Bahia, Brazil is a major investment opportunity with its large economy, strategic location, and dynamic industrial sectors such as automotive, renewable energy, and mining. The state has a population of 14 million, GDP of $93 billion, and exports and imports totaling $18.7 billion in 2011. It offers incentives like tax exemptions, low-cost infrastructure, and financing from state development agencies. Major companies from countries like Japan, China, and Germany have invested over $43 billion from 2007-2015, attracted by Bahia's skilled workforce, economic growth, and pro-business environment.

1. Bahia Investment
Opportunities

2. Bahia Basics facts
Predictability, good regulation and respect for contracts.

3. 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 billion
World Trade (2011) - Exports + Imports = US$ 18.7 billion - 47% of Northeast and 4% of Brazil

4. Investment Opportunities in Bahia
Economic Outlook

5. BAHIA | AN OVERVIEW
INDUSTRIAL PROFILE | 2011
Greater
Salvador
GDP (Industry) – US$ million
0 – 40
40 (average)
40 – 140
140 – 240
240 – 340
340 – 3400
Source: SEI

6. BAHIA | AN OVERVIEW
PRIVATE INDUSTRIAL INVESTMENTS | 2012 - 2015
460
industries
US$ 36 bln
investments
60,000
** Metal products, Wood products, Metallurgy,
jobs
Machinery, Electrical Appliances, Shoes and
Leather, Textiles etc.
Source: SDE/SICM
Investments | 2007-2011 | US$ 7 billion
Total Investments (2007 - 2015) | US$ 43 billion

7. • Economic Activities
• Spatial Distribution
• Five Biomes in one state
Fonte: SEI

8. Fifth GDP among Brazilian States.
Some dynamic sectors in
Major investment alternative in Brazil. Bahia
Fifth GDP among Brazilian States.
Major investment alternative in Brazil.

9. BAHIA | AN OVERVIEW
MAJOR INDUSTRIAL SECTORS
Agribusiness
Renewable Energy
Automotive
Oil/Gas/Petro
chem Mining

10. 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

11. RENEWABLE ENERGY | WIND
Potential at 70m – 15,000 MW
 10% of Brazil and 19,3% of Northeast
Projects being implemented
 2009 – 390 MW;
 2010 – 587 MW;
 2011 – 414 MW (1st auction)
 Investments of US$ 3.4 billion
Proposed projects
 1,500 MW awaiting 2nd auction in 2011
 20,000 MW under development
Wind power industry
 Manufacturers in Bahia:
 ALSTOM
 GAMESA
 GENERAL ELECTRIC
 Other 3 world players under negotiation

12. RENEWABLE ENERGY | SOLAR
Greatest potential in Brazil
25,000 photovoltaic systems installed
Incentives 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.

13. 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

14. MINING
Bahia has one of the greatest mining potentials in Brazil
Major projects
 Mirabela (in operation)
207,000 t/year of nickel concentrate
 BAMIN (under implementation)
25 million t/year of iron ore concentrate
340 mining companies
generated revenues of:
 US$ 0,7 billion (2009)
 US$ 1,0 billion (2010)
Most important minerals
 Iron; Gold; Copper;
 Chromium; Nickel;
 Gems; and many more…

15. Greatest unexplored mining potentials in Brazil

16. 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

17. INFRASTRUCTURE | HIGHWAYS AND RAILWAYS
Energy | PORTS

18. Bahia de Todos os Santos

19. INFRASTRUCTURE | PORTS
Investments | US$ 7.8 billion
Port 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)

20. 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

21. 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

22. 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.

23. BENEFITS AND INCENTIVES
Infrastructure
 Areas for industrial facilities at prices below market value
 Availability of water, electricity, gas and telecommunications,
as well as road access, at the plant gate
Taxes
 Exemption or reduction of the state tax (12% or 17%)
 75% reduction on income tax (Federal Government)
 Reduction of city taxes
Financing
 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

24. 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

25. BAHIA | AN OVERVIEW
PRIVATE INDUSTRIAL INVESTMENTS | COUNTRY OF ORIGIN
China Spain France
Agribusiness, Renewable Energy Renewable Energy,
Automotive, Mining Chemicals
USA Alemanha Switzerland
Agribusiness, Renewable Energy, Agro-industry,
Renewable Energy,
Automotive Renewable Energy
Chemicals,
Automotive, Cosmetics
Italy Mexico Australia
Metal-mechanic, Agribusiness, Mining
Renewable Energy, Chemicals
Chemicals,
Automotive, Furniture,
Leather
Portugal Netherlands Belgium
Textiles, Chemicals, Agribusiness, Renewable Energy,
Construction Chemicals Chemicals

26. BAHIA | AN OVERVIEW
PRIVATE INDUSTRIAL INVESTMENTS | COMPANIES

27. Japan Investments in Brazil

28. Japan maiores investimentos no Brasil Ten
Japão Investments in Brazil – Top

29. 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

30. MAPPING AND METRO STATIONS
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Line 1, part 1 is finished
Arena Fonte Nova
Line 1, part 1
line 1, part 2
line 2
Suburban Train

31. 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

32. Bahia is a new growth engine
Source: International Trade Statistics-2011

33. Jose Sergio Gabrielli de Azevedo
Governo do Estado da Bahia
Thank you
www.seplan.ba.gov.br