brazil's infrastructure framework demarest advogados
TRANSCRIPT
Brazil's Infrastructure Framework
AGENDA
1. BRAZIL NOWADAYS
2. BRAZILIAN GOVERNMENT'S STRATEGY
3. INVESTMENT OPPORTUNITIES
4. OVERVIEW OF BRAZILIAN BID PROCEDURES FRAMEWORK
5. PUBLIC AGREEMENTS
6. COMPLIANCE STRUCTURE
BRAZIL NOWADAYS
BRAZIL NOWADAYS
Brazilian economy produces a wide range of manufactured goods:
automobiles (3.3 million units in 2012)
aircraft
sophisticated machines
Many factors have forced the country to accelerate investments especially in infrastructure, such as: The Brazilian income growth
The social inclusion process
BRAZIL NOWADAYS
Joined the group of the most dynamic emerging countries of the world
The Gross Domestic Product (GDP) is currently among the ten largest in the world, either in nominal terms or in purchasing power parity
Unemployment rate below 5%
Living a period of rapid and sustained economic development, based on:
production growth, soundness of fiscal
and monetary institutions and investment,
credit and consumption expansion;
Market of over 100 million consumers with huge growth potential
Vitality of entrepreneurial class and technological advances in the agriculture industry
BRAZIL IN NUMBERS
INCREASED INVESTMENT AS A PRIORITY
INFLATION UNDER CONTROL
STRENGTH OF THE EXTERNAL SECTOR
5th LARGEST GLOBAL MARKET IN 2020
MIDDLE CLASS SOCIETY
LOWER INTEREST RATE
REDUCED COSTS FOR INVESTMENTS
The Government has put in place several measures aiming to reduce investments costs, among which the following stand out:
FOREIGN DIRECT INVESTMENTS HIGH LEVELS
EXPECTED GROWTH IN BUSINESS
BRAZILIAN AGRICULTURE: NEED OF LOGISTICS
source: http://www.estadosecapitaisdobrasil.com/mapas-do-brasil.php
BRAZILIAN POPULATION: NEED OF LOGISTICS
source: http://www.scp.rs.gov.br/upload/mapa_popula%C3%A7%C3%A3o_absoluta_brasil_2010(1).gif
DEMAND FOR INFRASTRUCTURE
LARGE INVESTMENT PROGRAMS
Several major infrastructure
programs were announced over
the last two years, with
investments adding around US$
235 billion over the coming
years, not to mention the major
urban infrastructure works
required for the 2014 World Cup
and 2016 Olympics
CHALLENGES
BRAZILIAN GOVERNMENT STRATEGY
BRAZILIAN GOVERNMENT STRATEGY
BRAZILIAN GOVERNMENT STRATEGY
INVESTMENT OPPORTUNITIES
INVESTMENT OPPORTUNITIES
INVESTMENT OPPORTUNITIES
Urban transportation - Big CitiesUrban transportation - Big Cities
•Target - 23 municipalities•Value – R$ 32 billion •Subway, Light rail vehicle (VLT) and urban rails
•Highlights:•Salvador Subway: in Request for Proposals•São Paulo Subway - Line 6: Bidding process - rescheduled•São Paulo Subway - Line 18: In public hearing process•São Paulo Intercities Train - Studies proposed in July, 2013 - under
analysis
OVERVIEW OF BRAZILIAN BID PROCEDURES FRAMEWORK
BRAZILIAN BID PROCEDURES FRAMEWORK
BRAZILIAN BID PROCEDURES FRAMEWORK
Lei de Geral de Concessões (Law 8987/1995): establishes general rules regarding concessions of public services, with no Government Payment
Lei de Parceria Público-Privada (Law 11.079/2004): establishes general rules for the concessions with Government Payments (public-private partnership contracts - PPP). Types:
(i) Sponsored Concession: public work or public service upon guaranteed payments from public administration, in addition to tariffs charged from end-users. Ex.: highways
(ii) Administrative Concession: end-user is the public administration and shall provide payment to the private party. Ex.: hospitals, public buildings
www.comprasnet.gov.br > acesso livre > consultas> aviso de licitações
PUBLIC AGREEMENTS
PUBLIC CONTRACTS
INITIATING & PLANNING = BIDDING PROCEDURE
•Its the key phase to negotiate the terms of the Future Contract•Request for Information / Quotation•Public Hearing •Request for Propostal - Bidding Procedure (Request for Clarifications - Risk Breakdown Structure)•Administrative and Legal Mesures (Impugnação)
EXECUTION & CONTROLLING = CONTRACT MANAGEMENT
•Inaccuracy of the "Statement of Work" / "Services Level Agreement" (TR - Termos de Referência, Especificações )•Extra requirements of the Public Client (Was it foreseen in the SOW and Budget?)•Penalties due to lack of performance / delays / "redoings"•Payments / cash flow of the Governmental Budget•Everything shall be written and official - EVER!!
CLOSING
•Claims and Instruments of Closing (via crucis)
PUBLIC CONTRACT
According to Federal Law 8.666/93, administrative contract is all and every agreement executed between public agencies and private parties, in which it is established mutual obligations
According to Federal Law 8.666/93, administrative contract is all and every agreement executed between public agencies and private parties, in which it is established mutual obligations
TYPES OF ADMINISTRATIVE AGREEMENTS
RISKS AND PROBLEMS The contract terms shall be always observed - it can not be changed or turned undetermined!
www.demarest.com.br 38
RISKS AND PROBLEMS
The contractor is responsible for the
quality and delivery
PRICE ADJUSTMENT
RENEGOTIATION
RESCISSION
Agreement rescissions cases must be formally justified in the records, ensuring to the Contractor party the right of defense (adversary system and full defense), in five business days .
If the rescission is not due the contractor's fault, and it's duly proven, the Contracting must assure the:
• devolution of guarantee• payment of the execution until the date of the rescission• payment of demobilization costs
If the rescission is not due the contractor's fault, and it's duly proven, the Contracting must assure the:
• devolution of guarantee• payment of the execution until the date of the rescission• payment of demobilization costs
COMPLIANCE STRUCTURE
MAIN COMPLIANCE PRINCIPLES
Law 12.846/2013 (Anticorruption) and Law 12.813/2013 (conflict of interests) provides further regulation regarding the relationship between private and
public parties regarding public contracts
Law 12.846/2013 (Anticorruption) and Law 12.813/2013 (conflict of interests) provides further regulation regarding the relationship between private and
public parties regarding public contracts
THE NEW COMPLIANCE LAW
SEPTEMBER, 5:
Workshop "Compliance and Governmental Relations"
Don't miss it!
Ana Bárbara Costa Teixeira([email protected])
Mário Roberto Villanova Nogueira ([email protected])
Min Gon Kim ([email protected])
