II Brazil Infrastructure Investments Forum Prospects for the Transportation and Logistics Sectors in Brazil Marçal Justen Filho

2 1. Economic concerns and the legal perspective - need for an expansion in the field of transportation infrastructure - US$17 billion investment by the Federal Governmentin urban mobility works.

3 2. The systemic nature of Brazilian regulation - All undertakings are subjected to the same standardized general norms

3. The constitutional reach of the issue (Article 21 of the 1988 Constitution) “The Union shall have the power to: … XII - operate, directly or through authorization, concession or permission: … c) air and aerospace navigation and airport infrastructure; d) railway and waterway services between seaports and national borders or which cross the boundary of a state or territory; e) interstate and international highway passenger transportation services; f) sea, river and lake ports”. 4

4. Future prospects: direct investments - Subway, BRT (Bus Rapid Transit) and Light Rail Transit systems in several cities - Some of the works will be performed directly by the Union, but in many cases their execution will fall to the States and Municipalities 5

5. Future prospects: performance through concession - Concession for the construction of infrastructure and the later exploration of the collective transport services 6

6. Future prospects: expansion of the infrastructure through concession - The existing infrastructure will be expanded through concession contracts 7

7. The question of logistics - The integration of the modes of transport is regarded to be quite imperfect - The cases of river transportation, ports and airports 8

8. The chosen legal model - Brazil has a long-standing tradition regarding the legal models for most of the contracts planned 9

8.1. Contracting through public bid Standardizing the rules for public bids 10

Fixating predetermined and objective parameters The equality between Brazilians and non-Brazilians 11

The possibility of the founding of consortia The control exerted by the Brazilian Court of Accounts

Providing advisory services 8.3. Public works contracts

Traditional concession contracts 8.5. Public-Private Partnership contracts

15 9. Sector regulation - ANAC, ANTT and ANTAQ 10. Future prospects under a legal perspective - Clear governmental decision in transferring the operation of transportation activities to private agents