAgencyofPetroleum, NaturalGasandBiofuels(ANP)and MinistryofMinesandEnergy(MME) Producedby:MinistryofFinance Brazil Pre-Salt layer – Bidding under production sharing regime Pre-Salt Boundaries Estimated Recoverable Volumes Libra 8 to 12 bi boeFranco 2.0 to 5.5 bi boe Florim 0.1 to 0.4 bi boe Sul de Guará 0.1 to 0.3 bi boe Peroba 1.1 to 1.8 bi boe South and NE of Tupi 0.5 to 0.7 bi boe Iara Surroundings 0.6 to 0.8 bi boe Lula 8.3 bi boe Iara 3 to 4 bi boeSapinhoá 2.1 bi boe Pão de Açúcar 1.2 bi boe Parque das Baleias 1.5 to 2 bi boe Rio de Janeiro São Paulo Espirito Santo Proved Reserves (2012): 18.2 bi boe Granted area: 42 thousand sq km (28%) Cession area: 3.74 thousand sq km (2,5%) Estimated Volumes (06/2013) 28.5 to 39.1 billion boe • At the Pre-Salt evaluated areas, expected recoverable volumes could reach twice the actual proved reserves
  93. 93. 99 Ministry of Finance OilandGas Source:NationalAgencyofPetroleum, NaturalGasandBiofuels(ANP)and MinistryofMinesandEnergy(MME) Producedby:MinistryofFinance 12Th Bidding Round: auction scheduled for November, 2013 Concession of areas under rules and terms established by Law 9,478/1997 Focus on natural gas – conventional and unconventional resources Blocks: 240 • 164,500 km² • 7 Sedimentary Basins Bidding judgment criteria: • Signature Bonus (40%) - Minimum for each block in the Auction Notice • Minimum Exploratory Program (40%) • Local Content (20%) - Minimum and maximum values in Auction Notice
  94. 94. 100 Ministry of Finance OilandGas Source:NationalAgencyofPetroleum, NaturalGasandBiofuels(ANP)and MinistryofMinesandEnergy(MME) Producedby:MinistryofFinance Areas with potential for non-conventional resources Oil and Gas in Brazil Sedimentary Basin Tacutu Solimões Acre Madre de Dios Amazonas Alto Tapajós Parecis Pantanal Paraná Camamu-Almada Parnaíba Barreirinhas Bananal São Francisco Recôncavo Amazonas River Mouth Pará-Maranhão Potiguar Rio do Peixe Pernambuco-Paraíba Sergipe-AlagoasTucano Espírito Santo Campos Santos
  95. 95. Electricity
  96. 96. 102 Ministry of Finance Electricity Brazilian investments in the electricity sector auctions – 2013 to 2017 Estimated Expansion Investments (US$ billion) Power 33,288 MW 53.1 Transmission 21,164 km 11.0 Total 64.1 • Electricity transmission lines • Power to be contracted Auction Length (Km) Investment (US$ billion)* 2013 4,745 2.4 2014-2017 Approved Projects 11,846 6.0 Other Projects 4,573 2.6 Total 21,164 11.0 Sources Capacity (MW) Investment (US$ billion) Hydro 21,689 35.4 Other Renewable Sources (Wind, Biomass and Small Hydro) 10,099 16.4 Thermal 1,500 1.3 Total 33,288 53.1 Source:EnergyResearchOffice(EPE) Producedby:MinistryofFinance *Includingestimatedinvestmentin substations InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30
  97. 97. 103 Ministry of Finance Electricity Source:EnergyResearchOffice(EPE) Producedby:MinistryofFinance Electricity Auctions • Modalities • New Energy Auctions A-3 and A-5: servicing expected demand growth • Reserve auctions: ensuring greater security of supply • Structuring Project Auctions: special conditions • Bidders • Public or private companies • National or foreign companies •Winners • Lowest bid • Winners of the new energy auctions sign long-term contracts (15 to 30 years) with distributors and receive concessions (in the case of hydropower plants) • Indexation • IPCA (Consumer Price Index) • Financing • Use of the PPA (Power Purchase Agreement) as collateral for project financing by the BNDES • Risk mitigation • Only projects with prior environmental licenses are auctioned off
  98. 98. 104 Ministry of Finance Electricity HPP-HydroPowerPlant ANEEL-NationalElectricityAgency Source:EnergyResearchOffice(EPE) Producedby:MinistryofFinance Maintechnicalrequirementsforparticipationintheelectricityauctions Type ANEEL Registry Prior Environmental License Access Information Energy Production Certification Proof of Right of Local Use Proof of Availability Water Use Grant Wind Power Plant X X X X X Hydroelectric Plant (HPP and small Hydro) X X X X Thermoelectric Plant (Biomass and fossil) X X X X X X • A project’s technical and environmental viability must be ensured to participate in the electricity auction • Several requirements must be met to prove viability, such as:
  99. 99. 105 Ministry of Finance Electricity Main financial requirements for participating in electricity auctions and for signing power contracts • Bid guarantees due to ANEEL • Foreachprojecteligibletoparticipateintheauction,biddersmustsubmitbidguaranteesduetoANEEL 1. For Projects without grants: 1% of the investment value 2. For Projects with grants: US$ 870 per lot of energy to be offered (1 lot = 0.1 average MW) • Assurance of Faithful Execution of Contract •The auction winners must collect 5% of the investment value declared to the EPE •The warranties will decrease in value as the construction phase of the power plant advances AverageMW(MWm)–EnergyUnit (8,760MWhoveranyearlyperiod) Source:EnergyResearchOffice(EPE) Producedby:MinistryofFinance
  100. 100. 106 Ministry of Finance Electricity BNDES FINEM (Financing to Enterprises) Financial Aspects Hydro Power Plant (HPP) Thermal Power Plant (TPP) Wind, Biomass and Small Hydro • Current credit conditions: • Leverage: up to 70%; • Amortization period: up to 20 years; • Grace period: up to 6 months after commercial operation date; • Interest rate:TJLP**+0.9%+credit risk spread. • Current credit conditions: • Leverage: up to 70% (60% coal), should observe DSCR* ≥ 1.2; • Amortization period: up to 16 years; • Grace period: up to 6 months after commercial operation date; • Interest rate:TJLP**+0.9% +credit risk spread. • Current credit conditions: • Leverage: up to 80%, should observe DSCR * ≥1.2; • Amortization period up to 20 years (16 years for wind); • Grace period: up to 6 months after commercial operation date; • Interest rate:TJLP**+0.9%+credit risk spread. *DSCR:debtservicecoverageratio **TJLP:LongTermInterest Tax,currently5.0% Source:National Bank of Economic and Social Development (BNDES)– ConsultationinJan/2013 Producedby:MinistryofFinance
  101. 101. 107 Ministry of Finance Electricity Source:EnergyResearchOffice(EPE) Producedby:MinistryofFinance Electricity Auctions: main results • August 2013 Reserve Auction • August 2013 Power Auction InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30 Type Projects able to bid Auction Results Bid Capacity (MW) Number of Participants Bid Capacity (MW) Number of Participants Total Amount (US$ million) Wind Power Plant 8,999 377 1,505 66 2,373 Type Projects able to bid Auction Results Bid Capacity (MW) Number of Participants Bid Capacity (MW) Number of Participants Total Amount (US$ million) Biomass 919 16 647 9 815 Coal 1,840 3 - - - HPP (less than 50 MW) 376 16 219 9 586 HPP SINOP 400 1 400 1 773 Total 3,535 36 1,266 19 2,174 Number of Auctions Projects Capacity (MW) Investment (US$ billion) 23 490 60,892 100 • Consolidated results of new energy auctions from 2005 to 2012
  102. 102. 108 Ministry of Finance Electricity Source:EnergyResearchOffice(EPE) Producedby:MinistryofFinance Hydropower Expansion: 2013 electricity auctions InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30 • November 2013 Auction • Hydropower Expansion: December 2013 auction Type Projects able to bid Bid Capacity (MW) Number of Participants Wind Power Plant 15,042 629 Solar 2,838 119 Small Hydro 295 16 Biogas 39 2 Biomass 504 15 Natural Gas 469 2 Total 19,187 783 Auction Hydropower Plant River/State Capacity (MW) Total Capacity (MW) Estimated Investments (US$ billion, constant prices, Dec/2012) 2013 São Manoel Teles Pires/ MT-PA 700 1,021 1.8 Cachoeira Parnaíba/ PI 63 Ribeiro Gonçalves Parnaíba/ PI 113 Itaocara Paraíba do Sul/RJ 145
  103. 103. 109 Ministry of Finance Electricity Source:EnergyResearchOffice(EPE) Producedby:MinistryofFinance Hydropower Expansion: auctions from 2014 to 2017 InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30 Auction Hydropower Plant River/State Capacity (MW) Total Capacity (MW) Estimated Investments (US$ billion, constant prices, Dec/2012) 2014 Davinópolis Paranaíba/ MG-GO 74 7,495 11.3 Foz do Piquiri Piquiri/ PR 93.2 Ercilândia Piquiri/ PR 87.1 S LuízTapajós Tapajós/ PA 6,133 Água Limpa Das mortes/ MT 380 Comissário Piquiri/ PR 105 Foz Piquiri Piquiri/ PR 101 Telêmaco Borba Tibagi/ PR 109 Paranhos Chopim/PR 63 Tabajara Ji-Paraná/RO 350 2015 Jatobá Tapajós/PA 2,336 3,249 5.4Castanheira Arinos/ MT 192 Itapiranga Uruguai/SC-RS 721 2016 Torixoréu Araguaia/ GO-MT 408 1,117 2.3 Bem Querer Branco/ RR 709 2017 Riacho Seco S. Francisco / PE-BA 276 8,407 13.7 Salto Augusto Baixo Juruena/ MT-AM 1,461 S. Simão Alto Juruena/ MT-AM 3,509 Pompeu S. Francisco / MG 209 Marabá Tocantins / PA-MA 2,160 Prainha Aripuanã/ AM 792 Total 20,268 32.7
  104. 104. 110 Ministry of Finance Electricity HPP São Manoel - Fact sheet •Teles Pires River • Capacity: 700 MW • Firm Energy: 400 average MW • Number of generating units: 5 • Gross Head: 23.9 m • Spillway Crest: 165 m. • Max normal water level (reservoir): 161 m • Normal water level downstream: 138.2 m • Reservoir Area (normal water levels) ~ 70.8 km² Estimated Investment US$ 1.0 billion Indigenous Land Cayabi 0 2,5 5 10 15 20 N Legend HPP São Manoel HPP São Manoel Reservoir 0 2,5 5 10 15 20 Declared Indigenous Land State border line MATO GROSSO Novo Planeta Paulão Mutum HPP São Manoel PARÁ Source:EnergyResearchOffice(EPE) Producedby:MinistryofFinance InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30
  105. 105. 111 Ministry of Finance Electricity Source:EnergyResearchOffice(EPE) Producedby:MinistryofFinance The development of wind power in Brazil • Operating and contracted capacity •To be contracted in 2013-2017 auctions 0 2000 4000 6000 8000 10000 10,130 8,846 7,882 5,197 2,189 1,750 1,417 927 607337248237292322 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 MW InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30 Capacity (MW) Investment (US$ billion) 4,215 7.7
  106. 106. 112 Ministry of Finance Electricity Source:EnergyResearchOffice(EPE) Producedby:MinistryofFinance The development of bioelectricity in Brazil • Operating and contracted capacity • To be contracted in 2013-2017 auctions 0 2,000 4,000 6,000 8,000 10,000 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 1,755 2,584 2,590 3,910 4,969 6,822 7,874 8,081 8,936 9,035 9,035 9,085 9,185 MW Capacity (MW) Investment (US$ billion) 2,513 2.4 InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30
  107. 107. 113 Ministry of Finance Electricity Source:EnergyResearchOffice(EPE) Producedby:MinistryofFinance Other energy sources to be contracted in 2013 – 2017 auctions • Small hydropower plants • Additional expansions depend on the effective exploration of unconventional gas • Thermal power stations Capacity (MW) Investment (US$ billion) 1,500 1.3 Capacity (MW) Investment (US$ billion) 1,000 2.6 InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30
  108. 108. 114 Ministry of Finance Electricity Source:EnergyResearchOffice(EPE) Producedby:MinistryofFinance Transmission Line Auctions • Bidders • Legal Entities: National or Foreign • Equity Funds: alone or in a consortium • Clearance • Clearance after auctions and publication of winning bids •Winners • Bidder with lowest Allowed Annual Revenue (RAP) •Winners will sign long-term contracts (30 years) • Regulated contracts • Indexation by IPCA (Consumer Price Index) • Contracts submitted to the Periodic Rate Reviews • Financing • RAP as collateral for financing by the BNDES
  109. 109. 115 Ministry of Finance Electricity Source:EnergyResearchOffice(EPE) Producedby:MinistryofFinance Transmission Line Auctions: sequence of events -2.8 Public Notice of Auction ANEEL approval of technical capacity of the winners of the auction TL Auction Winners deliver documentation to ANEEL Celebration of concession contract between winner and ANEEL Auction held at BM&FBOVESPA Approval of Auction Results Auction application and bid guarantees due to ANEEL Accepted bid guarantee instruments: cash deposit, surety bond, bank guarantee, Brazilian Government Bonds (1% of estimated investment) Replacement of bid guarantees with the guarantee of faithful execution of the contract (5% of estimated investment)
  110. 110. 116 Ministry of Finance Electricity BNDES FINEM (Financing to Enterprises) Financial Aspects • Access to financing available to national and international companies with head offices and management in Brazil, and legal entities of public law • Current credit conditions: • Leverage: up to 70% • Total Loan Period: up to 14 years • Grace period: up to 6 months after commercial operation date. • Interest rate:TJLP*+1.3%+credit risk spread Source:EnergyResearchOffice(EPE) Producedby:MinistryofFinance *TJLP:LongTermInterestTax, currently5.0%
  111. 111. 117 Ministry of Finance Electricity Source:EnergyResearchOffice(EPE) and National Electricity Agency(ANEEL) Producedby:MinistryofFinance Transmission Line Past Auctions: main results • Transmission Line Auction of Dec, 2012: Main Results • Number of applicants: 15 (includes state-owned companies, private groups, 4 foreign groups, and equity funds) • TotalTL** tendered: 3,822 Km • Estimated investment: US$ 1.7 billion • Average discount: 21.7% • Stiff competition: for example, in“500 kV Estreito - Itabirito”transmission line auction, there were 305 bids that resulted in a 16.6% discount *currentvalues **TL–TransmissionLine InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30 • Consolidated results of auctions from 2000 to 2012 Number of Auctions Length (km) Investment (US$ billion) (*) 24 51,000 13.9
  112. 112. 118 Ministry of Finance Electricity Source:EnergyResearchOffice(EPE) Producedby:MinistryofFinance Main Projects: north-southeast expansion Physical Description Goals • Main section: Connects the North and Southeast Region, with DC Link between the states of Pará and Minas Gerais • Length: • 2,050 km on Direct Current • 2,244 km on Alternating Current • Promotes interconnection between two major subsystems, enabling the exchange of electricity between regions North and Southeast. • Increase of 4,000 MW in exchange capacity between the North and Southeast Regions Financial Aspects • ConcessionTerm: 30 years • Estimated Investment: US$ 2.6 billion Project Requirements • TLs in Direct Current: 800 kV • Increases in Existing System • Bidding in 2013 • Winning Bidder: the lowest RAP (Allowed Annual Revenue) (2) (2) 800 KV DC 2,050 Km Bipole 1 500 KV AC 2,244 Km Terminal Minas TOCANTINS Miracema Colinas Itacaúnas MATO GROSSO GOIÁS Paraupebas PARÁ MARANHÃO Xingo Picuruí InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30
  113. 113. 119 Ministry of Finance Electricity MainTL Projects to be Auctioned in 2013 2nd semester 2013 - transmission lines (EPE proposal) Estimated Investment of US$ 2.4 billion (*) Source:EnergyResearchOffice(EPE) Producedby:MinistryofFinance *Includesestimatedinvestmentin substations InthefirsthalfofSeptember2013, theaverageexchangeratewas approximatelyUS$1= R$2.30 Associated Projects Projects State Voltage (kV) Length (Km) Investment (US$ billion) To meet electricity demand growth TL Itabirito 2 –Vespasiano 2, CS MG 500 90 0.1TL Barro Alto – Itapaci, C2 GO 230 68 TL Candiota (Presidente Médici) – Bagé 2 RS 230 50 Expansion S/SE TL Itatiba – Bateias SP/PR 500 390 0.2 Expansion before Belo Monte TL Marimbondo II - Campinas SP 500 370 0.3TL Araraquara 2 - Itatiba, CS SP 500 198 TL Araraquara 2 - Fernão Dias, CS SP 500 240 ExpansionoftheInterconnectionN/SE TL Xingu –Terminal Minas 800 kV (CC – Bipolo 1) PA/SP 800 2,050 1.3 To meet electricity demand growth TL 230 kV Miranda – Chapadinha II C1 MA 230 140 0.3 TL 230 kV Coelho Neto – Chapadinha II C1 MA 230 78 TL 230 kVVila do Conde -Tomé-Açu C2 PA 230 120 TL 230 kV Imperatriz – Porto Franco C2 MA 230 111 TL 230 kV Ribeiro Gonçalves – Balsas C2 MA 230 95 TL 230 kVTrindade – Firminópolis GO 230 88 Integration of isolated systems TL Rio Branco – Feijó AC 230 357 0.2 TL Feijõ – Cruzeiro do Sul AC 230 300 Total 4,745 2.4
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