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What is PPI? The Investment Partnerships Program (PPI) was launched - PowerPoint PPT Presentation

Jan 28, 2023 •698 likes •1.64k views

What is PPI? The Investment Partnerships Program (PPI) was launched in May 2016, aiming to coordinate and supervise concessions and privatizations of Federal Government infrastructure projects. PPIs Special Secretary supports Ministries and

  2. What is PPI? The Investment Partnerships Program (PPI) was launched in May 2016, aiming to coordinate and supervise concessions and privatizations of Federal Government infrastructure projects. PPI’s Special Secretary supports Ministries and Regulatory Agencies in planning, modeling and monitoring the portfolio of projects, preserving their political and regulatory competences. PPI’s chief goals are 1. to extend transparency, participation and governance to a solid portfolio of projects; 2. to encourage competitiveness among those potentially interested and their diversity, in terms of nationality and size of companies; 3. to improve the quality of services provided to the Brazilian population.

  3. PPI STRUCTURE PRESIDENCY PPI’S COUNCIL PRESIDENCY’S PPI’S SPECIAL GENERAL SECRETARIAT SECRETARY PPI’s projects selection depends on the approval of the President of the Republic Projects selected to PPI’s portfolio are treated as national priorities and shall follow PPI guidelines

  4. New governance scenario in Brazil The guidelines for PPI projects: A new legal framework on infrastructure: • High quality projects • Performance based contracts • Legal Act no.13.334, of 2016 • Special focus on risk sharing • Environmental feasibility • Legal Act no.13.448, of 2017 • Openness to foreign companies • PPI Council no.1 Resolution • The “100 days rule” (the “PPI Guidelines”) • Bidding documents published in English • Investments triggered due to demand • IRR according to each sector • Arbitration legally admitted • Special focus on project´s bankability • Capital markets as a fundamental source of funding • Commitment to regulatory certainty and stability

  5. Dialogue and long-term vision Dialogue Long-term vision The “empathy approach” The main concern about “continuity” • PPI Secretariat as: • an internal articulator EPL – Logistics Planning Company • a market listener • an information hub Regulatory Agencies Restructuring • Mandatory public consultation for projects The National Logistics Plan (PNL) • Mandatory participation of the Federal Court of Accounts (TCU)

  6. Project’s progress timeline public TCU bidding contract studies auction consultation analysis notice signature 9 to 12 90 days 45 days 45 days 100 days 180 days months PPI governance and coordination

  7. Projects under government’s leadership Public services Public monopolies Public assets Privatizations and (mining rights) sales of public shares in private companies CMB

  8. Building the PPI portfolio 1 st PPI Council 2 nd PPI Council 3 rd PPI Council 5 th PPI Council Meeting Meeting Meeting Meeting Sep 13, 2016 Mar 7, 2017 Aug 23, 2017 Mar 19, 2018 34 55 55 31 Projects Projects Projects Projects 17 (50%) 41 (75%) 16 (29%) 0 Concluded Concluded Concluded Concluded 17 14 39 31 In progress In progress In progress In progress

  9. Auctions and renewals carried out

  10. Auctions and renewals carried out Airports Port terminals PPI Projects 13 4 175 3 Expansion 4 concessions 3 Biddings 8 Renewals 74 Oil & Gas Power 52 Auctioned/Renewed 5 42,2% of PPI portfolio in 22 4 Biddings UHE months 1 Concession for exploring 1 Renewal areas with Marginal Fields 1 Power Distribution (CELG-D) Accumulations 42 Transmission Lots acquired BRL 143.6 billion 2 Exploration and Production 4 Transmission Lots without Planned investments 2 Pre-salt sharing proposal Source: Federal Government (Programa Avançar)

  11. The big picture: auctions and renewals Vila do Conde Fuel Terminal Santarém Fuel Terminal – - Convicon STM4 Terminal de GLP Itaqui Chemical MIR-01/ BEL 05 e BEL 06 Terminal - Tequimar Belém do PA Fortaleza Santarém Fuel Terminal – Airport STM5 Salvador Airport Salvador Container Terminal -TECOM UHE Miranda UHE São Simão Legend UHE Volta Grande UHE Jaguara Airpots Wheat Terminal of Rio de Janeiro Ports Paranaguá Fertilizer NITPORT Port Terminal - FOSPAR Services PCH Pery Power Transmission Florianópolis NITSHORE Port Airport Services Distribution Port Terminal of 42 Lots: Santa Catarina - Transmission Lines TESC Generation Porto Alegre Airport Port Terminal Caramuru Santos Source: Federal Government (Programa Avançar)

  12. The big picture: auctions and renewals 15 th ROUND – 4th Round of Exploratory blocks Marginal Fields 15 th ROUND – Exploratory blocks 4th Round of Marginal Fields 14th Round – 15 th ROUND – Potiguar Basin Exploratory blocks 14th Round – Sergipe- Alagoas Basin 14th Round – 15 th ROUND – Recôncavo Basin Exploratory blocks 4th Round of Marginal Fileds Legend 14th Round – Espírito Santo Basin 4th Round of Marginal Fileds 15 th ROUND – Exploratory blocks 14ªth Round – Bacia 3ªd Round – Production- do Paraná sharing bids – Pre Salt layer 2nd Round - Production-sharing bids – Pre Salt layer Oil and Gas 14th Round – Santos Basin Source: Federal Government (Programa Avançar)

  13. Results of auctions Grant / Bonus (BRL) Investments Undertaking (BRL) Planned Obtained Average Premium Airport concessions 3.01 bi 3.72 bi 23,4% 6.61 bi Port Terminals 15.0 mi 69.7 mi 364% 1.86 bi Oil and Gas Concession 10.7 bi 18.0 bi 455,2% 102.0 bi Privatization of Power (Distribution) 1.71 bi 2.19 bi 28% 3.40 bi Extension of Generation Plant 11 bi 12.13 bi 9,7% 8.17 bi 26.4 bi 36.1 bi 122.1 bi Discount (BRL) Investments Sector (BRL) Planned RAP RAP Obtained Average discount Power Transmission Concession 4.2 bi 2.6 bi 38% 21.5 bi Total investments expected in the auctions: BRL 143.6 billion

  14. PPI Projects 101 BRL143.9 billion Planned investments Auctions and renewals in progress

  15. Auctions and renewals in progress Port Highways Power Oil & Gas Mining Terminals 8 25 32 2 4 24 Transmission Lots 1 Pre-salt sharing 4 Renewals/ UHE - 1 Extension 1 Open Acreage 4 Concession to Rebalancing 4 Biddings 6 Distributors exploitation of 21 Biddings 4 Studies 1 Privatization Mining areas Airports COMAER Lottery Currency Supply Railways House CMB 17 8 1 1 1 2 2 13 Concessions 1 Public-Private 1 Concession 1 Concession CEASAMINAS 4 shareholding Partnership of the right to of the right to and CASEMG 5 Renewals selling (PPP) exploit exploit Privatization 3 Biddings Source: Federal Government (Programa Avançar)

  16. Logistics

  17. The big picture: auctions and renewals 1 2 3 1. MCP1 – Wood chip Santana Port 4 2. VDC 12 – Liquid Bulk Goods 3. (3) PAR 07, 08 and XX – Grains 16 (5) BEL 02A, 02B, 04, 08 and 09 (3) Mir 01, BEL 05 and BEL 06 13 Cabedelo 18 4. IQI18 – Cellulose Itaqui Port Suape 5. Liquid bulk goods terminal – Vitoria/ES 14 6. PAR01 – Cellulose and PAR12 – Vehicles Paranaguá Port 12 15 7. BR-040/MG/RJ, BR-116/RJ and BR-116/RJ/SP 11 8. BR-101/SC 9. BR-101/290/386/448/RS 5 10. BR364/365/GO/MG 10 11. BR -153/GO/TO 7 12. North-South Railway EF-151 SP/MG/GO/TO Santos 13. Ferrogrão Railroad EF-170 MT/PA 17 Legenda Legend 14. BR-364/RO/MT 6 15. West-east Integration Railroad EF-334/BA Ports 8 16. AE10, AE11 e AI01 – Liquid Bulk–Cabedelo Port/PB 9 Railways 17. STS 13 e STS13A – Liquid Bulk–Santos Port/SP 18. SUA 05 e SUA XX – containers and vehicles–Suape Port /PE Highways Source: PPI Secretariat.

  18. Extensions qualified in PPI are intended to leverage new investments to improve production flow 1 8 2/3 4 1. ITAQUI – Renewal 2. Port Terminal – DECAL 6 3. SUAPE – Authorization 7 4. FCA – CenterAtlantic Railway 7. 5. EFVM – VitóriaMinas Railway 6. ALLMP – São Paulo Railway Network 7. MRS Logística Legend 8. EFC – Carajás Railway Ports Railways Source: PPI Secretariat.

  19. Highways

  20. Highways – BR-101/290/386/448/RS - Integração Sul – RIS Border SC/RS - Osório-RS public TCU Bid notice Auction studies 2 nd quarter/18 3 rd quarter/18 Porto Alegre-RS consultation analysis Canoas-RS • 473 km long • Traffic: stretches with maximum daily traffic volume starting with 18 thousand vehicles/day in the 3rd year and reaching 35 thousand vehicles/day in the 30th year. • Planned Capex: BRL 8.4 billion • Planned Opex: BRL 5.3 billion • Concession period: 30 years • Auction criterion: lowest toll tariff • Importance: it comprises corridors in Porto Alegre Metropolitan Area and surroundings that are already intense and need interventions. Source: PPI Secretariat.

  21. Highways – BR-364/365 GO/MG public TCU Bid notice Auction Jataí-GO studies 2 nd quarter/18 3 rd quarter/18 consultation analysis Uberlândia-MG • 437 km long • Traffic: 4.4 thousand vehicles/day in the 1st year of concession • Planes Capex: BRL 2.0 billion • Planned Opex: BRL 2.7 billion • Concession period: 30 years • Auction criterion: lowest toll tariff • Importance: relevant corridor for flowing of the agroindustrial production from southeast Goiás and Triângulo Mineiro – connects already granted stretches of BR-050 and BR-153, providing access to Southeast market and to Santos Port Source: PPI Secretariat.

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