#1PROGRAMA DE PARCERIAS DE INVESTIMENTOS IPPI MINISTÉRIO DA ECONOMIA PÁTRIA AMADA BRASIL GOVERNO FEDERAL BRAZILIAN INVESTMENT PARTNERSHIPS PROGRAM (PPI) AUGUST 2022#2O#3Brazil in context 10th largest 5th largest land area: 8.511.767 6th largest population: Large forest coverage 58% of the economy: GDP USD km² 440 billion 7th 213.9 national million territory people Clean largest FDI destination in 2021: energy system: of biofuels 2nd largest global production Largest water reserve in the world 85% USD 50 renewable billion Source: UNCTAD sources 12% of world reserves GREATEST BIODIVERSITY IN THE WORLD: More than 120 thousand especies of invertebrates and approximately 8930 vertebrate species 734 mammal species 1982 bird species 732 reptile species 973 amphibian species 1358 marine fish species 3#44 ФИ PPI Council Presidency of the Republic President and Ministers The PPI Council is chaired by the Minister of Economy. The Special Secretary is the Executive Secretary of the PPI Council. Ministry of Economy PPI Special Secretariat Economy Executive Office Infrastructure Mines and Energy Environment Regional Development Secretariat of Government PPI Council FEDERAL BANKS: BNDES Caixa Econômica Federal Banco do Brasil op#5фи PPI works as a hub for investments Adds on efficiency and value to the process Regulatory Agencies Sectorial Ministries Nationals and International Investors Sectorial Unions Legislative Branch Governance, coordination, monitoring and oversight Control Entities Transparency, dialogue, credibility and predictability Well-designed projects Technical and legal framework enhancement Subnational Governments PPIV Financial Agents (investment funds, banks, etc) Licensing Entities Embassies Multilateral Organizations/ Concessionaires 5#66 Reforms REFORMS ADVANCING IN 2022 • Bill 7063/17 - Concessions and public-private partnerships; Bill 3178/19 - Oil & Gas sharing agreement ⚫ Bill 2646/2020 - Infrastructure Debentures • Bill 3887/2020 - Tax reform • Constitutional Amendment 32/2020 - Administrative Reform •Bill 414/21 - Modernization of the Electric Sector • Bill 591/21 - National Post Privatization • Bill 2159/21 - Environmental License ⚫Bill 528/2021 - Carbon Market REFORMS CARRIED OUT SINCE 2019 June 2019 September October New Regulatory Agencies Framework Economic freedom law, improving the business environment • New Social Security (largest structural reform in the history of social security in Brazil) January July 2020 December •New Sanitation Framework: opens the sector for private investments • New Bankruptcy Law. February 2021 March Complementary Law 178/2020 establishes triggers for states and municipalities and improvements to the Fiscal Responsibility Law July • Autonomy of the Central Bank April Amendment 109 (PEC 186 - Emergency Aid) • New Procurement Law • New Gas Framework •Law 14182/21 Eletrobras capitalization August ⚫ Business Environment Law December New Foreign Exchange Market Law • Railways Authorization Law •Law to incentive cabotage navigation#7Main deliveries 2016/2022 289 AUCTIONS/PROJECTS Expected Investments Concession fees USD 230 BI USD 45,1 BI#8Transportation projects ASSETS AUCTIONED/SIGNED CONTRACTS (2019-2021) 8 SECTORS Port terminals (35) FICO FERROVIA DE INTEGRAÇÃO CENTRO-OESTE INVESTMENTS - Solids, liquids, general and containerized cargo (34) USD 1.17 billion - Port privatization (1) Airports (49) Highways (7) Railways (7) TOTAL (98) USD 3.38 billion. USD 9.71 billion USD 8.77 billion USD 23 billion + + MANAUS EFC CARAJÁS CUIABÁ FNS NORTE-SUL EF MALHA PAULISTA (1) + 1. (6) (4) FORTALEZA(1) BELÉM + (1) (4) RECIFE (2) MACEIÓ (3) SALVADOR FIOL EF OESTE-LESTE EFVM VITÓRIA-MINAS L (2) VITÓRIA CURITIBA (6) SANTOS CODESA (PORTO) [3] (1) MRS (1)#9Energy, Mining and Oil & Gas projects ASSETS AUCTIONED/SIGNED CONTRACTS (2019-2021) B 44 SECTORS Oil and gas (10) Transfer of rights 6th sharing round 16th and 17th concessions round Open Acreage auctions Energy Generation (10) Energy Transmission (5) Energy Privatization (1) Mining (6) CPRM (2) • ANM (5) TOTAL (33) INVESTMENTS USD 124.8 billion USD 86,89 billion. USD 29.34 billion. USD 8.4 billion USD 177,4 million. USD 6.7 billion USD 6.22 billion USD 2 billion USD 89.2 million USD 139.82 billion 4 HP Zinc, Copper and Lead in Palmeirópolis (TO) 46 44xx 44x B #e B 44xx B BEB Phosphate of Miriri (PE/PB) 9#1010 Other projects ASSETS AUCTIONED/SIGNED CONTRACTS (2019-2021) MANAUS ESTADO DO AMAPÁ MACAPÁ BELÉM CRATO TERESINA PETROLINA IRECE CABEDELO ALAGOAS: 3 BLOCOS ARACAJU FEIRA DE SANTANA SÃO SIMÃO CONSÓRCIO CONVALE PATOS DE MINAS CACHOEIRO DO ITAPEMIRIM VILA VELHA VITÓRIA CARIACICA CAMPINAS SECTORS INVESTMENTS 5G (1) USD 8,42 billion Sanitation (9) USD 8,38 billion Public Lighting (15) USD 394 million MSW (1) USD 220 million Parks (4) USD 960 million. TOLEDO Fishery Terminals (4) IGUAÇU USD 117,7 million. Irrigation (1) USD 318 million. SAPUCAIA DO SUL [2] Total (35) USD 18,82 billion FRANCO DA ROCHA APARADOS DA SERRA E SERRA GERAL RIO DE JANEIRO: 4 BLOCOS FLONAS DE CANELA E SÃO FRANCISCO DE PAULA#1137 AUCTIONS CARRIED OUT IN 2022 FEDERAL PROJECTS Expected Investments USD 14,46 BI T (18 በ በ PORT TERMINALS (4) CODESA MAR/30 1 in Santos/SP (STS11) MAR/30 1 in Paranaguá/PR (PAR32) MAR/30 1 in Recife/PE (SUA07) INVESTMENTS MAR/30 USD 428 million CONCESSION FEE USD 220 million HIGHWAYS (1) BR-116/493/RJ/MG (Rio-Valadares). MAI/201 INVESTMENTS USD 2.25 billion OPEX USD 1.97 million AIRPORTS (15) 7th Round of Airports Concession SP/MG/MS/PA Block (11 airports) General Aviation Block (RJ/SP) (2 airports) North Block II (PA/AP) (2 airports) • AGO/18 INVESTMENTS USD 1.45 billion CONCESSION FEE USD 544 million RAILWAYS (1) MRS (Renovation) ⚫ JULY/29 INVESTMENTS USD 1.94 billion CONCESSION FEE USD 336 million ENERGY (3) Generation (1): New Energy (LEE A-4) MAI/27 Privatization (1): Eletrobras • JUN/14 Transmission (1) INVESTMENTS USD 3.4 billion CONCESSION FEE USD 5 billion روھے 1835 OIL AND GAS (1) Permanent Offer ⚫ APR/13 INVESTMENTS USD 81.2 million CONCESSION FEE USD 84.4 million FISHERY TERMINALS (3) Manaus/AM MAR/11 Belém/PA MAR/11 Vitória/ES MAR/11 INVESTMENTS USD 71.8 million CONCESSION FEE USD 254 thousand REGIONAL DEVELOPMENT (1) Baixio de Irecê (Irigation) JUN/1 INVESTMENTS USD 317 million OPEX USD 1.97 billion PARKS AND FORESTS (2) Iguaçu/PR⚫ MAR/22 INVESTMENTS USD 860 million CONCESSION FEE USD 75 million 11#1237 AUCTIONS CARRIED OUT IN 2022 SUPPORT TO SUBNATIONAL ENTITIES 12 £20 இ @ Expected Investments USD 14,46 BI COMPLETE CONCESSION OF SANITATION SERVICES (1) São Simão/GO FEB/11 WASTEWATER SERVICES (1) Crato/CE FEB/11 STREET LIGHTING (4) Jaboatão dos Guararapes/PE FEB/17 Caruaru/CE FEB/17 MSW PROJECTS (1) Convale/MG APR/14 INVESTMENTS USD 69.6 billion DISCOUNT 7.3% INVESTMENTS USD 111.2 million DISCOUNT 1,3% INVESTMENTS USD 43 million DISCOUNT 61% INVESTMENTS USD 222 million DISCOUNT 30,2%#13151 projects CURRENT PORTFOLIO PORTS HIGHWAYS AIRPORTS OIL & GAS 2 35 22 12 ΓΙΑ MINING RAILWAYS 10 REGIONAL 7 DEVELOPMENT 80 FISHERY TERMINALS SUPLY ECONOMY HEALTH 1 PARKS AND FLORESTS (27 dilate 虽 2 ENERGY TOURISM URBAN MOBILITY DEFENSE AND SECURITY 3 4 ICT 3 ((85) 13#1414 Environmental licensing Brazil is the most biodiverse country on Earth and that implies a major responsibility. Brazil has 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) The main purpose is making social, economic development compatible with preserving environment quality and ecological balance. Environmental licensing is the main control mechanism in the Brazilian legislation and is required for carrying out any activity that, effectively or potentially, could result in environmental degradation.#15фи ESG Guidelines Environmental (renewable energy, management of solid waste/sanitation, reduction of emissions, protection of natural resources) Social (Public policies, social rights) • Rebalance of the Transportation system (more railways and waterways) • Concessions for greater protection of natural resources (forests, parks) • Auctions of energy generation based on renewable sources (hydroelectric, wind, solar photovoltaic and biomass) • Sanitation concessions and their positive impacts in reducing polution Social and environmental impacts assessment (support to environmental processes) Fostering private investments to expand and improve the provision of public services • Compliance with the guidelines of Convention 169/1989 of the International Labor Organization (ILO): the right of indigenous and tribal peoples to be informed and previously consulted • Sanitation concessions and their positive impacts on health and educational indicators Governance (coordination, control, risk management, transparency) • • PPI Governance Balance in the distribution of risks and responsibilities in concession contracts Legal security • Transparency in project structuring 15#1616 ФИ Airports 10 7 5 2 AIRPORTS FOR REBIDDING: Natal/RN USD 62 million Campinas/SP USD 850 million 8 REGIONAL AIRPORTS (AM) São Gabriel da Cachoeira, Barcelos, Parintins, Maués, Coari, Lábrea, Carauari and Eirunepé 2 AIRPORTS: 8TH ROUND Santos Dumont e Galeão 3 USD 76 million 11 e 12 CAMPINAS 2 NATAL 12 3 LÁBREA 4 EIRUNEPÉ 5 CARAUARI 6 COARI 7 SÃO GABRIEL DA CACHOEIRA 8 BARCELOS 9 MAUÉS 2 10 PARINTINS 11 SANTOS DUMONT 12 GALEÃO#17Contracts Renewal ФИ Railroads -- Malha Oeste 1,973 km Investment: TBD FCA 7,215 km Investment: USD 2.76 billion. --Rumo Malha Sul 7,223 km Investment: USD 2.06 billion Ferrogrão Sinop/MT to Miritituba/PA (933 km) Investment: USD 5.04 billion FIOL 2 e FIOL 3 Caetité/BA Barreiras/BA (485 km) Barreiras/BA - Figueirópolis/TO (505 km) Investment: TBD - FICO - Mara Rosa/GO to Água Boa/MT (383 km) Investment: TBD Ferroeste 1,576 km Investment: USD 2,9 billion New Concessions FERROGRÃO FERROESTE FICO FNS FIOL 2 E 3 FCA MALHA OESTE RAILROAD PORTFOLIO INVESTMENTS RUMO MALHA SUL TOTAL LENGHT USD 12.76 BILLION New: USD 5.04 billion Renewal: USD 4.82 billion Privatization: to be defined Rebidding: to be defined 20,284 KM New: 2,306 km Renewal: 14,438 km Privatization: 1,567 km Rebidding: 1,973 km#1818 Фи Railways FERROESTE CAMPO MIRANDA MAHA OESTE GRANDE AQUIDAUANA RIBAS DO RIO PARDO AGUA CLARA Mato Grosso do Sul PONTA PORA O OMARACAJU 333km AMAMBAI CIANORTE O GUAIRA PARAGUAI 174 km TRES LAGOAS LONDRINA MARINGA 0 APUCARANA São Paulo PROJECT 1,304 km-long section - Maracaju/MS to Paranaguá/PR (1,128 km), - Cascavel/PR to Foz do Iguaçu/PR (166 km) Contract term: 70 years (including construction works) Auction criteria: Highest concession fee Main goods transported: Grains and double-stack containers Train-type: 3 locomotives and 160 wagons Publication of studies and Market sounding: October 2021 CASCAVEL LEGENDA O Municipios Atingidos FOZ DO IGUACH hiv O Municipios Nova Ferroeste Sobreposição Ferrooste -Malha Sul-Existente Ferrovias Conectadas Ferrovias Existentes 166 km ARGENTINA Paraná 224 km PONTA GROSSA 0 RIO BRANCO 223 km GUARAPUAVA 184 k NOVA O CURITIBA PARANAQUA SOCIAL AND ENVIRONMENTAL ASPECTS ARINA The Previous License should be issued before the auction The railroad route does not overlap with Indigenous Lands or Quilombola communities The railway's reference layout does not cross any Conservation Unit FINANCIAL ASPECTS CAPEX: under assessment Demand: 38 million TU (2023) | 85 million TU (2083)#19Pro-trilhos NEW RAILWAY AUTHORIZATION PROGRAM RR AM PA Barcarena Akántara Santana do Araguaiad Rondon do Pará Porto, Franco Açailândia TO CE MA Balsas Curral Novo pojuca Investments USD 48,16 bi USD 26,64 bi Lucas do Rio Verde Agu MT Boa Campes BA Abaira, Mara Rosa Brumado Verdes Total Lenght 20.721 km 9.923 km GO Anápolis o Unal Araçual Rondonópolis Requests 80 27 chavestindia MS Aparecida odo Taboado Sete Uberlandia Uberaba Lagoa MG Pirapora Conceição do Mato Dentro Teixeira de Freitas Caravelas io Mateus Opating Linhares States 18: ES, MG, MT, MA, 15: ES, MG, MT, MA, SP, SP, MS, PR, SC, PI, PE, MS, PR, SC, PI, PE, DF, GO, DF, GO, BA, PA, TO, RR, RJ, RS BA, PA, RJ Maracaj Railway authorization with signed contract Railway Authorization Railway in operation Railway under works. Planned Railway pria Varginha do Suaqué Andrelandia Presidente Kennedy RI Panorama Dourados Lençóis Paulista Pederneiras Santo Andr proj Cascavel Guarapuava Paranagud Foz do Iguaçu sot Chapeco 19#2020 1 ФИ Highways BR-158/155MT/PA 1.135,1 km Ribeirão Cascalheira/MT and Marabá/PA 2 BR-135/316/MA 12 A 2 9 437.7 km 11 Junction BR-135 (to Pedrinhas) - Junction Itaqui/Bacanga; Acess to Tirirical Airport - Junction BR-316(B) (Peritoró); Junction BR-135(B)/MA-020 (Peritoró) - Junction BR- 226(B)/343(A) (Div. MA/PI) (Teresina/Timon) 3 A 4 10 5 3 BR-381/MG 304 km Section between Belo Horizonte/MG and Gov. Valadares/MG 9 4 BR-262/MG/ES 8 382,6 km Section between João Monlevade/MG e Viana/ES 5 BR-040/495/MG/RJ + BR-040/MG (Rio de Janeiro - Ribeirão das Neves) 473 km Section between Rio de Janeiro/RJ and Belo Horizonte/MG 6 Rebidding BR-101/RJ (fluminense freeway) 320 km Section between Rio de Janeiro and RJ/ES borders B C 7 Rebidding BR-040/DF/GO/MG 8 10 679,7 km Section between Brasília/DF and Belo Horizonte/MG Federal and State highways in Santa Catarina 3,153.4 km Integrated concession of federal and state highways in the state of Paraná 3,361.9 km | 6 lots Rebidding BR-163/MS 1,094 km Section between borders MT/MS and MS/PR 11 Rebidding BR-60/153/262/ DF/GO/MG 1,094 km Brasília/DF São José do Rio Preto/RJ Betim/MG 12 Rebidding BR-163/MT 850.9 km -I Section between borders MT/MS and Sinop Concession of 6,600 km of Highways HIGHWAYS PORTFOLIO INVESTMENTS D USD 27.87 BILLION TOTAL LENGHT 20,332 KM#21Highway Highways NEXT AUCTIONS (2022) Integrated highways of Paraná (2 lots) Lot 1: BR-277/373/376/476 and PR-418/423/427 Lot 2: BR-153/277/369/373 and PR-092/151/239/407/408/411/508/804/855 BR-381/MG Length CAPEX (USD) Date 1,077.2 km 2.92 bi Q4/22 304 km 1,1 bi Q4/22 1,381.2 km 40,03 bi 21#22회 Highways INTEGRATED HIGHWAYS OF PARANÁ PROJECT: 3,300 km of federal and state highways in Paraná, divided into 6 areas Concession term: 30 years AREA 4 628 km AREA 5 430 km AREA 3 562 km AREA 2 576 km AREA 6 659 km FINANCIAL ASPECTS CAPEX: USD 8.84 billion OPEX: USD 7.28 billion WACC: 8,47% STATUS: -Studies filled with TCU* - Auction of lots 1,2,3:Q3/2022 - Auction of lots 4,5,6: 2023 AUCTION CRITERIA: Lowest toll rate + increasing additional contribution according to the discount offered 22 *TCU: Brazilian Federal Court of Accounts AREA 1 473 km Discount Additional contribution Up to 10% From 11% to 17% USD 3 million USD 12 million More than 17% USD 30 million#23Фи Ports Ongoing Portfolio VILA DO CONDE/PA (3) Liquid and solid bulk ITAQUI/MA (1) Liquid bulk FORTALEZA/CE (3) Passengers, liquid and solid bulks MACEIÓ/AL (3) General cargo, grain and liquid bulk PARANAGUÁ/PR (5) General cargo, grain and liquid bulk PARANAGUÁ/PR (1) Port access channel PORTO DE ITAJAÍ/SC PORTO ALEGRE/RS (3) Solid bulk LAGOA MIRIM WATERWAY AND SÃO GONÇALO CHANNEL/RS (1) PORT OF SALVADOR/BA (CODEBA) SALVADOR/BA (1) General cargo ILHÉUS/BA (1) Multiple uses ITAGUAÍ/RJ (2) Solid mineral bulk RIO DE JANEIRO/RJ (2) Liquid bulk PORT OF SÃO SEBASTIÃO/SP SÃO FRANCISCO DO SUL/SC (2) Grain solid bulk and cargo PORT OF SANTOS/SP - ASP SANTOS/SP (3) USD Investments 6.92 bi Port leasings 29 Privatizations and 4 port concessions Access channel/waterway 2 Waterway connecting Brazil and Uruguay 23#2424 Ports PRIVATIZATIONS Port of Santos/SP (SPA) Status: Public Consultation Concluded Bidding Notice: 2022/Q4 Auction: 2023/Q1 Investments: USD 3.2 billion (with the immersed tunnel) Port of Itajaí/SC Status: Under analysis in Court of Accounts Bidding Notice: 2022/Q3 Auction: 2022/Q4 Investments: USD 560 million Port of Vitória/ES (CODESA) Status: Auctioned Bidding Notice: JAN 21/2022 Auction: March, 30/2022 Investments: USD 67 million Ports of Salvador, Aratu- Candeias and Ilhéus (CODEBA) Status: Feasibility assessments Bidding Notice: 2024/Q2 Auction: 2024/Q2 Investments: under assessment Port of São Sebastião/SP Status: Under analysis in Court of Accounts Bidding Notice: 2022/Q3 Auction: 2022/Q4 Investments: USD 86 million#25ФИ Ports PORT OF SANTOS Divestiture in Santos Port Authority (SPA) + concession of the Public Port administration MODEL: Multi-stage (high sealed bids and subsequent "live" bidding) AUCTION CRITERIA: Highest concession fee CONCESSION AGREEMENT TERM: 35 years, extendable for up to 5 years EXPECTED INVESTMENTS (CAPEX+OPEX): USD 3,2 billion STATUS: After the conclusion of the public consultation, the studys are being reviewed. The next step is the protocol at the Court of Accounts (TCU) Public Consultation concluded on March, 23th CONCESSION FEE: Fixed contribution: minimum bonus of BRL 1,383,172,500 (USD 276 million), plus any goodwill, to be paid at the beginning of the concession period + fixed contribution of 25 annual installments of BRL 63,326,900 (USD 12 million) each, to be paid from the 8th year until the 32nd year of the Concession Agreement Variable contribution: 4.50% of the gross revenue earned in the previous year Escrow account: BRL 200,000,000 (USD 40,000,000) at the beginning of the concession period Offer to employees/retired employees: 10% of the Federal Government's shares 25#2626 ФИ Concession of National Parks Projetc Guidelines • Protection and development of the Conservation Units; Transparency; Less complex management of contracts. Allocation of a % of the annual gross revenue of the concession for obligations in socio-environmental development Environmental monitoring and species management; • Integration with the surroundings and environmental awareness. Concession • Investments to develop infrastructure and enhance service levels • Provision of public services to support visits to public areas; • Modernization, revitalization, operation and maintenance of tourism services; • Support the conservation, protection and management of the units. Regulation and Supervision of the contract with performance indicators . Waste management obligation; • Infrastructure maintenance and conservation; • Visitors' satisfaction.#27ФИ National Parks 1 National Park of Lençóis Maranhenses (MA) 18 2 National Park of Serra da Capivara (PI) 17 3 National Park of Ubajara (CE) 4 National Park of Jericoacoara (CE) 5/6 National Park and Forest of Brasília (DF) 7 National Park of 16 13 Serra do Cipó (MG) National Park of São Joaquim (SC) 8 National Park of 14 Forest of Caparaó (MG/ES) Ipanema (SP) 9 National Park of 15 National Park of Serra da Canastra (MG) Serra da Bodoquena (MS) 10 Park of National de Kurubatiba (RJ) 16 National Park of Chapada dos Guimarães (MT) 11 National Park of 17 National Park of Serra da Bocaina (RJ) Anavilhanas (AM) 12 National Park of 18 National Park of Serra dos Órgãos (RJ) Jaú (AM) 15 14 1 12 13 10 11 5 e 6 7 8 27#2828 PAU-ROSA Forest Concessions The concession projects of National Forests of Iquiri, Humaitá, Balata-Tufari, Jatuarana, Pau-Rosa and Gleba Castanho, all in the state of Amazonas; Três Barras and Chapecó in the states of Santa Catarina; and Irati in the state of Paraná have been qualified by the PPI Council as national priorities. Payments to the Federal Government by the concessionaires are destined to the states 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. Maior Greater preservation of forests, less deforestation, less fires, greater control and a better fight against illegal activities. GLEBA CASTANHO IQUIRI BALATA- TUFARI HUMAITÁ JATUARANA IRATI TRÊS BARRAS CHAPECÓ Brazil has the largest tropical forest and the 2nd largest forest area in the world!#29심 Privatization of federal companies PRIVATIZATIONS 2021 2022 2023+ PORTO DE VITORIA CODESA AUTORIDADE PORTUÁRIA CEASAMINAS Centrais de Abastecimento SANTOS PORT AUTHORITY SERPRO TRENSURB DATAPREV Eletrobras CBTU-BH ✔ NUCLEP Correios LIQUIDATION CEITEC emgead abgf Gestora i Agencia Bras Garantias 5A Fundos Garantidores e 29#3030 ☑E . CBTU MG BRAZILIAN COMPANY OF URBAN TRAINS IN THE STATE OF MINAS GERAIS • 28.1 km of lines in operation 10.8 km of new investments Operational improvements • Contract term: 30 years CBTU SPIN OFF PRIVATIZATION CONCESSION VILARINHO FLORAMAR WALDOMIRO LOBO 1º DE MAIO SÃO GABRIEL MINAS SHOPPING JOSÉ C. SILVEIRA SANTA INÊS LAGOINHA NOVA SUIÇA CENTRAL о • Demand pax/day: 260,000 (L1 + L2) CARLOS PRATES GAMELEIRA 0 CALAFATE NOVO ELDORADO VILA OESTE • Auction Criteria: highest company share value O AMAZONAS ELDORADO о CIDADE INDUSTRIAL SALGADO FILHO INVESTMENTS MILLION (USD) CAPEX 740* OPEX 1,360* EQUALIZATION UP FRONT 640* *Under studies. FERRUGEM VISTA ALEGRE MANNESMANN BARREIRO Public Consulation (concession) 27/DEC/21 Public hearing (privatization) 25/FEB/22 TCU (decision) 24/AUG/22 Tender rules protocol Q3/22 O HORTO O SANTA TEREZA SANTA EFIGÊNIA LINE 1 - Modernization LINE 1 Expansion LINE 2 Expansion Auction session Q3/22#31ФИ Energy sector in Brazil ELECTRICITY GENERATION CAPACITY (2021-2030) 85% RENEWABLE 2% 1% 3% 6% +27% 3% 14% 9% 2021 14% 59% 186 GW 20% HYDRO THERMO NUCLEAR SOLAR +148% 3% 1% 16% 2030 236 GW 86% RENEWABLE 49% Source: MME (2021) WIND GD RENEWABLE OTHERS جا +88% 31#32Фи Hydroagricultural Projects and Irrigation Perimeters 7 5 3 1 Vale do Jequitaí (MG) 2 | Vale do luiú (BA) 3 Chapada do Apodi (RN) 4 Baixo Acaraú (CE) The projects aim to expand irrigation services through the development of water infrastructure, such as dams, canals, pumps and water mains. In the case of the hydro-agricultural project, the initiative also aims to provide water supply and energy generation, bringing economic and social development to the poorest regions of the Brazilian semi-arid region. The partnerships with private agents will make it possible to resume the implementation of these projects, interrupted due to a lack of public investments. The incorporation of new technologies and greater productivity will be a result as well. 5 Tabuleiros Litorâneos (PI) 6 Platôs de Guadalupe (PI) 32 7 Tabuleiros de São Bernardo (MA)#33PPI PROJECTS IN SUPPORT OF SUBNATIONAL GOVERNMENTS#34PRISONS CORRECTIONAL FACILITIES PPI PIPELINE FOR SUPPORTING SUBNATIONAL PROJECTS STATES AND MUNICIPALITIES STREET LIGHTING 8° 2 29 WASTEWATER 2 SOCIAL LOCATION RENT 2 560 projects 2 DAYCARE UNITS WATER SUPPLY AND WASTEWATER TREATMENT 08 MUNICIPAL HEALTH CARE SOLID WASTE 09 1#35The challenge of universalizing sanitation In Brazil, a population tantamount to that of Canada has no access to clean water More than 100 million Brazilians have no access to wastewater treatment Main goals: - Enhancing private partnerships of subnational governments (an estimate of USD 150 billion in investments) - Structuring bankable projects to provide proper services to Brazilians USD 150 BILLION IN INVESTMENTS UNTIL 2023 USD 51 BILLION OF DEPRECIATION USD 99 BILLION IN EXPANDING THE SYSTEM WATER: USD 28 BI WASTEWATER: USD 68.5 BI NORTH: USD 9,2 BI WATER: USD 2,6 BI SEWAGE: USD 6,4 BI NORTHEAST: USD 27,2 BI WATER: USD 8,6 BI SEWAGE: USD 18,6 BI SOUTHEAST: USD 35,2 BI WATER: USD 11,2 BI SEWAGE: USD 23,8 BI MIDWEST: USD 10,4 BI WATER: USD 2,6 BI SEWAGE: USD 7,8 BI SOUTH: USD 17,8 BI WATER: USD 3,6 BI SEWAGE: USD 14 BI 35#3636 PPI projects in support of subnational governments SANITATION PPPS MUNICIPAL SOLID WASTE (PILOT PROJECTS) SANITATION TOTAL NUMBER OF PROJECTS BENEFITED POPULATION 18 ESTIMATES OF CAPEX+OPEX 16 5.1 mi USD 1,9 bi 10 12,5 mil USD 5,12 bi 14 19 15 19 17,6 mil R$ 7 bi BE 10 1 ESTADO AMAPÁ 2 TERESINA 3 ESTADO DO CEARÁ 4 CONSÓRCIO COMARES 5 SÃO GONÇALO DO AMARANTE 6 ESTADO DA PARAÍBA ENGENHO MARANHÃO 8 ESTADO DE SERGIPE 9 ESTADO DE MINAS GERAIS 10 CONSÓRCIO CENTRO-OESTE MINEIRO 11 12 1 2 3 VOLTA REDONDA 13 5 14 7 15 16 568 CONSÓRCIO CEMMIL CONSÓRCIO MOGIANA PORTO ALEGRE CONSÓRCIO CI CENTRO CONSÓRCIO OESTE PAULISTA 17 BAURU 18 ESTADO DE RONDÔNIA 19 CORSAN/RS MAP LEGEND MUNICIPAL SOLID WASTE SANITATION#37Фи Sanitation projects STRUCTURED BY BNDES Metropolitan Region of Maceió (AL) Cariacica (ES) Rio de Janeiro (Blocks 1, 2 and 4) Amapá Business model Concession of water and wastewater Wastewater PPP Concession of water and wastewater Concession of water and wastewater Alagoas (Block B and C) Concession of water and wastewater Rio de Janeiro (Block 3) Concession of water and wastewater $ Total benefited population +30 million Total investment (estimate) USD 14,4 billion Porto Alegre (RS) Ceará Paraíba Sergipe Rondônia Concession of water and wastewater Wastewater PPP TBD TBD TBD Benefited population 1,008 K 423 K 11,500 K 734 K 1,300 K 2,700 K 1,501 K 4,238 K 2,294 K 2,300 K 1,554 K Estimated Capex 514 mi 120 mi 5,460 mi 620 mi 577 mi 940 mi 435 mi 1,243 mil 1,2 mi 720 mi 400 mi Auction date Concession 400 mi fee (USD) 4,540 mil 186 mi 320 mil 440 mi Q2/2023 September 27th, 2022 Q1/2023 Q4/2023 Q4/2023 Status Concession contract signature (BRK) Concesion contract signature (AEGEA) Auction held (April 30th 2021) Auction held (September 2nd, 2021) Auction held (December 13th, 2021) Auction held (December 29th, 2021) Under assessment Auction notice published Under studies Under studies. Under studies For more information: hubdeprojetos.bndes.gov.br/pt/ 37#3838 ФИ Sanitation projects STRUCTURED BY CAIXA FEP Total benefited population 5,8 million Total investment (estimate) USD 2.04 billion Municipalities 118 São Gonçalo Consortia Convale (MG) Teresina (PI) Bauru (SP) Consortia Comares (CE) Volta Cosortia do Amarante (RN) Redonda (RJ) Mogiana (SP) Consortia Cias (MG) Engenho Maranhão (PE) Business model Consession MSW Consession MSW Consession MSW Consession MSW Consession Water + Wastewater Consession Wastewater Consession MSW Consession MSW Water Consession Benefited population 433,000 865,000 377,000 354,000 102,000 273,000 1.36 million 688,000 310,000 Municipalities 8 1 1 9 1 1 20 34 2 Main city Uberaba Teresina Bauru Juazeiro São Gonçalo do Amarante Volta Redonda Ribeirão Preto Divinópolis Ipojuca Capex + Opex expected (USD) 222 mi 298 mi 93 mil 161,8 mi 124 mi 324 mi 530 mi 266 mi 110,8 mi Expected Bidding October 2022 September 2022 November 2022 February 2023 April June 2023 2023 June 2023 October 2023 For more information: www.ppi.gov.br/projetos-concessoes-e-parcerias#391 TIMÓN (MA) 2 CRATO (CE) PPI projects in support of subnational governments STREET LIGHTING (PPPS) 3 MARANGUAPE (CE) 4 OLINDA (PE) 5 ALAGOINHAS (BA) 6 BARREIRAS (BA) 25 7 CAMAÇARI (BA) 8 SANTO ANTÔNIO DE JESUS (BA) 9 CONSÓRCIO ALTO SERTÃO (BA) 24 1 3 10 TEIXEIRA DE FREITAS (BA) 11 COLATINA (ES) 2 12 ARAGUARI (MG) 13 NOVA LIMA (MG) 4 14 NOVA IGUAÇU (RJ) 25 15 ITANHAÉM (SP) 16 FAZENDA RIO GRANDE (PR) 17 PONTA GROSSA (PR) 5 18 FOZ DO IGUAÇU (PR) 23 8 19 9 RIBEIRÃO PRETO (SP) 20 ARAÇATUBA (SP) 10 22 21 20 19 21 CORUMBÁ (MS) 11 22 VALPARAÍSO DE GOIÁS (GO) 23 ARIQUEMES (RO) 24 PARAGOMINAS (PA) 14 Projects 29 15 25 SÃO FÉLIX DO XINGU (PA) 08 18 26 29 26 CURITIBA (PR) Benefited population 8,75 mi 16 Legend: 17 CAPEX 312 mi Caixa Projects 28 OPEX 238 mi BNDES Projects 222 27 CANOAS (RS) 28 CAXIAS DO SUL (RS) 29 JOINVILLE (SC) 27 39#40PPI projects in support of subnational governments SOCIAL INFRASTRUCTURE PROJECTS PROJECT LOCATION BENEFITED INVESTMENT POPULATION ESTIMATES STATE OF MINAS GERAIS RECIFE (2) State of Santa Daycare units TBD USD 47 mi Catarina Daycare units (40) Recife/PE TBD TBD Prison in Santa Catarina Blumenau/SC 2,979 places USD 50.8 mi GUARULHOS Prison in Rio Grande do Sul Erechim/RS 1,200 places USD 28.6 mi STATE OF SANTA CATARINA (2) Correctional facilities Minas Gerais 180 places USD 7 mi ERECHIM BLUMENAU Map legend Correctional facilities Santa Catarina 150 places USD 7 mi Health sector Guarulhos/SP TBD USD 52 mi Social location Recife/PE TBD USD 30 mi TOTAL USD 222 Daycare units Prisons Correctional facilities. Health Social Location ++ > & 40#41NEXT EVENTS#4242 NOL PPI next auctions 2022 Airports (1) 1 Airports (Rebidding) São Gonçalo do Amarante (Natal/RN) Highways (3) - BR-381/MG - Integrated highways of PR (lots 1 and 2) Railways (1) - Railway Paraná Oeste S.A. - New Ferroeste Ports (13) - 2 Port Terminals in Paranaguá/PR - Port of Itajaí/SC -Port of São Sebastião/SP - Public Port of Santos/SP - 1 Port Terminal in Mucuripe/CE - 2 Port Terminal in Maceió/AL - 1 Port Terminal in Rio Grande/RS - 2 Port Terminals in Porto Alegre/RS - 1 Port Terminal in São Francisco do Sul/SC - 1 Port Terminal in Vila do Conde/PA Parks and Forests (7) - Forest of Humaitá/AM - Forest of Jatuarana/AM - National Forest of Três Barras/SC - National Forest of Chapecó/SC - National Forest of Irati/PR - National Park of Chapada dos Guimarães/MT - National Park of Jericoacoara/CE Mining Rights (7) - Limestone Aveiro/PA - Diamonds - Santo Inácio/BA Gold Natividade/TO - Copper Bom Jardim de Goiás/GO - Gypsum - Rio Cupari/PA -Kaolinite Rio Capim/PA -7° Round ANM Areas Eletric Power (3) - 1 auctions of power transmission lines DEC/17 - 2 auctions of Generation SEP/17 and 30 Fishery Terminals (7) - Santos (SP) - Cananéia (SP) - Natal (RN) - Aracaju (SE) - ABGF Privatizations (14) - CBTU/MG + Belo Horizonte metro line 2 - Ceasaminas - EMGEA Oil and gas (1) - 1st ANP cycle of the Open Acreage Sharing Agreement AAA Subnationals (31) 2 Prisonal units PPP - Municipality of Blumenau (SC) - Municipality of Erechim (RS) • SEP/15 4 Wastewater projects: State of Ceará ⚫SEP/27 1 Sanitation project: - Corsan/RS 2 MSW projects: - Consortia Comares/CE - Teresina 13 Public Lighting: - Corumbá/MS - Camaçari/BA - Crato/CE - Barreiras/BA - Nova Lima/MG - Curitiba/PR SEP/28 Regional Development (2) - Irrigation Project in the Vale do Jequitaí 57 assets USD 18,4 billions of investments#43PPI next auctions 2023+ Airports (11) 8 regional airports in Amazonas - Parintins, Carauari, Coari, Eirunepé, São Gabriel da Cachoeira, Barcelos, Lábrea e Maués 1 airport (concession) - Santos Dumont/RJ 2 airport (rebidding) - Airport of Campinas/SP - International Airport of Galeão/RJ Port Terminals (18) -16 Port Terminals - 1 Port access channel concession - 1 Waterway Parks and Forests (13) -09 Parks and forest concessions for visitation - 4 Forest concessions for sustainable management Railways (1) - 1 concessions - 2 renewals Privatizations (5) - Trensurb/RS - Nuclep - Correios Highways (15) - SERPRO - DATAPREV AAA Subnationals (31) 2 Correctional Facilities - Minas Gerais and Santa Catarina 1 Wastewater Project 6 Sanitation Projects 3 MSW Projects - Bauru/SP, - Centro-Oeste Mineiro Consortium/MG (35 municipalities), - Mogiana Consortium/SP (20 municipalities) 17 Public Lighting PPPs 1 Hospital - Guarulhos/SP: Municipal Hospital for Children and Adolescents (HMCA) 1 Social Leasing - Recife/PE 109 assets - 15 concession projects Regional Development (7) - 6 irrigation projects - 1 Hydric infrastructure project (PISF) Tourism (5) - 5 Concessions of historical and tourist buildings (CE, MG, PB, PE and SP) EMA Defense and Public Safety (1) - 1 PRF vehicle guard USD 34,68 billions of investments 43#44INVESTMENT PARTNERSHIPS PROGRAM MINISTER OF ECONOMY Paulo Guedes DEPUTY MINISTER OF ECONOMY Marcelo Pacheco dos Guaranys SPECIAL SECRETARY OF THE SECRETARIAT FOR THE INVESTMENT PARTNERSHIPS PROGRAM Bruno Westin Prado Soares Leal Deputy Special Secretary of the Secretariat for the Investment Partneships Program Frederico Munia Machado Chief to the Special Advisory Service for Investors and New Businesses Alceu Justus Filho Secretary of Energy, Oil, Gas and Mining Odenir José dos Reis Secretary of Transportation Partnerships Leonardo Rafael Machado de Freitas Maciel Secretary of Promotion and Support to Partnerships of Federative Entities Wesley Callegari Cardia Secretary of Support for Environmental Licensing and Expropriation Alex Garcia de Almeida International Advice Maria Stela Miglorancia Content Coordinator Adriano Brasil Design Cristian Lisboa Special Secretariat of the Investment Partnerships Program www.ppi.gov.br | [email protected] | (61) 2025-4212 SAUN Quadra 5, Lote C, Bloco D - Centro Empresarial CNC Asa Norte, Brasília/DF | ZIP CODE: 70297-400 PROGRAMA DE PARCERIAS DE INVESTIMENTOS PPI#45Q#46PROGRAMA DE PARCERIAS DE INVESTIMENTOS PPI O in f OPPINVESTIMENTOS WWW.PPI.GOV.BR MINISTÉRIO DA ECONOMIA PÁTRIA AMADA BRASIL GOVERNO FEDERAL