Brazilian Investments Partnerships Program – PPI

This is an unofficial translation intended for an overview of the PPI and its portfolio. Please, check the PPI website or contact the Secretariat for updates and detailed information on specific projects.

August, 2021 in the world

5th largest 11 th largest economy: 6th largest population: land area: USD 1.4 trillion GDP 212.6 million people 8,515,767 km²

Opportunities for sustainable 8th largest FDI One of the main global destination in 2020: producers and exporters infrastructure development of iron ore, soy bean, with great social benefits - ESG USD 34.2 billion animal protein, coffee, Agenda (Source: Central Bank) machinery and aircraft Reforms The path for economic recovery

Pension Reform Infrastructure Reform USD 160 billion to be saved in More legal certainty, the next 10 years, limiting transparency and privileges predictability for domestic and foreign investors Administrative Reform Tax Reform Streamlining civil service to Simplifying the tax system bring more efficiency to boost economy COVID-19 IMPACTS ON PROJECTS

Concessions under preparation: • Public audiences in virtual format; • Postponement of consultations with indigenous peoples in environmental permit processes; • Review of demand studies in sectors affected by the pandemic. • Review of investment cycles ...

Concessions in force: • Contractual rebalances recognized in the contracts that imputed the risk to the procuring authority (act of God and force majeure ); • Legal and regulatory measures to avoid default by users and postponement of investments (cash relief); • Deferral of taxes • Emergency Program for the Maintenance of Employment and Income • Stand-still financing ... Pro-Investment Bills: The path for economic recovery • Law 14026, as of July 15 th , 2020 – New Legal Framework for Sanitation • Law 14134, as of April 8, 2021 – New Gas Market • Law 14.182,as of July 12, 2021 – Privatization of Eletrobrás • Bill 4199/2020 - Cabotage ...... CD SF (under debate) • Bill 414/2021 - Modernization of the Power Sector...... SF CD (under debate) • Bill 7063/2017 - Concessions and PPPs ...... SF CD (under debate) • Bill 5387/2019 - Brazilian foreign exchange market, Brazilian capital abroad, foreign ....CD SF capital in the country and the provision of information to the (under debate) • Bill 3729/2004 - Environmental Licensing ...... CD SF (under debate) • Bill 2646/2020 – Infrastructure debentures ...... CD SF (under debate) • Bill 591/2021 – Correios [The National Post]...... CD SF (under debate) CD- Chamber of Deputies, Brazilian lower • Bill 3178/2019 – Oil&Gas Production-Sharing Agreement (PSA) SF (under debate) house • Bill 261/2018 - Railways Authorization ...... SF (under debate) SF – Federal Senate PPI Council . President and Ministers . Economy Presidency of the Republic . Executive Office . Infrastructure . Mines and Energy Ministry of Economy . Environment . Regional Development . Secretariat of Government PPI Council . Federal Banks . BNDES . Caixa Econômica Federal Special Secretariat of PPI . Banco do Brasil

. The PPI Council President is the Minister of Economy. The Special Secretary serves as the Executive Secretary of the PPI Council. PPI works as a hub for investments

National and international investors Sectorial Sectorial Ministries Unions Adds on efficiency and value to the process Financial Regulatory Agents Agencies (banks, investment . Governance, coordination, funds, etc.) monitoring and oversight

. Transparency, dialogue, Legislative Multilateral credibility and predictability Branch PPI Organizations . Well-designed projects

Control Concessionaries . Technical and legal framework Entities enhancement

Licensing Embassies Entities Subnational Governments PPI in Figures ACCOMPLISHED AUCTIONS/BIDS AND PROJECTS

Accomplished Qualified Concession auctions/bids Investments projects fees/Bonuses and projects USD 159.5 billion USD 34.1 billion 429 243 (BRL 797.3 billion ) (BRL 170.5 billion )

1 USD = BRL 5 Main deliveries – PPI 2019/2020 2019-2020: 65 auctions/projects concluded

Projected Concession investments fees/Bonuses USD 97.7 bi USD 19.6 bi

1 USD = BRL 5 Mining 36 Auctions carried out in 2019 1 auction Palmeirópolis (Auction 10/21) Oil and Gas Ports Investments: USD 58.6 million 4 auctions 13 auctions Concession Fee: USD 3.44 million 11 Terminals of liquid bulk Regular Offer (Auction 9/10) • 3 in Cabedelo/PB (Auction 3/22) Lotex • 1 in Vitória/ES (Auction 3/22) 1 auction (10/22) Bonus: USD 5.05 million • 5 in Belém/PA (Auction 4/5) Round 16 under the concession agreement (Auction 10/10) • 1 in Vila do Conde/PA (Auction 4/5) Concession Fee: USD 187.9 million • 1 in Santos/SP (Auction 8/13) Highway Bonus: USD 2.04 billion 1 Terminal of paper pulp in Paranaguá/PR 1 auction (Auction 8/13) Petrobras Transfer of Rights Surplus (Auction 11/6) BR-364/365/GO/MG (Auction 9/10) 1 Terminal of Solid Bulk in Santos/SP (Auction Investments: USD 473.5 million 8/13) Bonus: USD 16.07 billion Concession fee: lower toll fee (33% discount) Round 6 Production Sharing Agreement - PSA (Auction 11/7) Investments: USD 210 million Concession Fee: USD 163.2 million 12 assets Bonus: USD 1.16 billion 12 airports in 3 clusters (Auction 3/15): Energy . Northeast: Total Bonus: USD 19.3 billion 3 auctions . Recife/PE; João Pessoa ,Campina Grande/PB; Maceió/AL; Total Investments: USD 96.38 billion Generation Aracaju/SE; and Juazeiro do Norte/CE • New Energy A-4 (Auction 6/28) . Midwest: Railway • New Energy A-6 (Auction 10/18) . All in MT: Várzea Grande (Cuiabá), Alta Floresta, Barra do Garças, Rondonópolis and Sinop. Transmission 1 auction . Southeast: • 12 lots of transmission lines North-South Railway (FNS) (Auction 3/18) . Vitória/ES and Macaé/ RJ Investments: USD 809 million Investments: USD 625.2 million Investments: USD 3.97 billion 11 Concession Fee: USD 625.2 million Auction fee: lower power tariff Concession fee: USD 546.3 million 29 auctions held in 2020 Support to subnational level entities (11) Railway (4) Mining (1) Public street lighting (Municipalities) Early extension of Rumo Malha Paulista ______May 27 1st round – ANM available areas November 25 9 auctions Early extension of Ferrovias da Vale (EFVM and EFC) _Dec 18 FICO (cross investment)______Dec 18 • Aracaju/SE (FEP): _____August 14 Pilot round: 168 areas for research. • Feira de Santana/BA (FEP): August 14 Investments: USD 5.11 billion • Franco da Rocha/SP (FEP): August 14 Concession fee: USD 960 million • Belém/PA (FEP): ___November 06 Parks (1) • Sapucaia do Sul/RS (FEP): ______November 06 Highway (1) • Teresina/PI (BNDES): __ February 13 Aparados da Serra (RS) and Serra Geral (SC) Dec 15 • Vila Velha/ES (BNDES): _August 03 BR-101/ SC February 21 • Macapá/AP (BNDES): _October 07 Investments: USD 52,44 million • Petrolina/PE (BNDES): ______November 18 Investments: USD 680 million Discount: -62% Investments: USD 187 million Energy (1) Average discount: -56,2% Ports (6) 11 blocks of transmission installation Dec 17 Wastewater (Municipality) 2 Port Terminals in Santos/SP (STS 14 and 14A)____Ago 28 1 auction 2 Port Terminals in Aratu/BA (ATU 12 and 18)_____Dec 18 1 Port Terminal in Paranaguá/P (PAR12)______Dec 18 Investment: USD 1,47 billion • Cariacica+Viana /ES (BNDES): October 20 1 Port Terminal in Maceió/AL (MAC 10)______Dec 18 Discount: -55,24% Investments: USD 163 million Investments: USD 116 million Concession fee: USD 118 million Liquidation of SOE (3) Discount: -38% Oil and Gas (1) CASEMG – Warehouses and Silos State Water and wastewater (BNDES) Company. Liquidation concluded at October 29. 1 auction 2nd cycle of open acreage in areas for exploitation and CODOMAR – Maranhão Docks State Company. • Metropolitan region of Maceió/AL: October 07 production of oil and gas December 04 Liquidation concluded at September 09. Investments: USD 31 million CEITEC – National Centre of Advanced Electronic Investments: USD 514 million Concession fee: USD 11 million Technology S.A. Liquidation began on December 15. Concession fee: USD 400 million 2021: 46 assets auctioned off Parks and Forests (2) Canela/RS______12/jul Water and wastewater São Francisco de Paula/RS ___29/07 Railroad (1) Fishery Terminal (1) services(1) Investiments: US$ 33mi CEDAE – State of Rio de Janeiro_apr/30 Concession fee: US$ 148.2 th East-West Integration Railroad Cabedelo/PB______jan/28 (FIOL)______apr/08 Investments: USD 5.52 billion Expected Investments: USD 1 billion Investments: USD 46 million Concession fee: USD 4.54 billion Concession fee: USD 6.5 million Concession fee: USD 37,209 Investments Ports - Terminals (8) Highway (2) USD 11.12 bi Energy (6) 4 in Itaqui/MA (IQI 03,11, 12 , 13 )__Apr,09 Supply of isolated systems BR-153/080/414/GO/TO__08/apr 1 in Pelotas/RS (PEL01) ______Apr,09 ______April 30 BR-163/230/MT/PA______08/jul 1 in Santana/AC (MCP02 )______Aug,13 1 in Mucuripe/CE (MUC01)_____Aug,13 Existing energy A-4 and A-5 Investments: USD 1.94 billion 1 in Salvador/BA (SSD09)______Aug,13 ______June 25 Outorga: USD 64 million Concession New energy A-3 and A-4 Investments: USD 122.4 million ______July 8 Concession fee: USD 43.26 million fee/bonus Mining (3) 1º Auction of electricity transmission 2021___jun/30 2nd & 3rd Round of ANM Airports (22) USD 5.4 bi AvailableAreas_mar/29 & jun/30 Phosphate-(Miriri/PB/PE)_jun/10 6ª Round of Airports Concession (south, Investments: USD 1.14 billion north and central blocks)______apr/07 Discount: -19.4%, -52.47% e -45.79% Investments: USD 38 million Investments: USD 1.22 billion -48.12; -30.83%; -28.82% Concession fee: USD 47.6 million Concession fee: USD 660 million 1 USD = BRL 5 Current PPI Portfolio Current PPI Project Portfolio Defense and Security Communications and Public Fishery National Parks and Tourism – 8 (PPP’s) - 3 Technology – 4 Terminals – 7 Forests – 23 8 Concessions of national 1 Air force Communications 7 Fishery Terminals heritage historical sites (CE, MG, 3 Privatization (Telebras, 1 Police Communications ( Belém/PA, Manaus/AM, Aracaju/AL, PB, PE, SP and RJ) 1 Vehicle impoundment – National Post, and EBC) Natal/RN, Santos/SP, Cananeia/SP 14 concessions of parks and Vitória/ES) Federal Highway Police 5G 9 concessions of forests Ports – 35 Highways – 20 Railways– 11 5 Concessions (3 Privatizations) 3 concession renewals Energy – 12 28 Port Terminals 12 Concessions Oil and Gas – 5 1 Waterwa y (Permit) 4 new concessions 1 Transmission Lines Auctions 2 Privatizations (Eletrobras and 1 Port access channel 8 Licensing 3 investments in strategic Nuclep) 17 th Round under the concession railway networks Transmission Line Manaus-Boa agreement 1 privatization Vista Shale Gas Fracking (Env. Licensing) 7 Hydroelectric plants Economy – 6 2 Blocks of Transfer o Rights Regional Development – 5 (Environmental Permit) 3rd Cycle of Open Acreage 4 Privatizations (ABGF, 1 Generation (New Energy A-5) EMGEA, Serpro and Dataprev) 2 privatizations (CBTU and 2 Lottery (Fixed odds and Trensurb) Mining – 12 Lotex) subway Line 6 CPRM Mining Rights 2 Airports – 26 6 ANM Available Areas 180 PISF 16 airports for concession Projects Supply – 2 Irecê basin irrigation) 8 regional airports 1 privatization 2 rebiddings (Ceasaminas) Health – 1 1 concession H (CONAB warehouses and facilities) Hospital Fêmina/Porto Alegre Public Policies

Health TRIIP “Sea Road” services cabotage Opening market to competitiveness, Alternatives for partnerships for Tourism decreasing ticket prices and improving concessions aiming at building, services Boosting fleet and the naval modernizing, operating, industry, increasing maintaining and improving the Policy for attracting private + 13 million and 416 cities don’t have investments for the tourism access to road transportation competitiveness and fostering management of the Basic Health ports (permit for temporary Units network on municipal duty industry. contracts) Program Revive Brasil

Bidsim Reducing imports of essential Alternative solutions to enable more minerals; searching for PPP prisons efficient public services, quality and Strategic competitive advantages for + effective social reinsertion of Improving methodology for minerals generating trade surplus and correctional prisoners through work and defining technical / exploiting high technology facilities qualification economic standards for oil minerals auctions

Universalizing PPP Supporting regulatory improvement sanitation + daycares and project designing for supplying solid waste Projects in which private partners are in PPP public street lighting projects, including charge of accomplishing works, equipping, lighting developing, modernizing, expanding, Coordinating regional level projects design maintaining and operating daycare units, energy efficiency, operating and and regional bankable projects that enable with service quality indicators and maintaining power grid adequate public services to citizens standards to meet North II Block USD 236 million in Airports Macapá 7th round investments São Gabriel da Cachoeira Barcelos Santarém Belém Altamira Carauari Coari Maués Marabá Natal Carajás Eirunepé Lábrea

SP-MS Block USD 480 million in 7th round investments Campo RJ-MG Block USD 338 million in 16 Airports (3 blocks) : 7th round Corumbá Grande Uberlândia and investments Campinas 7th round Investments USD 1 billion Londrina Ponta Porã Santos Dumont and Jacarepaguá and 2 Airports for Rebidding: Campo de Marte Natal/RN and Campinas/SP 8 Regional Airports São Gabriel da Cachoeira, Barcelos, Parintins, Maués, Coari, Lábrea, Carauari and Eirunepé 1 USD = BRL 5 Railroads

Ferrogrão Sinop/MT a Miritituba/PA 933 km New Inv.: USD 4.3 bi concession FIOL 2 and FIOL 3 FCA Caetité/BA – Barreiras/BA; 485 km 7,215 km Barreiras/BA – Figueirópolis/TO; 505 km Inv.: USD 2.7 bi Inv.: USD 1.9 bi Malha Oeste 1,973 km Inv.: to be defined MRS Contracts 1,686 km Renewal Railroad portfolio Inv.: USD 3.3 bi USD 16.18 billion • New: USD 6.2 billion Investiments • Renewal: USD 8.2 billion Rumo Malha Sul • Privatization: USD 1.7 billion 7,223 km Inv.: USD 2.1 bi • Rebidding: to be defined 21,390 Km: • New: 1,923 km Total Lenght • Renewal: 16,124 km Ferroeste • Privatization: 1,370 km 1.370 km Inv.: USD 1.7 bi • Rebidding: 1,973 km 1 USD = BRL 5 RAILWAYS - FERROGRÃO

Project • Section: from Sinop (state of Mato Grosso) to Miritituba (state of Pará) - 933 km • Concession period: 69 years, extension is prohibited • Auction criterion: highest concession fee amount (USD 3.6 million minimum) • Gauge: 1.60 m • Train type: 3 locomotives and 160 wagons

Financial aspects • CAPEX: USD 1.68 bi (implementation) + USD 2.62 bi (maintenance capex) • OPEX: USD 12.74 bi • Demand: 20.7 mi net tons (2030); 48.6 mi net tons (2060) • Soybean and corn tariff: USD 16.28 / net tons (Sinop-Miritituba) • Total Revenue: USD 35.36 billion (start of operation): • Year 10 revenue USD 400 million • WACC: 11.04% per year (in real terms and net of tax) • Ebitda margin after ramp up: 59% (year 2037)

Social aspects • The railroad route does not overlap with Indigenous Lands or Quilombola communities • The nearest indigenous lands are located at a distance of 4 km (Praia do Mangue) and 7 km (Praia do Índio), in Itaituba • The railway's reference layout does not cross any Conservation Unit • Reduction of USD 3.84 billion in freight costs compared to the highway mode 1 USD = BRL 5 19 BR-135/316/MA 438 km Junction BR-135 (via Pedrinhas) – Junction Itaqui/Bacanga; Access to Tirirical – Junction BR-316(B) Highways (Peritoró); Junction BR-135(B)/MA-020 (Peritoró) – Junction BR-226(B)/343(A) (Div. MA/PI) (Teresina/Timon)

BR-158/MT/PA 1,135 km Ribeirão Cascalheira/MT and Marabá/PA

BR-116/493/495/RJ/MG (antiga CRT) 727 km Section of BR-116/RJ Section between Além Paraíba/RJ and BR-040/MG

Concession of 7,213 km of highways BR-381/MG and BR-262/MG/ES - 670 km Section of BR-381/MG between Belo Rebidding Horizonte/MG and Gov. Valadares/MG BR-163/MS Section of BR-262/MG/ S between João 845 km Monlevade/MG and Viana/ES Section between borders MT/MS and MS/PR BR-040/495/MG/RJ (Concer) 443 km Integrated Highways Section between /MG and Rio of Paraná state – de Janeiro/RJ Highways portfolio 3,328 km Investments USD 27.4 bi BR-470/282/153/SC Rebidding BR-116/465/101 /SP/RJ (Dutra) 502 km BR-040/DF/GO/MG – 625 km Section between Rio de Janeiro/RJ and São Section between 709 km Total Length 16,638.2 km Paulo/SP Navegantes/SC and RS/SC Section between Brasília/DF and Juiz de Fora/MG 1 USD = BRL 5 Highways – next auctions (2021/2022) Highway Length Capex (USD) Auction BR-381/MG and BR-262/MG/ES • BR-381/MG between Belo Horizonte/MG and Gov. Valadares/MG 670.6 km 1.54 bi 2021/Q4 • BR-262/MG/ ES between João Monlevade/MG and Viana/ES

BR-116/465/101 /SP/RJ (Dutra) 625.8 km 2.89 bi 2021/Q4 • Rio de Janeiro/RJ and São Paulo/SP

BR-116/493/495/RJ/MG (antiga CRT) 727 km 1.72 bi 2022/Q1

INTEGRATED HIGHWAYS OF PARANÁ STATE 3,328 km 8.42 bi 2022/Q1 • BR- 153/158/163/272/277/369/373/376/476/PR and relevant state highways STUDIES FOR THE CONCESSION OF SECTIONS OF THE 7,213 KM OF 6,600 km 10.72 bi 2022/Q3 FEDERAL HIGHWAYS

BR- 040/495/MG/RJ (CONCER) 443 km 620 mi 2022/Q4 • Rio de Janeiro to Belo Horizonte

BR-040/DF/GO/MG (rebidding - 679,7 km ) 679.7 km 1.48 bi 2022/Q4

13,074,1 km USD 27.4 bi

1 USD = BRL 5 Vila do Conde/PA (2) Liquid and solid bulk Fortaleza/CE (2) Ports Passengers and liquid bulk Areia Branca/RN (1) Sea salt Recife/PE (1) Solid bulk

Maceió/AL (4) General cargo, grain and liquid bulk Port of Salvador/BA - CODEBA

Paranaguá/PR (5) General cargo, grain and liquid bulk Port of Vitória/ES - CODESA Ongoing Ports portfolio Paranaguá/PR (1) Itaguaí/RJ (1) Investments USD 4.14 billion Port access channel Solid mineral bulk Port leasings 21 Port of Itajaí/SC Port of São Sebastião/SP Privatizations 3 Santos/SP (4) Solid and liquid/fuel bulk and containerized cargo Concessions 2 Imbituba/SC (1) Liquid bulk Port of Santos/SP – CODESP Acess channel 1 1 USD = BRL 5 Ports - Privatizations

Port of Santos/SP (SPA) Port of Itajaí/SC Status : Feasibility assessments Status : Feasibility assessments Public Hearing : 2021/Q3 Bidding Notice: : 2022/Q3 Bidding Notice: 2022/Q2 Auction : 2022/Q4 Auction : 2022/Q3 Investments : under assessment Investments : USD 1.56 billion

Port of Vitória/ES (CODESA) Port of São Sebastião/SP Status : Public Hearing Status : Feasibility assessments Bidding Notice: 2021/Q4 Bidding Notice: : 2021/Q4 Auction : 2022/Q1 Auction : 2022/Q1 Investments : USD 250 million Investments : USD 114.8 million

Ports of Salvador, Aratu- Candeias and Ilhéus (CODEBA) Status : Feasibility assessments Bidding Notice: 2022/Q4 Auction : 2023/Q1 Investments : under assessment 1 USD = BRL 5 Fishery Terminal in Fishery Terminals Manaus (AM)

A Public Fishery Terminal (PFT) is the structure Fishery Terminal in necessary for fish handling and storage activities, Belém (PA) trading post, fish processing and support for vessel navigation. Fishery Terminal in Making PFTs operational is crucial for the provision of Natal (RN) an favorable phytosanitary environment needed to further developing the fish industry. Fishery Terminal in Aracaju (SE) The PFT area can include facilities such as anchorages, docks, wharves, berths and piers, cold storage warehouses, Fishery Terminal in and infrastructure for waterway access Vitória (ES) and protection. Fishery Terminals in Santos and Cananeia (SP) Fishery Terminals

Qualification for Public TCU* Bidding Assessments Auction Contract PPI Hearing Approval Notice

Completed Completed Completed Completed Completed Completed Completed Cabedelo (PB) (2/18/2020) (5/11/2020) (6/11/2020) (11/18/2020) (12/2/2020) 1/28/2021 Apr/ 29

Belém (PA) Completed Manaus (AM) (2/18/2020)

Natal (RN) Completed Completed July/14 Q3/2021 Q4/2021 Q1/2022 Aracaju (SE) (April/27 ) (June 13) (filed) Completed Vitória (ES) (6/10/2020) Santos (SP) Cananéia (SP)

TCU: Portuguese acronym for the Brazilian Federal Court of Accounts Mining Limestone - Aveiro/PA Kaolinite - Rio Capim/PA

Gypsum – Rio Cupari/PA

Diamond – Santo Inácio/BA

Copper - Bom Jardim/GO

Mining legal rights

Investments USD 690 million

*In case projects reach mining phase Coal - Candiota/RS

1 USD = BRL 5 MINING National Mining Agency (ANM) Available Areas

• Procedure for selecting investors interested in proceeding with mining projects returned to the National Mining Agency portfolio. • Areas are subject to a public offer; those with two or + interested investors are submitted to an e-auction and awarded to the bidder offering the highest fee. • There are more than 40,000 areas for new investments. • In the first 3 rounds, more than 11,000 areas have been offered, representing a total area of about 10.6 million hectares, larger than the State of Ceará.

1st Round (Sep/20): 499 areas for research (+ than 30% of them were auctioned off). Round Auction notice 2nd Round (Dec/20): 6,879 areas for research/mining offered, + than 60% of them were auctioned off, Federal Government 4 July/2021 shoudl collect USD 33 million. 5 Aug/2021 3rd Round (Mar/21): 2,663 areas offered (auction concluded, 6 Sep/2021 ratification in July/2021). 7 January/2022 4th Round (Jun/21): 1,658 research areas offered, clarification 8 March/2022 Areas offered in the first 4 rounds of available areas. stage until July 6, challenge requests up to July 20 and the 9 May/2022 Source: National Mining Agency Public Offer stage opened until August 17. 1 USD = BRL 5 Oil and Gas 17 th Round Transfer of rights rd 3 Cycle of Open Acreage Potiguar Basin

Data Capacity 92 blocks ( offshore ) Potiguar, Campos, Santos Basins (4) Round 17 and Pelotas Auction (scheduled) October 7, 2021

Blocks (2) Sépia and Atapu Campos Basin Expected Investments Transfer of USD 40.8 billion Rights (CAPEX + OPEX) Transfer of rights Auction December 17, 2021 Santos Basin 1,068 blocks 3rd Cycle of Blocks Pelotas Basin Open Acreage Auction (planned schedule) Q4/2021 1 USD = BRL 5 Electric Power

Energy portfolio (USD) License + Implementation of the Transmission 360 mi Line Manaus – Boa Vista

New Energy Generation (A-5) Tbc Transmission auction 2021 Transmission Line Manaus/AM - 2nd auction of transmission installation 2021 400 mi Boa Vista/RR Total 760 mi Energy Generation 1 USD = BRL 5 Privatization/Capitalization – Eletrobras - Brazilian Power SOE . Brownfield project . . Power generation capacity: 50.648,2 MW ( 29% of 174.412,68 MW installed capacity in Brazil). . 61,2% Eletrobras System´s entire property, . 23,1% SPEs and . 15,7% shared property, including half of Itaipu Binacional capacity (7.000 MW) . Generators (total): 125 plants (58 Corporate and 67 SPEs) . Hydropower : 46,259 MW . Nuclear Power: 1,990 MW o Features: holding comprising Eletrobras CGTEE; Eletrobras Chesf; . Thermal power (other technologies): 1,870 MW Eletrobras Eletronorte; Eletrobras Eletronuclear; Eletrobras Furnas; . Wind and Solar: 1,025 and direct and indirect shareholding in 136 Special Purpose . Transmission Lines: 76.128,54 Km, being 70.091,89 km with tension > 230 KV Vehicles (SPVs). (43,54% of total Transmission Lines in Brazil ) o Procuring authority: Ministry of Mines and Energy . Direct and indirect shareholding of the Brazilian Government o Expected outcomes: . CS – 72.22% o Increased investment in the Brazilian energy sector, generating . PS – 6.52% jobs and income; . Total – 61.69% o An attractive environment for investors, increasing . Privatization model: increase in share capital through public subscription of competitiveness in the sector and reducing prices for consumers; common shares, without the Federal Government's participating in this o Reduction of price volatility in the electricity tariff caused by subscription hydrological risk; . Status: Provisional Measure 1031/21, which establishes the guidelines for o Recovery of basins and investments in generation and local privatization by capitalization and permits the beginning of studies by BNDES energy networks, benefiting the local population and energy (Brazilian Development Bank), was approved by Congress on June 21. Bill consumers now awaits presidential sanction. The process of capitalization of Eletrobras will be carried out with the issuance of new shares by the company in a sufficient amount for the Union to leave its control. Therefore, there is a privatization process by means of a capital market operation.

Next steps on the With the sanction of Law 14,182/2021, the government is capitalization of authorised to proceed with the capitalisation process. Eletrobrás The next stage is the conclusion of the Eletrobras studies with the definition of the price and the quantity of shares to be issued. At this stage, the current situation of the company, its assets, liabilities, and its capacity to generate value and growth prospects over the years are evaluated.

1. COMPLETION OF STUDIES BY BNDES 2. APPROVAL BY THE CPPI 3. APPROVAL BY THE TCU 4 MEETING AND ISSUE OF SHARES

The Board of the Investment After approval by the TCU and the The studies are being conducted Partnerships Program (CPPI) is CPPI, the next step is for Eletrobras by the National Bank for Economic responsible for approving the BNDES' The studies carried out by BNDES to hold a shareholders' meeting to and Social Development (BNDES), studies and defining the final model for will be sent to the Federal Audit approve the issue of new shares, which is responsible for the capitalization operation. At this Court (TCU), which must approve at which the Federal Government implementing and monitoring the stage, the capitalization guidelines will them in order to continue the will not vote. The issuance process entire Eletrobras privatisation be defined, such as: corporate process. will be carried out by Eletrobras process. restructuring, minimum sale price and with the assistance of the BNDES. conditions for the process.

The process is expected to be concluded in the first quarter of 2022. Auction on 5G technology

Most important auction on radio frequency spectrum ever held • Procuring authority: ANATEL in Brazil. • Preliminary investment estimates + concession fees: USD 7 billion Alta700 cobertura MHz Baixa2,3 cobertura GHz Baixa3,5 cobertura GHz Baixíssima26 cobertura GHz and baixa20 MHz and alta90 Capacity MHz and alta400 Capacity’ MHz and altíssima3200 MHz Capacity • Expected date for the auction: Q4/2021 Capacity • Next steps: Technical Pricing Assessment of Tudo que existe disponível Wide coverage Low coverage and Low coverage4x and Very low coverage and the object and commitments of the bidding and low capacity high capacity high capacity parathe serviços highest móveis capacity notice in progress 4x Everything available for • Contract Term: 20 years (with the exception of mobile services the 700 MHz band with a term until 12/08/2029 and an extension under the terms in force at the Auction criterion is not based on bonus/concession fee – the time)

auction notice establishes national and regional compromises Auction Notice Signing of as to investments in 5G coverage and backhaul. published authorization terms

Feb/20 Q4/21 Until December, 31, 2029 – all municipalities in Brazil must have 5G coverage Q3/21 2022 2025 Ordinance No. 1,924 / SEI-MCOM, January 29, 2021: Project filed with Auction Implementation of PAIS - Integrated and Sustainable Amazon Program Federal Audit Court session Main Investments Implementation of the Federal Private Network 1 USD = BRL 5 Preliminary estimates: Privatizations USD 18.36 billion

1 USD = BRL 5 FEDERAL PRIVATIZATIONS – PERSPECTIVE 2T212Q21 3T213Q21 4T214Q21 1T221Q22 2T222Q22 2S222S22

AUCTIONS - PRIVATIZATIONS

LIQUIDATIONS

SALE OF SHARES / DELIVERY OF QUOTAS TO THE FEDERAL GOVERNMENT The National Post Service

Biggest employer 11,177 post offices USD 3.6 billion company in Brazil Located in almost every city in 2018 Net Revenue More than 93,000 employees Brazil Status : assessments in progress aiming at evaluating alternatives for partnering with the private sector - Bill 591/2021 aims to permit delegation of services to private partners. Bill aprooved in the Chamber of Deputies. - Stage 1 of studies has been completed. Stage 2, about modelling and alternatives, is in progress and should be concluded in August/2021 Project’s Stage 1 has been concluded in April. Stage 2 is ongoing. Sep 2020 - Apr 2021 May – Sep 2021 Oct – Dec 2021 Q1/ 2022 STAGE 1 STAGE 3 STAGE 2 DISPOSAL AND Preparation DIAGNOSIS AND EVALUATION OF IMPLEMENTATION OF G1 G2 DETAILED PROPOSALS G3 G4 CONCESSION ALTERNATIVES OF PARTNERSHIPS PARTNERSHIPS

• Draft agreements for • Diagnosis of the Brazilian and international entering into partnerships . Auction session postal sector Detailed proposal for modeling private • and offers partnerships for the Brazilian postal sector Offers to Service C • Legal and regulatory diagnosis . • Roadshows and meetings Postar Consortia • Detailed partnership modeling proposal for employees • Accenture • Company Reviews the company • Public audiences and • MMSO . Final report on consultations • Structuring of alternative partnerships for • Reports Updates the process the sector • Disclosure of rules Service B Carta Brasil consortia: DUE DILIGENCE Valuation 2 • KPMG • Manesco Service A . ValuationValuation 2 2 To be defined

Service D Financial Advice and Attraction of Investors We’re here TBD KEY STEPS Presentation of Bill [Feb 24) Kick-off Stage 2 [27/mai] 22ª CI – Approval of stage 1 [Mar 10) Sanction of Bill [Aug/21] Operation concluded (Jan/22) Resolution 168/21 CPPI [Mar 16) Approval CPPI [Sep/21] Court of Accounts Beginning of approval [Dec/21] studies– Service C Decree 10,674/21 - PND [Apr 13) Publication of auction rules [August 27/2020] OS Service C - Stage 2 (May 14) Opening of Data Room [Oct/21] [Dec/21] Source: BNDES Privatization – Trensurb (Urban Trains Company of Porto Alegre S.A) . Brownfield project . Extension : 43,8 Km of operating lines . CAPEX projected investments: USD 70 million for requalification . OPEX projected investments: to be defined . Contract period: 25 years. . Auction criteria: to be defined . IRR: to be defined o Object of the concession: public passenger transport services . Lease / concession / consideration value/ etc: to be defined in the State of Rio Grande do Sul . Public Guarantees: to be defined o Model: Privatization . Capacity: 228,000 pax / day o Structurer: BNDES . Status: under assessment o Procuring authority: State of Rio Grande do Sul . Bidding auction expected for Q3/2021 o Sector Ministry: Ministry of Regional Development . Auction session expected for Q4/2021 o Regulator: Metroplan

1 USD = BRL 5 Privatization – CBTU (Brazilian Company of Urban Trains)

. Brownfield project . Extension: 220,8 Km of operating lines . CAPEX projected investments: USD 400 million for requalification . OPEX projected investments: to be defined . Contract period: 25 years. . Auction criteria: to be defined . IRR: to be defined o Object of the concession: public passenger transport services . Lease / concession / consideration value: to be defined in the States of Alagoas, Minas Gerais, Paraíba, Pernambuco . Public Guarantees: to be defined and Rio Grande do Norte . Capacity: 567,000 passengers / day o Model: Privatization . Status: under assessment o Structurer: BNDES . Bidding auction expected for Q3/2021 o Procuring authority: above-mentioned States . Auction session expected for Q4/2021 o Sector Ministry: Ministry of Regional Development o Regulator: respective States’ Regulatory Agencies

1 USD = BRL 5 Concession of Subway Line 2 - Metropolitan Region of Belo Horizonte . Greenfield project . Extension : 10,5 Km of operating lines . CAPEX projected investments: USD 320 million . OPEX projected investments : to be defined . Contract period: 25 years. . Auction criteria: to be defined . IRR: to be defined o Object of the concession: public passenger transport services . Lease / concession / consideration value: to be defined o Model: Concession . Public Guarantees: to be defined o Structurer: BNDES . Capacity: 50,000 passengers / day o Procuring authority: State of Minas Gerais . Status: under assessment o Sector Ministry: Ministry of Regional Development . Bidding notice expected for: Q3/2021 o Regulator: State of Minas Gerais . Auction session: Q4/2021

1 USD = BRL 5 National Parks (13) Serra da Capivara National Park (PI) Lençóis Ubajara National Maranhenses Park (CE) National Park (MA)

Jericoacoara National Park (CE) Jaú National Park (AM)

Anavilhanas National Park (AM) Brasília National Park (DF)

Serra da Bocaina National Park (RJ) Chapada dos Guimarães National Park (MT) Serra dos Órgãos National Park (RJ)

São Joaquim National Park (SC)

Serra da Bodoquena National Park (MS) Iguazu Falls - Foz do Iguaçu National Park (PR) Concession of Forests for recreational activities

Brasília (DF) Hiring Public Federal Court Bidding Project Assessments Auction assessments Hearing of Accounts Notice

Aparados da Serra and Serra Geral

Canela

São Francisco de Paula July, 26

São Joaquim

Brasília

Foz do Iguaçu

Jericoacoara Accomplished

In progress Lençóis Maranhenses Forest concessions Brazil has the largest tropical forest and the The concession projects of National Forests 2nd largest forest area of Iquiri, Humaitá, Balata-Tufari, Jatuarana, Gleba Castanho in the world Pau-Rosa and Gleba Castanho, all in the state Pau-Rosa of Amazonas; Três Barras and Chapecó in the states of Santa Catarina; and Irati in the state Jatuarana of Paraná have been qualified by the PPI Balata-Tufari Council as national priorities. Iquiri Humaitá Payments to the Federal Government by the concessionaires are destined to the states and municipalities where the forests are located , to the National Fund for Forestry Development and to ICMBio - Chico Mendes Institute for Biodiversity Conservation. Irati Computerized system for managing concession contracts. Procedural manuals for sustainable management. Três Barras Greater preservation of forests, less deforestation, less fires, greater control and a better fight against Chape illegal activities. có The Stages of a Forest Concession National Heritage Sites Fort Nossa Senhora dos Remédios The Forts of Nossa Senhora dos Remédios and and Aldeia dos Sentenciados Orange, located in the State of Pernambuco; the Palace Carvalho Mota Fernando de Noronha (PE) Fortress of Santa Catarina (PB) and the Farm Pau Fortaleza (CE) D`Alho (SP) were qualified in PPI portfolio for concession of their usage/management, under the policy for attracting private investments in the tourism sector.

These projects will be pilots of Fortress of Santa Catarina the so-called Program “Revive Brasil”, João Pessoa (PB) part of a Brazil-Portugal cooperation protocol signed by the Ministry of Tourism, and whose objective is the concession of vacant historical/cultural heritage sites. Fort Orange Ilha de Itamaracá (PE) Farm Pau D’Alho Campinas (SP) Old train station in Diamantina (MG) PISF – Project for integrating São Francisco river into the water basins in the north part of the Northeast region of Brazil (NE)

. Features: Assessments for modeling a partnership for the operation and maintenance of the raw water supply infrastructure, aiming to ensure water security for the beneficiary states. Its main use is human supply and animal drinking, with other uses being admitted. It benefits 12 million people in four States (CE, RN, PB and PE) and 390 cities. The North Axe has 96% of accomplishment and the East Axe 98%. . Object of the assessments: Operation and maintenance of 477 km of channels; 9 pumping stations; 27 reservoirs in the axes; 4 tunnels; 14 aqueducts; 9 230 kV substations; Installed power 100.5 MW; annual consumption of 709 GWh; Estimated energy consumption 58,300 MWh/month. Pumping operational capacity of 38 m3/s and average annual flow granted: 26.4 m3/s.

. Model: Common or sponsored concession . Brownfield project (under assessment) . Executed CAPEX Investments : USD 2.4 billion . Structurer: BNDES with MDR, ANA, SPPI and . Projected CAPEX investment : USD 360 million SDI/Ministry of Economy. . Projected OPEX Investments: USD 100 million/year . Procuring authority: Federal Government . Contract period: 35 years . Sector Ministry: Ministry of Regional . Auction criterion: to be defined Development - MDR . Public Guarantees: Infrastructure Guarantee Fund - FGIE . Regulator: ANA and FPE States . Regulation: Mechanism defined in the . Status: stage 1 assessments completed in Feb/2021 concession contract . Bidding: Q4/2021

1 USD = BRL 5 Irecê basin irrigation perimeter (BA) . Features: located in the municipalities of Xique-Xique and Itaguaçu da Bahia, 500 km away from capital Salvador, the Baixio de Irecê perimeter has a total area of 104,000 hectares, out of which 48,000 hectares are suitable for irrigated agriculture. The project was subdivided into 9 stages; the first two have been tendered and are in the occupation phase. About USD 240 million have been invested in the acquisition and regularization of land property and execution of 42 km of the main channel, main pumping station, pipelines, pressurization station and energy infrastructure. . Object of the study: Concession of Real Right of Use (aka CDRU) of a total area of 51,000 hectares, out of which 31,500 are irrigable, corresponding to stages 3 to 9 of the project, aiming at the implantation of the irrigation infrastructure, the operation and maintenance of this infrastructure and the occupation of the area with agricultural production. Production potential is estimated at 150,000 tons of grains and 200,000 tons of fruit per year, resulting in a gross production value of BRL 900 million / year when the entire area is occupied. . Model: Concession of Real Right of Use . Executed investments: USD 240 million (Pumping Station . Structurer: Codevasf/MDR/PPI. of 10.5 m³/s and 42 km of channels) . Procuring authority: BR Government/Codevasf . Projected CAPEX investments: USD 320 million . Sector Ministry: Ministry of Regional Development . Contract term: 35 years . Regulator: None . Auction criterion: highest concession fee . Regulation: Mechanism defined in the concession . Status: Public consultation contract . Auction: 2021 Integrated Communication Network of the Brazilian Air Force Command - PPP

. Features: The Air Force Telecommunications Network covers the entire Brazilian airspace (territorial waters included), an area of 22 million km 2

. Object of the concession: designing, installing, updating, expanding, operating, managing and maintaining a communications, control and management infrastructure for the Operational Network, Administrative Network, Corporate Network, Telephone Networks, Aeronautical Command Network, Tariff System Data Link, International Links, Network Management Center and Security Management Center integrated through an administrative concession contract.

. Brownfield project . Projected CAPEX investments : USD 308 million . Projected OPEX investments : USD 448 million . Model: Administrative Concession . Contract term: 25 years . Structurer: Committee for the Implementation of the Airspace . Auction criterion: lowest consideration value per month Control System - CISCEA, with support of FIA - USP. . Maximum consideration per month: USD 3.51 million . Procuring authority: Federal Government/ CISCEA . Public Guarantees: Infrastructure Guarantee Fund - FGIE: value of . Sector Ministry: Ministry of Defense - Air Force Command 6 monthly consideration installments; . Regulator: None . Status: revised assessments expected Regulation: Mechanism defined in the concession contract . . Auction: 2022

1 USD = BRL 5 PPP – Critical Digital Radio Communication for Defense and Public Security

. Features: Assessments for Modeling the National System for Integrated Critical Digital Radio Communication for Defense and Security of the Federal Government, States, the Federal District and Municipalities. Establishment of a single operator for a national integrated LTE radio communication network, with service levels, availability and encryption compatible with the requirements of the Public Security and Armed Forces. . Object of the assessments: Structuring a high capacity trunk backbone network, public and private, for signal transport and convergence of technology and secure communications protocols for critical missions. It must be capable of connecting different technologies and integrating security forces of the Federal Government, States and Municipalities, as well as the Armed Forces, involving common applications. It may include end-use equipment. Diversity of applications and technological transition in an interchangeable platform for data services. It reaches the entire national territory and security and defense organizations using digital radio communication for voice and data traffic on secure and exclusive frequencies, with infrastructure to be shared with other public or private uses with converging standards. Investment made by the Ministry of Justice and its subsidiary bodies of USD 465 million in its own network and equipment.

. Model: Public-Private Partnership of the BR Federal . Projected CAPEX investments: USD 400 million Gov jointly with subnational level entities . Projected OPEX investments: to be defined . Structurer: Assessments to be hired by BNDES, . Public Guarantees: Infrastructure Guarantee Fund – FGIE together with MJSP, MD, MCTIC and SPPI. . Status: definition of requirements . Procuring authority: Federal Government . Completion of assessments: to be defined . Sector Ministry: Ministry of Justice and Public . Auction: 2022 Security - MJSP . Regulator: None . Regulation: Mechanism defined in the concession contract 1 USD = BRL 5 Fêmina Hospital in Porto Alegre, State of Rio Grande do Sul

. Features: Assessments of partnership alternatives aiming at modernizing and improving public services of a new specialized hospital care unit in an area of the “Conceição Hospital Group”, in the city of Porto Alegre, State of Rio Grande do Sul. The initiative involves designing, constructing, installing, maintaining and operating health support services in a new location. Fêmina Hospital, a reference in women’s care for the Metropolitan Region of Porto Alegre, has been in operation since 1956. It has 12,300 m2 of built area, 166 beds and 917 workers. In 2018, the unit performed 126,000 medical consultations, 9,000 hospitalizations, 6,400 surgeries and 2,100 deliveries. The new unit should involve expanding the service, as well as improving the quality of service provision.

. Object of the assessments: alternative partnerships to adapt current structures, as well as constructing, renovating and expanding facilities and improving services management.

. Model: Public-Private Partnership . Greenfield project . Structurer: Assessments under analysis by BNDES . Projected CAPEX Investments: USD 30 million . Procuring authority: Federal Government . Projected OPEX Investments: to be defined . Sector Ministry: Ministry of Health . Contract term: to be defined . Regulator: None . Auction criterion: to be defined . Regulation: Mechanism defined in the concession . Status: Requirements definition contract . Auction date: 2022 . Public Guarantees: Infrastructure Guarantee Fund – FGIE

1 USD = BRL 5 Environmental Licensing

• Brazil is the most biodiverse country on Earth and that implies a major responsibility. • Brazil has a strong legal framework, which comprises a specific chapter about environmental licensing enshrined in the 1988 Federal Constitution. • Even before the Constitution, Brazil had already established an Environment National Policy (1981), which is still in force. • The main purpose of this policy is making social, economic development compatible with preserving environment quality and ecological balance. • Environmental licensing is the main control mechanism in the Brazilian legislation and is required for carrying out any activity that, effectively or potentially, could result in environmental degradation. Energy Transmission Line Tocantins Manaus – Boa Vista Waterway Rock Supporting Dredging environmental Highway BR-319/AM/RO Highway Highway licensing and BR-235/PE BR-242/MT Highway expropriation BR-158/MT Highway Highway BR-174/RO/MT BR-135/BA/MG Shale Gas Fracking Highway • site to be defined Highway BR-080/MT BR-135/MG Hydropower Plants • Castanheira – MT • Telêmaco Borba – PR • Tabajara – RO • Bem Querer – RR • Formoso – MG • Ercilândia – PR • Aparados - PR PPI projects for supporting subnational level partnerships Current PPI pipeline for supporting subnational level projects Public Street Lighting – 20 Wastewater – 6 Municipal Solid Waste - 5 Daycares - 1 FEP (cities): 17 FEP (5) FEP (3 cities): • Teresina/PI 1 PPP • Teresina/PI (40 units) • /MG • Cachoeiro do • Crato/CE • Cities cluster Convale/MG ( Uberaba, • Campinas/SP Itapemirim/ES • Volta Redonda /RJ Conceição das Alagoas, Sacramento, Delta, • • Camaçari/BA • São Gonçalo do Amarante/RN Planura, , Veríssimo and Água • Toledo/PR • Barreiras/BA Comprida ) BNDES (3 states): • Bauru/SP Prisons - 2 • Corumbá • Alagoinhas/BA • State of Rio Grande do Sul • Cities cluster Comares/CE (Altaneira, 2 PPP’s • Valparaíso de • Itanhaem/SP • State of Ceará Barbalha, Caririaçu, Crato, Farias Brito, Jardim, • State of Rio Grande do Sul Goiás/GO • Ariquemes/RO Missão Velha, Nova Olinda and Santana do • State of Bahia State of Santa Catarina • Crato/CE • Nova Iguaçu/RJ Cariri) • • Colatina/ES • Araçatuba/SP • Cities cluster Codepampa/RS (Alegrete, • Timon/MA Barra do Quaraí, Caçapava do Sul, do Sul, Correctional facilities- 2 Water, Wastewater and Municipal Manoel Viana, Quaraí, Rosário do Sul, Santa Margarida do Sul, Santana do Livramento, São 2 PPP’s BNDES (cities): 3 Solid Waste - 1 Gabriel, Uruguaiana, Vila Nova do Sul • State of Minas Gerais • Curitiba/PR • Jaboatão dos FEP (1 city) Water Supply and Wastewater • State of Santa Catarina Guararapes/PE • Caruaru/PE • São Simão/GO Treatment - 7 BNDES (6) • State of Amapá Urban Drainage - 1 • State of Alagoas – Blocos B e C • State of Minas Gerais Hospital – 1 46 H • State of Paraíba FEP (cities) • State of Rio de janeiro (CEDAE) Projects Guarulhos/SP: Municipal Hospital of Children • Porto Alegre/RS • Porto Alegre/RS (city) and Adolescents (HMCA) FEP (1) • Engenho Maranhão –State of Pernambuco The challenge of universalizing basic sanitation

Goals USD 150 In Brazil, a population equivalent to that • BILLION IN of Canada has no access to clean water INVESTMENTS • More than 100 million have no UNTIL 2023 access to wastewater treatment • Enhancing private partnerships USD 51 USD 99 NORTH MIDWEST SOUTH SOUTHEAST NORTHEAST subnational level bodies (an estimate of BILLION OF BILLION IN DEPRECIATION EXPANDING USD 9 USD 10 USD 18 USD 35 USD 28 USD 150 billion in investments ) THE SYSTEM BILLION BILLION BILLION BILLION BILLION

• Structuring bankable projects to provide WATER WATER WATER WATER WATER WATER USD 28 USD 3 USD 3 USD 4 USD 11 USD 9 proper services to Brazilians BILLION BILLION BILLION BILLION BILLION BILLION WASTEWATER SEWAGE SEWAGE SEWAGE SEWAGE SEWAGE USD 68.5 USD 6 USD 8 USD 14 USD 24 USD 19 BILLION BILLION BILLION BILLION BILLION BILLION Source: ABCON SINDCON 1 USD = BRL 5 Basic sanitation projects State of Amapá 01 2 million Under assessment Urban drainage (not to add) State of Projects Benefited citizens Projected Ceará São Gonçalo Capex+ Opex - Total Crato do Amarante Teresina Municipal solid 04 2 million State of USD 640 million waste Paraíba Consortia Crato (pilot projects) Projects Benefited citizens Projected Comares Capex+ Opex - Total Engenho Maranhão State of Alagoas 05 838,000 State of Acre Blocks B and C Basic sanitation USD 700 million Projects Benefited citizens Projected Capex+ Opex - Total São Simão State of million Consortia Minas Gerais 02 6.6 USD 1.88 billion Convale Wastewater Projects Benefited citizens Projected investments - Total Bauru

Volta Redonda State of Rio de Urban drainage - FEP 05 7.0 million USD 2.56 billion Janeiro - Block 3 Water and wastewater Urban solid waste - FEP Projects Benefited citizens Projected investments - Total Basic sanitation - FEP Water distribution and Porto Alegre sewage - BNDES Total 17 Projects million billion State of 18.4 USD 5.78 Sewage - BNDES Rio Grande do Sul 1 USD$= BRL 5 Banco de serviços: destaqueSanitation para saneamento projects - FEP

São Gonçalo Consortia Consortia São Volta Porto Bauru/SP Teresina/PI Crato/CE do Amarante / Convale/MG Comares/CE Simão/GO Redonda/RJ Alegre/RS RN Concession Business Concession Concession Concession Concession MSW, water Concession Concession Concession Concession Model MSW MSW MSW MSW and wastewater wastewater wastewater drainage wastewater Entitled 376,000 865,000 428,000 343,000 20,000 132,000 273,000 102,000 1.4 million Population

Projected USD 43.4 USD 23.6 mi USD 26.4 mi USD 10 mi USD 9.6 mi USD 38.8 mi USD 64 mi USD 24 mi - Investments mi

Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction data Q4 2021 Q4 2021 August/21 Q2 2022 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022

For more information: https://www.ppi.gov.br/Projects-concessoes-e-parcerias

Beneficiary population Total projected investment 4.8 million USD 240 million

1 USD = BRL 5 BNDES pipeline of projects on sanitation Banco de serviços: destaque para saneamento Alagoas Rio de Rio Cariacica / Rio de Porto Alagoas – Minas RM Amapá Acre Janeiro Grande Ceará Paraíba ES Janeiro Alegre / RS Blocks B&C Gerais Maceió Blocks 3 do Sul Full Concessio Full Concession Concession Concession concession Concession n of water Sewage concession of water of water Business of water of water of water Sewage Sewage To be To be distributio PPP of water and/or and/or Model distribution and and/or PPP PPP defined defined n and and sewage sewage and sewage sewage sewage sewage sewage

Beneficiary 2.42 4.17 11.6 1.3 million 423,000 11.5 million 734,000 629,000 1.5 million 2.2 million 1.93 million 2.2 million Population million million million

Projected USD 498 USD 116 USD 600 USD 287 USD 720 USD 600 USD 1.28 To be 800 USD 5.5 bi USD 434 mi USD 520 mi Investments mi mi mi mi mi mi bi defined million

Auction To be expected Sep, 02 TBD Q4/21 Q1/22 Q1 /22 Q4/21 Q2/22 Q4/22 defined date Signature Signature of Discussion of the Auction Updating Assessment Preparing Current the PPP Auction with Evaluation by Under Under Hiring concession Notice the under for stage contract (04/30/21) municipaliti audit courts assessment assessment Consultants contract Published assessment revision assessment (AEGEA) es (BRK)

Benefited population Under preparation: Total projected investment +40 million Segipe and Rondônia USD + 10 billion For more information: http://saneamento.bndes.gov.br / 1 USD = BRL 5 FEP – PROJECTS IN THE PIPELINE

URBAN DRAINAGE 1 2.2 millions 2 To be defined projects Benefited citizens Cities 18 4.5 millions 22 260million STREET LIGHTING projects Benefited citizens Cities Total Capex + opex foreseen URBAN SOLID WASTE (PILOT 04 2millions 19 640million PROJECTS) projects Benefited citizens Cities Total Capex + opex foreseen

BASIC 05 838,000 06 700 million SANITATION projects Benefited citizens Cities Total Capex + opex foreseen UNIDADES 02 - - 12million Urban Drainage SOCIOEDUCATIVAS projects Benefited citizens Cities Total Capex + opex (projetos pilotos) foreseen Street Lighting Sewage Total 30 projects 9.5 Millions 49 1.62 Billion Environmental Sanitation Correctional Facilities (State) PARTNERS

1 USD = BRL 5 Projects in Municipalities – FEP – Street Lighting

UF Municipalities % executed Auction date BA Alagoinhas Not started 2022 Projects Benefited population RO Ariquemes 1 2022 18 4.5 mi SP Araçatuba Not started 2022 Municipalities CAPEX OPEX BA Barreiras 13 2022 ES Cachoeiro de Itapemirim 81 2021 22 USD 135.98 mi USD 126 mi BA Camaçari* 78 2021 SP Campinas* 89 2021 Project preparation guidelines ES Colatina Not started 2022 • Administrative PPP MS Corumbá 20 2022 • Scope: modernizing, expanding, operating and running the power grid CECrato 20 2022 • Energy efficiency and less impact in the environment RJ Nova Iguaçu Not started 2022 • Short-term investments, up to 3 years MG Nova Lima 65 2021 • Remote management (main streets) MG Patos de Minas 57 2021 SP Itanhaém Not started 2022 Supporters: Executor: MA Timón Not started 2023 PR Toledo 60 2021 GO Valparaíso de Goiás 9 2022 2nd Public Call for Street Lightening: BA Consórcio Alto Sertão BA Not started - Disclosed results: 46 cities and 10 qualified consortia * Projects supported by IFC/Banco Mundial 1 USD = BRL 5 Public lighting FEP projects FEP in the post public consultation phase

Projected Number of Term Projected Max. consideration % of remote Population CAPEX OPEX lighting points Efficiency goal (years) (BRL million/ year) management USD million USD million (in thousands)

Campinas/SP 1,204,073 13 31.12 20.1 7.92 122 25% 65%

Cachoeiro do 208,972 13 6.59 8.1 1,4 23 23,5% 39% Itepemirim/ES

FEP Projects for handling of Municipal Solid Waste after Public Consultation

Household Projected Projected Term Waste Type of User billing Population CAPEX OPEX Scope (years) Generation concession method USD million BRL million (t / day) 1. Collection, transhipment, Common Tariff, co-billed Convale/MG 424,67630 26.5 167.6 transport, treatment and final 322 with the water destination of solid household Concession bill waste; and 864,845 43.4 252.6 2. Environmentally appropriate final disposal of public urban waste 1 USD = BRL 5 Street Lighting - BNDES Jaboatão dos +234,000 modernized light points Guararapes +2.9 million beneficiary population 43 th. 703 th. Images legend

Spots

Population Curitiba Caruaru 163 th. 31 th. 1.9 M Chart legend 350 th.

Ongoing projects

Prospecting cities

490m Data presented in this chart are estimated, thus they shall not be considered as definite figures. 1.4 M Public lighting – BNDES

Porto Alegre Teresina Vila Velha Macapá Petrolina Caruaru Curitiba Jaboatão dos (RS) (PI) (ES) (AP) (PE) (PE) (PR) Guararapes (PE)

Beneficiary population (thousands) 1400 800 490 400 340 350 1900 702 Modernized light points (thousands) 105 87 35 40 35 31 163 44 Total Capex (USD million) 52 52 22 20 18 16 66 22 Concession term (years) 20 20 20 20 20 20 23 20 Public Public Under Project phase Contract signed Auction held Consultation Consultation assessment Projected energy saving (%) 46 51 50 47 48 Auction date 08/29/19 06/05/19 08/03/20 08/29/19 11/19/20 2Q21 3Q22 Auction bidders 8 7 11 5 8 Discount (%) 46 46 62 61 67 +540,000 modernized light points +6,3 million beneficiaries Contract signature date 06/17/20 07/16/20 10/20/20 10/07/20 +USD 260 million in projected investments

1 USD = BRL 5 PUBLIC CALLS AND PILOT PROJECTS – FEP CAIXA

Street Lighting Basic Sanitation Pilot projects Bidding Notice Dec/2019

Municipal Solid Waste Drainage Enrollment closed 6/March/2020 Enrollment closed City of Teresina/PI – hired in 15/July/2020 Aug/20 65 enrolled municipalities 41 enrolled consortia 46 qualified municipalities City of Porto Alegre/RS – hired in Sep/20 15 enrolled consortia 23 qualified consortia Correctional Facilities / 10 qualified consortia beneficiary population UNOPS Beneficiary Population: 9,9 Million State of Minas Gerais – 10.6 Million (municipalities) hired 1.9 Million (consortia) State of Santa Catarina – hired Ref. 15/01/2021 PPP FEP AUCTIONS (2021)

Studies concluded with Public Invitation to bid - publication Auction session Consultatin results published Consortium Convale/MG AGO Campinas/SP JUL SEP Nova Lima/MG* JUL OCT Bauru/SP JUL NOV São Simão/GO SEP DEC Camaçari/BA AUG NOV Teresina/PI AUG DEC Cachoeiro do Itapemirim/ES AUG NOV Patos de Minas/MG AUG NOV FEP AUCTIONS (2022/2023) Ref. 15/01/2021 Studies concluded with Public Invitation to bid - Auction session Consultatin results published publication Toledo/PR JUL/21 NOV/21 JAN/22 Corumbá/MS JUL/21 NOV/21 JAN/22 Crato/CE AGO/21 NOV/21 FEB/22 Consortium Comares/CE OCT/21 JAN/21 APR/22 Barreiras/BA JAN/22 FEB/22 MAY/22 Valparaíso de Goiás/GO DEC/21 FEB/22 MAY/22 Alagoinhas/BA APR/22 SEP/22 NOV/22 Nova Iguaçu/RJ JAN/22 MAY/22 JUL/22 Ariquemes/RO DEC/21 JAN/22 APR/22 Colatina/ES FEV/22 MAY/22 AGO/22 Araçatuba/SP APR/22 SEP/22 NOV/22 Itanhaém/SP APR/22 SEP/22 NOV/22 Crato/CE OUT/21 FEV/22 São Gonçalo do Amarante/CE APR/22 JUN/22 SEP/22 Volta Redonda/RJ NOV/21 MAR/22 JUN/22 Porto Alegre/RS MAY/22 SEP/22 DEC/22 Governo do Estado de Minas APR/22 JUL/22 NOV/22 Gerais - Correctional facilities Governo do Estado de Santa APR/22 SET/22 DEC/22 Catarina - Correctional facilities Banco de serviços: destaquePublic para Securitysaneamento and Education

Rio Grande do Teresina/PI Santa Catarina Minas Gerais Santa Catarina Sul

Juvenile Juvenile Daycare centers Area Prisons Prisons Correctional Correctional (40 units) facilities facilities

Business Model PPP PPP PPP PPP PPP

Benefited 27,000 children 3,000 places 1,125 places 439K 357K population

Projected 40 million 40 million 14 million 7 million 7 million investment USD

Next steps Auction Q2/2022 Auction Q2/2022 Auction Q2/2022 Auction Q4/2022 Auction Q4/2022

1 USD = BRL 5 Subnational level partnerships – States prison systems

o Greenfield and brownfield projects: . Santa Catarina: new prison complex comprising a new jail with capacity for up to 600 prisoners and medium security penitentiary(ies) with capacity between 1,800 and 3,300 prisoners, considering in this total the 806 vacancies in the Blumenau Industrial Penitentiary o Policy objectives: alternative solutions to enabling the . Rio Grande do Sul: new detention center comprising medium provision of public services with greater efficiency and security prison(s) with a total capacity for up to 1,125 prisoners, in quality, resulting in an effective resocialization of prisoners the city of Erechim through working and learning activities. o Contract term: up to 35 years o Object of the concession: construction, maintenance and o Main modeling assumptions: under assessment operation of prisons. o Consultancy in charge of assessments: consortium led by PwC (under o Model: administrative concession approval) o Structurer: BNDES and BID o Status: studies in progress o Procuring authority: states of Rio Grande do Sul and Santa Catarina o Responsible Ministry: Ministry of Justice o Regulator: states’ public security secretariats Juvenile correctional facilities*

• Pilot projects under designing: States of Santa Catarina (Blumenau) and Minas Gerais ()

• CAIXA and the UN Office for Project Services are working together with PPI for designing those PPPs

• The private partner will be responsible for constructing, maintaining and operating, up to 35 years, with quality services milestones, including training and skills development.

In Brazil, these facilities are destined for people under 18, which is the legal age of majority/criminal responsability. Supporting Subnational Level Partnerships Daycare units • PPI, the Ministry of Education and BNDES are prospecting states and municipalities for Pilot Projects of PPPs in daycare units • 1 pilot project selected: city of Teresina/PI (40 unities). • Investment : USD 40 million • Private partner is responsible for accomplishing the civil works, equipping, maintaining and operating, up to 35 years, with standards to meet in quality of service. • Public partner is responsible for pedagogical planning, selection of children to be served, monitoring and inspection of contracts and goals. The Children’s Hospital in Guarulhos-SP • Features: Assessing alternatives for PPPs aiming at building, equipping, operating, maintaining and providing clinical and non-clinical services in the Healthcare Specialized Unit of municipal duty. • Object of the concession: the new hospital will be structured through a PPP under the administrative concession model, replacing the services currently provided in the existing Municipal Hospital for Children and Adolescents (HMCA). It will be built in an area provided by the Guarulho’s Administration, which allows increasing the number of beds and bringing forward an architectural proposal in line with more quality and efficient hospital services. As for the new envisaged services, it is worth highlighting: hospital admission, hospital assistance, immediate care, 24h emergency room, outpatient care, diagnosis and therapeutic support (internal), diagnosis and therapeutic support and medical specialties (external), elective surgeries and other not aforementioned services that might meet the City Hall future requirements.

Assessments: Structurer - BNDES Model: PPP under the administrative concession model Procuring authority: Municipal government/Guarulhos Administration Public Guarantees: Under assessment Contract Term : to be defined Current stage: Studies under development Assessments to be accomplished: First half of 2022 Bidding Notice: Second half of 2022 Next steps

June, 2021 PPI auctions scheduled for 2021

AUG SEP OCT NOV DEC

September 2 August • Amapá’s Basic Sanitation • Municipal Solid October 07 December 17 Waste – • 17th Round under the • 2nd auction of Municipal September 8 concession transmission Consortia • 4th Round of agreement Convale/MG available areas installation 2021 • Auction of Sepia and Atapu blocks – September 20 Transfer of Rights • Public Lightning November 23 – Campinas/SP • Kaolinite - Rio Capim (PA)

September 30 • 1 auction of new energy A-5 Auctions 2021 2021 (65 assets) – USD 66 billion in expected investments / USD 42.5 billion in scheduled auctions

Port Terminals (10) Electric Power (2): Privatization (8) Subnational (15) •3 in Maceió/AL •1 in Areia • 1 auction of transmission installation • CEASAMINAS • TRENSURB • ABGF 3 concessions of municipal solid waste: •2 in Santos/SP Branca/RN – Dec 17 • CORREIOS • CBTU-MG • EMGEA •Teresina/PI Consortium Convale/MG– Ago • ELETROBRAS • CODESA •1 in Itaguaí/RJ •2 in Paranaguá/PR • 1 auction of new energy A-5 (Sep 30 ) • Bauru (SP) •1 in Imbituba/SC Mining rights (6) •1 in Mucuripe/CE • Cupper - Bom Jardim de Goiás(GO) 1 Concession of MSW, Water and wastewater services - • Kaolinite- Rio Capim (PA) – November 23 São Simão (GO) • Diamonds – Santo Inácio (BA) 3 Concessions of water and wastewater • 4th Round of available areas - Sep 8 Fishery Terminais (7) 5th to 6th Rounds of available áreas • State of Amapá - Sep 02 •Porto Alegre (RS) Highways (2): • • Aracajú ( SE ) •Belém (PA) •State of Rio de Janeiro • BR-116/465/101 (SP/RJ) – Dutra (CEDAE) • BR-381/262 (MG/ES) • Santos ( SP ) •Manaus (AM) • Cananéia (SP) •Natal (RN) Regional Development (1) Railroads (1) •Vitória (ES) • Irecê basin irrigation (BA) Renovação MRS Urban Mobility (1) Parks and forests (5) • Belo Horizonte (MG) subway line 2 1 Concession of wastewater services • Lençóis • Humaitá (AM) Telecommunication (1) State of Rio Grande do Sul Maranhenses (MA) • 5G • Jericoacoara (CE) • Iguaçu (PR) Obs. Environmental permitsexpected (5): • Preliminary licensing of Pedral do Lourenço/PA 7 public lighting PPPs: • Construction licensing of BR-080/MT • Nova Lima/MG • Campinas (SP) – Oil & Gas (4) • Construction licensing of BR-158/MT • Cachoeiro do Itapemirim Sep/20 Preliminary licensing of BR-319/AM/RO • (ES) • Caruaru (PE) • 2 Blocks – Transfer of Rights (Sépia and • Construction licensing of BR-135/BA/MG Atapu) – Dec 17 • Patos de Minas (MG) • Curitiba (PR) • 17 th Round under concession agreement • Caçamari (BA) – Oct 7 • 3rd Cycle of Open Acreage PPI Auctions scheduled for 2022

2022 (104 assets)

Airports – 7th round (26) Privatization (6) Tourism (4) 16 airports in 3 blocks 7 TH round • Organized Port of Santos (SP) • Serpro • Farm Pau D’Alho (SP) Fortress Santa Catarina (PB) • Block RJ-MG (5): Santos Dumont/RJ, Jacarepaguá/RJ, • Telebrás • Dataprev • Uberlândia/MG, Montes Claros/MG and Uberaba/MG • EBC • Nuclep • Fortress Nossa Senhora dos Remédios – Fernando de Noronha (PE) • Block SP-MS (5): Congonhas/SP, Campo de Marte/SP, Campo Parks and Forests (4) • Fort Orange (PE) Grande/MS, Corumbá/MS and Ponta Porã/MS • Iquiri (AM) • São Joaquim National Park (SC) • North Block 2 (6): Belém/PA, Santarém/PA, Marabá/PA, Carajás/PA, • Castanho (AM) • Brasília National Park (DF) Mining rights (5) Altamira/PA and Macapá/AP Subnationals (24) • 7th to 9 th rounds of ANM available areas 8 regional airports in the state of Amazonas: Parintins, Carauari, 1 daycare PPP • Gypsum - Rio Cupari (Pará) Coari, Eirunepé, São Gabriel da Cachoeira, Barcelos, Lábrea, Maués • City of Teresina (PI) • Limestone – Aveiro (Pará) 2 airports (rebidding) 2 Prison PPPs •City of Erechim (RS) Health (1) • Viracopos – Campinas (SP ) and São Gonçalo do Amarante • City of Blumenau (SC) • New City Hospital for Children and Teenagers in Guarulhos (SP) Highways (8): Ports (14) 2 Correctional Facilities PPPs •State of Santa Catarina • BR-116/493 (RJ/MG) - CRT • 2 port terminals in Santos/SP • State of Minas Gerais Lottery (1) • BR-040/495 (MG/RJ) - Concer • 1 terminal in Fortaleza (CE) 1 Urban Drainage • Fixed odds • 7200 km of federal highways • 4 terminals in Paranaguá/PR Porto Alegre (RS) • Regional Development (1) • BR-040 (DF/GO/MG) – • Port of Itajaí (SC) • PISF (São Francisco river integration project) rebidding • Port of São Sebastião (SP) 3 Wasteater Projects : Volta Redonda; São Gonçalo do Amarante • BR-135/316 (MA) • 2 terminals in Maceió (AL) (RN); State of Ceara Defense and Security (1) • BR-364/MT/RO • 1 terminal in Suape (PE) 1 Solid Waste: Consortium Comares (CE) • COMAER PPP • BR-163/MS – rebidding • 2 terminals in Vila do Conde 2 Water Distribution and Sewage Treatment: State of Paraíba and • Integrated Highways in Paraná State of Alagoas (blocks B and C) Obs. Environmental permits expected: 12 public lighting PPPs • Preliminary license of BR-242/MT Querência-Santiago •Itanhaém (SP •Nova Iguaçu (RJ) do Norte section) Railways (4) Supply (1) •Colatina (ES) •Araçatuba (SP) • Preliminary license of the HPP in Formoso/MG • Ferrogrão • CONAB wharehouses and •Ariquemes (RO) •Jaboatão dos Guararapes • FCA renewal facilities •Corumbá (MS) (PE) • BR 135/MG (Manga/MG - Itacarambi/MG) • Paraná Oeste S.A. – Ferroeste •Crato (CE) •Alagoinhas (BA) Installation Licence •Valparaíso de Goiás (GO) •Barreiras (BA) • Rumo Malha Sul • BR-235/PE Installation Licence •Toledo (PR) www.ppi.gov.br fb.com/ppinvestimentos @ppinvestimentos @ppinvestimentos linkedin.com/company/ppinvestimentos

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