1. GERMAN BRAZILIAN ECONOMIC MEETING 2012
XXX Entrepreneurial Meeting and
XXXIX Meeting of the Joint Commission on Economic Cooperation
Frankfurt, Germany - July1st to July 3th, 2012
ASSOCIAÇÃO BRASILEIRA DA INFRAESTRUTURA E INDÚSTRIAS DE BASE
Ralph Lima Terra
Executive Vice President

2. INFRASTRUCTURE INVESTMENT
ACTUAL INFRASTRUCTURE INVESTMENT
INFRASTRUCTURE INVESTMENT
2011 Prices
US$ Billion
2011 Prices: Figures updated by inflation over the period
Exchange rate 2011 : 1 US$ = 1.67 R$
“ “ : 1 US$ = 1.76 R$

3. INVESTMENT REQUIREMENTS IN INFRASTRUCTURE 2011-2015 (US$ billion )
ELECTRIC POWER
US$
OIL AND GAS (*)
US$ 241.2
TRANSPORT/ LOGISTICS
US$
TELECOMMUNICATIONS
US$
WATER AND SANITATION
US$ 48.3
TOTAL
US$
(*) E&P, downstream, gas and energy.
Exchange rate: 1 US$ = 1.76 R$

4. OPPORTUNITIES
AND PLANS
BY SECTOR

5. 10-YEARS EXPANSION PLAN (2011/2020)
OPPORTUNITIES AND PLANS BY SECTOR
ELECTRIC POWER
10-YEARS EXPANSION PLAN (2011/2020)
This expansion plan has an integrated vision of the demand expansion and different available sources.
GENERATION
Expansion plan will increase the installed capacity (109,578 MW) with additional 61,560 MW (23% renewable).
TRANSMISSION
Physical expansion of the transmission system (99,649 Km in Dec. 2010) is expected to happen with additional 42,553 Km
Global Substation System (222,119 MVA in Dec.2010) will add new 69,251 MVA

6. OPPORTUNITIES AND PLANS BY SECTOR
OIL & GAS
E & P
After-Salt areas
11th Bid Round – 174 blocks (planned)
87 off-shore
87 on-shore
Pre-Salt area – New frontiers
Basins in Santos, Campos and Espirito Santo state
Shipyard and Systems
Modernization and Expansion of Transpetro (Petrobrás subsidiary company) fleet
Demand for building and/or leasing of:
Drilling equipments, production platforms, special and support ships

7. NATIONAL PLAN FOR LOGISTICS AND TRANSPORT
OPPORTUNITIES AND PLANS BY SECTOR
TRANSPORT
Goal: to recover investment level in infrastructure, addressing 1% of GDP at least, over
NATIONAL PLAN FOR LOGISTICS AND TRANSPORT
Roadways: conservation and expansion of network
Railways:
restructuring and expansion from 28,830 Km to 44,720 Km (load)
Passengers: High Speed Train (São Paulo / Campinas / Rio e Janeiro): 511 km - Expected investment : US$ 23 B
Public hearings planned for 2012

8. Ports OPPORTUNITIES AND PLANS BY SECTOR TRANSPORT
NEW PROJECTS PLANNED:
A new plan addressed by the regulatory agency indicates 19 areas along the Brazilian coast where to develop and build new ports.
Private sector is also expected to invest and operate.
The first project will be set in Manaus (Amazonas State, North Region) involving US$ 795 million.

9. Ports OPPORTUNITIES AND PLANS BY SECTOR TRANSPORT
A technical study by Government to evaluate both the institutional organization and management efficiency of the global Port sector is ready and under analysis at the Civil Cabinet.
Study structure:
Sector characteristics under several aspects: institutional, physical, economic, management, and legal;
Proposals for directions such as:
Model on how to explore the port infrastructure
Management of a public port
Port operations efficiency
Institutional organization
Suggestions on how to elaborate a law bill for the institutional organization

10. OPPORTUNITIES AND PLANS BY SECTOR
TRANSPORT
Airports
Investment plan (2010 to 2014)
Infraero, federal state-owned company, has released an investment plan for 16 airports with an amount of US$ 5.6 billion. Bidding processes under way or about to happen.
Private sector new opportunities (2011)
The federal government started the concession model adoption in the Brazilian airport system. Private utilities will be responsible for investment and operation in a partnership with Infraero.

11. OPPORTUNITIES AND PLANS BY SECTOR
TRANSPORT
Private sector new opportunities
First airport concession: São Gonçalo do Amarante Airport (city of Natal) in the State of Rio Grande do Norte (Northeast). Auction done in Aug 22th. 2011
Three of major airports went under a bid last February (Brasilia, Viracopos, and Guarulhos ). Management will be done by private concessionaires who are investing 9.6 US$ billion over the concession period (25, 30 and 20 years respectively) and 1.7 US$ billion just until the World Cup 2014.
Next airports to be under bid expected to be Rio International and Belo Horizonte.

12. OPPORTUNITIES AND PLANS BY SECTOR
WATER AND SANITATION
National Plan for Water and Sanitation:
Federal Government has built a plan (now under final hearings) that aims at universalizing the access to services of water and sanitation in 20 years (2030).
Investment requirements:
Goal is to provide water and sanitation infrastructure for 100% of the population.
US$ 9.6 billion/year until 2030 or US$ 11.4 billion/year until 2025.

13. OPPORTUNITIES AND PLANS BY SECTOR
TELECOMMUNICATIONS
UNIVERSALIZATION OF TELECOMMUNICATION SERVICES
New contracts were signed between regulatory agency and private companies to extent infrastructure and services even to small communities in the country.
Challenge to merge internet, broad band, TV and telephony
Last June, a bid promoted by ANATEL (59 lots) awarded 6 telecom companies for very high speed wideband (4G) and rural wideband
as well.

14. Overall Projected Investment (US$ Billion)
OPPORTUNITIES AND PLANS BY SECTOR
PAC II (2011 – 2014)
Overall Projected Investment (US$ Billion)
Segment
2011 – 2014
Beyond
2014
Total
For a better city (water & sanitation + urban mobility )
32.4 --
For the community (healthcare + education)
13.1
My home, my life (housing)
158.1
Water and Light for all
17.4
Transport / Logistics
59.4
2.6
62.0
Energy
264.5
356.3
620,8
TOTAL
544.9
358.9
903.8
Exchange rate: 1 US$ = 1.76 R$
Source: Federal Government.

15. Projected investment (US$ billion)
OPPORTUNITIES AND PLANS BY SECTOR
PAC II (2011 – 2014)
INFRASTRUCTURE AREAS
Projected investment (US$ billion)
Segment
2011 – 2014
Beyond
2014
Total
Urban infrastructure (water & sanitation + urban mobility)
32.4 --
Water and Light for all
17.4
Transport and logistics
59.4
2.6
62.0
Energy
264.5
356.3
620.8
TOTAL
373.7
358.9
732.6
Exchange rate: 1 US$ = 1.76 R$
Source: Federal Government.

16. WORLD CUP 2014 16 16

17. WORLD CUP 2014
May 13, 2008 – Ministry of Sports and CBF (Brazilian Soccer
Confederation) sign a Technical Cooperation Agreement with
ABDIB
March 2009 – ABDIB Study concluded : Infrastructure Demand to handle World Cup 2014 in 18 candidate host cities.
Emphasis on structuring projects (multiplying factor)
LEGACY 17 17

18. WORLD CUP 2014 City Requirements Required Actions in 9 areas
Infrastructure for airports and ports
Allowing transfers of delegations, tourists and supporters in a fast and efficient way
Infrastructure for roads
Enabling connections among airport / hotel / stadium
Water & Sanitation
Power
Telecommunications
Hotel network
Able to meet demand
Touristic and economic potential in the region
Hospital network (public and private)
Public Security 18

19. WORLD CUP 2014 GAP ANALYSIS Explanation AB
Actual status
Estimated status in 2014 with existing projects
Gap still open to be closed with recommended additional projects
Urban
Mobility
Hotel
network
Power
Telecomm.
Hospital
Water/
Sanitation
Security
Airports
Ports
Key Indicators- Minimum level 18
Candidate
cities
Key Indicators - Ideal level
Explanation
Minimum
Level
Ideal
level
Minimum level of requirements to be a host city for 2014 World Cup
Ideal level to enable a city to host any game in 2014 World Cup, independently of the phase

20. Estimated Investment Volume (US$ Million)
WORLD CUP 2014
Estimated Investment Volume (US$ Million) 
Dimension
Projects
Amount
URBAN MOBILITY
287
39,791.51
16 AIRPORTS 38
4,165.00
PORTS 7
463.71
ELECTRICAL POWER
128
1,566.65
WATER & SANITATION
186
7,313.82
HOTEL NETWORK
132
7,558.41
HOSPITAL NETWORK 25
690.47
SECURITY 63
2,478.79
STADIAS / ARENAS  12
3,836.12
TELECOMMUNICATIONS 30
2,049.53
Total 
908
69,914.01

21. WORLD CUP 2014 Total Brazil 120,730.12 Investment Potential
by Host-Cities
 Host City 
 R$ Million 
 MANAUS 
6,036.95
 SALVADOR 
8,999.44
 FORTALEZA 
6,727.20
 BRASÍLIA 
6,169.50
 BELO HORIZONTE 
11,681.40
 CUIABÁ 
2,117.20
 RECIFE 
5,813.01
 CURITIBA 
6,830.21
 RIO DE JANEIRO 
18,675.90
 NATAL 
5,756.31
 PORTO ALEGRE 
7,352.20
 SÃO PAULO 
34,570.80
 Total Brazil 
120,730.12
Manaus
Fortaleza
Salvador
Belo Horizonte
Brasília
Cuiabá
São Paulo
Rio de Janeiro
Curitiba
Porto Alegre
Natal
Recife

22. WORLD CUP 2014: Arenas by Host City

23. WORLD CUP 2014: Arenas by Host City

24. Airports WORLD CUP 2014 INVESTMENT PLAN (2010 - 2014) Investment
Amount (US$ Million)
São Paulo (Viracopos, Guarulhos)
1,217
Rio de Janeiro (Galeão, Santos Dumont)
491
Belo Horizonte (Confins)
289
Porto Alegre
687
Curitiba
228
Brasília
Cuiabá 51
Manaus
186
Fortaleza
161
Salvador 25
Natal
328
Recife 11
TOTAL AIRPORTS
4,165

25. WORLD CUP 2014 WATER AND SANITATION
INVESTMENT PLAN ( ) = 7.3 US$ b
Some examples:
City
Project
Objectives
Belo Horizonte
Investment on the Sewage System for BH Metropolitan network
Expansion and improvement of the current Sewage System
Cuiabá
Increase in the Sewage Collection
Expansion of sewage tunnels
Curitiba
Reduction, Disposal and recovery of solid waste
Actions aiming at reducing waste generation and implement adequate disposal
Fortaleza
Implementation of the Cocó Macro System (Sewage)
Cover 80% population
Natal
Implementation of collection network and ocean outfalls in Nothern region
Cover 100% population via sewage network
Porto Alegre
New water collection
Reduce cost of chemical products for water treatment
Recife/Olinda
Capibaribe Basin
Re-urbanization, creation of new public areas and streets 36 boroughs in the western area improvement of environmental conditions in the Capibaribe basin
Rio de Janeiro
Sewage
Expansion of the sewage collection and treatment for Rio Marangá basin, improving coverage.
Salvador
Expansion of the Sewage system - collection, pumping stations, home connections - Bacias do Comércio, Aratu-Macaco, Jaguaribi, Calafate 1 e 2, Alto do Camurujipe 1 e 2, Tripas, Saboeiro, Mangabeira e Península

26. Ports WORLD CUP 2014 INVESTMENT PLAN (2010 - 2014) Investment
Amount (US$ Million)
Project Description
São Paulo (Santos)
86.4
Pier improvement and internal access
Rio de Janeiro
178.4
Implementation of 3 Piers
Manaus
50.8
Adaptation of 3 Storage Depots to Passenger Terminals, restauration of luggage storage, pier expansion,
front-area urbanization with parking lots and
passangers crossways.
Natal
30.5
Adaptation of old installations to Passenger Terrminals, Pier expansion, area urbanization with parkings and
better accesses
Fortaleza (Mucuripe)
84.7
Construction of Passenger Terminal, new pier pavement, area urbanization with parkings and better accesses
Salvador
20.5
Recife
12.4
Adaptation of a storage Depot and construction of a new passenger Terminal, pavement, and area urbanization with parkings and better accesses
TOTAL PORTS
463.7

27. WEBSITE FOR THE WORLD CUP 2014

28. OLYMPIC GAMES 2016

29. Investment (US$ million) Investment COJO * (US$ million)
OLYMPIC GAMES 2016
POTENTIAL INVESTMENT IN INFRASTRUCTURE
Area
Investment (US$ million)
Investment COJO * (US$ million)
Total (US$ million) %
Olympic Villages
1,270.25
0.0
20.69
Sport Installations
476.65
282.54
759.19
12.13
Security
235.95
0.00
3.77
Technology
202.93
35.82
238.75
3.81
Transport
3,730.00
59.59
Total
5,915.78
318.36
6,234.14
100.0
94.91
5.09
*COJO = Organization Committee for the Games

30. OLYMPIC GAMES 2016
AGENDA
Actions planned for the Olympic Games 2016 are perfectly connected with those for the Word Cup in Major projects in Rio include:
Implementation of street works, special works, micro and partial drainage and / or adjustments in existing streets, to facilitate access to huge sports events;
Reurbanization in areas sorrounding Maracanã and the harbour, with a great and significant social impact in installations, housing and transport;
Corredor T5 - Barra da Tijuca – Penha (Bus Rapid Transit);

31. OLYMPIC GAMES 2016
AGENDA
Express corredor connecting Lagoa with Barra boroughs;
Connection between Deodoro and Barra boroughs (BRT);
Connection Barra and Penha (BRT);
Rio Olympic Park;
Olympic Centers;
Media Village in Barra area;
Olympic Village;
Main Press Center and International Broadcasting Center
Sponsors Village and Live Site.

32. FUNDING
(and Financing)

33. BNDES FINANCING BY ECONOMIC SECTOR Original values, in US$ billion
2003
2004
2005
2006
2007
2008
2009
2010
2011
Agrobusiness
1.5
2.4
1.7
1.6
2.6
3.1
3.5
5.7
5.9
Industry
4.6
4.5
7.6
9.0
9.2
16.4
14.8
23.5
19.5
Basic industry
0.6
0.9
1.9
2.8
3.4
5.4
4.9
4.1
Services and Retail
1.2
6.3
10.6
17.4
19.6
Infrastructure
3.0
4.7
6.2
13.6
20.7
34.1
44.0
Total
10.9
19.3
23.6
33.3
49.7
68.2
95.7
83.2
Basic industry (%) in global outlays
5.7
6.5
10.0
12.1
10.2
6.3
7.8
5.2
4.9
Infrastructure (% ) in global outlays
27.5
34.8
32.2
32.3
41.0
41.7
50.0
46.0
41.1
Source: BNDES (Social and Economic Brazilian Development Bank)

34. INFRASTRUCTURE INVESTMENT FUNDS
Operating funds:
AG Angra Infraestrutura: W&S + infrastructure sectors
FIP Brasil Energia: energy and renewable energy
Infra Brasil FIP: W&S + transport, energy
BRZ Logística : transport
FIP Caixa Ambiental: W&S
FIP Energia PCH: Small Hydro and Thermal plants
FI FGTS : all infrastructure sectors
Note: Committed Capital: R$ 19.4 billion = US$ 11.6 billion

35. RECENT RULES TO FOSTER INFRASTRUCTURE
Creation of a private market for investment project long-term financing, with focus on infrastructure development, as an additional source to BNDES.
Law 12,431, in 2011, Jun. 24
Decree 7,603, in 2011, Nov. 9
Statement nº 18 (air transport ministry), in 2012, Jan. 23
Statement nº 9 (transport ministry), in 2012, Jan. 30
Statement nº 9 (ports ministry), in 2012, Feb.2
Statement nº 47 and 90 (electric power ministry), in 2012, Feb. 6
and Mar. 2
Statement nº 76 (national integration ministry), in 2012, Feb.15
Statement nº 181 (science & technology ministry), in 2012, Mar.7

36. RECENT RULES TO FOSTER INFRASTRUCTURE
Law 12,431 and Decree 7,603
Objective:
Regulate a private market for long-term financing with focus on infrastructure investment projects, as an additional source to public banks and BNDES.
Issue process of infrastructure debentures
Regulate how to approve investment projects in infrastructure (and research and development as well), to make them eligible to fiscal benefits
Infrastructure projects will be approved for eligibility by the correspondent sector Ministry (by Statements)

37. Without law With new law
RECENT RULES TO FOSTER INFRASTRUCTURE
Debentures specifically issued to implement infrastructure investment projects in priority areas;
Program to issue debentures will end 2015, December 31st;
Fiscal Benefits on Income Tax
Without law
With new law
Foreign investment
15%
zero
Individual (resident)
15 to 22.5%
Company (resident)
25%

38. RECENT RULES TO FOSTER INFRASTRUCTURE
Priority Areas to be covered in infrastructure
Sectors
(i) Logistics and transport;
(ii) Urban Mobility;
(iii) Energy;
(iv) Telecommunications;
(v) Radio -transmission;
(vi) Water and Sanitation;
Irrigation
Objective
implementation;
(ii) expansion;
(iii) maintenance;
(iv) recovery;
(v) adjustments;
modernization

39. VERY RECENT RULES TO FOSTER INFRASTRUCTURE
Released on June 27
Reduction of Long-Term Interest Rate from 6% to 5.5% per year
Governmental procurement of R$ 8.43 billion (US$ 4.2 b) on equipments and vehicles to be done in 2nd. half of 2012
Preference to over 80 items manufactured in Brazil for governmental procurement (with a price margin from 8 to 25% depending on the technology content) until June 2017

40. MARKET VALUE OF INFRASTRUCTURE COMPANIES
Source: Bovespa (São Paulo Stock Exchange)
Elaboration: Abdib

41. EXTERNAL INVESTMENT IN INFRASTRUCTURE
Brazil has improved its ranking among the countries
on direct foreign investment
2010 ranking
2012 ranking
China
1st
India
3rd
2nd
Brazil
4th
United States
Germany
5th
Australia
7th
6th
Singapore
24th UK
10th
8th
Indonesia
20th
9th
Malaysia
21th
Source: AT Kearney
Elaboration: Abdib

42. FINAL MESSAGE Investors in Brazil are twice welcome:
They can cooperate to Brazil’s very important development from both social and economic point of view
Projects legacy will equally benefit society and
those who accomplished them or helped in
their accomplishment 42 42

43. ASSOCIAÇÃO BRASILEIRA DA INFRAESTRUTURA E INDÚSTRIAS DE BASE
VIELEN DANKE!
THANK YOU!
Thank you!