Newsletter August 2020 Newsletter of the Investments Partnerships Program
MINISTRY OF ECONOMY Paulo Guedes
DEPUTY MINISTRY OF ECONOMY Marcelo Pacheco dos Guaranys
SPECIAL SECRETARY OF THE SECRETARIAT FOR INVESTMENT PARTNERSHIP PROGRAM Martha Seillier
Deputy Special Secretary of the Secretariat for the investments partnesship program Bruno Westin Prado Soares Leal
Chief Advisor to the Special Advisory Service for Investors and New Businesses Robson Eneas de Oliveira
Secretary of Energy, Oil, Gas and Mining Romário de Oliveira Batista
Secretary of Transport Partnership Thiago Costa Monteiro Caldeira
Secretary of Promotion and Support to Partnerships of Federative Entities Wesley Callegari Cardia
Secretary of Support for Environmental Licensing and Expropriation Rose Mirian Hofmann
Editor Clarissa Alves Machado
Design Téo Fabi Lechensque
Special Secretariat of the Investment Partnerships Program SAUN QUADRA 05, LOTE C, 2º Andar, Torre D - Centro Empresarial CNC - Brasília/DF
www.ppi.gov.br [email protected] (61) 2025-4212
02 EDITORIAL 04 Change, results and transparency 04
SPECIAL 05 BR do Mar: see what may change in coastal shipping in Brazil with the new bill for the sector 05 Changes in the Brazilian Ports Law will bring more dynamism and competitiveness to the sector 09 PPI presents its projects portfolio to representatives of the Saudi Arabian Sovereign Fund 12
TRANSPORTATION AND LOGISTICS 13 Auction of cellulose terminals at the Port of Santos: BRL 505 million in concession fees 13 Public Consultation on the port lease project for the Areia Branca Salt Terminal, Natal (RN) 14 Decree qualifies São Gonçalo do Amarante Airport, in Natal (RN) in the PPI portfolio for rebidding purposes 15 Studies on the sugar handling terminal at the Port of Maceió (AL) are filed at TCU 16 Studies on wheat terminal in the Port of Fortaleza (CE) are filed at TCU 16 Governors of Mato Grosso do Sul and Paraná sign agreements to make Nova Ferroeste viable 17 TCU approves studies for the lease of the MAC10 terminal, in the Port of Maceió (AL) 19 Process for highway BR-381/262/MG/ES PPP filed with TCU 20 Operators and investment funds participate in the Ferrogrão Roadshow (EF-170) 21 Feasibility studies for ATU12 and ATU18 Bahia Port Terminals approved by TCU 23 Law 14.034/2020 sanctioned, providing for emergency measures for Brazilian civil aviatio 23
PARTNERSHIPS OF FEDERATIVE ENTITIES AND REGIONAL DEVELOPMENT 25 Campinas city will hold a public hearing on PPP project in public lighting 25 Notice to select consulting services for studies of the first PPP of daycare centers in the PPI portfolio 26 Auctions for the PPP of street lighting services in Aracaju (SE), Feira de Santana (BA) and Franco da Rocha (SP) (8/14) 27 Teresina city government signs agreement with FEP-CAIXA fund to structure a PPP on rainwater drainage services 29 Public Consultation on the PPP of water supply and wastewater services in the municipalities served by CEDAE/RJ 30
ENERGY, OIL, GAS AND MINING 31 Approval of the public notice for the 1st National Mining Agency’s Bidding Round 32 ANEEL approves the Bid Notice for Transmission Auction Nº 1/2020 32 Resolution recommends the creation of the "Pro-Strategic Minerals" Policy and its qualification in the PPI 32
TOURISM AND ENVIRONMENT 34 New PPP of the Iguaçu National Park: studies begin 34 Public hearing on the PPP of visitation services to the Canela National Forest (RS) 35 Four tourist properties officially included in the PPI portfolio 36 National Parks of Brasília (DF) and São Joaquim (SC) qualified in the PPI portfolio 37
PRIVATIZATION OF COMPANIES AND SERVICES 38 Postal Sector: BNDES selects companies that will carry out studies on partnership alternatives with the private sector 38 Resolution recommends excluding INSS shares in Caixa Seguros from the National Privatization Program 39 Resolution takes an important step towards deepening studies on Telebras to identify potential partnerships 40 Decree qualifies the “Fixed Quota Bet” service in the PPI portfolio 41
EVENTS AND OTHERS 42 Covid-19 and the great reset in Latin America: Leveraging international experience in the recovery process (12/8) 42 Dialogue with ABPT: The role of the PPI and plans for the post-crisis recovery (8/12) 42 Webinar “Regulation and Investment in Infrastructure in Brazil: Importance of Regulatory Impact Analysis” (8/13) 42 New sanitation legal framework: how to leverage private investment (8/18) 42 Webinar Accelerating the economic recovery (8/18) 43 Interview on CNN Express (8/20) 44 Interview for CBIC Agency 44 Valor's Live with Daniel Rittner (8/25) 44 Webinar "Challenges for Structuring Public Lighting PPP Projects" (8/26) 44 Live on the Environmental Licensing General Law (8/25) 45 Why a General Law on Environmental Licensing? (8/26) 45 Webinar “New Legal Framework for Sanitation” (8/31) 45
03 message of change, participating in webinars and EDITORIAL lives on topics such as sanitation, public lighting and environmental licensing, answering society’s questions. We have also carefully monitored the Change, results and public consultations held on the most diverse transparency projects; contributions made by participants are valuable in improving ongoing processes. August has been a month of many Much has been accomplished and there is more achievements for the initiatives in the portfolio of to come! We have signed a contract with the the Investment Partnerships Program (PPI). The city of Teresina to structure a pioneer project for auction of the cellulose terminals of the Port of the concession of urban drainage services; we Santos - a project of the Ministry of Infrastructure followed the signing of agreements between the / ANTAQ that resulted in a concession fee of governments of Mato Grosso do Sul and Paraná BRL 505 million plus expected investments of to advance with the Nova Ferroeste project; we more than R$ 400 million - and that of the public obtained approval from the Federal Court of lighting services of Aracaju (SE), Feira de Santana Accounts (TCU) on the studies of port terminals (BA) and Franco da Rocha (SP) - projects in which MAC10, in Maceió, and ATU12 and ATU18, in PPI supported municipalities together with the Bahia. We also took important steps in our social Ministry of Regional Development and Caixa agenda, with the hiring of studies to structure the Econômica Federal - are two milestones that first PPP of daycare centers. have highlighted the resumption of infrastructure auctions after the Covid19 crises. Last but not least, in September, the National Mining Agency will conduct its 1st Bidding Round As good as getting results is following the of Available Areas, and in December, the National evolution of processes that will bring even more Electricity Regulatory Agency (ANEEL) will hold development and progress to Brazil. This month, the Transmission Auction No. 1/2020. two laws aimed at improving the business It is difficult to synthesize so much in a few lines! environment of the port and civil aviation sectors In the next pages, we explain better each one have been enacted. Moreover, the Federal of these projects and ongoing processes. Good Government has submitted to Congress a bill that reading! institutes the “BR do Mar” Program, an initiative meant to stimulate the cabotage shipping market in Brazil. Investors are attentive to this movement: still in August, we met with representatives of the Sovereign Fund of Saudi Arabia, which maintains a group exclusively dedicated to Brazilian projects, such is the relevance attributed to the partnership with our country. We also highlight the successful Roadshow on the Ferrogrão project, which was attended by a wide range of potential funders and investors. This whole process proceeds with great partnership and transparency. We have been doing our best to meet the demands of the press, providing quality information with the utmost Martha Seillier promptness. The PPI team strives to transmit the Special Secretary of the Investments Partnerships Program 04 SPECIAL
BR do Mar: see what the bill, so that the two houses have 45 days each to evaluate the proposal. The may change in coastal text was produced based on a constructive shipping in Brazil with dialogue with a wide range of stakeholders, the new bill for the including authorities, ship-owners, naval sector industry entrepreneurs and maritime unions.
On 8/13, the Federal Government submitted to the National Congress bill The bill was prepared by the Ministry 4.199 / 2020, that creates the program “BR of Infrastructure, in partnership with do Mar”, aimed at stimulating the cabotage the Ministry of Economy and other shipping in Brazil. The objective is to federal government bodies and the modernize the rules applying to the sector Special Secretariat for the Investment in order to take advantage of the enormous Partnerships Program - PPI (the policy potential of Brazil’s coast and diversify the aimed at encouraging cabotage in Brazil country’s transportation system. was qualified in the program’s portfolio during the 10th PPI Council Meeting, held
The Government requested urgency for in August 2019).
05 Cabotage Program and proposes to change the In Brazil, “cabotagem” consists in the provisions of the current legislation on the transport of goods by shipping between subject, in order to increase competition national ports (it does not apply to other in the sector – including by facilitating the modes of transport). It demands less fuel chartering of foreign vessels. per ton transported and offers lower costs per ton-kilometer transported in relation Qualification in “BR do Mar”. to other modes, in addition to being safer To be qualified in the “BR do Mar Program”, and having lower environmental impact. companies will need to be authorized to operate as a Brazilian Shipping Company Although Brazil has almost 8,000 km of (Empresa Brasileira de Navegação - EBNs). coastline and most of the population inhabits the coastal areas, this mode This requires that they be constituted under corresponds to only 11% of the transport Brazilian law and have their headquarters system (much less than the 65% of roads) in Brazil. and is concentrated on the oil and gas industry. Companies will also have to prove a regular situation in relation to federal taxes and The Federal Government's goal is to expand to regularly present information on: the maritime fleet destined for cabotage by expansion, modernization and optimization 40% over the next three years (excluding of their activities and their fleet operating vessels dedicated to the transport of oil in Brazil; increase in the quality, quantity and its products), and to start transporting and efficiency of transport performed for up 2 million TEUs in 2022, which would users; creation and maintenance of regular represent an increase of 65% compared to cargo transportation operations; job the volume transported in 2019 (1.2 million valorization and qualification of the hired TEUs). national crew, among others.
Changes Fleet abroad. Bill 4.199/2020 establishes the BR do Mar The new law allows the EBNs qualified in
06 the “BR do Mar” Program to hire vessels for a specific period of time (time charter) from its wholly owned subsidiaries abroad, provided that they are established in a country that respects the Maritime Labor Convention.
This measure helps reducing operating costs and provides more legal certainty for potential investors, by bringing more clarity on the rules related to working conditions that apply to all seafarers working on the same vessel.
There will be some constraints to this type of chartering: it can only occur (i) in proportion to the number of ships registered in Brazil by the EBN; (ii) to replace a vessel under construction or repair (iii) to meet long-term transportation contracts; and (iv) to handle special cabotage operations.
New entrants. Current legislation on shipping requires EBN to have vessels registered in Brazil as a condition to charter a foreign vessel. This drastically increases the initial costs to enter this market, inhibiting the participation of new players.
In order to stimulate the entry of new investors in the sector, it will be allowed that an EBN can be constituted in the country using foreign vessels, provided that they are chartered in accordance with the rules established in the “BR do Mar” program.
Initially, EBNs will be authorized to bareboat charter only one foreign vessel. In this type of contract (aka as demise charter), the charterer has, for a limited time, the possession, use and control of the vessel, including the right to designate the commander and the crew - which means that the vessel must follow Brazilian rules on work and security conditions.
This limit will be extended to two vessels in 2021, and to three in 2022. Finally, from 2023 on, there will be no restrictions as to the number of foreign vessels bareboat chartered.
Compensation. Should investors choose to build vessels in a Brazilian shipyard, they will be able to charter
07 a vessel with twice the gross tonnage of the contracted construction in a national shipyard. The measure was meant as a kind of compensation for the National shipbuilding industry.
In addition, the bill provides for the possibility for companies qualified in BR do Mar to use funds from the Additional Freight for the Renewing of the Merchant Marine (AFRMM) to finance or serve as a guarantee for the construction and maintenance of vessels in Brazilian shipyards.
Temporary use. The BR do Mar bill also proposes the possibility of granting authorization for the temporary use of port areas, within the organized ports, for the consolidation of special operations whose scope is to create regular services for the transportation of cargo in type, route or market not yet existing nor consolidated in Brazilian cabotage.
Why “BR do Mar”? The Program's name is an allusion to the federal roads (known as “BRs”), as the idea is to further integrate national ports through "sea roads".
08 Changes in the Brazilian Ports Law will bring more dynamism and competitiveness to the sector
Less bureaucracy and idle capacity in the port sector, accelerated investments and job creation. Thus can be summarized the changes brought about by the conversion into law of Provisional Decree 945/2020, which was sanctioned on 8/25 by President Jair Bolsonaro.
In order to provide greater efficiency and dynamism to the management of public ports in Brazil, the PD 945/2020 Law Conversion Project, authored by Deputy Felipe Francischini, introduced important changes to the Ports Law (12815/2013).
The process was strongly supported by the Ministry of Infrastructure and by the Special Secretariat for the PPI / Ministry of Economy.
Changes The adaptations brought by the Project will bring more flexibility to the management of public ports, favoring a more rational use of space, the attraction of investments, as well as increased efficiency and expansion of the cargo handling capacity.
09 Freedom of pricing Competitive Bidding Exemption. Changes in the wording of art. 3 of the The new law also created the possibility Ports Law reinforced the logic of freedom of competitive bidding exemption when of pricing in port operations, repressing it is proven that there is only one player practices that are harmful to competition. interested in exploring the area, after a public call issued by the Port Authority. Simplification. Important changes were made in order to Before, it was necessary to go through all simplify and make the leasing contracts for the procedures and controls necessary to port facilities easier. Some contract clauses carry out a bidding process in order to meet are no longer considered essential, such the legal rites of port leasing, even when as: reversal of assets; adoption of customs there was no competition. inspection measures for goods, vehicles and persons, etc. Temporary use. ANTAQ. The bidding will not be mandatory under The new law clarifies the competence of the regime of temporary use for exploration the National Waterway Transportation of areas, allowing interested parties to test Agency (ANTAQ) in regulating other forms the feasibility of moving cargo without a of occupation and exploitation of port consolidated market through a contract areas and facilities which are not provided with a maximum term of 48 months. In the for in specific legislation. This provides the event that there is more than one interested Agency with more tools to encourage the party and it is not possible to allocate them use of idle areas in ports. all, the port administration will promote a simplified selection process to choose
10 the project that best serves the public and port interests. It is worth mentioning that, after the four-year period has elapsed, if the exploration of the new cargo proves to be viable, the government will hold a standard tender for the lease.
Legal certainty. The reform of the port law also made it explicit that the contracts signed between the concessionaires of the organized port (which exercise the role of private port administration) and third parties will be governed by the rules of private law, which reinforces legal security and increases the attractiveness of concessions.
Essential service. The new text changes the legislation of port workers and includes the category as an essential service. In addition, the daily escalation of independent workers must be carried out electronically (through a cell phone application), avoiding the agglomerations generated by the face-to-face escalation format at ports.
11 PPI projects, especially those in the area of PPI presents its transport, water security and sanitation. projects portfolio Among the highlights were Ferrogrão (a to representatives railway project linking the city of Sinop, in of the Saudi Mato Grosso, an important grain producer, to the Port of Miritituba, in Pará, which could Arabian Sovereign revolutionize national agro-export logistics) Fund and the Integration Projects of the São Francisco River and irrigation of the Baixio do Irecê. The initiatives for granting private water On 8/11, the Brazilian Government has and wastewater services to several Brazilian joined representatives of the Saudi Arabian municipalities, with support from the Federal Sovereign Fund (PIF) to present the main Government, were also mentioned. development projects underway in Brazil, especially in the areas of infrastructure, The representatives of the Saudi Sovereign energy and agriculture. Fund informed that they maintain a team dedicated to the analysis of Brazilian Organized by the Executive Office (Casa Civil), infrastructure projects, due to the relevance the meeting brought together representatives attributed to the strategic partnership with of the Ministries of Foreign Affairs, Economy, Brazil. The Fund reinforced its intention to Infrastructure (Minfra), Agriculture make investments of US$ 10 billion in Brazil, (MAPA), Mines and Energy (MME), Regional especially in the area of infrastructure, Development (MDR), the General Secretariat expressed during the presidential visit to of the Presidency of the Republic and BNDES. Saudi Arabia in October 2019. During the event, the PPI Special Secretary, Martha Seillier, presented the portfolio of
12 TRANSPORTATION AND LOGISTICS
Auction of Tarcísio de Freitas; EPL’s President, Arthur Lima; the Special Secretary for the PPI, Martha cellulose terminals Seillier; and the President of the Santos Port at the Port of Authority (SPA), Fernando Biral.
Santos: BRL The winner for the STS14 terminal was 505 million in Eldorado Brasil Celulose SA, which offered BRL 250 million in concession fee. The contract concession fees has a 25-year term and estimated global gross revenue of BRL 2.19 billion. The investments On 8/28, the National Waterway Transportation to be made by the lessee amount to BRL 186.8 Agency (ANTAQ) held the auction session million and, after the implementation of the for the two cellulose terminals (STS14 and storage structures, the terminal (which has STS14A) of the Port of Santos. The ceremony an area of 44.5 square meters), will reach an was attended by the Minister of Infrastructure, estimated static capacity of 120,888 tons.
13 In the auction of the STS14A terminal, the Public Consultation winner was Bracell Celulose, with an offer of BRL 255 million (Eldorado Brasil Celulose on the port lease had offered a higher value - BRL 260 million project for the - but since a provision in the bidding notice determines that a single winner could not Areia Branca Salt take both terminals, to enhance competition Terminal, Natal (RN) between terminals, the company chose to give up the STS14A). The contract also has a 25- The Public Consultation on the port lease year term and estimated global gross revenue project for the Areia Branca Salt Terminal, in of BRL 2.19 billion. Investments to be made by Natal, state of Rio Grande do Norte, conducted the winner amount to BRL 193 million. After by ANTAQ, was concluded on 8/26. the implementation of the storage structures, the 45,177-square-meters terminal will reach The consultation, which included a virtual an estimated static capacity of 128,000 tons. public hearing held on 8/11, received about 240 contributions. Improvement suggestions Located in the Macuco region, areas STS14 will be analyzed by ANTAQ and may contribute and STS14A are intended for the handling and to improvements to bidding documents. storage of general cargo, especially cellulose.
Both will be served by three contiguous The project was qualified in the PPI during the mooring berths, have road connections and 13th PPI Council meeting, held on 6/10, and are located next to the port's railway lines. involves investments of approximately BRL 162 million over the 25 years of the contract, The projects were qualified in the PPI during in addition to generating more 3,000 direct the 10th Meeting of the PPI Council through and indirect jobs. Resolution No. 69/2019, later converted into
Decree 10.138 / 2019. After the public consultation, the studies will be filed with the Federal Court of Accounts (TCU).
14 for signing an amendment to the contract, with rules for the return of the airport, the Decree qualifies presidential decree provides for the repeal of São Gonçalo do Decree 7.205/2010, which had established a specific concession model for ASGA, conceded Amarante Airport, to the private sector in 2011. in Natal (RN) in With this revocation, a single model for the PPI portfolio concession of airports in Brazil comes into for rebidding force, as established in Decree 7.624/2011, purposes bringing greater uniformity and legal certainty to the future concession of ASGA.
The first steps towards the new concession Decree 10.472 / 2020, published on 8/25, of ASGA have already been taken: on 6/8, the qualified the São Gonçalo do Amarante National Secretariat for Civil Aviation of the Airport – ASGA (which serves the municipality Ministry of Infrastructure opened a Public of Natal, capital of Rio Grande do Norte) in the Call to present feasibility studies for the PPI portfolio for rebidding purposes. concession.
In addition to establishing a 90-day period The auction for the new ASGA concession is
15 scheduled to take place in the second half of The project belongs to the Ministry of 2021. Infrastructure and was qualified on PPI´s portfolio during the 13th PPI Council Meeting, Studies on the held on 6/10. sugar handling After the assessment by TCU and possible terminal at the Port adjustments to the bidding documents, the of Maceió (AL) are auction session is expected to be held in the first quarter of 2021. filed at TCU
After approval by the ANTAQ, the Ministry of Studies on wheat Infrastructure filed the bidding documents for the MAC13 area in the Port of Maceió/Alagoas, terminal in the Port with the Federal Court of Accounts (TCU) on of Fortaleza (CE) 8/25. are filed at TCU
The cargo terminal is intended for the After the conclusion of the public consultation handling, storage and distribution of solid stage, conducted by ANTAQ, the Ministry of vegetable bulk, mainly sugar. The initiative Infrastructure filed with the Federal Court involves investments of BRL 55.7 million and of Accounts (TCU) the studies related to the has a contractual term of 25 years. lease process of the MUC01 area, in the Port
16 of Fortaleza/Ceará (8/25). The initiative was After the TCU's statement on the documents qualified in the PPI portfolio during the 13th submitted and possible adjustments, the Meeting of the PPI Council (10/6). auction session is expected to be held in the first quarter of 2021. With 6,000 square meters, the area called MUC01 is intended for the handling and storage Governors of of solid vegetable bulk, especially wheat grain. Investments to be made by the auction winners Mato Grosso do over the 25 years of the contract total BRL 56.7 Sul and Paraná million. sign agreements
The overall value of the contract is BRL 516.6 to make Nova million. Future terminal lessees will pay Ferroeste viable monthly BRL 63,231 to the port authority for the use of the area, and an additional BRL 1.54 On 8/19, the Governor of Paraná, Carlos per ton handled. Massa Ratinho Junior, and the Governor of Mato Grosso do Sul, Reinaldo Azambuja,
17 signed agreements to make Nova Ferroeste covers the revitalization and construction viable. The project aims at creating an of railway sections, depending on the export railway corridor connecting the results of the studies. grain producing pole of Mato Grosso do Sul and western Paraná to the port of The initiative meets the objective of Paranaguá. expanding the national railway network in order to meet the export cargo The ceremony was held virtually and was transportation and promote a greater also attended by the PPI Special Secretary, participation of this mode in the Brazilian Martha Seillier. A Technical Cooperation transportation system, since it reduces Agreement was signed between Paraná and freight costs, has more cargo capacity in Mato Grosso do Sul and a contract for the relation to other modes and offers more execution of the Technical, Economic and security in the transportation of goods. Environmental Feasibility Studies of the Western Export Corridor project, covering The inclusion of the state company Estrada the stretches Maracaju (MS) - Paranaguá de Ferro Paraná Oeste - Ferroeste in the (PR) and Cascavel Branch (PR) - Foz do PPI portfolio was recommended through Iguaçu (PR). The corridor will have an Resolution 133/2020 of the PPI Council. estimated length of 1370 km. The project The company holds the concession to build
18 and operate an existing railway between and storage of liquid bulk, especially sulfuric the cities of Guarapuava and Cascavel, with acid, in accordance with the Port of Maceió the possibility of extending it to Dourados, Development and Zoning Plan. in Mato Grosso do Sul. The contract will have a 25-year term. The The support of the Federal Government for future lessee is expected to make investments the privatization of Ferroeste through its estimated at BRL 12.7 million in facilities qualification in PPI met a request from the and equipment necessary for operation, Government of the State of Paraná, aiming which include storage tanks, pipelines, road at attracting private investments that are shipping systems and a pump station to fundamental for the project. enable the implementation of the projected static capacity.
TCU approves The demand for chemical products in the complex is highly influenced by the presence studies for the of the Alagoas Chlorochemical Complex, lease of the MAC10 terminal, in the Port of Maceió (AL)
The Federal Court of Accounts (TCU) approved on 8/12 the studies related to the MAC10 terminal lease project, in the Organized Port of Maceió/Alagoas. The initiative was qualified in the PPI portfolio during the 12th meeting of the PPI Council, held in February this year.
The terminal is a 7,932 square meters greenfield area, dedicated to the handling
19 located in the municipality of Marechal (TCU) on 8/10 the studies related to the PPP of Deodoro. There is also an expectation that BR-381/262/MG/ES. The main route between the sulfuric acid handled in the complex will Minas Gerais and Espírito Santo states has meet the demand of the fertilizer industries been qualified in PPI portfolio at the 9th installed in Satuba (AL), which today receive Meeting of the PPI Council through Resolution the product imported through the Port of No. 52/2019, confirmed by Decree No. 9972 / Aratu-Candeias (BA). 2019.
The approval of the studies by TCU is an The PPP project consists on the purpose of important stage of the project, which exploring the infrastructure and providing concluded the public consultation process public services for recovering, operating, on 2/23 this year. In September ANTAQ will maintaining, monitoring, conserving and publish the auction notices and the auction improving the service level of the BR-381/ session should happen in December this year. MG highways (between Belo Horizonte and Governador Valadares) and BR-262/MG/ES (between João Monlevade/MG and Viana/ES). Process for The stretches in question have a total length highway BR- of 672 km.
381/262/MG/ES The concession has a 30-year term, with PPP filed with TCU investments estimated at BRL 7.7 billion. There are plans to generate more than 12,000
The National Land Transportation Agency direct and indirect jobs. The initiative has (ANTT) filed with the Federal Court of Accounts already gone through the Public Consultation
20 process, completed on 5/08/2020.
In addition to generating jobs and income, the initiative has great potential to boost the economy of both states, favoring the agricultural, automotive and mining sectors. According to the Feasibility Studies with draft auction notice and contract made available during the public consultation, works are expected to duplicate 590.48 km. Along the concession, the construction of 131.32 km of marginal roads, 138.07 km of additional lanes, the Manhuaçu Belt Highway, 45 grade separation devices, 3 tunnels and 50 footbridges are also planned.
The publication of the auction notice is scheduled for the 4th quarter of 2020 and the auction session should take place in the 1st quarter of 2021. The auction criterion is hybrid, with a combination of lower tariff (discount limited to 15.53%) and higher concession fee. Another innovation concerns the “frequent user discount”, which will favor those who make small trips between nearby municipalities.
Operators and investment funds participate in
21 the Ferrogrão Participants had the opportunity to make Roadshow (EF-170) questions and report their impressions about the attractiveness of the project, whose bidding documents and studies have been Between July 30 and August 7, the Special filed with the Federal Court of Accounts (TCU) Secretariat for the PPI, together with the on July 10. Ministry of Infrastructure, ANTT and the Logistics and Planning Company (EPL) , held Executive summary on the Ferrogrão a Roadshow on Ferrogrão, the railway project Roadshow, with complete information that will connect the city of Sinop (MT) to about the participants, is available in the the port of Miritituba/Pará. Investments are institutional publications area of the PPI estimated at BRL 21.5 billion over the 69 years website: https://www.ppi.gov.br/html/ of the concession period. objects/_downloadblob.php?cod_blob=8138 Feasibility studies, draft public notice and In all, 22 meetings were held by concession contract for the Ferrogrão railway videoconference with potential national and are available at: https://bit.ly/anttferrograo. international financiers and investors in the infrastructure area. The PPI team presented More information about the concession the measures that have been adopted in project is also available in the presentations Brazil to mitigate risks of the project and an used by the PPI team during the Roadshow: estimated schedule for publication of the https://www.ppi.gov.br/html/objects/_ auction notice and the auction session (1st semester 2021). downloadblob.php?cod_blob=7989
22 in August, 2019, during the 10th meeting of the PPI Council: Feasibility studies ATU12: brownfield project of approximately for ATU12 and 160,000 square meters, with an expected ATU18 Bahia average handling of two million tons/year. Projected investments are worth BRL 250 Port Terminals million throughout the 25 years of contractual approved by TCU term.
ATU18: greenfield project, with an estimated On 8/5, the Federal Court of Accounts (TCU) area of 51,600 square meters. Designed to approved the feasibility studies for the PPP handle 8 million tons/year at the end of the of the ATU12 and ATU18 port terminals at the contract. Projected investments are worth Port of Aratu/Bahia. The studies had been BRL 120 million throughout the 15 years of filed with the Court in March. contractual term.
The two terminals are prepared for solid bulk, Next steps. In September ANTAQ will especially soybeans and fertilizers, being publish the auction notices and the auction crucial to meet the demands of agricultural session should happen in December this year. production in MATOPIBA - a region that covers areas in the states of Maranhão, Tocantins, Piauí and Bahia (the name “Matopiba” is an acronym formed with the initial letters of Law 14.034/2020 these five brazilian states). sanctioned, The assets were qualified in the PPI portfolio providing for
23 contributions due in 2020 provided for emergency in airport concession contracts may be measures for paid until 12/18 this year, with monetary restatement calculated based on the Brazilian civil National Consumer Price Index - INPC. aviation Contractual liability of suppliers. Indemnities for moral damages resulting On 8/6 was published Law 14,034/2020, from flight delays and cancellations, which provides for emergency measures to or delays in the delivery of luggage or assist the Brazilian civil aviation sector due cargo, are conditioned upon the effective to the COVID-19 pandemic. demonstration of the occurrence and The Law’s starting point was the Provisional extent of damage by the users of the Measure 925/2020, issued in March of this service. year, which allowed airlines to extend to 12 months the deadline for refunding In addition, in the event of damage passengers whose flights were canceled resulting from air transport of passengers, due to the pandemic. carriers cannot be held responsible if it is proved that measures have been taken The initiative sought to give respite to to prevent damage due to Acts of God or companies in a moment of sudden drop force majeure circumstances. The law in demand and when airport authorities indicates as Acts of God or force majeure around the world imposed restrictions restrictions on landing or takeoff resulting on commercial flights, causing mass from adverse weather conditions or by a cancellations. declaration of a pandemic, among others.
Changes Refund and credit. Provisions added during the process Refunds of tickets for flight cancellations of converting the Provisional Measure between 3/19/2020 and 12/31/2020 may be 925/2020 into law in the Brazilian made within twelve months, counted from Congress not only contribute to reduce the date of the canceled flight, in updated the impacts of the crisis, but also provide amounts based on the INPC (National for more structural changes in the sector, Consumer Price Index). allowing the improvement of the business environment in the airline sector. In replacement for refunding, companies Respite. The fixed and variable
24 may offer consumers the option of transportation services concessions and receiving credit of a value greater than or to air transport auxiliary service providers, equal to that of their ticket, to be used by on the condition that they prove to have consumers themselves or by third parties suffered damage as a result of the COVID-19 to purchase products or services offered pandemic. by the company within 18 months from the date of the cancelled flight. International Boarding Charge. The new law extinguishes the US$ 18 FNAC. International Boarding Charge (TEI), from Resources from the National Civil Aviation 2021 onwards. The measure will reduce Fund (FNAC) may be the subject to international airfares, favoring passengers and guarantee of a loan, to be signed by 12/31/2020, for provision to airport and the low cost airline market. concession holders or to regular air
PARTNERSHIPS OF FEDERATIVE ENTITIES AND REGIONAL DEVELOPMENT
Campinas city will hold The Municipality of Campinas (SP) will hold a public hearing on a public hearing to present a PPP initiative PPP project in public for the provision of public lighting services, which includes developing, modernizing, lighting expanding, operating and maintaining the
25 municipal public lighting network for a period the PPP is carried out by Caixa Econômica of 13 years, with estimated investment of BRL Federal, with a technical partnership and co- 460 million. financing from the World Bank, via IFC and the Global Infrastructure Facility. The Public Hearing will take place on 9/15, from 10 am to 12 pm (BRT) and, in the context The initiative contemplates the modernization of the COVID-19 Pandemic, it will be held and maintenance of 150,000 public lighting virtually. The rules for participation in the points in the municipality, using LED lamps public hearing are available at http://www. and remote management, providing a more campinas.sp.gov.br/ppp-iluminacao.php. modern and economical lighting network. The auction is expected to be held later this The project was selected by PPI, through the year. FEP fund, and has support from the Ministry of Regional Development. The structuring of
Notice to select studies to structure a PPP pilot project related to public units of early childhood education in consulting services for the city of Teresina, Piauí state. studies of the first PPP The project aims to assign to private partners of daycare centers in the mission of building, managing, operating, the PPI portfolio conserving and maintaining up to 40 new educational units in the capital of Piauí, On 8/18, the BNDES published the notices through the administrative concession to select the consultancy responsible for the regime.
26 Right to education. The studies. The initiative is part of the Ministry of The studies conducted by the BNDES Education (MEC)’s policy to promote public will define the modeling of the project education establishments. The policy was and the structuring of the partnership, qualified in the Investment Partnership covering technical, economic, financial and Program (PPI) through Decree 10.134 / 2019. environmental aspects. They will serve as a reference to prepare the set of documents The objective is to reduce the shortage of necessary for bidding and contractual places through partnerships, with efficiency management (notice, contract, etc.). and quality gains in the provision of public early childhood education services in Once completed, the studies will be submitted the states, the Federal District and the to a public consultation so that all interested municipalities, in order to guarantee the right parties can evaluate the modeling of the to education. partnership in all its aspects, in addition to making their contributions. Currently, only a third of Brazilian children aged 0 to 3 years have access to daycare The contracting documents for the studies centers. This shortfall of infrastructure and are available at services disproportionately affects the https://www.bndes.gov.br/wps/portal/site/ poorest families. home/transparencia/licitacoes-contratos/ licitacoes/pregoes-eletronicos/pregoes- The main challenges to the provision of eletronicos-2020. the service by the public authorities are the difficulty in concluding works and the Auctions for the PPP of restrictions on hiring staff, due to the current fiscal situation. street lighting services in Aracaju (SE), Feira In the PPP model, access to education will de Santana (BA) and remain free, and the government will continue to be responsible for defining pedagogical Franco da Rocha (SP) and didactic plans. The private partner will (8/14) be responsible for the construction and operation of the units, and will be paid by the The auction session to select the government.
27 company/consortium responsible for the See the result of each auction: public street lighting services in the cities of Aracaju (SE), Feira de Santana (BA) and Aracaju: Franco da Rocha (SP) took place on 8/14, the project in the capital of Sergipe state in the São Paulo Stock Exchange (B3). involves the modernization of 58,000 street lights and investments estimated at BRL The session was attended by the Minister 257 million. Winner was Conecta Aracaju of Regional Development, Rogério consortium, which offered the lowest Marinho, PPI Special Secretary, Martha monthly consideration (BRL744,555) – Seillier, Caixa's Vice President, Tatiana Discount of 58.7%. Thomé, in addition to the mayors of the three municipalities and representatives Feira de Santana: of the Financial International Corporation The project in the second most populous (IFC). municipality in the state of Bahia involves the modernization of 61,000 street “Aracaju, Feira de Santana and Franco da lights and investments estimated at BRL Rocha were our first three Public Private 275 million. Winner was Conecta Feira Partnerships in public street lighting and consortium, which offered the lowest there are 14 more to come. Later this year, monthly consideration (BRL 785,800) - we will hold the auctions for Sapucaia do Discount of 56.2%. Sul (RS), Belém (PA) and Campinas (SP). We believe in the economic recovery through Franco da Rocha: partnerships with the private sector”, said The initiative involves investments of Martha Seillier during the event. BRL 58 million and the modernization of 10,000 street lights in the municipality.
28 Winner was Luz in Franco da Rocha Urban Drainage Master Plan, the studies Consortium, which offered the lowest will detail and seek ways to enable the monthly consideration (BRL249,249.98) - construction of flood protection structures Discount of 38.75% in the central part of the city (which is located between the Parnaíba and Poti The winner in each municipality must Rivers); in the PD12 microbasins, which develop, modernize, expand, operate and serve the districts of Vermelha, Nossa maintain the municipal public lighting Senhora das Graças and Monte Castelo; network for a contractual term of 13 years. and in the PD14 microbasins, which serve It is part of the scope of the projects to the neighborhoods of Jóquei Clube, Horto use LED lamps and remote management and Nossa Senhora de Fátima. devices in lampposts, in order to reduce energy consumption, improve the quality Flood solutions. of services and enhance the use of urban The studies aim to investigate technical spaces by the population. and economic alternatives to make feasible the construction of dykes on the right and left banks of the Poti River, among other Teresina city works. government signs The Federal Government will invest BRL agreement with FEP- 3.8 million on the initiative (studies and CAIXA fund to structure tecnhnical suppport) so that the city may a PPP on rainwater delegate to the private sector the necessary investments to solve the problem. The drainage services assessments are expected to be completed in 2021.
The government of Teresina city, state of Piauí’s capital, signed on 8/5 a contract The private partner will be responsible for with the FEP-CAIXA, to carry out studies operating and maintaining the structures to structure the first municipal PPP of built for a period of up to 35 years, ensuring rainwater drainage services in Brazil. its full functionality.
In line with the provisions of the city's
29 Between 6/8 and 8/7, the Government of the State of Rio de Janeiro held a public consultation on the project to grant water supply and wastewater services in the 64 municipalities currently operated by CEDAE (State Company of Water and Sewage of Rio de Janeiro).
The initiative involved the participation of a Successful model. wide range of civil society members, including Teresina City Hall has already made academics, businessmen and civil servants. It successful concessions in the areas of included three virtual public hearings, which are water supply, wastewater treatment, public available on the State of Rio de Janeiro’s channel lighting and solid urban waste management. on YouTube:
Using this model in the area of urban 1st Public Hearing (6/25) https://youtu.be/pZvhzKqKxH8 drainage, the government seeks to create 2nd Public Hearing (7/6) conditions to prevent the occurrence of https://youtu.be/jbFjfHjhxw4 floods, mitigate the effects of climate change 3rd Public Hearing (8/4) on the city and promote the recovery of https://youtu.be/e3NCI_pYAwU economic activity.
In total, the project received around 1100 This is one of the pilot projects financed contributions, which will serve as a basis for by FEP, which innovates by promoting the improving the bidding documents. The auction structuring of solutions for urban drainage notice is expected to be published by November and provides Brazilian municipalities with this year. a new tool to face the problems of flooding, All documents released during the consultation which plague urban centers on a recurring (bidding and contract v, among others.) are basis, causing human and material losses. available at http://www.rj.gov.br/consultapublica/ (Portuguese). It is the largest PPP project in the Public Consultation on basic sanitation sector being structured in Brazil, the PPP of water supply with the support of Federal Government, and expected investments of more than R$ 33 billion, and wastewater services aiming at the universalization of water and sewage in the municipalities services for the population. served by CEDAE/RJ 30 ENERGY, OIL, GAS AND MINING
Approval of the project. Decree 9406/2018 established a new selection model, according to which the areas public notice for the must be the object of a prior public offer by ANM; if there are two or more interested 1st National Mining parties, the areas are submitted to an electronic auction, to be decided according to Agency’s Bidding the highest amount offered. Round As the opening of new areas has been suspended since 2016, it is estimated that The National Mining Agency (ANM) board there are more than 57,000 available areas approved the auction notice for the 1st in the ANM portfolio, with large pent-up Bidding Round (“Availability of Areas”) on investments in the sector. 8/31. Already in the new format, the 1st ANM Bidding Round will include the offer of approximately The initiative aims to select investors 500 areas. The publication of the definitive interested in proceeding with mining projects notice and the launch of the prior public offer already conceded to third parties, but which by ANM are scheduled for the beginning of have returned to the ANM portfolio for some September. reason, such as refusal of claim for mineral title. The 2020 ANM Bidding Rounds were qualified in the PPI portfolio by Decree 10.389, dated of Until 2018, the selection of interested parties 6/5. took place according to the best technical
31 ANEEL approves 6/29/2020 with 29 participants). the Bid Notice for Next steps. Transmission Auction After approval by Aneel's board of directors, the Bid Notice and other bidding documents Nº 1/2020 proceed to the Federal Court of Accounts (TCU).
The National Electricity Regulatory Agency In case of changes, the texts will be submitted (ANEEL) approved, on 8/6, the bid notice for to Aneel again next November. The auction is Transmission Auction No. 1/2020. expected to be held on December 17 this year. The deadlines for completing the construction The tender comprises the concession of of the transmission facilities vary between 42 the services of construction, operation and and 60 months maintenance of transmission lines facilities in 11 lots spread over nine Brazilian States: Amazonas; Bahia and Ceará; Goiás and Mato Grosso do Sul; Espírito Santo, Minas Gerais Resolution and São Paulo; Rio Grande do Sul. recommends the Projected investments are worth BRL 7,4 billion and more than 15,000 jobs are expected creation of the "Pro- to be created, contributing to the economic Strategic Minerals" recovery post-COVID 19 pandemic. Policy and its The approved text for the Bid Notice qualification in the PPI considered the 500 contributions received through the Public Consultation No 46/2019, Resolution 126/2020, published on 8/4, which was carried out in two phases (the recommends to the President of the first between 12/20/2019-2/3/2020, with 18 participants, the second between 5/14/2020- Republic the creation and qualification in
32 the PPI portfolio of the Support Policy for licensing, the projects considered relevant Environmental Licensing of Investment for the expansion of national production of Projects on the Production of Strategic strategic minerals. Minerals – named "Pro-Strategic Minerals". Coordinated by the Ministry of Mines and The decision was deliberated during the latest Energy (MME), the Committee will count on meeting of the PPI Council, held on 6/10. the participation of the Special Secretariat of the PPI / ME; the Institutional Security Office The policy aims to select projects dedicated (GSI) and the Special Secretariat for Strategic to the production of minerals deemed Affairs (SAE) of the Presidency of the Republic; strategic for the development of the country and the Ministry of Science, Technology and and to promote the articulation of different Innovations (MCTI). The Interministerial government agencies for the purpose of Committee should be created by decree supporting environmental licensing. together with the Strategic Pro-Minerals policy. The selected projects will have the support of the Special Secretariat for the PPI in their Criteria environmental licensing processes, which are conducted by the competent environmental Resolution 126/2020 lists the characteristics agencies. PPI will also help with the necessary of mineral goods that may qualify a mining articulation to minimize risks and solve investment project to receive priority conflicts. treatment within the government:
PPI's performance will favor the integrated - Mineral goods on which Brazil is largely assessment of socioenvironmental impacts by dependent on imports to supply key sectors of facilitating, for example, the dialogue between the economy (such as, for example, potassium the environmental agency responsible for and phosphate, which are essential for the conducting the environmental licensing production of agricultural fertilizers); process and authorities such as the managing bodies of Conservation Units, the National - Mineral goods important for application in Indian Foundation (Funai), the National high-tech products and processes (case of so- Institute for Colonization and Agrarian Reform called rare earths, which are fundamental for (Incra) and the National Institute of Historic the electronics industry and semiconductor and Artistic Heritage (Iphan). production, among other uses); and
- Minerals in whose production Brazil has Strategic projects. comparative advantages, being essential for The Interministerial Committee for the the economy due to the generation of surplus Analysis of Strategic Mineral Projects in the trade balance. (CTAPME) will have the competence to define, for purposes of supporting environmental
33 TOURISM AND ENVIRONMENT
New PPP of the Iguaçu Through presidential decree 10147/2019, the conservation unit was included in the National Park: studies PPI portfolio for the purpose of granting the provision of public services to support begin visitation, conservation, protection and management of the park. A meeting held on 8/26 marked the launch of works to structure the new PPP of the Iguaçu Notice. National Park, Paraná state. The concession Earlier this year, BNDES published a notice comprises public services to support visitation, for hiring specialized consultants for the revitalization, modernization, operation and development of studies and modeling for maintenance of tourist activities in the park. the new PPP. The winner was the Iguaçu Consortium, formed by BF Capital (leader) Representatives from the Ministry of the and by the companies Natureza Urbana and Environment (MMA), ICMBio, BNDES, the PPI Azevedo Sette Advogados. Technical studies Special Secretariat and the Iguaçu Consortium of economic-financial feasibility, engineering participated in the meeting, in addition to the and architecture will be prepared, in addition Semeia Institute with which the BNDES has a to the preparation of the documents necessary cooperation agreement. for the auction process (draft public notice, contract and attachments).
Concession. Once the studies have been completed and The Iguaçu National Park was granted in the the modeling for the concession is proposed, late 1990s to a private operation. With the the project will be submitted to a public end of the current PPP contract approaching, consultation and undergo evaluation by the the Chico Mendes Institute for Biodiversity Federal Court of Accounts (TCU). Conservation (ICMBio) sought support from The next phases are to publish the public the Special Secretariat for the PPI and the notice (with possible adjustments, depending BNDES to structure a new concession project. on the court's opinion) and the auction session.
34 Public hearing on the PPP of visitation services to the Canela National Forest (RS)
On 8/20, a public hearing was held on the PPP of support services for visitation to the Canela National Forest, in Rio Grande do Sul state, under the coordination of the Chico Mendes Institute for Biodiversity Conservation (ICMBio) and with the participation of teams from the Ministry of the Environment (MMA) and the PPI Special Secretariat. The event included a meeting at the Canela’s City Council and online participation of interested parties through Zoom and YouTube. The event is available at ICMBIO’s channel on the platform: https://youtu.be/ximRSrAimBA
Participants were able to ask questions and make suggestions, whereas ICMBIO, MMA and PPI teams provided answers. All contributions were registered and will, as far as possible, be used to improve the project and the bidding documents.
The National Forest of Canela has an area of 557 hectares, with altitudes ranging from 740 to 840 meters, and has a vocation for adventure tourism. The establishment of a partnership with the private sector to provide public services to support visitation, protection and management of the conservation unit aims to contribute to the revitalization and maintenance of the area, in addition to encouraging ecological and sustainable tourism.
35 Four tourist properties recovery through private investments. The revitalization of these spaces will contribute officially included in to boost local tourism, with positive impacts in terms of job and income generation. the PPI portfolio Preservation Presidential Decree 10.466/2020, published In addition to the Ministry of Tourism and the on 8/19, formalized the inclusion of four Special Secretariat of the PPI, the initiative is tourist properties in the PPI portfolio for PPPs: being monitored by the National Institute of the Fortress of Santa Catarina, in Cabedelo, Historic and Artistic Heritage, to ensure that state of Paraíba; the Pau D`Alho Farm, in any interventions respect the landscape, São José do Barreiro, state of São Paulo; architectural and historical features of the the Fort Nossa Senhora dos Remédios, in tourist spots. Fernando de Noronha, state of Pernambuco; and Fort Orange, on Itamaracá Island, also in Discussions are already underway with the Pernambuco. BNDES to carry out technical, economic and environmental feasibility studies for the The projects will be the pilots of the Program selected assets, which will serve as a reference “Revive Brasil”, which was born from a Brazil- for the preparation of bidding notices. In the Portugal cooperation protocol signed by the future, a public consultation stage is also Ministry of Tourism of Brazil and the Ministry planned for broad participation by society. of Economy of Portugal. The objective is to carry out bids for the PPP of vacant The inclusion of historic and cultural historic and cultural sites, aiming at their properties in the PPI portfolio is part of the 36 policy of attracting private investments to the tourism sector, which was qualified in the Created in 1961, the Brasilia National Park Program through Decree 10.349, of 5/13/2020. is a Conservation Unit and covers a total area of approximately 42,300 hectares and its main attractions are the pools supplied National Parks of by water from springs located in or near the park, which allows the renovation to continue Brasília (DF) and São constant water. The installation has two trails, Joaquim (SC) qualified on which visitors can observe the fauna and flora of the Cerrado, in addition to the “Ilha da in the PPI portfolio Meditação”, where bird watching is possible.
The São Joaquim National Park, also created Presidential Decree 10447/2020, published in 1961, occupies an area of approximately on 8/10, qualified in the PPI portfolio and 49,800 hectares in the mountainous region included in the National Privatization Plan of the state of Santa Catarina, between the National Park of Brasília, in the Federal the municipalities of Urubici (where the District, and the National Park of São Joaquim, Administrative Headquarters of the Park is in Santa Catarina, for the purpose of granting located), Bom Jardim da Serra, Grão Pará, to a private partner the provision of public Lauro Muller and Orleans. The park has several services to support visitation, conservation, attractions, such as the Morro da Igreja, the protection and management of the two so-called “Pedra Furada”, slopes, forested conservation units. canyons, cliffs and countless waterfalls and rivers. It is ideal for experiences such as The parks are currently managed by the Chico hiking, horseback riding, climbing, mountain Mendes Institute for Biodiversity Conservation biking and other recreation and leisure (ICMBio), which responds to the Ministry of activities. Because it is located in one of the the Environment. With the inclusion in the coldest regions of Brazil, the park is home to PPI portfolio, the concession projects become forest landscapes that are often covered with a priority for all public agents involved in the snow, offering an unprecedented experience concession process. for many Brazilians.
37 PRIVATIZATION OF COMPANIES AND SERVICES
Postal Sector: BNDES selects companies that will carry out studies on partnership alternatives with the private sector
On 8/26, BNDES completed the selection of consultancies responsible for studies in the postal sector for the purpose of assessing the possibilities of partnership with the private sector.
The stage was marked by a kick-off event in which the PPI Special Secretary, Martha Seillier, met with the President of the Correios, General Floriano Peixoto Vieira Neto, the BNDES Director for Privatizations, Leonardo Cabral, the Secretary of Telecommunications from the Ministry of Communications, Vitor Elisio Menezes and the Special Secretary for Privatization, Divestment and Markets from the Ministry of Economy, Idalicio de Jesus Silva.
The selected consortium, composed of Accenture do Brasil (leader), Machado, Meyer, Sendacz, Opice and Falcão Advogados, will be responsible for providing strategic consultancy,
38 legal and communication advisory services.
The selection process of the proposals was carried out by an Evaluation Committee that considered, in addition to the price, criteria such as: the demonstrated understanding of the postal sector and ECT (Brazilian Post and Telegraph Corporation – Correios); technical studies and their objectives; experience in postal sector projects; and the curriculum of the dedicated team that will be allocated to the technical studies.
The Brazilian Post and Telegraph Company is a federal public company linked to the Ministry of Communications, responsible for sending and delivering mail in Brazil. With almost one hundred thousand employees, it is present in virtually all Brazilian municipalities, and annually performs about 156 million services, including messages and orders.
The company was qualified in the PPI portfolio through Presidential Decree 10.066/2019, issued in October 2019. The decision was deliberated during the 10th Meeting of the PPI Council. The Decree also established an Interministerial Committee responsible for monitoring the initiative, whith representatives from SPPI, the Ministry of Economy, the Ministry of Communications, BNDES and the Correios.
Next steps. Studies are expected to start immediately. The first phase should be delivered by the end of this year.
Resolution recommends excluding INSS shares in Caixa Seguros from the National Privatization Program
Resolution 140/2020 of the PPI Council, published on 8/19, recommended the exclusion from the National Privatization Program (PND) of holdings held by the National Social Security Institute (INSS) in Caixa Seguros Holding SA - CSH.
CSH is a partnership for the exploration of Caixa Econômica Federal's insurance products. The major stakeholders are the French CNP Assurances (51.75%) and Caixa Seguridade (48.21%). The INSS shareholding in CSH is residual (0.04%) and was deposited in the National Privatization Fund (FND) through Resolution 18/1996 of the former National Privatization Council (CND) - whose
39 attributions were incorporated by the Council be based on studies carried out by specialized of the PPI in 2016. consultants for the preparation of the stock value appraisal report. The request to exclude from PND the CSH shares held by the INSS was sent by Resolution takes an Caixa Seguridade, which also requested authorization for the direct sale of these important step towards shares. To do this, it is necessary to withdraw deepening studies on these shareholdings from the FND, with the consequent exclusion from the PND. Telebras to identify It is worth mentioning that this process will potential partnerships
the PPI Council of the responsibilities Resolution 127/2020, published on 8/11, of the Special Supervisory Commission took an important step towards deepening created by the Telecommunications Law studies on Telecomunicações Brasileiras (9.472/1997) - that is, the coordination S/A - Telebras with a view to identifying and monitoring of acts and procedures potential partnerships with the private resulting from the restructuring and sector. privatization model of companies listed in article 187 of that law, which include The text recommends the attribution to Telebras. 40 The company was qualified in the PPI Decree qualifies the portfolio by means of Presidential Decree 10.067/2019, issued last October, to “Fixed Quota Bet” enable studies to be carried out and the service in the PPI evaluation of partnership alternatives with the private sector. portfolio
To this end, the decree established an Decree 10467/2020, published on 8/19, Interministerial Committee responsible formalized the qualification in the PPI portfolio for monitoring the process, which and inclusion in the National Privatization Plan comprises representatives from the (PND) of the lottery service "Fixed-odds betting", Special Secretariat for the PPI, the better known as "sports betting". It is a public Ministry of Economy, the Ministry of service exclusive to the Federal Government Communications, BNDES and Telebras. that can now be transferred to private agents through a concession or authorization process. In line with Presidential Decree 10.067/2019, Resolution 127/2020 With the qualification of the service in the recommends maintaining the PPI portfolio and the PND, the next steps are Interministerial Committee until the studies for modeling the privatization project. conclusion of the studies, with a view to This initiative contributes to the creation of subsidizing and guiding the PPI Council investment opportunities, stimulates the decisions. economy, increases revenue and generates jobs. One of the privatization models that may be adopted is the concession, already adopted The resolution also points out that the in the successful LOTEX auction, held in October execution of operational procedures 2019, which was won by an Italian-American necessary for privatization may be carried consortium and which generated a grant to be out by a financial institution part of the paid to the Union worth of BRL 818 million. Federal Administration, with notable experience in the matter, to be hired by The decision of including the service in the the Ministry of Economy. PPI portfolio was deliberated during the 13th Meeting of the PPI Council, which took place on June, 10.
41 The event is available on the ABPT YouTube EVENTS AND channel: https://youtu.be/rR1Qg51Ggzo OTHERS Article published on the Istoédinheiro website highlighted some points discussed in the : http://bit.ly/istoeabpt Covid-19 and the great
reset in Latin America: Webinar “Regulation Leveraging international and Investment in experience in the recovery Infrastructure in Brazil: process (12/8) Importance of Regulatory
The PPI Special Secretary, Martha Seillier, Impact Analysis” (8/13) was one of the participants in the webinar organized by the RICS group on the future of Organized by IDP, an institute specialized in construction, infrastructure and real estate in teaching and research in Public Administration, Latin America in the wake of COVID-19. RICS Law and Economics, the webinar "Regulation provided the audio with the interviews on and Investment in Infrastructure in Brazil: YouTube: https://youtu.be/1w_1nGaswfs Importance of Regulatory Impact Analysis", was attended by the PPI Special Secretary, Martha Seillier, and the Deputy Minister of Dialogue with ABPT: The Economy, Marcelo Guaranys. The event is available at https://t.co/VDInJ8Q5YG?amp=1 role of the PPI and plans for the post-crisis recovery New sanitation legal (8/12) framework: how to On 8/12, PPI's Special Secretary, Martha leverage private Seillier, participated in the dialogue "The role of PPI - Investment Partnerships Program investment (8/18) and plans for the post-crisis recovery",
organized by the Brazilian Association of Port On 8/18, the Institute of Research and Terminals (ABPT), with the President of ABTP, Education - Insper organized the webinar Jesualdo Silva, and the President of the ABPT "New sanitation framework: how to leverage Deliberative Council, Clythio Buggenhout.
42 private investment", with the participation Seillier, and the Deputy Minister of Economy, of Senator Anastasia, PPI Special Secretary, Marcelo Guaranys, participated in the webinar Martha Seillier, the head of the Concessions “Accelerating the economic recovery”, Department and BNDES PPPs, Guilherme organized by Santander Brazil. The event is Albuquerque, and deputy Geninho Zuliani. available on the Santander YouTube channel: The event is available on Insper's YouTube https://youtu.be/uSX-RO7V3PA. (Portuguese) channel: https://youtu.be/nFeGlt80dkI (Portuguese) On the occasion, Seillier highlighted the PPI's participation in the Insper webinar was importance of advancing the reform agenda highlighted in the media: to attract investors and also assessed that the concession, partnership and privatization agenda will not only attract investments, but Valor Econômico: Government PPP will improve the efficiency of services. projects for sanitation total BRL 62 billion https://valor.globo.com/brasil/ PPI's participation in the Santander webinar noticia/2020/08/18/projetos-de-ppps-do- reverberated in the media: governo-para-saneamento-somam-r-62- bilhoes.ghtml (Portuguese) Exame: “Exame: “Reforms are fundamental for the return of investors”, says secretary. CNN Brazil: “The sanitation sector offer a https://exame.com/economia/reformas-sao- great opportunity for private investors”, says fundamentais-para-retorno-de-investidores- secretary diz-secretaria/ https://www.cnnbrasil.com.br/ business/2020/08/18/setor-de-saneamento- Seu dinheiro: “Advancing reforms is e-prato-cheio-para-investidores-privados- fundamental for the return of investors”, says diz-secretaria (Portuguese) secretary of the Investment Partnerships Program. https://www.seudinheiro.com/2020/ Webinar Accelerating the economia/avanco-de-reformas-e- fundamental-para-retorno-de-investidores- economic recovery (8/18) diz-secretaria-do-programa-de-parcerias-de- investimentos/ On 8/18, the PPI Special Secretary, Martha
43 social infrastructure (such as daycare centers and hospitals). The text is available at: http:// bit.ly/MarthaCBIC (Portuguese).
Valor's Live with Daniel Rittner (8/25)
In an interview with journalist Daniel Rittner, Interview on CNN Express Valor's special reporter in Brasília, PPI's Special Secretary, Martha Seillier, spoke about (8/20) the concession and privatization portfolio projected until 2022. The video is available on On 8/20, the PPI Special Secretary, Martha Valor Econômico's YouTube channel: https: // Seillier, participated live on the CNN Brazil youtu.be/7gYs27Zu8dk (Portuguese). program “The Express”. The Secretary explained how the privatization process works within the Executive Branch and Webinar "Challenges for mentioned some of the main projects in the PPI portfolio, such as railway Ferrogrão and Structuring Public Lighting the transmission auctions scheduled for PPP Projects" (8/26) December. Watch the full interview here: http://bit.ly/MarthaExpressoCNN On 8/26, the PPI Special Secretary, Martha (Portuguese). Seillier, was one of the participants in the webinar "Challenges for Structuring Interview for CBIC Agency Public Lighting PPP Projects", organized by Connected Smart Cities in partnership with In an interview with journalist Sandra Enel X and Portugal Ribeiro Advogados. Also Bezerra, from CBIC Agency, PPI's Special participated the National Manager of Caixa Secretary, Martha Seillier, spoke about the Econômica Federal, André Oliveira de Araújo; partnership projects in the PPI portfolio, with the Managing Associate of the Houer Group, emphasis on initiatives aimed at offering Camillo Fraga; and the Associate of Radar PPP,
44 Rodrigo Margini Figueiredo Sá. The webinar Mirian Hofmann. The event is available on is available at https://youtu.be/YCOAsUyIikQ ABDEM's YouTube channel: https://youtu.be/ (Portuguese). cM_nFZYxMNw (Portuguese). Live on the Environmental Licensing General Law Webinar “New Legal (8/25) Framework for Sanitation” (8/31) On 8/25, the Secretary of Support for Environmental Licensing and Expropriation of the PPI, Rose Mirian Hofmann, participated in the live organized by Instituto Soluções Organized by the School of the General in partnership with Regus do Brasil on Attorney of the Republic, the webinar "New the Environmental Licensing General Law Legal Framework for Sanitation", held on (Bill 3.729/2004), which is currently under 8/31, brought together the PPI Special discussion in the Brazilian Chamber of Secretary, Martha Seillier, the Deputy Deputies. Also participated the President of Instituto Soluções, Pedro Saad, and Federal Minister of Economy, Marcelo Guaranys, Deputy Kim Kataguiri. Live is available at: the Director of the National Water Agency, https://youtu.be/McFTkoryU-M (Portuguese). Oscar Cordeiro Netto, the Special Advisor to the Ministry of Regional Development (MDR), Veronica Sánchez da Cruz Rios, and Professor of Administrative Law Gustavo Why a General Law on Justino de Oliveira. The event was mediated by Legal Advisors André Augusto Amaral Environmental Licensing? (MDR) and Natália Resende Andrade (Ministry (8/26) of Infrastructure) and is available on the AGU School YouTube channel: https://youtu.be/ The Brazilian Association of Energy and o8TWtFqIAU8 (Portuguese). Environment Law - ABDEM promoted a wide debate on the Environmental Licensing General Law (Bill 3.729/2004), with participation of the Secretary of Support for Environmental Licensing and Expropriation of the PPI, Rose
45 Newsletter August 2020