Strategic Vision Attraction of Private Capital for Regional Development Initiatives
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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