Bahia PPP´s Projects Word Bank-Washington USA

1. Washington DC, April 10 th
Public Private Partnerships
JOSE SERGIO GABRIELLI DE AZEVEDO
Chief Planning Officer of the Government of Bahia

2. SUMMARY
1.Portfolio of projects
2.Capacity for implementation PPP’s Projetcs
3.New projects

3. PROJECTS CONTRACTS IN THE
PERIOD 2007 TO 2010
1. BA-093 - road system (Toll-road: paid
by users )
2. Sanitation Project: Outfall
3. Football Stadium for the World Cup
4. Hospital of Suburbio

4. BA-093 –Road System
Area of the Road Studies and Project
MAIN INDUSTRIAL HUBS
 Salvador and its metropolitan area has about 4 million inhabitants, it is the biggest city in the
Northeast of Brazil
Project includes 125 km of roads in more than 10 segments in the Metropolitan Area of Salvador;
263 km were originally studied
Connects the main industrial hubs,one port and one airport
 Area of influence: encompasses 17 Municipalities, with 3.4 million people that accounts for more
than 50% of the State GDP
Contract signed in August 2010 (to be expired in 25 years).The study began in June 2008
CAPEX: US$ 500 million
Initial toll road: R$ 2,70

5. Sanitation Project: Outfall

6. Sanitation Project: Outfall
Projeto SDO Jaguaribe
Características Gerais
- Contract signed by the state company (EMBASA) in
12/27/2006 (to expired in 18 years);
- The contract was renegotiated in July 2007
- Engineering works started in September 2007
- Total of investment: US$ 95 milllion
- The operation of the system started in May 2011
- Initial government payment : US$ 26 million per year

7. Soccer Stadium for the World Cup

8. Soccer Stadium for the World Cup
• Contract signed in January 2010 (to be expired in 35 years)
• Government payment : US$ 50 million per year for 15 years
• Investment : US$ 350 million
• The goverment and the partner will share the revenue under
or above US$ 10 million
• Multipurpose arena (soccer and other events) for 51,000
people)
– .
* A Parcela Variável pode sofrer abatimentos, em função de seu desempenho, conforme auferido pelo QID.
** Valores para um mês de operação, indicados na Proposta Econômica

9. Hospital of Suburbio
Health’s PPP in the State of Bahia
The Context of Public Health in the State
Salvador Metropolitan Region
 3.8 million inhabitants
 GPD : R$ 46,2 bi
Bahia
 > 14 million inhabitants
 GPD : R$90,9 bi
 37 State hospitals, with 4.939 beds
 7 State hospitals were put under municipal
management and 1 under Federal-
Government’s management (2007 to 2009)
 There’s a 19-year workspace without a new
emergency state hospital in Salvador
Metropolitan region
 Covered population in the area of attraction:
1 million inhabitants

10. Hospital of Suburbio
The Modernization Programme – Health
Innovation Hospital Management
• State
– Construction of the unit
– Partner’s payment
• Partner
– Equip and furnishment the unit
– Keep the unit technologically updated
– Full management of the unit (costing + maintenance +
technological park update)
– Reformed workspaces return the drive to the end of the
programme

11. Hospital of Suburbio
Some Points
• First PPP health in Brazil with the inclusion of medical services
• Payment only after service provided
• Flexibility to structure the project according to the needs of the
parties
• Transfer of responsibility for all initial investment (equipments
+furnishing) by partner
• Conducting of new reforms and futures enlargements by partner
• Replacement of technological park and equipment by partner
• Contract signed in May 2010 (to be expired in ten years )
• The hospital started working in September 2010
• Total of investiment: US$ 25 million
• Initial government payment : US$ 55 million per year

12. Capacity for
implementation PPP’s Projetcs
• The state of Bahia has an administrative structure
capable
– appropriate administrative to analyze projects
– experience in modeling projects (two with the BNDES/IFC)
• The state has a structure of security that mitigates the
risk of the private partner
– has a law that guarantees the payment by a stable source of
revenue (FPE-constitutional transfer);
– the law is being improved with the creation of an account scroll
to ensure three months of payment
• The state remaining quantity available to hire new
projects despite the restriction imposed by the law
of PPP, which limits spending to 3% of net revenue

13. Capacity for implementation PPP’s
Projetcs
Management Struture of PPP in Bahia
GOVERNOR OF THE
STATE
•Secretary of Finance (President)
SECRETARY OF
FINANCE COUNCIL •Secretary of Planning
MANAGER • Head of Attorney Generall
Department of the State
•Secretary of the Department of
Governme
EXECUTIVE •tSecretary of Administration
OFFICE OF THE
•Holders of Secretaries of State,
PPP PROGRAM with a direct interest in a particular
*
partnership and 02 secretaries of
• Head of the PPP Unit state appointed by the governor
• 02 Coordinators: Economic / Financial and Legal
* Principal Function: Advisory Council to the PPP
Manager

14. Capacity for
implementation PPP’s Projetcs
Request Flow
• Interested Secretariat makes the request for a particular
project
• Preliminary analysis is made by the PPP Unit (focus: the
limit of net current revenue of the project);
• The Council Manager authorizes or not the project
progresses:
• Basis and project modeling with monitoring of the PPP
Unit and the Legal Department of the state of BahIa;
• Final approval by the Manager Council;
• Start of the public consultation and bidding (through the
Stock Exchange of St Paul State - BOVESPA)

15. Capacity for implementation PPP’s Projetcs
Payment Flow
FEDERAL Passing of FPE BANCO DO
GOVERNMENT 1º BRASIL
2º Transfer of
12% of FPE
Contrato (State Law)
STATE 4º
SPE
3º
Current
Surplus Account contract
Specific payment
DESENBAHIA Trusty Banco do
Brasil
 Mechanism that mitigates the risk of default by the State of Bahia. It will
create an account scroll to ensure for three months of payment

16. Capacity for implementation PPP’s Projetcs
State of Bahia
Net Revenue in 2011
In R$ 1.000
19.269.970
3% of Net Revenue
In R$ 1.000
576.809
Balance Available for New
Projects In R$ 1.000 (it will
suport new projects) 373.837

17. NEW PROJECTS
In Analysis:
– Logistics Platform of San Francisco;
• Investiment expected: US$ 100 million
• Government payment expected per year: US$ 5
million
• the project will be located in the municipality of
Juazeiro in the semi arid region of the state
• Social impact of the Platfor, in macroregion of
Juazeiro.: the employment estimate for the
platform is between 992 and 1612 people, related
directly or indirectly, with the logistics activity

18. NEW PROJECTS
3d image of the platform
18

19. NEW PROJECTS
3d image of the platform
19

20. Plataform Configuration
Two types of warehouses with facilities for temperature
control
Type1 Service Center
Deposits of 7 m high and 12 m or 24 m from the front, Truck Center
with 1 or 2 respectively, and a dock door for employees Fruit Distribution Center and Regional
Center for Export (temperature-
Type2 2Deposits of 12 and 45 feet high in front, with 5 controlled storage)
dock high door and one for employees Regional Distribution Center (general
deposit)
Grain Port Terminal
Area planned for the terminal railroad
Two types of conventional warehouses
Type3 3
Deposits of 7 m high and 12 m from the front,
with two docks and a door respectively for
employees
Type4 4
Deposits of 12 and 45 feet high in front, with 5
dock high door and one for employees
20

21. NEW PROJECTS
In Analysis:
– Metro System
• Investment expected: US$ 1,6 billion;
• .Government payment expected per year 40
million
• Government payment expected per year: US$ 35
million for 30 years
• the concession contract includes:construction of
28 km of subway line; purchase of vehicles
and maintenance and operation of the system

22. MAPPING AND METRO STATIONS
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NO S Line 1, part 1 is finished
Arena Fonte Nova
Line 1, part 1
line 1, part 2
line 2
Suburban Train

23. NEW PROJECTS
Under discussion
- Prison system with focus on rehabilitation of the
prisoner;
-PFI of Couto Maia Hospital
- a new contagious infectious disease hospital with 165 beds
- A diagnostic center
Range of activities:
– Building facilities & buying/leasing equipment
– Maintaining facilities and equipment
– Delivering diagnostic services according to contractually
specified performance levels
– The contracts may be established for dialysis, radiotherapy,
and physical rehabilitation centers

24. Jose Sergio Gabrielli de Azevedo
SEPLAN Bahia
Thank you
www.seplan.ba.gov.br