Investor Presentaiton
16 How to INVEST in São Paulo
STATES 17
PUBLIC-PRIVATE Partnerships
The public-private partnership (PPP) program of São
Paulo State was introduced by Law 11688, approved
by Governor Geraldo Alckmin on May 19th, 2004.
Under the PPP modality, companies execute and
operate projects and are remunerated by the State
through contracts with durations ranging from 5 years
to 35 years, in accordance with Federal Law 11079 of
2004. For the Government of São Paulo State, the
successful concessions of highways and natural gas
distribution created a favorable environment for the
implementation of PPPs. For instance, the new
Imigrantes Highway was implemented in a private
participation scheme within 32 months, with no need
of government financial resources.
Some of the projects which are being analyzed and
that can possibly be carried out through PPPs are:
regional airports; the express train linking the center of
São Paulo to the Airport of Cumbica; the Train of
Guarulhos; the Campinas-Paraíba Valley Export
Corridor and the expansion of the Port of São
Sebastião. Other sectors that present potential for PPP
projects are health, housing, sanitation, education and
information technology.
The technical coordination of the Public-Private
Partnership program is performed by the PPP Unit, a
technical and advising entity under the Secretariat of
Planning and Regional Development.
Private Sector Initiative: the Government of São Paulo
State introduced, through decree 57289 of 2011, the
Private Sector Initiative (MIP). It is a fast, economical
and transparent means to promote foreign and
domestic investment to projects of interest to the State.
The decree has established a formal communication
channel between the market and the government and
helps bridging the gap between government
investment plans and their implementation. It is a
procedure that allows investors to put forward
proposals for investment projects in the format of PPPs.
With this new instrument, the State opens its doors for
private investors to identify business opportunities in
which they are willing to invest, enabling the
implementation of State projects requiring large sums
of funds and, at the same time, leveraging the
capability of the State to invest in strategic areas, such
its social policy.
The MIP is a mechanism that will centralize receipt,
publication, analysis and approval of proposals,
studies and projects sent by the private sector,
according to the general rules set out in the PPP
Program.
A Step by Step Guide to the MIP Process
PRIVATE SECTOR
INITIATIVE (MEP)
CONTRACT
(PPP Project winner
reimburses selected
technical study authori
APPROVAL
VALUATION by
State Comminion
REJECTION
Technical studies
Technical shades
Technical studies
PPP Project
APPROVAL
PUBLIC BIDDING
for the PPP
REJECTION
PRELIMINARY PPP
PROPOSAL
PUBLIC CALL
For detailed technical studies
including alteration
EVALLIATION by State
Commission
Labor Market
The labor market in São Paulo is characterized by its
great availability of qualified workforce. Most of the
employed population in São Paulo State has studied, at
least, for 11 years. The proportion of employed people
with 15 or more years of study is 36% higher in São
Paulo than the Brazilian average.
In 2009, 37% of the employed population in the State
was concentrated in the services sector. Industry and
commerce accounted for 21% and 19%, respectively,
followed by construction and agriculture.
Distribution of the Employed Population
According to Sectors in São Paulo State
Other Activities
Agriculture 11%
5%
Construction
7%
Commerce
19%
Industry
21%
of the state's GDP. The existing relationship between
the demographic, social and industrial dynamics in
São Paulo render a high supply and demand of services
provided to companies, as well as services provided to
the final consumer, in addition to the services for the
health, education and infrastructure areas.
Major Segments:
• Information and communication services;
• Professional, administrative and supplementary
services;
⚫Transports, transport auxiliary services and mail.
Services
37%
Trade
Source: IBGE, National Research through Residence Sample, 2009,
Services
São Paulo State is the most important services center in
the country. The service sector accounts for over 70%
Important segment of the services sector, trade in São
Paulo State accounts for one third of Brazil's total, with
USD 279 billion of gross revenues having been
generated in the State. Retail is the most important
segment of the state's commerce, with 47% of its
marketing margin. It is followed by wholesale (42%)
and vehicle, autoparts and motorcycle commerce
(11%). Having approximately 350 thousand
establishments and 2.7 million jobs, retail is the
greatest employer, since 71% of the employed people
work in this sector.View entire presentation