april 27, 2009

April 27, 2009

Associação Brasileira da Infraestrutura e Indústrias Associação Brasileira da Infraestrutura e Indústrias de Basede Base

BRAZIL SUMMIT 2009

INVESTING IN BRAZIL INFRASTRUCTURE:KEYS FOR A SUSTAINED ECONOMIC

GROWTH

Paulo GodoyPresident

2

BRAZIL* Population: 187.1 million

Area : 8,547,403 km²

2007 GDP = US$ 1,295,500 million

2007 GDP per capita = US$ 9,695 (**)

* Estimated population by IBGE (Dec. 2007)** Purchasing power parity (p.p.p.)Source: FMI and IBGE

3

ABDIB ANDINFRASTRUCTURE

4

ABDIB ABDIB ANDAND I INFRASTRUCTURENFRASTRUCTURE

DURING THE 90’s DURING THE 90’s : HELPED TO START PRIVATE INITIATIVE : HELPED TO START PRIVATE INITIATIVE INVESTMENT IN INFRASTRUCTURE.INVESTMENT IN INFRASTRUCTURE.

TODAY TODAY : CONTRIBUTING TO IMPROVE CURRENT BUSINESS : CONTRIBUTING TO IMPROVE CURRENT BUSINESS ENVIRONMENT AND TO ATTRACT INVESTMENT FROM ALL ENVIRONMENT AND TO ATTRACT INVESTMENT FROM ALL PARTNER COUNTRIES.PARTNER COUNTRIES.

FOUNDED IN 1955FOUNDED IN 1955 IN SÃO PAULO. IN SÃO PAULO.

DURING THE 60, 70 AND 80’s DURING THE 60, 70 AND 80’s : PROMOTED THE FIRST: PROMOTED THE FIRST LARGELARGE PROJECTS IN THE SECTOR. PROJECTS IN THE SECTOR.

ABDIB’s BOARD MEMBERS ARE PRESIDENTS OR KEY ABDIB’s BOARD MEMBERS ARE PRESIDENTS OR KEY DIRECTORS FROM THE LARGEST ENTERPRISES THAT DIRECTORS FROM THE LARGEST ENTERPRISES THAT INVEST OR SUPPLY GOODS AND SERVICES TO INVEST OR SUPPLY GOODS AND SERVICES TO INFRASTRUCTURE AND BASIC INDUSTRY MARKETSINFRASTRUCTURE AND BASIC INDUSTRY MARKETS

5

INFRASTRUCTURE AND BASIC INDUSTRY

ELECTRICAL POWER

OIL, GAS AND PETROCHEMICAL TRANSPORTATION BASIC

SANITATION

STEEL PAPER/PULP TELECOM

AAREA COVERAGEREA COVERAGE

MINING

6

GOODS AND SERVICES FOR INFRASTRUCTUREAND BASIC INDUSTRY

ENGINEERINGSYSTEMS /

EQUIPMENT CONSTRUCTION ASSEMBLY

OTHER SERVICES

OPERATORSINVESTORS

INTERRELATED AREASINTERRELATED AREAS

7

MEMBER COMPANIESMEMBER COMPANIES

REVENUE REVENUE 20072007 115858US$ BILLIONUS$ BILLION (1(155% GDP)% GDP)

EMPLOYEESEMPLOYEES 318,318,000 000

MEMBERS MEMBERS 160160

8

ABDIB’s POSITIVE AGENDA

CREATE ALTERNATIVE MECHANISMS FOR CREATE ALTERNATIVE MECHANISMS FOR FINANCINGFINANCING

ESTABLISH CLEAR AND STABLE INSTITUTIONAL ESTABLISH CLEAR AND STABLE INSTITUTIONAL RULESRULES

CONSOLIDATE REGULATORY AGENCIES CONSOLIDATE REGULATORY AGENCIES WITH AUTONOMY AND INDEPENDENCEWITH AUTONOMY AND INDEPENDENCE

DEFINE A SET OF STRUCTURING PROJECTS DEFINE A SET OF STRUCTURING PROJECTS

RATIFY IMPORTANCE OF PRIVATE CAPITAL RATIFY IMPORTANCE OF PRIVATE CAPITAL PARTICIPATION IN INFRASTRUCTUREPARTICIPATION IN INFRASTRUCTURE

9

CURRENT LEGAL AND

REGULATIONENVIRONMENT

10

CURRENT LEGAL AND REGULATION ENVIRONMENT Concession Law

The Concession Law (Law 8,987/95) is the major framework of the relation between the State and Private Enterprise, capable of creating the bases of long-term legal and operational coexistence and defining the nature of the risk involved.

PPP’s – Public Private Partnerships Modalities of Partnerships with Public Sector1.Concession (Law 8,897/95): risk on investors (operators)2.Sponsored Concessions *(Law 11,079/04): investors share risk with public sector3.Administrative Concession *(Law 11,079/04): government runs the service. Ex. Hospitals, Penitentiary systems

* PPP

11

CURRENT LEGAL AND REGULATION ENVIRONMENT Regulatory Agencies

Existence of 6 agencies at federal level (Electric Power, oil & gas, ground transport, water transport, air transport, hydroresources), 21 agencies at state level and 5 at municipal level.

Arbitrage In line with the international practice, arbitrage is an essential clause in concession contracts. It establishes the possibility of using private ways to salve contract conflicts between private enterprise and the State or stated-owned companies. Language to be used in this process must be Portuguese. As to the legal support for judgements, they are stated in

Law 9,307 / 96 – Arbitrage law Law 8,987/ 95 - Concession law Law 11,079/ 04 – art. 11, III – PPPs law

12

CURRENT LEGAL AND REGULATION ENVIRONMENT

Private Equity Infrastructure Funds - FIPs Concept and Regulation

Investment Fund (FIP): Federal Instructions 391/03 (FIPs in general) and 406/04 (for FIPs with financial support by foster institutions)FIP is designed for acquisition of stocks, debentures, bonuses, or other assets convertible or exchangeable to stocks issued by companies, with open or limited capital, with participation in the decision process of the recipient company, effectively influencing both its strategic policy as well as its management, especially by indicating members of the Board (Federal Instruction 391/03, art. 1st.) FIP is oriented to exclusively qualified investors (Federal Instruction 391/03, art. 5th.)

CONTINUED

13

Concept and RegulationInvestment Fund of Credit Rights, or Funds of Receivables (FIDC): Federal Instruction 356/01, modified by Instruction 393/03FIDCs: designed to use a significant part of its net assets to applications in credit rights. They can be either open or closed.Regulation of a FIDC can allow the existence of two different quotes, a senior quote or a subordinated class quote. Subordinated class quotes are not allowed to be withdrawn or redeemed before the senior quotes are withdrawn. These quotes are allowed to be withdrawn or redeemed in credit rights.

Investment Funds Of Credit Rights - FIDC

CURRENT LEGAL AND REGULATION ENVIRONMENT

14

PRIVATE PARTICIPATION

IN

INFRASTRUCTURE

15

PRIVATE PARTICIPATION IN INFRASTRUCTURE ELECTRIC ENERGY (POSTCONCESSION)

Generation (1999 / 2008)19,121 MW were tendered in this period, as follows:

•13,761 MW granted to the private sector (72%)•5,360 MW granted to the public sector (28%)

Transmission (1999 / 2008) 32,449 km were tendered in this period, as follows:

• 23,843 km granted to the private sector (77%)• 8,606 km granted to the public sector (23%)

Distribution (1999 / 2008) Private Participation = 66% Public Participation = 34%

Note: ANEEL is the Regulatory agency for Eletric Energy

16

ANP TENDER ROUNDS

BlocksBlocksYearYear 19991999 20002000 20012001 20022002 20032003 20042004 20052005 20062006 20072007 20082008 1999 / 1999 /

20082008

RoundRound 11 22 33 44 55 66 77 88 99 1010 --

TenderedTendered 2727 2323 5353 5454 908908 913913 1,1341,134 ** 271271 130130 3,5133,513

AwardedAwarded 1212 2121 3434 2121 101101 154154 251251 ** 117117 5454 765765

New AgentsNew Agents 1010 1212 1111 77 22 55 1313 ** 1919 66 8484

PRIVATE PARTICIPATION IN INFRASTRUCTURE OIL AND GAS (POSTCONCESSION)

Note: (*) 8th. Round (2006) fully suspendedBrazilian companies represent 52% of new agentsANP is the Regulatory Agency for Oil & Gas

17

PRIVATE PARTICIPATION IN INFRASTRUCTURE HIGHWAYS (POST CONCESSION)

Although representing a small part of the total extension of Brazilian highways, the highways under concession are among the most important and the best in global conditions, such as pavement, signs and layout geometry.

44 concessionaries = 14,822 km (9.0% paved network = 164,997 km)

• 13 (federal) = 4,088 km• 36 (state) = 10,705 km• 1 municipal = 25 km

In 7 States: BA/ ES/ MG/ RJ/ SP/ PR/ RS

18

PRIVATE PARTICIPATION IN INFRASTRUCTURE PORTS (POST CONCESSION)

Organized Ports (40 ports)• Ports under Concession to private Companies = 3• Ports under Concession, Delegation, Authorization and tie-in to Governments = 37

Private-Use Terminals ( 127 Terminals)• Explored by Public Companies = 42• Explored by Private Companies = 85

Total Load Transportation Share in 2007

•Organized Ports = 278.8 million of ton. (36.9%)

•Private – Use Terminals = 475.9 million of ton. (63.1%)

Source: Antaq

19

PRIVATE PARTICIPATION IN INFRASTRUCTURE AIRPORT

Infraero is a state-owned national company that manages• 67 airports• 32 load terminals• 80 units in support of air navigation

WATERWAYS (POST CONCESSION)LAW 10,233, of June 5, 2001, allows the concession of navigable waterways. This fact has not yet been put formally into practice in the country.

20

PRIVATE PARTICIPATION IN INFRASTRUCTURE TELECOMMUNICATIONS (POST CONCESSION)

The legislation reform and the privatization of the telecommunications sector in Brazil have presented very positive results.

Fixed Telephony (access to services)•In 1996 – 16.5 million•In 2008 – 41.3 million

Cellular Telephony (terminals and cell phones)•In 1996 – 2.7 million•In 2008 – 150.6 million

21

PRIVATE PARTICIPATION IN INFRASTRUCTURE

199 Contracts – 203 Municipalities

Market Share 9.6 % of urban population 13.8 million inhabitants 203 municipalities in 12 states 3.6 % of all towns

Type Towns InhabitantsFull concession 48 5,294,781Regional enterprise (Saneatins)

116 822,777

Micro-regional enterprises

8 628,475

Partial concession 32 6,978,287Water 10 3,595,597Sewage 21 3,382,690

Total 203 13,852,999

BASIC SANITATION (POST CONCESSION)

22

REQUIRED AND ACTUAL INVESTMENT

IN INFRASTRUCTURE

23

R$ B

illio

n

(e) Estimated2008 Prices: Figures updated by inflation indicator over the period

INVESTMENT IN INFRASTRUCTURE IS STILL FAR FROM REQUIREMENT2008 Prices

ACTUAL INVESTMENT

REQUIRED AND ACTUAL INVESTMENT IN INFRASTRUCTURE

24

R$ B

illio

n

29.0

23.6

29.6 29.1

38.3

32.3

41.4

30.9

52.9

31.2

0

20

40

60

2003 2004 2005 2006 2007

Public Private

55.1%

44.9%

50.5%

49 .5%

54 .2%

45.8%

57.3%

42.7%

63.0%

37.0%

2007 Prices(Public Investment includes state-owned companies)

INFRASTRUCTURE INVESTMENT (PUBLIC AND PRIVATE)


25

ACTUAL INVESTMENT (2003 – 2008)

2003 2004 2005 2006 2007 2008(E)Transport 7.407 9.092 14.629 13.832 13.514 14.510Eletric Power 11.347 10.977 12.871 15.517 17.044 14.470Oil and Gas 20.478 20.799 26.440 29.005 40.577 38.660Telecommunication 12.768 17.527 17.087 13.917 13.763 13.500Basic Sanitation 3.802 3.771 3.802 4.248 4.801 5.500Total (R$ million) 55.802 62.165 74.829 76.518 89.700 86.640Total (US$ million) 30.493 33.967 40.890 41.813 49.016 47.344

SECTOR2008 Prices - (R$ million)

Note : 1) 2008 (E) Estimated

4) 2008 Prices: Figures updated by inflation indicator over the period3) Requered investment for the next years = R$ 108.4 billion / year2) US$ = R$ 1.83 (2008 average)


26

CHALLENGES

AND OPPORTUNITIES

BY SECTOR

27

ANNUAL INVESTMENT REQUIREMENT IN INFRASTRUCTURE

ELECTRIC POWERELECTRIC POWER R$ 21.2 billionR$ 21.2 billion

OIL AND GAS OIL AND GAS (*)(*) R$ 41.4 billionR$ 41.4 billion

TRANSPORT/ LOGISTICSTRANSPORT/ LOGISTICS R$ 21.8 billionR$ 21.8 billion

BASIC SANITATION BASIC SANITATION R$ 10.5 billionR$ 10.5 billion

TELECOMMUNICATIONS TELECOMMUNICATIONS (**)(**) R$ 13.5 billionR$ 13.5 billion

TOTALTOTAL R$ 108.4 billionR$ 108.4 billion

Notes: (*) E&P, dowstream, Gas and Energy

(**) Fixed and mobile telephony

28

CHALLENGES AND OPPORTUNITIES BY SECTOR

ELECTRIC POWER• 10- Year Expansion Plan for Energy (2008 – 2017)

Segment R$ Billion

TotalBillion

Generation Hydroelectric 30,977 MW R$ 70R$ 79

Thermoelectric 4,087 MW R$ 9

Transmission Lines 36,388 Km R$ 25

R$ 39Transformation Capacity

71, 357 MVA

R$ 14

Total R$ 118 R$ 118

Note: Projects not yet tendered

Source : EPE – Empresa de Pesquisa Energética

29

OIL AND GAS

INVESTMENT REQUIREMENT FOR E&P, DOWNSTREAM, GAS AND ENERGY (2009-2013)

-BRAZILPetrobrasPetrobras US$ 153.2 BillionUS$ 153.2 Billion

Private Investors Private Investors US$ 27.5 BillionUS$ 27.5 BillionTotalTotal US$ 180.7 BillionUS$ 180.7 Billion

Source: Petrobras, ABDIB, IBP


30

Source: 1) Petrobras, ABDIB

PETROBRAS INVESTMENT PLAN IN BRAZIL FOR INFRASTRUCTURE SEGMENTS

AreaArea SegmentSegment 2009-20132009-2013US$US$

TotalTotalUS$ US$

E&PE&PExplorationExploration 13.613.6

92.092.0DevelopmentDevelopment 60.660.6

Pre – Salt (layer) Santos basinPre – Salt (layer) Santos basin 17.817.8

DownstreamDownstream

RefineryRefinery 34.934.9

47.847.8Transport by seaTransport by sea 3.43.4Pipelines and TerminalsPipelines and Terminals 3.83.8PetrochemicalPetrochemical 5.75.7

Gas and EnergyGas and EnergyGasGas 8.28.2 10.610.6

EnergyEnergy 2.42.4

Biocombustible BiocombustibleBiocombustible 2.82.8 2.82.8

TotalTotal 153.2153.2 153.2153.2


31


TRANSPORT• National Transport and Logistic Plan projects investment over 2008 - 2023

Sectors Total Estimate(R$ Billion)

Roadways R$ 79.9

Railways R$ 60.5

Hidroways and River Harbours R$ 12.9

Airports R$ 30.0

Ports R$ 26.1

Total R$ 209.4

32

CHALLENGES AND OPPORTUNITIES BY SECTOR TELECOMMUNICATION

• Anatel projects that companies from this sector will invest R$ 250 billion over the next 10 years

Annual investment requirement for the next 20 yearsSegment (R$ Billion / year)

Water 3.9

Sewage Collection 4.6

Sewage Treatment 2.0

Total 10.5

BASIC SANITATION

33

INVESTMENTALTERNATIVES

34

Major Developing Countries as FDI Receivers:2005 – 2008 (US$ billion and % of world FDI inflows)

Source: WIR-UNCTAD and SOBEET Elaboration: ABDIB

Country

2005 2006 2007 2008

US$ billions % of word FDI US$ billions % of word

FDI US$ billions % of word FDI US$ billions % of word

FDI

ChinaChina 1º1º 72.472.4 7.9%7.9% 1º1º 69.569.5 5.3%5.3% 1º1º 83.583.5 4.6%4.6% 1•1• 92.492.4 6.4%6.4%

Hong KongHong Kong 2º2º 35.935.9 3.9%3.9% 2º2º 42.942.9 3.3%3.3% 2º2º 59.959.9 3.3%3.3% 3º3º 60.760.7 4.2%4.2%

Brazil 5º 15.1 1.6% 7º 18.8 1.5% 4º 34.6 1.9% 4º 41.7 2.9%

MexicoMexico 4º4º 18.118.1 2%2% 6º6º 19.019.0 1.5%1.5% 5º5º 24.724.7 1.4%1.4% 6º6º 20.720.7 1.4%1.4%

SingaporeSingapore 3º3º 20.120.1 2.2%2.2% 3º3º 24.224.2 1.9%1.9% 6º6º 24.124.1 1.4%1.4% 11º11º 10.310.3 0.7%0.7%

Russian FedRussian Fed 6º6º 14.614.6 1.6%1.6% 4º4º 28.728.7 2.2%2.2% 3º3º 52.552.5 2.9%2.9% 2º2º 61.761.7 4.3%4.3%

ChileChile 10º10º 6.76.7 0.7%0.7% 8º8º 8.08.0 0.6%0.6% 9º9º 14.514.5 0.8%0.8% 7º7º 17.817.8 1.2%1.2%

35

R$ Billion

2001 2002 2003 2004 2005 2006 2007 2008

Accumulated 2009

Jan - Feb

Agribusiness 2.8 4.5 4.6 6.9 4.1 3.4 5.0 5.6 0.7

Industry 9.6 14.0 14.1 13.1 18.5 19.6 18.0 30.1 2.4

Basic Industry 3.4 3.2 1.9 2.6 4.7 6.2 6.6 5.7 1.1

Commerce and Services

2.9 3.4 3.7 3.4 4.6 5.6 8.7 11.6 1.6

Infrastructure 6.5 12.3 9.2 13.9 15.2 16.6 26.6 37.9 3.8

Total 25.2 37.4 33.5 39.9 47.1 51.4 64.9 90.9 9.6

Share of basic industry (%)

13.5 8.6 5.7 6.5 10.0 12.1 10.2 6.3 11.5

Share of infrastructure (%)

25.8 32.9 27.5 34.8 32.2 32.3 41.0 41.7 39.6

%

BNDES Outlays by Activity - 2001 - 2009- (R$ billion and %)

Source: BNDES Elaboration: ABDIB

Activity

36

Mechanisms for long range Investment and Company’s development stage

Stocks

Mezzanine

Private Equity

Venture Capital

SeedCapital

Start-up Development Pre - Market NetMarket

CorporateStage

Marketplace/InvestmentMechanism

INVESTMENT FUNDS

37

INVESTMENT FUNDS

Direct Participation

participation with stocks with access to decisions

Investment Funds

Seed Capital: Business Plan company’s projects

Private Equity / Venture Capital: participation in small and medium size companies with business potential

Governance Fund: participation in open capital companies, with an effective influence on management

38

INVESTMENT FUNDS

Investment Funds (cont’d)

Mezzanine: combines debts (debentures, guarantees, etc.) with income (profit, bonus, etc.)

Participation: structured operation to participate in a specific investment project (ex. privatization, sector project, acquisition for restructuring)

39

INVESTMENT FUNDS Long range investment via FIP

investment possibility in medium size companies with potential for growth;

clear definition of the investment focus by the fund or its management;

pre-definition of all the ways to withdraw investment;

adoption of good practices of Corporate Governance;

Legislation already consolidated (391 and 3121);

40

INVESTMENT FUNDS Long range investment via FIP (cont’d)

new pattern for capital market (levels of governance and market access – Bovespa)

Larger number of managements;

More complete rules and participation in decisions to invest or disinvest.

41

INVESTMENT FUNDS PRIVATE EQUITY INFRASTRUCTURE FUNDS (PE/VC):PRIVATE EQUITY INFRASTRUCTURE FUNDS (PE/VC):

CHRONOLOGY OF BRAZILIAN MARKET CHRONOLOGY OF BRAZILIAN MARKET

42

INVESTMENT FUNDS

SECTOR FIGURES (2004/2008):SECTOR FIGURES (2004/2008):PRIVATE EQUITY - BRAZILPRIVATE EQUITY - BRAZIL

Committed Capital (US$ billion)

Source: FGV - Cepe

43

INVESTMENT FUNDS

Brazil owns a finance system more organized and developed than its BRIC partners;

It is the country where services have the largest share in its GDP (PE/VC sector in a privileged position);

Real interest rates going down Real interest rates going down (favorable environment for company’s acquisitions);

Favorable macro-economic aspectsFavorable macro-economic aspects: Institutional framework, such as laws on PPPs, on

bankruptcy and on CVM 391 updated 209; Quite positive exports and trade balance; Brazil was given the “investment grade”; Direct Foreign Investment is back to growth.

PRIVATE EQUITY INFRASTRUCTURE FUNDS (PE/VC): PRIVATE EQUITY INFRASTRUCTURE FUNDS (PE/VC): CURRENT OVERVIEWCURRENT OVERVIEW

44

INVESTMENT FUNDS

Internal Growth; Increasing presence of international investors; Chances of sector consolidation; Confirmation of the interest rate decrease allowing more

resource availability; Macroeconomic Stability; Adequate Regulatory framework; Favorable fiscal application

FUNDS WITH PARTICIPATION (PE/VC):FUNDS WITH PARTICIPATION (PE/VC):

SECTOR’S PERSPECTIVESSECTOR’S PERSPECTIVES

45

INVESTMENT FUNDS Investors in Private Equity Funds will spend more money in emerging markets in the next five years.

Brazil is 2nd. among the preferred onesPreference Global Ranking for Investors Capital of Brazilian Funds, in US$ Billion

Source: EMPEA and FGV - Cepe

46

INVESTMENT FUNDS IN INFRASTRUCTURE IN BRAZILFund

(Capital Investment)Approved Investment Sectors Investors

AG Angra Infraestrutura FIP (R$ 697 million)

R$ 140 Million in alcohol plant in Maranhão State

(Equity)

Water and Sanitation, Transport and Logistics, industrial infrastructure,

oil and gas.

Petros, BNDES, Funcef, Angra Partners, Banco do

Brasil

FIP Brasil Energia(R$ 740 milhões)

R$ 325 Million in electric power generation and distribution

(Equity)

Energy Funcef, Petros, BNDES, Real Grandeza, Banco do

Brasil, Fapes, Pactual, Banesprev e Infraprev

Infra Brasil FIP(R$ 620 million plus loan of R$ 146

million from IADB)

R$ 250 Million in hydro plants and environmental services

(Debentures, Equity and Bonuses)

Transport, Energy and Sanitation

BID, Funcef, Petros, Previ, Valia, Banesprev, Private Bank, Banco do

Brasil, BNDES

BRZ Logística(R$ 462 million)

R$ 243 Million in 3 port terminals projects in Santa Catarina State

(Equity)

Transport Funcef, Petros, Previ, Banco do Brasil, BNDES,

Fibra – Itaipú e Fundo Atlantico

Brasil Mezanino Infraestrutura – BMIF(R$ 387.5 million)

Under evaluation Infrastructure NA

FI – FGTS(R$ 11.7 billion)

R$ 500 Million for railway network expansion

Energy, Transport , Logistic and Sanitation

FGTS Board

47

PAC – GROWTH ACCELERATION PROGRAM (2007 – 2010)

PAC – Growth Acceleration Program is more than a program oriented to growth expansion. It represents a new concept in terms of investment in infrastructure which, allied to economic measures, will stimulate production sectors at the same time that will provide social benefits to all regions in the country. Such a huge program becomes feasible only through partnerships between the public sector and private investors, in addition to a constant articulation among all federative institutions. The concentrated development effort will be done in three decisive axles: Logistics infrastructure Energy infrastructure Social & Urban infrastructure

48

2007 – 2010 EXPECTED INVESTMENT (R$ Million)

1. ELECTRIC POWER1. ELECTRIC POWER 78,40078,4002. OIL & GAS2. OIL & GAS 179,000179,0003. BIOFUEL3. BIOFUEL 17,40017,4004. LOGISTICS4. LOGISTICS 47,69947,6995. NAVAL INDUSTRY5. NAVAL INDUSTRY 10,58110,5816. SOCIAL & URBAN6. SOCIAL & URBAN 64,50064,500

SUB-TOTALSUB-TOTAL 397,580397,580

7. HOUSING7. HOUSING 106,300106,300TOTALTOTAL 503,880*503,880*

* ABDIB first estimate: 40% private, 60% public


49

TOTAL PROJECTED INVESTMENT IN ENERGYTOTAL PROJECTED INVESTMENT IN ENERGY

ProgramProgramInvestment (R$ billion)Investment (R$ billion)

20072007 2008-102008-10 TOTALTOTAL AFTER 2010AFTER 2010

Electric Power GenerationElectric Power Generation 11,511,5 54,454,4 65,965,9 20,720,7

Electric Power TransmissionElectric Power Transmission 4,34,3 8,28,2 12,512,5 3,43,4

Oil and GasOil and Gas 35,935,9 143,1143,1 179,0179,0 138,1138,1

Renewable FuelsRenewable Fuels 3,33,3 14,114,1 17,417,4 27,027,0

TotalTotal 55,055,0 219,8219,8 274,8274,8 189,2189,2

Source: Federal Government


50

TOTAL PROJECTED INVESTMENT IN LOGISTICSTOTAL PROJECTED INVESTMENT IN LOGISTICSR$ MillionR$ Million

MODALMODAL 20072007 2008-20102008-2010 TOTALTOTALRoadwaysRoadways 8.0868.086 25.35225.352 33.43733.437

RailwaysRailways 1.6661.666 6.1976.197 7.8637.863

PortsPorts 684684 1.9791.979 2.6632.663

AirportsAirports 878878 2.1232.123 3.0013.001

HydrowaysHydroways 280280 455455 735735

Naval Industry Naval Industry 1.7791.779 8.8028.802 10.58110.581

TOTALTOTAL 13.37313.373 44.90744.907 58.28058.280



51

IN SOCIAL AND URBAN INFRASTRUCTUREIN SOCIAL AND URBAN INFRASTRUCTURE

R$ BillionR$ Billion

AREAAREAInvestmentInvestment

20072007 2008-102008-10 TotalTotal

Light for AllLight for All 4,34,3 4,44,4 8,78,7

SanitationSanitation 8,88,8 31,231,2 40,040,0

HousingHousing 27,527,5 78,878,8 106,3106,3

SubwaysSubways 0,70,7 2,42,4 3,13,1

Hydro ResourcesHydro Resources 2,32,3 10,410,4 12,712,7

TotalTotal 43,643,6 127,2127,2 170,8170,8

Federal Budget: R$ 34 billion (without “light for all”)Federal Budget: R$ 34 billion (without “light for all”)Public Financing (FGTS-FAT e BNDES): R$ 65,5 billionPublic Financing (FGTS-FAT e BNDES): R$ 65,5 billion



52

UPDATED PAC FIGURES – JAN. 2009UPDATED PAC FIGURES – JAN. 2009

R$ BillionR$ Billion

SegmentSegment 2007 – 20102007 – 2010 Increment up to Increment up to 20102010 2007-20102007-2010

LogisticsLogistics 58,358,3 37,737,7 96,096,0

EnergyEnergy 274,8274,8 20,220,2 295,0295,0

Social and UrbanSocial and Urban 170,8170,8 84,284,2 255,0255,0

TOTALTOTAL 503,9503,9 142,1142,1 646,0646,0



Note: 2009 increment is being detailed for all segments

53

Specific Objectives:

Development of a study showing all infrastructure installations necessary to hold 2014 World Cup in all candidate-cities

Analysis of the current infrastructure status in all candidate-cities in relation to FIFA requirements, and identifying the gaps

Cost estimate for infrastructure in each one of above installations

Building of a comparative scenario (Gap Analysis) between the study done by ABDIB and the investment plans at Federal level (including PAC), State, Municipal and Federal district levels, concerning actions to implement 2014 World Cup

Communication of results obtained and projects by a Unified Report to the Federal Government (Ministry of Sports), CBF, States and Municipalities, as well as communication of it through ABDIB website and other specialized publications

ABDIB – AGENDA WORLD CUP 2014

54

Main advantages of this program:

A real knowledge of all infrastructure works in general to be made in order to be able to hold 2014 World Cup in Brazil, by identifying the importance of the event itself and its permanent benefit to society (legacy);

Concrete financial information for seeking investors, partners and foster institutions;

Models to implement and operate each one of the identified works; Estimate of realistic timeframes to complete all mapped and analyzed

works; Transparency and independence with concern to recommended actions; Agility and efficiency on contracting and managing the investment

projects; Cost reduction and efficiency increase as result of implementing

recommendations; Recommendations on how to mitigate and monitor risks for both public

and private investment agents; Agility and effectiveness in process handling and management controls; Socio-economic and environmental feasibility of all projects necessary for

2014 World Cup in Brazil.

ADVANTAGES WORLD CUP 2014

55

ASSOCIAÇÃO BRASILEIRA DA ASSOCIAÇÃO BRASILEIRA DA INFRA - ESTRUTURA E INDÚSTRIAS DE BASEINFRA - ESTRUTURA E INDÚSTRIAS DE BASE

[email protected]@abdib.org.br

april 27, 2009

Documents

concession law law

arbitrage law law

ppps law

public sectorconcession

private enterprise

brazil infrastructure

private ways

legal support