SAO PAULO MACRO-METROPOLIS

SAO PAULO MACRO-METROPOLISThe largest urban system in Brazil

A study on the Sao Paulo urban network and the regionalization of theSão Paulo State carried out between 2009 and 2010 by Emplasa (EmpresaPaulista de Planejamento Metropolitano S.A. - Sao Paulo SateMetropolitan Planning Company) and by the Fundação Sistema Estadualde Análise de Dados - SEADE (State System of Data Analysis Foundation)identified a new urban phenomenon called Sao Paulo Macro-Metropolis(SPMM).

It is the broadest and most complex urban system of the country, with173 municipalities, whose consolidation took place between 2000 and2010.

It concentrates the Metropolitan Regions of Sao Paulo, Campinas, Santosand the Paraiba Valley and the Northern Coast, the Urban Agglomerationsof Jundiai, Sorocaba and Piracicaba, plus the Micro-Regions of Bragantinaand São Roque; all of them being highly influenced by the main hub, theCity of Sao Paulo.

In the macro-metropolis territory, everything is superlative. Over 30 millionof inhabitants dwell there, that is, 73.4% of the State population, whogenerate products and services equivalent to 82,7% of the State GrossDomestic Product (GDP) and 27,7% of the Brazilian GDP, according todata shown in the 2010 Census carried out by the Instituto Brasileiro deGeografia e Estatística - Brazilian Institute of Geography and Statistics(IBGE). It covers 50 thousand square kilometers, encompassing 50% ofthe State urban patch.

That is why the Macro-Metropolis has been identified as a complex urban-regional phenomenon, gathering clusters of urban agglomerations andarticulated networked centers, in a unique process of economic and socialrelations.

According to specialists, it is a new urban design, or a new scale ofmetropolization.

Sources: Emplasa, Seade, SEP, 2010.

State Government of Sao Paulo

Geraldo AlckminGovernor

Secretariat of Metropolitan Development

Edson AparecidoSecretary

Edmur MesquitaAssistant Secretary

Marcos CampagnoneChief of Staff

Sao Paulo Company of Metropolitan Planning SA - Emplasa

Renato ViégasChief Executive Officer

Luiz José PedrettiDirector Vice-President

Rovena NegreirosPlanning Director

Diana MottaProject Management Director

Sideval AroniAdministrative and Financial Director

Santos Metropolitan Agency - Agem

Marcos Aurélio AdegasExecutive Director

Campinas Metropolitan Agency - Agemcamp

Cristina CarraraExecutive Director

THE MACRO-METROPOLIS IN NUMBERS

Sources: IBGE. In association with State Statistical Organizations and State Government Secretariats / Seade Foundation.

Regional Units Number of Municipalities

Total Population 2010 GDP 2009 Area Oscillating Flux

Received 2000 Inhabitants % SPS % Brazil Millions of Reais % SPS % Brazil per Capita km² % SPS % Brazil

Jundiaí 7 698,724 1.69 0.37 27,886,413.35 2.57 0.86 40,699.69 1,269 0.51 0.01 45,646

Piracicaba 22 1 307,256 3.17 0.69 29,758,481.72 2.74 0.92 23,047.79 7,003 2.82 0.08 29,043

Sorocaba 22 1 447,331 3.51 0.76 34,178,286.51 3.15 1.06 24,018.27 6,092 2.45 0.07 46,319

Bragantina 11 391,738 0.95 0.21 6,302,635.01 0.58 0.19 16,333.57 2,912 1.17 0.03 7,723

São Roque 5 262,484 0.64 0.14 4,789,748.56 0.44 0.15 18,454.33 2,469 0.99 0.03 741

Santos 9 1,664,136 4.03 0.87 39,992,888.47 3.69 1.23 24,306.01 2,423 0.98 0.03 111,213

Campinas 19 2,797,137 6.78 1.47 85,733,756.14 7.91 2.65 31,221.38 3,646 1.47 0.04 168,843

São Paulo 39 19,683,975 47.70 10.32 613,060,482.63 56.54 18.93 31,446.63 7,944 3.20 0.09 1,115,089

Paraíba Valley and North Coast

39 2,264,594 5.49 1.19 55,594,849.68 5.13 1.72 24,869.55 16,181 6.52 0.19 69,785

Macro-Metropolis 173 30,517,375 73.96 16.00 897,297,542.07 82.75 27.70 29,744.46 49,938 20.12 0.59 1,594,412

São Paulo State 645 41,262,199 100.00 21.63 1,084,353,489.63 100.00 33.47 26,202,22 248,210 100.00 2.92 1,902,677

Brazil - 190,732,694 - 100.00 3,239,404,053.00 NA 100.00 16,917.66 8,514,876 NA 100.00 -

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INTEGRATED PUBLIC POLICIES

The Sao Paulo Macro-Metropolis configures an important urban systemthat covers 20% of the State surface, and concentrates cities located atan approximate 200 km radius from the State capital. There is such anintense articulation and integration among the towns within this system,that its main problems can only be solved in an integrated manner.

Since there are many issues of common interest- water supply, sewagecollection and treatment, waste management, housing, publictransportation, health care and education - it is more productive andeconomical for public authorities to address them altogether, by meansof integrated public policies, which is a great challenge for governmentauthorities.

Because of its size and social-economic importance, the Macro-Metropolisis a region of particular interest for Sao Paulo State's metropolitan planning.That is why Emplasa/Seade's study proposes the elaboration of an Agendaincluding joint intervention strategies in the process of formulating anddeveloping regional public policies.

It is also recommended that financial resources are assured in the PPA(Plano Plurianual - Multiannual Plan) and in the yearly budgets for regionalprojects and programs and that governance mechanisms are defined tosuit the planning and management needs of this new urban phenomenon.

The complete set of information and analyses on the Sao Paulo Macro-Metropolis can be found in the "Study on the Morphology and FunctionalHierarchy of the Sao Paulo Urban Network and Regionalization of SaoPaulo State", concluded in December 2010, which is available on theEmplasa web-site (www.emplasa.sp.gov.br).

The project was developed by Emplasa and Seade, under a technicalcooperation agreement with the then Economy and Planning StateSecretariat (SEP), currently Regional Development and Planning StateSecretariat.

The main destinations of imported cargo to the Viracopos Airport arelocated within an approximate radius of 150 kilometers.

Passenger movement shows a huge concentration of flows within theMacro-Metropolis, both regarding origins (95%) and destinations (97%).The origin and destination of most trips lie within the Macro-Metropolisitself (95%).

As we can observe, highway and airport flows make evident the intensefunctional articulation and integration among the urban hubs that makeup the Sao Paulo Macro-Metropolis.

REGION OF METROPOLITAN INTEREST FORGOVERNMENT INTEGRATED ACTION

The study carried out by Emplasa and Seade also presented a set ofcontributions to the debate on the integrated formulation andimplementation of metropolitan and regional development public policies,as follows:

The need to understand the Sao Paulo Macro-Metropolis as afunctionally integrated territory that must be acknowledged as a Regionof Metropolitan Interest for Government Integrated Action.

The need to adopt the territory as a platform of public policy integration,so as to optimize public investments and to reduce economic and so-cial inequalities, besides promoting the rational use of the territoryand its cultural and natural resources, aiming at environmentalprotection and sustainable development.

The need to integrate large programmed investment projects for theregion, both those carried out directly by the State or other governmentallevels and those implemented by the private sector.

The need to organize indispensable strategies and routines thatevaluate the impacts exerted on the territory, keeping in mind theircapacity to induce further concentration and their power to stimulatefurther regional imbalance resulting from such concentration.

The need to approach the Macro-Metropolis concentration through astrategic plan for future development, which sets guidelines andparameters for the expansion of basic infrastructure. In this case, areasin which investment concentration is foreseen must be prioritized, suchas the SMR and its coast, from where the Pre-Salt oil will be extracted.

The need to insert Macro-Metropolis' issues in the State's Agenda,covering essential issues, such as:

- Debate on the integration of public policies usually planned for singlesectors.

THE TERRITORY OF THE MACRO-METROPOLIS

It was agreed upon to denominate Sao Paulo Macro-Metropolis thismetropolization phenomenon in a new scale, which was consolidatedalong a decade in the State of São Paulo. This large region has been theobject of technical-institutional studies carried out by Emplasa since thebeginning of the 1990s.

More recently, it was acknowledged by the State Government, whichstarted elaborating explicit public policy proposals for the region.

State Decree nº 52.748/2008, for example, obligatorily defines the Macro-Metropolis as the planning area of the Water Resource Master Plan. Afterall, springs that supply the State's most densely populated towns arelocated there.

Hydrographic basins located in the region are: Mogi-Guaçu, Paraiba doSul and the North Coast, three of them in partial terms: Piracicaba, Capivariand Jundiai, Tiete/Sorocaba, Alto Tiete and Santos.

The territorial limits of the Macro-Metropolis still cause divergences,because the outlines proposed in different technical studies do not alwayscoincide. However, this issue demands urgent decisions on the part ofpublic authorities so as to consider it as a priority geographic area inorder to adopt integrated public policies.

LOCATION AND CHARACTERISTICS

The Macro-Metropolis occupies the southeastern part of the state, coveringan area of 49,911.20 km² (20.11% of the state territory and 0.48% of thenation's surface).

30,517,375 inhabitants dwelled there in 2010 (73,96% of the State total),according to data collected in the 2010 Census carried out by IBGE -Instituto Brasileiro de Geografia e Estatística - Brazilian Institute ofGeography and Statistics.

The Emplasa/Seade study shows that the formation of this extensiveregion is associated with the urbanization process and economicdevelopment going inland, as well as the productive and populationdecentralization taking place from the Sao Paulo Metropolitan Region(SPMR).

Its economic structure is diversified and complex, with the developmentof modern high-tech operations in diverse economic segments.

Despite being an area with significant structural heterogeneity, with variouseconomic, social and urban development potentials, its social debt is stillhigh.

CARGO MOVEMENT IN SÃO PAULO STATE AIRPORTS - 2005

CARGO ORIGIN AND DESTINATION (%)

Source: Transport Secretariat - Dec./2006.

Origin-Destination survey data from the Metropolitan Transport Secretariatshow that trips within metropolitan areas correspond to more than 80% oftotal daily commutations, above all to and from the city hubs of Sao Paulo,Santos and Campinas.

The average daily flow of cargo volumes, according to surveys carriedout in 2006 by ARTESP (Agência Reguladora de Serviços PúblicosDelegados de Transporte do Estado de São Paulo - Sao - Paulo StateDelegated Public Transport Services Regulating Agency), reveal theimportance of the Sao Paulo metropolitan hub and its region of influence,the Macro-Metropolis.

Airports through which cargo transport takes place in the State of SaoPaulo are also located in the Macro-Metropolis and basically share exportand import operations.

Export prevails at Guarulhos Airport and import prevails at CampinasAirport. In 2005, around 60% of the cargo transported in the State passedthrough Guarulhos Airport.

Truck cargo transport with airports as their origin or destination show anopposite movement. The airport that imports a larger volume of cargogenerates a larger number of truck trips. Inversely, the airport that exportsa larger volume of cargo attracts a larger number of truck trips.

Destination Away from the Macro-

Metropolis Macro-Metropolis State

Origin

Away from the Macro-Metropol is 23.86 10.52 34.38

Macro-Metropolis 12.94 52.68 65.62

State of SP 36.80 63.20 100

Airports Total Cargo (ton.)

% Imports % Exports Truck Trips (abs. nos.)

Production Attraction Total

Cumbica 270 885 42.80 57.20 38 180 50 930 89 110

Viracopos 175 183 61.50 38.50 80 061 50 170 130 232

Total 446 068

118 241 101 100 219 342

Source: Transport Secretariat/Artesp – Survey on the Origin and Destination of Ground and AirCargo Transport in Sao Paulo State. Sao Paulo, Dec/2006.

This is made evident by the precarious housing conditions of a significantpart of the population, the growing occupation of risk areas and the deficienturban and social infrastructure, among other issues.

Even though it is not totally co-urbanized (situation in which two or moretowns have their territories connected, becoming almost one), due tophysical barriers and the presence of protected areas, the Macro-Metropolis has a traffic and transportation system that provides intensearticulation of urban spaces, besides functional integration of productivestructures.

URBANIZATION GROWS AND POPULATIONDECREASES

Over the last decades, the Macro-Metropolis has shown urbanization ratesof over 90%. In 2010, this index reached almost 94.1%, so being that thelargest population dwells in the SPMR (São Paulo Metropolitan Region).

In the 2000-2010 period a significant change in the demographic patterntook place, with decreasing population growth rates in the State and inthe Macro-Metropolis, due to decreasing fertility and mortality rates.Migration rates have also decreased, due to the opening of new occupationboundaries and to stimuli resulting from public policies fostering economicdecentralization.

Over the last decade 30 thousand people have left the Sao PauloMetropolitan Area yearly. Hence, the 2010 Census showed that populationgrowth has been the lowest in the period.

Between 2000 and 2012 the population growth rate in the Macro-Metropolis dropped to 0.97%, the lowest ever shown in any Census, wellunder the State rate of 1.09%.

These changes reflected on the population's age structure. The base ofthe age pyramid shrunk, due to fertility decrease, with the consequentincrease of the Active Age Population (AAP) and the elderly.

The new demographic pattern places great challenges for publicauthorities. Besides having to deal with education, culture and access tonew technologies - for youngsters and the active age population - theauthorities must also formulate integrated actions to make life morecomfortable for the elderly, which is a growing age group.

TWO MILLION PEOPLE ON THE GO

Almost two million people commute daily in Sao Paulo State, seekingbetter education and job opportunities.

The oscillatory movement is much more intense among the Macro-Metropolis' towns, which receive 84% and generate 82% of suchmovement. Out of the total of 1.9 million commutations, we point outthose moving to the city of Sao Paulo, which receives 671,116 peopledaily to work or study (42% of the total).

Campinas, Sao Bernardo do Campo, Santos, Santo Andre, Barueri, SaoCaetano do Sul, Osasco, Jundiai and Guarulhos complete the list of citiesthat most receive oscillatory flows (60% of the state flows and 72% ofthose received by the Macro-Metropolis).

Macro-Metropolitan municipalities also concentrate the most sophisticatedhealth equipment, and receive more than half of the hospitalizationauthorizations in the State.

The region is still the hub where the country's main highway connectionsconverge: the Anchieta/Imigrantes and Anhanguera/Bandeirantessystems, plus Presidente Dutra, Ayrton Senna, Carvalho Pinto, CasteloBranco, Fernao Dias and Regis Bittencourt highways, important roadsthat favor economic expansion and mobility in the State.

In such a context, it is worth of note the importance of the Rodoanel(highway ring). Upon finishing the east and north stretches, still in a projectphase, it will interconnect highways around the city of Sao Paulo. Hence,there will be a significant improvement of circulation conditions in theCapital and easier access to the Macro-Metropolitan area.

According to Márcio Rogério Silveira, "[...] the intensity of circulation andexchanges in this privileged area results in (...) high flow density (...)which, according to DER (2008), reaches the rate of 50% of the state'scirculating economic flows. From this area outwards, there is reductionof flow intensity".

RAILWAY NETWORK AND AIRPORT SYSTEM

The region's railway network is integrated by outflow corridors for productsmanufactured in Sao Paulo and other states towards the Santos Port, themain port in Latin America.

Regarding the airport system, the main airports are Congonhas (SaoPaulo), Andre Franco Montoro (Guarulhos) and Viracopos (Campinas)International Airports, responsible for the highest of passenger numbersand cargo volumes transported in Brazil.

However, the increasing demand for passenger and cargo transportationgenerates an urgent need to increase airport services and the installedinfrastructural capacity.

POPULATION - 1991 - 2000 - 2009 - URBANIZATION RATES. GEOMETRIC GROWTH RATE AND INHABITANTS PER AGEGROUP - 2009

(*) Except the Macro-MetropolisSources: IBGE / Seade.

RegionaL Units

Population Urbanization Rate (%) TGCA

(% a.a.) Inhabitants per Age Group /

SPS 2010 (%)

2000 2010 2000 2010 2000/2010 Up to 14 years old

15 to 59 years old

60 years old and

over

Macro-Metropolis 27 217 885 30 517 375 95.1 94.1 1.15 21.8 67.3 11.0

Other Municipalities (*) 9 814 518 10 744 824 88.8 91.4 0.91 20.7 66.1 13.3

State of São Paulo 36 974 378 41 262 199 93.4 95.9 1.09 21.5 67.0 11.6

CITY SEWER COLLECTION AND TRACTABILITY INDICATORCITY SEWER COLLECTION AND TRACTABILITY INDICATOR

Sources: IGC; DER, 2003; Emplasa, Seade, SEP, 2010; Cetesb, 2008

ENVIRONMENT AT RISK

Another consequence of urban expansion, particularly historical irregularoccupation of the land, is the strong pressure exerted on the Macro-Metropolis environmental assets. Within such a context, protected areasbecome easily vulnerable.

The risk of eventual lack of water resources is equally worrying, due topopulation growth and to the intense and disordered soil occupation aroundwater-spring areas.

Vis-à-vis such a reality, it is primordial for the Macro-Metropolis to offeran efficient and differentiated infrastructure as the only way to find abalance between its capacity to attract investments and sustainabledevelopment.

The way to overcome these complex issues is to adopt new forms ofurban management, compatible with such a scale of urbanization.

Today, the opposite is the case. Interventions are conceived andimplemented within each sector per se in a fragmented manner, with noactions shared among public authorities, private initiative and civil society.

HIGH ECONOMIC CONCENTRATION

The Sao Paulo Macro-Metropolis accounts for most of the economicactivity in the state, above all as regards the industrial and service sectors.

In 2009, 82.7% of the Sao Paulo GNP was produced within this territory.The largest contributions correspond to Sao Paulo and Campinasmetropolises and the Paraiba Valley and the Northern Coast.

The SPMR's participation is predominant in the Macro-Metropolis,corresponding to 56.5% of the state GNP.

Data prove that economic concentration is greater than demographicconcentration. The Metropolitan Regions of Sao Paulo (56.5% of the GNPand 47.70% of the population) and Campinas (7.9% of the GNP and 6.8%of the population) are clear examples of such phenomenon. Only theMetropolitan Region of Santos (MRS) shows a relatively similarparticipation between GNP and population (4.0 %).

BASIC SANITATION SERVICES

Basic sanitation services in 93 of the 173 cities (53.8%) of the Sao PauloMacro-Metropolis are operated by Sabesp (Companhia de SaneamentoBásico do Estado de São Paulo - Sao Paulo State Water and SanitationUtility).

Locations served by Sabesp prevail in the SPMR (Sao Paulo MetropolitanRegion) and in the SMR (Santos Metropolitan Region). In CMR (CampinasMetropolitan Region) and in the Piracicaba UA (Urban Agglomeration)there are towns which have their own operational systems, that also haveimportant participation in the Sorocaba and Paraiba Valley and North CoastUAs.

The general status of these sanitation systems is not the best. Over 63%of the towns within the Macro-Metropolis register a ICTEM (MunicipalUrban Population Sewage Collection and Tractability Index) lower thanfive (in a 1 to 10 scale), whereas, among these, 17% are below index 1.

This is the case of the municipalities of Campo Limpo Paulista and VarzeaPaulista (Jundiai UA), Lavrinhas and Queluz (Sao Jose dos Campos UA),Tuiuti (Bragantina micro-region), Araçariguama and Sao Roque (SaoRoque micro-region),), Guaruja and Praia Grande (SMR) and themunicipalities of Barueri, Caieiras, Cajamar, Embu, Francisco Morato,Franco da Rocha, Itapecerica da Serra, Itapevi, Jandira and Santana deParnaíba (SPMR).

Only 26% of towns present indexes between 5 and 8 and 11% register anindex over 8. The only town with an ICTEM equal to 10 is Iracemapolis,which belongs to the Piracicaba UA.

The Sorocaba UA, with an average index of 5.6, is the one that presentsthe best sewage collection and treatment conditions. The worst situationis found in the Sao Roque micro-region, with an average index of 2.6.

GDP (MILLIONS OF REAIS AND PER CAPTA) - SHARE OFTHE MACRO-METROPOLIS, SÃO PAULO STATE AND BRAZIL -2009

Sources: Seade Foundation; IBGE.

PRECARIOUS SETTLEMENTS

Despite the concentration of wealth, the Macro-Metropolis showscontradictions.

According to the 2010 Census data, 2.68 million people dwell in so calledsubnormal sectors - favelas (shanty towns), invaded areas and risk areas,among others - within the Macro-Metropolis, which is equivalent to 98%out of a total of 2.7 million inhabitants who dwell in such conditions in theState of Sao Paulo as a whole.

80.4% of the total population dwelling in subnormal agglomerates lived inthe SPMR, followed by 11%, that is, 297 thousand inhabitants, in Santos.

SPS Regions and Macro-Metropolis

GDP 2009¹ (Millions of

Reais)

GDP per Capita (Reais)

Relative Share (%)

SPMM GDP

SPS GDP Brazil GDP

SPMR 613 060 483 31 447 68.3 56.5 18.9

CMR 85 733 756 31 221 9.6 7.9 2.6

SMR 39 992 888 24 306 4.5 3.7 1.2

VALLEYMR 55 594 850 24 870 6.2 5.1 1.7

UA of Jundiaí 27 886 413 40 700 3.1 2.6 0.9

UA of Piracicaba 29 758 482 23 048 3.3 2.7 0.9

UA of Sorocaba 34 178 287 24 018 3.8 3.2 1.1

Bragantina MR 6 302 635 16 334 0.7 0.6 0.2

São Roque MR 4 789 749 18 454 0.5 0.4 0.1

Macro-Metropolis 897 297 542 29 744 100.0 82.7 27.7

Other Municipali ties (*) 187 055 948 - NA 17.3 5.8

State of São Paulo 1 084 353 490 26 202 NA NA 33.5

Brazil 3 239 404 053 16 918 NA NA 100.0

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INHABITANTS DWELLING IN SUBNORMAL SETTLEMENTS -2010

ENVIRONMENTAL HERITAGE AND SUSTAINABILITY

The natural environmental assets protected by Sao Paulo State coverapproximately 13% of the territory. A large part of this percentage is locatedwithin the Macro-Metropolis territory, consisting of an important greenbelt.

There we find the most important remnants of the state's Atlantic Forest,plus dozens of preservation units.

These are Total Protection Units - parks, ecological and biological reserves- and Sustainable Usage Units - state and federal environmental protectionareas of relevant ecological interest and national forest. Besides otherprotected units, such as natural areas under governmental trust, statereserves, areas under special protection, state ecological parks andIndigenous peoples' lands.

Because of all these environmental assets subject to protection and dueto the great pressure urban occupation exerts on them, preservation units

located in the Macro-Metropolis territory are crucial to maintainenvironmental sustainability.

Territorial Units Surveyed

Inhabitants in Subnormal

Sectors

Total of Inhabitants in all Sort of

Sectors

% of Inhabitants in

Precarious Settlements

Metropolitan Regions

SMR 297 191 1 663 082 17.9

CMR 160 670 2 798 477 5.7

SPMR 2 162 368 19 672 582 11.0

VPMR 18.601 2 468 956 0.8

Total 4 MRs 2 638 830 26 603 097 9.9

Urban Agglomerations

AU JUNDIAÍ 23 157 768 952 3.0

AU PIRACICABA 17 439 1 307 801 1.3

AU SOROCABA 6 153 1 447 973 0.4

Total 3 AUs 46 749 3 524 726 1.3

Micro-regions

MR BRAGANTINA 1 241 391 698 0.3

MR SÃO ROQUE 0 262 625 0.0

Total 2 MRs 1 241 654 323 0.2

Total Macro-Metropolis 2 686 820 30 782 146 8.7

Other Municipalities SP

Away from the Macro-Metropolis

28 247 10 470.014 0.3

State of SP 2 715 067 41 252 160 6.6

Brazil 11 425 644 190 755 999 6.0

WATER RESOURCE PLANNING

Water resource planning and management in the State of Sao Paulo arecarried out by 22 WRMUs (Water Resource Management Units).

The volume of water produced within the limits of the Sao Paulo Stateterritory, not including sub-basin contributions, is estimated at 3,120 m3per second (surface production). At its minimum outflow, the estimatedproduction is 893 m3 per second.

Numbers reveal that there is enough water to supply the State, becausefresh water availability is much greater than global demand.

However, this confirmation is not enough to dismiss worries. When theevaluation is performed per WRMU, the demand/availability ratio becomesremarkably uneven, making regional differences evident. Such is the caseof the WRMUs located within the Macro-Metropolis, which essentiallyserve urban areas, whose demand for fresh water is above availablewater resources. That is why they operate in critical conditions.

WRMU 6, Alto Tiete, which concentrates most of SPMR's urbanized areas,has the highest total and urban water demand in the State, where urbanwater supply is predominant (79.3% of the total).The urban water demandin this unit corresponds to almost half of the State's entire water demand.

Also operating under critical situations are industrial WRMUs 5 (Piracicaba/Capivari/Jundiai), 7 (Santos) and 10 (Tiete/Sorocaba), which implementwater transposition to meet each other's water demand.

WRMU 5 (Piracicaba/Capivari/Jundiai) "lends" up to 31 m3 per secondto WRMU 6 (Alto Tiete), by means of the Cantareira System, to meetSPMR's public water supply.

Water reversion is also implemented from WRMU 6 to WRMU 7 (Santos),for power generation, by means of the Billings/Henry Borden System.

Water supplies estimated for future demands show that fresh waterdemand/availability in the Macro-Metropolis may evolve to an even morecritical situation.

That is why water resource management actions must be efficient andbalanced, in order to prevent water scarcity from imposing restrictions onregional development.

MAIN PROTECTION AREAS

Due to regional importance the following preservation units are worthmentioning: the state parks of the Serra do Mar and Serra da Cantareira,the federal environmental protection areas of the Paraiba do Sul riverbasin and the Serra da Mantiqueira, environmental protection state areasof Piracicaba and Juqueri-Mirim, Corumbatai-Botucatu-Tejupa, as wellas the Cantareira System and the Lowlands of the Tiete River.

Also relevant are the natural areas under governmental trust, such asSerra do Mar and Serra de Paranapiacaba, Serras do Japi, Guaxindubaand Jaguacoara and the Morro Grande Forest Reserve.

Laws that delimit the Water-Spring Protection Areas (WSPAs) cover 54%of the territory of SPMR. Such laws establish parameters for soil usageand occupation, trying to minimize population density and water pollution.

Out of the 39 SPMR municipalities, 25 towns are situated on theboundaries defined by the Water-Spring Protection Law (WSPL), whereassix of them - Embu-Guaçu, Itapecerica da Serra, Juquitiba, Ribeirao Pires,Rio Grande da Serra and Sao Lourenço da Serra - are located within theWater-Spring Protection Areas (WSPAs).

The Water-Spring Protection Law totally covers: Aruja, Biritiba-Mirim,Caieiras, Cotia, Diadema, Embu, Embu-Guaçu, Ferraz de Vasconcelos,Franco da Rocha, Guarulhos, Itapecerica da Serra, Juquitiba, Mairipora,Maua, Moji das Cruzes, Poa, Ribeirao Pires, Rio Grande da Serra,Salesopolis, Santa Isabel, Santo Andre, São Bernardo do Campo, SaoLourenço da Serra, Sao Paulo and Suzano.

Notwithstanding, despite how strict protection laws may be, irregularoccupation of these areas has intensified over the last years generatingserious urban and environmental problems.

These incidents are red flags pointing at the need to review and reinforceSPRM's spring protection legislation, rather than just adjusting the law toFederal (1988) and State (1989) Constitution guidelines.

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and the Lowlands of the T

iete River.

Also relevant are the natural areas under governm

ental trust, such asS

erra do Mar and S

erra de Paranapiacaba, S

erras do Japi, Guaxinduba

and Jaguacoara and the Morro G

rande Forest R

eserve.

Laws that delim

it the Water-S

pring Protection A

reas (WS

PA

s) cover 54%of the territory of S

PM

R. S

uch laws establish param

eters for soil usageand occupation, trying to m

inimize population density and w

ater pollution.

Ou

t of th

e 3

9 S

PM

R m

un

icipa

lities, 2

5 to

wn

s are

situa

ted

on

the

boundaries defined by the Water-S

pring Protection Law

(WS

PL), w

hereassix of them

- Em

bu-Guaçu, Itapecerica da S

erra, Juquitiba, Ribeirao P

ires,R

io Grande da S

erra and Sao Lourenço da S

erra - are located within the

Water-S

pring Protection A

reas (WS

PA

s).

Th

e W

ate

r-Sp

ring

Pro

tectio

n L

aw

tota

lly cove

rs: Aru

ja, B

iritiba

-Mirim

,C

aieiras, Cotia, D

iadema, E

mbu, E

mbu-G

uaçu, Ferraz de V

asconcelos,F

ranco da Rocha, G

uarulhos, Itapecerica da Serra, Juquitiba, M

airipora,M

au

a, M

oji d

as C

ruze

s, Po

a, R

ibe

irao

Pire

s, Rio

Gra

nd

e d

a S

erra

,S

alesopolis, Santa Isabel, S

anto Andre, S

ão Bernardo do C

ampo, S

aoLourenço da S

erra, Sao P

aulo and Suzano.

No

twith

stan

din

g, d

esp

ite h

ow

strict pro

tectio

n la

ws m

ay b

e, irre

gu

lar

occupation of these areas has intensified over the last years generatingserious urban and environm

ental problems.

These incidents are red flags pointing at the need to review

and reinforceS

PR

M's spring protection legislation, rather than just adjusting the law

toF

ederal (1988) and State (1989) C

onstitution guidelines.

PRESERVATION UNITSPRESERVATION UNITS

Sources: IGC; DER, 2003; Emplasa, Seade, SEP, 2010; SMA, 2009

Source: IBGE. 2010 Census - preliminary data (Dec/11).

INHABITANTS DWELLING IN SUBNORMAL SETTLEMENTS -2010

ENVIRONMENTAL HERITAGE AND SUSTAINABILITY

The natural environmental assets protected by Sao Paulo State coverapproximately 13% of the territory. A large part of this percentage is locatedwithin the Macro-Metropolis territory, consisting of an important greenbelt.

There we find the most important remnants of the state's Atlantic Forest,plus dozens of preservation units.

These are Total Protection Units - parks, ecological and biological reserves- and Sustainable Usage Units - state and federal environmental protectionareas of relevant ecological interest and national forest. Besides otherprotected units, such as natural areas under governmental trust, statereserves, areas under special protection, state ecological parks andIndigenous peoples' lands.

Because of all these environmental assets subject to protection and dueto the great pressure urban occupation exerts on them, preservation units

located in the Macro-Metropolis territory are crucial to maintainenvironmental sustainability.

Territorial Units Surveyed

Inhabitants in Subnormal

Sectors

Total of Inhabitants in all Sort of

Sectors

% of Inhabitants in

Precarious Settlements

Metropolitan Regions

SMR 297 191 1 663 082 17.9

CMR 160 670 2 798 477 5.7

SPMR 2 162 368 19 672 582 11.0

VPMR 18.601 2 468 956 0.8

Total 4 MRs 2 638 830 26 603 097 9.9

Urban Agglomerations

AU JUNDIAÍ 23 157 768 952 3.0

AU PIRACICABA 17 439 1 307 801 1.3

AU SOROCABA 6 153 1 447 973 0.4

Total 3 AUs 46 749 3 524 726 1.3

Micro-regions

MR BRAGANTINA 1 241 391 698 0.3

MR SÃO ROQUE 0 262 625 0.0

Total 2 MRs 1 241 654 323 0.2

Total Macro-Metropolis 2 686 820 30 782 146 8.7

Other Municipalities SP

Away from the Macro-Metropolis

28 247 10 470.014 0.3

State of SP 2 715 067 41 252 160 6.6

Brazil 11 425 644 190 755 999 6.0

WATER RESOURCE PLANNING

Water resource planning and management in the State of Sao Paulo arecarried out by 22 WRMUs (Water Resource Management Units).

The volume of water produced within the limits of the Sao Paulo Stateterritory, not including sub-basin contributions, is estimated at 3,120 m3per second (surface production). At its minimum outflow, the estimatedproduction is 893 m3 per second.

Numbers reveal that there is enough water to supply the State, becausefresh water availability is much greater than global demand.

However, this confirmation is not enough to dismiss worries. When theevaluation is performed per WRMU, the demand/availability ratio becomesremarkably uneven, making regional differences evident. Such is the caseof the WRMUs located within the Macro-Metropolis, which essentiallyserve urban areas, whose demand for fresh water is above availablewater resources. That is why they operate in critical conditions.

WRMU 6, Alto Tiete, which concentrates most of SPMR's urbanized areas,has the highest total and urban water demand in the State, where urbanwater supply is predominant (79.3% of the total).The urban water demandin this unit corresponds to almost half of the State's entire water demand.

Also operating under critical situations are industrial WRMUs 5 (Piracicaba/Capivari/Jundiai), 7 (Santos) and 10 (Tiete/Sorocaba), which implementwater transposition to meet each other's water demand.

WRMU 5 (Piracicaba/Capivari/Jundiai) "lends" up to 31 m3 per secondto WRMU 6 (Alto Tiete), by means of the Cantareira System, to meetSPMR's public water supply.

Water reversion is also implemented from WRMU 6 to WRMU 7 (Santos),for power generation, by means of the Billings/Henry Borden System.

Water supplies estimated for future demands show that fresh waterdemand/availability in the Macro-Metropolis may evolve to an even morecritical situation.

That is why water resource management actions must be efficient andbalanced, in order to prevent water scarcity from imposing restrictions onregional development.

GD

P (M

ILL

ION

S O

F R

EA

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OP

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IS, S

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GE

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De

spite

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con

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tratio

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alth

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contradictions.

According to the 2010 C

ensus data, 2.68 million people dw

ell in so calledsubnorm

al sectors - favelas (shanty towns), invaded areas and risk areas,

among others - w

ithin the Macro-M

etropolis, which is equivalent to 98%

out of a total of 2.7 million inhabitants w

ho dwell in such conditions in the

State of S

ao Paulo as a w

hole.

80.4% of the total population dw

elling in subnormal agglom

erates lived inthe S

PM

R, follow

ed by 11%, that is, 297 thousand inhabitants, in S

antos.

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UA

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82

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UA

of S

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2

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nicipalities (*)

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NA

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0.0

HYDRIC RESOURCE MANAGEMENT UNITSHYDRIC RESOURCE MANAGEMENT UNITS

Sources: IGC; DER, 2003; Emplasa, Seade, SEP, 2010; State Law 9034. 1994

ENVIRONMENT AT RISK

Another consequence of urban expansion, particularly historical irregularoccupation of the land, is the strong pressure exerted on the Macro-Metropolis environmental assets. Within such a context, protected areasbecome easily vulnerable.

The risk of eventual lack of water resources is equally worrying, due topopulation growth and to the intense and disordered soil occupation aroundwater-spring areas.

Vis-à-vis such a reality, it is primordial for the Macro-Metropolis to offeran efficient and differentiated infrastructure as the only way to find abalance between its capacity to attract investments and sustainabledevelopment.

The way to overcome these complex issues is to adopt new forms ofurban management, compatible with such a scale of urbanization.

Today, the opposite is the case. Interventions are conceived andimplemented within each sector per se in a fragmented manner, with noactions shared among public authorities, private initiative and civil society.

HIGH ECONOMIC CONCENTRATION

The Sao Paulo Macro-Metropolis accounts for most of the economicactivity in the state, above all as regards the industrial and service sectors.

In 2009, 82.7% of the Sao Paulo GNP was produced within this territory.The largest contributions correspond to Sao Paulo and Campinasmetropolises and the Paraiba Valley and the Northern Coast.

The SPMR's participation is predominant in the Macro-Metropolis,corresponding to 56.5% of the state GNP.

Data prove that economic concentration is greater than demographicconcentration. The Metropolitan Regions of Sao Paulo (56.5% of the GNPand 47.70% of the population) and Campinas (7.9% of the GNP and 6.8%of the population) are clear examples of such phenomenon. Only theMetropolitan Region of Santos (MRS) shows a relatively similarparticipation between GNP and population (4.0 %).

BASIC SANITATION SERVICES

Basic sanitation services in 93 of the 173 cities (53.8%) of the Sao PauloMacro-Metropolis are operated by Sabesp (Companhia de SaneamentoBásico do Estado de São Paulo - Sao Paulo State Water and SanitationUtility).

Locations served by Sabesp prevail in the SPMR (Sao Paulo MetropolitanRegion) and in the SMR (Santos Metropolitan Region). In CMR (CampinasMetropolitan Region) and in the Piracicaba UA (Urban Agglomeration)there are towns which have their own operational systems, that also haveimportant participation in the Sorocaba and Paraiba Valley and North CoastUAs.

The general status of these sanitation systems is not the best. Over 63%of the towns within the Macro-Metropolis register a ICTEM (MunicipalUrban Population Sewage Collection and Tractability Index) lower thanfive (in a 1 to 10 scale), whereas, among these, 17% are below index 1.

This is the case of the municipalities of Campo Limpo Paulista and VarzeaPaulista (Jundiai UA), Lavrinhas and Queluz (Sao Jose dos Campos UA),Tuiuti (Bragantina micro-region), Araçariguama and Sao Roque (SaoRoque micro-region),), Guaruja and Praia Grande (SMR) and themunicipalities of Barueri, Caieiras, Cajamar, Embu, Francisco Morato,Franco da Rocha, Itapecerica da Serra, Itapevi, Jandira and Santana deParnaíba (SPMR).

Only 26% of towns present indexes between 5 and 8 and 11% register anindex over 8. The only town with an ICTEM equal to 10 is Iracemapolis,which belongs to the Piracicaba UA.

The Sorocaba UA, with an average index of 5.6, is the one that presentsthe best sewage collection and treatment conditions. The worst situationis found in the Sao Roque micro-region, with an average index of 2.6.

POPULATION - 1991 - 2000 - 2009 - URBANIZATION RATES. GEOMETRIC GROWTH RATE AND INHABITANTS PER AGEGROUP - 2009

(*) Except the Macro-MetropolisSources: IBGE / Seade.

RegionaL Units

Population Urbanization Rate (%) TGCA

(% a.a.) Inhabitants per Age Group /

SPS 2010 (%)

2000 2010 2000 2010 2000/2010 Up to 14 years old

15 to 59 years old

60 years old and

over

Macro-Metropolis 27 217 885 30 517 375 95.1 94.1 1.15 21.8 67.3 11.0

Other Municipalities (*) 9 814 518 10 744 824 88.8 91.4 0.91 20.7 66.1 13.3

State of São Paulo 36 974 378 41 262 199 93.4 95.9 1.09 21.5 67.0 11.6

CITY SEWER COLLECTION AND TRACTABILITY INDICATORCITY SEWER COLLECTION AND TRACTABILITY INDICATOR

Sources: IGC; DER, 2003; Emplasa, Seade, SEP, 2010; Cetesb, 2008

This is made evident by the precarious housing conditions of a significantpart of the population, the growing occupation of risk areas and the deficienturban and social infrastructure, among other issues.

Even though it is not totally co-urbanized (situation in which two or moretowns have their territories connected, becoming almost one), due tophysical barriers and the presence of protected areas, the Macro-Metropolis has a traffic and transportation system that provides intensearticulation of urban spaces, besides functional integration of productivestructures.

URBANIZATION GROWS AND POPULATIONDECREASES

Over the last decades, the Macro-Metropolis has shown urbanization ratesof over 90%. In 2010, this index reached almost 94.1%, so being that thelargest population dwells in the SPMR (São Paulo Metropolitan Region).

In the 2000-2010 period a significant change in the demographic patterntook place, with decreasing population growth rates in the State and inthe Macro-Metropolis, due to decreasing fertility and mortality rates.Migration rates have also decreased, due to the opening of new occupationboundaries and to stimuli resulting from public policies fostering economicdecentralization.

Over the last decade 30 thousand people have left the Sao PauloMetropolitan Area yearly. Hence, the 2010 Census showed that populationgrowth has been the lowest in the period.

Between 2000 and 2012 the population growth rate in the Macro-Metropolis dropped to 0.97%, the lowest ever shown in any Census, wellunder the State rate of 1.09%.

These changes reflected on the population's age structure. The base ofthe age pyramid shrunk, due to fertility decrease, with the consequentincrease of the Active Age Population (AAP) and the elderly.

The new demographic pattern places great challenges for publicauthorities. Besides having to deal with education, culture and access tonew technologies - for youngsters and the active age population - theauthorities must also formulate integrated actions to make life morecomfortable for the elderly, which is a growing age group.

TWO MILLION PEOPLE ON THE GO

Almost two million people commute daily in Sao Paulo State, seekingbetter education and job opportunities.

The oscillatory movement is much more intense among the Macro-Metropolis' towns, which receive 84% and generate 82% of suchmovement. Out of the total of 1.9 million commutations, we point outthose moving to the city of Sao Paulo, which receives 671,116 peopledaily to work or study (42% of the total).

Campinas, Sao Bernardo do Campo, Santos, Santo Andre, Barueri, SaoCaetano do Sul, Osasco, Jundiai and Guarulhos complete the list of citiesthat most receive oscillatory flows (60% of the state flows and 72% ofthose received by the Macro-Metropolis).

Macro-Metropolitan municipalities also concentrate the most sophisticatedhealth equipment, and receive more than half of the hospitalizationauthorizations in the State.

The region is still the hub where the country's main highway connectionsconverge: the Anchieta/Imigrantes and Anhanguera/Bandeirantessystems, plus Presidente Dutra, Ayrton Senna, Carvalho Pinto, CasteloBranco, Fernao Dias and Regis Bittencourt highways, important roadsthat favor economic expansion and mobility in the State.

In such a context, it is worth of note the importance of the Rodoanel(highway ring). Upon finishing the east and north stretches, still in a projectphase, it will interconnect highways around the city of Sao Paulo. Hence,there will be a significant improvement of circulation conditions in theCapital and easier access to the Macro-Metropolitan area.

According to Márcio Rogério Silveira, "[...] the intensity of circulation andexchanges in this privileged area results in (...) high flow density (...)which, according to DER (2008), reaches the rate of 50% of the state'scirculating economic flows. From this area outwards, there is reductionof flow intensity".

RAILWAY NETWORK AND AIRPORT SYSTEM

The region's railway network is integrated by outflow corridors for productsmanufactured in Sao Paulo and other states towards the Santos Port, themain port in Latin America.

Regarding the airport system, the main airports are Congonhas (SaoPaulo), Andre Franco Montoro (Guarulhos) and Viracopos (Campinas)International Airports, responsible for the highest of passenger numbersand cargo volumes transported in Brazil.

However, the increasing demand for passenger and cargo transportationgenerates an urgent need to increase airport services and the installedinfrastructural capacity.

THE TERRITORY OF THE MACRO-METROPOLIS

It was agreed upon to denominate Sao Paulo Macro-Metropolis thismetropolization phenomenon in a new scale, which was consolidatedalong a decade in the State of São Paulo. This large region has been theobject of technical-institutional studies carried out by Emplasa since thebeginning of the 1990s.

More recently, it was acknowledged by the State Government, whichstarted elaborating explicit public policy proposals for the region.

State Decree nº 52.748/2008, for example, obligatorily defines the Macro-Metropolis as the planning area of the Water Resource Master Plan. Afterall, springs that supply the State's most densely populated towns arelocated there.

Hydrographic basins located in the region are: Mogi-Guaçu, Paraiba doSul and the North Coast, three of them in partial terms: Piracicaba, Capivariand Jundiai, Tiete/Sorocaba, Alto Tiete and Santos.

The territorial limits of the Macro-Metropolis still cause divergences,because the outlines proposed in different technical studies do not alwayscoincide. However, this issue demands urgent decisions on the part ofpublic authorities so as to consider it as a priority geographic area inorder to adopt integrated public policies.

LOCATION AND CHARACTERISTICS

The Macro-Metropolis occupies the southeastern part of the state, coveringan area of 49,911.20 km² (20.11% of the state territory and 0.48% of thenation's surface).

30,517,375 inhabitants dwelled there in 2010 (73,96% of the State total),according to data collected in the 2010 Census carried out by IBGE -Instituto Brasileiro de Geografia e Estatística - Brazilian Institute ofGeography and Statistics.

The Emplasa/Seade study shows that the formation of this extensiveregion is associated with the urbanization process and economicdevelopment going inland, as well as the productive and populationdecentralization taking place from the Sao Paulo Metropolitan Region(SPMR).

Its economic structure is diversified and complex, with the developmentof modern high-tech operations in diverse economic segments.

Despite being an area with significant structural heterogeneity, with variouseconomic, social and urban development potentials, its social debt is stillhigh.

CARGO MOVEMENT IN SÃO PAULO STATE AIRPORTS - 2005

CARGO ORIGIN AND DESTINATION (%)

Source: Transport Secretariat - Dec./2006.

Origin-Destination survey data from the Metropolitan Transport Secretariatshow that trips within metropolitan areas correspond to more than 80% oftotal daily commutations, above all to and from the city hubs of Sao Paulo,Santos and Campinas.

The average daily flow of cargo volumes, according to surveys carriedout in 2006 by ARTESP (Agência Reguladora de Serviços PúblicosDelegados de Transporte do Estado de São Paulo - Sao - Paulo StateDelegated Public Transport Services Regulating Agency), reveal theimportance of the Sao Paulo metropolitan hub and its region of influence,the Macro-Metropolis.

Airports through which cargo transport takes place in the State of SaoPaulo are also located in the Macro-Metropolis and basically share exportand import operations.

Export prevails at Guarulhos Airport and import prevails at CampinasAirport. In 2005, around 60% of the cargo transported in the State passedthrough Guarulhos Airport.

Truck cargo transport with airports as their origin or destination show anopposite movement. The airport that imports a larger volume of cargogenerates a larger number of truck trips. Inversely, the airport that exportsa larger volume of cargo attracts a larger number of truck trips.

Destination Away from the Macro-

Metropolis Macro-Metropolis State

Origin

Away from the Macro-Metropol is 23.86 10.52 34.38

Macro-Metropolis 12.94 52.68 65.62

State of SP 36.80 63.20 100

Airports Total Cargo (ton.)

% Imports % Exports Truck Trips (abs. nos.)

Production Attraction Total

Cumbica 270 885 42.80 57.20 38 180 50 930 89 110

Viracopos 175 183 61.50 38.50 80 061 50 170 130 232

Total 446 068

118 241 101 100 219 342

Source: Transport Secretariat/Artesp – Survey on the Origin and Destination of Ground and AirCargo Transport in Sao Paulo State. Sao Paulo, Dec/2006.

INTEGRATED PUBLIC POLICIES

The Sao Paulo Macro-Metropolis configures an important urban systemthat covers 20% of the State surface, and concentrates cities located atan approximate 200 km radius from the State capital. There is such anintense articulation and integration among the towns within this system,that its main problems can only be solved in an integrated manner.

Since there are many issues of common interest- water supply, sewagecollection and treatment, waste management, housing, publictransportation, health care and education - it is more productive andeconomical for public authorities to address them altogether, by meansof integrated public policies, which is a great challenge for governmentauthorities.

Because of its size and social-economic importance, the Macro-Metropolisis a region of particular interest for Sao Paulo State's metropolitan planning.That is why Emplasa/Seade's study proposes the elaboration of an Agendaincluding joint intervention strategies in the process of formulating anddeveloping regional public policies.

It is also recommended that financial resources are assured in the PPA(Plano Plurianual - Multiannual Plan) and in the yearly budgets for regionalprojects and programs and that governance mechanisms are defined tosuit the planning and management needs of this new urban phenomenon.

The complete set of information and analyses on the Sao Paulo Macro-Metropolis can be found in the "Study on the Morphology and FunctionalHierarchy of the Sao Paulo Urban Network and Regionalization of SaoPaulo State", concluded in December 2010, which is available on theEmplasa web-site (www.emplasa.sp.gov.br).

The project was developed by Emplasa and Seade, under a technicalcooperation agreement with the then Economy and Planning StateSecretariat (SEP), currently Regional Development and Planning StateSecretariat.

The main destinations of imported cargo to the Viracopos Airport arelocated within an approximate radius of 150 kilometers.

Passenger movement shows a huge concentration of flows within theMacro-Metropolis, both regarding origins (95%) and destinations (97%).The origin and destination of most trips lie within the Macro-Metropolisitself (95%).

As we can observe, highway and airport flows make evident the intensefunctional articulation and integration among the urban hubs that makeup the Sao Paulo Macro-Metropolis.

REGION OF METROPOLITAN INTEREST FORGOVERNMENT INTEGRATED ACTION

The study carried out by Emplasa and Seade also presented a set ofcontributions to the debate on the integrated formulation andimplementation of metropolitan and regional development public policies,as follows:

The need to understand the Sao Paulo Macro-Metropolis as afunctionally integrated territory that must be acknowledged as a Regionof Metropolitan Interest for Government Integrated Action.

The need to adopt the territory as a platform of public policy integration,so as to optimize public investments and to reduce economic and so-cial inequalities, besides promoting the rational use of the territoryand its cultural and natural resources, aiming at environmentalprotection and sustainable development.

The need to integrate large programmed investment projects for theregion, both those carried out directly by the State or other governmentallevels and those implemented by the private sector.

The need to organize indispensable strategies and routines thatevaluate the impacts exerted on the territory, keeping in mind theircapacity to induce further concentration and their power to stimulatefurther regional imbalance resulting from such concentration.

The need to approach the Macro-Metropolis concentration through astrategic plan for future development, which sets guidelines andparameters for the expansion of basic infrastructure. In this case, areasin which investment concentration is foreseen must be prioritized, suchas the SMR and its coast, from where the Pre-Salt oil will be extracted.

The need to insert Macro-Metropolis' issues in the State's Agenda,covering essential issues, such as:

- Debate on the integration of public policies usually planned for singlesectors.

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- Evaluation of regionalization models to integrate public policies forsingle sectors.

- Adequacy of the management apparatus - assessing the possibilityof using urban policy and urban management tools, as defined inthe City Statutes - in order to support regional and metropolitaninterventions carried out by the State, besides assessing approvalrules for private sector investment projects.

- Opening management systems to the private initiative and othersectors of the organized civil society. Thus, constitutional principlesregarding participation in planning will be fulfilled, granting politicallegitimacy to the urban and metropolitan agendas.

SAO PAULO MACRO-METROPOLIS

SAO PAULO MACRO-METROPOLISThe largest urban system in Brazil

A study on the Sao Paulo urban network and the regionalization of theSão Paulo State carried out between 2009 and 2010 by Emplasa (EmpresaPaulista de Planejamento Metropolitano S.A. - Sao Paulo SateMetropolitan Planning Company) and by the Fundação Sistema Estadualde Análise de Dados - SEADE (State System of Data Analysis Foundation)identified a new urban phenomenon called Sao Paulo Macro-Metropolis(SPMM).

It is the broadest and most complex urban system of the country, with173 municipalities, whose consolidation took place between 2000 and2010.

It concentrates the Metropolitan Regions of Sao Paulo, Campinas, Santosand the Paraiba Valley and the Northern Coast, the Urban Agglomerationsof Jundiai, Sorocaba and Piracicaba, plus the Micro-Regions of Bragantinaand São Roque; all of them being highly influenced by the main hub, theCity of Sao Paulo.

In the macro-metropolis territory, everything is superlative. Over 30 millionof inhabitants dwell there, that is, 73.4% of the State population, whogenerate products and services equivalent to 82,7% of the State GrossDomestic Product (GDP) and 27,7% of the Brazilian GDP, according todata shown in the 2010 Census carried out by the Instituto Brasileiro deGeografia e Estatística - Brazilian Institute of Geography and Statistics(IBGE). It covers 50 thousand square kilometers, encompassing 50% ofthe State urban patch.

That is why the Macro-Metropolis has been identified as a complex urban-regional phenomenon, gathering clusters of urban agglomerations andarticulated networked centers, in a unique process of economic and socialrelations.

According to specialists, it is a new urban design, or a new scale ofmetropolization.

Sources: Emplasa, Seade, SEP, 2010.

State Government of Sao Paulo

Geraldo AlckminGovernor

Secretariat of Metropolitan Development

Edson AparecidoSecretary

Edmur MesquitaAssistant Secretary

Marcos CampagnoneChief of Staff

Sao Paulo Company of Metropolitan Planning SA - Emplasa

Renato ViégasChief Executive Officer

Luiz José PedrettiDirector Vice-President

Rovena NegreirosPlanning Director

Diana MottaProject Management Director

Sideval AroniAdministrative and Financial Director

Santos Metropolitan Agency - Agem

Marcos Aurélio AdegasExecutive Director

Campinas Metropolitan Agency - Agemcamp

Cristina CarraraExecutive Director