Bahia Basics factsPredictability, good regulation and respect for contracts.
BAHIA | AN OVERVIEW 1st in the Northeast and 4st in Brazil (2011) Population:14 million 6th economy in Brazil (2010) | 4.2% GDP (2011): US$ 93 billionWorld Trade (2011) - Exports + Imports = US$ 18.7 billion - 47% of Northeast and 4% of Brazil
Investment Opportunities in Bahia Economic Outlook
BAHIA | AN OVERVIEW INDUSTRIAL PROFILE | 2011 Greater Salvador GDP (Industry) – US$ million 0 – 40 40 (average) 40 – 140 140 – 240 240 – 340 340 – 3400Source: SEI
• Economic Activities• Spatial Distribution• Five Biomes in one state Fonte: SEI
Fifth GDP among Brazilian States. Some dynamic sectors inMajor investment alternative in Brazil. Bahia Fifth GDP among Brazilian States. Major investment alternative in Brazil.
BAHIA | AN OVERVIEW MAJOR INDUSTRIAL SECTORS Agribusiness Renewable EnergyAutomotive Oil/Gas/Petro chem Mining
OIL / GAS / PETROCHEMICALS Enseada do Paraguaçu Shipyard Private Consortium: Odebrecht/ OAS /UTC / Kawasaki Area of 120 ha US$ 1.25 billion investment In operation: Jan/2014 FPSO and drilling rigs Large cargo and container ships Petrobras will keep building modules for oil rigs at its existing facilities
RENEWABLE ENERGY | WINDPotential at 70m – 15,000 MW 10% of Brazil and 19,3% of NortheastProjects being implemented 2009 – 390 MW; 2010 – 587 MW; 2011 – 414 MW (1st auction) Investments of US$ 3.4 billionProposed projects 1,500 MW awaiting 2nd auction in 2011 20,000 MW under developmentWind power industry Manufacturers in Bahia: ALSTOM GAMESA GENERAL ELECTRIC Other 3 world players under negotiation
RENEWABLE ENERGY | SOLARGreatest potential in Brazil25,000 photovoltaic systems installedIncentives to solar energy Residential consumer (up to 50 kWp) will be allowed to sell energy to the concessionary Roof of the football stadium covered photovoltaic panels. Excess energy being sold to the energy concessionary.
AUTOMOTIVE 5th largest car producer (6.5%) in Brazil | 2010 6th largest exporter of vehicles and car parts in Brazil | 2010 FORD Camaçari 250,000 vehicles/year > 8,700 employees (> 1,000 engineers in production/design) 31 suppliers in Bahia (26 on FORD’s site) One of 5 major FORD RD&I facilities – Designing new ECOSPORT US$ 3 billion new investment - 300,000 cars/year 76% parts produced in Bahia (95% in Brazil) One of the most efficient FORD facilities worldwide JAC Motors 120,000 cars/year + car design and test track 42% of all tire production in Brazil 3 factories (Bridgestone, Pirelli and Continental) 3 motorcycle factories being installed
MININGBahia has one of the greatest mining potentials in BrazilMajor projects Mirabela (in operation) 207,000 t/year of nickel concentrate BAMIN (under implementation) 25 million t/year of iron ore concentrate340 mining companiesgenerated revenues of: US$ 0,7 billion (2009) US$ 1,0 billion (2010)Most important minerals Iron; Gold; Copper; Chromium; Nickel; Gems; and many more…
Greatest unexplored mining potentials in Brazil
INFRASTRUCTURE |Triple Economic Concentration•Espatial (RMS)•Sectorial (Petrochemical)•Capital Owners Fonte: SEI RMS Logistic and transports Infrastructure, railway lines, Ports, and roads is positively correlated with investments foreign entry
INFRASTRUCTURE | HIGHWAYS AND RAILWAYSEnergy | PORTS
INFRASTRUCTURE | PORTSInvestments | US$ 7.8 billionPort of Salvador | US$ 430 million Expansion and modernization| US$ 130 million (under construction) New pier - 375m | US$ 300 million (to be procured)Port of Aratu | US$ 5.1 billion Braskem Consortium | US$ 1.2 billion (under design) Bahia Terminals | US$ 3.5 billion (under design) Federal Government Investments | US$ 400 million (to be procured)Porto Sul Logistics Complex | US$ 2,27 billion Bamin Private Port | US$ 540 million (under design) Public Port (PPP) | US$ 1.2 billion (to be procured) Export Free Zone and Logistics Support Area | U$ 420 million (to be procured) New Ilhéus Airport | US$ 160 million (to be procured)
ELECTRONICS & IT Bahia has an important IT complex (Ilhéus) 52 companies 1.800 jobs 15% of Brazilian production of computers, boards, memories, monitors etc. Tablets already being produced in Bahia by Semp Toshiba Technology Park to include IT companies, such as IBM and Portugal Telecom
EDUCATION AND TECHNOLOGY 9 Universities and Colleges, offering undergraduate and graduate (MSc and DSc) in several areas 51 undergraduate courses in engineering and technology, 44 MSc, 6 DSc and 44 MBA Expansion of the Federal University system in Bahia: Bahia West Federal University (UFOBA) Bahia South University (UFSBA). Expansion of Bahia Federal University (UFBA) to Camaçari Expansion of Recôncavo Baiano Federal University to Feira de Santana Nine new Federal Technology Colleges (IFET) being setup in cities around the state CETIND e CIMATEC - State of the art technology centers for development of RD&I projects as well as technical, undergraduate and graduate formation
WORKFORCE• Bahia houses 9 universities and 17 colleges, which offer undergraduate and graduate courses (MBA, MSc, Ph.D.) in several areas of knowledge;• Ten of these institutions are dedicated to industry and engineering, and offer 51 undergraduate courses, 44 MBA’s, 10 MSc. and 2 Ph.D. courses;• There are also 3 technical colleges, offering 30 courses in industry related subjects;• CETIND and CIMATEC – State of the art facilities for technological R&D and technical workforce formation.
BENEFITS AND INCENTIVESInfrastructure Areas for industrial facilities at prices below market value Availability of water, electricity, gas and telecommunications, as well as road access, at the plant gateTaxes Exemption or reduction of the state tax (12% or 17%) 75% reduction on income tax (Federal Government) Reduction of city taxesFinancing DESENBAHIA (State financing agency) - subsidized interest rates for working capital and for investments up to US$ 50 million; Brazil Northeast Bank – BNB - subsidized interest rates for larger projects. State Government sets priorities for usage of federal funds
GOVERNMENT SERVICES Search and sale of the area for the project Negotiations of tax incentives and relationship with other government areas – Memorandum of Understanding (MOU) Contacts with Desenbahia and BNB on financing Contacts with utilities suppliers (water, electricity, natural gas, IT etc.) Contacts with the Industry and Trade Associations Support through the environmental licensing process
Japan maiores investimentos no Brasil Ten Japão Investments in Brazil – Top
NEW PROJECTSIn 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
MAPPING AND METRO STATIONS LA UR OD EF Ae RE rop ITA ort S São o PIRAJÁ Cri stó vão PIT JUÁ UA ÇU FLA TA MU MB MB PA SSU TR RETIRO OY OR Z RU A AN UG NG AE NSB CA T Y A RO OR B PO DO RT Estádio Pituaçu O NO RA LVO PÓ ACESSO NORTE IM DE RO PE BU A TR DO RN ÍLAP AN VI Á AM BU AS CÔ RI A BR OT BO NO ÉS Line 1, part 1 is finished Arena Fonte Nova Line 1, part 1 line 1, part 2 line 2 Suburban Train
NEW PROJECTS- 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– Dialysis, radiotherapy, and physical rehabilitation centers
Bahia is a new growth engine Source: International Trade Statistics-2011
Jose Sergio Gabrielli de Azevedo Governo do Estado da Bahia Thank you www.seplan.ba.gov.br