urban age city transformations conference · investment grade –moody’s (baa2) and fitch (bbb)...
TRANSCRIPT
URBAN AGE
CITY TRANSFORMATIONS CONFERENCE
October 2013
Eduarda la Rocque
Institute Pereira Passos; City of Rio de Janeiro, 2009–2012
Extracting value from economic growth: the Rio perspective
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Brazil
R I O D E J A N E I R O C I T Y H A L L | P E R E I R A P A S S O S I N S T I T U T E
and Rio de Janeiro
BRAZIL AND RIO DE JANEIRO
• Population: 193 Mn
(5th largest)
• GDP: US$ 2.22 Tn
(2012)
(6th economy in the
world – expected to be
5th by 2016)
• GDP per capita
US$ 12,100 (2012)
• Growing Middle
Class – now represents
53% of population
• Investment Grade as
of 2008
• Population: 16,3 Mn (2013e)
• GDP: US$ 177 Bn (2009)
• GDP per capita: US$ 11.190 (2009)
• GDP per capita (2010)*: US$ 14.458
• Investment Grade as of March 2010
1st state in Brazil
• Expected investments of US $384 Bn
between 2011 – 2014
* 2009 figures adjusted by country’s nominal
GDP growth rate
City of Rio de Janeiro
• Population: 6.42 Mn
(41% between 15 and 39 years) (2010)
• 2nd largest city in Brazil and 3rd in Latam
• GDP: US$ 88 Bn (2010)
• GDP per capita: US$ 14.000 (2010)
• 49% of State’s economy
85% service related
• Education HDI: 0.933 (Comparable to Israel and Portugal)
• Investment Grade as of December 2010, upgraded in
December 2011
State of Rio de Janeiro
RIO DE JANEIRO
Brazil
BRAZIL
R I O D E J A N E I R O C I T Y H A L L | P E R E I R A P A S S O S I N S T I T U T E
ECONOMIC INDICATORS
P R E F E I T U R A D A C I D A D E D O R I O D E J A N E I R O | I N S T I T U T O P E R E I R A P A S S O S
The City has strong economic indicators, being responsible for both 49% of the State’s GDP
(USD 177 bi) and ¼ of the FDI in the country
¹Purchasing Power Parity ; Sources: IBGE,World Bank , PME, CAGED, LRF Research
Rio vs. BRICs (2010 Per Capita GDP USD ppp¹)
19,840
Russia
19,073
City of Rio
11,127
Brazil
7,536
China
3,586
India
RIO MOMENTUM
P R E F E I T U R A D A C I D A D E D O R I O D E J A N E I R O | I N S T I T U T O P E R E I R A P A S S O S
Global Events
2010 2011 2012 2013 2014 2015 2016
© Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investments
CITY OF RIO - ACHIEVEMENTS TO DATE
P R E F E I T U R A D A C I D A D E D O R I O D E J A N E I R O | I N S T I T U T O P E R E I R A P A S S O S
• Project Management Office
• Implementation of a performance-base model >MERITOCRACY
Strategic Planning >Thinking Rio in 2020
www.rio.rj.gov.br
• Improving Business Environment
•Comprehensive program to reduce bureaucracy
• Formalization of business and attraction of investors
• New Investment Agency: www.rio-negocios.com
CITY OF RIO - ACHIEVEMENTS TO DATE
P R E F E I T U R A D A C I D A D E D O R I O D E J A N E I R O | I N S T I T U T O P E R E I R A P A S S O S
* Fiscal Transparency Report available at http://www.rio.rj.gov.br/web/smf
� INVESTMENT GRADE – MOODY’S (BAA2) AND FITCH (BBB)
Only municipality with the same rating as Brazil’s
� FISCAL RESPONSIBILITY AND TRANSPARENCY (*)
Increase in Total Revenues
• US$ 5.8 Bn in 2009 to US$ 9.2 Bn in 2012 (58% increase, CAGR 16,7%)
• Improvement in Collection Systems (“Nota Carioca” Program)
US$ 1 Bn World Bank Loan
• Estimated gains of US$ 1.25 Bn in a total debt of US$ 5Bn
• Expanding Rio de Janeiro’s investment capacity: US$ 186 Mn in 2009 budget to
US$ 1,5 Bn in 2011
New Focus: Sustainability
• Fiscal, Economic, Social and Environment
Fiscal Adjustment
EXPANDING INVESTMENT CAPACITY OF RIO
P R E F E I T U R A D A C I D A D E D O R I O D E J A N E I R O | I N S T I T U T O P E R E I R A P A S S O S
20122009
Fiscal Adjustment
Staff
58%
Debt Interest
6%
Other Current
Expenses
28%
Investments
4%
Debt Repayment
4%
Staff
46%
Debt Interest
2%
Other Current
Expenses
35%
Investments
16%
Debt
Repayment
1%
INVESTMENT CAPACITY OF RIO – 2005/2012
P R E F E I T U R A D A C I D A D E D O R I O D E J A N E I R O | I N S T I T U T O P E R E I R A P A S S O S
In US$ Millions
Source: City Hall
2005 259.2 3,637.67 7.1%
2006 317.49 3,875.35 8.2%
2007 405.95 4,486.98 9.0%
2008 392.23 5,186.51 7.6%
2009 186.37 5,009.30 3.7%
2010 725.63 6,640.93 10.9%
2011 1,556.84 8,708.37 17.9%
YEARINVESTMENTS
[A]
TOTAL
EXPENDITURES
[B]
%
[A]/[B]
2012 1,545.12 9,697.67 15.9%
Fiscal Adjustment
50% OF BRAZILIAN STOCK MARKET CAP IS
HEADQUARTERED IN RIO
P R E F E I T U R A D A C I D A D E D O R I O D E J A N E I R O | I N S T I T U T O P E R E I R A P A S S O S
PRIVATE & PUBLIC INVESTMENT IN THE STATE
(THROUGH 2020)
P R E F E I T U R A D A C I D A D E D O R I O D E J A N E I R O | I N S T I T U T O P E R E I R A P A S S O S
STRATEGIC SECTORS
P R E F E I T U R A D A C I D A D E D O R I O D E J A N E I R O | I N S T I T U T O P E R E I R A P A S S O S
ENERGY
HIGH TECH
CREATIVE INDUSTRY
HOSPITALITY
FINANCE TELECOM
50% OF BRAZILIAN STOCK MARKET CAP IS
HEADQUARTERED IN RIO
P R E F E I T U R A D A C I D A D E D O R I O D E J A N E I R O | I N S T I T U T O P E R E I R A P A S S O S
www.cidadeolimpica.com
• Revitalization of the Sea Port Area
• 4 Olympic areas re-qualified, with full accessibility
• Construction of Parque Olímpico in Barra
• Construction of an Olympic Training Centre (400 athletes/day)
• At least 40% growth in hotels availability
INFRASTRUCTURE & URBANIZATION
• Morar Carioca: all the favelas re-urbanized until 2020 (1,4 million people)
• English teaching in the 1064 municipal schools (530k students)
• Practice of sports spread in the whole public schools system
SOCIAL AND ECONOMIC DEVELOPMENT
• Implemented new intermodal system linking in the express ways (BRTS), trains, ferry and subway (150Km)
• Increase of high capacity transportation from 18% to 63%
• Duplication of the City bike tracks to 300km
TRANSPORTATION
• Recovery of the lagoon systems of Barra and Jacarepaguá
• Reforestation of more than 1.300 ha
• More than 700 thousand people with acessto sewage (West Zone)
• Reduction of 16% on gas emissions by 2016
• Full Operation of a new Waste Facility in Seropédica
ENVIRONMENT
Sustainability and Legacy
OLYMPIC GAMES
P R E F E I T U R A D A C I D A D E D O R I O D E J A N E I R O | I N S T I T U T O P E R E I R A P A S S O S
• A great opportunity to consolidate Rio´s turnaround
• Focus on investments that generate a permanent legacy for the citizens
• “The Olympic Games should serve the city. More than organizing the event
itself, we want to make Rio a better place for our citizens and guests through
profound transformations in transportation, urban infrastructure, environment
and social development”
• Olympic venues are being financed mainly through partnerships with private
investments
RIO’S PERSPECTIVES - FINANCIAL MARKETS
P R E F E I T U R A D A C I D A D E D O R I O D E J A N E I R O | I N S T I T U T O P E R E I R A P A S S O S
”
Public-Private Partnership – “Grupo Financeiro Carioca”
•Rio Investors Day (reintroducing Rio in the global financial calendar)
• Attracting new players: PIMCO and Direct Edge
• Headquarters of Major Independent Asset Managers, Brokerage and Private
Equity Firms
Financial Center at the Seaport Area
• Offices, Hotels, Convention Centers, Universities, Back-office and Asset
Management Firms, Insurers and Reinsurers
SECURITY POLICY
P R E F E I T U R A D A C I D A D E D O R I O D E J A N E I R O | I N S T I T U T O P E R E I R A P A S S O S
Security problem is being tackled by the State Government
• Partnership between Federal, State and Municipal Government is helping
to build a new city with different perspectives and alternatives
UPP (Peacemaker Police Units) initiatives - www.upprj.com
• Local communities free of drug dealers and “milícias”
• 34 UPP’s already operative: Santa Marta, Cidade de Deus, Jardim Batam,
Chapéu Mangueira e Babilônia, Cantagalo e Pavão-Pavãozinho, Morro dos
Cabritos e Tabajaras, Providência, Borel, Formiga, Andaraí, Turano,
Salgueiro, Macacos, Complexo do Catumbi/Santa Teresa, São Carlos,
Magueira/Tuiuti, Rocinha…
• Police occupation leads to businesses formalization and economic
development
• A total of 45 should be implemented until 2014
SUSTAINABILITY
P R E F E I T U R A D A C I D A D E D O R I O D E J A N E I R O | I N S T I T U T O P E R E I R A P A S S O S
� Financial Markets as a promoting agent of Economic, Social and
Environmental sustainability
� New Global Economy requires alignment:
• between public power levels
• between public and private sectors (PPPs)
• between public and and third sector (PPP3)
� It´s time to bring together finance modelling and market economy to
the public and third sector in order to achieve economically, socially
and environmentally sustainable development
•BVRio
• Pacification UPP Social Civil Society
RIO’S PERSPECTIVES - FINANCIAL MARKETS
P R E F E I T U R A D A C I D A D E D O R I O D E J A N E I R O | I N S T I T U T O P E R E I R A P A S S O S
BVRio (Bolsa Verde do Rio –
Green Assets Exchange)
A non profit organization in
line with the goal of economic
development with
environmental sustainability Enviromental Assets Operations
Guanabara Effuents (MEG)
Carbon Emissions
EnviromentalCompensations
Waste RecoveryAnd Recycling
Reflorestation
Others
Registry• of assets
• of trades
Trading Platform
EXECUTIVE BOARD
C E O
Objectives:
• Foster market mechanisms to ease
implementing environmental
regulatory requirements
• Contribute to the development of
the Green Economy in Rio de
Janeiro and Brazil
• Place Rio de Janeiro at the
forefront of the Environmental
Economics
BV Rio - Board of Directors
Board of DirectorsComposed of four Chambers – up to 4 members per chamber
BusinessChamber
Third Sector and Academy
Chamber
CitizensChamber
GovernmentChamber
Pedro Moura Costa
Sergio Besserman
Thank You!
Eduarda Cunha de La Rocque
Instituto Pereira Passos
Tel: +55 21 29766453