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. July, 2021 Brazil in the world 5th largest 11th 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 15th, 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 Central Bank of Brazil (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 1 auction 36 Auctions carried out in 2019 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 Airports 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 625.2 million Investments: USD 3.97 billion Investments: USD 809 million 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 – Minas Gerais 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