infrastructure investor - brazil intelligence report

8/4/2019 Infrastructure Investor - Brazil Intelligence Report

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october 2011 | InfasuuInvs.m

For tHe WorLDS INFrAStrUctUre MArKetS

Bazan nllgn p

tHe bIG IDeASHow Brazil is luring private capital

PortS: trADING UPSubstantial investment as demand rises

teLecoMS:FILLING tHe GAPS

Why better networks will fuel growth

LeGAL FrAMeWorK:tHe PUbLIc INtereSt

Brazils embrace of arbitration

bANKING:LANDMArK DeALS

Eyes on the capital markets

eNerGY: GreeNDeVeLoPMeNt

The need for environmental responsibility

SPoNSorS:

SUPPorter:


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au PE

PEI is the leading financial information group dedicated

to the alternative asset classes of infrastructure, private

equity and real estate globally.

Two things set PEI apart. The first is our global remit.

The industries we cover are inherently international

and resolutely cross-border, and can only be covered

effectively by a publishing company that can connect with

them in every market and in any time zone. Thats why

PEI has offices in London, New York, Singapore and Hong

Kong, with a dedicated team in each location allowing

us to identify and analyse the markets big picture trends.

The second and most important difference is the quality

of our news, insight and intelligence. Our market-

leading publications include Infrastructure Investor and

www.infrastructureinvestor.com. Our agenda-setting

conferences attract the industrys top players from across

the world. Our library of books, directories and databases

provide vital know-how and analysis on fundamental

aspects of alternative assets.

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october 2011 ifrtrctre ietor: brazil intelligence report 1

xxxxxxxxxxxxxx xxxxxxxxxoctober2011

More order, more progress

Ordem e PrOgressO (Order nd Progress) is the ntionl

m h Fdv pul Bl. k k n h

hsy Bl nd yu dsv h sy nn snllystruggling to live up to these idels. Fst forwrd to the present, nd

yu wll nd pud nn mkng up ls m.

Pgss s d n h un sus Bl s n

h wlds ldng mgng mks. Th uny ss h

wlds svnh-lgs nmy y nmnl gss dms pd-

u (GDP), dng h Wld Bnk, nd h ghh-lgs

y puhsng pw py, dng h Cnl nllgn

agny. Mnwhl, d Jns hsng ls y Und

Nns nn ngng gll lds gh ddss

ulul nd lgus dns, ws sn s vdn Bls

gwng pll nun n h wld sg.

all wll nd gd. Bu whn ms h unys nsuu, pgss hs n lsspd hn n h s. as w p lswh n hs, h Infrastructure InvestorBl nll-

gn p , Bl s nkd 6nd u 39 uns gllly h pd -

h quly s nsuu (su: Wld Enm Fum). Gvn h s nd s gwh

s nmy, gh wh s mgn n h wld sg, h s sk dspy h

uny wsl wh. as wh n h mgng mks, mnnng n gwh s

n h uu wll dpnd n hs nsuu gp ng ddssd.

Th gd nws nsuu nvss s, us, h suh gp splls ppuny. n

h pgs h llw, w us n ss suh s ps (s p.), ngy (p.) nd nsp

(p.9) ssss psps nd nd ppuny plny. Jus n xmpl m u ndun

(p.4): Pns Gups Kn Hlln sys p pvsns lng vdu nd h uns

xpd m pnl mpvmns my vy v.

T un h nnl m, Bls pgss s n nsuu nvsmn dsnn

dpnds n p n s dlnss. and h, , h s m pmsm. F xmpl, B-

ls lgl mwk hs n ghnd up d nvss g m nd pn. as

Cs a. Gums P lw m Jusn, P, Olv & Tlmn advgds, ns n

h ndun: W hv shd m h d png h gvnmn l und-

sndng h h d pul ns dpnds n h ndng ns. H xpnds

n h ky ssu dspu slun n n l n p.4.

Ths s n glss v nnung duls. as w n, w nd snn s n

wh l m m sll nds pvdd nvss wll m wd wh n-

vsmn h lvl qud. and h n un h ppsd hgh-spd ull n

wn d Jn nd S Pul ld ny dds ng h gvnmn

dsgn h ng (s p.8).

Ovll, hwv, w hnk h dls pgss nd d ng dhd nd n h

nsuu sp wll ng h vnul wd. wll nw nv yu un h llw-

ng pgs n-hus us, xnl xp mmns nd nvws wh ky gvnmn

ls, dw yu wn nlusns.

Enjy h p,

andy Thmsn

Sn Ed

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Editorial Director:

Philip Borel

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Editor-at-Large:

David Snow

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Published by PEI Ltd.

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introductoryletter


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ifrtrctre ietor: brazil intelligence report october 2011

brazilintelligencereport2011contents

4. INTRODUCTIONtHINKING bIGBrazil is transforming the way it attracts investment as officials, eager

to launch major infrastructure reform, strive to build momentum

8. Q&a: JUaREZ MORaES E SILVa, aBRaTECeXPANDING to Meet DeMANDBrazil is seeing substantial investment in its ports as trade flourishes.

Juarez Moraes e Silva, president of the board at ABRATEC the

Association of Brazilian Container Terminal Operators in Public Ports explains the role his organisation is playing in developments

11. PORTS FOCUSPoteNtIAL bY tHe boAtLoADIn the ports sector, Brazils rapid growth and stable regulatoryframework, combined with a need for new infrastructure, are

attracting interest from both domestic and foreign investors

14. DISPUTE RESOLUTIONStePS IN tHe rIGHt DIrectIoNCesar A. Guimares Pereira explores how Brazil has gradually

come to embrace arbitration of disputes and why investors

should take comfort

15. INTERVIEW: PaOLO BERNaRDO, MINISTER OFCOMMUNICaTIONSPrIVAte FUNDS cAN DIAL INto teLecoMSAmplification of broadband networks and implementing fiber opticnetworks in medium-size cities are some of the goals outlined for

the development of Brazils telecommunications infrastructure

18. BaNKING FOCUS IHoW to StrUctUre SUcceSSFUL DeALSMauro Cavalcanti de Albuquerque of Banco Santander reveals

how the firm has devised landmark transaction structures insectors ranging from toll roads to oil & gas

21. BaNKING FOCUS IIbooSteD bY tHe cAPItAL MArKetSThe banking community in Brazil is seeing healthy deal flow,but cannot provide all of the infrastructure financing required.

That means an increased role for the capital markets, says

Eduardo Muller Borges of Banco Santander

22. ENERGY FOCUSHoW to KeeP brAZIL GreeNJoo Capobianco, former Secretary in Brazils Ministry of Environment,

explains the challenges of marrying infrastructure development withenvironmental responsibilities

25. INTERVIEW: JULIO BUENO,SECRETaRY OF ECONOMIC DEVELOPMENT

More tHAN A GAMeRios development will long outlast the World Cup and Olympics,thanks to broader economic changes and a wealth of industry,

according to Julio Bueno

27. LEGaL FOCUSALL-coMerS WeLcoMeForeign and domestic investors can expect equal treatment,

as well as strict enforcement of contracts in court. So saysMaral Justen Filho, founder and senior partner of Brazilian law

firm Justen, Pereira, Oliveira & Talamini

29. TRaNSPORT FOCUSbUILDING tHe bAcKboNe

Federal- and state-level transport regulators discuss some ofthe major concessions being granted in Brazil over the next

few years, and what role private investment can play

31. INTERVIEW: BENJaMIN ZYMLER, TCUtHe WAtcHDoGBenjamin Zymler, president of Brazils Court of Audit (TCU),

tells how adequate risk allocation is essential to successfulpublic-private partnerships

34. DaTa FILEbrAZIL: KeY FActS AND FIGUreSWe know that Brazil is a market with an under-developedinfrastructure, which therefore presents great opportunities

for investors theoretically at least. But what do the numbers

tell us?

15


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4 ifrtrctre ietor: brazil intelligence report october 2011

WItH tHE 2014 Wld Cup nd h 6 Olymp Gms dwng

n, Bl hs spn nly $87 lln (37 lln; $53 lln)

n pul wks sn Psdn Dlm uss k n Jnu-

y hs y. aund 75 pn hs m m pv nvs-

s nd s nd ll gvnmns.

Th undng d s p Bls u-y, $959 lln

spndng pln mpv ps, ps, ns, ngy suppls

nd unywd lvng ndns y 4.

Ov h ps dd, Bls mmmn mnnng

nd mpvng nsuu hs ld kp p wh s p-

dly xpndng nmy nd gwng s, sys Kn Hlln, wh

hds h S Pul Pns Gup, gll pv m-

ks mngmn m.

Wh suh nsuu gps, hwv, ms ppuny.

Th guln llws hgh uns hn n h dvlpd

mks, s h gvnmn s m nsd n ng n-

suu hn lmng nvss uns, sys Hlln.

Bynd h un spndng pln, Bl n uh pn s

vs pnl pv nvsmn y n-unng udd uls

nd pls, nlyss sy.

Thinking big

Brazil is transforming the way it attracts investment as officials, eager to launch major

infrastructure reform, strive to build momentum in Latin Americas largest economy.

Maria Galluccireports

introduction brazilintelligencereport2011


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introductionbrazilintelligencereport2011

AIrPortS, PortS: Herecomes tHe private sector

The irport industry witnessed mjor shke-

up l hs y whn h uss dmn-

istrtion sid it would offer privte compnies

nssns p v pssng m-

nls und h uny.

Pjs yplly g Bls ps

uhy n, whh mngs nly 7

pn ps n Bl nd uns

97 pn . Bu h w spng

vns nd n nsngly ml mddllss wll svly sn h lmd p

py Bls pnpl ps,

nd pv spndng s xpd spd

pjs lng.

an un pjd $39 ml-

ln p n S Gnl d amn

n nhn Bl, hs y h Wld

Cup, ws mmnn h m gng pss, wh h sng d

p h lns s $5.7 mlln.

Ols ls pln un lnsng ghs S Puls nn-

nl p, plus ps n Bsl nd Cmpns. Th gvnmn

uld nsun nssns hus n h s d J-

n nd Bl Hn, s wll.

ndusy nlyss sm h n nvsmn $5 lln

$34 lln wll ndd n h nx dd s p p-

y sv 3 mlln pssngs nnully, up m 3 mlln ps-

sngs dy.

ap pvsns lng vdu, Hlln sys, nd h -

uns xpd m pnl mpvmns my vy v.

n h ps s, h dmnsn s wkng n h ul

h qus pv ps wn mjy h g hndld

h mnl, sys Fnnd Gnl, mngng d Dy

Ovss nvsmns pv quy nd mnn nn vs

n Bl.

Nw h ul s ng hngd, s n nvs n uld nw

p nd l ll ss lns, h sys, nng h pu-

lly wnd whuss, l ls nd h p svs wll ls

pnd nssns m pv ms.

Mj xpnsns undwy h au ndusl p n h

nh d Jn s, h lgs mplx s knd n n

am.

Nhlnds yl Bskls Wsmns n augus wn $46

mlln n nsun nw p mnl au, nd

an, Spnsh nsuu nglm, wn n

ngn, dsgn nd uld h kw shpyd h, wh

xpndu xpd p $93 mlln.

reAL eStAte:rooms available

Th l s s s mkng sds mmd h unys

ugnng mddl lss. Sm 36 mlln ppl s mddl lss

sus n h ps dd, nd n ddnl 36 mlln xpd

jn y 4.

Jqum ndn, mngng d ads, gll h-

u nd dsgn m n S Pul, sys h ll nnl mks n

n ys hv md vll h susn sss m-

gg-kd sus, whh n s lqudy nd shn vy

pds n nvsmn. Nw mgg mwks llw nvss

lm l s sld nns wh dn py.

Th Bln sus xhng, CVM, s ls ppng nw

uls h wuld qu l s unds p ny hngs n h

mk vlu h pps. Fund mngs sy h hs ns-

pny uld llw h nvsmn uss gw quk nd nsp

nvs ndn.

ndusy sms sy h num Blns skng uy

ppy wll jump 9. mlln y h nd hs y, up m 4.

mlln n 9.

ndn ns h, n ddn nd S Pul, nvsmns

pung n Bsl nd nh-sn s suh s Slvd nd

, s wll s h mdum-sd s, wh nwund nm

pspy s kng hld.

Bls husng--ll pgmm whh lls nly $79

lln h nsuu pln lw-nm mls sys h

p-ppvl h dvlpmn 86, hms shuld und-

wy hs y, wh h ulk pps plnnd h nh nd

suh-s gns.

so Paolo Intrnational Airport: auction plan


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introduction brazilintelligencereport2011

Tusm s ls n pv nvsmns n ppy.

aund . mlln hl ms unly vll nnwd,

u 5.4 mlln m wll ndd y kp up wh h

sng num dms nd gn uss h pss hugh

Bl h y n mnn h 6, gns pjd

nd h Wld Cup mhs.

Fnh hl mng a nly sd wuld spnd $46

mlln dd 5, hl ms hughu Bl n h nx w

ys. and ndn ns h dmnd md- lw-ng hls

s sng mng dms vls.

oIL, WIND PoWer: bonanza in sigHt

a $366 lln spndng pgmm y s l gn Pl B-

sl, Ps, hs dwn mny nvss ys h l nd

gs ndusy.

Th nvsmn pln 5 wll nl Ps

dll xply wlls n p-sl sh svs, s wll s -

l s s mp xpln ppuns n h Cmps

sn, h s d Jn.

Thy nd vyhng, Dys Gnl sys Ps, -

ng nw ns nd nks, plms, shps nd mnnn

qupmn l h nw pjs.

a l unds lk us sng ppuns nvs n

smll mpns h suppls svs nd qupmn

Ps, h sys.

Oppuns n nwl ngy pully wnd pw

lng h sn s ls plny. Th Bln wnd m-

k s n k h , mgws (MW) n nslld py

hs y, nd ndusy ls sm h up 5, MW wnd

pw wll nslld y 5.

T dvlps nd hlp h s nnl ln ngy

gls, Bl s ng nnvs wnd ms hugh n Engy

Dvlpmn aun s wll s spl nnng v h Bln

Nnl Dvlpmn Bnk (BNDES).

Dnsh wnd un mk Vss sys xps s s Bln

ssmly pln n Fl pnl n h uh qu

hs y. Th mnuus l py nnund m nd

unndnl ds n Bl wll p m hn 6 MW hs y.

Gmnys Smns hs n mmssnd y uly Tl

Eng pvd l 45 MW n un py v

pjs n w nh-sn ss.

Bn Vnm, Bln nn hus, s pdly plnnng

s up $. lln h pv quy unds h wll mnly

g wnd ms, mss plns nd smll hydpw pjs.

StADIUMS, rAIL: cHallenges aHead

Bls nsuu dvlpmn sgy, hwv, hs n n

whu hups.

n md-July, n un uld 5-klm ull n -

wn S Pul nd d Jn ld ny dds,

sulng n h hd pspnmn sn ls Nvm.

Bln ns ls sd h gn ms nd Bln

mpns suggld m nsum uld h pj, -

qumn plng ds. Th gvnmn sms h n wll

s $38 lln, hugh h pv s xps ss uld h

s hgh s $9 lln nd hus hp wy ply.

Th ddng pss wll nw spl n w uns. Th s

wll hs h p nd hnlgy h hgh-spd ns nd

uld k pl l hs y. Th snd sg s sl n-

sun m n .

Cnsun n h l s lkly s n 3, wh ls

Capo bain: exploration opportunities

Plannd Itaquro stadiu: will it be built on time?


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introductionbrazilintelligencereport2011

skpl wll nshd hd h 6 Olymp Gms.

Wld Cup pjs hv ls d sm Jm Vl-

k, sy gnl F, lls gvnng dy, xpssd

nn u sv dlys n sdum nd p nsun n

h unmns hs s.

Only w 3 mnls unly n k nsh h

xpnsn wk hd h Wld Cup, dng Bls ns-

u appld Enm sh.

Odh, s-un ngnng nps, nnund n

My h wuld s nsun n h qu Sdum n S

Pul h sm dy h Vlk pdly hnd lv S

Pul u h Wld Cup du dlys. Th 65,-py s-

dum s smd s $65 mlln, nly w-hds whh

wll m m BNDES.

Bls sps mnsy, hwv, sys s ndn h nsu-

n nd nvn wk n h sdums wll wppd up y

3, nd h sdums wll hs mhs h Cnd-

ns Cup h sm y.

Bl s nvsng sm $3 lln n sdums, ps, un

ns nd ps h Wld Cup. Ols np h nmy

wll gw y ls $4 lln s sul pul nd pv n-

suu nvsmns, nsd nsumpn nd x lln

gnd y h unmn.

Dys Gnl sys h s ndn h Bl wll dy hs

h spng vns.

wll ls mnu, h wll s vuns, u Bl wll

dlv, h sys. Th pv s lvs h h gvnmn wll

d vyhng pssl pu n gd h s h wld.

SANItAtIoN, SeWAGe: investors still wary

Gnl ns h w, snn nd swg mngmn mn

vy vsl gp n Bln nsuu nvsmn.

n my vw, h s h s h ply qus h ms n-

vsmn, n slu dll l ms, h nnus, u pv

nvss jus dn y l ml nugh wh h guly

nvnmn.

Mny w nd swg pjs mngd h munpl

lvl, wh ll plns nus wkng gnng

ns s hy s , h mnns.

a h dl nd s lvl, hwv, us nsngly

png nd nng ns pvd h lgl m

ndd spu pv nvsmn, sys Cs a. Gums P

lw m Jusn, P, Olv & Tlmn advgds.

H sd h us n Bls vl lw lgl sysm, whh ld y

h Supm Cu (STF) nd h Sup Cu Jus (STJ),

shwng hy undsnd h nvsmns sd n lgl sly.

l-sl nvsmns n nssly unsl, h ddd.

Ss lk S Pul nd Mns Gs hv lng hsy m-

plx ns nd pul-pv pnshps nd hv shwn h

hy l und wh hy sgn. Ths ndny s spdng h

ll gvnmns, pully ll nsuu pjs h

v dl undng nd hus lgd mply wh dl

n gudlns.

W hv shd m h d png h gvnmn

l undsndng h h d pul ns dpnds n h

ndng ns, h sys. n

Brailia:investment pouring in


10/40


juarezmoraesesilva| presidentoftheboard| abratecsponsoredq&a

WHEN WAS ABRAtEC EStABLISHED

AND WHY?

JMS: Considering the relevnce of the ctivity of

nns h Bln nmy, w l h

nd m aBaTEC n . ws d

psn mpns h p nn

mnls pul us, und ls nsgnd y h dl gvnmn pn

public tenders. aBaTEC cts on behlf of such

compnies to estblish institutionl reltions with

pul nd pv ns whh dly

ndly nvlvd n h p usnss.

Th nn mnls pul us, p-

snd y aBaTEC, w spnsl 74

pn nn hndlng n Bl n .

n h pd 995 , hy nvsd $.5

lln nd pln h $5 lln y 5.

WHAt ARE YOuR KEY PRIORItIES At tHE

CuRRENt tImE?

JMS: Ou un ps nsu h s-

bility of the regultory frmework nd to cooper-

te institutionlly with the competent government

gns n ky ssus, nmly h dvnmn

p xpnsn pjs aBaTEC m-

nls nd the possible upcoming rounds of public

nds nw nn mnls nnund

by federl uthorities in the specilist press. Such

xpnsn s nssy ddss h gwh

foreign trde nd the new continer ships, which

nsng n s nd pyld py. n

ddn, gvn Bls nm gwh, h

dl gvnmn s xpd lunh pul

ddngs lss nw nn mnls.

Th dms nd nnnl gups nvlvd

in the Brzilin continer mrket nd flited to

aBaTEC wng hs pss s n

d quly nd k p n h spnd-

ng nd pdus.

WHAt IS tHE REGuLAtORY ENvIRON-

mENt LIKE fOR CONtAINER tERmINAL

OPERAtORS? IN WHAt WAYS mIGHt It BE

ImPROvED fuRtHER?

JMS: The regultory frmework is cler nd

stble. The port terminls operted by pri-

vte compnies ct in ccordnce with their

spv lgl gms. Tmnls lsd

pul us pvd unlmd svs

to third prties, tht is, public services; ter-mnls uhsd pv us hndl

xlusvly msly h wn g, nd

only in complementry mnner will they

hndl g lngng hd ps.

Th mnls psnd y

aBaTEC mply wh h ppll

gulns. Thy nn mp-

msd y h ndqu pn

h mnls gnlly uhsd

pv us u whh mp pvd

unlmd pul svs.

YOuR WEBSItE REfERS tO A PORt

mODERNISAtION LAW tHAt CRE-

AtED SEvERAL NEW ASSOCIAtIONS

fOR PORtS IN BRAzIL. COuLD YOu

tALK ABOut tHAt LAW AND WHAt

EffECtS It HAS HAD IN tERmS Of

PORt ExPANSION PROjECtS IN RE-

CENt YEARS? HOW HAS tHAt LAW

AffECtED PRIvAtE INvEStmENt IN

PORt INfRAStRuCtuRE?

JMS: n h ls w dds, h Bln

p s hs undgn mdns.

n pul, w n. 8.63/93 ugh

mpn nw gudlns h s,

splly n sp xpln nd

dmnsn ps. W mus k

n h h nw lw ss h l

dnn vs whh p p-

s llwd nggd n nd

h yps lgl ngmns (lss

nd uhsns). w n. .33/

complemented nd clried such chnges,

completing the bsic regultory frmework

h s.

Expanding to meet demand

Brazil is seeing substantial investment in its ports as trade flourishes.Juarez Moraes e Silva,president of the board at ABRATEC the Association of Brazilian Container Terminal

Operators in Public Ports explains the role his organisation is playing in developments

mora silva: regulatory frameworkclear and stable

Such expansion is

necessary to address

the growth of foreign

trade and the new

container ships, whichare increasing in size

and payload capacity


11/40


12/40


sponsoredq&a juarezmoraesesilva| presidentoftheboard| abratec

w n. 8.63/93, h P Mdns-

n a, s undnly lvn us sd h pvsn pss p

pns. Up h pn, p p-

ns w pmd y h vus Dks

Cmpns (Cmpnhs Ds). n

nn vs, h dl gvn-

mn hs sn 993 d u num-

us ddngs pul p s nndd

nn mnls. Th pvsn

svs ws llwd y nvsmns,

hnlgl nnvn, pduvy m-

pvmn, dun n uuy nd

hng n h pl/wk lnshp.Th mdl ws xmly sussul. Th

hndlng nns n Bl s xpnng nsn gwh. n

, 4,794,74 nn uns w hndld.

Psly n dn wh hs nsunl mdl, p sv-

s nw nly pvsd, nludng h nn mnls

pul us xpld und lss gnd m 995 n. Pvsn

llwd nvsmns n vl wks (nsun nd ns

dkng hs nd sg s), h qusn mdn qup-

mn nd h qulns s. Ths hs nsud h

gwh p vy wh h quly qud y uss.

aBaTEC ms pv nvsmn n h p s. all

s ld mpns pv gnsns nd s h p-

ns n dms nd gn pv pl. Pv nvsmns

wlm nd shuld nugd y nsung lgl nd g-

uly sly. Dsp sm mps g und h guly

mwk, h p s hs pvn v pv

nvsmn. s vlng h gnld nd xpnsn nvsmn

pjs wh lms $6 lln (.6 lln; $3.8 lln) hv l-

dy n sumd h mpn uhs xmnn

nd pssl ppvl.

Bsd n h guly mwk n , lsng mpns

nn mnls pul us hv sussully m pu-

l mpns. n s PO, Sns-Bsl J.C.P., h p Tn

Sns, sd $933.4 mlln. Th Wlsn, Sns Gup, whh p-

s h mnls Gnd Slvd, sd $75.9 ml-

ln. g-n gs nmdl, wn h nn mnl

Vl Vlh, n h s Esp Sn, sd $848. mlln.

Th unds h w sd ld $.5 lln, gnng msly

m usd h uny nd whh wll g wds nnung n-

s h py g hndlng n mnls, h n

p vy nd Bln gn d. s xpd h h

nn mnls pul us wll hv sks dd n h s-

us xhng. Th ns pssl nvss wll nssly

nund y h sly h guly mwk.

Pully h nmn ws n. 8.63/93 nd

.33/, h Bln p s llws h mdl gnsd

wldwd. Th gvnmn s spns-

l h guln, sg plnnngnd nsuu wks lnd nd

wwy ss mmn ll m-

nls. Th pns d u y

pv mpns und ls ns

nd n y mns pn pul

ddngs.

assssmn h nsuu

nds h p s whn h

sp h nw mdl mngmn

nnl ps suld n h p-

sn ddgng, whh s ssnl

Bln ps l v hlg vssls h dd n us h ps

h Suhn Cn.

a h Nnl Ddgng Pgm (PND) ws slshd,

nnnl mpns w hd y u h dpnng

nd h mnnn ss nls h ps. Th ps

Gnd, ang ds s, au, Slvd, gu nd l-

dy n h mnnn phs nd h ddgng hs nw n x-

ndd h ps d Jn, Sns, Pngu, Fl,

Nl, Sup, Cdl nd S Fns d Sul.

Th nvsmns h PND, smd $.6 lln, w n-

ludd n h Gwh aln Pln (PaC), gh wh h

wks h mnnn, upn nd ns p n-

suu nd h mpvmn lgs ny n Bln

ps. n l, h nvsmn wll h $7.6 lln, n w phss;

PaC nd PaC .

n h s phs, lsd n , $3.45 lln ws ppld nd,

wh ldy gund unds, wh s lld PaC , d

u m 4, wll nvs nh $4.5 lln, kng

ddgng ps h hv n y n ndd , suh s M,

nd gvng nnuy h wk h gn n ps suh s d

Jn nd Sns.

kws, nsun nd upn nsuu wks

wll ns p py, dpng nw vssl ss nd mpv-

ng ss ps, whl xpd nvsmn n lgss mng-

mn llws h pdn 5 pn dun n wng m

shps, s sul us dkng hs nd qupmn.

WHAt DO YOu SEE AS tHE mAIN CHALLENGES fOR ABRAtEC

IN tHE YEARS AHEAD?

JMS: aBaTEC, hugh s nsunl pn, wll ll

wh ssd mpns n h mng unds pul nds

nd uns nw nn mnls, xpd lunhd

y h dl gvnmn n h n uu. wll ls ll

with compnies for the pprovl of terminl expnsion projects. These

inititives re indispensble for meeting the rising demnds of Brzil-

n gn d. n

Expected investmentin logistics management

allows the prediction of

a 25 percent reduction in

waiting time for ships


13/40


portsfocus

WItHOut A DOuBt, shppng us h wld v hngng.

Nw vssls, nsd lvls d, snghnng nms

n dvlpng uns, nd pul vns suh s h dn-

ng h Pnm Cnl, ll ng nw dmnds n shppng

nd nn mnls ss h gl.

Bl, whh hs dnlly n dsdvng n ms

vng ss-uns m h Es-Ws d wn dvl-

pd nns n Eup nd h US, s psd gw. Th un-

y hs d mny hllngs n dvlpng s p nsuu,

whh s nkd 3 u 39 uns n h Wld Enm F-

ums ms n mpvnss suvy.

Bu h pnl nvsmn n Bls ps s s

gwng nd s n gng unnd. Th ps nd wwys

gul (aNTaQ) s unly nlysng und $6 lln

(.6 lln; $3.8 lln) wh nw nvsmns n h s.

WAtERSHED CHANGES

Th dl gwh ln pgmm (PaC) lunhd n 7

und h gudn Bls m psdn u n ul d

Slv hs md nsuu dvlpmn n h unys p

ps, nd h PaC nluds n xnsv mmmn dvlp-

ng ps, dung vssls ns m nd xpndng mnls. Th

pgmm hs d nvsmns dpn nd dn ss

nls ps nludng Gnd nd gu, nd hs nw n

xndd nlud ddgng pjs d Jn, Pngu,

Nl nd h lns. Th Bln Mnsy Ps (SEP) ms

nvs u $5.3 lln n 66 pjs s p vll ps nvs-

mn n h PaC pln, dng n p n Valor Econmico.

Expnsn pjs Sns, n h s S Pul, nd Sp-

, n d Jn, jus w xmpls Bls mmmn

pd gwh n h ps s, usng sus nd knwldg m

h dms nd nnnl mpns, s wll s dvlpmn

nsuns lk h nnnl Fnn Cpn, whh l

hs y mlsd lns $679 mlln supp $98 mlln x-

pnsn pj Sns, mkng h Wld Bnk ls lgs-

v ps nvsmn.

Th glmy nm kdp n h US nd Eup sms

n hv lghd n Bl, whs d ws hv nly qud-

upld m $ lln $37 lln sn 996. Fm u

.5 mlln nns n 996, h l sh up v 4.5 mlln

nns y 8. Ths gus dppd shply n 9, u

undd qukly s wll.

nvss sy h unys snghnng nnl pl m-

k, gwng nsum lss nd pd nduslsn hld h

pms lng-m, susnd gwh.

Th wdnng h Pnm Cnl wll m nw

mg-vssls, s wll s m nw gwh n Bls ps. Th vs-

sls h 96s nd 97s, wh py u ,7 sndd-s

nns, wll gv wy sup-s s-lld Pnmx shps wh

py 5, nns. and hs shps uld undmnlly

l p suus hughu n am nd h wld.

n h h s n dmnd Bln gn d

nd s s m h nds h nw gg shps h

sd us Bln ps, h xpnsn mnls nd h

lunh nds nw mnls h ms ugn msus,

sys Ju Ms Slv, wh hs h d h pul-

us nn mnl d ssn aBaTEC (ass

Potential by the boatloadIn the ports sector, Brazils rapid growth and stable regulatory framework,

combined with a need for new infrastructure, are attracting interest from both

domestic and foreign investors

Panaa Canal: widening will create

room for mega-vessels


14/40


portsfocus

Bsl ds Tmns d Cnns d

Us Pl).

n hs sns, sm mnls psnd y

aBaTEC hv ldy d u h xpn-

sn, whl h xpnsns und xmn-

n y h p s gul wng

pmssn m h nvnmnl uhy,

Ms Slv nnus.

Cnn mnls ps nludng h

Wlsn, Sns Gup nd Sns-Bsl, hv ls

hd sussul nl pul ngs n n

ys, sng l u $.5 lln pl h n hn n-

vsd n h ps s.

StABLE INtERESt

Ops psnd y aBaTEC ln hv nvsd $.5 lln n

nn mnls v h ps 5 ys nd pln nvsmns

u $5 lln y 5, dng Ms Slv.

ns n h ps s m h gn nd ll pv quy

ms s ls gwng. On n xmpl s Bsn-sd advn n-

nnl, whh nnund n Jnuy h wuld qu 5 pn

sk n Tmnl d Cnns d Pngu, Bls hd-lgs n-

n mnl, hugh h ms h n am-ddd und.

Th nvsmn mkd advns s mmmn Bln nsu-

u nd h lgs dl h m hd dn n Bl up h pn. Th

ms plns Pngu, ld n suhn Bl, nlud nsu-

ng n x h nd qung nw qupmn mmd g

nn vlum nd ns py y u 7 pn, advn sd

n Jnuy.

Bln m Gv nvsmns hs ls mmd h gwh

ps nd ps-ld lgss n h uny. Gv nvsd n mn

mnl nd dy p p Mulmns n 6 nd md sus-

qun xpnsns nd nsuu upgds. n Gv, gh

wh TPG, nvsd n um gs, lgss m whs wk nluds

dvlpmn p-ld nsuu.

a num qusns s: Why s Bl

n suh gd psn ns s py?

Why s n gd psn n m nw

dvlpmns, nd why s h ps s -

ng suh ns?

ap m nm gwh nd h sp-

hngs mnnd v, w pssl

sns h ps mdnsn lw nd

sl guly mwk.

Th 993 P Mdnsn w d

mpn nw gudlns h s, wh

gd h xpnsn nd dmnsn, dng Ms

Slv. Th lw slshd l dnns vs pmd p

ps nd llwd p svs pvsd, h sys.

Th pvsn llwd nvsmns n vl wks (nsu-

n nd ns dkng hs nd sg s), h qusn

mdn qupmn nd h quln humn sus, Ms

Slv sys. Ths hs nsud h gwh p vy wh h quly

qud y uss.

anh pnl sn why pv quy ms nd hs nvs-

s my dwn ps s h nsng guly sly h

mk.

Th guly mwk s py muh n pl ldy, sys S-

g Slm, xuv psdn aBaTEC. My h hllng

wuld kp h guly mwk n pl lng nugh

nvss hv lng sly. Bu h nly ms wh m.

Th mwk s ldy h - slly w jus nd us . all

h ps h wsh nvs n p s my d s, Slm nnus.

Thy n h nvs m hy ldy lgm ps n

hs mk hy n g n h mk y usng n h nsu-

mns h hs guly mwk s. Th dqu nsu-

mns h knd vy dvlpd.

Ths sly, mnd wh h d supp m pul gn-

s nd nsng nvsmns m pv ps, hv l mny

pms u h pssly vmng h hllngs ng B-

ls ps. n

The framework is already

there - basically we just need

to use it. All the parties that

wish to invest in port areas

may do so

Trinal d Continr d Paranau: Advents first Brazilian infra deal


15/40


16/40


fOR A LONG m, n ws n usul

m dspu slun n Bl du p-

dul duls. a nw n lw ws

nd n 996, u m n ull pl

ppliction only fter 2001, when the STF [Br-

zilin Supreme Court] rejected constitutionl

hllng gns h lw. n , Bl -

d h Nw Yk Cnvnn 958. Sn

hn, aD (lnv dspu slun) hs

n hvng.n 9, CBa [Bln an Cm-

m], n n hnk-nk, ssud -

p n whh xmnd lms 8 s nd

dl u ulngs m 996 8 nvlv-

ng n. Ms lg-sl ns nw

pvd n, nd h nsuu

s s n xpn. Sn h uny s n mm CSD

[h nnnl Cn h Slmn nvsmn Dspus],

dms nd nnnl n plys n ssnl p n h p-

n nvsmns n Bl.

muLtItuDE Of AGREEmENtS

nfrstructure contrcts, often developed under project nnce rrnge-

mns, yplly nvlv mulud gmns. Ms hm

puly pv, suh s nsun ns nd nsun pls.

However, some of the key contrcts re directly or indirectly linked to the

gvnmn. n mny ss, h s hnd s suj s gvn-

mn gulns, whh h susn h ns. n hs,

h vy d u s h gvnmn mnply (suh

s l nd gs) pul sv (.g., w supply, ngy ps).

Th mn n n n nsuu ngmn s n gv-

nmn nssn (nhs), gnd pul nd. Oh

gvnmn ns my ls h. BNDES, Bls gvnmn-

wnd dvlpmn nk, s mmnly n hg undng lg

p nsuu pjs. Pusun Bln lw, suh gvn-

mn ns h ppln pul s uls ds-

nly dn m hs ppll pv ns.

n pv ns Bln n lw nd p

nssn wh hs xsng n ms h n-ndly jus-

dns, h m n k ws wh gvnmn ns

nvlvd. Cn lw splss wll gu h ms pul n-

s nn suj n, nd hs pms ld sm us,

nludng h Bln Cu auns (TCU), nlly j l-

gh h pssly n n gvnmn ns. Fu-

nly gn nd dms nvss nd ns, h pps

vw hs sn pvld.

n h wk h Sup Cu Jus-

(STJ) ulngs 5 nd 6 n ss

ss nvlvng pw puhs gmns

nd p s n, n n n

gvnmn ns hs m mmn-

pl. w shls nd us gnlly j

h pvus jns nd nsd dms-

sl nul nnl lms s-

ld y n. Suh u ulngs ndh h Bln n lw 996 gv

sun ss n n gvnmn

ns nd n sp suy pvsn

ws qud.

Evn s, svl dl nd s sus,

h gnl ppll sp ss,

hv xpssly pvdd n. Th ms mphnsv x-

mpls hs ws .79 (pul-pv pnshps/PPPs)

nd .96 (gvnmn nssns), 4 nd 5. Thy s-

lsh sp qumns: h n mus ndud n Pu-

gus nd n Bl. Th s n sl gns h us n nn-

nl n n, pvdd h h pdngs k pl n

Bl whh, und Bln n lw, mks h um

dms wd, n suj gnn p nmn. Th

ppll ml lw n gvnmn ns wll gnlly Bl-

n lw, u pul pumn gulns llw sm lud n h

h lw nd um n sm nnnl ns (l 3,

6, w 8.666).

Th nhussm nnng n n nsuu ns

hs ld ll sus gulng n gmns nd n

y s nd ll gvnmns. Th s Mns Gs, guly

h ms v n Bl n yng u PPPs, nd w 9.477 n

. alhugh h guls lsly h susn h n

gmn nd h s sm pdul duls, shuld

psd h s mmmn psns.

an, lk aD mhds n gnl, s u dm, us

nd unly, nd hs nsls n gd h. a ll lvls

gvnmn, Bl hs lnd h, y shwng lly nd nsllng

ndn, wll nvsmn nd nvss. Enugng nd

dvnng n s m dspu slun sps n h

gh dn. n

1 Cesar A. Guimares Pereira is a partner at Justen, Pereira, Oliveira & Talamini

and director of CAIEP, an arbitration centre based in Curitiba, Brazil. Email: cesar@

justen.com.br. The author has co-edited Infrastructure Law of Brazil (2nd edition,

2011) and Arbitragem e Poder Pblico [Arbitration and State Parties] (2010), where

the reader may nd a more at-length discussion of the subject matters of this article

sponsoredarticle disputeresolution

Steps in the right directionCesar A. Guimares Pereira1 explores how Brazil has gradually come to embrace arbitration of

disputes and why investors should take comfort

Car A. guiar Prira


17/40


paulobernardo| ministerofcommunications interview

ARE tHERE PARtICuLAR tARGEtS IN

PLACE fOR tHE DEvELOPmENt Of

INtERNEt OR tELECOmmuNICAtIONS

INfRAStRuCtuRE OvER tHE NExt

SEvERAL YEARS? If SO, WHAt ARE

tHOSE tARGEtS?

PB: Ys. Th gvnmn jvs nln h nnlsn h d-

nd nwk Tls unl 4, whh

shll directly provide services to t lest 4,283

municiplities in 2014. Tody, there is bck-

hul n dnd ll Bln mun-

pls, dsp h h sll nd

sll nnn sd n ggphl

ln.

Whn hs gl, Tls shll n

n pnshps wh pv mpns

h mplmnn p ns-

p nwks n mdum-sd s whh

sll n quppd wh hs yp n-

suu. Th lmmunns ns-

sns, ls, mmd ng

dnd ss plns Mps (mg

p snd) $35. n vy munpl-

y, whh, nully, wll qu n mpl-

n dnd nsp nwks,

mnly khul.

WHAt ARE tHE tARGEtED

AmOuNtS Of PuBLIC fuNDING fOR

COmmuNICAtIONS INfRAStRuCtuRE,

AND IS tHERE A LACK Of SuCH

fuNDING? IS PuBLIC fuNDING - OR

ARE PLANNED PuBLIC-PRIvAtE

PARtNERSHIPS - SuffICIENt tO

mEEt tARGEtED INvEStmENt LEvELS

fOR tHE COmmuNICAtIONS SECtOR?

PB: Bl hs, dy, nugh nnl

resources to meet the gols tht were set out.

Th mny wys n whh hs nvs-

mn n lmmunns nsuu

hs n kng pl hugh h s.

Fs, hs n dn dly, hugh

Tls, whh wll nsu kn

h wll h ll h Bln ss

nd 4,83 munpls. s pj

whh Tls wll hv s dspsl $

lln p y unl 4.

Sndly h Nnl Enm

nd Sl Dvlpmn Bnk (BNDES), whh hs lns d wh pplng

ns s h my kn u y

ny lmmunns mpny n B-

l. s smd h, unl 4, $6.5

lln hs lns d BNDES

wll usd qung lmmun-

ns qupmn. Th nk ls hs lns

gd wds smll nd m-pvds,

whh ln $ lln s smd

unl 4.

Thdly, h s hs pul unds

h nu sus lmmun-

ns nsuu dvlpmn, sp-

lly h Fund Thnlgl Dvlp-

mn Tlmmunns (FUNTTE),

gd wds sh, dvlpmn

nd nnvn, h shuld nvs und

$.75 lln unl 4. Pul undng,

hwv, s n sun ld Bl

wh w wn g. Th gwh p-

v kns nd, splly, h mpl-

n mpln dnd ss

nwks nvsmns h wll md,

msly, y pv nps.

WHAt ARE tHE PROSPECtS fOR tHE

DEvELOPmENt Of A fIBER OPtIC

NEtWORK IN BRAzIL? WHAt DO YOu

ExPECt tO BE tHE ROLE Of tHE

PuBLIC SECtOR IN tHIS fIELD?

PB: Bl dy ldy hs lvly lg

ber optic networks t its disposl; however,

h mpy sps, whh nly

ssd hugh d lnks hugh

slls. Mny hs vuums d n

hv ply psps m

Private funds can dial into telecomsAmplification of broadband networks and implementing fiber optic networks in medium-size

cities are some of the goals outlined for the development of Brazils telecommunications

infrastructure. Communications MinisterPaulo Bernardo discusses the governments

ambitions and the role private investors can play

Brnardo:public funding not sufficient

fornd

The growth of

private backbones

and, especially,

the amplification

of metropolitanbroadband access

networks are

investments that will

be made, mostly, by

private enterprise


18/40


interview paulobernardo| ministerofcommunications

nvs n. Nnhlss, hs s m sl pns whn

jn nd shd nvsmn n p khul s pmd.

Th pul s wll hv sng l n hs lnkg nd ndu-

n shd nvsmns. Pv mpns hv ldy n

dng hs n Bl n n ss nd h gvnmn wns

nnsy hs sgy.

WHAt ROLE DO YOu SEE PRIvAtE INvEStORS OR PRIvAtE

INfRAStRuCtuRE fuNDS PLAYING IN tHE DEvELOPmENt

Of NEW COmmuNICAtIONS SYStEmS?

PB: Privte funds hve very importnt role in the re of innovtion

in the development of services, systems nd over-the-top products for

dvnced mrkets. They hve lso been developing more robust nd

efcient technologies, which improves the performnce nd reduces

h ss ss mns nsmssn, suh s ds, sl-

ls nd spl ny n gnl, n ddn h py

nsmssn p [ls], sumn ls, .

Mv, pv nvss hv h mpn l yng

u mpn ns n hs mk vng mks h

n svd h nsdd mnmlly pplng h

sll mny hs n Bl. [Bln Tlmmunns agn-

y] aNaTE wll lunh ss uns d quns

h wll llw, lvly lw s, m mpn n h

ss. Th wll ds ngs wn .5 nd 3.5 GH,

mnly gd wds dnd n 4G hnlgy, nd 45

MH, gd wds ul dnd.

als n h agnys gnd gulns whs jv s

mk h l nng mpns lss dul, splly wh

gd h nsuu ss hd ps mps h

wn nwk. Th gulns h Gnl Pln Cmpn

Gls nd h nw guln ndusl Expln sd

ns.

W nn g h h lmmunns mk n Bl

s mnly pv. Tls, aNaTE nd h Mnsy Cmmu-

nns hv h pups smulng hs mk

pl pvdng wh s s h Bln ppuln.

WHAt ROLE DOES tHE COmmuNICAtIONS mINIStRY

PLAY IN REGuLAtING PRIvAtE INvEStmENt IN

tELECOmmuNICAtIONS PROjECtS? WHAt IS tHE

INtERPLAY BEtWEEN tHE mINIStRY, ANAtEL AND OtHER

REGuLAtORY AGENCIES IN tHIS REALm?

PB: Th guly l n h lmmunns mk s aNa-

TEs. Th Cmmunns Mnsy, hwv, hs h ly

supvs h agny, wkng s n s, nd lng pul

pls mplmnd y . Th h guly gns, n

ln pv nvsmn n lmmunns, ply s-

ndy l, splly gdng nsuu shng. Thus,

telecommunictions compny needs to shre n opticl ber (OPGW)

n ly nsmssn mpny, h guly gny h

l s wll ls nvlvd n h s; wns sh

h suu gs ppln sm l mpny h pullng

s, h spv gny h l nd nul gs s wll

ls nvlvd.

Tldicin: the way of the future


19/40


paulobernardo| ministerofcommunications interview

ARE tHERE LEGAL BARRIERS tO

HAvING PRIvAtE DOmEStIC OR

INtERNAtIONAL GROuPS INvEStIN OR OPERAtE CERtAIN POStAL

OR tELECOmmuNICAtIONS

SERvICES? WHAt ARE tHOSE

BARRIERS? IS tHE fEDERAL

GOvERNmENt ENGAGED IN

DISCuSSING POSSIBLE CHANGES

tO SuCH BARRIERS?

PB: Th nly h psn

of foreign cpitl in the telecommunic-

tions sector is still in cble television serv-

ices, becuse this service is governed by

sp lw, w n. 8.977/995. Expfor this one, there re only requirements

h guly sng up nd h unnng h mpny

n Bl. Th dl sn hs nly pssd h PC (Bll

h Chm) 6, whh md gnsng h py lvsn

mk, nd h um s h hs ls h psn

gn pl hs n vwd.

Wh gd s nvsmn pn y nnl

gn pv gups n psl svs, h hs pvdd

y h Psl w (w n. 6.538/78) whh h xlusv sv-

s h h Unn xpls n mnply sysm. amng hm

h p, nspn nd dlvy, n nnl y, nd h

shpmn d, ls, psl ds nd mlgs; mnuu,

ssun nd sl smps; mnuu, mp nd us nkng

mhns; s wll s mlds smpng psmks. Th s n

dsussn u pssl hngs hs s.

COuLD YOu DESCRIBE tHE EffECtS Of ANY mAjOR

PRIvAtISAtIONS Of tELECOmmuNICAtIONS BuSINESSES

IN BRAzIL IN RECENt YEARS? WOuLD YOu SAY tHAt

tHE ExIStING mODELS fOR tELECOmmuNICAtIONS

PRIvAtISAtIONS OR PuBLIC-PRIvAtE PARtNERSHIPS HAvE

BEEN SuCCESSfuL?

PB: The sector ws lrgely privtised in the period 1996 to 1998, rst

wh h ml lphn mpns nd, , wh lndln l-

ephone compnies. The privtistion llowed for lndline telephone

svs n Bl vll ll h lns wh m hn

100 inhbitnts nd incresed teledensity from 12 ccesses/100 inhb-

ns, n 998, .7 sss/ nhns n . n llul

lphn svs, n whh h s sng mpn, h

tody more thn 217 million ccesses nd, in 84 percent of Brzilin

hushlds, ls n psn wns llul phn.

We cnnot, however, fil to recognise signicnt fults in the privti-

sn mdl. Th num sss uld sgnnly hgh

s suspn hd lw p. Th mdl dd n -

s v xs ns mpn n h lndln nwk

mk, n suh wy h msus suh

s unundlng hv sll n ud

wdly. n ddn, h ws pss sng nn ndusl v-

ity in the telecommunictions equipment

s n Bl, pss h hs n

reversed in recent yers through mesures

to stimulte industril development in the

sector, ttrcting foreign investments nd

strengthening ntionl cpitl industries.

WHAt IS tHE ADvANtAGE

Of HAvING CONvERGENt

SERvICES, WHERE DIffERENt

tELECOmmuNICAtIONS SERvICES

ARE PROvIDED BY tHE SAmE

OPERAtOR OR uNDER SINGLE CONtRACtS?

PB: Th s dvng ng sv pkgs s h hs s

wht most stimultes investment in infrstructure, since the potentil

protbility over tht cost is bigger the more services there re nd the

hgh h ddd vlu s. Th ls dsdvngs h mp

h guln h s, h xn h hs mdl lds

nnn mpns nd usv ndu nds ns.

WHAt ARE SOmE Of tHE OBStACLES tO DEvELOPING

tHOSE CONvERGENt SERvICES AS WELL?

PB: n Bl, h w unl nly, s hv ldy mnnd,

lgslv sls n ln py lvsn. Oh hn hs

recently removed obstcle, there re difculties ssocited with invest-

ng n us ss nsuu. a gd p ss nwks

n Bl sll lgs pvsn nd dsgnd v

. Ths nwks hv n dvlpng nd, hus, llwng

h ng nvgn svs. Bu h s sll l dn

n Bl.

BROADLY SPEAKING, WHAt ROLE DO YOu BELIEvE tHAt

tHE DEvELOPmENt Of tELECOmmuNICAtIONS AND

tELECOmmuNICAtIONS INfRAStRuCtuRE PLAYS IN tHE

LARGER BRAzILIAN ECONOmY?

PB: Tlmmunns psns, n s wn, vgus nd

dynm s, u s mn l, lv, s lys gwh

n ll h ss h nmy. Th nd s h h lm-

munns usnss, m nd m, wll gn mk sns

gh wh h ddn vlu n nn, svs nd ppl-

ns. Thnlgl dvlpmn nds du h mxmum

s lmmunn nsmssn.

applictions such s telemedicine, teleworking, tele-eduction, online

pll ppn, n ddn udvsul nn nd h

innovtive services, re t the hert of technologicl innovtion going

wd. n

We cannot ... fail to

recognise significantfaults in the privatisation

model. The number

of accesses could be

significantly higher if basic

subscription had a lower

price


20/40


sponsoredcasestudy|bancosantanderbankingfocus

BANCO SANtANDER HAS the brodest nd

most experienced project nnce group in

Bl wh l 8 pssnls su-

dvdd n u ndusl s ms:

energy genertion, oil & gs plus metls nd

mnng; lgss nd ngy nsmssn;

plus PPPs, w & ws. Wh suh us, h gup hs n

l uld vy sp nd mp-

hnsv knwldg h s whl

ls ng l mxms gll knwl-

dg shng wh pj nn ms

n Eup nd h ams m u

xpn gnd n h uns nd

mks.

Th sul suh sng psn n

h ll mk s d n h l

nkngs m aNBMa s Snnd ld

h pj nnng (nd un nn-

ng) dvsy lgu ls h ls

h sussv ys.

Mv, Snnd hs n l

dlv nnvv nnng sluns

s lns s vdnd y numus dl

h y nd xlln ps wdd

y num pulns.

Th nsuu nvsmn qu-

mn Bl v h mng ys s

nmus (gvnmn sms nly

$3 lln y 4 nd nh $75

lln n ngy pjs ln m 4

nwds). N nly s h dvsn

undng sus qud, u ls h

ppln sphsd nd nnv-

v pv nd pul-pv pnshp

(PPP) suus. Bh pmun

ssy suh gwh.

as s suds h llus h -

mnnd quls, wh llws d-

spns sp Snnd pj

n h lgss s nd summy

h nks sussul k d n h

l & gs s.

cASe StUDY 1:ROtA DAS BANDEIRAS tOLLROAD CONCESSIONAIREPROjECtBY tHIAGO SOLLERO fIGuEIRA

a h nd 8, Odh Gup wn h

ghs xpl h Dm Pd d ns-sn 3 ys. Bsds ng spnsl

dvlpng sl CaPEX pgm

$ lln n h s sx ys, h spl pu-

ps vhl d dvlp hs nssn

( ds Bnds) ls mks nn py-

mns h gvnmn h s S

Pul $.4 lln dung h nl

8 mnhs.

Sn nn pymns n lgl

BNDES nnng, n lnv undng hd

pu n pl pvd h ull nn nd-

d. Whl h lng-m nnng suu ws

dvlpd, Snnd ld nk synd h

sd $ lln hugh n 8-mnh dg

ln ly n lmd us ss (sd

n pj guns). Ths ly ws und-

wn dung vy dul mk ndns

(ps nnl mks llps n 8) nd

und n nnvv suu.

Ths 8-mnh pd pvdd h spn-

ss nd Snnd wh m vlu-

lnvs suu lng-m nn-

ng h pj. BNDES nnng ws

h mns ms sul nn CaPEX:

lng ns gnd mpv png,

l pk n h sm ly h s

sx ys h pj CaPEX. Hwv, y

, h nly sd pn h uld m-

plmn BNDES undng ws mulll

lns n usd n h nnng n-

suu sss n Bl. n suh suu,

s h hs ll d pj s

B-dnmnd nd sh w gnn

lnkd nn, mphnsv hdgng

pgmm wuld nd mplmnd

mg uny sk xpsu.

How to structure successful dealsMauro Cavalcanti de Albuquerque of Banco Santander reveals how the firm has devised

landmark transaction structures in sectors ranging from toll roads to oil & gas

mauro Cavalcanti d Albuqurqu

The infrastructure

investment

requirement for

Brazil over the

coming yearsis enormous


21/40


22/40


sponsoredcasestudy|bancosantander

Up h mmn, pl mks hd

n n mpn su unds n-

suu spnss. Hwv, ms spn-

ss hd nly n l ss nvss

und-slshd usnsss/pjs. n

d ss pl mks mply su ll d pj , undmnl ssus

hd kn n nsdn, suh s

lng ns, usmsd msn,

suud guns, mnmum d -

ng, p quvln nd sh vlum.

as nl dsussns wh pnl nvs-

s ndd pp m nnl nvs-

s (s wll s pnsn unds), nssy

sp ws psn h pnl pn

d sk gns vlun. Cd

ng ssus nnd: nsun sk

(mgd y sng lump sum EPC n- wh Cnsu N Od-

h); dmnd sk (du lmd hs d mgd y,

mng h s, sln sh ws vn n sss sn-

s); pnl sk (mgd y h spnss k ds);

nd dqu pj uns pns (gd pymns w-

ll/sv uns mngd y ndpndn lll gn),

mng hs.

Equl nkng (p pssu) h pj nd wh h

BNDES ln ws mus hv ndn. Ths qumn ws

ddssd n dsussns wh h BNDES m wh lsd s

mpn n d mmd nvss qumns

nd hn dvlp h s Bln pj nd (dnus)

dnmnd n s. ds Bnds nd h l lwng

d ngs - a. (Mdys) nd aa (S&P) - shwng h

sng dwhnss h nsn.

Fnlly, n July , h ds Bnds dnus dl

ws lunhd n h Bln mk, ndung h s

m h np lng-m ( ys), nn-lnkd, nn-

us pj nd, whh ws sussully pld hvng

sd ds v h $. lln mun. Th nvs

s ws mpsd pnsn unds, ss mngmn ms, -

nnl nsuns nd nsun mpns. Suly, m ns-

ns wh sml ngun nd pph pl mks

wll v n h n uu s hs nsn pnd n mp-

n nw hnnl nnng h gwng nsuu ppln.

cASe StUDY 2:PIONEERING OIL & GAS SECtOR DEALSBY PAtRIC LANGE

Brzilin energy compny Petrobrs expects domestic crude oil pro-

duction to jump to 3.1 million brrels dy by 2015, up from current

upu u . mlln ls dy. P-sl l pdun s

forecst to rise to 543,000 brrels dy by 2015 nd 1.15 million br-

rels dy by 2020. Totl production, including nturl gs output nd

vss pns, s xpd m n 3.99 mlln ls

l quvln, BOE, y 5 nd s

6.4 mlln BOE y .

F suh nmus gwh ml-

s, ndd nvsmn n upsm qup-

mn nd nsuu hs n munng

nd Snnd hs ldy slshd sln ldng psn s pvd dvs-

y/suung svs nd n h nnng

sh dllng gs nd ng vssls

h l ndusy n Bl.

Bk n 7, Snnd dvsd Od-

h Ol nd Gs (OOG) n h suu-

ng nd nnng h s nn-us

nn dllng un n Bl (N

V). Ths $43 mlln nnng ws usd s

nhmk nnng hs yp ss

n Bl.

n 8, Snnd dvsd OOG n hsuung nd nnng w ul dp-

w dllng shps (N V nd N X). Th suung

hs $.334 lln nnng d h hllng ng h

s lg-sd, ull-lwn syndd ly ls (sussully)

h US nkng ss. Ths nnng vd num

nnnl wds.

n , Snnd dnd h ppuny p nw -

nnng sus dllng g pjs nd wkd wh OOG

pu gh n h s lg-sd pj nds sh

dllng uns n Bl. Ths $.5 lln pj nd ws usd

nn h xsng pj lns N V nd N X

nd ws hug suss wh dmnd xdng v ms h n-

l ng. Ths pj nd nd num nnnl

wds nd hlpd nw ss lss.

n , Snnd ld nd dnd Qu Glvs s

nds n h nnnl pl mks wh h ssun

$7 mlln pj nd sd n w nly upgdd sm-

sumsl md-w dllng gs (alskn nd aln S).

Ths pj nd ws ls vy wll vd y nnnl nd

nvss nd lsd sussully n July , dsp h qu un-

vl mk nvnmn.

n Jun , wh h nsun S Bsl, Snnd

lsd $5 lln nhmk nsn h wll llw h n-

sun n Bl dpw dllng uns h wll sus-

qunly hd Ps mpv mk ps. Th

suu h supps h nsun S Bsl ws md

nd suud y Snnd, whh d s sl dvs P-

s. Snnd ls d s dvs S Bsl n s nl p-

l sng nd ld h pv plmn h d v

$ lln quy mmmns S Bsl.

als n , Snnd ppd n h nnng l sv-

s mpny OSXs s FPSO (ng, pdun, sg nd

dng un) OSX - nd s unly ldng h nnng

OSXs snd pdun un (OSX). Snnd ls ppd

n h nnng h Psv dllng g, Cln, nd n OOGs

w ddnl dpw dllng shps ODN nd ODN . n

bankingfocus

In 2010, Santander

identified the

opportunity to tap new

financing sources for

drilling rig projects


23/40


24/40


q&a|joocapobianco, environmentsecretaryenergyfocus

IN WHAt WAYS DOES tHE

ENvIRONmENt mINIStRY - OR ANY

OtHER ENvIRONmENt PROtECtION

AGENCY - ADDRESS CONCERNS

RELAtED tO INfRAStRuCtuRE

DEvELOPmENt?

JC: Both the government nd society t lrge

gree upon the need for mjor investment in

the improvement of Brzilin infrstructure.

Th lk nvsmn s vn nsdd

n h gs plms d y h

uny.

Ths ds n mn, hwv, h hs

wks uld shuld dssp nvn-

mnl lws dn whu gd

plnnng.

Th plm s h h lk nvs-

mn n nsuu ndd wh lk

nvsmn n h pul nsuns

h dl nd s gvnmns, ldng

lwd py hs gns p-

h un m.

Th s h dl gny knwn

s m nsu Bsl d M am-

n ds uss Nus nvvs

[Bln nsu Envnmn nd

nwl sus] - s mlm

hs ssu. n 3, h w lms n

mplys nvlvd n h nlyss

nd ppvl nvnmnl lnss.

Ms h wk n h gnsn

n hs ws md up xnl n-

sulns h w lld n h nlyss

sp ss nd hn l h nd

h pdu. Du hs, h gns-

n dd n mss xpn nd uld

n mnn s wn hnl ply

qukly slv ss h nvlvd sml

lnsng ssus. Ths gn hng n

4, wh h n sp d

nvnmnl lnsng. a h sm

m, svl psns pmnn sp-

lss w dvsd n h gnsn.

Ths hng pdu, hwv, s lng nd

dmnds pmnn nvsmn n psn-

nl nng, whh hs n ud s .

Th, lhugh h Mnsy h

Envnmn nd h nvnmnl s

gns mmd ll sh nsuu wks my m m

xpdn, h hnl lmns h

gnsn nd h lw quly h nv-

nmnl mp suds hv ld nv-

l dlys n lnsng pdus.

WHAt WOuLD YOu SAY ARE SOmE

Of tHE PRImARY ENvIRONmENtAL

CHALLENGES CuRRENtLY fACING

BRAzIL?

JC: Bl s svl nvnmnl hl-

lngs, u u shuld mphssd:

nllng dsn, splly n h

amn nd h Cd; mnnng h

current environmentl legisltion, which the

Cngss ms und sng pssu

mdy; mplmnng lm hng pl-

cies; nd incresing the institutionl cpcity

nvnmnl lnsng.

WOuLD YOu SAY tHAt tHE

DEvELOPmENt Of INfRAStRuCtuRE

IN BRAzIL RuNS CONtRARY tO

ENvIRONmENtAL PROtECtION? ARE

tHE INtEREStS Of INfRAStRuCtuRE

DEvELOPERS AND ENvIRONmENtAL

CONCERNS NECESSARILY OPPOSED?

JC: Th nss hs h dnd

nsuu wks nd hs h dnd

nvnmnl ssus n suully

ppsd. Qu h pps, nd, s pv-

usly sd, h s n gmn v h

nd mpv u nsuu.

as p hs, nvsl wks,

How to keep Brazil greenBrazil is conscious of the need to marry infrastructure development with environmental

responsibilities, but a lack of experienced human resource is affecting the licensing

procedure.Joo Capobianco, former Secretary in Brazils Ministry of Environment,

explains the challenges

Joo Capobianco

Maintaining

the status of the

Brazilian energy

network as the

cleanest in theworld is a challenge

that must be

actively pursued


25/40

Areas of Expertise

Administrat ive Law

Arbitrat ion

Capi ta l Markets

Const i tut ional Law

Contracts

Corporate Law

Energy, Oi l and Gas

Family Law and Inher itance

Finance, St ructured F inanc ia l

Transact ions and Investme nt Funds

Infrastructure and Project Finance

Labour Law

Lit igat ion

Mergers and Acquis i t ions

Pr ivate Equity

Real Estate

Regulatory Law

Restructur ing and Insolvency

Social Secur i ty

Tax Law and Tax Planning

Telecommunicat ions

Since 1956w w w . m f r a . c o m . b r

RIO DE JANEIRO Av. Almirante Barroso, 52 - 5th floor Centro CEP 20031-000

Rio de Janeiro RJ Brazil Tel 55 (21) 2533 2200 | 3257 2200 | Fax 55 (21) 2262 2459

SO PAULO Alameda Santos, 2335 - 10th, 11th and 12th oors Cerqueira Csar CEP 01419-002

So Paulo SP Brazil Tel 55 (11) 3082 9398 | 2192 9300 | Fax 55 (11) 3082 3272


26/40


q&a|joocapobianco, environmentsecretaryenergyfocus

suh s h ngn h S Fns sns h hydl-

dms h Md v, w nly ppvd g

m h ps h nl suds nd pm h n-

ssy dpns n d mnms h nvnmnl mps.

Th ggs hllng s h h s plm h nn -slvd n sh mun m nd hs ld g duls n h

lnsng pdu: h lk sn knw-hw, m-gnl

plnnng nd nvnmnl nng whh nssy s ss

h nvnmnl mp suds nd ll h nssy nlyss.

On xmpl hs plm s ld lgl nvn-

s, undmnl ny dsn n h lnsng pdu.

Suds lsd y h Mnsy h Envnmn hugh h

Nnl Blgl Dvsy Pgm shw h w hv wd s

h nnl y wh slly n sudy h un nd

hs v kn pl.

Du hs gp, whh shuld lld wh pmnn -

nd lng-m nnng m h gvnmn, h nms nvnmnl mp suds lsd y h lnsng

gnsns n nlud hs suds s n h dus h

n.

Nully, hs lds svl plms. Th s s h lng

m qud hs suds, s smpls mus lld n ll

ssns nd, dlly, svl ys. Th snd nvlvs h gn-

lly hghly nsd ss. Th hd nns h lly

hs suds whn hy pmd y h nsd py, s

n nvny h vls g dvsy n sps dns

sps h ng xnn my hnd vn pvn h

ssun h lns.

alhugh hs gps n s knwldg spd v h n-

uny, s g n h Nhn gn, wh 65 pn

h hyd-ll pnl n h uny s ld.

WHAt ARE SOmE Of tHE PRImARY WAYS tO SAfEGuARD

ENvIRONmENtAL INtEREStS IN A PERIOD Of RAPID

INfRAStRuCtuRE DEvELOPmENt? SPECIfICALLY, HOW

CAN ENvIRONmENtAL INtEREStS BE PROtECtED DuRING

tHE PERIOD Of RAPID DEvELOPmENt LEADING tO tHE

2014 WORLD CuP AND tHE 2016 OLYmPICS?

JC: Th nsuu wks h 4 Wld Cup nd h 6

Olymps uld n ppuny, nd n h h nvn-

mn.

F hs, s nssy nsd h nvnmnl

n h plnnng h nssy wks, s s gun h

h ndd p suds dn uly nd n h qud

mun m.

Th unds ndd gun h nvnmnl quly

h wks vy s lvn s h undng h wks

hmslvs, s hy n nsu g spd, lly nd m

vul sl ulk n h wks.

Dung hs mg-vns, Bl wll n n sg n-

nnlly nd dmnsng s mmmn nvnmnl

nns wll hugly nl h uny.

ARE tHERE PARtICuLAR SECtORS Of INfRAStRuCtuRE

DEvELOPmENt tHAt POSE LARGER ENvIRONmENtAL

CHALLENGES tHAN OtHERS? WHAt SECtORS WOuLD YOu

SAY POSE tHE LARGESt CHALLENGE?

JC: Without doubt, the sectors tht mke the biggest impct on the

nvnmn hs ld h gnn nd nsmssn

ngy nd h nsun hghwys.

Ths h gs hllngs unly d nd h ns

h hv ld h ms ns wn h gvnmn, nv-

nmnlss nd ll mmuns. Th w ggs xmpls

hs ns h hyd-l pw pln Bl Mn,

n h s P, nd hghwy B 39, n h ss ndn

nd amns.

ARE tHERE ANY WAYS IN WHICH tHE DEvELOPmENt

Of NEW POWER SOuRCES AND ENERGY-RELAtED

INfRAStRuCtuRE HAvE AffECtED ENvIRONmENtAL

INtEREStS?

JC: Th dvlpmn nw lnv sus ngy s nsd-

d g ns h nvnmnl ssu.

Mnnng h sus h Bln ngy nwk s h

lns n h wld s hllng h mus vly pusud n

h nx w ys, wh h gl mnnng h lw mssn

gnhus- gss nd mnmsng h mps lg w-

ld nsuu wks.

nvsmns n mss, sl nd wnd pw nsdd

vl h uu nd mnn sng supp m h nv-

nmnl s.

WHAt ARE SOmE Of tHE PARtICuLAR ENvIRONmENtAL

CHALLENGES RELAtED tO tHE DEvELOPmENt Of WIND

ENERGY IN BRAzIL? HOW DO YOu PLAN tO ADDRESS

tHOSE CHALLENGES?

JC: Wnd ngy hs nsd gly n Bl n h ls w ys,

despite the strong opposition this source of energy hs suffered from

h Mnsy Mns nd Engy sl, s h mnsy spnsl

for energy policy in the country considered it costly nd unrelible

su ngy.

n h ls w uns mpld n augus , lms hl

(48 pn) h l ngy mkd ws md up wnd

pw plns. Th s hs ngy ws lw $ p MW/

hu, lss hn gs-pwd hm-l pw plns nd hy-

d-l pw plns, whh up nw hd n h ls sly

ngy pdud n Bl.

as whl, h s sng supp m h nvnmnl s-

h pdun ln ngy wh lw nslln mp.

Th plm h wnd pw plns my s h m-

p n h lndsp. T un hs, s mpn nsu

pp nvnmnl plnnng n h ln hs n-

pss. n


27/40


juliobueno| secretaryofeconomicdevelopment interview

A mIx Of Husn nd Bln. my

sund lk n unusul mnn u, -

dng Jul Bun, lnd hs w

lns s wh h hvng y d

Jn wll sml n h uu.

Bun s h Sy Enm-

Dvlpmn, Engy, ndusy nd

Svs h S d Jn

(S d Esd, S d

Dsnvlvmn Enm Eng n-

ds Svs), nd hs vsn h

gwh h s nluds n nmn-

glng ndusy nd ulu.

Bun sys shuld mdld

n Husn us s sus s h

hdqus h ngy, l nd gs

usnsss h pw h US, whh h

s , hm 8 pn Bls

l pdun n Buns smn, wll

sn vl. pdus 4 pn h

unys nul gs, Bun sys, mkng

vl pw pvd h uny.

Bln, mnwhl, shuld

mdl s dvlpmn, dng

Bun, us h Spnsh p y

hs gwn n ulul nd us n-

, vsd y mny s nnn

, nllgn nd dsgn.

s hd mgn h dsnv,

spwlng y lkng xly lk

h Husn Bln n h n

uu. Bu s l h h s

whh s hm nly 6 mlln p-

pl, dng h nsus wll

undkng sm mj hngs n hupmng ys.

Mny hs hngs mus hppn

h 6 Olymps, whh s

k pl n nd xpd

dw n nmus nux nvsmn.

ps hv smd h nvsmn n

h S wll m hn $

lln ($5.7 lln; 87. lln) y

.

Bu Bun wns mphss h h

Olymps n h h h ssu,

nd h s gwh wll n pk n h

un-up h Gms u ys m nw.

Bus pd ns lns, nw ps, nw n-

dusl dvlpmns s wll s vl-

sn h nghuhd und s

ld p plnnd s p h pp-

n h Gms, u Bun sys

h ls lng-m hngs kng

pl qu p m h nnnl

spng vns.

Ths pjs n us h

Olymp Gms, Bun nnds. Yu

hv n nm yl n Bl sp-

lly n d Jn n ms l,

sl plns, phmls, u s n

nnd h Gms.

Bun sys h vll, h hs sn

n xdny ns n ns m

gn nvss n n ys.

Th lvl ns hs nsd

l, Bun sys, ddng h s lms

unlvl.

ws n Nw Yk dsussng [hs]

wh sm nvss nd s mpssv

hw nd Bl s mpn h

More than a gameRios development will long outlast the World Cup and Olympics, thanks to broader

economic changes and a wealth of industry, according toJulio Bueno

Buno: unbelievable interest from foreign investors

Much more

important than the

Games are the

oil sector, iron ore

sector and the

steel sector


28/40


juliobueno| secretaryofeconomicdevelopmentinterview

interview

mmn, Bun sys. Gups h sys

hv shwn ns n nvsng n Blnlud GE, Hnywll, BM nd Hll-

un.

Th World Investment Report

m h Und Nns Cnn

n Td nd Dvlpmn nks Bl

s h h-lgs pn nn

gn d nvsmn, llwng h

US, Chn, Hng Kng nd Blgum.

Suh am hd d h gs

nss n h ps y, dng

h p, wh Bl pully uy-

n. n ms pjd nvsmnm 3, Bl dgs ps uss, plng uh n

h ls.

Th nsd lvl ns n Bl, Bun sys, s h

nm yl h w lvng nw.

N nly us h Gms, Bun nnus. Muh m

mpn hn h Gms h l s, n s nd h

sl s.

n Mh, h US Exp-mp Bnk nnund h hd u-

hsd up $ lln n xp d nsuu pjs n

d Jn.

Bl s n mgng nmy wh xnsv nsuu

nds, nd hs uhsn wll pvd uh ppuns

amn xps nd smll usnss wns, Exp-mp Bnk

h Fd Hhg sd n smn, ddng h h nnng

uld supp nvsmns ld h Wld Cup h Olymps,

d l.

Bun sys s ssssng gh wh h Exp-mp Bnk

wh pjs h xp d shuld supp, u ddd h p-

ul pjs hv n n ddd n y.

WHY BRAzIL?

Bun sys Bls vnss gn nvss hs d p-

mly wh suul ndns kng n h uny.

Th s ndn: w dmy, Bun sys. W

hv lw n Bl. W sp ns.

Mnm sly s h snd sn. S d n

Bl s lss hn 4 pn gss dms pdu, d-

ng Bun. nn, whl sll hgh, s dsng h hn

nsng, Bun sys. Th Bln l s snghnng nd h

uny hs hvd hgh lvls gn uny svs, Bu-

n sys. Bls gn uny svs hv hd n-d

lvls u $35 lln, Psdn Dlm uss ld ps

n ly augus.

Th hd nd uh sns, dng Bun, -

d dply n Bls ppuln nd wlh nul sus.

Ths sus nlud l, n ,

nd gulu, s wll s h p-sll nd gs sv dvlpmns h

Bun sys hv lud ns m -

gn mpns s wll.

Ppuln gwh nd h sngh-

nng nd slsng Bls nnl

mk hv ls hd n mp.

W hv mk, n nnl m-

k, nd ppl nxus nsum,

g nsum mks, Bun sys.

On n whh h ss pully

lg pssls pv quy nvs-

s s n h ngy s. hnk h ngy s s vy mpn pv quy,

Bun sys, smng h Bl nds dd u 6, mg-

ws ngy gnn py v h nx n ys n d

kp p wh ppuln gwh nd nduslsn. H sd

h ss sng ppuns pv quy nvs n ngy

nsmssn nd dsun s wll s ngy gnn n Bl.

Th sm s pv nvsmn wh Bun -

lvs h dl gvnmn uld pushng hd ns

dvlpmn. On suh s h ps s, nd h pn-

l pvsn ps, u whh h s uspkn. Th B-

ln avn agny (aNaC) hs lsd ll pjs

nssns ps nludng Bsl, Cmpns nd Guulhs

nnnl p S Pul.

W psn h ns d Jn sy. Th

d Jn ppl. S w n vu pvsn h -

ps, Bun sys, ddng h h dl gvnmn, h ls,

hs svns u h pnl p nssns us

s l-wng.

Whn skd wh s l s n h sung pvsns, Bu-

n sys h hs gny ds n hv d l n pushng wd

ny pnl nds. Only pll pssu, Bun sys.

A fEW HIGHLIGHtS

Some of the projects tht Bueno highlights include industril nd port

dvlpmns, s wll s dvlpmn h Olymp P pj,

whh Bun sys wll mml n kn ndns

Cny Wh.

Bun ls mnns h us pd ns lns, n whh s

pjd xnd h Tm Jm nnnl ap, s wll s

h xnsn h y s suwy lns.

Th upgds un nsuu, nd splly h m-

pvd nsp sysms, Bun sys wll n h ss ndusl

nd ulul dvlpmn vn h Wld Cup nd h Olymps.

s lgy, Bun sys, ddng h h ss s n h

ms mpn lgy pjs n . n

We represent theinterest of Rio de Janeiro

society. The Rio de

Janeiro people. So we are

in favour of privatisation

of the airports


29/40


legalfocussponsoredq&a| justen, pereira,oliveira&talamini

WHAt ARE tHE KEY LEGAL ISSuES IN

RELAtION tO PRIvAtE INvEStmENt IN

BRAzILIAN INfRAStRuCtuRE?

MJF: Th un ulk n Bl vus nvs-

mns n h ld nsuu. Th ls w

ys hv ugh pll sly lngsd

sng nm mmnum. and h s nmmd nd nsuu nvsmns,

whh g ynd h qumns h

mng Wld Cup nd Olymp Gms.

Mny hs nvsmns n nsuu

wll md wh pul unds, y mns gv-

nmn ns. Ths ns qu

pul nd h sln h n.

anh sysm wll pul-pv pn-

shps (PPPs), whh ls ly n pul nds

sln h pv pn.

WHAt ARE tHE StRENGtHS AND

WEAKNESSES Of BRAzILIAN LAW IN

AN INfRAStRuCtuRE CONtExt?

MJF: Brzil hs stble nd sophisticted regultory frmework in severl

res, such s telecommunictions, energy nd ports. However, consider-

l dvns uld md n ss suh s lds nd ps.

Th lgsln n hs ss s sn n sm sps, snlly

leding to difculties nd legl risks for the privte investor. This becme

vdn dung h n d h nssn hgh-spd n

pj, n whh ll pspv dds sm hv usd d

du unns n h pj.

anh duly nvlvs h gnl sysm nmn

ds gns gvnmn gns, whh n m-nsumng

nd us msus n nvss. Th lk nvs-s n

(CSD) s smms vwd s shmng.

Bln lgsln ddsss suh duls y gnng h p-

v pn n PPPs sp sysm guns nd nmn

ds. ls llws dms nnnl n. n

ll gvnmn ns, h pv n s gnlly pd

gns h nm s unnlll umsns.

DO REGuLAtORY fRAmEWORKS tEND tO WORK IN INvES-

tORS fAvOuR? WHAt ImPROvEmENtS NEED tO BE mADE?

MJF: Svl mpvmns uld mplmnd vm gu-

ly duls h ns sks nvss. Cunly, h ms

importnt bottlenecks in Brzilin infrstruc-

u n h nd lnd nsp s.

Th nsp lgsln s dd

nd mps. aNaC, h Nnl Cvl

avn agny, s mny duls n

hvng s jvs, msly us l-

ms ll ps ully pd y N-FaEO, gvnmn gny.

Th ldy sgns hng. Th

n n h Cvl avn S-

ld hngs n h lgsln

aNaC nd NFaEO. Th gvnmn

hs ls md l s nnn gnng

h nssn sm mpn ps

pv xpln und PPP sysm.

ds su m p plnnng

nd n vll lk nvsmn, whh

lds xpnsv pjs nd n un-

vn vg pvd ds. a lvly

lw png hghwys n Bl

pvd, msly n h m dvlpd

suh nd suh-s gns.

lds n wdly usd, svng msly h nsp

gns shppd y sps. Th guly gny spnsl

h lds hs nly pssd nw sluns hngng h

uls h usg ld ks, hugh s sll ly gug s

s nd pn y h un ps. a pj h n-

sun hgh-spd pssng n nnng S Pul nd

d Jn s n h plnnng sgs.

Ovll, dsp h un shmngs, n pls, suh s

h PaC [Gwh aln Pgm], shw h h gvnmn s

w s duls nd s mkng us Bls nm m

mpv n nsuu.

IS tHERE A tRACK RECORD Of CONtRACtS BEING

EffECtIvELY ENfORCED?

MJF: Yes. Brzilin legisltion concerning infrstructure contrcts is thor-

ugh n nsung h nmn. Mv, h h gvnmn

nd h us hv gnlly dmnsd h nn slshng

s nvnmn h nmn ll ns sgnd. Whn

h ms h n n llwd, h h py my qus

n u sp pmn, nludng njunv l nnl

mpnsn.

All-comers welcomeForeign and domestic investors can expect equal treatment, as well as strict enforcement of

contracts in court. So says Maral Justen Filho, founder and senior partner of Brazilian law firm

Justen, Pereira, Oliveira & Talamini, in a wide-ranging interview about the key legal issues in

Brazilian infrastructure

maral Jutn Filho


30/40


sponsoredq&a| justen, pereira,oliveira&talaminilegalfocus

Th Bln lgl sysm llws ull

judl vw gvnmn ns, nd

h s n ugh u -

n n sm ss mply wh ns gv mpnsn ny h.

Dung h 99s, dspu lng

n s gvnmn PPPs n h ll

d s gv s sng s lw sss-

ng h ndng gvnmn n-

s nd h duy mply wh h n-

ul ndns.

ARE fOREIGN INvEStORS ABLE tO HAvE AS muCH

CONfIDENCE IN tHE LEGAL AND REGuLAtORY

fRAmEWORKS AS DOmEStIC INvEStORS?

MJF: Ys. Th s n sn gn nvss hy my d dnly m dms nvss. On n s sgnd,

h nnly h nvs s lvn h lln h sks

h n. shuld nd h, n , pul pumn

regultion ws chnged to estblish mrgin of preference to products

md n Bl ( Buy Bln a). Evn n s nw ld ppl-

n, hs ul ls nly ddng pdu, n nul

ndns pmn.

S&P tOLD uS IN AN INtERvIEW tHAt mOSt BRAzILIAN

PROjECt fINANCE DEALS HAvE BEEN StRuCtuRED tO

RELY mORE ON CORPORAtE OR SPONSOR SuPPORt

RAtHER tHAN ON ROBuSt LEGAL AND StRuCtuRAL

SEPARAtENESS ELEmENtS. tHEY ALSO ADDED tHAt

tRANSACtIONS [HAvE] tO RELY mORE ON tHE

CREDItWORtHINESS Of tHE PROjECt ASSEtS tHAN ON

SPONSOR SuPPORt. DO YOu AGREE WItH tHIS vIEW AND

WHAt IS BEING DONE tO ADDRESS tHESE ISSuES?

MJF: w .79, nd n 4 nd lng PPPs, sks nsu

tht project nnce is bsed on the creditworthiness of the project itself

nd not on corporte sponsorship. ts rticle 9 requires Specil Purpose

Compny (SPC) s the vehicle for the PPP. another condition tht ims

dvn pu pj nn sysm s h pvsn qung h

pul pn (gvnmn) suy s lgns und

the PPP, be it through performnce bonds or specil government funds.

Ths msu mpvs h quly h pv pns vls

und h PPP nd mks s nn-us pj nn

vl.

HOW WOuLD YOu EvALuAtE tHE APPEtItE Of LOCAL

BANKS tO ENtER INtO PPP AGREEmENtS? mANY Of

tHE tRANSACtIONS SEEm tO BE HIGHLY DEPENDENt

ON BNDES.

MJF: BNDES, h Bln Nnl Sl nd Enm Dvlp-

mn Bnk, s ul p Bln nm ply. BNDES

serves s n effective mens of nncing government undertkings. t

ensures less costly nncing for infrstructure projects tht might not

sm pl h pv nps

otherwise. Other government-controlled

nks, suh s Bn d Bsl nd h

Cx Enm Fdl ls nn g num pul pjs.

shuld sssd h, n PPPs,

pul nnng nn hgh

hn 7 pn h l nnng

h pj, nsung h h p-

nshp s nv whlly dpndn n

pul unds. w .43, pssd n l

, gns x xmpns pv

nvsmn n svl s, skng g pv nvsmns n

nsuu.

IS tHE fEDERAL GOvERNmENt YEt tO ENGAGE IN

tRuE PPP CONtRACtS (ExCEPtING LOCAL REGIONS

AND muNICIPALItIES)? If SO, IS tHERE AN OBStACLE

tO PPP DEvELOPmENt IN BRAzIL?

MJF: Pul ns wh h pv s mmn n Bl,

including with the federl government. However, true PPP contrcts,

n whh h gvnmn s spnsl p ll h pv

pns nngs n h pmn pul sv, qu

nw n Bl.

Ths ns w ndud y w .79, pssd n 4.

Th lw mpss svl nul, dmnsv nd sl n-

dns h n PPP. Ths quss nd h nwnss

PPPs my xpln h lvly s ss u PPP h

lvl dl gvnmn. Hwv, h numus PPPs n

pn msly s lvl.

Svl pjs unly und sudy y h dl gvnmn

my dvlpd hugh PPPs, suh s h ppsd hgh-spd

n nd h nssn ps pv nps. Th n-

p PPPs s wdspd, nd hs sysm s xpd usd n

vy gvnmn nd gvnmn-ld vs.

mExICO CREAtED A NEW tYPE Of INStRumENt LASt

YEAR ALLOWING DEvELOPERS tO LISt tHEIR PROjECtS

ON tHE StOCK ExCHANGE, tHuS fACILItAtING ACCESS

tO fuNDING fROm INStItutIONAL INvEStORS. WHAt

mEASuRES, If ANY, ARE BEING CONSIDERED tO AttRACt

tHESE SOuRCES Of LONG-tERm CAPItAL IN BRAzIL?

MJF: Bln nsuu pjs sulng m pul n-

s n lsd n h sk xhng. Hwv, h mp-

ns h xpl h pjs my hs g pul. Ms lg

nsuu ps n Bl hv dn s n vus s

such s toll rod concessions, port terminls, rilrods, energy nd

lmmunns.

Th gvnmn hs ls kn svl msus lng-

m nvss, s s h s wh h x xmpns d n

y w .43 nd h n n nvsmn und sd

n h Sl Suy unds. n

Several improvements

could be implementedto overcome regulatory

difficulties that increase

risks to investors


31/40


transportfocus

tHE DEvELOPmENt Of su nspn nwk - n

d s h spn uny - n dmn muh u hw

gds shppd, wh ppl lv, hw ppl mmu, nd n

ls pv ssnl sng ngsn ps nd ps.

n Bl, svl mj pjs undwy mpv h un-

ys su nspn nwks. Whl sm hs pjs

uld hlp lv ngsn h Wld Cup n 4 nd

Olymps n 6, hy ls sv h lg pups dung u-

dns n ps nd nsng h ssly p nsuu,

s wll s mxmsng xsng l nsuu.

Ths pjs lg-sl - pnlly lg mplx

undd xlusvly hugh pul pumn. as sul, B-

l s nmplng sm pnlly gund-kng pul-pv

pnshps (PPPs) n h h d nd l ss.

BuLLEt tRAIN

One of the most high-prole projects hs been the proposed bullet trin

nnng d Jn S Pul. Th 5-klm n ln,

which would lso link to the city of Cmpins, hs been estimted to cost

bout $33 billion (14.2 billion; $20.1 billion), though other estimtes

hv pu h s sgnnly hgh.

Fllwng w pspnmns, h July un h

pj ld ny dds. Th gvnmn hn nnund

plns spl h pj n w phss, whh pv nvss wuld

d n sply.

Th s phs, xplns Hl Mu Fn, n xuv su-

pnndn agn Nnl d Tnsps Tss (aNTT),

Bls Nnl nd Tnsp agny, wll us n ndng n p-

whh wll ls pvd h hnlgy nssy uld h

hgh-spd ln.

Th wnnng p nd hnlgy suppl wll ls

usnss pln h pj, s wll s pvd ngnng nd d-

sgn dumns h ppsd ln.

Fllwng h s phs, snd phs h nssn wll

nlud nsuu nsun s wll s h dvlpmn l

s lng h ln, suh s sns.

Fn sys pv ps nns u h ppsd l

ln nlud h dspny n h l vlum nvsmns, nd

h pssly shuldng muh sk.

Nw w nd kp h sk sp, s h s n n-

gus, Fn sys. W n mg ll sk n phs n nd w

Building the backbone

Federal- and state-level transport regulators discuss some of the major concessions being

granted in Brazil over the next few years, and what role private investment can play in thedevelopment of the countrys road, rail and bus systems

Bullt train: coming to Brazil soon?


32/40


transportfocus

n mg sk n phs w, h sys,

ddng h vnus m l s

dvlpmn lng h lns uld hlp

s sm h sks ssd wh uld-

ng h l lns nsuu.Fn ls sys h w-p suu

uld hlp ssug h nns pv

nvss ppd hv dung h ddng

pss.

Th gups h wuld d n h s

phs h nssn n ypl nvs-

s n ms h wy hy plnnd nvs

n hs pul pj, Fn sys.

Usully hy n nvss. Thy

sll llng sk, hy sll sysms, hy sll

qupmn. Bu hy w wllng vy

mny shhlds, Fn sys. Buwhn m nvsmn s qud hy wuld

dspp s shhld hy wuld

hv pu m mny n s shhld

nd s hy w n ml.

Mdum-s nsun mpns

wnng pp n h pj s p

nsum hd quy u hy dd n

hv d, Fn sys.

H sys h ss ssd wh h

pj hgh hn h gvnmn hd

xpd, nd h u ss nn

snd whu uh suds.

S w sd w nn g hd wh

h, w nn w, ls s wh hppns

w hng h mdl. S hs wh w

dng nw, Fn sys.

Bddng dumns h s phs

xpd md pul y Nvm-

, Fn sys, wh ds kng pl nx

y. F h snd phs, Fn sms

h ddng wll k pl n h llwng

y. n

IN SO PAuLO, h s-lvl nsp

gul agn guld d Svs

Pls Dlgds d Tnsp d Es-

d d S Pul (aTESP) s ls gn-nng undk gund-kng nd

lg-sl nssn.

aTESP, whh s spnsl

mngng d nssns nd d-

ng pumn dumns n dd-

n gulng nd supvsng u

5,4 klms hghwys nd ,3

lns n-y pssng nsp,

hs gun plmny suds h

Tms hghwy xpnsn pj.

Th pj, whh nluds du-

lng h wdh h xsng hghwys wll s nsung ypss ds h

wll gv ss h P S S-

s, s sld ul n w phs-

s nd s xpd qu nvsmn

m hn $4 lln.

Th s S Pul hs hsn

pusu h pj s PPP us s hgh ssd ss, dng Kl B-

Tndd, d gnl aTESP. Ths hgh ss uld ls mn h

Tms wll h s pv nssn n S Pul h s kd n nly y lls,

u ls y pul susds.

Ths yp nssn ds m h hghwy nssns pvusly ulsd n

h s S Pul s hs pvus nssns dd n nlud h pssly

pul unds svng s vnu h pv n, Tndd sys.

Th pj wll h llw us h P S Ss nd lv

n us vlng S Puls hvly-kd P Sns, dng Tndd.

Tndd sys pv nvsmn hs susnl l ply n h dvlpmn

nsp nwks n S Pul nd h pv nvss hld ky l n nsu-

u pjs n h s S Pul.

s undspud h pv mpns, nvsmn unds nd lg pns

nsdd pns h s S Pul, dng Tndd, wh dds h

h nsumn nssn hs n nsngly ulsd y h s n dlgng

h ndng pul svs pv pns. n

APARt fROm SOmE h lg nd hghly

vsl PPP pjs, aNTT nd aTESP ls

hv plns supvs nw nssns

l nd n-munpl lns.

Pjs und h puvw aNTT n-

lud us lns s wll s nly nld

nssns md mxmsng h pn-

l usng xsng l nwks, dng

Fn. Fn sms h u 8,

klms xsng l nwks und-

ulsd nd h sys h gvnmn, und -

nly mplmnd gulns, s xplng

pns pn sm hs und-ulsd

nwks nw nssns.

Tndd mphsss h plns S

Pul xnd ynd h 4 Wld Cup

nd 6 Olymps, nd gus h h nd

nspn dvlpmn n Bl

sms n m pul vns u m h

g dsun nm n h ppul-

n nd h gwh Bl s whl. Th

gwh hs d g wlh n svl

gns nd qus sng nnn

wn nm ns, Tndd sys.

h Wld Cup w hppn hs

y, h hghwys h nn ll ps n

S Pul ldy n ndn mp-

l wh h s hghwys n h wld, Tn-

dd lms.

Sh sys nspn pln S

Pul wll pulshd y h nd h y,

nd h h pln uld pn h nssn

ny lns pv ps. n

broader HigHways

new projects

so Paolo hihway:private investors have

key role


33/40


benjaminzymler|president, tcu interview

COuLD YOu DISCuSS tHE HIStORY

Of tHE tRIBuNAL DE CONtAS DA uN-

IO (tCu) AND HOW tCuS ROLE HAS

EvOLvED OR CHANGED SINCE 1988?

COuLD YOu ALSO DISCuSS tHE ROLE

tCu CuRRENtLY PLAYS IN EvALuAt-

ING PRIvAtE INvEStmENt IN INfRA-

StRuCtuRE?

BZ: TCU [Bls Cu aud] ws -

d nl h pul dmnsn,

hlp p nd ns s nun

sy. TCU ws slshd n Nvm-

7, 89 nd hs n nludd n ll sx

Brzilin Constitutions since 1891. However,

its competencies hve chnged severl times

v h ys.

n 998, h un Cnsun m-

plmnd sgnn hng TCUs

mpns, llwng vlu h p-

nl pmn pul nsuns,

ns nd pgmms wh vw s-

sssng h lgmy nd vlu mny.

n n ms, TCU hs mnd

s pl s undmnl nsun n

h nsldn Bln dmy,

nung sgnnly n ns n

nspny, unly nd gv-

nn.

Ths s du h ndpndn, h-

nl xps nd pssnlsm h

TCU hs sugh dvlp v h ys,

npng h ms lvn ,

mhds nd hnqus n h vlun

wks d u y h u.Ou mn unn s hlp h N-

nl Cngss Bl [h unys

lgslv dy] xs xnl nl.

Hwv, TCU s ndpndn vs--vs ny

h nsun, sn h u n y

u supvsy wks s wn nv.

TCU hs ls hd n undsnd-

ng wh Bls judl uhs n

vw ny dsns kn y TCU -

gdng us dl pul spndng.

Th, h judl uhs wll nly

nlys TCUs dsns mk su hy

nm nsunl guns nd

lgl psss. TCU ms wk n syn

wh h judl uhs. n hs sns,

pvds nmn h my nu

spdy nd m v wk y h

judl uhs.

Th xnl nl xsd y TCU

n pul pls nnng h mu-

ln, guln nd mplmnn

nsuu nvsmns ppls h sm

hnqus usd n h ms dvlpd d-

ms n h wld.

Th xun pul wks s mn-

d y hnl uns splsng n d-

n nsuu ss, lk ds

hyd-pw, xmpl. Th wk l-

lws h u pn u guls

h, n d, n vd sus

dmg h pul udg.

Cnnng pv s pjs, lk

nssns PPPs, TCU mns hs

pjs hughu h nd pss,

vlung hnl nd nml sl-

y suds, nludng smd nvsmns,

The watchdog

Bnjain Zylr

TCU has paid a lot

of attention to the risk

allocation between the

government and the

private sector

Benjamin Zymler, president of Brazils Court of Audit (TCU), tells how adequate risk

allocation is essential to successful public-private partnerships and describes how the

court ensures these projects are properly implemented


34/40


s nd h ddng pss sl. TCU ls llws h wk

nd pmn h guly uhs nvlvd n hs

pjs.

Fnlly, h u plys n mpn l n h vlun nd

sg mngmn svl gvnmn nvsmn plns, lk

h Pgm d al d Csmn [Gwh aln

Pln]. By sysmlly llwng h pul ds xung h

pln, TCU s mk mmndns h pm

gvnn, nspny nd unly.

COuLD YOu DESCRIBE tHE tYPICAL EvALuAtION PROC-

ESS fOR AN INfRAStRuCtuRE PROjECt?

BZ: TCU simultneously ssesses the tender process for infrstructure

pjs s wll s h guly gns mngng hs pjs.

Th mnng pv nsuu pjs ss wh n

nlyss h hnl suds, pmd y h pung uh-

y, whh pd h ddng pss. a hs sg, TCU vlus

h quly h hnl nd nml suds pj,

nludng smd nsun ss, h s svs

pvdd, xpd vnus, lms ddng ps, nvnmn-

l suds nd nvnmnl pms.

a h nd dumns pulshd, TCU hks h

hy nm pvus suds nd lgsln. Th u ks

lk qusns ld sk ns, h ns nm

qulum, guns pvdd, nd svs ndd,

mng h hngs.

On h nssn n s sgnd, TCU llws s xu-

n y mnng h guly gns h hv mng h

mplmnn hs nssn ns. n hs nx, TCU

vss h ny, lgly nd vlu mny h wk

d u y hs guly gns gun ln -

wn pv nss nd h uss h svs ndd y h

gvnmn.

HOW DO YOu ENSuRE ACCOuNtABILItY IN tHE

EStABLISHmENt Of PuBLIC AGREEmENtS WItH tHE

PRIvAtE SECtOR? WHAt mEASuRES NEED tO BE tAKEN

IN ORDER fOR A PuBLIC-PRIvAtE PARtNERSHIP tO BE

SuCCESSfuL fROm tHAt StANDPOINt?

BZ: TCU s vy nnd u nspny dung s vsgh

h n nd pss. W hv sn svl quss pung

uhs skng hm pvd m nmn nsd p-

s nd pulsh, n h wss, nsws qusns skd dung

public herings prior to the tender process or during the ppels phse.

n mny ss, h u snds nsps hs pul hngs

mk su hy llwng pp pdu nd g n-

mn u h mn dmnds ll h ps nvlvd. W ls

dmnd nspny whn h hngs s, qung h

guly gns jusy hngs.

T gv n xmpl, TCU mmndd h Bls Nnl

Plum agny [agn Nnl d Pl] ndu nvn-mnl suds lnd wshs nd xpln. W ls ld

hm hld gnl pul hngs nugng d uh

h mmuny. gdng pul-pv pnshps, h ky

h suss ls n xplly dnng h sk lln wn h

pul nd pv ps.

WHAt DO YOu tHINK ARE SOmE Of tHE WAYS tO BALANCE

tHE NEED fOR INfRAStRuCtuRE GROWtH WItH tHE NEED

tO SAfEGuARD PuBLIC INtEREStS? DO YOu ADDRESS ONLY

tHE fISCAL ISSuES RELAtED tO PuBLIC COmmItmENtS tO

INfRAStRuCtuRE, OR ARE YOu ALSO CONCERNED WItH

PuBLIC POLICY, ENvIRONmENtAL, LABOuR OR SOCIAL

ISSuES? AND HOW ARE tHOSE ISSuES DIffERENt IN

PuBLIC-PRIvAtE PARtNERSHIPS?

BZ: The discussion bout the proper blnce [between public nd privte

prties] nd the need to sfegurd the public interest is primrily crried

u n h Nnl Cngss Bl, kng n un ppll

lgsln. s TCUs j hn mk su h h lgsln s l-

lwd nd h h dsns kn pl. Ou vsgh gs

beyond budgetry nd economic questions nd lso extends to the socil

nd environmentl rens. This trnsltes into recommendtions issued

by TCU to project mngers requiring them to conduct environmentl

studies, obtin environmentl permits nd implement, when necessry,

mesures to mitigte the socio-environmentl impcts of given project.

TCU hs un splsd n nvnmnl ssus h lks

hs qusns. Th pv pn hs mply wh h ndns

qud n h nslln nd pn pms nssy

dvlp s pj. s mpn hghlgh, hugh, h TCU s

n spnsl dsgnng nd ssung hs pms hs h

spnsly h nvnmnl uhs. Th u s spn-

sl, hugh, mkng su h nvnmnl lgsln nd h

ulngs nvnmnl uhs d u.

DID tHE ExPERIENCE Of CONtROLLING GOvERNmENt

ExPENDItuRE IN tHE RIO 2007 PAN-AmERICAN GAmES

interview benjaminzymler|president, tcu

Hydro-powr: monitored by specialist unit


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INfLuENCE tCuS ACtIONS WItH REGARD

tO tHE 2014 WORLD CuP AND tHE 2016 OL-

YmPICS? If SO, HOW? DO YOu ExPECt ANY

SPECIfIC CHALLENGE WItH REGARD tO tHE

CONtROL Of SuCH EvENtS?

BZ: The control exercised by TCU during the 2007

Pn-americn Gmes illustrtes the importnce of

plnning hed to void the risk of incurring vstly

g xpns hn nlly s.

Tkng n nsdn h dvsy

gns nvlvd n h xun h 4

Wld Cup nd h 6 Olymps dl gv-

nmn, ss, munpls nd pv m-

pns h u hs n wkng mk su

h s dqu nd mly plnnng h

vns.

gdng h Wld Cup, xmpl, TCUhs skd h Sps Mnsy wh sndng n-

d dumns nd n ds h u

vy w mnhs, sng n Fuy 6, .

ws ls ddd ud h Bn Nnl d Dsnvlv-

mn Enm Sl (BNDES) nd h Cx Enm

Fdl (CaXa) wh h jv hkng lns nd nn-

ng pvdd s munpl gvnmns uld -

ush ll sdums nd ssd un mly wks

ld h Wld Cup.

anh vy h u s xnl nl n-

spns vd guls pjs nshd. Ths

pvnv ns ung h nsun ps nd

ps lnkd h mn s h wll hs h Wld Cup,

sn hs pjs xud wh dl sus. n

nspns d u y TCU h pjs uld h Bl

Hn nd Mnus ps hv yldd mnd s sv-

ngs v $4 mlln (6 mlln; $88 mlln).

TCUs g hllng h mng ys s nnu p-

m s sks h hghs sndd whls dlng wh h

nsd dmnd sulng m h sps vns Bl wll hs.

HOW HAvE LEGAL fRAmEWORKS CHANGED IN RECENt

YEARS IN RELAtION tO PRIvAtE INvEStmENt IN INfRA-

StRuCtuRE?

BZ: Th ms mpn hng h lgl mwk ud

in the nineties with the cretion of the concessions lw. afterwrds,

lws w pmulgd ng guly gns nd llwng

pv nvsmn n svl nsuu ss. Vus m-

pns n h lmmunns, nsp nd ngy ss

w pvsd hugh hs lws, nsmng h s m

pvd n gul hs ky pul svs.

mpnly, 995 ws ls h y whn nsunl

mndmn k Ps mnply n xplng nd p-

dung plum. Susqunly, lw ws md h d h

agn Nnl d Pl [Nnl Plum agny] nd

guld h pv xpln nd pdun plum.

anh mpn nnvn ws h lw llwng pul-

pv pnshps, pmulgd n 4.

WHAt ARE SOmE Of tHE mAjOR CHALLENGES IN CON-

tRACtuAL fRAmEWORKS PRESENtED BY PRIvAtE INfRA-

StRuCtuRE INvEStmENt?

B

infrastructure investor - brazil intelligence report

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