Sport Events – Opportunities and Investments December 2011
© Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward© Rio investmentBusiness: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investments
Global Visibility: A Powerful Marketing Platform
2011
Rio + 20
2012
Confederations
2013 Cup
2014
450th
2015 Anniversary
2016
2 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment Sporting Events Estimated Impacts
# Tourists (M)
11.6 12.1 11.1 CAGR = 4.7% 10.3 10.6 2.1 9.3 1.8 8.3 8.5 9.2 1.2 1.3 1.6 7.8 7.9 8.1 0.5 0.4
8.7 8.9 9.1 9.3 9.5 9.8 10.0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Tourists Expenses (R$ bn) 20.5 CAGR = 11.6% 18.5 16.6 4.8 14.4 14.9 4.0 3.3 2.8 10.6 11.0 3.3 0.9 7.7 8.5 1.3 6.3 6.4 7.0
9.3 10.1 11.1 12.1 13.3 14.5 15.7
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Without Events With Events Source: PwC
3 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment Sporting Events Estimated Impacts
Financial Impacts (R$ Bi) 56,1 4,5 1,0 1,0 13,6
36,0
Infrastructure Tourism Innovation Creative Ind. Financial Services Total
Jobs Created (thousand)
3,0 3,2 2,1 94,9 8,7 2,2 0,9 11,9 3,5 1,0 2,4 5,2 68,1 9,5 57,9 47,7
37,0 20,4
Infrastructure Tourism Innovation Creative Ind. Financial Services Total
Temporary Permanents Source: PwC
4 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment Main Projects USD Project Project (milion) Management Status BRT - TransOlympic 941,2 PPP tender Tram (VLT) 647,1 PPP in project Olympic Park 823,5 PPP tender Porto Maravilha 4.500,0 PPP in progress Olympic Port n/a PPP in project Deodoro Racetrack 141,2 PPP in project Sub-Total 7.052,9 BRT - TransBrasil 764,7 State in progress Metro - Line 4 2.800,0 State in progress Metropolitan Ring 567,6 State in progress Sub-Total 4.132,4 BRT - TransCarioca 1.000,0 City Hall in progress BRT - TransOeste 476,5 City Hall in progress Jõao Havelange Stadium Surrounding Area 56,5 City Hall in progress AP5 Sanitation System 113,5 City Hall in progress Jacarepaguá Environmental Rehabilitation 687,6 City Hall in progress Athlets Village 23,5 City Hall in progress Bike Lanes Expansion 28,2 City Hall in progress Reforestation 18,8 City Hall in progress Popular Housing: "Morar Carioca" 4.411,8 City Hall in progress Education: "Rio Criança Global" 6,5 City Hall in progress Health Olympic Program: "Rio em Forma Olímpico" 8,8 City Hall in progress Accessibility Plan 0,6 City Hall in progress Time Rio 2,6 City Hall in progress Sub-Total 6.835,0 TOTAL 18.020,3
5 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment Partners, Sponsors & Supporters
6 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment Rio in 2016 TRANSPORTS 16 PROJECTS New Intermodal System + 140 Km of BRTs / 1.300 new buses Increase of high capacity transportation from 16% to 63% Transports: Existing Capabilities
International Airport
RJ Port
Itaguaí Port Domestic Airport
EXISTING RAILWAY METRO HIGHWAY
8 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment Transport: Infrastructure and Projects – Transoeste
▪ Project Management: City Hall ▪ Funding: City Hall ▪ Value: USD 477 M ▪ End: jul/2012 ▪ Concession: Existing operator International Airport ▪ Extension: 56 km
▪ Demand: 135K users daily RJ Port ▪ Hub: BRT´s Transcarioca and Transolimpica
Itaguaí Port Domestic Airport
Tunnel
BRT EXISTING TRANSOESTE RAILWAY METRO HIGHWAY
9 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment Transport: Infrastructure and Projects – Transolimpica
▪ Project Management: PPP ▪ Funding: PPP ▪ Value: USD 941 M
▪ Works start up: jan/12 International Airport ▪ Extension: 26km ▪ Demand: 130K users daily RJ Port ▪ Capacity: approximately 30 thousand cars daily
Itaguaí Port Domestic Airport
Tunnel
BRT EXISTING TRANSOESTE RAILWAY TRANSOLIMPICA METRO HIGHWAY
10 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment Transport: Infrastructure and Projects – Transcarioca
▪ Project Management: City Hall ▪ Funding: City Hall / Federal ▪ Value: USD 1 B
▪ Public Tender: nov/2011 International Airport ▪ Extension: 39 km ▪ Demand: 380K users daily RJ Port ▪ Hub: subway and train systems
Itaguaí Port Domestic Airport
Tunnel
BRT EXISTING TRANSOESTE RAILWAY TRANSOLIMPICA METRO TRANSCARIOCA HIGHWAY
11 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment Transport: Infrastructure and Projects – Transbrasil ▪ Project Management: City Hall ▪ Value: USD 764 M ▪ Capacity: 47K users at peak time ▪ Works start up: apr/12 International Airport ▪ Extension: 24km ▪ Hub: 3 terminals (Via Dutra, Washington Luiz and Downtown Rio) RJ Port ▪ Project in development
Itaguaí Port Domestic Airport
Tunnel
BRT EXISTING TRANSOESTE RAILWAY TRANSOLIMPICA METRO TRANSCARIOCA HIGHWAY TRANSBRASIL
12 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment Transport: Infrastructure and Projects – Metro L4
▪ Project Management: State ▪ Funding: State ▪ Value: USD 2.8 Bi ▪ Concession: Existing operator International Airport ▪ Hub: South Zone (Ipanema) – Barra da Tijuca RJ Port
Itaguaí Port Domestic Airport
Barra da Tijuca Ipanema Tunnel
BRT METRO UNDER EXISTING TRANSOESTE IMPLEMENTATION RAILWAY TRANSOLIMPICA METRO TRANSCARIOCA HIGHWAY TRANSBRASIL
13 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment Transport: Infrastructure and Projects – Tram (Downtown)
▪ Project Management: PPP Cruise Ships ▪ Funding: PPP ▪ Value: USD 647 M
Ferry Station
Santos Dumont Airport
Tram Bus Station Subway New Road System Integration with Transbrasil (BRT) Supervia (Train Station) Bus Terminals
14 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment Transport: Infrastructure and Projects USD 8.5 bn investments in new intermodal system integrated with bus rapid corridors, trains, ferries and subway
. + 140 Km of BRTs / 1,300 new buses / 700k people beneficiated . Mass transportation system growth from 16% to 63%
International Airport
RJ Port
Itaguaí Port Domestic Airport
Barra da Tijuca Ipanema Tunnel
BRT METRO UNDER EXISTING TRANSOESTE IMPLEMENTATION RAILWAY TRANSOLIMPICA METRO TRANSCARIOCA HIGHWAY TRANSBRASIL
15 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment Rio in 2016 TRANSPORTS INFRAESTRUCTURE 16 PROJECTS 35 PROJECTS New Intermodal System Waterfront area renewed + 140 Km of BRTs / 1.300 new buses 4 Olympic areas re-qualified Increase of high capacity transportation from 2 million inhabitants benefits 16% to 63% 13 K HUs in New Hotels (50%) Maracanã Investment (only stadium): US$ 580 M Creation of Convenience Area Start up: aug/2010 (Consortium “Maracanã 2014” – Odebrecht / Andrade Gutierrez / Delta) End: dec/2012
17 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment Porto Maravilha Porto Maravilha is the main ongoing urbanization project in the city of Rio de Janeiro
Main Distances from Porto Maravilha Porto Maravilha Area and Surroundings
Aeroporto Internacional Tom Jobim 11 km
Operational Docks Porto Maravilha
Novo Rio Bus Terminal Maracanã 5 km Aeroporto Santos Dumont 2 km Bus Terminal Future High Speed Train Cidade Nova Subway Corcovado Pão de Açúcar Terminal Station 7 km 6 km Copacabana Central do Brazil 8 km Train Station
Largest PPP in Brazil (USD 4.5 bi in 15 years) works begun in 2010 and ends by 2015
18 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment The Olympic Port
19 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment Olympic Park
The Olympic & Paralympic Park will be transform into an Entertainment, Commercial and Residential Area
Olympic Park – 2016 USD 823 Bi in Investments
Legacy - 2030
20 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment Urban and Tax incentives for Hotel System Expansion Urban
. Creates new locations hotel construction, such as Américas, Ayrton Senna, and Salvador Allende avenues, and the neighborhoods of Alto da Boa Vista, Guaratiba, Ilha do Governador and Flamengo
. Determines specific areas in the port and downtown regions for residence hotel construction Taxes
. Remission of Property Tax (IPTU) debts - IPTU exemption during construction works Real estate purchased up to 12/31/2012 Real estate with permission for occupancy up to 12/31/2015
. ITBI (tax for real estate transfer) exemption Real estate buying and selling transactions for hotel activity purposes up to 12/31/2012
. ISS (municipal service tax) reduction (0.5% aliquot) Construction or reconversion services rendered to hotel business up to 12/31/2015
21 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment Hospitality: Projection – 2016
47.3%
4.767 47.437
5.008
3.443 2.008 32.211 Motel 3.570 Hostel 568 Inn 355 H-Motel 3.479
Apart 4.123 H-s/* 1.461 H-2* 1.814
H-3* 5.311
H-4* 7.220
H-5* 4.245
Existing (nov-11) Construction Licensed Analyses Consulting Total
22 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment Main Brands Investing in Rio
HUs Neighborhood
4.424 Botafogo, Del Castilho, Barra, Copacabana, Downtown
1.217 Barra, Catete, Copacabana
1.058 Barra, Clube Flamengo
742 Barra, Centro
700 Barra
622 Glória, Barra
500 Barra
23 © Rio Negócios: Agência oficial da cidade do Rio de Janeiro responsável por atrair e facilitar novos investimentos Rio in 2016 TRANSPORTS INFRAESTRUCTURE 16 PROJECTS 35 PROJECTS New Intermodal System Waterfront area renewed + 140 Km of BRTs / 1.300 new buses 4 Olympic areas re-qualified Increase of high capacity transportation from 2 million inhabitants benefits 16% to 63% 13 K HUs in New Hotels (50%) ENVIRONMENT 30 PROJECTS Recovery of lagoon systems 24 million trees (state) More than 700 K people with access to sewage Duplication of the City bike tracks (+150 km) Reduction of 16% on gas emissions by 2016 Status of Priority Projects - Environment
Description Milestone Date
Environmental Environmental restoration of the lagoon • Beginning of works (Phase 1) • February/ 2011 ecosystem in the region of Jacarepaguá • Estimated conclusion of works • July/ 2012 Restoration of Baixada (Phase 1) de Jacarepagua
Reforestation and recovery program of • Prevision of plants 1500 hectares • December/2012 vegetation cover • Conclusion of 130 hectares • April/2011 Reforestation • Signature of an Outsourcing • January/2011 contract for the reforestation of 192 hectares
Bike Tracks Renovation, readjustment and expansion of • Beginning of works • October/2010 Expansion the bike tracks
Collection and treatment of sewage • Conclusion of the Basic • March/2011 Sewage Treatment of discharge from Marangá river basin, Project including the neighborhoods of Deodoro, • Startup • October/2011 Marangá River Basin Vila Militar, Magalhães Bastos, Padre Miguel, Realengo and Bangu
25 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment Sustainable Waste Management New Waste Treatment Center (2011)
. End of Gramacho’s landfill . Gramacho’s landfill sequestration will generate USD 232 M in carbon credits 15 years after the . Seropédica: New Waste Treatment Center will ending of Gramacho gather all 9 mil tons of waste generated by the city per day . Contract with Petrobras to use biogas for energy
. Emissions reduction of 1,4 M tons CO2 /year . Biogas can replace natural gas for energy and industrial purposes . State of the art tecnology in Brazil
26 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment Sustainable Waste Management Replacement of open landfill to the 1st Brazilian unit to treat waste residuals, generate energy & clean water
27 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment Rio in 2016 TRANSPORTS INFRAESTRUCTURE 16 PROJECTS 35 PROJECTS New Intermodal System Waterfront area renewed + 140 Km of BRTs / 1.300 new buses 4 Olympic areas re-qualified Increase of high capacity transportation from 2 million inhabitants benefits 16% to 63% 13 K HUs in New Hotels (50%) ENVIRONMENT SOCIAL DEVELOPMENT 30 PROJECTS 20 PROJECTS Recovery of lagoon systems All the favelas re-urbanized (until 2020) 24 million trees (state) 100 thousand new residential unities built and More than 700 K people with access to legalized sewage English teaching in the municipal schools Duplication of the City bike tracks (+150 km) Practice of sports spread in the whole public Reduction of 16% on gas emissions by 2016 schools system Status of Priority Projects - Social Development
Description Milestone Date
English language • 239 thousand students from 1st • December/2011 th Rio Criança Global implementation in municipal to 4 grades schools
Rio em Forma Sports and physical activities in • Program release • October/2009 public areas • 291 community sports groups in • June/2011 Olímpico operation
“Ginásio Education Program: Students • Program release • Jun/2011 st Experimental with athletic capabilities can • 1 unit startup • February/2012 develop their potential together Olímpico” with an education of excellence
29 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment Municipal Plan for the Integration of Precarious, Informal Settlements
MORAR CARIOCA program aims to promote the integration between the slums and the City concerning three aspects - Urbanization - Conservation - Control of land use
Objective: urbanization of all communities until 2020
Status: USD 4,4 billion assured (more than 140 thousand houses)
30 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment Rio in 2016 TRANSPORTS INFRAESTRUCTURE 16 PROJECTS 35 PROJECTS New Intermodal System Waterfront area renewed + 140 Km of BRTs / 1.300 new buses 4 Olympic areas re-qualified Increase of high capacity transportation from 2 million inhabitants benefits 16% to 63% 13 K HUs in New Hotels (50%) ENVIRONMENT SOCIAL DEVELOPMENT 30 PROJECTS 20 PROJECTS Recovery of lagoon systems All the favelas re-urbanized (until 2020) 24 million trees (state) 100 thousand new residential unities built and More than 700 K people with access to legalized sewage English teaching in the municipal schools Duplication of the City bike tracks (+150 km) Practice of sports spread in the whole public Reduction of 16% on gas emissions by 2016 schools system + 55 21 3031 4001
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