Brazil's Economic Outlook and Infrastructure Investment Opportunities
1. Brazil’s economic outlook and
infrastructure
investment opportunities
September | 2013
B R A Z I L I A N
Ministry of
Finance
G O V E R N M E N T
2.
3. Ministry
of Finance
Summary
Foreword
5
Economic Outlook
Economic Development and Demand for Infrastructure
Capital Market Instruments
Highways
Railways
Ports
Airports
Oil and Gas
Electricity
7
33
45
53
65
79
83
93
101
Appendix – Main types of business organizations in Brazil
Useful Links
Glossary
121
126
128
3
4.
5. Ministry
of Finance
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.
Foreword
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
until 2017 for the generation of 33,000 MW (from hydropower, wind power and other sources) and the installation of
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 (quarterover-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
5
6. Ministry
of Finance
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
been growing at an annual rate of over 6 percent in the last five years. Brazil’s banks and financial markets are among
the soundest and most dynamic in the world. International reserves of around US$ 370 billion vis-à-vis short term
foreign debt of US$ 40 billion give monetary authorities the capacity to intervene if necessary. In 2012, foreign direct
investment inflows to Brazil were US$ 65.3 billion, the fourth largest in the world. In the first half of 2013, FDI inflows
amounted to US$ 30 billion.
Foreword
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.
6
8. Ministry
of Finance
The world economy in the second quarter of 2013
GDP, QoQ seasonally adjusted annual rate, in % change, second quarter 2013
1.2
1.7
Canadá
Canada
Euro
area
2.5
United
kingdom Germany
France 2.9
2.9
1.9
-1.2
Russia
8.5
Italy
Turkey
2.3
China
India
-2.9
3.8
7.0
Economic Outlook
-1.3
USA
-1.0
Japan
South
4.5 Korea
Mexico
5.6
6.0
2.0
Brazil
3.0
2.4
Australia
Chile
Below or equal to 3%
Above 3%
Indonesia
South Africa
Source: International Monetary Fund
(IMF) and Bloomberg
Produced by: Ministry of Finance
8
9. Ministry
of Finance
Slow recovery of advanced economies and China
Purchasing Managers Index (PMI), manufacturing, in points
55.7
51.2
51.1
20
13
Se
p
20
13
Ja
n
Ju
l2
01
2
20
12
Ja
n
Ju
l2
01
1
Ja
n
20
11
China
Ju
l2
01
0
20
10
Euro Zone
Ja
n
20
09
Au
g
USA
Economic Outlook
60
58
56
54
52
50
48
46
44
42
40
Source: ISM (for USA) and HSBC/Markit
Produced by: Ministry of Finance
9
10. Ministry
of Finance
United States recovery: a double-edged sword
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.
4.0
Economic Outlook
3.5
3.0
2.5
2.69
2.0
1.5
13
Source: Bloomberg
Produced by: Ministry of Finance
18
Se
p
20
13
20
Ja
n
12
20
Ja
n
Ja
n
20
11
1.0
10
11. Ministry
of Finance
The long term appreciation of the Brazilian real has been partially reversed in 2013
Nominal exchange rate, in U.S. dollar/national currency, index (January 2007 = 100)
150
Economic Outlook
120
Brazil
South
Africa
Mexico
90
94.1
85.8
India
Turkey
20
13
Se
p
3
Source: Bloomberg
Produced by: Ministry of Finance
17
20
1
Ja
n
2
20
1
Ja
n
1
20
1
Ja
n
0
20
1
Ja
n
9
20
0
Ja
n
8
20
0
Ja
n
Ja
n
20
0
7
60
72.9
70.8
69.7
11
12. Ministry
of Finance
Volatility did not affect the capital account of the balance of payments
In US$ million
2012
July
Jan-July
-3,746
8,307
7,509
8,440
1,343
-588
-28,990
53,580
42,240
38,169
3,707
7,537
-9,018
9,315
4,019
5,212
3,898
1,418
-52,472
58,902
41,259
35,239
17,981
-437
2013
Estimate*
-75,000
83,000
65,000
Economic Outlook
Current Account
Financial Account
Direct Investment (net)
FDI
Portfolio Investment
Other Investments
2013
July
Jan-July
* Central Bank of Brazil estimate
Source: Central Bank of Brazil
Produced by: Ministry of Finance
12
14. Ministry
of Finance
Public sector net debt drops consistently and stable gross debt
Public Sector
Net Debt
60
55
58.0
57.4
60.9
58.7
53.4
50
59.4
Economic Outlook
56.4
35.2
General
Government
Gross Debt
65
34.1
Public sector net debt and General government gross debt, in % of GDP
54.2
45
36.4
39.2
42.1
38.5
45.5
47.3
48.4
50.6
35
54.8
60.4
40
*
13
20
12
20
11
20
10
20
09
20
08
20
07
20
06
20
05
20
04
20
03
20
20
02
30
* July 2013
Source: Central Bank of Brazil
Produced by: Ministry of Finance
14
15. Ministry
of Finance
Brazil’s international reserves in a comfortable situation
International reserves, in US$ billion (July 2013)
3,500
1,200
36
39
46
56
62
72
93
104
106
168
252
330
374
480
685
1,188
300
3,497
600
a
iA
ra n
bi
a
**
Ru
ss
ia
**
*
Br
az
il
Ko
re
a
In
di
a
M
ex
ic
o
Ca
na
da
Tu
r
In key
do
Ge nes
Un
ia
r
ite ma
ny
d
Ki
ng **
do
m
Fr
*
an
ce
Au
**
st
ra
lia
So
**
ut
h
Af
ric
a
I ta
ly
**
ud
Ja
p
Source: Bloomberg
Produced by: Ministry of Finance
Sa
Ch
i
na
*
0
* June 2013
** May 2013
*** January 2013
Economic Outlook
900
15
16. Ministry
of Finance
Brazil’s international reserves 58% above annual imports
Reserves-to-imports of goods ratio, in %, July 2013
200
Economic Outlook
150
43%
42%
Tu
rk
ey
co
ex
i
M
ne
s
do
In
So
Af uth
ric
a
44%
49%
ia
56%
a
di
In
150%
**
ss
ia
l*
Ru
Ch
i
na
**
0
Br
az
i
185%
50
158%
100
* August 2013
** June 2013
Source: Bloomberg
Produced by: Ministry of Finance
16
17. Ministry
of Finance
Brazil’s international reserves much above external debt levels
Reserves-to-short term external debt ratio, in %, March 2013
1,000
800
Economic Outlook
600
400
200
952%
572%
462%
303%
232%
229%
108%
167%
92%
Tu
rk
ey
nt
in
a
Ar
ge
S
Af out
ric h
a
co
ex
i
M
ne
si
a
In
do
a
In
di
Ch
in
a
a
ss
i
Ru
Br
az
il
0
Source: Bloomberg and International
Monetary Fund (IMF)
Produced by: Ministry of Finance
17
18. Ministry
of Finance
Brazil’s international reserves have not been changed even under international uncertainty
International reserves, in US$ billion
400
US$ 373.6 bn
375
Economic Outlook
350
325
13
Source: Central Bank of Brazil
Produced by: Ministry of Finance
12
Se
p
20
20
13
Au
g
l2
01
3
Ju
13
20
n
Ju
20
13
M
ay
20
13
Ap
r
13
M
ar
20
13
20
Fe
b
Ja
n
20
13
300
18
19. Ministry
of Finance
The role of derivatives in Brazil: second largest market for interest-rate options and futures
In billions of U.S. dollars and millions of contracts
US$ Billion
Number of
contracts traded
in 2012 (millions)
30,000
20,000
25,000
Brazil / BVMF*
25,212
501
Mexico /Mexder
241
31
Russia / Moscow Ex
58
21
15,000
South Africa / JSE
38
3
10,000
Singapore / SGX
0
1
India / NSE-BSE-MCX
0
0
Malaysia / Bursa Malaysia
0
0
China**
0
0
Turkey***
0
0
25,212
241
5,000
58
38
0
ut
h
Af
r
ic
a
Tu
rk
ey
**
*
ia
ss
So
Ru
ex
i
M
Br
az
i
l*
co
0
* For Brazil, indicators only include
futures and options operations
** In China, currency derivatives are not
traded (FX restriction)
*** Turkdex Annual Market
Statistics (Annual Fact Book 2012)
Economic Outlook
Financial volume
traded in 2012
(US$ billion)
Source: World Federation of Exchanges
Produced by: Ministry of Finance
19
20. Ministry
of Finance
Sixth largest market for currency options and futures
In billions of U.S. dollars and millions of contracts
437
413
South Africa / JSE
15
17
Mexico /Mexder
100
98
Turkey / Turkdex ***
Af
ric
co
So
ut
h
éx
i
ia
M
ss
-
a
0
Ru
Singapore / SGX
di
-
a
Tu
rk
ey
**
*
-
0
In
0
China **
0
il*
1
1,000
Br
az
13
Malaysia / Bursa
Malaysia
2,000
13
Russia / Moscow Ex
3,000
15
868
100
4,727
821
437
4,525
4,000
* For Brazil, indicators only include
futures and options operations
** In China, currency derivatives
are not traded (FX restriction)
*** Turkdex Annual Market
Statistics (Annual Fact Book 2012)
Economic Outlook
Brazil / BVMF*
India / NSE-BSE-MCX
US$ Billion
5,000
821
Country
Number of contracts (in millions)
traded in the same basis
(if contracts were all of USD 1,000)
4,525
Currency Options and Futures
Financial volume
traded in 2012
(US$ billion)
Source: World Federation of Exchanges
/ Futures Industry Association Magazine
March 2013
Produced by: Ministry of Finance
20
21. Ministry
of Finance
In Brazil, the large market for foreign exchange derivatives
stimulates companies to use currency hedging
Foreign exchange derivative transactions over spot transactions, in %
101%
134%
an
Ja
p
ss
ia
136%
Ru
tr
al
ia
137%
Au
s
138%
co
ex
i
Eu
ro
161%
a
M
ad
161%
Ca
n
ob
al
175%
Gl
178%
Un
ite
d
do
m
St
at
es
207%
ite
d
Ki
ng
Af
r
ic
a
231%
ut
h
So
Source: Bank for International
Settlements (BIS)
Produced by: Ministry of Finance
Un
252%
247%
a
Ko
re
a
di
In
347%
419%
il
Tu
rk
ey
Ch
in
a
Br
az
200
150
100
50
0
Economic Outlook
450
400
350
300
250
21
22. Ministry
of Finance
G20 emerging markets external sector
Current account, in % of GDP, second quarter of 2013
2.4
-1.9**
a*
a*
-5.8
Af
ric
di
h
ut
So
a
In
do
ne
si
il
Br
az
co
ex
i
M
na
Ch
i
*
ia
ss
Ru
-5.1
-5.9
Tu
rk
ey
*
-3.3
-3.2
In
-1.3
9.5-
3.0
Economic Outlook
4
3
2
1
0
-1
-2
-3
-4
-5
-6
-7
* First quarter 2013
** Excluding the oil account, the
Brazilian current account deficit would
be 1.9% of GDP. There was a temporary
delay in the register of the 2012
imports and there were several stops
for maintenance in Petrobras platforms.
Additionally, delays in the start of new
producing systems in the last few years
and existing problems in the post-salt
systems resulted in a slowdown in the
domestic extraction of oil and gas since
2010. All these factors that interfered
in the Brazilian trade balance will start
to improve significantly in the second
half of 2013. Ten new platforms will be
starting operations in 2013/2014, and
several others will start operations in
the following years, doubling production
until 2020, according to EIA estimate
Source: Bloomberg
Produced by: Ministry of Finance
22
23. Ministry
of Finance
Oil and gasoline accounted for a large part of the decrease in trade surplus
Trade balance, total and ex-oil, in US$ billion
40
30
Economic Outlook
20
Total
balance
Total balance
ex-oil and other
oil products
10
4.5
20
13
*
19.4 26.0
20
12
29.8 26.2
20
11
20.2 19.5
20
10
20
09
0
25.3 12.5
19.3
* On a 12-month basis up to July 2013
Source: Ministry of Development,
Industry and Trade (MDIC)
Produced by: Ministry of Finance
23
24. Ministry
of Finance
Despite difficulties, investments are recovering in Brazil
Gross fixed capital formation, seasonally adjusted, in % QoQ
5
4
Economic Outlook
3
2
1
1.5
0
-1
-2
4.7
3.6
Source: Brazilian Institute of Geography
and Statistics (IBGE)
Produced by: Ministry of Finance
-1.4
3Q 2012
4Q 2012
1Q 2013
2Q 2013
24
25. Ministry
of Finance
Inflation within the target range since 2004
Broad Consumer Price Index (IPCA), in % YoY
IPCA
Economic Outlook
Upper
Bound
Target
core
13
*
5.8
20
12
5.8
20
11
6.5
20
10
5.9
20
09
4.3
20
08
5.9
20
07
4.5
20
06
3.1
20
05
5.7
20
04
7.6
20
03
9.3
20
02
12.5
20
01
7.7
20
00
6.0
20
19
99
8.9
Lower
Bound
* Average forecast for 2013, according
to the Central Bank of Brazil market
research on September 6, 2013
Source: Brazilian Institute of Geography
and Statistics (IBGE) and Central Bank
of Brazil
Produced by: Ministry of Finance
25
26. Ministry
of Finance
G20 emerging markets inflation
Consumer price index, in % YoY, August 2013
12
10
6
8.8
10.7
**
In
di
a
Source: Bloomberg
Produced by: Ministry of Finance
In
do
ne
si
a
8.2
Tu
rk
ey
6.5
a
si
a
ic
Af
r
ut
h
* July 2013
** June 2013
So
Ru
s
6.4
*
6.1
il
Br
az
3.5
co
ex
i
M
na
0
Ch
i
2
2.5
4
Economic Outlook
8
26
27. Ministry
of Finance
Sound financial system
In %, latest available data
Basel Index (Capital Adequacy)
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
Net Assets/
Short-term Liabilities
Brazil 183.1
Germany 140.8
South Korea 111.3
Russia 87.6
Italy 80.1
USA 77.4
Turkey 76.4
Canada 56.3
Japan 51.3
Mexico 47.3
Australia 43.5
United Kingdom
38.0
South Africa
33.0
India
27.0
10.0
9.0
2.8
0.6
Economic Outlook
Germany
Turkey
Brazil
Mexico
Canada
South Africa
United Kingdom
USA
France
South Korea
Japan
Russia
Italy
India
Australia
Spain
(Provisions minus
Delinquencies)/Capital
Brazil
Mexico
Argentina
Chile
-3.1
South Korea
-3.1
Turkey
-5.9
Canada
-9.9
Russia
-12.1
India
-14.7
USA
-15.5
Australia
-16.1
United Kingdom
-19.4
France
-21.4
Japan
-23.6
South Africa
-27.6
Spain
-73.7
Italy
Source: International Monetary Fund
(IMF) - Fiscal Soundness Indicators
Produced by: Ministry of Finance
27
28. Ministry
of Finance
Real estate loans have still huge opportunities of expansion in Brazil
Real estate loans, annual growth rate, in %
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
70
60
40
Economic Outlook
50
34.0
30
20
10
3
01
Ju
l2
13
20
2
Ja
n
01
Ju
l2
12
Ja
n
20
1
01
l2
Ju
11
20
0
Ja
n
01
l2
Ju
10
20
9
Ja
n
00
Ju
l2
09
Ja
n
20
8
00
l2
Ju
M
ar
20
08
0
Source: Central Bank of Brazil
Produced by: Ministry of Finance
28
29. Ministry
of Finance
Brazil presents sound fiscal accounts
Budget balance, in % of GDP
Primary Results
Brazil
2006-2008
2010-2013*
Nominal Result
2006-2008
2010-2013*
-2.8
-2.5
-1.5
Asia
-1.5
United States
-1.9
-7.1
Latin America
-1.1
-2.3
Euro Zone
-1.4
-4.2
Asia
-1.6
-3.0
United States
-3.8
-9.0
1.2
0.0
Economic Outlook
Euro Zone
Brazil
3.0
1.3
Latin America
3.3
2.6
* IMF estimates
Source: International Monetary Fund
(IMF) - Fiscal Monitor and
Central Bank of Brazil
Produced by: Ministry of Finance
29
30. Ministry
of Finance
Confidence: low spreads for sovereign bonds
10-year Brazilian Global bonds* and U.S. Treasury yields, in % per annum
7.0
6.1
Brazilian
sovereign bonds
5.8
5.6
4.2
3.0
2.4
2.8
4.2
3.1
3.9
3.6
3.3
4.5
Economic Outlook
5.0
4.8
3.4
2.7
U.S. Treasuries
2.8
1.6
1.9
1.8
1.4
* Yields at issue date
13
M
ay
20
12
Source: National Treasury Secretariat
(STN)
Produced by: Ministry of Finance
9
5
Se
p
20
Ja
n
20
12
1
3
7
Ju
l2
01
0
Ju
l2
01
10
20
Ap
r
15
z2
De
15
27
9
00
09
20
ay
M
7
6
Ja
n
20
09
0.0
30
31. 0
Ju 07
l2
0
No 07
v
20
0
M
ar 7
20
Ju 08
l2
0
No 08
v
20
0
M
ar 8
20
Ju 09
l2
0
No 09
v
20
0
M
ar 9
20
Ju 10
l2
0
No 10
v
20
1
M
ar 0
20
Ju 11
l2
0
No 11
v
20
1
M
ar 1
20
Ju 12
l2
0
No 12
v
20
1
M
ar 2
20
Ju 13
l2
01
3
ar
2
2.1
2.0
2.7
2
1.8
4
5.5
5.3
5.1
5.0
5.2
4.9
4.7
4.5
6.9
6.6
6.7
6.5
6.4
6.6
6.9
7.1
6.8
6.7
6.4
6.3
6.2
7.8
7.5
7.7
7.6
8.4
8.4
8.8
8
7.2
6
5.9
10.0
9.9
11.5
11.5
11.5
11.3
11.4
11.4
11.8
11.4
11.3
11.8
11.6
11.3
12.2
12.3
12.3
12.1
11.9
11.9
11.4
11.4
11.3
14
13.7
14.5
14.4
14.6
14.8
14.3
14.4
13.9
13.8
13.4
13.3
13.2
12
11.1
10.6
10.6
10.2
9.8
11.2
10
9.7
15.5
16
0
Economic Outlook
M
Ministry
of Finance
Increasing number of non-resident investors in Brazilian public debt
Non-resident share in federal public debt, in % of total DFPD*
18
15.5
* Domestic Federal Public Debt
Source: National Treasury Secretariat
(STN)
Produced by: Ministry of Finance
31
34. Ministry
of Finance
Domestic market: dynamism of retail sales
Broad retail sales, seasonally adjusted, in % YoY
15
12
5.8
*
13
20
8.0
12
20
6.6
11
20
12.2
10
20
6.8
09
20
9.9
08
20
13.6
07
20
6.4
06
20
3.1
05
20
04
0
20
3
11.1
6
* On a 12-month basis up to July 2013
Economic Development and
Demand for Infrastructure
9
Source: Brazilian Institute of Geography
and Statistics (IBGE)
Produced by: Ministry of Finance
34
35. Ministry
of Finance
Sustainable labor market ensures dynamic domestic demand
New formal jobs, in millions
3.0
19.90 million jobs
2.5
1.5
For 2012 and 2013, updates after the
official release date were taken into
consideration
1.0
* January to July 2013
Source: Ministry of Labor and
Employment
Produced by: Ministry of Finance
13
0.9
20
12
1.3
20
11
2.2
20
10
2.9
20
09
1.8
20
08
1.8
20
07
2.5
20
06
1.9
20
05
1.8
20
04
1.9
20
03
0.9
20
02
1.5
20
01
1.0
20
00
1.2
20
99
0.5
19
98
0.4
19
97
0.3
19
19
19
0.1
96
0.1
95
0.0
*
0.5
Economic Development and
Demand for Infrastructure
2.0
35
36. Ministry
of Finance
Increasing demand for infrastructure services: airline passengers
Airline traffic, in millions of passengers
120
2002-2012: 182.3% growth
100
Economic Development and
Demand for Infrastructure
80
60
101.4
12
20
92.6
11
20
77.2
10
20
62.8
09
20
56.0
08
20
52.1
07
20
47.7
06
20
44.1
05
20
35.7
04
20
33.4
03
20
35.9
02
20
36.0
01
20
00
0
20
20
34.0
40
Source: National Agency for Civil
Aviation (ANAC)
Produced by: Ministry of Finance
36
37. Ministry
of Finance
Growing external trade
Brazilian trade flow (exports plus imports), in US$ billion
500
2002-2012: 332.4% growth
400
* 474.7
13
12 465.7
20
20
11 482.3
10 383.7
20
09 280.7
20
08 370.9
20
07 281.3
20
20
06 229.2
05 192.1
20
04 159.5
20
03 121.5
20
02 107.7
20
20
01 113.9
00 111.0
20
99 97.2
20
98 108.8
19
97 112.7
19
19
19
0
19
95 96.4
100
96 101.0
200
* On a 12-month basis
up to August 2013
Economic Development and
Demand for Infrastructure
300
Source: Ministry of Development,
Industry and Foreign Trade (MDIC)
Produced by: Ministry of Finance
37
38. Ministry
of Finance
Significant growth in port trade volume
Total cargo handling in ports, in millions of tons
2003-2012: 58.4% growth
950
900
Economic Development and
Demand for Infrastructure
850
800
750
902.9
*
13
20
904.0
12
20
885.6
11
20
833.9
10
20
732.9
09
20
768.3
08
20
754.7
07
20
692.8
06
20
649.4
05
20
03
500
20
550
04
600
20
570.8
650
620.7
700
* On a 12-month basis up to March 2013
Source: National Agency for Water
Transportation (ANTAQ)
Produced by: Ministry of Finance
38
39. Ministry
of Finance
Vehicular traffic
In thousand vehicles per km per year, on highways under concession
2002-2012: 86.6% growth
120
100
60
111
*
13
20
105
12
11
20
10
20
09
20
08
20
07
20
06
20
05
20
04
20
03
20
02
20
01
20
20
00
0
20
99
89
69
60
69
67
65
61
56
57
51
20
43
40
* Estimate based on monthly
average up to August 2013
Economic Development and
Demand for Infrastructure
80
Source: Brazilian Association of
Highway Concessionaires (ABCR)
Produced by: Ministry of Finance
39
40. Ministry
of Finance
Vehicle sales more than doubled in ten years
New vehicles (buses, trucks, light commercial vehicles and cars), in million of vehicles
4.0
2002-2012: 153.5% growth
4th largest vehicle
market in the world
3.5
2.5
2.0
1.5
3.8
20
13
*
3.8
12
20
3.6
11
20
3.5
10
20
3.1
09
20
2.8
08
20
2.5
07
20
1.9
06
20
1.7
05
20
1.5
04
20
1.4
03
20
02
0.0
20
0.5
1.5
1.0
* On a 12-month basis
up to August 2013
Economic Development and
Demand for Infrastructure
3.0
Source: Brazilian Association of
Automotive Vehicle Manufacturers
(ANFAVEA)
Produced by: Ministry of Finance
40
41. Ministry
of Finance
Railroad volumes
Revenue tonne kilometers (RTKs), in billions
2002-2012: 77.4% growth
300
Economic Development and
Demand for Infrastructure
266
232
298
12
20
291
11
20
278
10
20
244
09
20
271
08
20
258
07
20
232
06
20
221
05
20
203
04
20
03
20
02
20
130
168
164
182
198
Source: National Transportation
Agency (ANTT)
Produced by: Ministry of Finance
41
42. Ministry
of Finance
Brazilian harvest in record figures
Brazilian grain harvest*, in millions of tons
210
187.1
190
170
150
130
135.1
144.1
166.2
149.3
122.5
*
/2
0
13
*
12
12
/2
0
* Preliminary data:subject to change by
Conab/MAPA
** Conab estimates in September 2013
20
11
20
11
/2
0
0
20
10
01
9
9/
2
20
0
00
8
8/
2
20
0
7/
2
00
07
20
0
/2
0
06
20
06
/2
0
20
05
20
04
/
20
05
4
00
3
3/
2
00
2/
2
20
0
00
2
96.8
1/
2
20
0
0/
2
00
1
70
114.7
119.1
20
0
110 100.3
90
20
0
131.8
123.2
Economic Development and
Demand for Infrastructure
162.8
Source: Ministry of Agriculture,
Livestock and Food Supply (MAPA)
Produced by: Ministry of Finance
42
43. Ministry
of Finance
Agricultural leadership
Brazil in the global ranking, by production and exports quantities, 2011
Exporter
Coffee
1
1
Processed beef
1
1
Orange Juice
1
1
White sugar
2
1
Chicken
2
1
Tobacco
2
1
Soybean
2
2
Beans
2
16
Corn
3
3
Economic Development and
Demand for Infrastructure
Producer
Source: Food and Agriculture
Organisation (FAO)
Produced by: Ministry of Finance
43
46. Ministry
of Finance
Financial Instruments for Infrastructure Investments
How can non-resident investors negotiate debt securities and funds in Brazil?
CMN Resolution 2,689 of year 2000, which rules on investments by non-resident investors in
the financial and capital markets of investment, provides all necessary information
• More Info:
Capital Market Instruments
CMN Resolution 2,689
https://www3.bcb.gov.br/normativo/
detalharNormativo.do?method=deta
lharNormativo&N=100014927
Brazil does not impose taxes
on the international remittance of profits and dividends
Produced by: Ministry of Finance and
Brazilian Development Bank (BNDES)
46
47. Ministry
of Finance
Financial Instruments for Infrastructure Investments
• Debêntures de Investimento e Certificados de Recebíveis Imobiliários (CRI)
Definition
Investment Debentures and
Real Estate Receivables Certificates
Benefits for
non-resident investors*
• Zero Income Tax Rate (IR)
• Zero Tax on Financial Operations (IOF)
Minimum Requirements
* In case of investments from countries
which are not subject to a 20% (or higher)
income tax rate (“tax havens”), the above
mentioned tax benefits do not apply,
unless it is related to a wealth fund
Capital Market Instruments
• Weighted average maturity: over four years.
• Return: CRI pays 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).
• Simplified procedure: to demonstrate the purpose of
allocating resources into the future payment or reimbursement
of expenses, costs or liabilities related to investment projects,
including those aimed at R&D&I (research, development and
innovation).
• No resale commitment: undertaken by the buyer.
• Yield payment frequency: if any, it must be at least 180
days apart.
Produced by: Ministry of Finance and
Brazilian Development Bank (BNDES)
47
48. Ministry
of Finance
Financial Instruments for Infrastructure Investments
• Fundos de Investimento em Direitos Creditórios (FIDC)
Definition
Benefits for non-resident investors*
Investment Fund in
Credit Rights
• Zero Income Tax Rate (IR)
• Zero Tax on Financial
Operations (IOF)
Minimum Requirements
Capital Market Instruments
• Term of duration: minimum of six years.
• No payment, fully or partially: of principal of the Fund’s quotas in the first two years from the
closing date of the public offering of the quota distribution that constitute the initial assets of the
Fund, except in cases of the Fund’s early liquidation mentioned in the Fund’s regulation.
• No acquisition of quotas: by the seller or by the issuer or by any parties related to them, except
in case of subordinated quotas for purposes of amortization and withdrawal.
• Amortization plan of quotas: including those from incorporated yields, if any, must be at least
180 (one hundred and eighty) days apart.
• Required evidence documents: quotas must be admitted to trading on an organized securities
market or registered with a registry system duly authorized by the Central Bank of Brazil or the
Brazilian Securities and Exchange Commission (CVM) under their respective jurisdiction.
• Simplified procedure: to demonstrate the purpose of allocating resources into a transaction of
investment projects, including those aimed at R&D&I.
• Mandatory presence of the following: in the assignment agreement, regulation and prospectus, if any, in a manner to be determined by CVM:
• Goal of the project or the beneficiary projects;
• Estimated beginning and end periods or, for ongoing projects, description of the current stage
and estimated end period;
• Estimated volume of financial resources required to carry out the project or not initialized
projects or for the completion of ongoing projects;
• Estimated percentage of funds to be raised with the selling of the credit rights compared to
the financial resource requirements of the beneficiary projects.
• Fund’s equity: consists of at least 85% (eighty-five) percent of credit rights and, for the remaining
portion, of federal government securities, repurchase agreements backed by government bonds or
mutual fund quotas that invest in federal government bonds.
* In case of investments from countries
which are not subject to a 20% (or
higher) income tax rate (“tax havens”),
the above mentioned tax benefits do not
apply, unless it is related to a wealth fund
Produced by: Ministry of Finance and
Brazilian Development Bank (BNDES)
48
49. Ministry
of Finance
Financial Instruments for Infrastructure Investments
• Debêntures de Infraestrutura
Benefits for nonDefinition -resident investors*
Infrastructure
Debentures
Minimum Requirements
Capital Market Instruments
• Zero Income Tax Rate (IR) • Issuance: must be between January 2011 and December 2015.
• Weighted average maturity: over four years.
• Zero Tax on Financial
Operations (IOF)
• 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).
• Simplified procedure: to demonstrate the purpose of allocating resources into the future payment or reimbursement of expenses, costs or liabilities related to investment projects, including those aimed at R&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:
• Logistics and transportation • Broadcasting
• Urban mobility
• Basic sanitation and
• Energy
• Irrigation
• Telecommunications
• Specific Purpose Companies (SPE): for management and implementation.
• Issuer: dealer or grantee or authorized contractors or lessee.
* In case of investments from
countries which are not subject
to a 20% (or higher) income tax
rate (“tax havens”), the above
mentioned tax benefits do not apply,
unless it is related to a wealth fund
Produced by: Ministry of Finance and
Brazilian Development Bank (BNDES)
49
50. Ministry
of Finance
Financial Instruments for Infrastructure Investments
• Fundos de Debêntures Incentivados
Definition
Brazilian Infrastructure
Bonds Investment Funds
Benefits for
non-resident investors*
• Zero Income Tax Rate (IR)
• Zero Tax on Financial Operations (IOF)
Minimum Requirements
• Concentration in investments: must hold at least 67% (sixty-seven) percent of the Fund’s net worth within the first two years
and 85% (eighty-five) percent in the remaining years.
• Fund of Funds (FIC) investments: must hold at least 95%
(ninety-five) percent of FIC net worth in the Infrastructure Bonds
Investment Fund’s quota.
Produced by: Ministry of Finance and
Brazilian Development Bank (BNDES)
Capital Market Instruments
50
51. Ministry
of Finance
Financial Instruments for Infrastructure Investments
• More Info (useful links):
CMN Resolution 3,974 of
year 2011
http://www.planalto.gov.br/
ccivil_03/_Ato2011-2014/2011/Lei/
L12431.htm
http://www.bcb.gov.br/pre/normativos/res/2011/pdf/res_3947_v1_O.
pdf
Law 12,715 of year 2012
Decree 7,632 of year 2011
http://www.planalto.gov.br/
ccivil_03/_Ato2011-2014/2012/Lei/
L12715.htm#art71
Decree 7,632/11
http://www.planalto.gov.br/
ccivil_03/_Ato2011-2014/2011/
Decreto/D7632.htm
Brazilian Financial and
Capital Markets Association
http://portal.anbima.com.br/Pages/
home.aspx
Produced by: Ministry of Finance and
Brazilian Development Bank (BNDES)
Capital Market Instruments
Law 12,431 of year 2011
51
54. Ministry
of Finance
Highway Concessions
Belém
MA
PA
Açailãndia
Parnamirim
Maceió
BR-153
Palmas
MT
Feira de Santana
Salvador
Lucas do Rio Verde
Campo
Grande
9
8
SP
PR
Mafra
SC
RS
Rio Grande
Porto Seguro
1
2
0
BR
-26
2
Estrela
D’Oeste
Maracaju
BR
-04
BR-050
5
BR-153
GO
BR-163
MS
3
MG
0
-06
BR
Highways
Divisa Alegre
Brasília
Anápolis
Goiânia
01
BR-1
Uruaçu
7
Cuiabá
Aracaju
BA
6
BR-116
BR-163
Sinop
Recife
PE
TO
Belo
Horizonte
Mucurí
4 ES
BR-262
Vitória
Juíz de Fora
Rio de
Janeiro
São Paulo
Santos
Além Paraíba
Campos
1
2
3
4
5
6
7
8
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
Highways
Updated information available at
www.logisticsbrazil.gov.br
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
54
55. Ministry
of Finance
Road Concession – BR-050: from Cristalina (GO) (BR-040 entry point) to MG/SP border
Object
Demand
• Section: BR-050, Entry Point of BR040/GO (Cristalina) – Border w/ MG/SP
Demand Projection (AADT):
2014 (54,232), 2019 (62,790), 2024
(76,046).
• Total Length: 426 km
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.
• 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.
Palmas
MT
BA
BR-153
BR-060
GO
Brasília
Goiânia
Cristalina
Catalão
Uberlândia
Uberaba
MS
MG
ES
BR-040
SP
BR-050
Vitória
RJ
Rio de Janeiro
São
Paulo
PR
Curitiba
Highway BR-050 GO/MG
To be awarded
Auction Concluded
on September 18th
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: Stateowned EPL is in charge of obtaining
Previous License (LP) and Installation
License (LI) of duplication works
* Without benefits and indirect
expenses
** TJLP - Long Term Interest Rate,
currently 5% p.a.
*** Special Purpose Entity
Highways
TO
Criteria
Term: 30 years
Criteria: lowest tariff
In the first half of September 2013,
the average exchange rate was
approximately US$ 1 = R$ 2.30
Updated information available at
www.logisticsbrazil.gov.br
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
55
56. Ministry
of Finance
Road Concession – BR-040: Brasília (DF) – Juiz de Fora (MG)
Object
Demand
• Section: BR-040, Juiz de Fora (MG) – Entry Demand Projection: under study
point of BR-251 (Brasília - DF)
Connects two important economic
• Total Length: 937 km
centers in Brazil - Rio de Janeiro and
Belo Horizonte - to the fourth most
• Length to be widened: 715 km
populous city and the highest GDP
The project includes widening, maintenance per capita in the country - Brasilia.
and operation of the highway. Other
It is the main route for supply of
widening projects are also planned to
coal to steel parks.
happen, including the construction of side
roads between Luziania and Brasilia.
Brasília
Luziânia
BR-040
MG
Sete Lagoas
Belo Horizonte
ES
SP
BR-381
Juiz de Fora
RJ
Rio de
Janeiro
São Paulo
PR
Curitiba
Granted Section
180 Km
Highway BR-040
MG/GO/DF
To be awarded
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.
Debt to equity ratio: up to 70% / 30%
Equity support: up to 49% of SPE**
or holding’s share capital
(Institutions: public banks and
pension funds)
Environmental licensing: Stateowned EPL is in charge of obtaining
Previous License (LP) and Installation
License (LI) of duplication works
Highways
GO
Criteria
Concession Term: 30 years
Number of Toll Plazas: 11
Criteria: lowest tariff
* TJLP - Long Term Interest Rate,
currently 5% p.a.
** Special Purpose Entity
Updated information available at
www.logisticsbrazil.gov.br
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
56
57. Ministry
of Finance
Road Concession – BR-116: from BA/MG border (Divisa Alegre) to MG/RJ border (Além Paraíba)
Object
Demand
• Section: BR-116, RJ/MG Border (Além
Paraíba) - MG/BA Border (Divisa Alegre)
Demand Projection: under study
• 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.
Connects two important economic
centers in Brazil - Rio de Janeiro
and Salvador – across eastern
Minas Gerais.
GO
BA
Divisa Alegre
BR-116
Teófilo Otoni
Gov. Valadares
MG
ES
Muriaé
Além Paraíba
SP
São
Paulo
Rio de
Janeiro
RJ
Highway
BR-116 MG
To be awarded
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.
Debt to equity ratio: up to 70% / 30%
Equity support: up to 49% of SPE**
or holding’s share capital
(Institutions: public banks and
pension funds)
Environmental licensing: Stateowned EPL is in charge of obtaining
Previous License (LP) and Installation
License (LI) of duplication works
Highways
Salvador
Criteria
Concession Term: 30 years
Number of Toll Plazas: 8
Criteria: lowest tariff
* TJLP - Long Term Interest Rate,
currently 5% p.a.
** Special Purpose Entity
Updated information available at
www.logisticsbrazil.gov.br
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
57
58. Road Concession – BR-101:
from the entry point of BR-324 (BA) to the entry point of the BA-698 (Mucuri)
Object
Demand
TO
BA
Salvador
GO
BR-116
MG
BR-101
João
Belo Monlevade
Horizonte
ES
BR-262
SP
Mucurí
Vitória
BR-381
São
Paulo
RJ
Rio de
Janeiro
Highway BR-101 BA
To be awarded
Criteria
Concession Term: 30 years
Number of Toll 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.
Debt to equity ratio: up to 70% / 30%
Equity support: up to 49% of
SPE*** or holding’s share capital
(Institutions: public banks and
pension funds)
Environmental licensing: Stateowned EPL is in charge of obtaining
Previous License (LP) and Installation
License (LI) of duplication works
* Without benefits and indirect
expenses
* *TJLP - Long Term Interest Rate,
currently 5% p.a.
*** Special Purpose Entity
Highways
• Section: BR-101, Entry Point of BA-698 Demand Projection (AADT): 2014
(Mucuri) – Entry Point of. BR-324/BA
(57,392), 2019 (71,312),
2024 (87,140).
• Total Length: 772 km
Connects the southern coast of Bahia
• Length to be widened: 551.3 km
to the states of Espírito Santo and Rio
The project includes widening,
de Janeiro. BR-101 is a very important
maintenance and operation of the
road connecting the northeast with the
highway. Other widening projects are
southeast and southern regions along
also planned to happen, including the
the coastal line, where lives a great
construction of 67 km of side roads.
share of Brazilian population. Important
ports are also connected by this road.
Ministry
of Finance
In the first half of September 2013,
the average exchange rate was
approximately US$ 1 = R$ 2.30
Updated information available at
www.logisticsbrazil.gov.br
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
58
59. Road Concession – BR-262: from the entry point of BR-381 (J. Monlevade) to the entry
point of BR-101/ES
Object
Demand
• 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)
TO
BA
Salvador
GO
BR-116
MG
Belo
Horizonte
BR-262
SP
BR-101
Mucurí
Governador
Valadares
João
Monlevade ES
Vitória
BR-381
São
Paulo
RJ
Rio de
Janeiro
Highway
BR-262 ES/MG
To be awarded
Criteria
Concession Term: 30 years
Number of Toll 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.
Debt to equity ratio: up to 70% / 30%
Equity support: up to 49% of SPE***
or holding’s share capital
(Institutions: public banks and
pension funds)
Environmental licensing: Stateowned EPL is in charge of obtaining
Previous License (LP) and Installation
License (LI) of duplication works
* Without benefits and indirect
expenses
* *TJLP - Long Term Interest Rate,
currently 5% p.a.
*** Special Purpose Entity
Highways
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.
Ministry
of Finance
In the first half of September 2013,
the average exchange rate was
approximately US$ 1 = R$ 2.30
Updated information available at
www.logisticsbrazil.gov.br
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
59
60. Ministry
of Finance
Road Concession – BR-153: from Palmas (TO) to Anápolis (GO) (BR-060 entry point)
Object
Demand
Criteria
Demand Projection (AADT): 2014
(99,926), 2019 (119,627), 2024 (146,113).
* Without benefits and indirect
expenses
* *TJLP - Long Term Interest Rate,
currently 5% p.a.
*** Special Purpose Entity
Highways
Concession Term: 30 years.
Number of Toll Plazas: 11.
Connects Palmas, Goiânia and the southeast Criteria: lowest tariff.
of the country, crossing a major Brazilian
Economic and
agricultural pole. Palmas is the geographical
Financial Modeling
center of the country, with the vocation
• Length to be widened: 769.5 km
to become an important hub. BR-153 is
CAPEX*: US$ 3.0 billion
The project includes widening,
the main road to reach the city of Manaus
OPEX: US$ 1.4 billion
maintenance and operation of the
from other regions, benefiting from the
highway. Other widening projects
heavy traffic of Manaus Free Zone, which
are also planned, including the
concentrates Brazilian electronic production, Financing conditions:
construction of 10 km of side roads.
among other important industries.
Term: 25 years (Grace period: 5 years)
TO-080
Rate: TJLP** + 2%a.a.
Palmas
Real leveraged IRR: up to 16%
TO
per year, in real terms.
Gurupi
BA
MT
Debt to equity ratio: 70% / 30%
BR-153
Uruaçu
Equity support: up to 49% of
SPE*** or holding’s share capital
BR-060
GO
Anápolis
(Institutions: public banks and
BR-040
pension funds)
BR-153
MG
Environmental licensing: StateHighway
BR-050
BR-153 GO/TO
owned EPL is in charge of obtaining
ES
BR-262
Previous License (LP) and Installation
To be awarded
MS
License (LI) of duplication works
SP
RJ
• 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
In the first half of September 2013,
the average exchange rate was
approximately US$ 1 = R$ 2.30
Updated information available at
www.logisticsbrazil.gov.br
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
60
61. Ministry
of Finance
Road Concession – BR-060 (DF/GO), BR-153 (GO/MG) and BR-262 (MG)
Object
Demand
• Section: BR-060, Entry Point of BR-251 (DF) –
Entry Point of BR-153/GO; BR-153, Entry Point of BR060/GO – Entry Point of Br-262/MG; BR-262, Entry
Point of BR-153/MG – Entry Point of BR-381 (Betim)
Demand Projection
(AADT): 2014 (160,374),
2019 (195,551), 2024
(238,453).
• Total Length: 1,177 km
Connects Brasília, Goiânia,
Uberaba and Belo Horizonte,
crossing a major Brazilian
agricultural pole.
TO-080
Palmas
TO
MT
Gurupi
BA
BR-153
Uruaçu
GO
BR-060
Anápolis
BR-040
BR-153
BR-050
MS
MG
Highway BR-060/153/262
DF/GO/TO
ES
BR-262
SP
To be awarded
RJ
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.
Debt to equity ratio: up to 70% / 30%
Equity support: up to 49% of
SPE*** or holding’s share capital
(Institutions: public banks and
pension funds)
Environmental licensing: Stateowned EPL is in charge of obtaining
Previous License (LP) and Installation
License (LI) of duplication works
* Without benefits and indirect
expenses
* *TJLP - Long Term Interest Rate,
currently 5% p.a.
*** Special Purpose Entity
Highways
• Length to be widened: 648 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 and ringroad in Goiânia.
Criteria
Term: 30 years.
Number of Toll Plazas: 11.
Criteria: lowest tariff.
In the first half of September 2013,
the average exchange rate was
approximately US$ 1 = R$ 2.30
Updated information available at
www.logisticsbrazil.gov.br
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
61
62. Ministry
of Finance
Road Concession – BR-163: from MT/MS border to MS/PR border
Object
Demand
• Section: BR-163, Border MT/MS – Border
w/ MS/PR
Demand Projection: under study
Criteria
Connects Cuiabá, Campo Grande
and the Southeast/South Regions
of Brazil, constituting an alternative
route for the flow of Brazilian
agricultural production.
• 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.
BA
Cuiabá
GO
MG
ES
MS
Campo Grande
Nova Alvorada
Dourados
BR-262
BR-267
BR-163 PR
Curitiba
SP
Highway BR-163
/267/262 MS
RJ
To be awarded
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: up to 70% / 30%
Equity support: up to 49% of SPE***
or holding’s share capital
(Institutions: public banks and
pension funds)
Environmental licensing: Stateowned EPL is in charge of obtaining
Previous License (LP) and Installation
License (LI) of duplication works
* Without benefits and indirect
expenses
* *TJLP - Long Term Interest Rate,
currently 5% p.a.
*** Special Purpose Entity
Highways
BR-163
BR-364
Economic and
Financial Modeling
CAPEX*: US$ 2.8 billion
OPEX: US$ 1.3 billion
TO
MT
Term: 30 years.
Criteria: lowest tariff.
In the first half of September 2013,
the average exchange rate was
approximately US$ 1 = R$ 2.30
Updated information available at
www.logisticsbrazil.gov.br
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
62
63. Ministry
of Finance
Road Concession – BR-163: from Sinop (MT) to MT/MS border
Object
Demand
• 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.
TO
MT
Posto Gil
Connects Sinop, Cuiabá, Campo
Grande and the North/Southeast/
South Regions of Brazil, crossing
an important Brazilian agricultural
production.
BR-163
BA
Cuiabá
Rondonópolis
BR-364
GO
MG
Goiânia
Highway BR-163 MT
ES
MS
Campo Grande
BR-262
SP
BR-267
BR-163
To be awarded
PR
Curitiba
RJ
Criteria
Term: 30 years
Number of Toll 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
Debt to equity ratio: up to 70% / 30%
Equity support: up to 49% of SPE***
or holding’s share capital
(Institutions: public banks and
pension funds)
Environmental licensing: Stateowned EPL is in charge of obtaining
Previous License (LP) and Installation
License (LI) of duplication works
* Without benefits and indirect
expenses
* *TJLP - Long Term Interest Rate,
currently 5% p.a.
*** Special Purpose Entity
Highways
Sinop
Demand Projection (AADT):
2014 (5,815), 2019 (7,140), 2024
(8,757)
In the first half of September 2013,
the average exchange rate was
approximately US$ 1 = R$ 2.30
Updated information available at
www.logisticsbrazil.gov.br
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
63
66. Ministry
of Finance
Railway Network
Belém /
V. Conde
Santarém
Itaqui
Pecém
Açailândia
Manaus
Pacific
Link
Parnamirim
Estreito
Eliseu
Martins
Porto Velho
Barreiras
Salvador
Aratu
Uruaçu
Ilhéus
Rondonópolis
Maracaju
Suape
Belo Horizonte
Estrela
d’Oeste
Vitória
Rio de Janeiro
Itaguaí
Santos
Paranaguá
S F. Sul
Itajaí / Navegantes
Pacific
Link
Rio Grande
Exploited rail network
PIL - Rail Network
(11,000 km) – to be awarded
Structuring Waterways
PAC – Rail network
New railways – Studies
underway
Railways
Figueirópolis
Lucas do Rio
Verde
Salgueiro
Updated information available at
www.logisticsbrazil.gov.br
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
66
67. Railway Concession: São Paulo rail beltway (“Ferroanel”) and access to Santos seaport
Object
Demand
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.
Eng Manoel Feio
Lapa
Suzano
Ipiranga
Canguera
Rio Grande
da Serra
Itaquaciara
To be awarded
Pereque
Evangelista
de Souza
Northern Ferroanel (SP)
Santos
Santos
Seaport
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.
Financing Conditions
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).
Railways
Risk Mitigation: Demand Risk
(Guaranteed purchase of 100% of railway
operational capacity availability); Socioenvironmental and Expropriation Risks
(Environmental and Expropriation costs and
charges limited to values pre-established in
concession contracts).
Perus
Amador
Marinque Bueno
Rail infrastructure builder and
manager: Concession for railway
exploitation, comprising: construction,
maintenance, signaling and comunications
systems, and traffic control.
Concession Term: 35 years
Construction to be completed up to the
5th year of the concession term.
Jundiaí
SP
Concession characteristics
Build, operate and transfer
Ministry
of Finance
* TJLP - Long Term Interest Rate,
currently 5% p.a.
** Special Purpose Entity
Updated information available
at www.logisticsbrazil.gov.br
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
67
68. Ministry
of Finance
Railway Concession: from Lucas do Rio Verde (MT)
to Campinorte (GO) and from Palmas (TO) to Anápolis (GO)
Object
Demand
Section: Lucas do Rio Verde
- Campinorte and Palmas Anápolis
Extension: 1,920 km
Interconnects Brazil’s Midwest Region to the
Southeast and Northeast, providing railway
transportation to production centers located
in the midwest and the outflow through the
North-South Railway.
Concession characteristics
Build, operate and transfer
Estimated CAPEX: US$ 3.65 billion
Rail infrastructure builder and
manager: Concession for railway
exploitation, comprising: construction,
maintenance, signaling and comunications
systems, and traffic control.
Risk Mitigation: Demand Risk
(Guaranteed purchase of 100% of railway
operational capacity availability); Socioenvironmental and Expropriation Risks
(Environmental and Expropriation costs and
charges limited to values pre-established in
concession contracts).
Palmas
TO
Lucas do Rio Verde
MT
BA
Campinorte
Anápolis
GO
Concession: Lucas do Rio Verde
- Campinorte and Palmas - Anápolis
MG
To be awarded
ES
MS
SP
RJ
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.
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).
Railways
Concession Term: 35 years
Construction to be completed up to the
5th year of the concession term.
Financing Conditions
Term: 30 years
(Grace period: 5 years)
* TJLP - Long Term Interest Rate,
currently 5% p.a.
** Special Purpose Entity
Updated information available
at www.logisticsbrazil.gov.br
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
68
69. Ministry
of Finance
Railway Concession: from Açailândia (MA) to Vila do Conde (PA)
Object
Demand
Section: Açailândia Vila do Conde
Interconnects the Midwest Region to
the North and the port of Vila do Conde,
completing the north stretch of the NorthSouth Railway, allowing the production and
outflow of grains, minerals and oil products
through the port of Vila do Conde
Extension: 457 km
Concession characteristics
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.
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 preestablished in concession contracts).
Belém
Vila do
Conde Port
PA
Itaqui
Port
Açailândia
MA
Carajás
Concession:
Açailândia - Vila do Conde
To be awarded
TO
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.
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).
Railways
Concession Term: 35 years
Construction to be completed up to the
5th year of the concession term.
Financing Conditions
Term: 30 years
(Grace period: 5 years)
* TJLP - Long Term Interest Rate,
currently 5% p.a.
** Special Purpose Entity
Updated information available
at www.logisticsbrazil.gov.br
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
69
70. Railway Concession:
Ouro Verde de Goiás (GO) – Estrela D’Oeste (SP) – Panorama (SP) – Dourados (MS)
Object
Demand
Section: Ouro Verde de
Goiás – Dourados
Expands the North-South Railway and
reaches important production centers of
grains.
Extension: 1,339 km
Concession characteristics
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.
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 preestablished in concession contracts).
Ouro Verde de Goiás
GO
Goiânia
Campo Grande
Estrela d’Oeste
Andradina
MS
Panorama
Dourados
Concession:
Ouro Verde de Goiás - Dourados
To be awarded
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.
Financing Conditions
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).
Railways
Concession Term: 35 years
Construction to be completed up to the
5th year of the concession term.
Ministry
of Finance
* TJLP - Long Term Interest Rate,
currently 5% p.a.
** Special Purpose Entity
Updated information available
at www.logisticsbrazil.gov.br
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
70
71. Ministry
of Finance
Railway Concession: from Belo Horizonte (MG) to Candeias (BA)
Object
Demand
Section: Belo Horizonte Candeias
Creates new possibilities for transport of general
cargo between the southeast and northeast
regions, refocusing on the use of railways to the
development of the internal market.
Extension: 1,350 km
Concession characteristics
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.
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 preestablished in concession contracts).
Candeias
BA
Salvador
Aratu
Port Salvador
Port
Caetité
GO
Brumado
Ilhéus Port
Belmonte
Port Terminal
Corinto
MG
Concession:
Belo Horizonte - Candeias
To be awarded
Belo
Horizonte
ES
SP
RJ
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.
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).
Railways
Concession Term: 35 years
Construction to be completed up to the
5th year of the concession term.
Financing Conditions
Term: 30 years
(Grace period: 5 years)
* TJLP - Long Term Interest Rate,
currently 5% p.a.
** Special Purpose Entity
Updated information available
at www.logisticsbrazil.gov.br
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
71
72. Ministry
of Finance
Railway Concession: from Rio de Janeiro (RJ) to Vila Velha (ES)
Object
Demand
Section: Rio de Janeiro - Vila
Velha
Integrates the port of Rio de Janeiro and its
Terminals to the Ports of Vitória e Tubarão,
creating new logistic possibilities for the
movement of cargo.
Extension: 572 km
Concession characteristics
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.
ES
MG
Vitória
Tubarão
Port
Vila Velha
Vitória
Port
Ponta UBU
Port Terminal
Campos dos
Goitaguazes
RJ
Barra do Piraí
Duque de Caixias
Port Terminal
Nova
Iguaçú
Rio de Janeiro Port
Niterói Port
Formosa
Beach Rio de
Janeiro
Açu
Port
Terminal
Concession:
Nova Iguaçu - Vila Velha
To be awarded
Macaé
Port Terminal
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 preestablished 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.
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).
Railways
Concession Term: 35 years
Construction to be completed up to the
5th year of the concession term.
Financing Conditions
Term: 30 years
(Grace period: 5 years)
* TJLP - Long Term Interest Rate,
currently 5% p.a.
** Special Purpose Entity
Updated information available
at www.logisticsbrazil.gov.br
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
72
73. Ministry
of Finance
Railway Concession: from Corinto (MG) to Campos (RJ)
Object
Demand
Section: Anápolis – Corinto
– Campos
Concession characteristics
Creates new possibilities for the outflow of grains Build, operate and transfer
and minerals from production centers through
Estimated CAPEX: US$ 7.80 billion
main ports.
Extension: 1,706 km
Rail infrastructure builder and
manager: Concession for railway
exploitation, comprising: construction,
maintenance, signaling and
comunications systems, and traffic
control.
Uruaçu
BA
GO
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 preestablished in concession contracts).
Brumado
Ilhéus
Port
Bernardo Sião
Anápolis
MG
Corinto
ES
Intendente Câmara
Belo Horizonte
Vitória
Vitória
Port
Campos
SP
RJ
Açu
Port Terminal
Concession:
Uruaçu - Campos
To be awarded
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.
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).
Railways
Concession Term: 35 years
Construction to be completed up to the
5th year of the concession term.
Financing Conditions
Term: 30 years
(Grace period: 5 years)
* TJLP - Long Term Interest Rate,
currently 5% p.a.
** Special Purpose Entity
Updated information available
at www.logisticsbrazil.gov.br
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
73
74. Ministry
of Finance
Railway Concession: from Feira de Santana (BA) to Ipojuca (PE)
Object
Demand
Section: Feira de Santana –
Ipojuca
Extension: 893 km
Concession characteristics
Modernizes the northeastern railway network, Build, operate and transfer
linking the major ports and markets
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.
PB
Salgueiro
BA
PE
SE
Aracajú
AL
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 preestablished in concession contracts).
Porto de Recife
Recife
Porto de Suape
Maceió
Porto de Maceió
Terminal Portuário
de Atalaia Velha
Concession:
Feira de Santana - Ipojuca
To be awarded
Porto de
Aratu
Salvador
Porto de Salvador
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.
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).
Railways
Concession Term: 35 years
Construction to be completed up to the
5th year of the concession term.
Financing Conditions
Term: 30 years
(Grace period: 5 years)
* TJLP - Long Term Interest Rate,
currently 5% p.a.
** Special Purpose Entity
Updated information available
at www.logisticsbrazil.gov.br
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
74
75. Ministry
of Finance
Railway Concession: from Lapa (PR) to Paranaguá (PR)
Object
Demand
Section: Lapa – Paranaguá
Expands and modernizes rail access to the
port of Paranaguá.
Extension: 150 km
Concession characteristics
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.
Maracaju
MS
Rio de Janeiro
São Paulo
SP
PR
São Sebastião
Port
Curitiba Santos
Port
Eng. Bley
Paranaguá Port
Lapa
Mafra
Cascavel
Chapecó
Campo Alto
do Sul
SC
RS
Rio Grande
Port
Duque de
Caxias Port
Terminal
Itajaí Port
Florianópolis
Imbituba Port
Laguna Port
Porto Alegre
Guaíba
Port Terminal
Pelotas Port
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 preestablished in concession contracts).
RJ
Panorama
Concession:
Lapa – Paranaguá
To be awarded
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.
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).
Railways
Concession Term: 35 years
Construction to be completed up to the
5th year of the concession term.
Financing Conditions
Term: 30 years
(Grace period: 5 years)
* TJLP - Long Term Interest Rate,
currently 5% p.a.
** Special Purpose Entity
Updated information available
at www.logisticsbrazil.gov.br
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
75
76. Ministry
of Finance
Railway Concession: from Maracajú (MS) to Lapa (PR)
Object
Demand
Section: Maracaju – Lapa
Creates new logistics possibilities for the
outflow of grains and other cargo from
production centers through the Port of
Paranaguá.
Extension: 989 km
Concession characteristics
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.
Maracaju
MS
Rio de Janeiro
São Paulo
SP
PR
São Sebastião
Port
Curitiba Santos
Port
Eng. Bley
Paranaguá Port
Lapa
Mafra
Cascavel
Chapecó
Campo Alto
do Sul
SC
RS
Rio Grande
Port
Duque de
Caxias Port
Terminal
Itajaí Port
Florianópolis
Imbituba Port
Laguna Port
Porto Alegre
Guaíba
Port Terminal
Pelotas Port
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 preestablished in concession contracts).
RJ
Panorama
Concession:
Lapa – Paranagua
To be awarded
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.
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).
Railways
Concession Term: 35 years
Construction to be completed up to the
5th year of the concession term.
Financing Conditions
Term: 30 years
(Grace period: 5 years)
* TJLP - Long Term Interest Rate,
currently 5% p.a.
** Special Purpose Entity
Updated information available
at www.logisticsbrazil.gov.br
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
76
77. Ministry
of Finance
Railway Concession: from Mairinque (SP) to Rio Grande (RS)
Object
Demand
Section: Mairinque – Rio
Grande
Creates new logistics possibilities for the flow
of cargo between Sao Paulo and the South
Region of Brazil, linking production and
consumption centers.
Extension: 1,667 km
Concession characteristics
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.
Maracaju
MS
São Paulo
Mairinque
PR
Cascavel
SP
Eng. Bley
Mafra
Chapecó
RS
Rio de Janeiro
São
Santos Sebastião
Port
Port
Paranaguá
Port
Itajaí
Campo Alto Port
do Sul
Florianópolis
SC Imbituba Port
Laguna Port
Porto Alegre
Guaíba
Port Terminal
Pelotas Port
Rio Grande
Port
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 preestablished in concession contracts).
RJ
Panorama
Forno
Port
Duque de
Caxias Port
Terminal
Concession: Mairinque
– Rio Grande
To be awarded
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.
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).
Railways
Concession Term: 35 years
Construction to be completed up to the
5th year of the concession term.
Financing Conditions
Term: 30 years
(Grace period: 5 years)
* TJLP - Long Term Interest Rate,
currently 5% p.a.
** Special Purpose Entity
Updated information available
at www.logisticsbrazil.gov.br
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
77
78. Ministry
of Finance
Railway Concession – High-Speed Train (TAV)
Rio de Janeiro - São Paulo - Campinas 1st Phase
Physical Description
Study in Progress
Section: Rio de Janeiro - São Paulo - Campinas
Extension: 511 km
The High-Speed Train 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.
Railways
Galeão
Viracopos
Guarulhos
Rio de Janeiro
Campinas
São Paulo
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
78
80. Ministry
of Finance
Major Brazilian Ports
Seaports
Macapá
Belém/Miramar/Outeiros
Santarém
Itaqui
Pecém
Manaus/
Vila do
Itacoatiara
Conde
Cabedelo
Suape/Recife
Porto Velho
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
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
80
81. Ministry
of Finance
Port Investment Program - Bidding Blocks
Block
Block 1
Block
Block 3
Block 4
31 terminals at: Santos, Outeiro,
Santarém, Belém, Miramar and Vila
do Conde Ports
Ports
44 terminals at: Paranaguá, Antonina, Salvador, Aratu and São Sebastião
Ports
36 terminals at: Cabedelo, Fortaleza, Itaqui, Macapá, Recife and Suape
Ports
28 terminals at: Itaqui, Niterói, Rio
de Janeiro, Itajaí, São Francisco do Sul,
Rio Grande, Porto Alegre and Vitória
Ports
Estimated
Investment
Increase
Capacity
Auction
US$ 1.5 bi
27 million
tons/year
Dec 2013
Public Consultation
Auction
Sep 2013
Jan 2014
Oct 2013
Feb 2014
Nov 2013
Mar 2014
Seaports
Block 2
Ports
In the first half of September 2013,
the average exchange rate was
approximately US$ 1 = R$ 2.30
Source: Special Secretariat of Ports
Produced by: Ministry of Finance
81
82. Ministry
of Finance
Port Investment Program
Conditions to public ports
Seaports
• Terminals at public ports will be leased through public auction
Main Features
Contractual Terms (requirements)
• 25-year term, renewable only once
• Minimutm Investments
Standardized biddings conducted through
• Minimum productivity
auction by ANTAQ
• Minimum static capacity
Selection Criteria
Terminal in verticalized chains or with
Terminals with features of provision of
healthy competition environment
services to third parties
• Bidding for greater handling capacity
• Bidding for lowest tariff
• Induction of new investments
• Reduction of port costs
• Guarantee of isonomic access to users
Conditions to private ports
•
Terminals at private ports may be leased without a public auction, should its construction not conflict
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
In the first half of September 2013,
the average exchange rate was
approximately US$ 1 = R$ 2.30
Source: National Logistics & Planning
Company (EPL)
Produced by: Ministry of Finance
82
84. Ministry
of Finance
Major Brazilian Airports
Concessions already
granted :
Guarulhos (São Paulo)
Viracopos (São Paulo)
Brasília
Boa Vista
Macapá
Belém (Val de Cans)
Santarém
Manaus
Parnaíba
Tefé
Belém (Júlio César)
Altamira
Tabatinga
Marabá
Carajás
Rio Branco
João Pessoa
Campina
Petrolina Grande
Palmas
Porto Velho
Natal
Juazeiro
do Norte
Imperatriz
Cruzeiro do Sul
Fortaleza
Teresina
Paulo
Afonso
Recife
Maceió
Salvador
Brasília
Cuiabá
Concessions to be granted :
Galeão (Rio de Janeiro)
Confins (Belo Horizonte)
Ilhéus
Airports
Aracajú
Montes Claros
Goiânia
Confins
Corumbá
Campo Grande
Uberaba
CampinasBH (Carlos Prates)
Passengers per year
Ponta Porã
15.000.001 to 30.100.000 (3)
5.000.001 to 15.000.000 (9)
Londrina
Up to 100.000 (13)
RJ (Galeão)
RJ (Jacarepaguá)
RJ Santos Dumont
SJ dos Campos
Guarulhos
SP (Congonhas)
Navegantes
Florianópolis
Uruguaiana
100.001 to 500.000 (19)
Vitória
Campos dos Goytacazes
Macaé
SP (Campos de Marte)
Curitiba (Afonso Pena)
Curitiba
(baracher)
Foz do Iguaçú
Joinville
1.000.001 to 5.000.000 (15)
5000.001 to 1.000.000 (7)
BH (Pampulha)
Uberlândia
Criciúma
Bagé
Porto Alegre
Pelotas
Source: Civil Aviation Secretariat (SAC)
Produced by: Ministry of Finance
84
85. Ministry
of Finance
Airport Investment Program
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
Airports
International
Pax - 2012
Airport
In the first half of September 2013,
the average exchange rate was
approximately US$ 1 = R$ 2.30
Source: Civil Aviation Secretariat (SAC)
Produced by: Ministry of Finance
85
86. Ministry
of Finance
Schedule for the concessions of Galeão and Confins airports
Studies
TCU* and
Public Hearings
Release of
Auction
Notices Auction
May
Jun
Jul
Aug
Sep
Nov
Airports
2013
* TCU- Federal Court of Auditors
Source: Civil Aviation Secretariat (SAC)
Produced by: Ministry of Finance
86
87. Ministry
of Finance
Galeão - Summary Chart
Galeão - Summary Chart
Number of Passengers, in million
18
12
2011-2012: 17.5%
6
Average Growth = 16%
Airports
12
11
20
10
20
09
20
08
20
20
06
07
20
05
20
20
03
20
04
0
20
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
Passenger Terminals:
Capacity: 17.4 million Pass/Yr
Area: T1 - 147,834 m²
T2 - 132,847 m²
Parking: 4,310 parking spaces
Cargo Terminal: 46,500 m²
Cargo Movements: 87,876 ton
Staff Employees: 958
Passenger Profile (2012), in million
Dom
Int
13.0
4.2
Source: Civil Aviation Secretariat (SAC)
Produced by: Ministry of Finance
87
88. Ministry
of Finance
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:
•
•
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
Airports
•
•
•
•
•
•
•
Term: 25 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$ 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
*BNDES financing conditions applied
to airports already granted (Guarulhos,
Viracopos and Brasília).
In the first half of September 2013,
the average exchange rate was
approximately US$ 1 = R$ 2.30
Source: Civil Aviation Secretariat (SAC)
Produced by: Ministry of Finance
88
89. Ministry
of Finance
Galeão- Estimated Demand
Year
2013
2033
2038
19,269,199
Passengers
2023
34,537,602
50,138,243
60,365,874
70
50
Airports
Million Passengers
60.3
50.1
34.5
30
19.2
10
2013
2023
2033
2038
Source: Civil Aviation Secretariat (SAC)
Produced by: Ministry of Finance
89
90. Ministry
of Finance
Confins - Summary Chart
Confins - Summary Chart
8
2011-2012: 9.5%
Migration of
Pampulha to
4
Confins
Staff Employees: 344
12
11
20
10
20
09
20
08
20
20
06
20
05
20
04
20
03
20
07
Average Growth = 46.3%
0
Passenger Profile (2012) , in million
Vehicle Parking : 2,005 parking spaces
Cargo Terminal: 9,880 m²
Cargo Movements: 27,163 ton
Airports
Passenger Terminal:
Capacity: 10.3 million Pass/Year
Area: T1 - 60,305 m²
Number of Passengers, in million
12
20
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
Dom
Int
9.8
0.4
Source: Civil Aviation Secretariat (SAC)
Produced by: Ministry of Finance
90
91. Ministry
of Finance
Cofins - Financial Conditions
Object:
•
Expansion, maintenance and operation of the Tancredo Neves International Airport
(Confins Airport) with a total area of 15,010,000 m2
Contract criteria:
•
•
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
Airports
•
•
•
•
•
•
•
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
*BNDES financing conditions applied
to airports already granted (Guarulhos,
Viracopos and Brasília)
In the first half of September 2013,
the average exchange rate was
approximately US$ 1 = R$ 2.30
Source: Civil Aviation Secretariat (SAC)
Produced by: Ministry of Finance
91
92. Ministry
of Finance
Confins – Estimated Demand
Year
2013
2033
2043
10,993,890
Passengers
2023
18,162,209
28,165,165
43,334,690
50
43.3
Airports
Million Passengers
41
32
28.1
23
18.1
14
5
10.9
2013
2023
2033
2043
Source: Civil Aviation Secretariat (SAC)
Produced by: Ministry of Finance
92
94. Ministry
of Finance
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
Oil and Gas
In the first half of September 2013,
the average exchange rate was
approximately US$ 1 = R$ 2.30
Source: National Agency of Petroleum,
Natural Gas and Biofuels (ANP) and
Ministry of Mines and Energy (MME)
Produced by: Ministry of Finance
94
95. Ministry
of Finance
11th Round – Bidding Result (May 2013)
Amazonas River Mouth
Potiguar Onshore
Basin
Pará-Maranhão
Sedimentary Basin
Barreirinhas
Ceará
Potiguar Offshore
Brought Blocks
Offered but not sold
Offshore
Pre-Salt Limit
Parnaíba
Oil and Gas
Pernambuco-Paraíba
Tucano and
Reconcavo Basins
Espírito Santo
Onshore/Offshore
Brasília
Source: National Agency of Petroleum,
Natural Gas and Biofuels (ANP) and
Ministry of Mines and Energy (MME)
Produced by: Ministry of Finance
95
96. Ministry
of Finance
11th Round – Bidding Result (May 2013)
Sedimentary basin
Sergipe-Alagoas onshore
Foz do Amazonas
Pernambuco-Paraíba
Potiguar offshore
Potiguar onshore
Barreirinhas
Pará-Maranhão
Parnaíba (onshore)
TOTAL
Bought Blocks
11
14
1
3
21
6
6
15
6
3
1
14
19
2
0
14
6
142
Area (km2)
320.89
10,543.55
476.95
1,776.23
3,789.67
4,328.40
178.73
443.13
3,642.32
2,303.23
767.38
411.80
9,997.40
1,538.57
42,143.81
17,620.43
100,282.49
Oil and Gas
Tucano Sul
Espírito Santo offshore
Espírito Santo onshore
Recôncavo
Ceará
State
AL
AP
PB
PE
BA
ES
ES
BA
CE
CE
RN
RN
MA
MA
PA
PI
MA
11
Source: National Agency of Petroleum,
Natural Gas and Biofuels (ANP) and
Ministry of Mines and Energy (MME)
Produced by: Ministry of Finance
96
97. Ministry
of Finance
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)
2013
Contract
Signature
Dec
Auction
Oct 21st
Sep
Jul
Preliminary
auction
notice,
Release
areas
of auction
and data
notice
Oil and Gas
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
In the first half of September 2013,
the average exchange rate was
approximately US$ 1 = R$ 2.30
Source: National Agency of Petroleum,
Natural Gas and Biofuels (ANP) and
Ministry of Mines and Energy (MME)
Produced by: Ministry of Finance
97
98. Ministry
of Finance
Brazil Pre-Salt layer – Bidding under production sharing regime
Espirito Santo
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
Rio de Janeiro
Proved Reserves
(2012): 18.2 bi boe
São Paulo
Franco
2.0 to 5.5 bi boe
Libra
8 to 12 bi boe
Pão de Açúcar
1.2 bi boe
Iara
3 to 4 bi boe
Sapinhoá
2.1 bi boe
South and NE of Tupi
0.5 to 0.7 bi boe
Peroba
1.1 to 1.8 bi boe
Lula
8.3 bi boe
Oil and Gas
Iara Surroundings
0.6 to 0.8 bi boe
Florim
0.1 to 0.4 bi boe
Sul de Guará
0.1 to 0.3 bi boe
Parque das Baleias
1.5 to 2 bi boe
Pre-Salt
Boundaries
Estimated Recoverable
Volumes
• At the Pre-Salt evaluated areas, expected recoverable volumes could reach twice the
actual proved reserves
Source: National Agency of Petroleum,
Natural Gas and Biofuels (ANP) and
Ministry of Mines and Energy (MME)
Produced by: Ministry of Finance
98
99. Ministry
of Finance
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
• 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
Source: National Agency of Petroleum,
Natural Gas and Biofuels (ANP) and
Ministry of Mines and Energy (MME)
Produced by: Ministry of Finance
Oil and Gas
Bidding judgment criteria:
99
100. Ministry
of Finance
Areas with potential for non-conventional resources
Tacutu
Amazonas River Mouth
Pará-Maranhão
Barreirinhas
Solimões
Amazonas
Potiguar
Parnaíba
Acre
Rio do Peixe
Pernambuco-Paraíba
Alto Tapajós
Madre de Dios
Bananal
Oil and Gas
Parecis
Sergipe-Alagoas
Tucano
Recôncavo
Camamu-Almada
São
Francisco
Pantanal
Espírito Santo
Paraná
Campos
Santos
Oil and Gas in Brazil
Sedimentary Basin
Source: National Agency of Petroleum,
Natural Gas and Biofuels (ANP) and
Ministry of Mines and Energy (MME)
Produced by: Ministry of Finance
100
102. Brazilian investments in the electricity sector auctions – 2013 to 2017
Estimated Expansion
Investments (US$ billion)
33,288 MW
21,164 km
53.1
11.0
64.1
Power
Transmission
Total
• Power to be contracted
Sources
Investment (US$ billion)
21,689
35.4
10,099
16.4
1,500
33,288
1.3
53.1
• Electricity transmission lines
Auction
Total
Investment (US$ billion)*
2013
2014-2017
Length (Km)
4,745
11,846
4,573
21,164
2.4
6.0
2.6
11.0
Approved Projects
Other Projects
Electricity
Hydro
Other Renewable Sources
(Wind, Biomass and Small Hydro)
Thermal
Total
Capacity (MW)
* Including estimated investment in
substations
In the first half of September 2013,
the average exchange rate was
approximately US$ 1 = R$ 2.30
Source: Energy Research Office (EPE)
Produced by: Ministry of Finance
102
Ministry
of Finance
103. 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
Electricity
• 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
Source: Energy Research Office (EPE)
Produced by: Ministry of Finance
103
Ministry
of Finance
104. Main technical requirements for participation in the electricity auctions
• 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:
Prior
Environmental
License
Access
Information
Wind Power
Plant
X
X
X
Hydroelectric
Plant (HPP and
small Hydro)
X
X
X
Thermoelectric
Plant (Biomass
and fossil)
X
X
X
Energy
Proof of
Production Right of Local
Certification
Use
X
Proof of
Availability
Water
Use Grant
X
Electricity
ANEEL
Registry
Type
X
X
X
X
HPP - Hydro Power Plant
ANEEL -National Electricity Agency
Source: Energy Research Office (EPE)
Produced by: Ministry of Finance
104
Ministry
of Finance
105. Main financial requirements for
participating in electricity auctions and for signing power contracts
• Bid guarantees due to ANEEL
• For each project eligible to participate in the auction, bidders must submit bid guarantees due to ANEEL
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
Average MW (MWm) – Energy Unit
(8,760 MWh over an yearly period)
Source: Energy Research Office (EPE)
Produced by: Ministry of Finance
Electricity
105
Ministry
of Finance
106. BNDES FINEM (Financing to Enterprises) Financial Aspects
Hydro Power Plant
(HPP)
Thermal Power Plant
(TPP)
Wind, Biomass and
Small Hydro
* DSCR: debt service coverage ratio
** TJLP: Long Term Interest
Tax, currently 5.0%
Source: National Bank of Economic
and Social Development (BNDES) –
Consultation in Jan/2013
Produced by: Ministry of Finance
Electricity
• Current credit conditions:
• Current credit conditions:
• Current credit conditions:
• Leverage: up to 80%, should
• Leverage: up to 70% (60% coal),
• Leverage: up to 70%;
observe DSCR * ≥1.2;
should observe DSCR* ≥ 1.2;
• Amortization period: up to 20
• Amortization period up to 20 years
• Amortization period: up to 16 years;
years;
(16 years for wind);
• Grace period: up to 6 months after
• Grace period: up to 6 months after
• Grace period: up to 6 months after
commercial operation date;
commercial operation date;
commercial operation date;
• Interest rate: TJLP**+0.9% +credit
• Interest rate: TJLP**+0.9%+credit
• Interest rate: TJLP**+0.9%+credit
risk spread.
risk spread.
risk spread.
106
Ministry
of Finance
107. Electricity Auctions: main results
• Consolidated results of new energy auctions from 2005 to 2012
Number of Auctions
Projects
Capacity (MW)
Investment (US$ billion)
23
490
60,892
100
• August 2013 Reserve Auction
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
Electricity
Type
• August 2013 Power Auction
Projects able to bid
Type
Biomass
Coal
HPP (less than 50 MW)
HPP SINOP
Total
Bid Capacity
(MW)
919
1,840
376
400
3,535
Number of
Participants
16
3
16
1
36
Auction Results
Bid Capacity
(MW)
647
219
400
1,266
Number of Total Amount
Participants (US$ million)
9
815
9
586
1
773
19
2,174
In the first half of September 2013,
the average exchange rate was
approximately US$ 1 = R$ 2.30
Source: Energy Research Office (EPE)
Produced by: Ministry of Finance
107
Ministry
of Finance
108. Hydropower Expansion: 2013 electricity auctions
• November 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
469
2
19,187
783
Electricity
Natural Gas
Total
• Hydropower Expansion: December 2013 auction
2013
Hydropower
Plant
River/State
Capacity
(MW)
São Manoel
Auction
Teles Pires/ MT-PA
Parnaíba/ PI
63
Ribeiro Gonçalves
Parnaíba/ PI
113
Itaocara
Paraíba do Sul/RJ
145
Estimated Investments
(US$ billion, constant
prices, Dec/2012)
700
Cachoeira
Total Capacity
(MW)
1,021
1.8
In the first half of September 2013,
the average exchange rate was
approximately US$ 1 = R$ 2.30
Source: Energy Research Office (EPE)
Produced by: Ministry of Finance
108
Ministry
of Finance
109. Hydropower Expansion: auctions from 2014 to 2017
2017
Paranaíba/ MG-GO
74
Piquiri/ PR
93.2
Ercilândia
S Luíz Tapajós
Água Limpa
Comissário
Foz Piquiri
Telêmaco Borba
Paranhos
Tabajara
Jatobá
Castanheira
Itapiranga
Torixoréu
Bem Querer
Riacho Seco
Piquiri/ PR
Tapajós/ PA
Das mortes/ MT
Piquiri/ PR
Piquiri/ PR
Tibagi/ PR
Chopim/PR
Ji-Paraná/RO
Tapajós/PA
Arinos/ MT
Uruguai/SC-RS
Araguaia/ GO-MT
Branco/ RR
S. Francisco / PE-BA
87.1
6,133
380
105
101
109
63
350
2,336
192
721
408
709
276
Juruena/ MT-AM
1,461
S. Simão
Pompeu
Marabá
Prainha
Alto Juruena/
MT-AM
S. Francisco / MG
Tocantins / PA-MA
Aripuanã/ AM
Total Capacity
(MW)
Estimated Investments
(US$ billion, constant prices, Dec/2012)
7,495
11.3
3,249
5.4
1,117
2.3
3,509
8,407
13.7
209
2,160
792
Total
20,268
32.7
Electricity
2016
Capacity
(MW)
Salto Augusto Baixo
2015
River/State
Foz do Piquiri
2014
Hydropower
Plant
Davinópolis
Auction
In the first half of September 2013,
the average exchange rate was
approximately US$ 1 = R$ 2.30
Source: Energy Research Office (EPE)
Produced by: Ministry of Finance
109
Ministry
of Finance
110. HPP São Manoel - Fact sheet
Estimated Investment
US$ 1.0 billion
Indigenous Land Cayabi
HPP São Manoel
0
2,5 5
10
15
Electricity
• Teles Pires River
MATO GROSSO
• Capacity: 700 MW
Legend
• Firm Energy: 400 average MW
HPP São Manoel
• Number of generating units: 5
Novo Planeta
HPP São Manoel Reservoir
Declared Indigenous Land
• Gross Head: 23.9 m
Paulão
State border line
• Spillway Crest: 165 m.
Mutum
0 2,5 5
• Max normal water level (reservoir): 161 m
• Normal water level downstream: 138.2 m
• Reservoir Area (normal water levels) ~ 70.8 km²
PARÁ
20
N
10
15
20
In the first half of September 2013,
the average exchange rate was
approximately US$ 1 = R$ 2.30
Source: Energy Research Office (EPE)
Produced by: Ministry of Finance
110
Ministry
of Finance
111. The development of wind power in Brazil
• Operating and contracted capacity
10,130
10000
8,846
7,882
MW
8000
6000
5,197
4000
17
20
16
20
15
14
20
20
13
2,189
20
12
1,750
20
11
1,417
20
10
09
20
08
607
20
07
337
20
248
20
06
05
04
237
20
29
23
20
20
03
22
20
0
927
Electricity
2000
• To be contracted in 2013-2017 auctions
Capacity
(MW)
Investment
(US$ billion)
4,215
7.7
In the first half of September 2013,
the average exchange rate was
approximately US$ 1 = R$ 2.30
Source: Energy Research Office (EPE)
Produced by: Ministry of Finance
111
Ministry
of Finance
112. The development of bioelectricity in Brazil
• Operating and contracted capacity
10,000
8,936 9,035 9,035 9,085 9,185
7,874 8,081
8,000
MW
6,822
6,000
4,969
3,910
4,000
2,584 2,590
2,000
1,755
Electricity
17
20
16
20
15
20
14
20
13
20
12
20
11
20
10
20
09
20
08
20
07
20
06
20
20
05
0
• To be contracted in 2013-2017 auctions
Capacity
(MW)
Investment
(US$ billion)
2,513
2.4
In the first half of September 2013,
the average exchange rate was
approximately US$ 1 = R$ 2.30
Source: Energy Research Office (EPE)
Produced by: Ministry of Finance
112
Ministry
of Finance
113. Other energy sources to be contracted in 2013 – 2017 auctions
• Small hydropower plants
Capacity
(MW)
Investment
(US$ billion)
1,000
2.6
Capacity
(MW)
Investment
(US$ billion)
1,500
1.3
Electricity
• Thermal power stations
• Additional expansions depend on the effective exploration of unconventional gas
In the first half of September 2013,
the average exchange rate was
approximately US$ 1 = R$ 2.30
Source: Energy Research Office (EPE)
Produced by: Ministry of Finance
113
Ministry
of Finance