Slides ENG small · In the domestic arena, the government is committed to studying experiences learned and best international practices, incorporating them in the regulatory

S T R AT E G I C V I S I O N

MDR

ATTRACTION OF PRIVATE CAPITAL FOR REGIONAL DEVELOPMENT

INITIATIVES

STRATEGIC VISION

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.

OUR MISSION

ATTRACTION OF PRIVATE CAPITAL FOR REGIONAL

DEVELOPMENT INITIATIVES

STRATEGIC VISION

FEDERAL GOVERNMENT MEASURES TO INCREASE

PRIVATE CAPITAL PARTICIPATION IN REGIONAL DEVELOPMENT INITIATIVES

COMMITMENTS TO INTERNATIONAL

REQUIREMENTS FOR INVESTMENTS TO ATTRACT

PRIVATE CAPITAL TO REGIONAL DEVELOPMENT

INITIATIVESENVISAGED MODELS FOR

PRIVATE CAPITAL PARTICIPATION IN REGIONAL DEVELOPMENTO INITIATIVES

PRIORITY AREAS FOR PRIVATE CAPITAL

PARTICIPATION IN REGIONAL DEVELOPMENT INITIATIVES

TIMELINE

In the domestic arena, the government is committed to studying experiences learned and best international practices, incorporating them in the regulatory frameworks.

Elaborate Studies to Access Green Financing

Mechanisms

Preparation and Enactment of Updated Regulatory Frameworks

Restructuring and Creation of Regional Offices to Structure

Projects

Modernizing Mechanisms for Attracting National and

International Financial Resources

FEDERAL GOVERNMENT MEASURES TO INCREASE PRIVATE CAPITAL PARTICIPATION IN REGIONAL DEVELOPMENT INITIATIVES

Modernization ofRegulatory Frameworks

New Regulatory Framework for Sanitation

(Bill 3261/19)

New Bidding Law(Bill 1292/1995)

General Law of Concessions, PPP and

Public Consortia(Bill 7063/17)

Brazilian Charter for Smart Cities

(Public Consultation)

FEDERAL GOVERNMENT MEASURES TO INCREASE PRIVATE CAPITAL PARTICIPATION IN REGIONAL DEVELOPMENT INITIATIVES



STRATEGIC VISION

ENVISAGED MODELS FOR PRIVATE CAPITAL

PARTICIPATION IN REGIONAL DEVELOPMENTO INITIATIVES



TIMELINE FEDERAL GOVERNMENT MEASURES TO INCREASE



REQUIREMENTS FOR INVESTIMENTS TO ATTRACT


INITIATIVES

Recent international benchmarks on promoting quality investment are being studied and incorporated. Here are some examples of benchmarks that are being taken into consideration

GOVERNANCEPrivate Sector Participation in Water Infrastructure: OECD Checklist for Public Action (2009)Recommendation of the OECD Council on Principles for Public Governance of Public Private Partnerships (2012)OECD Framework for the Governance of Infrastructure (2016)Public Private Partnerships for Transport Infrastructure: Renegotiation and Economic Outcomes (2017)

DEVELOPMENTG20/World Bank Practical Solutions and Models for Addressing Obstacles to Institutional Investment in Infrastructure in Developing Countries (2014)G20 Principles of MDBs’ Strategy for Crowding-in Private Sector Finance for growth and sustainable development (2017)OECD Making Blended Finance Work for the SDGs (2018)

PLANNING AND PRIORITISATIONWorld Bank: An Alternative Approach to Project Selection - The Infrastructure Prioritization Framework (2016)Multilateral Development Banks APMG Public-Private Partnerships Certification Program

LEGAL FRAMEWORK• Recommendation of the OECD Council on Principles for Private

Sector Participation on Infrastructure (2007)• G20 Leading Practices on Promoting and Prioritizing Quality

Investment (2014)• Recommendation of the OECD Council on Policy Framework

for Investment – PFI (2015)• G20 Principles for Quality Infrastructure Investment (2019)

FINANCING• OECD Checklist for Foreign Direct Investment Incentive Policies

(2003)• G20/OECD High Level Principles of Long-Term Investment

Financing for Institutional Investors (2013)• G20/OECD Checklist on Long Term Investment Financing

Strategies and Institutional Investors (2014)

• World Bank/OECD Project Checklist for Public-Private Partnerships (2015)

• Recommendation of the OECD Council on Effective Public Investment Across Levels of Government (2014)

• G20/OECD Effective Approaches to Financial Instruments for Infrastructure Financing (2015)

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.

Guarantee of Providing

Quality Public Services to

the Population

Legal Certainty for

Investors

Financial Engineering in Accordance

with the Most Current

Principles of Blended Finance

Modern Project

Governance

Profitability and Predictability for Private Capital

Group of National and International Institutional

Partners

COMMITMENT TO INTERNATIONAL BEST PRACTICES FOR ATTRACTING PRIVATE INVESTMENT

Attention to most recent international investment certificates (ESG, SRI,

People-First Public Private Partnership)

ALIGNMENT WITH GLOBAL TRENDS OF DIGITAL TRANSFORMATION

Collaborative processWith municipal, state and federal

actors, private initiativeMCTIC PARTNERSHIP -CITIES CHAMBER 4.0

Brazilian Charter for Smart CitiesDocument containing the national strategy for

smart citiesWill be Launched in July 2020

(Under Public Consultation)

PRO-Cities / FGTSModernization

Urban Technology



STRATEGIC VISION








INITIATIVES ENVISAGED MODELS FOR PRIVATE CAPITAL


TRADITIONAL MODELS WITH MODERN GOVERNANCE AND FINANCIAL ENGENEERING

PUBLIC PRIVATE PARTNERSHIP (PPP)

MUNICIPAL CONSORTIUMS FOR PPP

PRIVATE PROJECTS’ FINANCING THROUGH GOVERNMENTAL FUNDS – Funds for Regional

Development

CONCESSIONSPERMITS

ENVISAGED MODELS FOR PRIVATE CAPITAL PARTICIPATION IN REGIONAL DEVELOPMENT INITIATIVES



STRATEGIC VISION










DEVELOPMENT OF WATER BASINS

SANITATIONAND

SOLID WASTE

PRODUCTIVE DEVELOPMENT

WATER URBAN DEVELOPMENT

HOUSING

PUBLIC LIGHTNING

URBAN MOBILITY

PRIORITY AREAS FOR PRIVATE CAPITAL PARTICIPATION IN REGIONAL DEVELOPMENT INITIATIVES

WATER

PRIORITY AREASDEVELOPMENT OF WATER BASINS

SANITATION AND SOLID WASTE TREATMENT

PRODUCTIVE DEVELOPMENT - IRRIGATION AND LOCAL CLUSTERS

Water Mains Pipelines Dams Recovery of River Springs

Protection of Areas of

Permanent Preservation

(APP)

ReforestationStabilization of

Erosive Processes

Sanitation and Solid Waste Management

CONSTRUCTIONS ON WATER SECURITY

PRESERVATION, CONSERVATION AND ENVIRONMENTAL RECOVERY


Parnaíba

São Francisco

Araguaia Tocantins

Taquari

PRIORITARY WATER BASINS


SÃO FRANCISCO BASIN

10 states

32.8 million people

927 municipalities

Alagoas, Bahia, Ceará, Paraíba, Pernambuco, Rio Grande do Norte,

Sergipe, Minas Gerais, Distrito Federal, Goiás

24 City Hubs

15% of Brazil´s population

80% urban population


KEY

SÃO FRANCISCO RIVER BASIN AND AREA OF INFLUENCE RIVER

RIVER

PARNAÍBA BASIN

3 states

5.2 million people

287 municipalities

Piauí, Maranhão, Ceará

9 City Hubs


2,5% of Brazil´s population


KEY

PARNAÍBA RIVER BASIN

RIVER

TAQUARI BASIN

2 states

395 Thousand people

18municipalities

Mato Grosso, Mato Grosso do Sul

1 City Hub


0.2% of Brazil´s population


KEY

TAQUARÍ RIVER BASIN

RIVER

ARAGUAIA – TOCANTINS BASIN

6 states

14.9 million people

436municipalities

Tocantins, Pará, Mato Grosso, Maranhão, Goiás, Distrito

Federal

16 City Hubs


7% of Brazil´s population


KEY

TOCANTINS RIVER BASIN

RIVER

The Project, which is organized along two main watertransfer axes, the North and the East Axis, in additionto its associated branches, aims to solve the waterscarcity problem in the Northernmost region of theBrazilian Northeast.

Studies in progress to seek partnership with theprivate sector for operation and maintenance.

Estimated operating cost: R$ 500 million/yearDeadline for studies: December 2020

North Axis

East Axis

Coastal Slopes

Apodi Branch

CAC

SalgadoBranch

EntremontesBranch

AgresteBranch

Agreste Extension

SÃO FRANCISCO RIVER INTEGRATION PROJECT (PISF):

Increase water security for the recipient basins thatpresent hydrological vulnerability390 benefited municipalities (12 million people)Ivestment of R$ 12 billion

DEVELOPMENT OF WATER BASINSWATER SECURITY

CURRENT MODELS OF THE SECTOR

Structuring ConstructionWorks

CHANNELS, PIPELINES, DAMS

Water Access Technologies

ÁGUA DOCE PROGRAM –DESALINATION SYSTEMS

LOW PRIVATE SECTOR PARTICIPATION IN INFRASTRUCTURE INTERVENTIONS AND OPERATIONS.

NORMATIVE IMPROVEMENTS –CONSTRUCTION OF

REMUNERATION MODELS

Path to be pursued:

SUSTAINABILITY OF INITIATIVES AND POSSIBILITY OF NEW MANAGEMENT MODELS

DIVERSIFICATION OF INVESTMENT SOURCES.

DEVELOPMENT OF WATER BASINSWATER SECURITY

WATER


PRODUCTIVE DEVELOPMENT - IRRIGATION AND LOCAL CLUSTERS


• 61% of the population is under assisted or hasno access to sewage collection services;

• New Legal Framework will promote privatesector participation in the Brazilian Market;

INVESTMENT NEED

BRAZILIAN MARKET – SEWAGE AND WATERSANITATION

• In order to meet that demand, US$ 51.1 billionare needed for new projects by 2033;

APPROXIMATELY US$ 50 BILLION

Rio Grande do Sul:

Auction 2T21

Porto Alegre (RS):

Auction 2T21

Amapá:Auction 1T21

Acre:Auction 1T21

Alagoas: Auction 3T20

Cariacica (ES): Auction 3T20

Rio de Janeiro: Auction 4T20

Ceará:Auction 3T21

Minas Gerais: Auction (TBD)

• Assisted Population:1.5 million people

• Estimated investment: R$ 2.5 billion

• Public Notice for Auction published on 29/05/20

• Assisted Population: 13.7 million of people

• Estimated investment: R$ 33.5 billion

• Public Consultation opened on 09/06/20

BRAZILIAN MARKET – SEWAGE AND WATER

SANITATION

UNIVERSALIZATION OF BASIC SANITATION

Data From the Project Structuring Fund (FEP / MDR)

STRUCTURING PREMISES

Cost recovery through tariff collec�on, joint water-sewage-waste collec�onCommon concessionsEnergy harnessing in sewage treatment plantsIncen�ves for technological innova�on

State Municipality % Executed Scheduled Auc�on

GO São Simão 61 2021

SUPPORTERS

SANITATION

BRAZILIAN MARKET

State Municipality % Executed ScheduledAuc�on

CE Crato 44 2020

RJ Volta Redonda Not Ini�ated

RN São Gonçalo do Amarante Not Ini�ated

PROJECTS 3 ASSISTED POPULATION 0.49 Mi

MUNICIPALITIES 3 CAPEX 631.45 Mi OPEX 2.07Bi

PROJECTS 1 ASSISTED POPULATION

MUNICIPALITIES 1 CAPEX 50.00 Mi OPEX 290.00 Mi

0.02 Mi

• 8% of the population has no solid wastecollection services and;

• There are more than a thousand garbagedumps operating in the country;

• There are 136 PPPs in solid waste managementin Brazil;

• To meet the demand, US$ 6.8 billion areneeded in new projects for solid wastemanagement by 2033.

SOLID WASTE TREATMENT

PROJECTS 4 ASSISTED POPULATION 1.95 Mi

MUNICIPALITIES 21 CAPEX 524.65 Mi OPEX 2.76 Bi

State Contractor Municipali�es % Executed ScheduledAuc�on

SP Municipality Bauru 59 2020

CE Estado do Ceará Altaneira, Barbalha, Caririaçu, Crato, Farias Brito, Jardim, Missão Velha, Nova Olinda e Santana do Cariri

36 2021

MG Consórcio CONVALE

Uberaba, Conceição das Alagoas, Sacramento, Delta, Planura, Campo Florido, Veríssimo e Água Comprida

57 2020

PI Municipality Teresina 58 2020

SUPPORTERS

Municipal Projects – Project Structuring Fund (FEP / MDR)

SOLID WASTE TREATMENT

BRAZILIAN MARKET

Structuring Premises

Cost recovery by collecting a joint fare:water-sewage-wasteCommon concessionsScope - divisible servicesIncentives for selective garbage collection and inclusion of waste pickersReduction of waste sent to landfillEnergy recovery mechanisms and biogas capture

The regulatory model for this sector was developed in cooperation with AFD, Expertise France and ABAR

WATER


PRODUCTIVE DEVELOPMENT – IRRIGATION AND LOCAL CLUSTERS


• 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 foodproduction.

Irrigated areas available for irrigation worldwide

Advantages of Irrigation

Produc�on: 3 a 3.5 �mes higher

Financial Return / Hectare: Up to 7.0 �mes higher

↑ Irrigated area:

↑ Produc�on

↓ Need to expand the

planted area

IRRIGATION

IRRIGATED AGRICULTURE POTENTIAL

Brazil

3rd Irrigable Area9th Irrigated Area

• 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).

• PUBLIC IRRIGATION PROJECTS

Production in Codevasf’s PublicIrrigation Projects (ton)

1994Growth Rate: 335%

2017

Gross Value of Production of Codevasf's Public Irrigation

Projects (US$ 1,000)

Growth Rate: 4.851%

IRRIGATION

ONGOING PROJECTS

Direct Jobs: 55,930

Indirect Jobs: 83,894

GNP 2000 (R$ 1.000) : 4,674,072

GNP 2015 (R$ 1.000) : 26,723,182

Average MHDI (2000): 0.545

Average MHDI (2010): 0.683

472%

Source: Codevasf Annual Report 2017, IBGE/ 2018.

Project/Pole Cul�vated Area(ha)

Produc�on(t)

Gross Value ofProduc�on (R$)

Bebedouro 1.259 22.436 47.499.439Nilo Coelho* 23.677 706.582 1.405.213.361Curaçá 4.105 127.589 162.150.346Mandacaru (1) 685 12.203 11.298.768Maniçoba 7.956 252.695 127.581.070Salitre 3.829 277.400 90.041.915Tourão (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

GRAPES GUAVAMANGOSUGAR CANE

MAIN PRODUCTS

Responsible for 98% of the grapes and 92% of the mangos exported in 2017;

Main importers: Europe, USA and South Africa.

IRRIGATION

PETROLINA/JUAZEIRO POLE (PE/BA)

# Project State

Produc�on Area(ha)

Gross Produc�on Value(US$ million)

Investments(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

IRRIGATION

ONGOING PROJECTS

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.

PRODUCERS (ASSOCIATIONS & COOPERATIVES)

THE MINISTRY PROVIDES SUPPORT ALONG THE PRODUCTIVE CHAIN

LOCAL CLUSTERS

Training in : Water & Energy, Infrastructure,

Credit, Technologies

Capital CertifiedAgroindustries

Formilizing theSupply

Value-added andInspected Products

Markets and Services (tourism and gastronomy)

URBAN DEVELOPMENT

PRIORITY AREAS

URBAN MOBILITY

PUBLIC LIGHTNING

HOUSING

HOUSING DEFICIT (2015) 6.35 MILLION HOUSES HOUSING DEFICIT BY COMPONENT

HOUSING DEFICIT

LARGE-SCALE HOUSING CONSTRUCTION

Source: João Pinheiro Foundation, 2020Formulation: National Housing Secretariat of the Ministry of Reginal Development

HOUSING NEEDS

KEY

Up to 50,000 HU50,001 – 100,000100,001 – 250,000251,001 – 500,000>500,000

HOUSING INADEQUACY – LACK OF INFRASTRUCTURE | 7.22 MILLION

HOUSES

HOUSING INADEQUACY BY COMPONENT

Urbanization

Lack of Infrastructure

Land Titling and Regularization

Inadequacy of Land Use

Housing Improvements

Housing Precarity

HOUSING NEEDS

KEY

Up to 50,000 HU50,001 – 100,000100,001 – 250,000251,001 – 500,000>500,000

PROJECTION OF HOUSING DEMAND

To meet the demand, it its estimated that, between 2019 and 2030, it will be necessary to build 1,235 housing units each year.

HOUSING DEMAND 2010 - 2040

Source: UFF, future demand for housing: demography, housing, and the market, 2018.

HOUSING NEEDS

HOUSING WORKS

Public Land (Union, States and Municipalities)

Joint ventures: Minimum concession value fixed by land price

Commercial areas

Mixed-income Housing

% Minimum Social Housing

POTENTIAL PPP PROJECTS

HOUSING CREDIT INSURANCE

WHAT IS IT ?

A financial instrument that reduces the credit risk, in the event of failure of payment by the borrower to the financial entity that granted a mortage credit for the purchase of a housing unit.

BENEFITS

• It allows the reduction of payments by the family; • It allows the reduction of interest rates due to the

reduction of the risk of the operation;• 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

WHAT IS IT ? BENEFITS

A fund that offers a guarantee to a percentage of the financial institution’s microcredit portfolio, reducing credit risk, in the event of failure of payment by borrowers. Designed for housing improvement and self-construction works.

• It allows the reduction of payments by the family • It allows the reduction of interest rates due to the

reduction of the risk of the operation• It guarantees the entire credit portfolio, reducing

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.


GUARANTEE FUND FOR HOUSING MICROCREDIT

WHAT IS IT ?

This is a cooperation with Germany’s GIZ that aims to develop a diagnosis, a Pilot Project, and financing mechanisms to raise international funds and green funds.

REQUALIFICATION OF HOUSING DEVELOPMENTS

PHASE 1 - Method for evaluating degraded housing

developments and testing.

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).


URBAN DEVELOPMENT

PRIORITY AREAS

PUBLIC LIGHTNING

HOUSING

URBAN MOBILITY

There are 18 million streetlights in Brazil, most of which use high pressure sodium and mercury vapor light bulbs.

US$ 2.8 billion/year are charged throughout the country through

specific taxes (COSIP).

Public Lighting has Legal certainty guaranteed by the Federal

Constitution of Brazil since 2002.

464 municipalities were identified by the World Bank1 as capable to perform

a PPP or a concession.

1 World Bank - https://multimidia.fnp.org.br/biblioteca/documentos/item/download/360_07e597cd536db440e1e817d6dcc0490e2 Radar PPP - https://www.radarppp.com/eventos/ip19/

PUBLIC LIGHTNING

• 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/

Demand :16 municipalities, 5.3 million people, 560 thousand streetlights.

Auction: 2nd semesters/2020(9 projects)

Contract Signature: 2nd semester/2020 (9 projects)

Type of contract: PPP

Investment: R$ 1.3 billion (CAPEX+OPEX).

Duration of the Contracts: 13-15 years.

Revenue: COSIP Tax Contribution.

Modelling and Studies: FEP –MDR, PPI, CAIXA (ongoing).

PUBLIC LIGHTNING

URBAN DEVELOPMENT

PRIORITY AREAS

PUBLIC LIGHTNING

HOUSING

URBAN MOBILITY

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;

The obsolete technology provides opportunities for gains in efficiency;

There is great potential for private sector participation

1 Source: h�p://mdr.gov.br/images/stories/ArquivosSEMOB/publicacoes/relatorioindicadores2018.pdf

Percentage of workers with travel time between home and work greater than 60 minutes

5% to 10%

10% to 15%

15% to 20%

More than 20%

URBAN MOBILITY IN BRAZIL

•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 – PORTFOLIO

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 to incorporate RFFSA's rail systems.

• Currently, it is a public company controlled by the Federal Government.

• Headquarters in the city of Rio de Janeiro / RJ.

• Created in 1980 to implement and operate a line of urban trains on the North Axis of the Metropolitan Region of Porto Alegre / RS.

URBAN MOBILITY

Empresa de Trens Urbanos de Porto Alegre S.A. (Trensurb)

Porto Alegre

Demand: 6 municipalities; 2.5 million ofinhabitants; 200 thousand passengers perweekday; 44.6 km electrified.

Importance of Asset: Increase theefficiency and quality of passenger service.

Revenue: Tariffs, real estate opportunitiesaround the stations and linked ventures(optical fiber lines, advertising, shops).

Responsible for Modelling and studies:BNDES/PPI/MDR.

No. Of Passengers in 2017: 55.06 millionExtension: 44.6 kmNo. Of Stations: 24Undercarriage Fleet: 40 Electric Multiple Unit (EMT)No. of Maintenance workshops: 3

URBAN MOBILITY

CBTU - Companhia Brasileira de Trens Urbanos

Demand: 17 Municipalities, 9.3 millioninhabitants, 869 million passengers/year,576 thousand passengers/day, 220 km long.

Importance of the Asset: Increase theefficiency and quality of the serviceprovided to the passengers served by thecompany.

Business Model: Possibility of selling theassets - National Privatization Plan (PND) –Public Auction or transfer to the privateinitiative, after the transfer to theto the states

Revenue: Tariffs, real estateopportunities around the stations and linkedventures (optical fiber lines, advertising,shops).

Responsible for Modelling and Studies:BNDES/PPI/MDR.

URBAN MOBILITY

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.

Basic Characteristics: Greenfield Responsible for the Studies: BNDES with the support of

the Ministry for Regional Development and Minas GeraisState 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

URBAN MOBILITY

LINE 2 OF THE METROPOLITAN REGION OF BELO HORIZONTE / MG SUBWAY

SÃO PAULO: Line 4 (Yellow) is the first subway line in Brazil to be operated by the

private sector in a PPP. Line 6 (Orange), which is under construction,

was also granted to the private sector through PPP.

TWO mobility projects executed by the Federal

Government

VLT of Downtown Rio de Janeiro and Port Area of Rio

de Janeiro

Salvador Subway

Municipal and state urban mobility PPPs: there are several in progress in the country that are not

part of the federal government's investment portfolio, and which are structured with

resources from local governments.

PUBLIC PRIVATE PARTNERSHIPS (PPPs)



STRATEGIC VISION



FEDERAL GOVERNMENT MEASURES TO INCREASE







TIMELINE

UP TO SEPTEMBER

2020

UP TO DECEMBER2020

2021

PR

ELIM

INA

RY

CO

NSU

LTA

TIO

NS

CO

NST

RU

CTI

ON

OF

PR

OJE

CTS

PR

OJE

CT

LAU

NC

HIN

G

• Presentation of the Strategic Vision

• First round of contacts with International and National Partners and Investors

• Incorporation of experiences and suggestions from international and national partners

• Post-Covid Plan Development

• RegulatoryModernization Process

• Construction ofProjects

• Launch of the Initiatives on the Market

TIMELINE

THANK YOU!OBRIGADO

ありがとうございました감사합니다

DANK UGRACIAS

اركش

הדותDANKE

GRAZIE

Documents

Slides ENG small · In the domestic arena, the government is committed to studying experiences learned and best international practices, incorporating them in the regulatory