SESSION 4 – INFRASTRUCTURE · Law No. 8,666/93 (Bidding Law:) Regulates art. 37, item XXI, of the...
Transcript of SESSION 4 – INFRASTRUCTURE · Law No. 8,666/93 (Bidding Law:) Regulates art. 37, item XXI, of the...
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SESSION 4 – INFRASTRUCTURE
Mauricio Endo
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Population(1)
208 million‘
Coastline7,367 km
Risk Brazil (S&P)BB
GDP per capitaUSD 9,490
(1) Oxford Economics estimative for 2017;Source: Oxford Economics Database, Reuters and CIA Factbook
Regionalization of the Brazilian GDP(Presented in %)
North RegionGDP 5.3%
Northeast RegionGDP 13.9%
Southeast RegionGDP 54.9%
Midwest RegionGDP 9.4%
South RegionGDP 16.4%
Area8,515,767 km²
GovernmentPresidential Republic
GDP 2017USD 1.969 trillion
Country Overview
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According to the Global Competitiveness Index (GCI) Infrastructure quality ranking of WEF in2017 - 2018, Brazil ranks 73th out of 137 countries. The ranking evaluates:
- The extent and efficiency of the transportation infrastructure capable of providing easy and safemovement of goods, services and people in airports, highways, railways and ports.
- The power supply quality, free of interruptions and faults.
- A solid and extensive telecommunication network that allows a fast and free flow ofinformation.
Source: WEF.
6,3 6,0 5,75,3
4,8 4,74,3 4,2 4,1 3,9 3,8 3,8
Japan UnitedStates
Canada Australia Chile China Mexico Worldmedian
Brazil Argentina Peru Colombia
4th 9th 16th 28th 41st 46th 62nd 69th 73rd 81st 86th 87th
Quality of Infrastructure in Brazil (1)
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Highways - 103rd place in 137 countries
6,15,7 5,4 5,2
4,8 4,6 4,4 4,13,3 3,1 3,0 3,0
Japan UnitedStates
Canada Chile Australia China Mexico Worldmedian
Argentina Brazil Peru Colombia
6th 10th 22nd 24th 35th 42nd 52nd 69th 96th 103rd 108th 110th
Quality of Infrastructure in Brazil (2)
Source: WEF.
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Airports - 95th position in 137 countries
6,0 5,9 5,65,2 4,9
4,5 4,4 4,3 4,2 4,1 4,1 3,9
UnitedStates
Canada Japan Australia China Chile Mexico Worldmedian
Argentina Colombia Peru Brazil
9th 12th 26th 36th 45th 62nd 67th 69th 78th 81st 85th 95th
Quality of Infrastructure in Brazil (3)
Source: WEF.
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Railways - 88th place in 101 countries
6,6
5,54,9 4,8
4,13,3
2,8 2,52,1 2,0 2,0
1,5
Japan UnitedStates
Canada China Australia Worldmedian
Mexico Chile Argentina Peru Brazil Colombia
2nd 10th 16th 17th 35th 55st 65th 74th 83rd 87th 88th 96th
Quality of Infrastructure in Brazil (4)
Source: WEF.
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Ports - 106th position in 137 countries
5,85,4 5,3
4,9 4,9 4,6 4,3 4,1 3,8 3,7 3,73,1
UnitedStates
Canada Japan Australia Chile China Mexico Worldmedian
ColombiaArgentina Peru Brazil
9th 19th 21st 35th 36th 49th 62nd 69th 77th 80th 83rd 106th
Quality of Infrastructure in Brazil (5)
Source: WEF.
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Eletricity and telephony infrastructure – 72nd position in 137 countries
6,66,0 5,8
5,4 5,44,6 4,5 4,4 4,4 4,3 4,3 4,1
Japan UnitedStates
Canada Australia Chile Worldmedian
Brazil Peru ColombiaArgentina China Mexico
5th 18th 31st 41st 43rd 69th 72nd 75th 76th 79th 80th 84th
Quality of Infrastructure in Brazil (6)
Source: WEF.
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Law 13.097 of 2015
Law 13.173 of 2015
Law 11.479 of 2007
Law 12.349 of 2010
Law 8.666 of 1993 –
Biddings Law
Law No. 8,666/93 (Bidding Law):Regulates art. 37, item XXI, of the Brazilian Federal Constitution; establishes rules for bids and contracts of the Public Administration.
Law No. 8,987/95 (Concession Law): Provides for the regime of Common Concession (non-subsidized concession) and permission of the provision of public services provided in art. 175 of the Brazilian Federal Constitution.
Law No. 11,079/04 (PPP Law): Provides for the contracting of Public-Private Partnership (subsidized concession) within the scope of public administration.
Law 8.987 of 1995 –
Concessions Law
Law 11.079of 2004
Law of PPPs
Contract Legal Framework
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Regulatory Agencies
Power
Telecommunications
Transport
Civil Aviation and Airports
Waterway and Ports
Water
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1995 2007 2012 2013
HIGHWAY CONCESSION: BR - 040 Juiz de Fora –
Rio de Janeiro BR – 116 – RJ Paraíba -
Teresópolis
PRIVATIZATION: TELEBRAS (Telecommunication) ELETROBRAS (Distribution) EMBRAER (Aircraft) VALE (Mining)RAILWAY CONCESSION:• RFN (Federal Railway Network)
HIGHWAY CONCESSION: BR 290/ RS (Osório- Porto Alegre) RAILWAY CONCESSION: Northeast’s Rail
Network
HIGHWAY CONCESSION: BR-116
Bahia
HIGHWAY CONCESSION: BR 101 ES AIRPORT CONCESSION: Brasilia Airport Guarulhos
Airport Viracopos
Airport
HIGHWAY CONCESSION: BR-050 MG – GOAIRPORT CONCESSION: Galeão Airport Confins Airport
1996 1997 1998 2009 2017
HIGHWAYCONCESSION: BR 116/ RS RAILWAY CONCESSION: São Paulos’s Rail Network
HIGHWAY CONCESSION:
Régis Bittencourt fernão Dias BR-101 RJ- ES Rio-Niterói Bridge Transbrasiliana Steel Road
HIGHWAY CONCESSION: Florianópolis’ Airport Salvador’s Airport Fortaleza’s Airport Porto Alegre’s AirportPORT TERMINAL CONCESION: 2 Ports terminals :
Santarém and Rio de Janeiro WheatTerminal
Timeline of Federal Privatization and Concession in Brazil
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Investiments trough Concessions (US$ Billion)
Private investments added up to more than US$ 500 Billion from 1990 to 2016
192178
4936
2816 15 12
Pow
er
Tele
com
Hig
hw
ays
Rai
lway
s
Air
po
rts
Wat
er
Gss
Port
s
Source: World Bank
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Source: Diário Oficial da União. Elaboração GO Associados.
54.5
25.022.0 20.7
15.8
8.44.6
Transport Urbanization Sanitation Solid Waste Health Housing Others
PPP contracts investments added up to more than BRL145 billion (US$ 40 billion) since 2015
Investments trough PPPs (BRL billion)
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Source: ABDIB.
1,51,7
1,8 1,8 1,82,0
2,2 2,3 2,3 2,4 2,4 2,4
2,1
1,71,5
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Need for investment: 5%
Note: Includes Energy, Transportation, Sanitation and Telecommunications. Oil and Gas not included. 2017 = Forecast
Inv. Infra (% GDP)
Investments in Infrastructure in Brazil (2003-2017)
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Annual Infrastructure Investments in developing countries as % of GDP
Source: ABDIB, World Economic Forum, Credit Suisse e International Institute for Management Development.
13,4%
6,2% 5,8%
2,1%
China Vietna Chile Colombia India Filipinas Brasil
11,4%
4,5%3,6%
Infrastructure investments in other countries
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Total investment need forecast for Brazil 2018-2038(US$ billion)
Source: GIHub
1.005
518
380
253174 171
10751
Infrastructure investment needs for the next 20 years add up tomore than USD 3 trillion in Brazil
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PPI – Investment Partnership Program (Law 13.334/16)
Investment Partnership Program (PPI – Programa de Parcerias de Investimento), also named as Growth Project or “Avançar Parcerias” to incentivize and increaseprivate investment through Privatization, Concessions and PPPs
PPI To define:• The long term federal policies for
the investments in federal publicinfrastructure trough partnershipsand privatizations
• The federal public infrastructureprojects/assets qualified for thepartnerships and the strategicguidelines for structuring, tendering and contracting
• The federal policies to supportpartnerships in publicinfrastructure projects/assets in States, Federal District (Brasilia) and Municipalities.
PPI Objective:• Expand opportunities for investment
and employment• Ensure the expansion and quality of
public infrastructure• Promote full and fair competition for
the partnerships• Ensure stability and legal certainty,
guaranteeing minimum interventionin business and investments
• Strengthen the regulatoryenvironment and the autonomy ofregulatory agencies
• Encourage Privatization, Concessions and PPPs (Public-Private Partnerships)
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Airport
4 International Airports
Concessions
Lei 11.079de 2004Lei de PPPs
18 monthsOf program
Qualified
145 projects
Investment of
BRL 142 billion (US$ 40 billion)Completed
70 projects
In progress
75 projects
Port
7 Terminal Operations
Concessions
Oil and Gas
4 Rounds of Auctions
Power
4 Power Transmission and
Generation Auctions
Source: Special Secretariat of the Investment Partnerships Program.
PPI Growth Project Progress
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As for the auctions held and contracts signed in 2017, it is worth highlighting the investment forecast about BRL 142 billion (US$ 40 billion) over the next decades
Source: Special Secretariat of the Investment Partnerships Program.
PPI – Investments from auction of projects in 2017
142
100.8
21.5
8.2
6.6
3.4
1.5
Total Oil and Gas PowerTransmission
Powergeneration
Airport Powerdistribution
Port Terminals
Expected investments for auctions held in 2017
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PPI – Pipeline of projects for 2H2018
Airports Concessions – AL, CE, ES, MT, PB, PE, RJ, SE.13Port Terminal Concessions – Cabedelo, Santos andSuape.7
Power Transmission and Distribution Concessions24
Bidding rounds of oil and gas fields exploration 2
CPRM mining rights4
PPP Communications Network Management Aeronautics Command - COMAER
Highway Concessions – BR 153/282/, BR 364 RO/MT,BR 364/365 GO/MG, BR 101/ 290/386/ 448 RS 3Railway Concessions – EF 151 SP/MG/GO/TO (North-South), EF 170 MT/PA (Ferrogrão) and EF 334 BA (Fiol)3
Bid
Timeline
4th quarter of 2018
4th quarter of 2018
Auction
3rd quarter of 2018
4th quarter of 2018
4th quarter of 2018
2nd quarter of 2019
4th quarter of 2018
1st quarter of 2019
4th quarter of 2018
4th quarter of 2018
3rd quarter of 2018
4th quarter of 2018
3rd quarter of 2018
3rd quarter of 2019
3rd quarter of 2018
4th quarter of 2018
Source: Programa de Parcerias para Investimentos
1
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The fiscal crisis in brazil brought back thesubject of privatization on the politic andeconomic agenda, and as a result states have104 projects under study and to be tenderedthroughout the next years.
The majority of these project will be eitherconcession or PPP, but couple statecompanies will be sold.
The 5 most common sector: Ports, Airports,Public Services, Tourism/Events, and Roads.
AL - 2
BA - 2
RS - 7SC - 2
MS - 3
MT - 6
SP - 4
RJ - 1
ES - 4
MG - 13
DF + GO - 18
PI - 22 CE - 14
RN - 6
State Projects (104)
• Jericoacoara Airport (CE); • Aracati Airport (CE);• Highways GO-010/020/060/070/080/139; E213 (GO); • Highways MT-100, MT-246 and MT-320 (MT);• Highway ERS-324, ERS287 e ERS020 (RS);• Industrial Complex and Port of Pecém (CE);• Port of Luis Correia (PI);• Sapucaia do Sul Zoologic (RS);• Ceará Convention Center (CE).
Opportunities
States – Pipeline of Projects
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Municipalities, like the States, also have 59projects under study to be tenderedthroughout the following years.
The majority of these project will be PPP anda couple state companies may be Privatized.
The 2 most common sector: Public Servicesand Tourism/Events.
Salvador, BA - 5
Porto Alegre, RS - 12
Florianópolis, SC - 2
São Paulo, SP - 13
Rio de Janeiro, RJ - 6
Teresina, PI -12
Municipal Projects (59)Boa Vista, RR - 2
Porto Velho, RO - 7
• Teresina Airport (PI);• Salvador Convention Center (BA);• Porto Alegre Convention Center (RS);• Public illumination in Porto Alegre (RS);• Public Illumination in Teresina (PI);• Public Illumination in São Paulo (SP);• Pacaembu Stadium (SP);• Lindolfo Monteiro Stadium (PI);• Waste management in Teresina (PI).
Opportunities
Municipalities – Pipeline of Projects
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Thank you
Mauricio EndoHead of Government & Infrastructure Latin AmericaKPMG in [email protected]+55-11-3940-8322