Investment Opportunities in Brazil Some Highlights of Chinese

Investment Opportunities in Brazil

Some Highlights of Chinese Investments in Brazil

A Huge Consumer Market • 3 rd largest market for PCs; • 4 th largest market for mobile phones, automobiles and TVs; • 5 th 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 15 th, 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, 423 km; 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 1 st 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 (US$ billion) USA China Belgium Hong Kong Brazil Australia United Kingdom France Singapore Russia Australia United Kingdom Canada France Russia India Ireland German Italy India Spain 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 secom. pequim@itamaraty. gov. br

Thank you! ��!