Public Private Partnerships

Washington DC, April 10 th

JOSE SERGIO GABRIELLI DE AZEVEDOChief Planning Officer of the Government of Bahia

SUMMARY

1.Portfolio of projects

2.Capacity for implementation PPP’s Projetcs

3.New projects

1. BA-093 - road system (Toll-road: paid by users )

2. Sanitation Project: Outfall

3. Football Stadium for the World Cup

4. Hospital of Suburbio

PROJECTS CONTRACTS IN THE PERIOD 2007 TO 2010

Area of the Road Studies and ProjectMAIN INDUSTRIAL HUBS

Salvador and its metropolitan area has about 4 million inhabitants, it is the biggest city in the Northeast of BrazilProject includes 125 km of roads in more than 10 segments in the Metropolitan Area of Salvador; 263 km were originally studied Connects the main industrial hubs,one port and one airport Area of influence: encompasses 17 Municipalities, with 3.4 million people that accounts for more than 50% of the State GDPContract signed in August 2010 (to be expired in 25 years).The study began in June 2008CAPEX: US$ 500 millionInitial toll road: R$ 2,70

BA-093 –Road System

Sanitation Project: Outfall

Projeto SDO JaguaribeCaracterísticas Gerais

- Contract signed by the state company (EMBASA) in 12/27/2006 (to expired in 18 years);

- The contract was renegotiated in July 2007

- Engineering works started in September 2007

- Total of investment: US$ 95 milllion

- The operation of the system started in May 2011

- Initial government payment : US$ 26 million per year

Sanitation Project: Outfall

Soccer Stadium for the World Cup

• Contract signed in January 2010 (to be expired in 35 years)

• Government payment : US$ 50 million per year for 15 years

• Investment : US$ 350 million

• The goverment and the partner will share the revenue under or above US$ 10 million

• Multipurpose arena (soccer and other events) for 51,000 people)

– .

* A Parcela Variável pode sofrer abatimentos, em função de seu desempenho, conforme auferido pelo QID.** Valores para um mês de operação, indicados na Proposta Econômica

Soccer Stadium for the World Cup

Health’s PPP in the State of Bahia

The Context of Public Health in the State

3.8 million inhabitants GPD : R$ 46,2 bi

> 14 million inhabitants GPD : R$90,9 bi 37 State hospitals, with 4.939 beds 7 State hospitals were put under municipal management and 1 under Federal- Government’s management (2007 to 2009) There’s a 19-year workspace without a new emergency state hospital in Salvador Metropolitan region Covered population in the area of attraction: Covered population in the area of attraction: 1 million inhabitants1 million inhabitants

Salvador Metropolitan Region

Bahia

Hospital of Suburbio

The Modernization Programme – Health Innovation Hospital Management

• State

– Construction of the unit

– Partner’s payment

• Partner

– Equip and furnishment the unit

– Keep the unit technologically updated

– Full management of the unit (costing + maintenance + technological park update)

– Reformed workspaces return the drive to the end of the programme

Hospital of Suburbio

Some Points• First PPP health in Brazil with the inclusion of medical services

• Payment only after service provided

• Flexibility to structure the project according to the needs of the parties

• Transfer of responsibility for all initial investment (equipments +furnishing) by partner

• Conducting of new reforms and futures enlargements by partner

• Replacement of technological park and equipment by partner

• Contract signed in May 2010 (to be expired in ten years )

• The hospital started working in September 2010

• Total of investiment: US$ 25 million

• Initial government payment : US$ 55 million per year

Hospital of Suburbio

• The state of Bahia has an administrative structure capable– appropriate administrative to analyze projects– experience in modeling projects (two with the BNDES/IFC)

• The state has a structure of security that mitigates the risk of the private partner– has a law that guarantees the payment by a stable source of

revenue (FPE-constitutional transfer);– the law is being improved with the creation of an account scroll

to ensure three months of payment

• The state remaining quantity available to hire new projects despite the restriction imposed by the law of PPP, which limits spending to 3% of net revenue

Capacity for implementation PPP’s Projetcs

GOVERNOR OF THE STATE

COUNCIL MANAGER

•Secretary of Finance (President)

•Secretary of Planning

• Head of Attorney Generall Department of the State

•Secretary of the Department of Governme

•tSecretary of Administration

•Holders of Secretaries of State, with a direct interest in a particular partnership and 02 secretaries of state appointed by the governor

*

EXECUTIVE OFFICE OF THE PPP PROGRAM

SECRETARY OF FINANCE

• Head of the PPP Unit

• 02 Coordinators: Economic / Financial and Legal

* Principal Function: Advisory Council to the PPP Manager

Capacity for implementation PPP’s Projetcs

Management Struture of PPP in Bahia

• Interested Secretariat makes the request for a particular project

• Preliminary analysis is made by the PPP Unit (focus: the limit of net current revenue of the project);

• The Council Manager authorizes or not the project progresses:

• Basis and project modeling with monitoring of the PPP Unit and the Legal Department of the state of BahIa;

• Final approval by the Manager Council;• Start of the public consultation and bidding

(through the Stock Exchange of St Paul State - BOVESPA)

Request Flow

Capacity for implementation PPP’s Projetcs

Payment Flow

BANCO DO BRASIL

Passing of FPE

SPESTATE

contract payment

SurplusCurrent Account Specific

DESENBAHIA

Transfer of 12% of FPE(State Law)

1º

2º

3º4º

Contrato

Mechanism that mitigates the risk of default by the State of Bahia. It will create an account scroll to ensure for three months of payment

Trusty Banco do Brasil

Capacity for implementation PPP’s Projetcs

FEDERAL GOVERNMENT

Net Revenue in 2011 In R$ 1.000

19.269.970

3% of Net RevenueIn R$ 1.000

576.809

Balance Available for New Projects In R$ 1.000 (it will

suport new projects)

373.837

Capacity for implementation PPP’s Projetcs

State of Bahia

In Analysis:– Logistics Platform of San Francisco;

• Investiment expected: US$ 100 million• Government payment expected per year: US$ 5

million• the project will be located in the municipality of

Juazeiro in the semi arid region of the state• Social impact of the Platfor, in macroregion of

Juazeiro.: the employment estimate for the platform is between 992 and 1612 people, related directly or indirectly, with the logistics activity

NEW PROJECTS

3d image of the platform

18

NEW PROJECTS

19

3d image of the platform

NEW PROJECTS

20

Service CenterTruck CenterFruit Distribution Center and Regional Center for Export (temperature-controlled storage)Regional Distribution Center (general deposit)Grain Port Terminal

Area planned for the terminal railroad

Plataform Configuration

Two types of warehouses with facilities for temperature control

Type1 Deposits of 7 m high and 12 m or 24 m from the front, with 1 or 2 respectively, and a dock door for employees

Type2 2Deposits of 12 and 45 feet high in front, with 5 dock high door and one for employees

Two types of conventional warehouses

Type3 3Deposits of 7 m high and 12 m from the front, with two docks and a door respectively for employees

Type4 4Deposits of 12 and 45 feet high in front, with 5 dock high door and one for employees

In Analysis:– Metro System

• Investment expected: US$ 1,6 billion;• .Government payment expected per year 40

million• Government payment expected per year: US$ 35

million for 30 years• the concession contract includes:construction of

28 km of subway line; purchase of vehiclesand maintenance and operation of the system

NEW PROJECTS

LAPALAPA

PÓLVORA

PÓLVORA

BROTASBROTAS

BONOCÔBONOCÔ

ACESSO NORTEACESSO NORTE

RODOVIÁRIA

RODOVIÁRIA

PERNAMBUÉS

PERNAMBUÉS

IMBUÍIMBUÍ

CABCAB

PITUAÇUPITUAÇU

FLAMBOYANT

FLAMBOYANT

TAMBORUGY

TAMBORUGY

PAZPAZMUSSURUNGA

MUSSURUNGA

São Cristóvão

São Cristóvão

TRANSBORDO NO

TRANSBORDO NO

AEROPORTO

AEROPORTO

LAURO DE FREITAS

LAURO DE FREITAS

DETRANDETRAN

RETIRORETIRO

JUÁJUÁ

PIRAJÁPIRAJÁ

Line 1, part 1

line 1, part 2

line 2

Suburban Train

Line 1, part 1

line 1, part 2

line 2

Suburban Train

Aeroporto

Aeroporto

Arena Fonte NovaArena Fonte Nova

Estádio PituaçuEstádio Pituaçu

MAPPING AND METRO STATIONS

Line 1, part 1 is finished

Under discussion- Prison system with focus on rehabilitation of the prisoner;-PFI of Couto Maia Hospital - a new contagious infectious disease hospital with 165 beds- A diagnostic center

Range of activities:– Building facilities & buying/leasing equipment– Maintaining facilities and equipment– Delivering diagnostic services according to

contractually specified performance levels– The contracts may be established for dialysis,

radiotherapy, and physical rehabilitation centers

NEW PROJECTS

www.seplan.ba.gov.br

Jose Sergio Gabrielli de AzevedoSEPLAN Bahia

Thank you