Brazilian Investments Partnerships Program - PPI - July, 2020 27.07.2020

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Brazilian Investments Partnerships
Program – PPI
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                                        the projects portfolio

July, 2020
Brazil in the world
                                                          5th largest
                           9th largest economy:                               5th largest population:
                                                          land area:
                           USD 1.9 trillion GDP                                210.1 million people
                                                        8,515,767 km²

              8th largest consumer                    4th largest FDI             One of the main global
               market: household                    destination in 2019:         producers and exporters
            consumption expenditure               USD 78.59 billion (44% of        of iron ore, soy bean,
               equals 63% of GDP:                 Latin America’s total FDI       animal protein, coffee,
                 USD 1.2 trillion                         inflow)                 machinery and aircraft

USD 1 = BRL 4.35 (February, 2020)
Brazil’s Economic Recovery
Ministry of Economy/Brazilian Central Bank data

                                                  3
Reforms
The path for economic recovery

         Pension Reform                   Infrastructure Reform
         USD 200 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
Pro-Investment Bills:
The path for economic recovery

  • Bill 4162/2019 – 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 on Cabotage (New)
  • Bill on Correios [The National Post] (New)
PPI Council                   President and Ministers
                                 Economy
Presidency of the Republic       Executive Office
                                 Infrastructure
                                 Mines and Energy
   Ministry of Economy           Environment
                                 Regional Development
                                 Secretariat of Government
        PPI Council
                                 Federal Banks
                                     BNDES
                                     Caixa Econômica Federal
 Special Secretariat of PPI          Banco do Brasil

                                The PPI Council President is the Minister of Economy. The Special
                                Secretary serves as the Executive Secretary of the PPI Council.
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
PPI IN FIGURES
  ACCOMPLISHED AUCTIONS/BIDS AND PROJECTS

                                    Accomplished                              Concession
       Qualified
                                    auctions/bids       Investments          fees/Bonuses
       projects                      and projects
                                                    USD 162.9 billion     USD 32 billion
          336                          178          (BRL 708.7 billion)   (BRL 139.3 billion)

USD 1 = BRL 4.35 (February, 2020)
PPI 2019 – Main Achievements
36 auctions were carried out
            in 2019

  Investment             Concession
 Expectations           fees/Bonuses

USD 103 bi             USD 20.8 bi
36 Auctions carried out in 2019                                                                                                   Mining
                                                                                                                                   1 auction
                                                                                                                          Palmeirópolis (Auction 10/21)
        Ports                                                     Railway
        13 auctions                                               1 auction                                               Investments: USD 58.6 million
11 Terminals of liquid bulk                              North-South Railway (FNS) (Auction 3/18)                         Concession Fee: USD 3.44 million
  • 3 in Cabedelo/PB (Auction 3/22)
                                                         Investments: USD 625.2 million                                             Oil and Gas
  • 1 in Vitória/ES (Auction 3/22)
  • 5 in Belém/PA (Auction 4/5)                          Concession Fee: USD 625.2 million                                          4 auctions
  • 1 in Vila do Conde/PA (Auction 4/5)
  • 1 in Santos/SP (Auction 8/13)                                     Highway                                             Regular Offer (Auction 9/10)
                                                                      1 auction                                           Bonus: USD 5.05 million
1 Terminal of paper pulp in Paranaguá/PR (Auction 8/3)   BR-364/365/GO/MG (Auction 9/10)
1 Terminal of Solid Bulk in Santos/SP (Auction 8/3)      Investments: USD 473.5 million                                   Round 16 under the concession agreement (Auction 10/10)
                                                         Concession fee: lower toll fee (33% discount)                    Bonus: USD 2.04 billion
Investments: USD 241.3 million
Concession Fee: USD 187.5 million                                  Airports                                               Petrobras Transfer of Rights Surplus (Auction 11/6)
                                                                   12 assets
                                                                                                                          Bonus: USD 16.07 billion
        Energy                                           12 airports in 3 clusters (Auction 3/15):
        3 auctions                                            Northeast:                                                  Round 6 Production Sharing Agreement - PSA (Auction 11/7)
                                                                Recife/PE; João Pessoa ,Campina Grande/PB;
Generation                                                      Maceió/AL; Aracaju/SE; and Juazeiro do Norte/CE
• New Energy A-4 (Auction 6/28)                                                                                           Bonus: USD 1.16 billion
                                                             Midwest:
• New Energy A-6 (Auction 10/18)                                All in MT: Várzea Grande (Cuiabá), Alta Floresta, Barra   Total Bonus: USD 19.3 billion
Transmission                                                    do Garças, Rondonópolis and Sinop.
• 12 lots of transmission lines
                                                                                                                          Total Investments: USD 96.38 billion
                                                             Southeast:
                                                                Vitória/ES and Macaé/ RJ
Investments: USD 3.97 billion                                                                                                 Lotex
                                                         Investments: USD 809 million                                         1 auction (10/22)
Auction fee: lower power tariff                          Concession fee: USD 546.3 million
                                                                                                                           11
                                                                                                                          Concession Fee: USD 187.9 million
PPI Main Deliveries
   (Jan-Jun/2020)
From January to June/2020, 5 assets were
               delivered
       Projected                                Concession
     investments                               fees/Bonuses
     USD 2.11
                                             USD 505 mi
        bi
 Highway                                 Railway

 BR-101/state of Santa Catarina          Early extension of Rumo Malha Paulista’s
                                         concession agreement
 Investments : USD 781 million
 OPEX: USD 919 million                   Investments: USD1.32 million
 Auction criterion: lowest toll tariff   Concession fee: USD 505 million
 Total discount: -62%

       Auction on February 21                  Amendment signed on May 27
Current PPI Portfolio
Current PPI Project Portfolio                                                        158 PROJECTS + 13 policies
Ports – 35                      Railways– 11                    Supply – 5                             Energy – 14                          Tourism – 4
4 Privatizations
30 Port Terminals:              4 concession renewals           2 Privatizations                       2 Transmission Lines Auctions        4 Concessions of national
1 Waterway (Licensing)          2 new concessions               (CEASAMINAS and CEAGESP)               2 Privatizations (Eletrobras and     heritage historical sites in
                                4 investments in strategic      8 Fishery Terminals                    Nuclep)                              PB, PE and SP states
Defense and Security            railway networks                (Cabedelo, Belém, Manaus, Aracaju,     TL Manaus-Boa Vista
(PPP’s) - 2                                                     Natal, Santos, Cananeia and Vitória)
                                1 privatization                                                        5 Licensings
1 Air force                                                                                            2 Existing Energy Generation         Policies:
Communications                  Airports – 24                   National Parks and                                                          • “Sea road” - Cabotage
                                                                                                       (A-4 and A-5)
1 Police Communications                                         Forests - 11                                                                • TRIIP (Road passenger
                                                                                                       2 New Energy Generation (A-4
                                22 airports in 3 clusters       8 concessions of parks (Lençóis        and A-6)                               transport)
Economy – 5                     2 rebids                        Maranhenses, Iguazu Waterfalls,                                             • PPP daycares
4 Privatizations (ABGF,                                         Jericoacoara, Aparados da                                                   • PPP prisons + correctional
                                                                Serra/Serra Geral, Canela, São
                                                                                                       Mining – 5
EMGEA, Serpro and Dataprev)     Highways – 20                                                                                                 facilities
                                                                Francisco de Paula, São Joaquim e
1 Lottery (Fixed ratio)                                         Brasília)
                                                                                                       4 CPRM Mining Rights                 • Universalizing basic
                                11 Concessions                  3 concessions of forests               ANM Available Areas
                                2 Feasibilty assessments                                                                                      sanitation + solid waste
                                                                (Humaitá, Iquiri and Castanho)
                                (8,370 km)                                                             Communications and                   • PPP street lightening
Oil and Gas – 3                 7 Licensings                                                           Technology – 5                       • The “projects factory”
                                                                Regional Development – 4
Round 17 under the concession                                                                                                               • Tourism
agreement                       Health – 2                H     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)                      1 Assessment (Hospital
                                Fêmina/Porto Alegre)            2 assessments (PISF and Irrigation     1 Privatization (Ceitec)             • Strategic minerals
Open Acreage                                                    Irecê)
2 Blocks of ToR+                1 PPP (Hospital Guarulhos/SP)                                          1 Concession (5G)
Boa Vista

Airports
                                                                                                                        São Luiz
                                Tabatinga
                                                                 Manaus
                                                                                            Imperatriz
                                                     Tefé

                            Cruzeiro                                                                              Teresina
                             do Sul
                                                                                                                              Petrolina
                                              Rio           Porto Velho
                                            Branco                                                    Palmas

                                                                                                                                                  Central Block
                                                                                                                                               7.4 million pax/year
                      North Cluster                                                         Goiânia
                                                                                                                                          USD 495 million in investments
                4.6 million pax/year
              USD 385 million in investments                                     Londrina

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

Investments            USD 1.54 billion                                                                   Navegantes                    South
                                                                                                           Joinville                    Block
                                                                  Uruguaiana
      2 Airport Rebiddings:                                                                                                 12.2 million pax/year
                                                                                 Bagé
    Natal/RN and Campinas/SP                                                                    Pelotas                    USD 665 million in investments
FICO
                                                                Mara Rosa/GO a Água                          Cross-
Railways
                                                                        Boa/MT
                                                                        383 km                            Investment
                                                                Inv.: USD 627.5 million
                             Ferrogrão
                               Sinop/MT to
                              Miritituba/PA
                                  933 km
                        Inv.: USD 5 billion (under                                           EFC
        New                    assessment)
                                                                                             892 km
                                                                                          Inv.: USD 1.8
     Concessions                                                                             billion

                                FIOL                                                         FCA
                         Ilhéus/BA a Caetité/BA                                            7,215 km
                                  537 km                                                  Inv.: under
                           Inv.: USD 758 million                                          assessment

                                                                                           EFVM
                                                                                                                 Renewals
                                                                                            895 km
                                                                                          Inv.: USD 2
                Railways Portfolio                                                          billion

               USD 13.5 billion                                                             MRS
Investments      • new – USD 5.7 billion                                                    1.686 km
                                                                                          Inv.: USD 3.8
                 • renewal – USD 7.8 billion                                                  billion
               12,789 Km:
                • new – 1,470 km
Total Length    • renewal* – 11,071 km               Norte-Sul
                • privatization: 248 km               (FNS)
                                                       1.537 km
                                                     Inv.: USD 620
                                                           17
                                                        million
Railways
•   Ferrogrão (Grain Railway) - EF170/MT/PA
    Section between Sinop/MT and Miritituba/PA
                                                                •   West-East Integration Railway (FIOL)
    • Length: 933 km + the section of Santarenzinho (32             Section between Ilhéus/BA and Caetité/BA
      km) and Itapacurá (11 km)
                                                                    • Length: 537 km
    • New railway corridor to export grains through the
                                                                    • It will allow the iron ore produced in the Caetité/BA
      North Region, which aims at improving the outflow               region and the grain output of the West of Bahia to be
      of the Midwest agribusiness output by connecting it             exported through the South Port, a port complex to be
      to the port of Miritituba, in the state of Pará.                built close to the city of Ilhéus/BA. In the future, it is
                                                                      also possible to establish a connection between the
    • Estimated cargo: 25 million tons in 2020 and 45 million         South Port and the North-South Railway (FNS).
      tons in 2050.
                                                                    • Projected investment: USD 758 million, out of which
    • Projected investment : USD 5 billion (USD 1.9 billion           USD 368 million are earmarked to accomplish the
      upfront and USD 3.1 billion during the contract term)           works
    • IRR: 11.04%                                                   • IRR: 11.04%
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 34.7 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            Auctions accomplished:                  Section between Rio de Janeiro/RJ and São
                                                                                                                                       Paulo/SP
                                                       502 km                  BR 101/290/448/386/RS
                                                       Section between
Rebidding              936.7 km                     Navegantes/SC and the       BR- 364/365/GO/MG
                                                        frontier RS/SC               BR-101/SC
Highways – next auctions (2020)
Highway                                                                  Length     Capex (US$)     Auction
BR-153/080/414/GO/TO                                                     850 km      1.95 billion   2020/Q4
 • Road section between Anápolis/GO and Aliança do Tocantins/TO
BR-163/MT and BR-230/PA                                                  970 km      436 million    2020/Q4
 • 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      2.25 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    3.90 billion   2021/Q1
 • Road section between Rio de Janeiro/RJ and São Paulo/SP
BR-470/282/153/SC                                                        502 km      1.83 billion   2021/Q2
 • 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    7.72 billion   2021/Q3
highways)
BR-116/493/RJ/MG (CRT)                                                   711 km      1.81 billion   2021/Q3
 • 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 bullk                 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

                                                                                              Porto de Vitória/ES - CODESA
                              Paranaguá/PR (3)
                              Vehicles, General cargo and Liquids
                                                                                              Porto de São Sebastião/SP
       Ongoing Ports portfolio
                                                                                            Santos/SP (4)
Investments           USD 3.65 billion                                                      General Cargo/Celullose
                                                                                            Liquid bulk/fuel
Port leasings               22
                                                                                 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/Q2
Assessments: 2021/Q1
                                               Auction: 2022/Q3
Public Hearing: 2021/Q2
                                               Investments: under assessment
Investments: USD 2.42 billion

Port of Vitória/ES (CODESA)       Port of São Sebastião/SP
Status: Feasibility assessments   Status: Feasibility assessments
Bidding Notice: 2021/Q3           Bidding Notice: : 2022/Q1
Auction: 2021/Q4                  Auction: 2022/Q2
Investments: USD 230 million      Investments: USD132 million
                                                         22
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 e Cananeia (SP)
Fishery Terminals
                     Qualification in                        Public      TCU*       Bidding
                                          Assessments                                         Auction   Contract
                           PPI                               Hearing    Approval     Notice

                        Completed        Completed        Completed
Cabedelo (PB)                                                          Q3/2020     Q3/2020    Q4/2020   Q4/2020
                       (2/18/2020)      (5/11/2020)      (6/11/2020)

Belém (PA)              Completed        In progress
                                                           Q4/2020     Q1/2021     Q2/2021    Q2/2021   Q3/2021
Manaus (AM)            (2/18/2020)       (Q4/2020 )

Natal (RN)
Aracaju (SE)
                        Completed
Vitória (ES)                              Q4/2020          Q1/2021     Q2/2021     Q3/2021    Q4/2021   Q1/2022
                       (6/10/2020)
Santos (SP)
Cananéia (SP)

TCU: Portuguese acronym for the Brazilian Federal Court of Accounts
Mining                                                           Kaolin - Rio Capim/PA

                                                                                         Phosphate - Miriri/PB

                                        Copper - Bom Jardim/GO

          Mining legal rights

 Investments          USD 319 million

+ 56,000 available areas in the National
       Mining Agency portfolio                                   Coal - Candiota/RS
Oil and Gas
Round 17
Open Acreage                                                                                         Potiguar Basin
Transfer of rights

                                     Data
               Capacity                96 blocks (offshore)

 Round 17      Basins (4)              Potiguar, Campos, Santos and Pelotas

               Capacity                740 blocks (onshore and offshore)

               Minimum bonus
                                       USD 666 million
Open Acreage   for all blocks                                                                 Campos Basin
               Bidding Notice for                                                    Transfer of rights
                                       July/2020
               the 2nd cycle (tbc)
                                                                               Santos Basin
               Blocks (2)              Sépia and Atapu
 Transfer of   Bônus mínimo para       USD 8.4     USD 5.25 billion (Sépia)   Pelotas Basin
   Rights      os blocos                billion    USD 3.15 billion (Atapu)
Electric Power

           Energy portfolio (values in USD billions)
License + Implementation of the Transmission
                                                                     0.413
Line Manaus – Boa Vista
Existing Energy Generation (A-4 and A-5)                            2.16**
New Energy Generation (A-4 and A-6)                                  3***
Transmission (nº 1/20 and nº 7/20)                                     1.4             Transmission Auctions
                                                                                        nº 1/20 *
Total                                                                 6.98
                                                                                       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
Privatization/Capitalization – Eletrobras - Brazilian Power SOE
                                                                            Power generation capacity: 51,143 MW
                                                                            Generators (total): 125 plants (58 Corporate and 67 SPEs)
                                                                                 Hydropower : 46,259 MW
                                                                                 Nuclear Power: 1,990 MW
                                                                                 Thermal power (other technologies): 1,870 MW
                                                                                 Wind and Solar: 1,025
                                                                            Transmission Lines: 71.154 km (64.894 km, voltage > 230 kV)
                                                                            Direct and indirect shareholding of the Brazilian Government
                                                                                 CS – 72.22%
o Features: holding comprising Eletrobras CGT Eletrosul; Eletrobras
  Chesf; Eletrobras Eletronorte; Eletrobras Eletronuclear; Eletrobras
                                                                                 PS – 6.52%
  Furnas; and direct and indirect shareholding in 136 Special                    Total – 61.69%
                                                                        (Source: Eletrobras Financial Statements – 2019)
  Purpose Vehicles (SPVs).
o Grantor: Ministry of Mines and Energy                                     Status: Awaiting bill 5877 / 2019 approval
o Bill 5877/2019 establishes guidelines for privatization by
  capitalization
o Privatization model: increasing social equity by issuing common
  shares
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 4.6 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 e                     notice in progress
Alta700   MHz
     cobertura e Baixa2,3  GHze Baixa3,5
                       cobertura           GHze Baixíssima
                                       cobertura
baixa20
      Capacity
        MHz      alta Capacity
                       90 MHz          400 MHz
                                 alta Capacity’          3200
                                                 altíssima    MHz
                                                           Capacity                •   Contract Term: 20 years (with the exception
                                                   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 parathe
                                                        serviços
                                                          highestmóveis
                                                                   capacity
                                                                                       12/8/2029 and an extension under the
                                                                                       terms in force at the time)
                                                        Everything available for
                                                  4x    mobile services
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.

Greater preservation of forests, less deforestation, less fires, greater control and a better fight against
illegal activities.
The Stages
   of a
  Forest
Concession
Contracting of                            Federal Court
           Project                               Assessments Public Hearing               Bidding Notice   Auction
                                   assessments                               of Accounts

Aparados da Serra e Serra Geral

            Canela

    São Francisco de Paula

         São Joaquim

           Brasília

        Foz do Iguaçu

         Jericoacoara                                                                                                Completed

                                                                                                                     In progress
     Lençóis Maranhenses
National Heritage Sites
      The Forts of Nossa Senhora dos Remédios   and
Orange, located in the State of Pernambuco;     the
Fortress of Santa Catarina (PB) and the Farm    Pau
D`Alho (SP) were qualified in PPI portfolio      for
concession of their usage/management, under     the        Fortress of Santa Catarina
policy for attracting private investments in    the            João Pessoa (PB)
tourism sector.
      These projects will be pilots of                                                        Fort Nossa Senhora dos Remédios
 the so-called Program “Revive Brasil”,                                                               Fernando de Noronha (PE)
 which was born out of a Brazil-
 Portugal cooperation protocol signed
 by the Ministry of Tourism, and whose
 objective is the concession of vacant
 historical/cultural heritage sites.
                                                                                        Fort Orange
                                                                                  Ilha de Itamaracá (PE)

                                         Farm Pau D’Alho
                                           Campinas (SP)
PISF – Project for integrating São Francisco river into the water basins in the
north part of the Northeast region of Brazil (NE)
                    Features: Assessments for modeling a partnership for the operation and maintenance of the raw water
                    supply infrastructure, aiming to ensure water security for the entitled states. Its main use is human
                    supply and animal drinking, with other uses being admitted. It benefits 12 million people in four States
                    (CE, RN, PB and PE) and 390 cities. The North Axe has 96% of accomplishment and the East Axe 98%.
                    Object of assessments: Operation and maintenance of 477 km of channels; 9 pumping stations; 27
                    reservoirs in the axes; 4 tunnels; 14 aqueducts; 9 230 kV substations; Installed power 100.5 MW;
                    annual consumption of 709 GWh; Estimated energy consumption 58,300 MWh/month. Pumping
                    operational capacity of 38 m3/s and average annual flow granted: 26.4 m3/s.

                    Model: Common or sponsored concession               Brownfield project
                    (under assessment)                                  Executed CAPEX Investments : USD 2.7 billion
                    Structurer: BNDES with MDR, ANA, SPPI e             Projected OPEX Investments: USD 115 million/year
                    SDI/Ministry of Economy.                            Contract period: 35 years
                    Grantor: Brazilian Federal Government               Auction criterion: to be defined
                    Sector Ministry: Ministry of Regional               Public Guarantees: Infrastructure Guarantee Fund - FGIE
                    Development - MDR                                   and FPE States
                    Regulator: ANA                                      Status: assessments to be completed in December 2020
                    Regulation: Mechanism defined in the                Bidding: June 2021
                    concession contract
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 275 million (Pumping
                      Federal Gov jointly with subnational level         Station of 10.5 m³/s and 42 km of channels)
                      entities                                           Projected CAPEX investments: USD 156 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
Integrated Communication Network of the Brazilian Air Force Command - PPP
                                    Features: The Air Force Telecommunications Network covers the entire Brazilian airspace
                                    (territorial waters included), an area of 22 million km2

                                    Object of concession: designing, installing, updating, expanding, operating, managing and
                                    maintaining a communications, control and management infrastructure for the Operational
                                    Network, Administrative Network, Corporate Network, Telephone Networks, Aeronautical
                                    Command Network, Tariff System Data Link, International Links, Network Management Center
                                    and Security Management Center integrated through an administrative concession contract.

                                                                    Brownfield project
                                                                    Projected CAPEX investments : USD 354 million
                                                                    Projected OPEX investments : USD 514 million
 Model: Administrative Concession
                                                                    Contract term: 25 years
 Structurer: Committee for the Implementation of the Airspace
                                                                    Auction criterion: lowest consideration value per month
 Control System - CISCEA, with support of FIA - USP.
                                                                    Maximum consideration per month: USD 4 million
 Grantor: the Federal Government/ CISCEA
                                                                    Public Guarantees: Infrastructure Guarantee Fund - FGIE: value of
 Sector Ministry: Ministry of Defense - Air Force Command
                                                                    6 monthly consideration installments;
 Regulator: None
                                                                    Status: Bidding Notice issue with revised assessments expected for
 Regulation: Mechanism defined in the concession contract
                                                                    Q1/2021
PPP – Critical Digital Radio Communication for Defense and Public Security
                     Features: Assessments for Modeling the National System for Integrated Critical Digital Radio Communication for
                     Defense and Security of the Federal Government, States, the Federal District and Municipalities. Establishment of a
                     single operator for a national integrated LTE radio communication network, with service levels, availability and
                     encryption compatible with the requirements of the Public Security and Armed Forces.
                     Object of assessments: Structuring of a high capacity trunk backbone network, public and private, for signal transport
                     and convergence of technology and secure communications protocols for critical missions. It must be capable of
                     connecting different technologies and integrating security forces of the Federal Government, States and
                     Municipalities, as well as the Armed Forces, involving common applications. It may include end-use equipment.
                     Diversity of applications and technological transition in an interchangeable platform for data services. It reaches the
                     entire national territory and security and defense organizations using digital radio communication for voice and data
                     traffic on secure and exclusive frequencies, with infrastructure to be shared with other public or private uses with
                     converging standards. Investment made by the Ministry of Justice and its subsidiary bodies of USD 465 million in its
                     own network and equipment.

                    Model: Public-Private Partnership of the BR Federal         Projected CAPEX investments: to be defined
                    Gov jointly with subnational level entities                 Projected OPEX investments: to be defined
                    Structurer: Assessments to be hired by BNDES, in            Public Guarantees: Infrastructure Guarantee Fund – FGIE
                    conjunction with MJSP, MD, MCTIC and SPPI.                  Status: definition of requirements
                    Grantor: the Federal Government                             Completion of assessments: to be defined
                    Sector Ministry: Ministry of Justice and Public             Auction: 2021
                    Security - MJSP
                    Regulator: None
                    Regulation: Mechanism defined in the concession
                    contract
Fêmina Hospital in Porto Alegre, Rio Grande do Sul State
                  Features: Assessments of partnership alternatives aiming at modernizing and improving public services of a
                  new specialized hospital care unit in an area of the “Conceição Hospital Group”, in the city of Porto Alegre,
                  Rio Grande do Sul State. The initiative involves designing, constructing, installing, maintaining and operating
                  health support services in a new location. Fêmina Hospital, a reference in women’s care for the Metropolitan
                  Region of Porto Alegre, has been in operation since 1956. It has 12,300 m2 of built area, 166 beds and 917
                  workers. In 2018, the unit performed 126,000 medical consultations, 9,000 hospitalizations, 6,400 surgeries
                  and 2,100 deliveries. The new unit should involve expanding the service, as well as improving the quality of
                  service provision.
                  Object of assessments: Assessments of alternative partnerships to adapt current structures, as well as
                  constructing, renovating and expanding facilities and improving services management.
                  Model: Public-Private Partnership                      Greenfield project
                  Structurer: Assessments under analysis by BNDES        Projected CAPEX Investments: to be defined
                  Grantor: the Federal Government                        Projected OPEX Investments: to be defined
                  Sector Ministry: Ministry of Health                    Contract term: to be defined
                  Regulator: None                                        Auction criterion: to be defined
                  Regulation: Mechanism defined in the concession        Status: Requirements definition
                  contract                                               Bidding: 2021
                  Public Guarantees: Infrastructure Guarantee Fund
                  – FGIE
Preliminary estimates:
Privatizations      USD 12.5 billion      Assessments
FEDERAL PRIVATIZATIONS – PERSPECTIVE

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

AUCTIONS - PRIVATIZATIONS

LIQUIDATIONS

SALE OF SHARES / DELIVERY OF QUOTAS TO THE FEDERAL GOVERNMENT

                                                 DEBÊNTURES
Privatization – CBTU (Brazilian Company of Urban Trains)
                                                                    Brownfield project
                                                                    Extension: 220.8 Km of operating lines
                                                                    CAPEX projected investments: USD 460 million for requalification
                                                                    OPEX projected investments: to be defined
                                                                    Contract period: 25 years
                                                                    Auction criteria: to be defined
                                                                    IRR: to be defined
o Object of concession: public passenger transportation             Lease / concession / consideration value/ etc: to be defined
  services in the states of Alagoas, Minas Gerais, Paraíba,         Public Guarantees: to be defined
  Pernambuco and Rio Grande do Norte                                Capacity: 567,000 pax / day
o Model: Privatization                                              Winning Bidder: to be defined
o Structurer: BNDES                                                 Concession / Lease / Consideration: to be defined
o Grantor: states above-mentioned                                   Status: under assessment
o Sector Ministry: Ministry of Regional Development
o Regulator: States’ Regulator Agencies

      Q3/19               Q4/20                Q4/20             Q2/20               Q2/21               Q3/21               Q3/21
Qualification in PPI   Assessments         Public Audience    TCU judgement      Bidding Notice         Auction         Contract signature
Privatization – Trensurb (Urban Trains Company of Porto
  Alegre S.A)
                                                                 Brownfield project
                                                                 Extension : 43.8 Km of operating lines
                                                                 CAPEX projected investments: USD 80.45 million for requalification
                                                                 OPEX projected investments: to be defined
                                                                 Contract term: 25 years
                                                                 Auction criteria: to be defined
                                                                 IRR: to be defined
o Object of concession: public passenger transportation          Lease / concession / consideration value/ etc: to be defined
  services in the State of Rio Grande do Sul                     Public Guarantees: to be defined
o Model: Privatization                                           Capacity: 228,000 pax / day
o Structurer: BNDES                                              Winning Bidder: to be defined
o Grantor: state of Rio Grande do Sul                            Concession / Lease / Consideration: to be defined
o Sector Ministry: Ministry of Regional Development              Status: under assessment
o Regulator: Metroplan

      Q3/19              Q4/20               Q4/20            Q2/20               Q2/21               Q3/21               Q3/21
Qualification in PPI   Assessments       Public Audience   TCU judgement      Bidding Notice         Auction         Contract signature
Postal Service

The largest employer in           11,177 post offices                USD 4.13 billion
         Brazil                     Present in almost all
     More than 105,000                                                 2018 Net Revenue
                                   municipalities in Brazil
        employees

Status: ongoing assessments aimed at evaluating alternatives for partnership with the
private sector
Environmental Licensing
• Brazil is the most biodiverse country on Earth and that implies a major
  responsibility.
• It counts upon a strong legal framework, which comprises a specific chapter
  about environmental licensing enshrined in the 1988 Federal Constitution.
• Even before the Constitution, Brazil had already established an Environment
  National Policy (1981), which is still in force.
• The main purpose of the policy is making social, economic development
  compatible with preserving environment quality and ecological balance.
• Environmental licensing is a core tool to control and is required for carrying out
  any activity deploying environmental resources, that, effectively or potentially,
  bring about environmental degradation
TL Manaus –                        Tocantins
                              Boa Vista                       Waterway Rock
                                                                Dredging
Supporting
environmental
                                BR-319/AM/RO
licensing and                                     BR-242/MT

expropriation                                                 BR-158/MT

                                   BR-174/RO/MT                               BR-135/BA/MG
 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
The challenge of universalizing
basic sanitation
• In Brazil, a population similar to that of
  Canada has no access to clean water
• More than 100 million Brazilians have no
  access to sewage removal and treatment

Goals:
• Enhancing private partnerships subnational
  level bodies (an estimate of USD 140 to USD   National data

  160 billion in investments )                  Water supply – 83.5%
                                                Sewage removal – 52.4%
• Structuring bankable projects to provide      Sewage treatment – 73.7%
  proper services to Brazilians
Sanitation projects
                                     State of Amapá

                                                       State of
                                                        Ceará
                                                                   São Gonçalo     Urban solid waste      4              2.2 million    USD 759 million*
                                                                   do Amarante
                                                                                    (pilot projects)     projects           Entitled        Projected
                                           Teresina
                                                                                                                           Population   Investments- Total
                                                Consortia
                                                                   Crato
                                                Comares
                                                                                                          4               497.000       USD 690 million*
                                                                                   Basic sanitation
                                                                        State of                         projects           Entitled        Projected
State of Acre                                                           Alagoas                                            population   Investments- Total

                                                                                                          3              6.5 million    USD 2.37 billion
                               São Simão                                               Sewage             projects          Entitled        Projected
                                           Consortia                                                                                    Investments- Total
                                                                                                                           population
                                            Convale               Cariacica

                             Bauru
                                                            State of                                      5              18 million     USD 9.8 billion
                                                         Rio de Janeiro        Water distribution and
                                     Volta Redonda                                                       projects           Entitled        Projected
                                                                                      sewage                               population   Investments- Total
   Urban solid waste - FEP
   Basic sanitation - FEP
   Water distribution and            Porto Alegre
                                                                                        Total          16 projects       27.2 million USD 13.6
   sewage - BNDES                                                                                                                       billion
                                    State of
    Sewage - BNDES             Rio Grande do Sul                                                              * Capex + Opex
Service   bank: emphasis on sanitation (BNDES)
Banco de serviços: destaque para saneamento

                                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
                                 Sewage                     Full concession Full concession                  Concession of
  Business         water                          water                                         Sewage                          Sewage
                                   PPP                       of water and of water and                       water and/or                   To be defined
   Model        distribution                   distribution                                       PPP                             PPP
                                                                sewage          sewage                         sewage
                and sewage                     and 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 590 mi      USD 133 mi     USD 7.71 bi     USD 371 mi     USD 878 mi      USD 690 mi      USD 345 mi      USD 1.54 bi   To be defined
 Investments

                  Auction        Auction        Auction         Auction        Auction         Auction         Auction         Auction
 Next steps                                                                                                                                 To be defined
                  Q3/2020        Q3/2020        Q4/2020         Q1/2021        Q1/2021         Q2/2021         Q2/2021         Q3/2021

For more information: http://saneamento.bndes.gov.br/.

                                Entitled population                                                Total projected investment
                                36,000,000                                                         USD 12.2 billion
Project in Alagoas: concession for supplying water and sewage services in
the metropolitan area of Maceió-AL

 BRL th                                 Forecast investments
450.000
400.000
350.000
                                                                                                              CAPEX
300.000                                                                                                        • USD 588 million
250.000                                                                                                       Water
200.000
                                                                                                               • USD 351 million
150.000
100.000                                                                                                        • USD 196 million in 5 years
 50.000                                                                                                       Sewage
      0                                                                                                        • USD 236 million
          1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35
                                                                                                               • USD 125 million in 5 years
                                               Água    Esgoto

      Water                                                                       Sewage
      Currently: 69.5% of total water supply coverage                             Currently: 17.6% of sewage removal
      43.7% of losses in distribution                                             17.6% of sewage treatment
      Project: 100% of coverage in 6 years                                        Project: 90% of coverage in maximum 16 years
Projects in Municipalities – FEP CAIXA – Public Lighting
  FU       Municipalities                     % executed                      Date of Auction
  BA       Alagoinhas                                              Not started
  SE       Aracaju**                                       89                          2020
  BA       Barreiras                                               Not started
  PA       Belém*                                          83                          2020
  ES       Cachoeiro de Itapemirim                         62                          2020
  BA       Camaçari                                        68                          2020
  SP       Campinas*                                       84                          2020                              Structuring assumptions
  MS       Corumbá                                         12                          2021
                                                                                                 •    Administrative PPP
  CE       Crato                                                   Not started
                                                                                                 •    Scope: modernization, expansion, operation and maintenance
  BA       Feira de Santana**                              89                          2020
                                                                                                 •    Energy efficiency and less impact on the environment
  SP       Franco da Rocha**                               88                          2020      •    Short term investments, up to 3 years
  MG       Nova Lima                                       59                          2020      •    Remote management (main roads)
  MG       Patos de Minas                                  21                          2021
  RS       Sapucaia do Sul*                                88                          2020
                                                                                                Supporters                                            Executor:
  GO       Senador Canedo                                          Not started
  PR       Toledo                                          13                          2021
  GO       Valparaíso de Goiás                                     Not started                       2nd CALL OF PUBLIC LIGHTING:
*Projects supported by IFC/World Bank under public consultation between January and March/20              - Results released: 46 municipalities and 9 consortia have
**Public Notices published in June/20. Auctions in August/2020 at B3
                                                                                                              been qualified
* Projected CAPEX and OPEX values
FEP – Public Lightening - Belém/PA
                                                                      ▪   Brownfield project
                                                                      ▪   Entitled population: 1.4 million
                                                                      ▪   CAPEX projected investments: USD 30.8 million
                                                                      ▪   OPEX projected investments: USD 20.9 million
                                                                      ▪   Contract term: 13 years
                                                                      ▪   Auction criterion: lower monthly consideration
                                                                      ▪   Maximum amount of monthly consideration: USD 666,000
                                                                      ▪   # of lightening points: 90,000
o Object: administrative concession to provide public                 ▪   Status: Public Hearing accomplished
  lightening services, including the development,
  modernization, expansion, energy efficiency, operation
  and maintenance of the municipal network
o Model: administrative PPP
o Structurer: CAIXA, IFC, Madrona and Accenture
o Grantor: the Municipality
o Sector Ministry: Ministry of Regional Developement

                   2019              Q4/20                 Q4/20                Q3/20              Q3/20             Q4/20
              FEP Contracting     Assessments        Public Hearing          Bidding Notice       Auction       Contract signature
Public Lightening FEP Projects in the post-public consultation state
                                                                  Projected           Projected                                Lightening
                          Entitled                                                                      Max.Consideration                   % of remote   Efficiency
                                             Term (years)          CAPEX –             OPEX –           (million BRL / year)      points
                         population                                                                                                         management       goal
                                                                  Million BRL         Million BRL                              (thousand)

 Aracaju/SE*              650,106                 13                 83,0                70,0                 21,0                58           27%          61%

  Belém/PA                                        13                134,05               91,63                37,0                90           41%          46%
                         1,452,275

 Campinas/SP             1,204,073                13                185,10              102,40               44,24               120           25%          65%

   Feira de
                          614,872                 13                 80,75               78,79               21,25                60           33%          53%
 Santana/BA*
 Franco da
                                                                     13,60               23,50                4,80                10           15%          65%
 Rocha/SP*                149,502                 13

 Sapucaia do
                                                                                                                                  13           23%          66%
   Sul/RS                 139,476                 13                 14,20               24,90                5,08

 *Public notices published in June/2020. Auction to take place in August/2020 in the Brazilian Stock Exchange (B3)
Macapá

Public lightening -                                                              40 th
                                                                                 400 th
                                                                                              Teresina*
                                                                                                 87 th

BNDES                                                                                            800 th     Jaboatão dos
                                                                                                            Guararapes
                                                                                                                43 th
                                                                                                                703 th

          Caption - Images                                                                                  Petrolina
    Number of lightening points                                                                                 35 th
    Entitled population                       Curitiba                                                          340 th
                                                 160 th                São
                                                                                                             Caruaru
                                                 1.9 mi              Gonçalo
                Caption                                                                                         31 th
                                                                       1.1 mi                                  35m
   Projects in progress
                                                     Pelotas                                                   350 th
                                                                                                               490m
   Municipalities under prospective studies
                                                           29 th
                                                                                                            Vila Velha
                                                           340th
                                                                                                                35 th
The data presented here are estimates
                                                                                                          Vila Velha
and should not be used as final data                Consórcio                                                   490 th
                                                       Consórcio
                                                    Centro Sul Sul
                                                       Centro                   Porto Alegre*
                                                          30 30m
                                                             th
                                                                                     105 th
                                                          400 th
                                                             400m                    1.4 mi
  *Auction accomplished
FEP CAIXA – PROJECTS PIPELINE
                                                                                                               USD
                                     PUBLIC LIGHTING       17           5.1 million           17           322 million*
                                                          Projects           Entitled        Entitled        Total projected
                                                                            population     municipalities      investment

                                      URBAN SOLID          04          2.2 million            23            759 million*
                                      WASTE (PILOT        Projects            Entitled      Entitled         Total projected
                                       PROJECTS)                             population                        investment
                                                                                          municipalities

                                        BASIC              04              497,000            04       690 million*
                                      SANITATION          Projects            Entitled      Entitled         Total projected
                                                                             population   municipalities       investment

                                    TOTAL              25 projects     7.8 million             41     1.8 billion*
Public lighting
Solid Waste
Environmental sanitation          PARTNERS

                                                               * Capex + Opex in BRL
PUBLIC CALLS AND PILOT PROJECTS – FEP CAIXA

Public Lightening                                                Pilot projects under
Bidding Notice                  Open call                        progress
Dic/2019
                                     Urban solid waste               Drainage
Registrations closed on
3/6/2020                                                             Municipality of Teresina
                                 Bidding Notice published,
                                 registrations until                 Municipality of Porto
65 municipalities registered                                         Alegre
                                 7/15/2020
46 municipalities qualified     Call in progress                     Correctional facilities /
15 consortia registered                                              UNOPS

9 consortia qualified                  Water supply and              State of Minas Gerais
                                                                     State of Santa Catarina
Entitled population:                   sanitation
10.6 bi (municipalities)
1.9 bi (consortia)                  Bidding Notice expected to
                                      be launched in the 2nd
                                             half 2020
PPP FEP CAIXA AUCTIONS (2020)
                               Initial     Legislative   Completed     Public
                                            Changes                              Bidding Notice   Auction
                             Assessments                 Assessments   Hearing

Feira de Santana/BA

Aracaju/SE

Franco da Rocha/SP

Belém/PA

Nova Lima/MG

Sapucaia do Sul/RS

Campinas/SP

Camaçari/BA

Cachoeiro do Itapemirim/ES

Teresina/PI

Convale/MG

Bauru/SP

Crato/CE

São Simão/GO
Supporting Subnational level Partnerships
Correctional Facilities
  • Two pilot projects singled out for structuring in Santa Catarina and Minas Gerais states
  • CAIXA and the United Nations Office for Project Services (UNOPS) support the PPPs
    structuring
  • Private partner is responsible for building, maintaining and operating up to 35 years,
    with standards to meet in quality of service, training and qualification offer
Concession of Subway Line 2 - Metropolitan Region of Belo Horizonte
                                                                     Greenfield project
                                                                     Extension : 10.5 Km of operating lines
                                                                     CAPEX projected investments: USD 367 million
                                                                     OPEX projected investments : to be defined
                                                                     Contract term: 25 years
                                                                     Auction criterion: to be defined
                                                                     IRR: to be defined
o Object of concession: public passenger transportation              Lease / concession / consideration value/ etc: to be defined
  services                                                           Public Guarantees: to be defined
o Model: Concession                                                  Capacity: 50,000 pax / day
o Structurer: BNDES                                                  Winning Bidder: to be defined
o Grantor: State of Minas Gerais                                     Concession / Lease /Consideration: to be defined
o Sector Ministry: Ministry of Regional Development                  Status: under assessment
o Regulator: State of Minas Gerais

     Q3/19               Q4/20               Q4/20               Q2/20                Q2/21                Q3/21               Q3/21
                                                          Qualification in PPI                            Auction        Contract signature
Subnational level partnerships – States prison systems
                                                                  o Greenfield and brownfield projects:
                                                                      Santa Catarina: new detention center comprising a prison with
                                                                      capacity for up to 600 prisoners and medium security prison(s)
                                                                      with capacity between 1,800 and 3,300 prisoners, considering in
                                                                      this total 806 vacancies in the Blumenau Industrial Penitentiary
                                                                      Rio Grande do Sul: new detention center comprising medium
o Policy objectives: alternative solutions that enable the            security prison(s) with a total capacity for up to 1,125 prisoners, in
  provision of public services with greater efficiency, quality       the city of Erechim
  and effective re-socialization of prisoners through work and    o Contract term: up to 35 years
  study.                                                          o Main modeling assumptions: under assessment
o Object of concession: construction, maintenance and             o Consultancy in charge of assessments: consortium led by PWC (under
  operation of prisons.                                             approval)
o Model: administrative concession                                o Status: contracting between BNDES and states
o Structurer: BNDES and BID
o Grantor: states of Rio Grande do Sul and Santa Catarina
o Sector Ministry: Ministry of Justice
o Regulator: states’ secretariats

      Q4/19                     Q4/20                Q2/20        Q4/21               Q2/21                Q3/21               Q4/21
Qualification in PPI   Selection of pilot projects
Supporting Subnational Level Partnerships
Daycares
  • PPI, the Ministry of Education and BNDES are prospecting for Pilot Projects with states and
    municipalities
  • 1st pilot project for PPP in daycare singled out in Teresina (PI) (40 unities).
  • Private partner is responsible for accomplishing the civil works, equipping, maintaining and
    operating for up to 35 years, with standards to meet in quality of service.
  • Public partner is responsible for pedagogical planning, selection of children to be served,
    monitoring and inspection of contracts and goals.
Supporting Subnational Level Partnerships
Primary health care – Health Basic Units (UBS)
• Assessments of alternative partnerships for concession aimed at constructing, modernizing, operating,
  maintaining, managing and improving the network of UBSs of municipal competence.
Basic Features:
• Primary Health Care is present in all states of the Brazilian Federation. All over the country there are 42,893
  family Health Teams deployed in 5,475 municipalities, with a goal to expand to 50,000 teams by 2023. The
  current network of UBS has 33,006 unities, of which 3,987 are constructions in progress or to be executed,
  and 3,157 are construction at a standstill or with signs of being so (February/2020).
Object:
•   Provision of primary health care services in which the private partner is responsible for completing the
    works / construction, equipment, maintenance and operation, for up to 35 years, with service levels as
    well as performance and quality indicators. The Public Partner is responsible for planning, monitoring and
    enforcing contracts and performance targets. Currently under prospection of pilot projects.
Assessments: Under analysis with BNDES
Model: Municipal Public-Private Partnership (or through a consortium of municipalities)
Grantor: Municipality or Public Consortium
Body: Ministry of Health
Public Guarantees: Infrastructure Guarantee Fund - FGIE
Stage: Assessments / Requirements definition
Children's Hospital in Guarulhos, state of São Paulo
• Description: Assessments of alternative partnerships for concession aimed at the construction, equipping,
  operation, maintenance and provision of clinical and non-clinical services of a Specialized Health Care unit under
  municipal competence.
• Object: The new hospital will be structured through a public-private partnership, in the form of an administrative
  concession, which should replace the current service at the existing Municipal Hospital for Children and
  Adolescents (HMCA). Guarulhos Children's Hospital will be built in an area provided by the City Hall, allowing not
  only an increase in the capacity of beds offered, but also the implementation of an architectural proposal suitable
  to the highest quality and efficiency in the provision of hospital services. Among the new services designed, we
  highlight hospitalization, hospital care, 24-hour urgent and emergency care, outpatient care, diagnostic and
  therapeutic support service (internal), diagnostic and therapeutic support service and medical specialties
  (external), elective surgeries and other services not identified above and which may prove to be necessary to meet
  the demand of the City Hall.
     Assessments: Structurer - BNDES
     Model: administrative concession PPP
     Grantor: the Municipality
     Agency: Guarulhos City Hall
     Public Guarantees: under assessment
     Contract period: to be defined
     Status: definition of requirements
     Completion of Assessments: 1o half 2022
     Tender: 2o half 2022
Next steps

July, 2020
Next PPI auctions in 2020
                                           2nd Half/2020 (41 assets)
Highways (2)                   Port Terminals (11)                             Sunational Levels: states and municipalities (14)
• BR-153/080/414 (GO/TO)       • 4 in Itaqui/MA                                • 9 Public Lightening PPPs:
• BR-163/230 (MT/PA)           • 1 in Paranaguá/PR                                     • Aracaju/SE
                               • 2 in Aratu/BA                                         • Feira de Santana/BA
                               • 2 in Santos/SP                                        • Belém/PA
                               • 1 in Maceió/AL                                        • Franco da Rocha/SP
                               • 1 in Santana/AP                                       • Nova Lima/MG
                                                                                       • Sapucaia do Sul/RS
                                                                                       • Campinas/SP
Railways(3)                    Mining Rights (3)
                                                                                       • Camaçari/BA
• FIOL (BA)                    • Phosphate - Miriri (PB)
                                                                                       • Cachoeiro do Itapemirim/ES
• Renewal EFVM                 • Copper - Bom Jardim de Goiás (GO)
• Renewal EFC                  • 1st round - ANM available areas
                                                                               • 3 Concessions of water distribution and sewage treatment
                                                                                      • State of Alagoas
Energy (1)                     Fishery Terminal (1)                                   • State of Rio de Janeiro
• Transmission Lines 01/2020   • Cabedelo (PB)                                        • City of Cariacica/State of Espírito Santo (sewage PPP)

Oil and Gas (1)                National Parks and Forests (3)                  •2 Urban Solid Waste PPPs:
• 2nd cycle of Open Acreage    • Aparados da Serra (RS) and Serra Geral (SC)          • Teresina/PI
                               • Humaitá Forest (AM)                                  • Convale consortia/MG

Privatizations (2)                                                             • Obs. There is also the prospect of delivering Environmental
• Eletrobras                                                                     Licensing: The Preliminary Licensing (LP) of the Pedral do Lourenço
• Ceitec                                                                         / PA waterway
PPI Auctions - 2021
                                                                           2021 (88 assets)
Port Terminals (9)                       Airports – Round 6 (24)                  Privatization (10)                           Subnationals (16)

• 3 Terminals in the Port of Maceió/AL   22 airports in 3 blocks                  • ABGF                                       • 2 Concessions of Urban Solid Waste
• 1 in the Port of Fotaleza/CE           • Block North                            • EMGEA                                             • Bauru (SP)
• 2 in the Port of Santos/SP             • Block South                            • CEASAMINAS                                        • Consortia Comares (CE)
• 1 in the Port of Paranaguá/PR          • Block Central                          • CEAGESP                                    • 1 Concession of Urban Solid Waste,
• 1 in the Port of Vila do Conde/PA                                               • NUCLEP                                     Water and Sewage services
• 1 in the Port of Areia Branca/RN       2 airports                               • CODESA                                            • São Simão (GO)
                                         • Viracopos – Campinas (SP)              • TRENSURB
                                         • São Gonçalo do Amarante – Natal (RN)   • CBTU                                       • 3 Concessions of water and Sewage
                                                                                  • SERPRO                                     services
Highways (5):
                                         Fishery Terminals (7)                    • DATAPREV                                          •State of Acre
• BR-116/465/101 (SP/RJ) - Dutra                                                                                                      •State of Amapa
                                         • Belém (PA)                             Oil and Gas (3):
• BR-470/282/153 (SC)                                                                                                                 •Porto Alegre
                                         • Manaus (AM) Aracajú (SE)
• BR-381/262 (MG/ES)                                                              • 2 blocks – Transfer of Rights (Sépia and
                                         • Natal (RN)                                                                          • 4 Concessions of Sewage services
• BR-116/493 (RJ/MG) - CRT                                                          Atapu)
                                         • Vitória (ES)                                                                               • Crato (CE)
• Integrated Highways of Paraná state                                             • Round 17
                                         • Santos e Cananéia (SP)                                                                     •Volta Redonda (RJ)
                                                                                  Regional Development (1)                            •State of Rio Grande do Sul
                                         Parks (5)
Railways (2)                                                                      • Irrigation Perimeter in Irecê (BA)                •State of Ceara
                                         • Lençóis Maranhenses (MA)
• Ferrogrão                                                                       Obs. There is a prospect of decision-        • 6 Public Lighting PPPs:
                                         • Jericoacoara (CE)
• Renewal MRS                                                                     making on environmental licenses: (7):               • Corumbá (MS)
                                         • Iguaçu (PR)
                                                                                                                                       • Patos de Minas (MG)
                                         • Canela (RS)                            • Construction licensing of BR-080/MT
Defense and Security (2)                                                                                                               • Toledo (PR)
                                         • São Francisco de Paula (RS)
• Comaer PPP                                                                      • Construction licenseing of BR-158/MT               •Barreiras (BA)
• Security Forces Communication PPP      Mining rights (2)                                                                             • Crato (CE)
                                                                                  • Preliminary Licensing of BR-319/AM/RO              • Valparaízo de Goiás (GO)
                                         • Coal in Candiota (RS)
Telecommunications (1)                                                            • Preliminary Licensings of HPPs of
                                         • Kaolin in Rio Capim
                                                                                    Castanheira/MT, Formoso/MG,
• 5G                                                                                Tabajara/RO and Telêmaco Borba/PR
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