Reviews World Economic Forum infrastructure rankings for Brazil, Russia, India and China as well as current programs to increase infrastructure investment.

1. Claret Consulting
BRICS
Infrastructure Trends
15 May 2019

2. 2Claret Consulting
Contents
1. About Claret
2. BRICS Economic Overview
3. WEF Competitiveness Rankings
4. BRICS Current Infrastructure Programs
5. Conclusions
6. Contact Information

3. About Claret

4. 4Claret Consulting
About Claret Consulting

5. BRICS Economic Overview

6. 6Claret Consulting
BRICS Economic Overview
• BRICS are dominated by India & China in terms of population & GDP
growth
• China dominates the group in terms of GDP as the world’s 2nd largest
economy
• India & China also dominate in terms of Investment as % of GDP
• However, there is wide variation among sectors as we will see
GDP Growth Rate GDP in USD
GDP Per Capita
in USD
Investment as
%GDP
Unemployment
rate
Population in
millions
Brazil 1.1 1,868 8,968 15.4 12.3 208
Russia 2.3 1,631 11,327 23.0 4.8 144
India 7.1 2,717 2,036 31.6 na 1,334
China 6.6 13,407 9,608 44.2 3.8 1,395
South Africa 0.8 368 6,377 17.9 27.1 58

7. WEF Competitiveness Rankings

8. 8Claret Consulting
BRICS Competitiveness Rankings
• Only Russia & China are in the Top 50 for Competitiveness
• BRICS score best in Transport Infrastructure, worst in Utility Infra
• For infrastructure, China ranks best overall followed by Russia, India,
South Africa and then Brazil
Country Competitiveness Infrastructure Transport Infra Utility Infra ICT Adoption
Brazil 72 81 84 74 66
Russia 43 51 52 51 25
India 58 63 31 101 117
China 28 29 23 57 26
South Africa 67 64 43 92 85

9. 9Claret Consulting
Surface Transportation Rankings
• South Africa, China and Russia rank among the Top 50 countries for
Road Infrastructure & Road Connectivity
• All BRICS except Brazil rank in the Top 50 for Railroad infrastructure
• China ranks in the Top 50 for all Surface Transportation categories
except Railroad Density
Country Roads
Road
Connectivity Road Quality Railroads Railroad Density
Train Service
Efficiency
Brazil 93 74 112 83 79 97
Russia 35 38 104 47 69 15
India 60 76 51 35 38 26
China 28 17 42 48 58 25
South Africa 27 5 58 44 46 65

10. 10Claret Consulting
Air & Water Transport Rankings
• BRICS generally rank well in Air and Water Transport categories except
for efficiency of services
• China & India rank in the Top 5 for Airport Connectivity
• China is #1 in Shipping Connectivity & #8 in Water Transport
Country Air Transport
Airport
Connectivity
Air Service
Efficiency Water Transport
Shipping
Connectivity
Seaport Services
Efficiency
Brazil 27 17 73 71 47 105
Russia 23 18 52 48 53 45
India 19 4 53 28 28 40
China 20 2 63 8 1 48
South Africa 37 39 34 41 44 51

11. 11Claret Consulting
Utility Infrastructure Rankings
• China & Russia rank with 60+ other countries at 100% electrification
rates
• India stands out as poorest among BRICS for Utility Infrastructure
• No BRICS rank in the Top 50 for Water Infrastructure
Country
Electricity
Infrastructure
Electrification
Rate Electricity Losses
Water
Infrastructure
Exposure to
Unsafe Drinking
Reliability of
Water Supply
Brazil 80 73 96 71 57 78
Russia 56 1 64 53 54 53
India 105 105 110 99 106 74
China 20 1 21 68 75 68
South Africa 98 102 50 94 95 93

12. 12Claret Consulting
ICT Competitiveness Rankings
• Russia ranks among the Top 50 countries for most ICT categories
• India stands out with the worst ICT ranking among the BRICS
Country
Mobile Phone
Subscriptions
Mobile
Broadband
Subscriptions
Fixed Broadband
Internet
Subscriptions
Fiber Internet
Subscriptions Internet Users
Brazil 80 36 63 63 65
Russia 11 51 46 12 49
India 111 116 107 97 103
China 94 45 36 7 82
South Africa 9 66 99 83 78

13. Current Infrastructure Programs

14. 14Claret Consulting
Brazil Investment Partnerships Program
• Aim to award 25 projects valued at more than $2B within the first 100 days
of 2019
• 12 airports ✓awarded for $600M – next round of 22 airports announced
• 10 seaport terminals ✓2 ports awarded for $55M
• North-South Railway ✓awarded for $684M
• Mineral rights for copper, lead and zinc deposits
• Communications PPP project
• Transmission lines ✓ awarded for 3.3B in investments

15. 15Claret Consulting
Russia National Projects Plan
In February 2019, Russia
announced a $400 billion
National Projects plan to up
grade its economy
Funding sources:
• 50% federal budget
• 20% regional budgets
• 30% extrabudgetary

16. 16Claret Consulting
India Infrastructure Budget 2018/9
• $650B for the Green Energy Corridor
• $23B for railways
• $2.5B for universal electrification
• $1.6B for telecoms
• 100 cities are participating in the smart cities mission funded at $32B
• Affordable housing initiatives will deliver 150K new homes
• Tangedco is currently in procurement for a 500MW solar project
• Private equity and venture capital investments in infrastructure reached $2B
in 2018

17. 17Claret Consulting
China Infrastructure Program
• China is increasing infrastructure spending in response to a sustained
economic slowdown
• Major projects include new subway lines in Wuhan and Changchun, an
HSR link between Xian and Yanan and several expressways
• In June 2018, the National Development and Reform Commission reduced
the number of sectors restricted for foreign investment to 48 from 63,
including finance, agriculture and power
• Increased trade tensions may lead to further opening of the Chinese
market for international investors
• In April, China signed $60+ billion in infrastructure projects at the BRI
Summit, showing no slowdown in overseas investment strategy

18. 18Claret Consulting
South Africa
• Eskom: $5B Eskom bailout; $30B in debts; rolling blackouts; cost overruns
on power plants; outdated coal plants; unbundling plan met with protests
• Recent flooding & water shortages highlight environmental risks, need for
infrastructure
• Bright spots: innovation, digitalization entrepreneurship

19. Conclusions

20. 20Claret Consulting
BRICS Infrastructure
• While leaders in some infrastructure rankings, BRICS lag in others,
particularly in utilities and in service efficiency
• India stands out as a laggard across many rankings
• Investment needs are widely known and progress is underway with exciting
programs in all the BRICS, except potentially South Africa
• Further reforms to open infrastructure sectors to foreign investment are
likely to have a positive impact

21. Contact

22. 22Claret Consulting
Contact
Brien Desilets
Managing Director
Claret Consulting
E bdesilets@claretconsult.com
T +1 202 332 1934