BLUE BOOK INFRASTRUCTURE A RADIOGRAPHY OF INFRASTRUCTURE PROJECTS IN BRAZIL INDEX 1. Presentation 3 2. A look at the infrastructure 4 3. Brazil in numbers 8 4. Federal Government infrastructure projects 14 4.1 Federal Projects - Railroad 15 4.2 Federal Projects - Airports 17 4.3 Federal Projects - Highways 20 4.4 Federal Projects - Ports 24 4.5 Federal Projects - Electric Power 29 4.6 Federal Projects - Oil and Gas 30 5. Midwest Region 32 5.1 Distrito Federal 35 5.2 Goiás 41 5.3 Mato Grosso 46 5.4 Mato Grosso do Sul 50 6. Northeast Region 55 6.1 Alagoas 58 6.2 Bahia 63 6.3 Ceará 67 6.4 Maranhão 76 6.5 Paraiba 78 6.6 Pernambuco 84 6.7 Piauí 90 6.8 Rio Grande do Norte 97 6.9 Sergipe 102 7. North Region 108 7.1 Acre 111 7.2 Amapá 114 7.3 Amazonas 117 7.4 Pará 123 7.5 Rondônia 127 7.6 Roraima 130 7.7 Tocantins 133 8. Southeast Region 142 8.1 Espírito Santo 145 8.2 Minas Gerais 151 8.3 Rio de Janeiro 156 8.4 São Paulo 162 9. South Region 171 9.1 Paraná 174 9.2 Rio Grande do Sul 179 9.3 Santa Catarina 183 10. Federal and State investment projections: 2021 – 2025 189 11. Proposals to accelerate investments in infrastructure 195 12. Appendix 199 13. Notes 200 14. Bibliography 201 1. PRESENTATION he Brazilian Association of Infrastructure and Basic Industries T (ABDIB) holds this year, in a virtual model, the ABDIB Forum 2020 - Experience Edition, an annual event already consolidated in the sector as one of the biggest infrastructure events in the country. It is a special year, as it is also celebrating the 65th anniversary of the Association. Especially for this ABDIB Forum 2020 - Experience Edition, a survey of unprecedented content of the infrastructure projects was carried out, which were consolidated in a single document called “Blue Book of Infrastructure”. These are attractive opportunities for investors that allow for an overview of the sector's prospects. This document will be the cornerstone of our event and the legacy of ABDIB in the year of its 65th anniversary. ABDIB, which for decades has sought to collaborate in promoting investments in infrastructure in the country, addressed in this document not only projects at the federal, regional and state levels, but also essential economic indicators for a better understanding of the bottlenecks that certain projects seek to solve. This document has an unprecedented character not only because of the level of detail in which the projects of the States are located, since it had the direct collaboration of several State secretaries, but also because it sought to enrich the economic and infrastructure data presented with projections of curves investments expected in the coming years for various infrastructure sectors in Brazil and regions. In addition, it also presents effective and short-term sectorial measures for the recovery of investments in the sector. These are opportunities in the sectors of energy, waterways, highways, railroad, ports, airports, sanitation, telecommunications and urban mobility that can be carried out as a concession or in the form of PPPs - public-private partnerships. There are also social infrastructure projects that are central to overcoming the country's problems. Investments in infrastructure are essential for the country to recover its path of economic growth, exploiting all its productive potential in the most diverse sectors of the economy. It is widely recognized that without quality education and strong infrastructure, it will be impossible for the country to reach the level of a productive and competitive economy. Infrastructure is the way to improve the population's quality of life and attract new investments capable of generating income and jobs. We wish you all a good reading. 3 2. A LOOK AT INFRASTRUCTURE fter 2014, investments in the economy and On the other hand, a point of concern refers to specifically in infrastructure have presented the country's fiscal trajectory. The government Alevels very far from the minimum levels for launched a wide range of emergency measures direct the country towards a growth path that will to support health and the economy, an important allow the generation of economic and social measure, but incompatible in the medium term development. with the fiscal rule of the spending ceiling in force in the country. Public investments in infrastructure, It is worth remembering that Brazil presented an categorized as discretionary expenditures, have average investment rate during the 2010-2014 suffered substantial declines in recent years, period of 20.5% of GDP. However, with the making it difficult to resume via a sector that has a recession that started in the second quarter of strong impact on the economy and generates tax 2014 and was until the end of 2016, the investment revenues. rate dropped significantly and in 2019 reached 15.4% in 2019. Against this backdrop that 2020, The infrastructure sector has a central role, since it promised as a year of recovery, ended up facing is the mainspring to reestablish the Brazilian an abrupt global crisis generated by COVID-19 economy by increasing the country's that cooled down the projections expected for competitiveness. However, data obtained by investment in the economy. Abdib reveal that, since 2014, the sector has been scrapped by cyclical and structural factors. As Despite this, on the one hand, despite the can be seen below, in total, investment in significant drop in economic activity noted at the infrastructure totaled R$ 123.9 billion in 2019, 31.3% end of March, several indicators point to the sense lower than the peak reached in 2014, of R$ 180.3 that economic activity began to recover from billion. The private share of investments in the May. At this point, the action implemented by the sector decreased by 17.8% between 2014 and federal government regarding emergency aid 2019 - a decrease from R$ 109.3 billion to R$ 89.8 had a substantial impact in containing the billion. In the same period, the public share fell damage caused by the pandemic, since it even more: 52.0%, from R$ 71.0 billion to R$ 34.1 appears to have accessed a substantial portion of billion. the income of informal workers and in vulnerable conditions. Graph 1 - Annual investment rate Source: IBGE 20.5% 20.6% 20.7% 20.9% 19.9% 17.8% 15.5% 15.0% 15.2% 15.4% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: IBGE GFCF/GDP 4 Graph 2 - Evolution of investments in Infrastructure (Constant values) Source: Abdib Note: Value at 2019 prices. It does not include the oil and gas sector. For 2020, expected data. 200.0 178.8 180. 3 180.0 167.8 157.2 151.3 160.0 145.8 140.0 128.0 122.5 120.1 123.9 109.6 109.3 120.0 99.3 82.2 96.0 100.0 101.1 80.0 82.6 79.9 90.0 89.8 60.0 40.0 71.0 63.6 61.2 68.5 69.2 50.2 20.0 39.9 40.2 38.0 34.1 0.0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Public Private In the table below, we can evaluate the investments per year (4.3% of GDP), for the next investments made vis-à-vis the amounts needed ten years, for the country to supply bottlenecks, to meet the investment needs in the sector. At mainly in the transport and logistics sectors, as well least R$ 284.4 billion is needed as in sanitation. Table 1 - Reality and need for investments in Infrastructure Source: Abdib Investments Investments REALIZED (2019) In % GDP NECESSARY In % GDP R$ billion R$ billion Transport/Logistics R$ 25.0 0.34 R$ 149.0 2.26% Electric Power R$ 51.4 0.71 R$ 55.4 0.84% Telecommunications R$ 33.1 0.46 R$ 50.0 0.76% Sanitation R$ 14.4 0.20 R$ 30.0 0.45% Total R$ 123.9 1.71% R$ 284.4 4.31% 5 Graph 3 - Infrastructure Stock as % of GDP 200 179 Source: ABDIB and Inter. B 180 160 140 120 100 82 85 87 76 80 80 71 73 64 57 58 58 60 36 40 20 0 USA Italy India Spain Brazil China Japan Africa Poland Canadá Germany South South Switerzeland United Kingdom The bottlenecks of infrastructure investments in recent transport sector. In energy and telecommunications, the years become even clearer when analyzing the capital State's contributions corresponded to 44% and 7% of the stock - that is, everything that has been invested in the total investments made in the period in question, sector. Currently, the indicator is at 36% of GDP, a level respectively. In Brazil, there is already a very significant far from that registered by other countries. In emerging private participation. The private sector has been economies, such as India and China, the level is 58% responsible in this decade for more than 60% of and 76% of GDP, respectively. investments in infrastructure, reaching 72% in 2019 (corresponding to R$ 89 billion). Considering the huge amount that Brazil needs to invest in infrastructure annually, it is necessary to take The PPI portfolio together with the technical excellence advantage of the capacity and potential of both the of the program has brought projects to the private public and private sectors. The contraction of public sector that arouse the appetite of investors. However, investment remains one of the biggest obstacles to the even if the private sector is able to quickly double the country's recovery since, as in the world, it provides a amount of annual investment, there will still be a gap of crowding-in movement with the private sector, enabling an equivalent amount to meet the country's immediate structural projects and establishing long-term planning.