-
8/7/2019 Xangai RT 14102010
1/49
Investments Opportunities in Bahia
Predictability, good regulation and respect for contracts.
Basics facts and Infrastructure Projects
-
8/7/2019 Xangai RT 14102010
2/49
Bahia Economic Outlook
Many projects and investments opportunities are available and
our mission is offers theopportunity to discover how to get
involved.
-
8/7/2019 Xangai RT 14102010
3/49
World Economic Outlook
-
8/7/2019 Xangai RT 14102010
4/49
China leadership role in the world economy
Asia Leading the Way.
The recent crisis has underlined the emergence of Asia as a
global economic powerhouse.
China and India are leading the way, but the phenomenonis by no
means limited to these two countries.
Within five years Asias economy will be about 50 percentlarger
than it is today, account for more than a third of
global output, and be comparable in size to the economiesof the
United States and Europe.
By 2030, Asian GDP will exceed that of the Group ofSeven major
industrial economies (G-7).
-
8/7/2019 Xangai RT 14102010
5/49
Asia Leading the Global Recovery
While the rich world puts its house in order, developing
countries are becoming a
new engine of global growth and a pulling force for advanced
economies.World Bank.
-
8/7/2019 Xangai RT 14102010
6/49
Trade Recovery
-
8/7/2019 Xangai RT 14102010
7/49
Bahia Challenges & Opportunities
-
8/7/2019 Xangai RT 14102010
8/49
Bahia is a new growth engine
-
8/7/2019 Xangai RT 14102010
9/49
-
8/7/2019 Xangai RT 14102010
10/49
-
8/7/2019 Xangai RT 14102010
11/49
Bahia Infrastructure sector offers profitable opportunities for
trade partners. Many
projects are available and our mission is offers the opportunity
to get involved.
-
8/7/2019 Xangai RT 14102010
12/49
-
8/7/2019 Xangai RT 14102010
13/49
Global Development 2010: Shifting Wealth
-
8/7/2019 Xangai RT 14102010
14/49
Perspectives on Global Development 2010
The dynamics of the global economy over the last 20 years, and
theeconomic rise of China and Brazil, highlights the increasing
interactionsbetween our countries through trade and foreign direct
investment.
As of 2008, developing countries were holding USD 4.2 trillion
inforeign currency reserves, more than one and a half times the
amountheld by rich countries.
These are just a few examples of a 20-year structural
transformation ofthe global economy in which the worlds economic
centre of gravity hasmoved from OECD members to emerging economies,
a phenomenonalshifting wealth.
Although the process has been ongoing for 20 years, the
opportunitiesfor our countries are only starting to be
understood.
-
8/7/2019 Xangai RT 14102010
15/49
Global recovery has advanced: activity in emerging
economies has been sustained by strong domestic demand
and the recovery of global trade. Major economies in Asia China,
India remain in the
lead, followed by Brazil in Latin America.
Chinas rapid economic growth since 1978 has resulted in
adoubling of the countrys GDP every 78 years.
This rapid growth bring a significant expansion in Chinas
external trade. The large economy has grown fast and hasbecome
quickly integrated with the world economy.
Potential gains from China-Brasil trade
-
8/7/2019 Xangai RT 14102010
16/49
-
8/7/2019 Xangai RT 14102010
17/49
-
8/7/2019 Xangai RT 14102010
18/49
Developing countries now account for around37% of global trade,
with South-South flows
making up about half of that total.
Last month Sinopec invest $7.1 billion todevelop offshore fields
like those that led to
the $70 billion Petrobras I.P.O.
Sinopec also make $10 billion aprocurement
contract e a 1.000 Km gasene.
Trade could be one of the main engines of
growth over the coming decade.The direct channels of interaction
between
China and Brazil such as trade and
foreign direct investment (FDI) have
been intensifying.
-
8/7/2019 Xangai RT 14102010
19/49
A win-win situation?
Improvements in the range and quality of exports,
greatertechnological dynamism, better prospects for doing business,
a larger
consumption base all these factors can create substantial
welfare
benefits for the whole world.
That is not to deny the challenges. Environmental
sustainability,
growing levels of inequality within countries and increased
competition are three significant issues raised by shifting
wealth. Thebirth pains of this new economic world order have also
been
accompanied by enormous global imbalances. These challenges
have
been building over the last two decades.
Despite these challenges, the overall picture is a positive one
for
development.
-
8/7/2019 Xangai RT 14102010
20/49
Economic policies should be:
Develop strategies to cacth the opportunities ofshifting
world.
promote foreign direct investment, learning the
lessons from successful clusters and usinginvestment links to
achieve technological innovationsystems;
Using sovereign wealth funds to promote growthand investment in
the economy;
respond to the growing demand for agriculturalexports to improve
agricultural productivity, throughgreater support to R&D and
extension services, andtechnological transfer.
-
8/7/2019 Xangai RT 14102010
21/49
Doing Business
Chinese visitors are still a rare
sight on the streets of
Brazilian cities - but not for
much longer. And when they
come, theyll know where toget their cash: Brazils biggest
bank Ita signed yesterday a
cooperation agreement with
CHINA UNIONPAY (CUP).
By this contract, CUP clients
with their 2.2 billion credit
and debit cards will be able to
withdraw at over 30,000 ItaATMs 24 hours a day.
-
8/7/2019 Xangai RT 14102010
22/49
-
8/7/2019 Xangai RT 14102010
23/49
International Trade Flows
-
8/7/2019 Xangai RT 14102010
24/49
The World Bank predicts
that Brazil will move from
being the tenth largest
economy in the world
today to the five biggest
economies by 2025
Brazil is one of the fast-
growing Bric economies
Brazil, Russia, India and
China that are reshaping
the international order.
The $67bn share offering
by Petrobras, the state oil
company, is the worldslargest ever and just the
expression of Brazils
emerging financial clout.
-
8/7/2019 Xangai RT 14102010
25/49
Brazil - Merchandise Exports by Region
In 2009 China became the leading trade partner of Brazil.
-
8/7/2019 Xangai RT 14102010
26/49
Brazil is one of the most attractive markets for infrastructure
in the World today thanks
to favourable macroeconomics, a competitive infrastructure
sector developing fast.
Macro-economics: 4% stable projected GDP growth, an increasing
population (close to
200 millions people), being one of the main recipient of foreign
direct investmentworldwide and a rapidly increasing motorization
rate, shape a bright future.
In Brazil northeast, the Bahia state is moving forward, with a
lot of projects in railways,
roads and ports. There are local and international players and a
stable legal frameworkallowing an increasing number of projects
being tendered.
The government Accelerated Growth prgram (PAC) is making
progresses. With
investments of more than US$500 billons planned in the period
2011-14. Opportunities
for investment in infrastructure in Brazil exist mainly in
roads, railways, aiports,stadiums and energy. The fact that Brazil
will host the two premier world sports events,
FIFA World Cup 2014 and Olympic Games 2016 is pushing all this
infrastructure
development.
Brazil is a relevant market for any global player in
infrastructure.
-
8/7/2019 Xangai RT 14102010
27/49
Strategic Logistic and Transport Plan
-
8/7/2019 Xangai RT 14102010
28/49
-
8/7/2019 Xangai RT 14102010
29/49
Commodities lead the way
-
8/7/2019 Xangai RT 14102010
30/49
!"
#$%&''
( $)$
-
8/7/2019 Xangai RT 14102010
31/49
Iron Ore Reserves: the importance of China to Bahia
Trade could be one of the main enginesof growth over the coming
decade.
-
8/7/2019 Xangai RT 14102010
32/49
Bahia East-west Railroad
Bahia Port to Central Brazil
Extension: 975 km
Total Value: R$ 4,8 billions
Term: 2011
China is the largest developing countryoutward investor with an
investmentstock estimated at more than USD 1trillion.
FDI in Bahia has also increased.
I d l T S
-
8/7/2019 Xangai RT 14102010
33/49
Railway, Port and AirportRailway, Port and Airport
Intermodal Transport System
SISTEMA PONTE SALVADOR ITAPARICA / BR 116 / BR 101 / BR 242
-
8/7/2019 Xangai RT 14102010
34/49
SISTEMA PONTE SALVADOR-ITAPARICA / BR-116 / BR-101 / BR-242
-
8/7/2019 Xangai RT 14102010
35/49
Intermodal Transport SystemPort - Airport - Railway - Roads
I ti f di t i t t (FDI)
-
8/7/2019 Xangai RT 14102010
36/49
Market and supplier access are the main factors
affectinginvestments entry. Also the access to customers and
suppliers of inputs are key determinants of FDI inflows.
Our Governments spend large sums of money to entice
foreign direct investment (FDI), offering generous tax
incentives. We believe that foreign firms will generatepositive
externalities on domestic firms.
The State fiscal Programs: Desenvolve and Probahiasupport with
tax isention the atraction of foreign direct
investment (FDI).
Incentives for direct investment (FDI)
-
8/7/2019 Xangai RT 14102010
37/49
*%
World Cup 2014
The Brazilian Strategy
The sense of urgency created by the advent of the World Cup in
2014 and the Olympics
in 2016 can be very positive for Brazil as this stirs the public
and private sectors to
carry out badly needed infrastructure investments.
-
8/7/2019 Xangai RT 14102010
38/49
INVESTMENT OPPORTUNITIES FOR
FIFA 2014 WORLD CUP IN THE CITY OF
SALVADOR, STATE OF BAHIA.
New Stadiun Fonte Nova
-
8/7/2019 Xangai RT 14102010
39/49
New Stadiun Fonte Nova
The sense of urgency created by the World Cup in 2014 and the
Olympics in 2016 canbe very positive for Brazil as this stirs the
public and private sectors to carry out badlyneeded infrastructure
investments.
-
8/7/2019 Xangai RT 14102010
40/49
This project now is under progress as Private Public
Partnership
(PPP) to build and operate a new World Cup 2014 stadium.
The stadium will feature seating for 50,000.
Transportation, energy, sanitation, and other infrastructures
ofthe project will be developed to meet international
standards.
Hosting of the World Football Cup in 2014 and the Olympicgames
in 2016 will stimulate much response, the construction
of roads, airports, and stadiums.
World Cup 2014 Stadium
Logistic Multimodal Transport Plataform
-
8/7/2019 Xangai RT 14102010
41/49
Logistic Multimodal Transport Plataform
Infrastructure sector offers profitable opportunities for trade
partners.
Opportunities in agribusiness and renewable energies: wind,
solar and biofuels.
Juazeiro Logistic Plataform
-
8/7/2019 Xangai RT 14102010
42/49
Juazeiro Logistic Plataform
Juazeiro has a privileged geographical location in the centerof
brazilian northeast, and the radial connection around
Juazeiro in addition to its network, facilitate the transport
of
merchandise and favors the intermodal infrastructure.
Nearby Petrolina has a good intermodal infrastructure and
facilities that connect with those of Juazeiro. Together, thetwo
interact synergistically to create a logistic platform.
Platforma Logstica do So Francisco is a PPPI project to
convert Juazeiro into the largest logistic platform in the
Brazilian Northeast.
Why Invest in Bahia?
-
8/7/2019 Xangai RT 14102010
43/49
The choice of industrial leaders:
Ford Motors Automotive Complex: U$ 1,9 Billioninvestment.
Production capacity for 250.000 vehicles / year.
Paper and Pulp Industry: Investments of more than U$1,5billion
over the last 5 years
Oil and Gas Industry: New oil discoveries raising Brazilian
reserves from 14th place to 4th place in the world.
Why Invest in Bahia?
Oil Industry Investments
-
8/7/2019 Xangai RT 14102010
44/49
Oil Industry Investments
Brazil has 12 billion barrels of proven oil reserves,
thesecond-largest in South America after Venezuela.
Petrobras has the worlds largest capital expenditureprogramme,
worth $220 billion over the next five years.
The discoveries of oil made by Petrobrs have made it ease
toforget that Brazil is already the worlds largest exporter of
coffe, sugar, chickens, beef and orange juice. It also
exports
vast amount of soya and iron ore, as well as other ores
andmetals.
-
8/7/2019 Xangai RT 14102010
45/49
-
8/7/2019 Xangai RT 14102010
46/49
The Great Trade Collapse To what extent has trade recoveredf h l
b l i ?
-
8/7/2019 Xangai RT 14102010
47/49
from the recent global recession?
Have the speed and extent of therecovery differed among
economies,
particularly between those that
suffered a banking crisis and those
that did not?
Has the recovery varied across
different product groups?
How has trade behaved in the wakeof previous banking and debt
crises?
What factors are associated with
sharp declines in trade following acrisis?
What are the implications for the
recovery of trade from the recent
crisis?
-
8/7/2019 Xangai RT 14102010
48/49
This presentation summarizes Bahia's economic prospects
-
8/7/2019 Xangai RT 14102010
49/49
Romeu Temporal
Economic Adviser
Governo do Estado da Bahia
Secretaria de Planejamento
This presentation summarizes Bahia s economic prospects.
The state's future looks bright; but it will require lots of
hard work
and leadership to bring the less fortunate people out of
poverty.
