Brazilian O˜cial Guide

Brazilian O cial Guide on Investment Opportunities

Brazilian Official Guide On Investment Opportunities

Foreword

Brazil is focusing on a new cycle of sustainable growth, based on an extensive adjustment process and the adoption of measures to improve competitiveness and productivity. The launching of the fifth edition of the Brazilian Official Guide on Investment Opportunities is aimed to support this new cycle of growth by identifying investment opportunities across the country. The guide presents trustworthy, systematized and high level information to both foreign and domestic investors about specific projects. It provides direct contact information for each project, which fosters transparent relations between public and private entities

Brazil offers a safe and outstanding investment environment, full of business opportunities. In the past years, the country?s demand for infrastructure services has increased significantly. The Federal government is promoting the modernization of its infrastructure with concessions, private financing and the participation of banks and investment funds. The expansion and improvement of infrastructure services will increase the competitiveness of the economy. It will also reduce logistics costs for industries, expand exports and promote efficiency in the flow of agricultural production and address the growth of national and international logistics demand.

This new version of the Brazilian Official Guide on Investment Opportunities contains 149 projects in state and federal levels, totaling more than US$ 47 billion in projects to be carried out in the near future. There are opportunities in various sectors such as energy, highways, railways, ports, airports, telecommunications, generation and transmission of energy, urban mobility, construction, tourism and many others.

In the past years, Brazil has consolidated its position as a strong and attractive global player with a high degree of economic diversification. The country is currently the seventh largest economy in the world. With a privileged location in the east-central part of South America, it borders almost all other South American countries. This allows companies to easily access Latin American and African markets. A stable financial system, tradition of respect for contracts and huge domestic market make Brazil a safe place for investment. As an example, the country is currently the eighth biggest FDI destination in the world in 2015 according to UNCTAD.

The organization of this Guide was implemented by the Brazilian Investment Information Network (RENAI), part of the Ministry of Industry, Foreign Trade and Services (MDIC), the Ministry of Foreign Affairs (MRE), the Brazilian Service of Support for Micro and Small Enterprises (SEBRAE) and the Brazilian Trade and Investment Promotion Agency (APEX-Brasil).

The preparation of this Guide also had valuable support and guidance of several Federal partners as well as state and local Secretariats of all Brazilian regions. It is worth highlighting the participation of the Ministry of Finance, the Ministry of Mines and Energy, the Ministry of Planning, Development and Management, the Ministry of Tourism, the Ministry of Transportation, Ports and Civil Aviation, the National Land Transportation Agency, the Brazilian Electricity Regulatory Agency, the National Agency on Telecommunications and the National Council of State Secretaries of Development, Industry and Trade, among others.

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Index

Why Brazil?

7

Investor Support Institutions

13

RENAI | Brazilian Investment

Information Network

15

MRE | Ministry of External Relations

16

APEX-BRASIL | Brazilian Trade and

Investment Promotion Agency

17

Investment Opportunities at Federal Level

19

Generation and Transmission of Electrical Power 20

Telecommunications

31

Logistics and Transportation

34

? Highways

34

? Ports

37

? Airports

38

? Railways

42

? Financing

45

Transport and Logistics / Public Ports

46

Transport and Logistics / Highways

61

Transport and Logistics / Railways

69

Transport and Logistics / Airports

71

Export Processing Zones ? EPZ

74

Investment Opportunities at

Projects by Sector

189

State and Local Levels

77

Acre

80 Useful Links

202

Alagoas

82 Contact Info

203

Amapa

85

Amazonas

86

Bahia

88

Cear?

92

Esp?rito Santo

98

Federal District

104

Goi?s

106

Maranh?o

111

Mato Grosso

120

Mato Grosso do Sul

124

Minas Gerais

126

Para

127

Paraiba

131

Parana

135

Pernambuco

140

Piaui

149

Rio de Janeiro

152

Rio Grande do Norte

158

Rio Grande do Sul

161

Rondonia

162

Roraima

164

Santa Catarina

166

Sao Paulo

168

Sergipe

181

Tocantins

183

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Why Brazil?

In the past years, Brazil has consolidated its position as a strong and attractive global player with a high degree of economic diversification and is currently the seventh largest economy in the world. The country is a vigorous democracy, with free multiparty elections and strong institutions.

The economic development of the past years resulted in an expanded mass consumer market and increased social equality, an environment of institutional stability and increased social cohesion. Nearly 40 million Brazilians experienced significant improvements in their life conditions. In addition, Brazil has a large and fast growing consumer market, comprising 205 million people (IBGE).

Its democratic government, stable financial system and huge domestic market make Brazil a safe place for investment and gives it the strength to weather international crises. The increase of purchasing power and the investment opportunities in sectors like oil and natural gas, generation and transmission of electrical power, real estate and agribusiness places Brazil as an attractive choice on investment. The country is currently the sixth biggest FDI recipient in the world (UNCTAD).

It has a privileged location in the east-central part of South America, where it borders almost all other South American countries, allowing companies to easily access Latin American and African markets.

Modern, efficient and competitive, the Brazilian agribusiness sector is a prosperous, safe and profitable activity. The strength of Brazilian agribusiness is a result of scientific and technological development in modernizing farming and expanding the industry of agricultural machinery and equipment. The science and technology agenda encourages research in areas that are strategic for economic development, such as energy, aviation and agribusiness, as well as, IT and biotechnology.

Some of the Country's main competitive advantages are:

?? Leading regional economy ?? Solid investment framework ?? Huge domestic market ?? Global player ?? Innovative hotbed ?? Major infrastructure projects ?? Energy and Agricultural powerhouse ?? Gateway to Latin America ?? Biggest and most diversified science, technology and innovation system of Latin America ?? One of the largest producers and exporters of agricultural products ?? Competitive differential in the sector of aircraft building ?? Competitive differential in the sector of oil exploration in depth water and large offshore oil fields.

1 Source: Brazilian Institute of Geography and Statistics -IBGE.

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The country is also actively working to face the challenges imposed by shocks that affected its economy in recent years, such as monitored prices, hydropower resources constraints, exchange rate, among others. The Brazilian economy is going through an extensive adjustment process, aiming to create the conditions for a new cycle of sustainable growth, while seeking to ensure the social achievements of recent years, with sharp reduction of poverty and inequality, factors of great importance to promote competitiveness gains. Fiscal adjustment and fiscal reform will be the cornerstones of the current macroeconomic realignment, ensuring predictability and sustainability of the public sector accounts and debt dynamics, improving spending effectiveness and improving confidence conditions both in the investor and consumer side. Additionally, changes in pension laws are to be addressed in the short- to medium-run. Brazil is also working to improve its competitiveness and productivity, adopting measures to improve business conditions. The external sector of the Brazilian economy has enjoyed a comfortable position for several years, and the current adjustment improved even more its sustainability. The accumulation of a robust cushion of international reserves allows companies and investors to cope with the external volatility with confidence. On top of that, the current adjustment of the Real currency value triggered the trade balance recovery and made Brazilian assets financially attractive when measured in US dollars. In 2015 there was a reduction of more than 40% in the current account deficit, while FDI remained robust, allowing it to finance the whole current account deficit.

Macroeconomic outlook

The macroeconomic environment of last year proved to be challenging. The subdued economic growth imposed macroeconomic policy actions to absorb several shocks, in order to sustain investment and employment. Between July of 2014 and January of 2016, the Real currency recorded a depreciation of around 82% compared to the US dollar and of around 38% considering the real effective exchange rate. The new exchange rate level makes Brazilian assets offers an excellent opportunity for investment, even more evident considering the strength of the Brazilian economy structure. As the macroeconomic adjustment takes hold, it is expected that the assets will become relatively more expensive than at the present time. The adjustment in Brazilian external accounts has already shown a significant progression, and its effects should also deepen in the coming months. The external sector of the Brazilian economy has enjoyed a comfortable position for several years. The Central Bank currently has over US$ 369 billion in international reserves, which can be used to address any turbulence in the financial markets.

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International Reserves (US$ billion)

352 373 359 364 369 289 239 180 194

86 33 36 38 49 53 54

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: Brazilian Central Bank (BCB).

In 2015, Brazilian foreign trade registered US$ 362.6 billion, above the average of the last two decades. Despite the effect of fall of exports prices on the value of Brazilian exports (-21.6%), the exports volume rose 8.3%. The trade surplus in 2015 was US$ 19.7 billion, the highest since 2011, and one of the main factors to explain the sharp decline of the current account deficit, from 4.3% of GDP in 2014 to 3.3% in 2015.

Trade Balance (US$ Billion)

50

45 46

40 40

34

30

30

25

25 25

20

20 19

20

13

10

3

0

-10

-3

-6

-7

-1 -7

-1

2 -4

Source: Brazilian Central Bank (BCB).

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Brazil is currently one of the most attractive countries for foreign investors. It has received US$ 75 billion in foreign direct investment in 2015, and was the sixth biggest FDI recipient in the world in 2014 according to UNCTAD's last data. It offers a safe and outstanding investment environment, full of business opportunities. Foreign investors have security and legal permission to send profits to their home countries, and foreign capital is subject to the same legislation applied to domestic investments.

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