Brazilian Investments Partnerships Program - PPI - November, 2020 - 17.11.2020 Santander

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Brazilian Investments Partnerships Program - PPI - November, 2020 - 17.11.2020 Santander
Brazilian Investments Partnerships
Program – PPI
                                     Scan the QR code to access
                                        the projects portfolio

November, 2020
Brazilian Investments Partnerships Program - PPI - November, 2020 - 17.11.2020 Santander
Reforms
The path for economic recovery

         Pension Reform                   Infrastructure Reform
         USD 160 billion to be saved in   More legal certainty,
         the next 10 years, limiting      transparency and
         privileges                       predictability for domestic and
                                          foreign investors

         Administrative Reform            Tax Reform
         Streamlining civil service to    Simplifying the tax system
         bring more efficiency            to boost economy
Brazilian Investments Partnerships Program - PPI - November, 2020 - 17.11.2020 Santander
Pro-Investment Bills:
The path for economic recovery

  • Law 14026 / 2020 – New Legal Framework for Sanitation
  • Bill 6407/2013 – New Gas Market
  • Bill 5877/2019 – Privatization of Eletrobras
  • Bill 232/2016 – Modernization of the Electric Power Sector
  • Bill 3178/2019 – Oil and Gas Production-Sharing Agreement (PSA)
  • Bill 7063/2017 – Concessions and PPPs
  • Bill 261/2018 – Railways Authorization
  • Bill 3729/2004 – Environmental Licensing
  • Bill 4199/2020 – Cabotage
  • PL 2646/2020 – Infrastructure debentures
  • Bill on Correios [The National Post] (New)
Brazilian Investments Partnerships Program - PPI - November, 2020 - 17.11.2020 Santander
PPI works as a hub for investments
                                         National
                                            and
                                       international
                                         investors
                      Sectorial                         Sectorial
                      Ministries                         Unions                               Adds on efficiency and value to the process
                                                                               Financial
Regulatory                                                                      Agents
 Agencies                                                                (banks, investment            Governance, coordination,
                                                                             funds, etc)
                                                                                                       monitoring and oversight

                                                                                                       Transparency, dialogue,
        Legislative
          Branch                      PPI                       Multilateral
                                                               Organizations
                                                                                                       credibility and predictability

                                                                                                       Well-designed projects

 Control                                                                Concessionaries                Technical and legal framework
 Entities                                                                                              enhancement

                      Licensing                        Embassies
                       Entities
                                       Subnational
                                      Governments
Brazilian Investments Partnerships Program - PPI - November, 2020 - 17.11.2020 Santander
PPI in Figures
  ACCOMPLISHED AUCTIONS/BIDS AND PROJECTS

                               Accomplished                              Concession
       Qualified
                               auctions/bids       Investments          fees/Bonuses
       projects                 and projects
                                               USD 142.6 billion     USD 28.4 billion
          343                     187          (BRL 712.8 billion)   (BRL 141.8 billion)

USD 1 = BRL 5 (August, 2020)
Brazilian Investments Partnerships Program - PPI - November, 2020 - 17.11.2020 Santander
36 Auctions carried out in 2019                                                                                                   Mining
                                                                                                                                   1 auction
                                                                                                                          Palmeirópolis (Auction 10/21)
                                                                  Railway
        Ports                                                     1 auction                                               Investments: USD 58.6 million
        13 auctions                                      North-South Railway (FNS) (Auction 3/18)
                                                                                                                          Concession Fee: USD 3.44 million
11 Terminals of liquid bulk                              Investments: USD 625.2 million                                             Oil and Gas
  • 3 in Cabedelo/PB (Auction 3/22)
  • 1 in Vitória/ES (Auction 3/22)
                                                         Concession Fee: USD 625.2 million                                          4 auctions
  • 5 in Belém/PA (Auction 4/5)                                                                                           Regular Offer (Auction 9/10)
  • 1 in Vila do Conde/PA (Auction 4/5)                               Highway
  • 1 in Santos/SP (Auction 8/13)                                     1 auction                                           Bonus: USD 5.05 million
                                                         BR-364/365/GO/MG (Auction 9/10)
1 Terminal of paper pulp in Paranaguá/PR (Auction 8/3)                                                                    Round 16 under the concession agreement (Auction 10/10)
                                                         Investments: USD 473.5 million
1 Terminal of Solid Bulk in Santos/SP (Auction 8/3)      Concession fee: lower toll fee (33% discount)                    Bonus: USD 2.04 billion
Investments: USD 241.3 million                                                                                            Petrobras Transfer of Rights Surplus (Auction 11/6)
Concession Fee: USD 187.5 million                                  Airports
                                                                   12 assets                                              Bonus: USD 16.07 billion
                                                         12 airports in 3 clusters (Auction 3/15):
        Energy                                                                                                            Round 6 Production Sharing Agreement - PSA (Auction 11/7)
                                                              Northeast:
        3 auctions                                              Recife/PE; João Pessoa ,Campina Grande/PB;
Generation                                                      Maceió/AL; Aracaju/SE; and Juazeiro do Norte/CE           Bonus: USD 1.16 billion
• New Energy A-4 (Auction 6/28)                              Midwest:
                                                                All in MT: Várzea Grande (Cuiabá), Alta Floresta, Barra   Total Bonus: USD 19.3 billion
• New Energy A-6 (Auction 10/18)
Transmission                                                    do Garças, Rondonópolis and Sinop.                        Total Investments: USD 96.38 billion
• 12 lots of transmission lines                              Southeast:
                                                                Vitória/ES and Macaé/ RJ                                      Lotex
Investments: USD 3.97 billion                            Investments: USD 809 million                                         1 auction (10/22)
Auction fee: lower power tariff                          Concession fee: USD 546.3 million                                 6
                                                                                                                          Concession Fee: USD 187.9 million
Brazilian Investments Partnerships Program - PPI - November, 2020 - 17.11.2020 Santander
From January to November/2020 (12 auctions)
 Railway                                                                                 Supporting subnational level entities
 1 contract renewal signed                               Public street lighting (Municipalities)
                                                        6 Auction                                              Wastewater (Municipality)
 Early extension of Rumo Malha Paulista’s concession                                                           1 Auction
 agreement                                   May 27     •   Aracajú/SE (FEP):                   14/August
                                                        •   Feira de Santana/BA (FEP):          14/August      •   Cariacica/ES (BNDES):      20/October
                                                        •   Franco da Rocha/SP (FEP):           14/August
 Investments: USD 1.16 billion                          •   Belém/PA (FEP):                     06/November    Investments: USD 116 million
 Concession fee: USD 440 million                        •   Sapucaia do Sul/RS (FEP):           06/November    Discount: -38%
                                                        •   Macapá/AP (BNDES):                  07/October
 Highway
 1 Auction
                                                                                                                                   Projected
 BR-101/SC                               21/fevereiro   Investments: USD 187 million                                             investments
                                                        Average discount: -56,2%
 Investments: USD 680 million
 Discount: -62%
                                                        Water and wastewater (BNDES)
                                                                                                                             USD 2,7 bi
 Ports                                                  1 Auction
 2 Auctions
                                                        •   Metropolitan region of Maceió/AL:     07/October
                                                                                                                             Concession fees/
 Port Terminals in Santos
 •   STS 14 and STS 14ª:                  28/October
                                                                                                                                Bonuses
 Investments: USD 76 million
 Concession fee: USD 101 million
                                                        Investments: USD 514 million
                                                        Concession fee: USD 400 million
                                                                                                                             USD 940 mi
Brazilian Investments Partnerships Program - PPI - November, 2020 - 17.11.2020 Santander
Current PPI Portfolio
Brazilian Investments Partnerships Program - PPI - November, 2020 - 17.11.2020 Santander
Current PPI Project Portfolio                                                        154 PROJECTS + 13 policies
Ports – 33                      Railways– 11                    Public Fishery                         Energy – 13                          Tourism – 4
4 Privatizations                4 concession renewals           Terminals – 8
28 Port Terminals               2 new concessions               8 Fishery Terminals                    2 Transmission Lines Auctions        4 Concessions of national
1 Waterway (Licensing)          4 investments in strategic      (Cabeledo/PB, Belém/PA,                2 Privatizations (Eletrobras and     heritage historical sites in
                                railway networks                Manaus/AM, Aracaju/AL, Natal/RN,       Nuclep)                              PB, PE and SP states
Defense and Security                                            Santos/SP, Cananeia/SP and
                                1 privatization                                                        TL Manaus-Boa Vista
(PPP’s) - 2                                                     Vitória/ES)
                                                                                                       5 Licensings
1 Air force                     Airports – 24                                                          2 Existing Energy Generation         Policies:
                                22 airports in 3 clusters       National Parks and
Communications                                                                                         (A-4 and A-5)                        • “Sea road” - Cabotage
                                2 rebiddings                    Forests - 11
1 Police Communications                                                                                2 New Energy Generation (A-4         • TRIIP (Road passenger
                                                                8 concessions of parks (Lençóis        and A-6)                               transport)
Economy – 5                                                     Maranhenses, Iguazu Waterfalls,                                             • PPP daycares
                                Highways – 20                   Jericoacoara, Aparados da
4 Privatizations (ABGF,         11 Concessions                  Serra/Serra Geral, Canela, São         Mining – 5                           • PPP prisons + correctional
EMGEA, Serpro and Dataprev)     2 Feasibilty assessments        Francisco de Paula, São Joaquim and                                           facilities
1 Lottery (Fixed ratio)         (8,370 km)                      Brasília)                              4 CPRM Mining Rights                 • Universalizing basic
                                7 Licensings                    3 concessions of forests               ANM Available Areas
                                                                                                                                              sanitation + solid waste
                                                                (Humaitá, Iquiri and Castanho)
                                                                                                       Communications and                   • PPP street Lighting
Oil and Gas – 5                 Health – 1                  H   Regional Development – 5               Technology – 5                       • The “projects factory”
Round 17 under the concession   1 Assessment (Hospital                                                                                      • Tourism
                                Fêmina/Porto Alegre)
agreement                                                       2 privatizations (CBTU and             3 Assessments for Privatization      • UBS (health basic units)
Shale Gas Fracking (Env.                                        Trensurb)                              (Telebras, National Post, and EBC)   • BidSim – Oil Auctions
Licensing)                      Supply                          2 assessments (PISF and Irrigation     1 Privatization (Ceitec)
Open Acreage                                                    Irecê)
                                                                                                                                            • Strategic minerals
2 Blocks of ToR+                2 privatizations                1 PPP – Belo Horizonte subway Line 2   1 Concession (5G)
                                (Ceasaminas and Ceagesp)
Brazilian Investments Partnerships Program - PPI - November, 2020 - 17.11.2020 Santander
Boa Vista

Airports
                                                                                                                        São Luiz
                                Tabatinga
                                                                 Manaus
                                                                                            Imperatriz
                                                     Tefé

                            Cruzeiro                                                                              Teresina
                             do Sul
                                                                                                                              Petrolina
                                              Rio           Porto Velho
                                            Branco                                                    Palmas

                                                                                                                                                  Central Block

                                                                                            Goiânia                                            7.4 million pax/year
                      North Cluster
                                                                                                                                          USD 360 million in investments
                4.6 million pax/year
              USD 296 million in investments                                     Londrina

                                                                                                         Curitiba
 22 Airports (3 clusters) : Round 6                                       Foz do Iguaçu                     Bacacheri

Investments            USD 1.22 billion                                                                   Navegantes                    South
                                                                                                           Joinville                    Block
                                                                  Uruguaiana
      2 Airport Rebiddings:                                                                                                 12.2 million pax/year
                                                                                 Bagé           Pelotas
    Natal/RN and Campinas/SP                                                                                               USD 570 million in investments
FICO
                                                               Mara Rosa/GO a Água                       Cross-
                                                                      Boa/MT
                                                                                                      Investment
Railways                     Ferrogrão
                                                                      383 km
                                                               Inv.: USD 546 million

                               Sinop/MT to
                              Miritituba/PA
                                  933 km
                           Inv.: USD 4.3 billion                                           EFC
        New                (under assessment)
                                                                                          892 km
                                                                                       Inv.: USD 1.65
     Concessions                                                                           billion

                                FIOL                                                      FCA
                         Ilhéus/BA a Caetité/BA                                          7,215 km
                                  537 km                                                Inv.: under
                           Inv.: USD 510 million                                        assessment

                                                                                         EFVM
                                                                                                             Renewals
                                                                                       895 km
                Railways Portfolio                                                 Inv.: USD 1.76
                                                                                        billion
               USD 13.2 billion
                 • new – USD 4.8 billion                                                  MRS
Investments      • renewal – USD 6.8 billion                                             1.686 km
                                                                                       Inv.: USD 3.35
                 • privatization – USD 1.6 billion                                         billion

               12,789 Km:                            Ferroeste
                • new – 1,470 km                        248 km
Total Length    • renewal* – 11,071 km                Inv.: R$ 8 bi

                • privatization: 248 km
BR-135/316/MA
                                                                                                   438 km
                                                                                  Entr. BR-135 (via Pedrinhas) – Entr.
                                                                                  Itaqui/Bacanga;

Highways
                                                                                  Acess to Tirirical Airport – Entr. BR-316(B)
                                                                                  (Peritoró);
                                                                                  Entr. BR-135(B)/MA-020 (Peritoró) – Entr. BR-
                               BR-163/MT and BR-230/PA                            226(B)/343(A) (Div. MA/PI) (Teresina/Timon)               BR-158/MT/PA
                                       970 km                                                                                                 1,135 km
                                 Section between Sinop/MT and
                                                                                                                                        Ribeirão Cascalheira/MT and
                                          Miritituba/PA
                                                                                                                                                 Marabá/PA

                                                                                                                                   BR-153/080/414/GO/TO
                                                                                                                                         850.7 km
                                                                                                                                  Section between Anápolis/GO and
                                                                                                                                       Aliança do Tocantins/TO

                                                                                                                                         BR-116/493/RJ/MG (CRT)
                                                                                                                                                 711 km
                                                                                                                                               Section of BR-116/RJ
                                                                                                                                         Section between Além Paraíba/RJ
                                                                                                                                                  and BR-040/MG
                                                Concession of 7,238 km
                                                                                                                  BR-381/MG and BR-262/MG/ES -
                                                     of highways
                                                                                                                            672 km
                                                                                                                      Section of BR-381/MG between Belo
                                                      Rebidding                                                      Horizonte/MG and Gov. Valadares/MG
                                                                                                                     Section of BR-262/MG/ S between João
                                                 BR-040/DF/GO/MG –                                                        Monlevade/MG and Viana/ES
         Highways Portfolio                           936.7 km
                                                Section between Brasília/DF and                                          BR-040/495/MG/RJ (Concer)
Investments               USD 32.85 bi                  Juiz de Fora/MG
                                                                                                                                  211 km
                                                                                                                          Section between Juiz de Fora/MG and
Total Length              18,377 km                    Integrated Highways                                                          Rio de Janeiro/RJ
                                                         of Paraná state –
New Concessions           9,067 km                           4,114 km                                              BR-116/465/101 /SP/RJ (Dutra)
                                                                                                                            598.5 km
Assessments    +          8,373 km                   BR-470/282/153/SC                                             Section between Rio de Janeiro/RJ and São
                                                                                                                                   Paulo/SP
                                                          502 km
Rebidding                 936.7 km                        Section between
                                                       Navegantes/SC and the
                                                           frontier RS/SC
Highways – next auctions (2021)
Highway                                                                  Length     Capex (USD)     Auction
BR-153/080/414/GO/TO                                                     850 km      1.7 billion    2021/Q1
 • Road section between Anápolis/GO and Aliança do Tocantins/TO
BR-163/MT and BR-230/PA                                                  970 km      380 million    2021/Q1
 • Road section between Sinop/MT and Miritituba/PA
BR-381/MG and BR-262/MG/ES
 • Road section of BR-381/MG between Belo Horizonte/MG and Gov.
                                                                         672 km      1.56 billion   2021/Q1
   Valadares/MG
 • Road section of BR-262/MG/ES between João Monlevade/MG and Viana/ES
BR-116/465/101 /SP/RJ (Dutra)                                            598.5 km    3.0 billion    2021/Q3
 • Road section between Rio de Janeiro/RJ and São Paulo/SP
BR-470/282/153/SC                                                        502 km      1.6 billion    2021/Q4
 • Road section between Navegantes/SC and the frontier RS/SC
RODOVIAS INTEGRADAS DO PARANÁ
(BR- 153/158/163/272/277/369/373/376/476/PR and relevant state-level     4,114 km    8.4 billion    2021/Q4
highways)
BR-116/493/RJ/MG (CRT)                                                   711 km      1.78 billion   2021/Q4
 • BR-116/RJ and Além Paraíba/RJ to BR-040
Santana/AP (1)    Vila do Conde/PA (1)
                                                  Liquid bulk       Liquid and solid bulk

    Ports                                                                      Itaqui/MA (4)
                                                                               Liquid bulk                  Fortaleza/CE (2)
                                                                                                            Passengers and vegetal bulk

                                                                                                            Areia Branca/RN (1)
                                                                                                            Sea salt

                                                                                                        Maceió/AL (4)
                                                                                                        Liquid and vegetable bulk

                                                                                               Aratu/BA (2)
                                                                                               Solid bulk

                                                                                             Port of Vitória/ES - CODESA
                              Paranaguá/PR (3)
                              Vehicles, General cargo and Liquids
                                                                                              Port of São Sebastião/SP
       Ongoing Ports portfolio
                                                                                            Santos/SP (2)
Investments           USD 3.34 billion                                                      Liquid bulk/fuel

Port leasings               20
                                                                                 Port of Santos/SP – CODESP
Port privatizations          4
                                                                    Port of Itajaí/SC
Ports - Privatizations

Port of Santos/SP (CODESP)                     Port of Itajaí/SC
Status: Feasibility assessments
                                               Status: Feasibility assessments
Delivery and approval of
                                               Bidding Notice: : 2022/Q3
Assessments: 2021/Q1
                                               Auction: 2022/Q4
Public Hearing: 2021/Q2
                                               Investments: under assessment
Investments: USD 2.1 billion

Port of Vitória/ES (CODESA)       Port of São Sebastião/SP
Status: Feasibility assessments   Status: Feasibility assessments
Bidding Notice: 2021/Q3           Bidding Notice: : 2022/Q2
Auction: 2021/Q4                  Auction: 2022/Q3
Investments: USD 440 million      Investments: USD115 million
                                                         15
Fishery Terminal of
Fishery Terminals                                                Manaus (AM)

A Public Fishery Terminal (PFT) is the structure                        Fishery Terminal of
necessary for fish handling and storage activities,                             Belém (PA)
trading post, fish processing and support for vessel
navigation.
                                                                                  Fishery Terminal of
Making PFTs operational is crucial for the provision of                                    Natal (RN)
an adequate phytosanitary environment, therefore for
the development of the fish industry.                                                   Fishery Terminal of
                                                                                             Cabedelo (PB)

The PFT area can include facilities such                                           Fishery Terminal of
as anchorages, docks,          wharves,                                                   Aracaju (SE)
berthing bridges and piers, cold
storage warehouses, buildings and                                     Fishery Terminal of
infrastructure for protection and                                             Vitória (ES)
waterway access.                                           Fishery Terminals of
                                                          Santos and Cananeia
                                                                          (SP)
Electric Power

           Energy portfolio (values in USD billions)
License + Implementation of the Transmission
                                                                     0.360
Line Manaus – Boa Vista
Existing Energy Generation (A-4 and A-5)                            1.88**
New Energy Generation (A-4 and A-6)                                 2.6***
Transmission Facilities (nº 1/20 and nº 7/20)                         1.48             Transmission Auctions
                                                                                        nº 1/20 *
                           Total                                      6.32
                                                                                       Transmission Line –
* Projection based on the replacement of 100% of the contracts due in 2024 and 2025,
through greenfield plants                                                              Manaus/AM -Boa Vista/RR
** Reference based on the results of A-4 and A-6 auctions, held in 2019
Oil and Gas
    Round 17
    Open Acreage
    Transfer of rights                                                                              Potiguar Basin
                                  Data
              Capacity                   96 blocks (offshore)
                                         Potiguar, Campos, Santos and
              Basins (4)
Round 17                                 Pelotas
                                         708 blocks (onshore and offshore)
              Capacity
                                         + 3 areas of marginal fields
              Minimum bonus for all
  Open                                   USD 580 million
              blocks + areas
 Acreage
              Bidding Notice for the
                                         Public session scheduled for                        Campos Basin
              2nd cycle (Published on
                                         December 3, 2020
              July 7)                                                               Transfer of rights
              Blocks (2)                 Sépia and Atapu                      Santos Basin
              Expected Investments
Transfer of                              USD 29 billion
              (CAPEX + OPEX)                                                 Pelotas Basin
  Rights
              Auction (planned
                                         Q2/2021
              schedule)
Mining                                                           Kaolin - Rio Capim/PA

                                                                                         Phosphate - Miriri/PB/PE

                                        Copper - Bom Jardim/GO

          Mining legal rights

 Investments          USD 278 million

+ 56,000 available areas in the National
       Mining Agency portfolio                                   Coal - Candiota/RS
  (1st Bidding Round: November 25)
TL Manaus –                        Tocantins
                              Boa Vista                       Waterway Rock
                                                                Dredging
Supporting
environmental                      Highway
                                BR-319/AM/RO
licensing and                                      Highway
                                                  BR-242/MT    Highway
expropriation                                                 BR-158/MT

                                      Highway                                    Highway
                                   BR-174/RO/MT                               BR-135/BA/MG
 Transmission Line
  • Manaus - Boa vista                             Highway                      Highway
 Shale Gas Fracking                               BR-080/MT                    BR-135/MG
  • site to be defined

   Hydropower Plants
   •   Castanheira – MT
   •   Telêmaco Borba – PR
   •   Tabajara – RO
   •   Bem Querer – RR
   •   Formoso – MG
National Parks             National Park of
                 Lençóis Maranhenses (MA)

                           National Park of
                          Jericoacoara (CE)

                           National Park of
                               Brasília (DF)

                           National Park of
                         Foz do Iguaçu (PR)

                           National Park of
                           São Joaquim/SC

                            National Park of
                      Aparados da Serra (RS)
                        and Serra Geral (SC)
Concession of Forests
for recreation
                        Canela (RS)

                                      São Francisco
                                      de Paula (RS)
Concession of forests                                                                              Brazil has the largest
                                                                                                   tropical forest and the
The National Forests of Iquiri, Humaitá and                                                        2nd largest forest area
Gleba Castanho, all in the State of Amazonas,                  Gleba Castanho                      in the world
have been qualified at the 12th meeting of
the PPI Council – Status of national priority.
                                                                    Floresta Nacional de
Payments to the Federal Government by the         Floresta Nacional Humaitá
concessionaires are destined to the states        de Iquiri
and municipalities where the forests are
located, to the National Fund for Forestry
Development and to ICMBio - Chico Mendes
Institute for Biodiversity Conservation.

Computerized system for managing concession contracts.
Procedural manuals for sustainable management.

Sustainable management with greater preservation of forests, less deforestation, less fires, greater control
and a better fight against illegal activities.
Irrigation Perimeter in Irecê/BA
                      Features: Assessments of alternative partnerships for concession aimed at harnessing the hydro-
                      agricultural potential of the area. Comprises investments for implementing, operating, maintaining
                      and improving management. Project surface: 47,924 hectares for irrigation in the cities of Xique-Xique
                      and Itaguazu, central region of the state of Bahia - São Francisco river basin.
                      Object of assessments: Exploiting irrigated agriculture in order to accomplish infrastructure works
                      (channels and water pumping stations) in the area of Stages 2 to 9, and operating and maintaining the
                      entire project`s infrastructure for Shared Usage (Stages 1 to 9). Production potential: 16,000 tons of
                      fruit and 83,000 tons of grains per year, only in Stages 1 and 2, with estimates of generation of
                      120,000 direct and indirect employments (9 stages). Estimated Annual Gross Production Value: USD
                      202 million/year.

                      Model: Public-Private Partnership of the BR        Executed investments: USD 240 million (Pumping
                      Federal Gov jointly with subnational level         Station of 10.5 m³/s and 42 km of channels)
                      entities                                           Projected CAPEX investments: USD 140 million
                      Structurer:   under     assessment     with        Contract term: to be defined
                      IFC/World Bank.                                    Auction criterion: to be defined
                      Grantor: BR Government/Codevasf                    Public Guarantees: Infrastructure Guarantee Fund
                      Sector Ministry: Ministry of Regional              – FGIE
                      Development - MDR                                  Status: Revision of existing assessments
                      Regulator: None                                    Auction: 2021
                      Regulation: Mechanism defined in the
                      concession contract
Auction on 5G technology
                                                                                     •   Grantor: ANATEL
Most important auction on radio frequency spectrum ever held
in Brazil, due to the amount of spectrum to be offered – four                        •   Preliminary investment estimates +
                                                                                         concession fees: USD 4 billion
times the total currently available for mobile networks in the
country – and the diversity of options, as the spectrum will be                      •   Expected date for the auction: March / 21
made available in four different frequency bands.                                    •   Public Hearing concluded in 4/17/20
                                                                                     •   Next steps: Technical Pricing Assessment of
                                                                                         the object and commitments of the bidding
                                                               26cobertura
                                                                    GHz                  notice in progress
Alta700   MHz Baixa2,3
     cobertura               GHz Baixa3,5
                         cobertura            GHz Baixíssima
                                          cobertura
and baixa
     20 MHz        and alta
                        90 Capacity
                            MHz          400Capacity’
                                    and alta MHz              3200 MHz
                                                       and altíssima  Capacity       •   Contract Term: 20 years (with the exception
Capacity
                                                      Tudo  quelow
                                                                 existe disponível
                                                                                         of the 700 MHz band with a term until
   Wide coverage                                4x
                     Low coverage and Low coverage  and  Very       coverage  and
   and low capacity high capacity     high capacity paratheserviços
                                                              highestmóveis
                                                                       capacity
                                                                                         12/8/2029 and an extension under the
                                                                                         terms in force at the time)
                                                          Everything available for
                                                    4x    mobile services
Preliminary estimates:
Privatizations      USD 11,2 billion      Assessments
FEDERAL PRIVATIZATIONS – PERSPECTIVE: USD 12.5 Billion

       3Q20                  4Q20                    1Q21       2Q21   3Q21   4Q21

AUCTIONS - PRIVATIZATIONS

LIQUIDATIONS

SALE OF SHARES / DELIVERY OF QUOTAS TO THE FEDERAL GOVERNMENT
The National Post Service

   Biggest employer               11,177 post offices                  USD 3.6 billion
   company in Brazil             Located in almost every city in
 More than 105,000 employees                                            2018 Net Revenue
                                              Brazil

Status: assessments in progress aiming to evaluate alternatives for partnering with the
private sector
- Draft bill to enable services delegation of powers to private partner(s)
PPI projects for supporting
subnational level partnerships
Current PPI pipeline for supporting subnational level projects
Public Lighting – 22                        Sewage – 6                      Solid Waste - 4                                Daycares - 2

FEP (cities): 15                            FEP (3 cities):                 FEP (4)                                        2 PPP’s
                                            • Crato/CE                      • Teresina/PI                                  • Teresina/PI (40 units)
•   Nova Lima/MG       •   Cachoeiro do                                                                                    • State of Alagoas (67 units)
                                            • Volta Redonda /RJ             • Cities cluster Convale/MG
•   Campinas/SP            Itapemirim/ES
                                            • São Gonçalo do Amarante/RN        (Uberaba, Conceição das Alagoas,
•   Patos de Minas     •   Camaçari/BA                                          Sacramento, Delta, Planura, Campo
•   Toledo/PR          •   Barreiras/BA     BNDES (3 states):                                                              Prisons - 2
                                                                                Florido, Veríssimo and Água Comprida)
•   Corumbá            •   Alagoinhas/BA    • State of Rio Grande do Sul    •   Bauru/SP                                   2 PPP’s
•   Valparaíso de      •   Senador          • State of Ceará                •   Cities cluster Comares/CE                  • State of Rio Grande do Sul
    Goiás/GO               Canedo/GO        • State of Bahia                    (Altaneira, Barbalha, Caririaçu, Crato,    • State of Santa Catarina
                                                                                Farias Brito, Jardim, Missão Velha, Nova
•   Crato/CE           •   Ariquemes/RO                                         Olinda and Santana do Cariri)
•   Colatina/ES        •   Nova Iguaçu/RJ                                                                                  Correctional facilities- 2
                                            Water, Sewage and Solid Urban   Water and Sewage Treatment
                                            Waste Treatment Supply - 1      Supply - 6                                     2 PPP’s
                                                                                                                           • State of Minas Gerais
BNDES (cities): 7                                                           BNDES (6)                                      • State of Santa Catarina
                                            FEP (1 city)                    • State of Rio de Janeiro
•   Curitiba/PR        •   Petrolina/PE     • São Simão/GO                  • State of Acre
•
•
    Pelotas/RS
    Consórcio
    Centro-Sul
                       •
                       •
                           Caruaru/PE
                           Jaboatão dos
                           Guararapes/PE
                                            Urban Drainage - 2
                                                                            • State of Amapá
                                                                            • State of Paraíba
                                                                            • State of Minas Gerais
                                                                                                                                     48
                                                                                                                                    Projects
                                                                            • Porto Alegre/RS (city)
•   Contagem/MG                             FEP (cities)
                                            • Porto Alegre/RS               Hospital – 1                                                                H
                                            • Teresina/PI
                                                                            Guarulhos/SP: Municipal Hospital of Children and Teenagers (HMCA)
Basic sanitation projects
                                     State of Amapá                                                                2 million
                                                                                                        02                          Under assessment
                                                                                Urban dreinage                     (not to add)
                                                       State of                                                      Entitled             Projected
                                                                  São Gonçalo                         Projects                        Capex+ Opex - Total
                                                        Ceará                                                       Population
                                                                  do Amarante
                                            Teresina                            Urban solid waste       04         2 million        USD 660 million*
                                                                                 (pilot projects)
                                                Consortia         Crato                                              Entitled             Projected
                                                                                                      Projects
                                                 Comares                                                            Population        Capex+ Opex - Total

State of Acre
                                                                                                        04          528 mil         USD 600 million*
                                                                                Basic sanitation
                                                                                                                     Entitled             Projected
                                                                                                      Projects                        Capex+ Opex - Total
                                                                                                                    Population
                               São Simão
                                           Consortia
                                                                                                        02        6,1 million       USD 2.1 billion
                                            Convale                               Wastewater
                                                                                                                     Entitled     Projected investments - Total
                             Bauru                                                                    Projects
                                                                                                                    Population
                                                            State of
                                     Volta Redonda       Rio de Janeiro
   Urban dreinage - FEP                                                                                 04        16,5 million      USD 8.1 billion
                                                                            Water and wastewater
   Urban solid waste - FEP
                                                                                                                     Entitled     Projected investments - Total
                                                                                                      Projects
   Basic sanitation - FEP                                                                                           Population
   Water distribution and            Porto Alegre
   sewage - BNDES                                                                    Total          16 Projects    25.1 million USD 11.4 billion
                                    State of
    Sewage - BNDES             Rio Grande do Sul
Banco de serviços: destaque para saneamento
Service    bank: emphasis on sanitation (BNDES)
                                 Cariacica /   Rio de Janeiro                              Rio Grande     Porto Alegre /                    Minas
                Alagoas state                                   Acre state   Amapá state                                   Ceará state
                                  ES state          state                                  do Sul state      RS state                     Gerais state

               Concession of                   Concession of      Full          Full
                                                                                                          Concession of
  Business         water          Sewage           water     concession of concession of    Sewage                          Sewage
                                                                                                          water and/or                   To be defined
   Model        distribution        PPP         distribution   water and     water and        PPP                             PPP
                                                                                                            sewage
                and sewage                      and sewage      sewage        sewage
  Entitled
                   1,393         423,000        13,739,000       629,000      742,000      1,890,000       1,479,000       4,173,000        11,330
 Population

   Projected
                USD 520 mi      USD 116 mi      USD 6.7 bi      USD 257 mi   USD 624 mi    USD 600 mi      USD 300 mi      USD 1.72 bi   To be defined
 Investments

                  Auction     Auction
                                                 Auction         Auction      Auction       Auction         Auction         Auction
 Next steps    September, 30 October, 20                                                                                                 To be defined
                                                 Q1/2021         Q1/2021      Q1/2021       Q2/2021         Q2/2021         Q3/2021
                (completed) (completed)
For more information: http://saneamento.bndes.gov.br/.

                                Entitled population                                             Total projected investment
                                36,000,000                                                      USD 10.8 billion
Banco de serviços: destaque para saneamento
                                            Sanitation projects - FEP
                                                                                                     São Gonçalo
                                     Consortia  Consortia    São                             Volta                              Porto
               Bauru/SP Teresina/PI                                            Crato/CE              do Amarante/ Teresina/PI
                                    Convale/MG Comares/CE Simão/GO                        Redonda/RJ                          Alegre/RS
                                                                                                         RN

                                                                Concession
  Business     Concession Concession Concession      Concession MSW, water Concession Concession Concession Concession Concession
   Model         MSW        MSW        MSW             MSW         and     wastewater wastewater wastewater dreinage    dreinage
                                                                wastewater
  Entitled
 Population
                376,000     865,000      424,000       343,000       20,000    132,000     273,000     102,000     860,000    1.13 million

   Projected
 Investments
             USD 23.6 mi USD 45 mi USD 26.4 mi        USD 10 mi    USD 10 mi USD 38.2 mi USD 64 mi    USD 24 mi        -           -

                 Auction     Auction     Auction       Auction       Auction    Auction     Auction     Auction     Auction     Auction
Auction data
                Q1 2021     Q2 2021     Q1 2021        Q2 2021      Q2 2021    Q1 2021     Q1 2022     Q4 2021     Q1 2022     Q2 2022
For more information: https://www.ppi.gov.br/Projects-concessoes-e-parcerias

                               Entitled population                                        Total projected investment
                               4.5 million                                                USD 240 million
Public Security and Education
Banco de serviços: destaque para saneamento

                                                        Santa       Rio Grande     Minas          Santa
                           Alagoas      Teresina/PI
                                                       Catarina       do Sul       Gerais        Catarina

                           Daycare       Daycare                                  Correctional   Correctional
               Area                                    Prisons        Prisons      facilities     facilities
                           centers       centers

              Business
                             PPP           PPP           PPP           PPP           PPP            PPP
               Model

              Entitled      17 mil        27 mil
                                                      3.000 spots   1.125 spots      Tbd            Tbd
             population    children      children

              Projected
             investment   315 million   200 million   200 million    70 million   35 million     35 million
                BRL

                           Auction       Auction       Auction       Auction      Auction        Auction
             Next steps
                           Q3/2022       Q2/2022       Q2/2022       Q2/2022      Q2/2022        Q2/2022
Next steps

November, 2020
Next PPI auctions in 2020
                                                         2nd Half/2020 (17 assets)
Railways (3)                                 Port Terminals (4)                                Sunational Levels: states and municipalities utilities (1)
• Renewal EFVM                               • 1 in Paranaguá/PR (December 18)                 • 1 Public Lighting PPPs:
• Renewal EFC                                • 2 in Aratu/BA (December 18)                             •Petrolina/PE (November, 18)
• FICO                                       • 1 in Maceió/AL (December 18)

Energy (1)                                   Mining Rights (3)
• Transmission Lines 01/2020 (December 17)   • Phosphate - Miriri (PB)
                                             • Copper - Bom Jardim de Goiás (GO)
                                             • 1st round - ANM available áreas (November 25)

Oil and Gas (1)
• 2nd cycle of Open Acreage (December 03)

Privatizations (1)                           National Parks and Forests (2)
• Ceitec – dissolution                       • Aparados da Serra (RS) and Serra Geral (SC)
                                               (December, 15)                                  • Obs. There is also the prospect of delivering Environmental
                                             • Humaitá Forest (AM)                               Licensing: The Preliminary Licensing (LP) of the Pedral do Lourenço
                                                                                                 / PA waterway
PPI Auctions - 2021
                                                                                 2021 (120 assets)
Port Terminals (16)                      Airports – Round 6 (24)                      Privatization (13)                               Subnational level utilities (24)
• 3 Terminals in the Port of Maceió/AL   22 airports in 3 blocks                      • Eletrobras          • TRENSURB                 • 4 Concessions of Urban Solid Waste
• 2 in the Port of Fotaleza/CE           • Block North                                • ABGF                • CBTU                            • Bauru (SP)
• 2 in the Port of Santos/SP             • Block South                                • EMGEA               • SERPRO                          • Consortia Comares (CE)
• 2 in the Port of Paranaguá/PR          • Block Central                              • CEASAMINAS          • DATAPREV                        •Teresina (PI)
• 1 in the Port of Vila do Conde/PA      2 airports                                   • CEAGESP             • TELEBRAS                        •Consortia Convale/MG
• 1 in the Port of Areia Branca/RN                                                    • NUCLEP              • CORREIOS
                                         • Viracopos – Campinas (SP)                                                                   • 1 Concession of Urban Solid Waste, Water and
• 4 in the Port of Itaqui/MA             • São Gonçalo do Amarante – Natal (RN)       • CODESA                                         Sewage supply: São Simão (GO)
• 1 in the Port of Santana/AP
                                                                                      Mining rights (2)                                • 4 Concessions of water and wastewater
                                         Fishery Terminals (8)
Highways (7):                            • Cabedelo (PB)                              • Coal in Candiota (RS)                                 •State of Acre
                                         • Belém (PA)                                 • Kaolin in Rio Capim (PA)                              •State of Amapa
• BR-116/465/101 (SP/RJ) - Dutra
• BR-470/282/153 (SC)                    • Manaus (AM)                                Regional Development (2)                                •State of Rio de Janeiro
• BR-381/262 (MG/ES)                     • Aracajú (SE)                                                                                       •Porto Alegre
                                         • Natal (RN)                                 • Irrigation Perimeter in Irecê (BA)
• BR-116/493 (RJ/MG) - CRT                                                                                                             • 5 Concessions of wastewater services
                                         • Vitória (ES)                               • PISF
• Integrated Highways of Paraná state                                                                                                         • Crato (CE)
• BR-153/080/414 (GO/TO)                 • Santos and Cananéia (SP)                   Urban mobility (1)                                      •São Gonçalo do Amarante (RN)
• BR-163/230 (MT/PA)                     Parks (5)                                                                                            •Volta Redonda (RJ)
                                                                                      • Belo Horizonte subway Line 2
Railways (4)                             • Lençóis Maranhenses (MA)                                                                           •State of Rio Grande do Sul
                                         • Jericoacoara (CE)                                                                                  •State of Ceara
• Ferrogrão           • Renewal FCA                                                   Obs. There is a prospect of decision-making on
• Renewal MRS         • FIOL (BA)        • Iguaçu (PR)                                environmental licenses (8):
                                                                                                                                       • 10 Public Lighting PPPs:
                                         • Canela (RS)                                • Construction licensing of BR-080/MT
Defense and Security (2)                 • São Francisco de Paula (RS)                                                                 • Cachoeiro do               • Toledo (PR)
                                                                                      • Construction licenseing of BR-158/MT
                                                                                      • Preliminary Licensing of BR-319/AM/RO
                                                                                                                                        Itapemirim (ES)             • Barreiras (BA)
• Comaer PPP                             Oil and Gas (3):                                                                              • Camaçari (BA)              • Crato (CE)
• Security Forces Communication PPP                                                   • Preliminary Licensings of HPPs of
                                         • 2 blocks – Transfer of Rights (Sépia and     Castanheira/MT, Formoso/MG, Tabajara/RO and    • Corumbá (MS)               • Valparaíso de
Telecommunications (1)                     Atapu)                                       Telêmaco Borba/PR                              • Nova Lima (MG)              Goiás (GO)
                                         • Round 17 under concession                  • Unlocking BR-135-BA/MG                         • Patos de Minas             • Campinas (SP)
• 5G
                                           agreement                                                                                    (MG)
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