MDR
STRATEGIC VISION ATTRACTION OF PRIVATE CAPITAL FOR REGIONAL DEVELOPMENT INITIATIVES
STRATEGIC VISION OUR MISSION
Reduce regional inequalities, stimulate sustainable local clusters, harness the potential of Brazilian river basins and create jobs: these are some of the missions of the Ministry for Regional Development (MDR) of Brazil under the administration of President Jair Bolsonaro. To fulfill these missions, MDR currently has a portfolio of about 21 thousand construction works, spread over more than 90% of the 5570 Brazilian municipalities. These are numbers that express both the scale of the challenge and the immense potential of the Ministry’s initiatives. The Brazilian Government is fully aware that these construction works and the new ones that will be necessary to meet the growing demand will only be possible with the participation of private capital. This is the reason why the Ministry for Regional Development is committed to building a project portfolio that is attractive for the private sector, while also guaranteeing that the population has access to public services of quality – even under the post-COVID economy. This document aims to present an overview of the priority areas that are under the competence of the Ministry of Regional Development for investor participation. ATTRACTION OF PRIVATE CAPITAL FOR REGIONAL DEVELOPMENT INITIATIVES
STRATEGIC VISION
FEDERAL GOVERNMENT TIMELINE MEASURES TO INCREASE PRIVATE CAPITAL PARTICIPATION IN REGIONAL DEVELOPMENT INITIATIVES
COMMITMENTS TO PRIORITY AREAS FOR INTERNATIONAL PRIVATE CAPITAL REQUIREMENTS FOR PARTICIPATION IN REGIONAL INVESTMENTS TO ATTRACT DEVELOPMENT INITIATIVES PRIVATE CAPITAL TO REGIONAL DEVELOPMENT ENVISAGED MODELS FOR INITIATIVES PRIVATE CAPITAL PARTICIPATION IN REGIONAL DEVELOPMENTO INITIATIVES FEDERAL GOVERNMENT MEASURES TO INCREASE PRIVATE CAPITAL PARTICIPATION IN REGIONAL DEVELOPMENT INITIATIVES
Elaborate Studies to Preparation and Access Green Financing Enactment of Updated In the domestic arena, Mechanisms Regulatory Frameworks the government is committed to studying experiences learned and best international practices, incorporating them in the regulatory frameworks.
Restructuring and Modernizing Mechanisms Creation of Regional for Attracting National and Offices to Structure International Financial Projects Resources FEDERAL GOVERNMENT MEASURES TO INCREASE PRIVATE CAPITAL PARTICIPATION IN REGIONAL DEVELOPMENT INITIATIVES
New Regulatory New Bidding Law Framework for Sanitation (Bill 1292/1995) (Bill 3261/19)
Modernization of Regulatory Frameworks
General Law of Brazilian Charter for Smart Concessions, PPP and Cities Public Consortia (Public Consultation) (Bill 7063/17) ATTRACTION OF PRIVATE CAPITAL FOR REGIONAL DEVELOPMENT INITIATIVES
STRATEGIC VISION
FEDERAL GOVERNMENT TIMELINE MEASURES TO INCREASE PRIVATE CAPITAL PARTICIPATION IN REGIONAL DEVELOPMENT INITIATIVES COMMITMENTS TO PRIORITY AREAS FOR INTERNATIONAL PRIVATE CAPITAL REQUIREMENTS FOR PARTICIPATION IN REGIONAL INVESTIMENTS TO ATTRACT DEVELOPMENT INITIATIVES PRIVATE CAPITAL TO REGIONAL DEVELOPMENT INITIATIVES ENVISAGED MODELS FOR PRIVATE CAPITAL PARTICIPATION IN REGIONAL DEVELOPMENTO INITIATIVES COMMITMENT TO INTERNATIONAL BEST PRACTICES FOR ATTRACTING PRIVATE INVESTMENT
Recent international benchmarks on promoting quality investment are being studied and incorporated. Here are some examples of benchmarks that are being taken into consideration
GOVERNANCE LEGAL FRAMEWORK Private Sector Participation in Water Infrastructure: OECD • Recommendation of the OECD Council on Principles for Private Checklist for Public Action (2009) Sector Participation on Infrastructure (2007) Recommendation of the OECD Council on Principles for Public • G20 Leading Practices on Promoting and Prioritizing Quality Governance of Public Private Partnerships (2012) Investment (2014) OECD Framework for the Governance of Infrastructure (2016) • Recommendation of the OECD Council on Policy Framework Public Private Partnerships for Transport Infrastructure: for Investment – PFI (2015) Renegotiation and Economic Outcomes (2017) • G20 Principles for Quality Infrastructure Investment (2019)
DEVELOPMENT FINANCING OECD Checklist for Foreign Direct Investment Incentive Policies G20/World Bank Practical Solutions and Models for Addressing • (2003) Obstacles to Institutional Investment in Infrastructure in G20/OECD High Level Principles of Long-Term Investment Developing Countries (2014) • Financing for Institutional Investors (2013) G20 Principles of MDBs’ Strategy for Crowding-in Private Sector • G20/OECD Checklist on Long Term Investment Financing Finance for growth and sustainable development (2017) Strategies and Institutional Investors (2014) OECD Making Blended Finance Work for the SDGs (2018) • World Bank/OECD Project Checklist for Public-Private Partnerships (2015) PLANNING AND PRIORITISATION • Recommendation of the OECD Council on Effective Public World Bank: An Alternative Approach to Project Selection - The Investment Across Levels of Government (2014) Infrastructure Prioritization Framework (2016) • G20/OECD Effective Approaches to Financial Instruments for Multilateral Development Banks APMG Public-Private Partnerships Infrastructure Financing (2015) Certification Program COMMITMENT TO INTERNATIONAL BEST PRACTICES FOR ATTRACTING PRIVATE INVESTMENT
The main elements of the international best practices are being taken into consideration in the elaboration of new regional development initiatives.
Attention to Financial Guarantee of most recent Engineering in Group of international Providing Legal Accordance Modern Profitability and National and investment Quality Public Certainty for with the Most Project Predictability for International certificates Services to Investors Current Governance Private Capital Institutional (ESG, SRI, the Principles of Partners People-First Blended Population Public Private Partnership) Finance ALIGNMENT WITH GLOBAL TRENDS OF DIGITAL TRANSFORMATION
Brazilian Charter for Smart Cities Document containing the national strategy for smart cities Will be Launched in July 2020 (Under Public Consultation)
Collaborative process PRO-Cities / FGTS With municipal, state and federal Modernization actors, private initiative Urban Technology MCTIC PARTNERSHIP - CITIES CHAMBER 4.0 ATTRACTION OF PRIVATE CAPITAL FOR REGIONAL DEVELOPMENT INITIATIVES
STRATEGIC VISION
FEDERAL GOVERNMENT TIMELINE MEASURES TO INCREASE PRIVATE CAPITAL PARTICIPATION IN REGIONAL DEVELOPMENT INITIATIVES COMMITMENTS TO PRIORITY AREAS FOR INTERNATIONAL PRIVATE CAPITAL REQUIREMENTS FOR PARTICIPATION IN REGIONAL INVESTMENTS TO ATTRACT DEVELOPMENT INITIATIVES PRIVATE CAPITAL TO REGIONAL DEVELOPMENT INITIATIVES ENVISAGED MODELS FOR PRIVATE CAPITAL PARTICIPATION IN REGIONAL DEVELOPMENT INITIATIVES ENVISAGED MODELS FOR PRIVATE CAPITAL PARTICIPATION IN REGIONAL DEVELOPMENT INITIATIVES
TRADITIONAL MODELS WITH MODERN GOVERNANCE AND FINANCIAL ENGENEERING
PUBLIC PRIVATE MUNICIPAL PERMITS PRIVATE PROJECTS’ FINANCING CONCESSIONS PARTNERSHIP (PPP) CONSORTIUMS FOR PPP THROUGH GOVERNMENTAL FUNDS – Funds for Regional Development ATTRACTION OF PRIVATE CAPITAL FOR REGIONAL DEVELOPMENT INITIATIVES
STRATEGIC VISION
FEDERAL GOVERNMENT TIMELINE MEASURES TO INCREASE PRIVATE CAPITAL PARTICIPATION IN REGIONAL DEVELOPMENT INITIATIVES COMMITMENTS TO PRIORITY AREAS FOR INTERNATIONAL PRIVATE CAPITAL REQUIREMENTS FOR PARTICIPATION IN REGIONAL INVESTMENTS TO ATTRACT DEVELOPMENT INITIATIVES PRIVATE CAPITAL TO REGIONAL DEVELOPMENT INITIATIVES ENVISAGED MODELS FOR PRIVATE CAPITAL PARTICIPATION IN REGIONAL DEVELOPMENT INITIATIVES PRIORITY AREAS FOR PRIVATE CAPITAL PARTICIPATION IN REGIONAL DEVELOPMENT INITIATIVES
DEVELOPMENT OF WATER BASINS HOUSING
URBAN WATER DEVELOPMENT
SANITATION AND PUBLIC LIGHTNING SOLID WASTE
PRODUCTIVE DEVELOPMENT URBAN MOBILITY W A PRIORITY AREAS T DEVELOPMENT OF WATER BASINS SANITATION AND SOLID WASTE TREATMENT
E PRODUCTIVE DEVELOPMENT - IRRIGATION AND R LOCAL CLUSTERS DEVELOPMENT OF WATER BASINS
CONSTRUCTIONS ON PRESERVATION, CONSERVATION WATER SECURITY AND ENVIRONMENTAL RECOVERY
Protection of Areas of Sanitation and Stabilization of Water Mains Pipelines Recovery of Permanent Solid Waste Dams Preservation Reforestation Erosive River Springs Management (APP) Processes DEVELOPMENT OF WATER BASINS
PRIORITARY WATER BASINS
São Francisco
Parnaíba
Taquari
Araguaia Tocantins DEVELOPMENT OF WATER BASINS
SÃO FRANCISCO BASIN
Alagoas, Bahia, Ceará, Paraíba, Pernambuco, Rio Grande do Norte, 10 states Sergipe, Minas Gerais, Distrito Federal, Goiás
927 24 City Hubs municipalities
15% of Brazil´s KEY 32.8 million population SÃO FRANCISCO RIVER BASIN AND AREA OF INFLUENCE RIVER people 80% urban population
RIVER DEVELOPMENT OF WATER BASINS
PARNAÍBA BASIN
3 states Piauí, Maranhão, Ceará
287 9 City Hubs municipalities
2,5% of Brazil´s 5.2 million population KEY people 63% urban population
PARNAÍBA RIVER BASIN
RIVER DEVELOPMENT OF WATER BASINS
TAQUARI BASIN
2 states Mato Grosso, Mato Grosso do Sul
18 1 City Hub municipalities
0.2% of Brazil´s KEY 395 Thousand population TAQUARÍ RIVER BASIN people 84% urban population
RIVER DEVELOPMENT OF WATER BASINS
ARAGUAIA – TOCANTINS BASIN
Tocantins, Pará, Mato Grosso, 6 states Maranhão, Goiás, Distrito Federal
436 16 City Hubs municipalities
7% of Brazil´s 14.9 million population KEY people 81% urban population TOCANTINS RIVER BASIN
RIVER DEVELOPMENT OF WATER BASINS SÃO FRANCISCO RIVER WATER SECURITY INTEGRATION PROJECT (PISF):
The Project, which is organized along two main water transfer axes, the North and the East Axis, in addition to its associated branches, aims to solve the water scarcity problem in the Northernmost region of the Brazilian Northeast.
Studies in progress to seek partnership with the private sector for operation and maintenance. Apodi Salgado Branch Increase water security for the recipient basins that Branch Coastal Slopes CAC present hydrological vulnerability 390 benefited municipalities (12 million people) Entremontes Agreste Branch East Ivestment of R$ 12 billion North Axis Branch Estimated operating cost: R$ 500 million/year Axis Deadline for studies: December 2020 Agreste Extension DEVELOPMENT OF WATER BASINS WATER SECURITY CURRENT MODELS OF THE SECTOR Structuring Construction Path to be pursued: Works
CHANNELS, PIPELINES, DAMS NORMATIVE IMPROVEMENTS – SUSTAINABILITY OF INITIATIVES AND CONSTRUCTION OF POSSIBILITY OF NEW MANAGEMENT MODELS Water Access Technologies REMUNERATION MODELS
ÁGUA DOCE PROGRAM – DESALINATION SYSTEMS DIVERSIFICATION OF INVESTMENT SOURCES.
LOW PRIVATE SECTOR PARTICIPATION IN INFRASTRUCTURE INTERVENTIONS AND OPERATIONS. W A PRIORITY AREAS T DEVELOPMENT OF WATER BASINS SANITATION AND SOLID WASTE TREATMENT PRODUCTIVE DEVELOPMENT - IRRIGATION AND E LOCAL CLUSTERS R SANITATION BRAZILIAN MARKET – SEWAGE AND WATER
• 61% of the population is under assisted or has no access to sewage collection services;
• In order to meet that demand, US$ 51.1 billion are needed for new projects by 2033; • New Legal Framework will promote private sector participation in the Brazilian Market;
INVESTMENT NEED
APPROXIMATELY US$ 50 BILLION SANITATION UNIVERSALIZATION OF BASIC SANITATION BRAZILIAN MARKET – SEWAGE AND WATER
Ceará: • Assisted Population: Amapá: Auction 3T21 1.5 million people Auction 1T21 • Estimated investment: Alagoas: R$ 2.5 billion Auction 3T20 • Public Notice for Auction Acre: published on 29/05/20 Auction 1T21 Cariacica (ES): Auction 3T20
Rio Grande do Minas Gerais: Sul: Auction (TBD) • Assisted Population: Auction 2T21 13.7 million of people • Estimated investment: Rio de Janeiro: R$ 33.5 billion Porto Alegre Auction 4T20 • Public Consultation opened (RS): on 09/06/20 Auction 2T21 SANITATION Data From the Project Structuring Fund (FEP / MDR) BRAZILIAN MARKET
PROJECTS 3 ASSISTED POPULATION 0.49 Mi
MUNICIPALITIES 3 CAPEX OPEX 631.45 Mi 2.07Bi STRUCTURING PREMISES
Scheduled Cost recovery through tariff State Municipality % Executed Auc�on collec�on, joint water-sewage- waste collec�on CE Crato 44 2020 Common concessions Energy harnessing in sewage RJ Volta Redonda Not Ini�ated treatment plants Incen�ves for technological RN São Gonçalo do innova�on Not Ini�ated Amarante
PROJECTS 1 ASSISTED POPULATION 0.02 Mi SUPPORTERS
MUNICIPALITIES 1 CAPEX 50.00 Mi OPEX 290.00 Mi
State Municipality % Executed Scheduled Auc�on
GO São Simão 61 2021 SOLID WASTE TREATMENT
• 8% of the population has no solid waste collection services and; • There are more than a thousand garbage dumps operating in the country;
• There are 136 PPPs in solid waste management in Brazil; • To meet the demand, US$ 6.8 billion are needed in new projects for solid waste management by 2033. SOLID WASTE TREATMENT Municipal Projects – Project Structuring Fund (FEP / MDR) BRAZILIAN MARKET
PROJECTS 4 ASSISTED POPULATION 1.95 Mi
MUNICIPALITIES 21 CAPEX 524.65 Mi OPEX 2.76 Bi
Scheduled State Contractor Municipali�es % Executed Auc�on Structuring Premises SP Municipality Bauru 59 2020 Cost recovery by collecting a joint fare: CE Estado do Ceará Altaneira, Barbalha, Caririaçu, water-sewage-waste Crato, Farias Brito, Jardim, Common concessions 2021 Missão Velha, Nova Olinda e 36 Scope - divisible services Santana do Cariri Incentives for selective garbage collection and inclusion of waste pickers MG Consórcio Uberaba, Conceição das Reduction of waste sent to landfill CONVALE Alagoas, Sacramento, Delta, Energy recovery mechanisms and biogas capture 57 2020 Planura, Campo Florido, Veríssimo e Água Comprida The regulatory model for this sector was developed in cooperation with AFD, Expertise France and ABAR PI Municipality Teresina 58 2020
SUPPORTERS W A PRIORITY AREAS T DEVELOPMENT OF WATER BASINS SANITATION AND SOLID WASTE TREATMENT PRODUCTIVE DEVELOPMENT – IRRIGATION AND LOCAL E CLUSTERS R IRRIGATION IRRIGATED AGRICULTURE POTENTIAL
• Over the next 25 years, 80% of the food needed by the human population will be provided by irrigated crops (FAO, 2012).
• Irrigated agriculture represents 18% of agriculture and produces approximately 40% of the world's food production.
Irrigated areas available Advantages of Irrigation for irrigation worldwide Produc�on: Financial Return / Hectare: 3 a 3.5 �mes higher Up to 7.0 �mes higher Brazil 3rd Irrigable Area ↑ Irrigated area: 9th Irrigated Area ↑ Produc�on
↓ Need to expand the planted area IRRIGATION ONGOING PROJECTS
• PUBLIC IRRIGATION PROJECTS • System planned for the supply or drainage of water in an irrigated agriculture initiative, in a programmed manner, in quantity and quality, which may be composed of structures and equipment for individual or collective use for water collection, supply, storage, distribution and application, managed directly or indirectly by a public agency (adaptation Federal Law 12,787 / 2013).
Gross Value of Production of Production in Codevasf’s Public Codevasf's Public Irrigation Irrigation Projects (ton) Projects (US$ 1,000)
1994 2017 Growth Rate: Growth Rate: 335% 4.851% IRRIGATION MAIN PRODUCTS PETROLINA/JUAZEIRO POLE (PE/BA)
Direct Jobs: 55,930 Indirect Jobs: 83,894 GNP 2000 (R$ 1.000) : 4,674,072 472% GNP 2015 (R$ 1.000) : 26,723,182 GRAPES SUGAR CANE MANGO GUAVA Average MHDI (2000): 0.545 Average MHDI (2010): 0.683
Source: Codevasf Annual Report 2017, IBGE/ 2018.
Cul�vated Area Produc�on Gross Value of Project/Pole (ha) (t) Produc�on (R$) Bebedouro 1.259 22.436 47.499.439 Responsible for 98% of the grapes Nilo Coelho* 23.677 706.582 1.405.213.361 and 92% of the mangos exported in 2017; Curaçá 4.105 127.589 162.150.346 Mandacaru (1) 685 12.203 11.298.768 Main importers: Europe, USA and Maniçoba 7.956 252.695 127.581.070 South Africa. Salitre 3.829 277.400 90.041.915 Tourão (1) 14.418 1.496.092 111.770.789
Petrolina e Juazeiro 55.930 2.894.996 1.955.555.688
*Investment in the Nilo Coelho Irriga�on Project: R$ 717 million IRRIGATION
ONGOING PROJECTS
Produc�on Area Gross Produc�on Value Investments # Project State (ha) (US$ million) (US$ million) Current Addi�onal Actual Addi�onal Made To be Made
A Baixo Acaraú CE 4,020 4,200 15.6 16.1 40.7 17.5
B Tabuleiros Litorâneos PI 1,345 6,000 3.8 16.6 42.5 35.0
C Platôs de Guadalupe PI 1,826 10,500 6.0 34.1 55.0 64.1
D Santa Cruz do Apodi RN - 4,000 - 15.0 53.5 63.3
E Tabuleiros de São Bernardo MA 542 5,000 0.4 4.0 - 71,8
F Baixio de Irecê BA 16,500 31,500 106.6 220.2 241.8 249.6
G Salitre BA 5,099 5,800 19.7 31.7 12.3 62.1
H Jaíba MG 11,500 26,500 66.8 153.5 385.9 250.0
I Pontal BA 3,800 4,300 14.2 16.1 167.2 82.5 CLUSTERS
The Ministry of Regional Development encourages Local Productive Clusters located near the priority water basins in Brazil. More private investment is needed to better harness the potential of these activities. LOCAL CLUSTERS
PRODUCERS (ASSOCIATIONS & COOPERATIVES)
Training in : Certified Formilizing the Water & Energy, Capital Value-added and Markets and Agroindustries Supply Infrastructure, Inspected Products Services (tourism Credit, and gastronomy) Technologies
THE MINISTRY PROVIDES SUPPORT ALONG THE PRODUCTIVE CHAIN U R B PRIORITY AREAS HOUSING A PUBLIC LIGHTNING URBAN MOBILITY N DEVELOPMENT HOUSING NEEDS
HOUSING DEFICIT (2015) HOUSING DEFICIT BY COMPONENT 6.35 MILLION HOUSES
HOUSING DEFICIT
KEY
Up to 50,000 HU LARGE-SCALE HOUSING CONSTRUCTION 50,001 – 100,000 100,001 – 250,000 Source: João Pinheiro Foundation, 2020 251,001 – 500,000 Formulation: National Housing Secretariat of the Ministry of Reginal Development >500,000 HOUSING NEEDS
HOUSING INADEQUACY – LACK OF HOUSING INADEQUACY BY INFRASTRUCTURE | 7.22 MILLION COMPONENT HOUSES
Lack of Inadequacy of Housing Precarity Infrastructure Land Use
KEY Land Titling and Housing Urbanization Up to 50,000 HU Regularization Improvements 50,001 – 100,000 100,001 – 250,000 251,001 – 500,000 >500,000 HOUSING NEEDS
PROJECTION OF HOUSING DEMAND HOUSING DEMAND 2010 - 2040
To meet the demand, it its estimated that, between 2019 and 2030, it will be necessary to build 1,235 housing units each year.
Source: UFF, future demand for housing: demography, housing, and the market, 2018. POTENTIAL PPP PROJECTS
HOUSING WORKS
Public Land (Union, States Joint ventures: Minimum concession value and Municipalities) fixed by land price Commercial areas
Mixed-income Housing
% Minimum Social Housing STRATEGIES FOR EXPANDING INVESTMENTS
HOUSING CREDIT INSURANCE
WHAT IS IT ? BENEFITS
A financial instrument that reduces the credit risk, in • It allows the reduction of payments by the family; the event of failure of payment by the borrower to • It allows the reduction of interest rates due to the the financial entity that granted a mortage credit for reduction of the risk of the operation; the purchase of a housing unit. • It allows the multiplication of the credits offered by the financial entity since it needs to reserve less capital as a provision; • It gives greater strength to the credit portfolio, which is now double-checked (Bank and Insurance); • Creates conditions for attracting new financial entities due to the security of operations. STRATEGIES FOR EXPANDING INVESTMENTS
GUARANTEE FUND FOR HOUSING MICROCREDIT
WHAT IS IT ? BENEFITS
A fund that offers a guarantee to a percentage of • It allows the reduction of payments by the family the financial institution’s microcredit portfolio, • It allows the reduction of interest rates due to the reducing credit risk, in the event of failure of reduction of the risk of the operation payment by borrowers. Designed for housing • It guarantees the entire credit portfolio, reducing improvement and self-construction works. the risk of individual credit per borrower • It creates conditions for the attraction of new microfinance entities (microfinance companies, startups and fintechs, credit unions, crowdfunding platforms) due to the guarantee of operations. STRATEGIES FOR EXPANDING INVESTMENTS
REQUALIFICATION OF HOUSING DEVELOPMENTS
WHAT IS IT ?
This is a cooperation with Germany’s GIZ that aims PHASE 1 - Method for evaluating degraded housing to develop a diagnosis, a Pilot Project, and financing mechanisms to raise international funds and green developments and testing. funds. PHASE 2 – Rehabilitation Project for run-down housing developments, institutional articulation to implement public facilities and essential services, and a project to raise funds to carry out the planned interventions. PHASE 3 - Execution of the Pilot Project (through external resources). U R B PRIORITY AREAS HOUSING A PUBLIC LIGHTNING URBAN MOBILITY N DEVELOPMENT PUBLIC LIGHTNING
There are 18 million streetlights in US$ 2.8 billion/year are charged Public Lighting has Legal certainty 464 municipalities were identified by Brazil, most of which use high pressure throughout the country through guaranteed by the Federal the World Bank1 as capable to perform sodium and mercury vapor light bulbs. specific taxes (COSIP). Constitution of Brazil since 2002. a PPP or a concession.
1 World Bank - https://multimidia.fnp.org.br/biblioteca/documentos/item/download/360_07e597cd536db440e1e817d6dcc0490e 2 Radar PPP - https://www.radarppp.com/eventos/ip19/ PUBLIC LIGHTNING
Demand :16 municipalities, Auction: 2nd semesters/2020 5.3 million people, 560 (9 projects) thousand streetlights.
Contract Signature: 2nd Type of contract: PPP semester/2020 (9 projects)
Investment: R$ 1.3 billion Duration of the Contracts: (CAPEX+OPEX). 13-15 years.
• Information:h�ps://www.ppi.gov.br/projetos-concessoes-e- parcerias#/s/Em%20andamento/u//e/Ilumina%C3%A7%C3%A3o%20p%C3%BAblica/m//p/
Revenue: COSIP Tax Modelling and Studies: FEP – Contribution. MDR, PPI, CAIXA (ongoing). U R PRIORITY AREAS B HOUSING A PUBLIC LIGHTNING URBAN MOBILITY N DEVELOPMENT URBAN MOBILITY IN BRAZIL
Percentage of workers with travel time between home and work greater than 60 minutes In Brazil, there are 28 metropolitan regions;
Only 13 have rail transport systems;
The existing systems need new investments in order to expand and modernize;
There is a high percentage of workers who take more than an hour from their houses to work;
47% of Brazilian population live in metropolitan areas;
There are more than 90 transportation concession operations in Brazilian urban areas;
Concessions or PPPs for railroads increased, from 2 in 2011 to 7 in 2018; 5% to 10% The obsolete technology provides opportunities for gains in 10% to 15% efficiency; 15% to 20% There is great potential for private sector participation More than 20%
1 Source: h�p://mdr.gov.br/images/stories/ArquivosSEMOB/publicacoes/relatorioindicadores2018.pdf URBAN MOBILITY – PORTFOLIO
•Currently, the Ministry for Regional Development has 13,609 active public projects in the urban mobility sector •They correspond to R$ 44,8 billion in public resources (OGU) and financing
Region FIN OGU Total Midwest 3.76 1.97 5.73 Northeast 6.78 7.43 14.21 North 1.92 1.60 3.52 Southeast 11.14 5.03 16.17 South 3.91 1.26 5.17 Subtotal 27.51 17.29 44.80 *Values in R$ billions URBAN MOBILITY
Studies aimed at transferring the metro-rail systems to the States and defining the operating models for the operations of public companies, with the objective of privatizing these systems through their inclusion in the National Privatization Program.
Brazilian Urban Trains Company (CBTU) Urban Trains Company of Porto Alegre S.A. (Trensurb)
• Created in 1984, it started • Created in 1980 to to incorporate RFFSA's implement and operate a rail systems. line of urban trains on the • Currently, it is a public North Axis of the company controlled by Metropolitan Region of the Federal Government. Porto Alegre / RS. • Headquarters in the city of Rio de Janeiro / RJ. URBAN MOBILITY
No. Of Passengers in 2017: 55.06 million Extension: 44.6 km Empresa de Trens Urbanos de Porto No. Of Stations: 24 Undercarriage Fleet: 40 Electric Alegre S.A. (Trensurb) Multiple Unit (EMT) No. of Maintenance workshops: 3
Demand: 6 municipalities; 2.5 million of inhabitants; 200 thousand passengers per weekday; 44.6 km electrified.
Importance of Asset: Increase the Porto efficiency and quality of passenger service. Alegre Revenue: Tariffs, real estate opportunities around the stations and linked ventures (optical fiber lines, advertising, shops).
Responsible for Modelling and studies: BNDES/PPI/MDR. URBAN MOBILITY
CBTU - Companhia Brasileira de Trens Urbanos
Demand: 17 Municipalities, 9.3 million inhabitants, 869 million passengers/year, 576 thousand passengers/day, 220 km long. Importance of the Asset: Increase the efficiency and quality of the service provided to the passengers served by the company. Business Model: Possibility of selling the assets - National Privatization Plan (PND) – Public Auction or transfer to the private initiative, after the transfer to theto the states Revenue: Tariffs, real estate opportunities around the stations and linked ventures (optical fiber lines, advertising, shops). Responsible for Modelling and Studies: BNDES/PPI/MDR. URBAN MOBILITY LINE 2 OF THE METROPOLITAN REGION OF BELO HORIZONTE / MG SUBWAY
Basic Characteristics: Greenfield Responsible for the Studies: BNDES with the support of the Ministry for Regional Development and Minas Gerais State Government. Granting Authority: Minas Gerais State Extension:11.5 km Capacity: 50,000 people/day Estimated Investment: R$1.6 billion Contract Duration: 30 years Expected Publication Date for the Auction Notice: July / 2021 Expected date for the Auction: September / 2021 Auction Criteria: lowest contribution Estimate of the minimum grant amount: none
Description: Aims to connect the region located in the southwest of the central area of the municipality, integrating it with Line 1 (today operated by CBTU). Line 2 had its construction started in March 1998, by CBTU, but has been paralyzed since 2004. PUBLIC PRIVATE PARTNERSHIPS (PPPs)
TWO mobility projects VLT of Downtown Rio de Salvador Subway executed by the Federal Janeiro and Port Area of Rio Government de Janeiro
Municipal and state urban mobility PPPs: there SÃO PAULO: Line 4 (Yellow) is the first are several in progress in the country that are not subway line in Brazil to be operated by the part of the federal government's investment private sector in a PPP. portfolio, and which are structured with Line 6 (Orange), which is under construction, resources from local governments was also granted to the private sector . through PPP. ATTRACTION OF PRIVATE CAPITAL FOR REGIONAL DEVELOPMENT INITIATIVES
STRATEGIC VISION
FEDERAL GOVERNMENT TIMELINE MEASURES TO INCREASE PRIVATE CAPITAL PARTICIPATION IN REGIONAL DEVELOPMENT INITIATIVES COMMITMENTS TO PRIORITY AREAS FOR INTERNATIONAL PRIVATE CAPITAL REQUIREMENTS FOR PARTICIPATION IN REGIONAL INVESTMENTS TO ATTRACT DEVELOPMENT INITIATIVES PRIVATE CAPITAL TO REGIONAL DEVELOPMENT INITIATIVES ENVISAGED MODELS FOR PRIVATE CAPITAL PARTICIPATION IN REGIONAL DEVELOPMENT INITIATIVES TIMELINE
UP TO UP TO DECEMBER 2021 SEPTEMBER 2020 2020
S Presentation of the
• S Regulatory Launch of the N • •
Strategic Vision T O Modernization Process Initiatives on the I C
T First round of contacts • E • Construction of Market J A with International and Projects T O
L National Partners and R U G Investors P
S N F
Incorporation of I N • O H
O experiences and C N C suggestions from N O Y I
international and U R T A
A national partners C L
N Post-Covid Plan U I • T R
Development C T M I E S J L N E O O R R P C P THANK YOU! OBRIGADO ありがとうございました 감사합니다 DANK U GRACIAS اركش GRAZIE הדות DANKE