BRAZILIAN GUIDE ON INVESTMENT OPPORTUNITIES 2017 Foreword Brazil is focusing on a new cycle of sustainable growth, based on an extensive adjustment process and the adoption of measures to improve competitiveness and productivity. The launching of the sixth edition of the Brazilian Official Guide on Investment Opportunities is aimed to support this new cycle of growth by identifying investment opportunities across the country. The guide presents trustworthy, systematized high level information to both foreign and domestic investors about specific projects. It provides direct contact information for each project, which fosters transparent relations between public and private entities Brazil offers a safe investment environment, full of business opportunities. In the past years, the country´s demand for infrastructure services has increased significantly. The Federal Government is promoting the modernization of its infrastructure with concessions, private financing and the participation of banks and investment funds. The expansion and improvement of infrastructure services will increase the competitiveness of the economy, by reducing logistics costs for industries, expanding exports and promoting efficiency in the flow of agricultural production. This new version of the Brazilian Guide on Investment Opportunities contains 137 projects in state and federal levels, totaling more than US$ 32 billion to be carried out in the near future. There are opportunities in various sectors such as energy, highways, railways, ports, airports, telecommunications, generation and transmission of energy, urban mobility, construction, tourism and many others. In the past years, Brazil has consolidated its position as a strong and attractive global player with a high degree of economic diversification. The country is currently the seventh largest economy in the world. With a privileged location in the east- central part of South America, it borders almost all other South American countries. This allows companies to access Latin American and African markets. A stable financial system, tradition of respect for contracts and huge domestic market make Brazil a safe place for investment. As an example, the country is currently the eighth biggest FDI destination in the world in 2016 according to UNCTAD. The organization of this Guide was implemented by the Brazilian Investment Information Network (RENAI), at the Ministry of Industry, Foreign Trade and Services (MDIC). The preparation of this Guide had valuable support and guidance of several Government partners as well as state and local Development Secretariats of all Brazilian regions. It is worth highlighting the participation of the Ministry of Finance, the Ministry of Mines and Energy, the Ministry of Planning, Development and Management, the Ministry of Tourism, the Ministry of Transportation, Ports and Civil Aviation, the National Land Transportation Agency, the Brazilian Electricity Regulatory Agency, the National Agency on Telecommunications and the National Council of State Secretaries of Development, Industry and Trade, among others. Index Foreword __________________________________________________________________________________ 2 Why Brazil? ________________________________________________________________________________ 5 Macroeconomic outlook ___________________________________________________________________ 6 Trade Balance (US$ Billion) __________________________________________________________________ 6 International Reserves (US$ billion) ___________________________________________________________ 7 Foreign Direct Investment and Current Account (US$ billion) __________________________________ 7 Domestic and External Demand, contribution to GDP (percentage points) ____________________ 7 Infrastructure development _________________________________________________________________ 9 RENAI | Brazilian Investment Information Network ___________________________________________ 11 Investment Opportunities at Federal Level _________________________ Erro! Indicador não definido. Generation and Transmission of Electrical Power ____________________________________________ 12 10-Year Energy Expansion Plan (PDE) 2024 - Investment Opportunities_________________________ 12 Sector-Specific Economic Outlook _________________________________________________________ 13 Demographic Assumptions ________________________________________________________________ 13 Consolidated Energy Data ________________________________________________________________ 14 Electricity Sector Data _____________________________________________________________________ 15 Hydroelectric Expansion ___________________________________________________________________ 18 Thermal Power Expansion __________________________________________________________________ 19 Expansion of Other Renewable Energy Sources _____________________________________________ 19 Results from the Oil, Gas and Biofuels Sectors. _______________________________________________ 21 Adapting the 2024 Energy Expansion Plan to the National Policy on Climate Change __________ 21 Telecommunications ______________________________________________________________________ 23 Transport and Logistics - Airports ____________________________________________________________ 25 The Brazilian Investment Partnership Program _______________________________________________ 29 The Program ______________________________________________________________________________ 29 Investment Partnership Program ____________________________________________________________ 30 Ports ______________________________________________________________________________ 30 Highways _________________________________________________________________________ 40 Railways __________________________________________________________________________ 48 Airports/ Air sector _________________________________________________________________ 52 Power ____________________________________________________________________________ 55 Oil and Gas _______________________________________________________________________ 58 Mining ____________________________________________________________________________ 60 Others ____________________________________________________________________________ 61 Export Processing Zones – EPZ ______________________________________________________________ 65 Investment Opportunities at State and Local Levels _________________________________________ 68 Alagoas __________________________________________________________________________ 68 Amazonas ________________________________________________________________________ 75 Bahia _____________________________________________________________________________ 81 Ceará ____________________________________________________________________________ 87 Espírito Santo ______________________________________________________________________ 93 Mato Grosso ______________________________________________________________________ 95 Mato Grosso do Sul ________________________________________________________________ 99 Minas Gerais _____________________________________________________________________ 100 Pará _____________________________________________________________________________ 108 Pernambuco _____________________________________________________________________ 117 Rio de Janeiro ___________________________________________________________________ 119 Rio Grande do Norte _____________________________________________________________ 122 Rondônia ________________________________________________________________________ 126 Rio Grande do Sul ________________________________________________________________ 130 Santa Catarina __________________________________________________________________ 141 São Paulo________________________________________________________________________ 144 Tocantins ________________________________________________________________________ 157 Sergipe __________________________________________________________________________ 162 Contact info: ___________________________________________________________________ 164 Why Brazil? In the past years, Brazil has consolidated its position as a strong and attractive global player with a high degree of economic diversification and is currently the seventh largest economy in the world. The country is a vigorous democracy, with free multiparty elections and strong institutions. The economic development of the past years resulted in an expanded mass consumer market and increased social equality, an environment of institutional stability and increased social cohesion. Nearly 40 million Brazilians experienced significant improvements in their life conditions. In addition, Brazil has a large and fast growing consumer market, comprising 205 million people (IBGE). Its democratic government, stable financial system and huge domestic market make Brazil a safe place for investment and gives it the strength to weather international crises. The increase of purchasing power and the investment opportunities in sectors like oil and natural gas, generation and transmission of electrical power, real estate and agribusiness places Brazil as an attractive choice on investment. The country is currently the sixth biggest FDI recipient in the world (UNCTAD). It has a privileged location in the east-central part of South America, where it borders almost all other South American countries, allowing companies to easily access Latin American and African markets. Modern, efficient and competitive, the Brazilian agribusiness sector is a