Dr. Tarcila Reis Jordão
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The Partnership Program July, 2021 Tarcila Reis THE STATE OF SÃO PAULO BY THE NUMBERS LARGEST PORT IN LATIN AMERICA LARGEST AIRPORT IN LATIN AMERICA HOSTS 80% OF ALL BUSINESS EVENTS IN BRAZIL LARGEST RUBBER PRODUCER IN BRAZIL WORLD’S LARGEST ORANGE AND ETHANOL PRODUCER BEST METROPOLITAN SUBWAY AND RAILWAY NETWORK IN BRAZIL LARGEST LAISURE AND ENTERTAINMENT CENTER IN LATIN AMERICA BEST ROAD INFRASTRUCTURE IN BRAZIL THE STATE OF SÃO PAULO BY THE NUMBERS TRILLION MILLION 2 GDP (BRL/$) 45PEOPLE 32% 31% 36% 19% OF OF BRAZILIAN OF MANUFATURING OF BRAZILIAN BRAZILIAN STATE’S PUBLIC INDUSTRY IN AGRIBUSINESS GDP INVESTMENT BRAZIL GDP Source: IBGE; SEADE and Cepea/CNA – data 2018 EVOLUTION OF PARTNERSHIPS IN SÃO PAULO Project distribution by sector SIGNED 44 PROJECTS R$ in private investments (minimum private capex on the signing 98.2 contract) Transportation/Mobility 75% update values - 2019 BRL billion Energy 7,5% Sanitation 5% Health 5% Leisure/Events 5% Housing 2,5% ROUND OR THE ROAD Best Financial Structure – Transport (2019) 4ª CONCESSIONS PROGRAM GOLD Midwest Highways of the State of São Paulo BRL 24 bi in investments Direct Agreement based on the best international practices regulates lender’s rights BRL 4,1 bi in awards after agreement’s execution with 7.030% (PIPA), 131% (Midwest Highway), 438% Auction attended by top global players (Shoes Highway) and 91% (Rodoanel North) off grants in each of the concession already tendered First highway concession awarded to a private equity Improvements to the attractiveness of the projects (such as clear indemnification clauses and fund (Pátria Investimentos) bidding alone periodic reviews First logistic project fully financed by the capital Exchange-rate risk protection mechanism based markets (operated by Entrevias) on the variable grants (no fiscal exposure to the government) PROJECT GRANTED PIRACICABA-PANORAMA ROAD Contract Signed in May 15th, 2020 Total Extension Auction was held in January, 2020 1,273 km 62 cities 791 miles involved Around BRL 14 billion 2,8 million Consortium formed by a Brazilian Bid of BRL 527 million in In investments People benefited private equity firm (Patria) and premium Singapore ‘s Sovereign Wealth Fund Bid of BRL 1.1 billion in premium Singapore’s Sovereign Wealth Panorama Bid Winner Fund(GIC) The first Asian Investor participated in a Parapuã road auction in the State of São Paulo evidencing the maturity and international trust in the State’s SP-425 São Carlos SP-294 SP-261 Concession Program Martinópolis Marília SP-310 SP-225 Brotas Presidente Prudente Jaú Rio Claro SP-331 SP-197 SP-284 Bauru Torrinha SP-191 Limeira Assis SP-293 SP-304 SP-308 Piracicaba ONGOING PROJECTS – ROADS – AUCTION on SEPTEMBER 15th, 2021 STATE COASTLINE LOT • Improve road safety and comfort for users and the surrounding population, with a reduction in Approx. Length 138 miles accidents. • Segregation of local and road traffic, dedicating the SP-055 for long distance travel. • SP-055 will be dualized in the stretch between Santos and Bertioga, and between Peruíbe and Miracatu. • 140km (87 miles) of marginal lanes and additional lanes; 89 km (55 miles) in duplications, in addition to other investments such as devices, bike lanes, shoulders, among others. • Elimination of bottlenecks in access to the coast of São Paulo and the Port of Santos, either from the south or from the north. ONGOING PROJECTS – ROADS – AUCTION on SEPTEMBER 15th, 2021 STATE COASTLINE LOT Focus on reducing accidents on the road stretch, increasing road safety Project will include investments, operation and maintenance of roads BRL 3 billion planned investments International Finance Corporation (IFC) advisory Schedule Aug.2019 Oct.2019 May 14,2021 September 15, 2021 (*) Project’s Public Hearing Bidding Auction Resumption and Consultation Notice (*) Estimated ONGOING PROJECTS – ROADS – AUCTION on SEPTEMBER 15th, 2021 STATE COASTLINE LOT: INNOVATIONS Demand risk sharing: 80% of the demand is composed by passenger vehicles, in conurbated areas with a higher probability of escape routes relative to other highways in the State. Due to these characteristics, the concession incorporates demand risk sharing Implementation of new project approval and monitoring models (BIM, SGP and certification) and use of iRap methodology Discount System for Frequent Users (DUF): Discount granted each time a user passes a toll station - the greater the use of the highway (within a month) the lower the fare paid. Discounts are based on the most frequent origin-destination distance for each toll station. (discount applied in addition to the 5% discount for users who opt for automatic charging tag) Free Flow at the Southern Costline: consists of entrance without physical barriers from the marginal to the expressway. Dynamic fee model: Aims to manage the service level of the expressway. The concessionaire will be able to allow more users to use the expressway in situations of idle capacity and limit congestion in times of greater demand. ONGOING PROJECTS – ROADS – Auction Notice September, 2021 RODOANEL NORTH • Concession of Noth Stretch of Rodoanel for completion of works, operation and maintenance. • North Stretch of Rodoanel with 44.2 km of extension (27.4 miles). • Connection between Raimundo Pereira de Magalhães Avenue (West Section), Fernão Dias Highway (BR-381); Presidente Dutra Highway (BR-116) and East Rodoanel stretch. ONGOING PROJECTS – ROADS – Auction Notice September, 2021 RODOANEL NORTH In Dec.2020, CDPED decided to structure a new concession model, contemplating the works necessary to complete the project CAPEX under study International Finance Corporation (IFC) advisory Schedule May-Jun, 2021 Nov.2021 (*) Public Hearing and Auction Consultation Notice (*) Estimated AUCTION HELD ON APRIL 20, 2021 Bidding Winning Consortium : Via Mobilidade LINES 8 AND 9 CCR and Grupo Ruas Fixed Grant: BRL 980 million (premium of 202%) Concession of metropolitan train services, comprises the operation, maintenance, modernization and Amador Osasco Bueno Station Station Line 8 supply of rolling stock Diamond Júlio Prestes Pres. Altino Station BRL 3.2 billion investments 22 Station Stations 25.8 Miles Extension Line 9 Emerald Total existing extension of 46 miles Construction of + 2.8 miles stretch of Line 9 and 1 new station 38 existing stations, 3 of wich are integrated with the Metro network 20.2 Miles + João Dias Station renovation Extension 18 Stations Line 8 – Diamond Line 9 – Esmerald 515 thousand 605 thousand passengers/day passengers/day Grajaú Station ONGOING PROJECTS - RAILWAYS INTERCITY TRAIN PPP for the passenger transportation services including GDP of 3 regions corresponds to operation, maintenance and rehabilitation works, and the 66% State construction of the INTERCITY TRAIN (greenfield) between GDP Metropolitan Regions of São Paulo and Campinas. The project has three different services: A Greenfield stage is planned, with new tracks between Jundiaí and Campinas, including Express Service and a Metropolitan Train. A Brownfield stage, between São Paulo and Jundiaí, including Line 7 Ruby INTERCITY TRAIN – LINE 7 – RUBY METROPOLITAN TRAIN GREENFIELD BROWNFIELD (9-stop Service) (3-stop Express Service) . Existing track will receive: . Express Service: 66 min travel - Improvement of permanent . Metropolitan Service with 40 time, 63 miles track system and station miles . 3 Halts: São Paulo, Jundiaí e accessibility . 9 Halths: Francisco Morato, Campinas - Modernization of Train Botujuru, Campo Limpo Paulista., . Possible extension to Control Systems Várzea Paulista, Jundiaí, Valinhos, - New equipments, walkways Americana (under study) – Vinhedo, Louveira e Campinas phase 2 and drainage system. ONGOING PROJECTS - RAILWAYS INTERCITY TRAIN Reduction of travel time (maximum train speed above 75 mph) Sustainability: High level comfort: air-conditioned cars, wi-fi and on-board service Less consumption of fossil fuels Capex under study IDB Advisory Schedule Jul.2019 Aug.2021 Market Public Hearings and Sounding Consultation THANK YOU.