2. Key trends for PPPs in Latin America
PPPs in Brazil after the Olympics

3. A - Key trends for PPPs in Latin America

4. 1 !
PPPs have played a central role in infrastructure policy in the Latin American Region

5. Estimated private sector investment
Average: 32%
Average: 38%
Source: ppi.worldbank.org/

6. Number of Projects in the PPI database
Source: ppi.worldbank.org/

7. Projects in lac per sector (ppi data base >1991 – 2015)
Source: ppi.worldbank.org/

8. 2 !
PPP programs in the LAC region have been under continuous reforms over the last 20 years

9. Infrascope results (regulatory environment)
Argentina
Uruguay
Guatemala
Mexico
Honduras
Colombia
Source: infrascope.fomin.org/

10. Key issues and topics for the region
Institutional Design
Unsolicited Proposals
Sources of Financing

11. Key issues and topics for the region
Empowerment of finance ministries in the project cycle,
Independent Project Preparation Facilities,
Institutional Design
Unsolicited Proposals
Sources of Financing

12. Key issues and topics for the region
New processes for increased effectiveness
Need for an alignment with infrastructure policy
Institutional Design
Unsolicited Proposals
Sources of Financing

13. Key issues and topics for the region
Diversification of SPV Capital structure
Sophistication of risk allocation schemes
Institutional Design
Unsolicited Proposals
Sources of Financing

14. 3 !
The lessons of LAC should be confronted with other experiences to accelerate the region’s learning curve

15. B - PPPs in Brazil after the Olympics

16. Total investment in Brazil (ppi database)
Source: ppi.worldbank.org/

17. PPP Contracts signed (with government support)
Source:

18. Projects Initiated (with government support)
Source:

19. 1 !
PPPs in Brazil account for a significant part of the infrastructure investment, and are increasing rapidly

20. The porto maravilha project and the preparation for the olympics

21. The porto maravilha project and the preparation for the Olympics
City of Rio
PPP contract (BOT)
SPV

22. The porto maravilha project and the preparation for the Olympics
City of Rio
PPP contract (BOT)
SPV
Signed nov/2011
Building new streets and tunnels
Plant 15k trees
Availability Payments
Build the Museum of Tomorrow
Build 650k m2 of sidewalks
Capex of ~US$3 billion
Source:

23. The porto maravilha project and the preparation for the Olympics
City of Rio
PPP contract (BOT)
SPV
Signed nov/2011
Building new streets and tunnels
Plant 15k trees
Availability Payments
Fund with real state assets owned by the municipality of Rio de Janeiro.
The Fund is guaranteed by the city’s treasury
Build the Museum of Tomorrow
Build 650k m2 of sidewalks
Capex of ~US$3 billion
Source:

24. The porto maravilha project and the preparation for the olympics

25. The Olympic park as the main venue for the games
16 sports m2
8 main arenas
The International Broadcast Centre
Food courts and live centre
Estimated capex of US$500 million
Source:

26. The Olympic park as the main venue for the games
City of Rio
PPP contract (BOT)
SPV
Source:

27. The Olympic park as the main venue for the games
City of Rio
PPP contract (BOT)
SPV
Building all sports and supporting facilities
Maintenance and soft services during and after the games
Source:

28. The Olympic park as the main venue for the games
City of Rio
PPP contract (BOT)
SPV
Availability Payments
Building all sports and supporting facilities
Maintenance and soft services during and after the games
Source:

29. 2 !
PPPs in Brazil have successfully been used to address a very diverse set of social demands

30. Trends and Chalenges for the future of PPPs in Brazil
Institutional Design
Unsolicited Proposals
Sources of Financing

31. Trends and Chalenges for the future of PPPs in Brazil
Small PPPs in social sector will continue to form the largest pipeline in the country
Institutional Design
Unsolicited Proposals
Sources of Financing
The subnational level will continue to be the protagonist
How to design effective institutions and build capacity in the local level?

32. Trends and Chalenges for the future of PPPs in Brazil
Unsolicited proposals have been very ineffective in Brazil (~15% conversion)
Institutional Design
Unsolicited Proposals
Sources of Financing
The local authorities are by far the most active in welcoming UP
How to design effective institutions and build capacity in the local level?

33. Trends and Chalenges for the future of PPPs in Brazil
BNDES is retracting as the most relevant lender for PPPs
Institutional Design
Unsolicited Proposals
Sources of Financing
Private banks might demand more government support and guarantees
How to identify and manage fiscal consequences adequately?

34. Trends and Chalenges for the future of PPPs in Brazil
Corruption in the infrastructure industry will continue to make to the headlines
How to transform PPPs into a effective tool against to corruption?
How to adapt transparency standards to avoid corruption in PPPs?

35. ! 3
Building capacity in the local level, keeping fiscal consequences low and fighting corruption should be the focus of the regulatory reforms to foster more and better PPPs in Brazil

36. 1- PPPs have played a central role in infrastructure policy in Latin American 2 - PPP programs in the LAC region have been under continuous reforms over the last 20 years 3 - The lessons of LAC should be confronted with other experiences to accelerate the region’s learning curve 1 - PPPs in Brazil represent a significant part of the infrastructure investment, and are increasing rapidly 2 - PPPs in Brazil have successfully been used to address a very diverse set of social demands 3 - Building capacity in the local level, keeping fiscal consequences low and fighting corruption should be the focus of the regulatory reforms to foster more and better PPPs in Brazil