Transcript BRAZIL

Investment Opportunities in Brazil

Some Highlights of Chinese Investments in Brazil

A Huge Consumer Market

• • • 3rd largest market for PCs; 4th largest market for mobile phones, automobiles and TVs; 5th largest market for medical equipment.

Increased Investment is a Government Priority

Gross Fixed Capital Formation (%GDP)

Source: Instituto Brasileiro de Geografia e Estatística (IBGE) Prepared by: Ministry of Finance, Brazil

Despite government efforts in increasing public investments there is a huge space for private investment:

BRAZIL – Investment Opportunities PRIORITY SECTORS:

• • • • •

INFRASTRUCTURE RESEARCH & DEVELOPMENT OIL & GAS RENEWABLE ENERGIES AGRIBUSINESS

In the coming decade, investments in

infrastructure will lead the Brazilian economy

Increasing demand for infrastructure services

Source: National Logistics & Planning Company (EPL) Energy Research Company (EPE) Ministry of Mining and Energy (MME) Credit Suísse Produced by: Ministry of Finance

BRASIL – Investment Opportunities

• • • • The Brazilian economy is at the onset of a new investment cycle Largest concession program in recent decades: US$ 250 billion Infrastructure investments: great multiplier effect Most effective instrument to stimulate the economy in a period of international crisis

Priority Sectors: Infrastructure LOGISTICS INVESTMENTS PROGRAM (PIL)

Launched in August 15th, 2012 • • Aimed at providing Brazil with a modern, integrated and efficient transportation network, strengthening the competitiveness of the Brazilian economy by reducing logistics costs by at least 30% by the time the program reaches completion. The plan will raise investment of over $250 billion. A defining characteristic of the PIL is its openness to international business.

New investment program – Concessions

PRIVATE Investment in Transport Infrastructure US$ 96.81

billion

Roads:

US$ 23.64 bi

Railroads:

US$ 45 bi

Ports:

US$ 24.55 bi

Airports:

US$ 3.96 bi

INFRASTRUCTURE

• • • • • Widening and extending 7,500 kilometers of highways, with various stretches of road to be auctioned to the private sector following a concessions contract model. Total estimated investments: US$ 21.8 bi US$ 12.9 bi Invested in 5 years Concession contracts will be awarded for 30 years BR-163/267/262 connects the agricultural Brazilian Central Western region and the main ports in the Southeast coast Total extension: 1,423km; total investments: US$3.7 bi

INFRASTRUCTURE

• • • • • Construction of 10,000 kilometers of railway. Stretches of track are to be auctioned to the private sector following a concessions contract model. Total estimated investments: US$ 38.3 bi US$ 23.5 bi Invested in 5 years Concession contracts will be awarded for 35 years Uruaçu-Corinto-Campus connects the mining West region to the main ports in the Southeast coast.

Extension: 1,730 km; total estimated investment: 7.6 bi

INFRASTRUCTURE

• • • • Upgrade of existing and creation of new ports (both maritime and inland waterways), which have been opened up to private investment under a new regulatory framework. New Expected Private investments in concessions, leases and in Private Use Terminals Total estimated investments: US$ 22.8 bi US$ 13.0 bi invested until 2014/15

INFRASTRUCTURE

• Development of 689 regional airports and aerodromes, including 5 international airports that are auctioned under concession contracts to the private sector. • • •

Regional airports:

Estimated investment on the 1st phase: US$ 3.06 bi in 270 regional airports Partnership with states and municipalities for the management of the airports Administrative concession

Inward FDI Stock (2011)

Main Regions of Origin Europe (58%) North America (24%) Asia (8%) Central America and Caribbean (6%) South America(2%) Africa, Middle East and Oceania(2%)

Foreign Direct Investment

Foreign Direct Investment (US$ billion)

USA China Belgium Hong Kong Brazil Australia Singapore Russia United Kingdom Canada France German Italy India Spain USA China Hong Kong Brazil United Kingdom France India Singapore Australia Canada Russia Ireland Chile Luxemburg Belgium

Source: United Nations Conference on Trade and Development (UNCTAD) Prepared by: Ministry of Finance, Brazil

2013 Brazil 63

Brasil Global Net

www.brasilglobalnet.gov.br

Trade Promotion and Investment Office Embassy of Brazil in Beijing

Tel: +86 (10) 6532-2881 [email protected]

Thank you!

谢谢

!