construcon and engineering opportunies in brazil for smes · e-mail: [email protected]...
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TheBri(shChamberofCommerceandIndustryinBrazilRiodeJaneiroSãoPauloPhone:+551138190265E-mail:[email protected]
Construc(onandEngineeringOpportuni(esinBrazilforSMEs
18Feb2016
BritchamBrasil 1
BillBallantyneRichardTaylor
• Brazil: big, diverse and complicated • Short term: uncertainties: politics, corruption, recession and more • Long term: good fundamentals: huge demand for infrastructure
• Plans
• Conclusions & Questions
Construc(onandEngineeringOpportuniBesinBrazilforSMEs
Brazil:big,diverseandcomplicated
• Politics
• Corruption Investigations
• Recession: exchange rate – interest rates – unemployment - inflation
• Commodity prices
• Water shortage - energy uncertainty
• Zika
Short term: uncertainties
• Relatively stable politics + international relationships
• Foreign currency reserves >US$ 300 billion + 65% Debt to GDP ratio
• Spare production capacity available to ramp up industrial growth
• Weak Real means Brazilian assets are 50% cheaper than a year ago
• Growing urban population – huge demand for infrastructure Government strategy to recover from recession?
1. Fiscal adjustment - Cuts in most of social programs, subsidized loans, costs 2. Major reforms - Tax system, pensions, unemployment, insurance, public prices 3. Microeconomic reforms to spur productivity 4. Exports expansion - Resumed trade negotiations, BRL devaluation 5. Investments in infrastructure
Long term: good fundamentals
Plans: Investment in Infrastructure
Source: Brazilian Ministry of Planning US$39bi projected third party capital
Plans: Concessions process
Plans: Highways
16 new projects 7,081km in 14 states 2015: 5 auctions US$4.9bi 2016: 6 auctions US$7.9bi Existing concessions US$3.8bi
Plans: Railways
5 new projects 7,537km new railways US$17.5bi new investment Existing concessions US$4.0bi
Plans: Ports
50 new leases US$ 3.0bi 63 new TUPs US$ 3.6bi 24 lease renewals US$ 2.7bi
Plans: Airports
4 airport concessions US$ 2.1bi 7 regional airports US$0.1bi (6 in Sao Paulo) Expanding infrastructure Creating regional hubs
• Brazil: big, diverse and complicated • Short term uncertainties: politics, corruption, recession and more • Long term good fundamentals: huge demand for infrastructure
• Plans
• Conclusions & Questions
Construc(onandEngineeringOpportuniBesinBrazilforUKSMEs
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TheBri(shChamberofCommerceandIndustryinBrazilRiodeJaneiroSãoPauloPhone:+551138190265E-mail:[email protected]
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RIODEJANEIRO AdrianaKanhan [email protected]
SAOPAULO FabrícioSoares [email protected]