THE PARTNERSHIP PROGRAM (March, 2021) the STATE of SÃO PAULO by the NUMBERS
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THE PARTNERSHIP PROGRAM (March, 2021) 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/$) 45PEOPLE 32% 31% 36% 19% OF OF BRAZILIAN OF MANUFATURING OF BRAZILIAN BRAZILIAN STATE’S PUBLIC INDUSTRY IN AGRIBUSINESS GDP INVESTMENT BRAZIL GDP Source: IBGE; SEADE and Cepea/CNA – data 2018 EVOLUTION OF PARTNERSHIPS IN SÃO PAULO First PPP agreement in Brazil 1998 2006 2016 Roads concession New rounds in the roads program starts concession program THE 2021 PICTURE 44 SIGNED CONTRACTS 20 PROJECTS IN THE PIPELINE 32 12 18 2 Concessions PPPs Concessions PPPs EVOLUTION OF PARTNERSHIPS IN SÃO PAULO Project distribution by sector SIGNED PROJECTS R$ 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% EVOLUTION OF PARTNERSHIPS IN SÃO PAULO Projects distribution by sector Projects in the pipeline R$ 32 Planned investments Transportation/Mobility 55% BRL billion Environment (Parks) 22% Prisons 11% Leisure/Events 5% Education 5% ROUND OR THE ROAD CONCESSIONS PROGRAM BRL 24 bi in investments Direct Agreement based on the best international practices regulates lander’s rights BRL 4,1 bi in awards after agreement’s execution with 7.030%, 131%, 438% e 91% off grants in Auction attended by top global players each of the concession already tenderd First highway concession awarded to a private equity Improvements to the attractiveness of the projects fund (Pátria Investimentos) bidding alone (such as clear indemnification clauses and 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 AWARDED PIRACICABA-PANORAMA ROAD Contract Signed in May 15th, 2020 Total Extension Auction was held in January, 2020 1,273 km 62 cities 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 PROJECT AWARDED PIRACICABA-PANORAMA ROAD INNOVATIONS Flexible fee policy with frequency discount system from the beginning of the contract; users are charged only for the extension they use Possibility of implementing a point-to-point toll system. Users pay only for the extension they pass through Improvement in road safety by adopting IRAP guidelines Up to 2 billion BRL/$ in tax revenues for the cities in the region, stimulating local development Panorama Parapuã SP-425 São Carlos SP-294 SP-261 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 PROJECT AWARDED CAMINHOS DO MAR PARK Contract signed on March 17, 2021 Concession of the public visitation area to promote investments, conservation, maintenance and exploration of Caminhos do Mar Park’s area. Minimum Investments Required: Entrance area and Ticket Offices; Parking Lot; Visitor’s House, Adequacy of Trails, Zipline; Service Store and Catering Services. Main Faitures: Area dof 315 hectares that houses exuberant natural beauty of Mata Atlântica. Several historical monuments, were bulit in 1922. Restoration of 9 historical monuments should be ready for the celebration of 200 years of Brasil’s Independence. PROJECT AWARDED Contract signed on CAMINHOS DO MAR PARK March 17, 2021 Invest and expand recreation, environmental education and ecotourism activities in the Serra stretch (Estrada Velha de Santos) Bidding Winning Consortium Parques Fundos de Exploration potential: current demand in 17 thousand people/year (2019) Investimentos, with a grant of BRL 4 million, with premium of 216%. BRL 18.5 million of investments, including BRL 4.2 million resources for restoration, approved from Environmental Compensation Chamber Schedule May-Jun.2019 Feb-Mar.2020 May.7th.2020 Sep.2020 Nov.4th.2020 Bidding Market Public Online Public Auction Documents Sounding Consultation Hearings Held Publication AUCTION HELD ON FEBRUARY 23, 2021 ZOO and BOTANICAL GARDEN Concession of the public visitation area of the Zoo , Safari Zoo and Botanical Garden of the State of São Paulo including operation, maintenance and investments in enhancing equipments, aimed at the conservation of environment and biodiversity. ZOO of São Paulo - Area: 843,000 m2 /2,149 animals . ZOO SAFARI - Area: 80,000 m2 / route: 3.9 km (2.4 miles) Annual Visitation: 1 million people per year, with expected of 2.7 million people per year in the 30th year of the concession. BOTANICAL GARDEN - Area: 40.4 hectares / Visitation Area: 180,000 m2 Annual Visitation: 270,000 people per year, with expected of 320.000 million people per year in the 30th year of the concession. Investments in equipments enhacing conservation, environmental education and leisure Potential for renevue collection with high demand for visitation and ancellary revenues Maintenance of fauna and flora research programs AUCTION HELD ON FEBRUARY 23, 2021 ZOO and BOTANICAL GARDEN Revitalization of na environmental area of national relevance, as well as Bidding with the surrounding areas 132% premium and BRL 111 The farm located at Araçoiaba da Serra also is included in the concession to million grant be explored by the private partner from the Reserva Paulista Consortium. BRL 370 million investments ONGOING PROJECTS - ROADS STATE COASTLINE LOT • Improve road safety and confort 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 STATE COASTLINE LOT Focus on reducing accidents on the road stretch, increasing road safety Project will include investments, operation and maintenance of roads BRL 2.8 billion planned investments International Finance Corporation (IFC) advisory Schedule Aug.2019 Oct.2019 Mar-Apr.2021 (*) Project’s Public Hearing Publication of Bidding Resumption and Consultation Documents (*) Estimated ONGOING PROJECTS - ROADS 5th ROUND OF THE ROAD CONCESSION PROGRAM São Paulo Northwest Block Total: 1.059 miles • Region presents high levels of agroindustrial production, mainly sugar and ethanol; • Meets the mobility of about 5 million inhabtants; Northwest A: 305 miles • Interconnects importante cities in the State such Tebe: 97 miles as Ribeirão Preto; São José do Rio Preto and DER stretch: 208 miles Araraquara; Northwest B: 753 miles • Enables new logistics channel for MS and Triângulo do Sol : 274 miles Brazilian Midwest DER stretch: 479 miles ONGOING PROJECTS - ROADS 5th ROUND OF THE ROAD CONCESSION PROGRAM Northwest Lot A • Approx lenght: 305 miles SP 322 – Rod. Armando Sales de Oliveira • Estimated Capex: BRL 2 Billion (58 km) TEBE Concession SP 425 – Rod. Assis Chateaubriand • Approx lenght: 97 miles (278 km) • 2019 Revenue: BRL 82 million Tebe • 2019 Traffic: 10.3 million axles equivalent (156 km) DER stretch (SP 425 + 322) • Approx lenght: 208 miles ONGOING PROJECTS - ROADS 5th ROUND OF THE ROAD CONCESSION PROGRAM Northwest Lot B • Approx lenght: 753 miles • Estimated Capex: BRL 5 Billion Triâgulo do Sol Concession • Approx lenght: 274 miles • 2019 Revenue: BRL 508 million • 2019 Traffic: 42.4 million axles equivalent DER stretch (SP 310 + 320 + 461 + 463) • Approx lenght: 479 miles ONGOING PROJECTS - ROADS 5th ROUND OF THE ROAD CONCESSION PROGRAM Northwest Blocks – Lot A and B Highways studied as a logistic corridor Trevo Barretos (Tebe) Investments, operation, maintenance and modernization of highways Ongoiong negotiations FIPE advisory Faria Lima (Triângulo do Sol) Schedule Jan.2021 Mar.2021 (*) Ago.2021 (*) Authorization of studies Kick off Public Hearing CDPED and Consultation (*) Estimated ONGOING PROJECTS - ROADS 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 RODOANEL NORTH In Dec.2020, CDPED decided to structure a