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March, 2020 in the world

5th largest 9th largest economy: 5th largest population: land area: GDP USD 1.9 trillion 210.1 million people 8,515,767 km²

th 8 largest consumer One of the main global 4th largest FDI destination market: USD 1.2 trillion producers and exporters in 2019: USD 78.59 billion of iron ore, soy bean, Household consumption (44% of ’s animal protein, coffee, expenditure equals total FDI inflow) machinery and aircraft 63% of GDP

USD 1 = BRL 4.35 (February, 2020) Reforms The path for economic recovery

Pension Reform Administrative Infrastructure Tax Reform Reform Reform USD 200 billion to be saved in Streamlining civil Legal certainty, transparency Simplifying the tax system the next 10 years, limiting service to bring and predictability for domestic to boost economy privileges more efficiency and foreign investors Brazil’s Economic Recovery Ministry of Economy/Brazilian Central Bank data Recovery of Brazil’s Evolution of Brazilian Competitiveness in the global ranking 40º competitiveness 2016: PPI was launched 60º 72º • Global Economy: Brazil moved up from 75th place 75º 71º 81º 80º to the 71st on a global competitiveness list 80º 81º 78º comprising 141 countries. 100º • Infrastructure: Brazil moved up from 123rd place to 108º

the 78th. (Up 45 spots). 123º 120º 123º

140º Foreign Direct Investment (FDI) in Brazil increased 26% in 2019 (source: UNCTAD/ONU/2020) World Economic Forum Competitiveness Report Editions General Ranking Infraestructure Ranking source: PPI 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 .

. 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 Adds on efficiency and value to the process Ministries Unions 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 fees/Bonuses projects and projects USD 161.6 billion USD 31.5 billion 306 173 (R$ 703 billion) (R$ 137,1 billion)

USD 1 = BRL 4.35 (February, 2020) PPI in the world In 74 out of the 173 accomplished projects, foreign companies have been winners (alone or in consortium with Brazilian companies).

Brazil Italy Belgium Norway China Qatar France Switzerland Spain

Portugal USA Australia United Kingdom India Bermuda Germany Malaysia Canada PPI 2019 – Main Achievements 36 auctions were carried out in 2019

Investment Concession Expectations fees/Bonuses USD 103 bi USD 20.8 bi 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 • 3 in Cabedelo/PB (Auction 3/22) Lotex Regular Offer (Auction on 9/10) • 1 in Vitória/ES (Auction 3/22) 1 auction (10/22) Bonus: USD 5.05 million • 1 in Belém/PA (Auction 4/5) • 1 in Vila do Conde/PA (Auction 4/5) Concession Fee: USD 187.9 million • 1 in Santos/SP (Auction 8/3) Round 16 under the concession agreement (Auction 10/10) Highway Bonus: USD 2.04 billion 1 Terminal of paper pulp in Paranaguá/PR 1 auction (Auction 8/3) BR-364/365/GO/MG (Auction 9/10) Transfer of Rights Surplus (Auction 11/6) 1 Terminal of Solid Bulk in Santos/SP (Auction Investments: USD 473.5 million 8/3) Bonus: USD 16.07 billion Concession fee: lower toll fee (33% discount) Investments: USD 241.3 million Airports Round 6 Production Sharing Agreement - PSA (Auction 11/7) Concession Fee: USD 187.5 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 . /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 Concession Fee: USD 625.2 million Auction fee: lower power tariff Concession fee: USD 546.3 million Terminals in Belém/PA (5) Liquid Bulk – BEL02A; BEL02B; BEL04; Ports BEL08; BEL09 Terminals in Vila do Conde/PA (1) Liquid Bulk – VDC12

Terminals in Cabedelo/PB (3) Liquis Bulk – AI01; AE10 and AE11

Terminal in Vitória/ES (1) Liquid Bulk – VIX30

Port portfolio accomplished in 2019 Investment USD 241.3 million Terminals in Santos/SP (3) Liquid Bulk - STS13A Concession Fee USD 187.5 million Solid Bulk - STS20 Assessment (Terminal of Libra) – Leasings 13 STS14 Assessment 1 Terminal in Paranaguá/PR (1) Paper pulp – PAR01 Mining

1st auction on CPRM Mining Rights in the last 40 years

Polymetallic – + 29 CPRM projects, with spotted Palmeirópolis/TO deposits, with potential to go on auction.

Mining portfolio accomplished in 2019

Investment USD 58.6 million • Auction: Oct 21, 2019 Concession Fee USD 3.44 million • Winner: Perth Recursos Minerais Ltda. • Origin: Australia 1.71% of the gross Royalties revenue Airports Juazeiro Northeast do Norte Cluster Campina Grande

João Pessoa Sinop Recife Maceio Central Cluster Aracaju

Alta Floresta Varzea Grande Rondonopolis LegendaAirport Portfolio accomplished in 2019 Vitoria Investment USD 809 million Macaé Southeast cluster Aeroportos Concession(licitações) Fee USD 547 million Airports 12 Auction March 15, 2019 Oil and Gas Regular offer 45 blocks sold

Round 16 under the In 2019, in signing bonus, Brazil has concession agreement obtained an amount that equals 40% 12 blocks sold of all investments made in the sector in the world

Oil and Gas portfolio Signing Bonus + USD 19.30 billion Round 6 of PSA Regular Offer 1 block sold Expected Investments USD 96.38 billion (35 years) Auction on Petrobras Transfer of Rights Surplus 2 areas sold Energy

Energy portfolio accomplished in 2019 • Auction June 28, 2019 • 15 assets Auction A-4 • Investments: USD 436.7 million • Average discount: 45% • Auction October 18, 2019 • 91 assets Auction A-6 • Investments: USD 2.57 billion • Average discount: 33.73% • Auction on Dec 19,2019 A-4 new energy auction: lower tariff in • 12 lots photovoltaic energy offered in the Transmission • 2,470 km of TLs and 7,840 MVA in world (USD 15.5 MWh) Lines substations • Investments: USD 969.9 million • Discount: 60.3% USD 1.85 billion in investments in the Investments • USD 3.971 billion Northeast of Brazil (Auctions A-4 e A-6) Railway Port of Itaqui

The North-South Railway is the backbone of the Brazilian transportation system, which allows the Southeast to connect with the North and the Porto Northeast. Nacional The concession of the railroad mid section has Norte-Sul Porto Nacional/TO to been the 1st in this transportation mode in the last Estrela D’Oeste/SP 12 years. 1537 km Anápolis Railway portfolio accomplished in 2019

Investments USD 626.1 million Estrela •Expected: USD 311 million D’Oeste Concession fee •Effective revenue: USD 624.9 million •Surplus: 100.92% Port of Santos Bidders/ 1- VLI Multimodal Winner 2 - Rumo S.A. Auction March 28, 2019 18 Highway

Highway portfolio accomplished in 2019 GO Investments USD 473.5 million BR-364/365 GO/MG Road section between Jataí- Opex USD 576.9 million GO and Jataí Uberlândia-MG 1- Ecorodovias concessões e 437 km serviços S.A; Cachoeira Alta 2 - Silva & Bertoli Uberlândia Bidders/Winner empreendimentos e Participações Societárias Monte Alegre de Minas MG 3- Consórcio Way - 364/365VLI Multimodal

Auction September27, 2019

• Cap in the toll fee (bidding Auction Criterion notice): USD 1.61 (lower toll fee) • Winner toll fee: USD 1.07 • Reduction: 33,14% Scratch lottery – LOTEX

Concession fee / USD 187.98 million gov revenue

Consortium Estrela (IGT / SGI) • International Game Bidder and Technology (IGT) – Italy winner • Scientific Games International (SGI) – United States

Auction Oct/2019 Current PPI Portfolio Current PPI Project Portfolio

Ports – 28 Railways– 11 Supply – 5 Energy – 16 Policies: • “Sea road” - Cabotage 3 Privatizations 5 concession renewals 2 Privatizations 2 Transmission Lines Auctions • TRIIP (Road passenger 24 Port Terminals: 2 new concessions (CEASAMINAS and CEAGESP) 2 Privatizations ( and transport) 1 Waterway (Licensing) 4 investments in strategic 3 Fishing Terminals Nuclep) • PPP daycares railway networks (Cabedelo, Belém e Manaus) 7 Licensings • PPP prisions + correctional Defense and Security 1 Partnership (Angra 3) facilities (PPP’s) - 2 Airports – 22 National Parks and 2 Existing Energy Generation • Universalizing basic 1 Air force Forests - 9 (A-4 e A-5) sanitation + solid waste Communications 22 airports in 3 clusters 2 New Energy Generation (A-4 • PPP street lightening and A-6) • The “projects factory” 1 Police Communications 6 concessions of parks (Lençóis Maranhenses, Iguazu Waterfalls, • Tourism Economy – 5 Highways – 19 Jericoacoara, Aparados da Mining – 5 • UBS (health basic units) Serra/Serra Geral, Canela e São • BidSim – Oil Auctions 10 Concessions Francisco de Paula) 4 CPRM Mining Rights 5 Privatizations (The Mint, 2 Feasibilty assessments 3 concessions of forests ANM Available Areas ABGF, EMGEA, Serpro and (11,350 km) (Humaitá, Iquiri and Castanho) Dataprev) 7 Licensing processes Communications and 133 Regional Development – 4 Technology – 5 Oil and Gas – 1 Health – 1 3 Assessments for Privatization projects H 2 privatizations (CBTU and (Telebras, National Post, and EBC) Round 17 under the 1 Assessment (Hospital Trensurb) 1 Privatization (Ceitec) concession regime Fêmina/) 2 assessments (PISF and Irrigation 1 concession (5G) +12 Irecê) Policies Boa Vista Airports São Luiz Tabatinga Manaus Imperatriz Tefé

Cruzeiro Teresina do Sul Porto Velho Petrolina Rio Branco Palmas Central Block

North Cluster Goiânia 7.3 million Passengers/year USD 494.2 milion in investments 4.4 million Passengers/year USD 386.2 million in investments Londrina

Curitiba Foz do Iguaçu Bacacheri

Navegantes South 22 Airports (3 clusters) : Round 6 Joinville Block Uruguaiana 12 million Passengers/year Investments USD 1.54 billion Bagé Pelotas USD 666.6 million in investments Railways EFC 892 km Ferrogrão Sinop/MT to Miritituba/PA 933 km FIOL New Ilhéus/BA to concessions Caetité/BA FCA 537 km 7,215 km FICO Mara Rosa/GO to EFVM Água Boa/MT 895 km 383 km MRS 1,686 km Railways Portfolio USD 11.54 billion Malha Investments • new – USD 2.44 billion Paulista • renewal – USD 9.1 billion 1,989 km 14,530 Km: Total Length • new – 1,470 km • renewal – 13,060 km Railways

• Ferrogrão – Grain Railway EF-170/MT/PA • West-East Integration Railway (FIOL) Section between Sinop/MT and Miritituba/PA Section between Ilhéus/BA and Caetité/BA Length: 933 km, plus the sections of Santarenzinho (32 km) – Length: 537 km and Itapacurá (11 km) – It will allow the iron ore produced in the Caetité/BA region New railway corridor to export grains through the North and the grain output of the West of Bahia to be exported region, which aims at improving the outflow of the through the South Port, a port complex to be built close to Midwest agribusiness output by connecting it to the port the city of Ilhéus/BA. In the future, it is also possible to of Miritituba, in the state of Pará. establish a connection between the South Port and the North-South Railway (FNS). Estimated cargo: 38.3 million tons in 2030 and 46.8 million tons in 2050 – Estimated cargo: 11.8 million tons in 2023 and 15.8 million tons in 2053 Concession period: 65 years – Estimated investment: USD 758,5 million, out of which Estimated investment : USD 1.67 billion USD 367,7 million are earmarked to accomplish the works IRR: 11.04% – IRR: 11.04% BR-163/MT e BR-230/PA Section between Sinop/MT Highways and Miritituba/PA BR-158/MT/PA Ribeirão Cascalheira/MT e Marabá/PA

BR-153/080/414/GO/TO Section between Anápolis/GO and Aliança do /TO

BR-116/493/RJ/MG (CRT) 18,870 km Road section of BR-116/RJ Section between Além Paraíba/RJ and BR-040/MG

Concession of 8,200 km BR-381/MG e BR-262/MG/ES of highways Road Section of BR-381/MG between Belo Horizonte/MG and Gov. Valadares/MG New bidding Road section of BR-262/MG/ES between BR-040/DF/GO/MG João Monlevade/MG and Viana/ES Section between Brasília/DF and Juiz de Fora/MG BR-040/495/MG/RJ (Concer) Highways Portfolio Section between Juiz de Fora/MG and /RJ Investment USD 35.2 billion Integrated Highways in Paraná BR-116/465/101 /SP/RJ (Dutra) Concessions 4,515 km Section between Rio de BR-470/282/153/SC Janeiro/RJ and São Paulo/SP Assessments 13,424 km Section between Navegantes/SC and the New bidding 936.7 km frontier of RS/SC Highways – next auctions (2020)

Highway Length Capex (US$) Auction BR-153/080/414/GO/TO 850 km 1.73 billion 2020/Q4 • Road section from Anápolis/GO to Aliança do Tocantins/TO BR-381/MG e BR-262/MG/ES • Road section of BR-381/MG from Belo Horizonte/MG to Gov. Valadares/MG 672 km 2.09 billion 2020/Q4 • Road section of BR-262/MG/ES from João Monlevade/MG to Viana/ES BR-163/MT e BR-230/PA 970km 388.4million 2020/Q4 • Road section from Sinop/MT to Miritituba/PA BR-116/465/101 /SP/RJ (Dutra) 598.5 km 3.90 billion 2020/Q4 • Road section from Rio de Janeiro/RJ to São Paulo/SP Santana/AP (1) Vila do Conde/PA (1) Liquid bulk Liquid and solid bulk Ports Itaqui/MA (4) Liquid bullk Terminal in Fortaleza/CE Passengers

Maceió/AL (1) Liquid bulk

Aratu/BA (2) Solid bulk

Paranaguá/PR (3) Vehicles Port of Vitória/ES - CODESA General cargo Liquids Port of São Sebastião/SP Ongoing Ports portfolio Terminals in Santos/SP (3) Investments USD 3.25 billion General Cargo/Celullose Liquid bulk/fuel Portleasings 16 Port of Santos/SP – CODESP Port privatizations 3 Projects for Privatizing Public Ports

Port of Santos/SP (CODESP)

Current stage: Planning

Assessments delivery and approval:

2021/Q2

Public Hearing: 2021/Q2

Investments: USD 2.41 billion

Port of Vitória/ES (CODESA) Port of São Sebastião/SP Current stage: Assessments Current stage: Planning Bidding Notice: 2020/Q4 Bidding Notice: 2021/Q1 Auction: 2021/Q2 Auction: 2021/Q2 Investments: USD 229.8 million Investments: USD 132.1 million 29 29 Mining Kaolin - Rio Capim/PA

Phosphate - Miriri/PB

Copper - Bom Jardim/GO

Mining legal rights

Investments USD 72.8 million

20,000 ANM available areas Coal - Candiota/RS Oil and Gas Round 17 Potiguar Basin

General features Campos Basin Capacity 96 blocks (offshore) Potiguar, Campos, Santos Basin Basins (4) Santos and Pelotas Bidding Notice (estimated) 2020/Q2 Pelotas Basin Energy

Energy portfolio Partnership to accomplish USD 3.98 billion Angra 3 Existing Energy Generation USD 2.15 billion* (A-4 e A-5) Nuclear Power Plant New Energy Generation USD 2.98 billion* of Angra 3 (A-4 e A-6) Transmission (nº 1/20 and Transmission nº 1/20 * USD 2.29 billion nº 7/20) Total USD 11.44 billion

* Estimated Angra 3 Thermonuclear Power Generation

Basic features: • Site: Angra dos Reis/RJ • 67.1% of civil works have been accomplished • Expected investments for accomplishing the works: USD 4 billion • Current stage: The Resolution which has qualified Angra 3 in PPI has established an Interministerial Committee through the Decree 9915/2019 to assess the most economically feasible model for the Plant. • Assessments concluded in January/2020. Eletrobras - Brazilian Power SOE

Bill Nº 5877/2019 establishes guidelines for privatization by capitalization Privatization model: increasing social equity by issuing common shares BNDES was assigned to coordinate assessments Some data about the company Power generation capacity: 46,856 GW Generators (total): 233 units, out of which: Hydropower plants : 47 units Thermoelectric plants: 114 units Wind power plants: 69 units Solar power plant: 1 unit Transmission Lines: 70,201 Km Current Federal Government shareholding: 51% of common shares (with voting rights) Federal Government participation in the total equity (common shares + preference stocks) : 40.98% Auction on 5G technology (one of the largest in the world)

• Regulatory Agency in charge: ANATEL General outline of the project • Preliminary investment estimates + concession fees: USD 4.6 billion Essential for developing internet of • Schedule for bidding notice and auction: 2020 / Half 2 things (IoT), industry 4.0, • Public hearing is open from February to the end of March autonomous vehicles, smart cities and precision agriculture. • Contract Term: 10 to 15 years (depending on the band) For there is urgent need for building and/or modernizing the 700 MHz 2,3 GHz 3,5 GHz 26 GHz current telecom network 20 MHz 90 MHz 400 MHz 3200 MHz infrastructure, with possibility of

Wide coverage Low coverage and Low coverage and Very low coverage and billionaire investments in the and low capacity high capacity high capacity highest capacity sector. Everything available for 4x mobile services PISF – Project for integrating São Francisco river into the water basins in the north part of the NE region

Basic features: • The PISF main goal is to increase water security in the inward basins in the north part of the Northeast region, which face a dire situation of water vulnerability • The North Axe has 96% of accomplishment and the East Axe 98% • 390 cities and 12 million people will benefit from the PISF • Investment of USD 2.75 billion • Operational costs are estimated in USD 114.91 million per year Brief overview: • The project, which has been structured in 2 main axes of water transfer – North and East axes – and connected branches, aims at solving the dire circumstances of water shortage in the north part of the Northeast region. It will provide water security to many areas in the states of CE, PB, PE and RN, which will take advantage of significant water transfer from the river São Francisco basin. Interventions: 477 km of canals; 9 pumping stations; 27 reservoirs; 4 tunnels; 13 aqueducts; 9 substations of 230 kV; 270 km of high voltage transmission lines

Qualification model: Assessments for accomplishing the works and eventually operating and managing the concession

Deadline for assessments: December, 2020 Irrigation Perimeter in Irecê/BA - alternatives for partnerships

• Started works: 2 stages in operation, out of 9 • Project surface: 47,924 hectares for irrigation • Entitled municipalities: Xique-Xique and Itaguaçu da Bahia, where 58,000 people live – Central Region of the state of Bahia –River São Francisco Basin • Project designed for exploiting irrigated agriculture, based upon tropical fruit crop and grain output (soybean, corn and beans) • Potential for producing 16,000 tons of fruit and 83,000 tons of grains per year, only in stages 1 and 2 • Employment generation: 120,000 direct and indirect employments (9 stages) • Estimated Annual Gross Production Value (VBP): USD 114.91 million/year • Investments already made: USD 229.8 million (Pumping station of 10.5 m³/s and 42 km of canals, among others) • Goals: - Accomplishing infrastructure works (canals and water pumping stations) in stages 2 to 9, and operating and maintaining the Infrastructure for shared usage (stages 1 to 9) of the project. • Management: Adopting a new institutional model for exploiting irrigated perimeters based on greater participation of the private sector in operating and maintaining the infrastructure for shared and exploiting wet and dry areas. National Parks National Park of Lençóis Maranhenses (MA)

National Park of Jericoacoara (CE)

National Park of Iguazu Waterfalls (PR)

National Park of Aparados da Serra (RS) and Serra Geral (SC) Forests for recreation

Canela (RS)

São Francisco de Paula (RS) Fishing Terminals

Common features of the projects: A Public Fishing Terminal (PFT) is the structure necessary for fish handling and storage activities, trading post, fish processing and support for vessel navigation. Making PFTs operational is crucial for the provision of an adequate phytosanitary environment, and therefore for the development of the fish industry.

The PFT area can include facilities such as anchorages, docks, wharves, berthing bridges and piers, cold storage warehouses, buildings and infrastructure for protection and waterway access.

3 Qualified Projects: Cabedelo/PB, Belém/PA e Manaus/AM Concession of forests Brazil has the largest tropical forest and the The National Forests of Iquiri, Humaitá and 2nd largest forest area Gleba Castanho, all in the State of Amazonas, Gleba Castanho in the world !!! have been qualified at the 12th meeting of the PPI Council – Status of national priority. Floresta Nacional de Payments to the Federal Government by the Floresta Nacional Humaitá concessionaires are destined to the states de Iquiri and municipalities where the forests are located, to the National Fund for Forestry Development and to ICMBio - Chico Mendes Institute for Biodiversity Conservation.

Computerized system for managing concession contracts. Procedural manuals for sustainable management.

Greater preservation of forests, less deforestation, less fires, greater control and a better fight against illegal activities. THE STAGES OF A FOREST CONCESSION Preliminary estimates: PrivatizationsUSD 14 billion Assessments ENVIRONMENTAL LICENSING

• Brazil is the most biodiverse country on Earth and that implies a major responsibility. • It counts upon a strong legal framework, which comprises a specific chapter about environmental licensing enshrined in the 1988 Federal Constitution. • before the Constitution, Brazil had already established an Environment National Policy (1981), which is still in force. • The main purpose of the policy is making social, economic development compatible with preserving environment quality and ecological balance. • Environmental licensing is a core tool to control and is required for carrying out any activity deploying environmental resources, that, effectively or potentially, bring about environmental degradation Tocantins Waterway Rock Dredging TL Manaus – Supporting Boa Vista BR-135/MA Shale Gas environmental BR-319/AM/RO Fracking licensing and BR-242/MT BR-158/MT expropriation BR-135/BA/MG

BR-080/MT

Hydropower Plants • Castanheira – MT • Telêmaco Borba – PR • Tabajara – RO • Bem Querer – RR • UHE Formoso – MG The challenge of universalizing basic sanitation

Goals • In Brazil, a population similar to Canada’s has no access to proper water • More than 100 million have no access to sewage removal and treatment • Investments needed in partnerships with the private sector and subnational level bodies (an estimate of USD 138 to USD 160 billion in investments ) • Structuring bankable projects to provide proper services to Brazilians PROJECTS IN MUNICIPALITIES – FEP CAIXA

TOTAL

Projects: 20 CAPEX: US$ 79.79 mi Cities: 38 OPEX: US$ 271.26 mi Entitled Population: 7.48 mi

Public calls: RN • Street Lightening (program Em Frente, Brasil) – in progress (01/06/2020 to 03/06/2020) • Solid Waste (Consortia) – Coming soon

Supporters:

In charge:

*Valores previstos de CAPEX e OPEX PROJECTS IN MUNICIPALITIES – FEP CAIXA – SOLID WASTE

% Previsão UF Contratante Municípios Projects: 4 CAPEX: US$ 79.79 mi executado de Leilão Cities: 22 OPEX: US$ 271.26 mi SPBauru 602020 Entitled Population: 1.77 mi Consórcio COMARES - Altaneira, Barbalha, Caririaçu, Crato, Farias CE Estado Ceará 31 2020 Brito, Jardim, Juazeiro do Norte, Missão Velha, Nova Structuring guidelines Olinda e Santana do Cariri • Recovering costs based on tariffs, joint water-sewage- Consórcio CONVALE - waste removal Uberaba, Conceição das Alagoas, Sacramento, Delta, • Ordinary concessions Nova Ponte, Santa Juliana, MG Consórcio CONVALE 44 2020 Planura, Campo Florido, • Scope - divisible services Conquista, Pirajuba, • Incentives for selective removal and inclusion of waste Veríssimo, Comendador Gomes e Água Comprida pickers • Enabling mechanisms for energy recovery and biogas PITeresina 582020 capture Supporters: • Reduction of waste disposal • Development of a regulatory model for the sector in partnership with AFD / Expertise France and ABAR In charge:

*Valores previstos de CAPEX e OPEX PROJECTS IN MUNICIPALITIES – FEP CAIXA – STREET LIGHTENING

% Previsão Projects: 12 CAPEX: US$ 122 mi UF Município executado de Leilão Cities:12 OPEX: US$83mi PA Belém* 70 2020 Entitled Population: 5.2 mi SP Franco da Rocha* 74 2020 ES Cachoeiro de Itapemirim 39 2020 Structuring guidelines RS Sapucaia do Sul* 77 2020 SE Aracaju* 77 2020 Administrative PPP SP Campinas* 68 2020 Range: modernizing, expanding, operating and BA Feira de Santana* 77 2020 BA Camaçari* 68 2020 maintaning the grid PR Toledo 0 2021 Energy efficency and less impact to the environment MS Corumbá 4 2020 Investment in the short-term, up to 3 years MG Patos de Minas 0 2021 Telemanagement in 20% of the grid on average (main BA Barreiras Não iniciado lines) CE Crato Não iniciado GO Senador Canedo Não iniciado BA Alagoinhas Não iniciado Supporters: GO Valparaíso de Goiás Não iniciado

* 7 projects supported by the IFC/World Bank set a In charge: public call in Feb/20 *Valores previstos de CAPEX e OPEX PROJECTS IN MUNICIPALITIES – FEP CAIXA – SANITATION Sewage Projects Entitled Population Cities CAPEX OPEX Structuring guidelines 3 0.49mi 3 US$ US$ 137.2mi 67mi • Recovering costs based on tariffs and a joint payment for water-sewage-waste treatment % Previsão • Ordinary concessions UF Município executado de Leilão • Energy efficiency in sewage treatment stations CE Crato 34 2020 stations Incentives to technology innovation RJ Volta Redonda Não iniciado RN São Gonçalo do Amarante Não iniciado

Integrated sanitation – water, água, sewage and urban Supporter: solid waste Projects Entitled Population Cities CAPEX OPEX In charge: 1 0.02mi 1 11.5mi 67mi

% Previsão UF Município executado de Leilão GO São Simão 50 2021 *Valores previstos de CAPEX e OPEX Project in : Water and sewage common concession by the state-level government in 22 cities

R$ mil Foreseen investments 200.000 CAPEX 180.000 160.000 • USD 304.5 million 140.000 • USD 98.8 million in 5 years 120.000 100.000 Water 80.000 • USD 97.6 million 60.000 • USD 55.6 million in 5 years 40.000 20.000 Sewage - • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 USD 206.8 milion • USD 43.2 million in 5 years Água Esgoto

Water Sewage Currently: 65.4% of urban service coverage Currently: 19% of sewage removal 60% of losses in distribution 19% of sewage treatment Project: 98% of coverage in maximum 5 Project: 95% of coverage in maximum 12 years years Project in Amapá: Water and sewage common concession by the state-level government in the urban areas of 16 cities

R$ mil Foreseen investments 400.000 350.000 CAPEX 300.000 • USD 95.84 billion 250.000 • USD 241.3 million in 5 years 200.000 Water 150.000 • USD 275.8 million 100.000 • USD 94.92 million in 5 years 50.000 Sewage - • USD 680.3 million 1 2 3 4 5 6 7 8 9 1011121314151617181920212223242526272829303132333435 • USD 148.2 million in 5 years Água Esgoto

Water Sewage Currently: 40% of of urban service coverage Currently: 13% of sewage removal 65% of losses in distribution 13% of sewage treatment Project: 98% of coverage in maximum 9 years Project: 95% of coverage in maximum 19 years Project in Alagoas: concession for supplying water and sewage services in the metropolitan area of Maceió-AL.

R$ mil Foreseen investments 450.000 400.000 350.000 CAPEX 300.000 • USD 588.4 million 250.000 Water 200.000 • USD 351.6 million 150.000 100.000 • USD 196.5 million in 5 years 50.000 Sewage 0 • USD 236.7 million 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 • USD 124.8 million in 5 years Água Esgoto

Water Sewage Currently: 69.5% of total water supply coverage Currently: 17.6% of sewage removal 43.7% of losses in distribution 17.6% of sewage treatment Project: 100% of coverage in maximum 6 years Project: 90% of coverage in maximum 16 years Project in Rio de Janeiro

Concessionaries Engaged area Scope Cluster 1 • Water production in 51 AP 2.1 + 40 cities cities; Scope • Water distribution in 64 Cluster 2 • Capturing and Treating water - 13 cities AP 4 + 7 cities cities in the MA, with operation in • Sewage removal and big systems: Guandu, Imunana- Cluster 3 treatment AP 5 + 8 cities Larajanjal, Lajes • Business management • Cluster 4 • Rewarded by users tariffs Selling treated water to AP 1, 2.2 e 3 + 8 cities concessionaries

Proposed model • Concession by clusters for distributing water. Sewage removal and treatment will be provided by a private company. • Cedae Upstream is responsible for capturing and treating water in 13 cities of the MA. Operation in the big systems of Guandu, Imunana-Laranjal, Lajes and Acari. Rio de Janeiro - Foreseen investments R$ mil

CAPEX • USD 7.46 billion Water • USD 2.73 billion • USD 643.5 million in 5 years Sewage • USD 4.75 billion • USD 1.17 billion in 5 years

Water Sewage Currently: 87% of total water supply coverage Currently: 44% of sewage removal 34% of losses in distribution 29% of sewage treatment Project: 100% of coverage between 8 and 14 Project: 90% of coverage between 15 and 20 years years Supporting Subnational level Partnerships Prisions • Pilot projects singled out for structuring: SC and RS states • BID, BNDES and the Ministry of Justice support the PPP’s structuring • In final stage: Terms of Reference for hiring assessments • Private partner is responsible for building, maintaining and operating up to 35 years, with standards to meet in quality of service, qualifying offer and work for prisioners Correctional Facilities • Pilot projects singled out for structuring: SC and MG states • CAIXA and UNOPS (UN) support the PPP’s structuring • Private partner is responsible for building, maintaining and operating up to 35 years, with standards to meet in quality of service, training and qualification offer Supporting Subnational Level Partnerships Daycares • PPI, the Ministry of Education and BNDES are prospecting for Pilot Projects with states and municipalities • 1st pilot project for PPP in daycare singled out in Teresina (PI) (40 unities). • Private partner is responsible for accomplishing the civil works, equipping, maintaining ad operating up to 35 years, with standards to meet in quality of service • Public partner responsible for pedagogical planning, selection of children served, monitoring and inspection of contracts and goals. Assessments for partnerships

Basic Health Units (BHUs) • There are 4,273 BHUs with works in progress or to be executed throughout Brazil • 3,157 BHUs are paralyzed or with external signs of paralysis • PPI, the Ministry of Health and BNDES are prospecting for Pilot Projects in states and municipalities. • Private partner is responsible for the completion of works / construction, equipment, maintenance and operation for up to 35 years, with targets for quality of service. • Public partner is responsible for planning, monitoring and inspection of contracts and goals. Tourism Policy to attract private investments to the tourism sector

Goal • Qualification of the policy for attracting private investments to the tourism sector, involving assessments of partnerships for the establishment of new enterprises and for the tourist use of cultural and natural assets in Brazil. • The purpose is to seek regulatory alternatives to foster and promote the implementation of private investments in the sector, to provide legal certainty and priority to investments, as well as to analyze the socioeconomic impacts of these alternatives. Creation of Interministerial Committee (180 days): • Members of the Ministry of Tourism, Economy, Executive Office and Government Secretariat. • Participation of the Federal Heritage Secretariat, IPHAN and BNDES. UPCOMING EVENTS NEXT PPI AUCTIONS (2020)

Port PPP – Defense

Passenger Terminal in Fortaleza/CE Existing energy generation A-4 and Management of the integrated A-5 communication network of COMAER – Air force command

Investments (CAPEX + OPEX): USD Investments: USD 2.15 billion* Investments: USD 354 M 23 M Bonus: lowest selling price Bonus: lowest monthly Bonus: biggest bonus consideration Auction on March 27 Auction on April 30 Auction on May 28

* Estimated PPI auctions scheduled for 2020 (85 assets) 2020 / Half 1 2020 / Half 2 Airports – Round 6 Mining Rights (2) Highways (4) 22 airports in 3 clusters • Copper - Bom Jardim de Goiás • BR-153/080/414 (GO/TO) • North 1 Cluster (GO) • BR-381/262 (MG/ES) • South Cluster • Phosphate - Miriri (PB) • BR-163/230 (MT/PA) • Central Cluster • BR-116/465/101 (RJ/SP) – President Dutra Mining Rights (2) Ports (6) Energy/Generation (3) • Coal- Candiota (RS) Railways (3) • 1 in Fortaleza /CE • Existing Energy Generation A-4 • Kaolin - Rio Capim/PA • Ferrogrão (MT/PA) • 4 in Itaqui/MA and A-5 • FIOL (BA) • 1 in Paranaguá/PR • New Energy Generation A-4 Parks and Forests (7) • Renewal MRS • Lençóis Maranhenses (MA) • Jericoacoara (CE) Energy (4) • Iguazu (PR) • Angra 3 (RJ) • Aparados da Serra (RS) and Railways (3) • New Energy Generation A-6 Serra Geral (SC) • Renewal SP network • Transmission nº 1/20 and nº 7/20 • Canela (RS) • Renewal EFVM Fishing Terminal (1) • São Francisco de Paula (RS) • Renewal EFC • Cabedelo (PB) • Floresta de Humaitá/AM Port Terminals (7) Privatizations (4) PPP – Defense (1) • 2 in the Port of Aratu/BA EMGEA; ABGF; Casa da Moeda; • Managing the • 1 in the Port of Paranaguá/PR Eletrobras integrated • 2 in the Port of Santos/SP communication • 1 in the Port of Maceió/AL Oil and Gas (1) • network of COMAER – Subnationals (2) • 1 in the Port of Santana/AP Round 17 of concession regime Air force command • Concessions of Solid Waste (SP e Subnationals (12) PI) •9 Concessions of Street Lightening (PA, ES, RS, SE, MS, 2 in SP and 2 in BA) •Auction on 5G technology •1 Sanitation (CE) • 2 Solid Waste (CE e MG) www.ppi.gov.br fb.com/ppinvestimentos @ppinvestimentos @ppinvestimentos linkedin.com/company/ppinvestimentos