Apresentação do ministro Guido Mantega no Seminário Empresarial Oportunidades em Infraestrutura no Brasil

September | 2013 Ministry of
Finance
B R A Z I L I A N G O V E R N M E N T
Brazil’seconomic outlook and
investment opportunities
infrastructure

3
Ministry
of Finance
Foreword
Economic Outlook
Economic Development and Demand for Infrastructure
Capital Market Instruments
Highways
Railways
Ports
Airports
Oil and Gas
Electricity
Appendix – Main types of business organizations in Brazil
Useful Links
Glossary
Summary
5
7
33
45
53
65
79
83
93
101
121
126
128

5
Ministry
of Finance
5
Foreword
Foreword
Brazil currently presents an enormous opportunity for investment in infrastructure.
The Brazilian economy has changed substantially over the last ten years. From 2003 to 2012, real GDP increased by
41 percent, real total wages by 65 percent and domestic retail sales by 119 percent. It was a period of consolidation
for the domestic market, based on income growth and social inclusion. The country is currently among the biggest
markets in the world. In the last decade, investments grew by 71 percent, above GDP growth rates, but they should
increase even further in order to become the new engine of economic development.
Eonomic growth has brought about challenges, particularly for the long term. Above all, Brazil needs to build up
and modernize its infrastructure.That is the reason why President Dilma Rousseff launched the Energy and Logistics
Investment Program in 2012, consisting of concessions for highways (7,500 km), railways (10,000 km), airports (Rio
de Janeiro and Belo Horizonte) and ports.The implementation of the Program will not only reduce costs and improve
competitiveness for all industries, but also keep Brazil on the sustainable growth path that has been a characteristic
of the Brazilian economy over the last decade.
In oil and gas, the 11th Bidding Round in May 2013 was very successful, and both the 12th Bidding Round and the
1st Round of the Pre-Salt Layer are scheduled for the end of 2013. In electricity, many auctions are being carried out
until2017forthegenerationof33,000MW(fromhydropower,windpowerandothersources)andtheinstallationof
21,000 km of transmission lines.
As far as short term perspectives are concerned, Brazil resumed economic growth in 2013, after a small period of
deceleration due to the deepening of the international crisis. In the second quarter, GDP grew 6.0 percent (quarter-
over-quarter, seasonally adjusted annual rate), one of the highest rates among G20 countries. The sustainability of
the economic recovery is supported by high levels of investment, which increased 9.0 percent in the second quarter

6
Ministry
of Finance
6
Foreword
of 2013 when compared to the second quarter of 2012. Furthermore, manufacturing shows signs of improvement,
after two years of difficulties brought about by the international crisis.
The outlook for the world economy, however, remains tenuous. Although there are signs of economic recovery in
developed countries, with demand picking up in some advanced countries, the turmoil created by the expectation
of tapering in U.S. monetary stimulus severely affected some emerging economies. World trade growth is still
disappointing, posing challenges for economies heavily dependent on foreign markets.
The Brazilian economy is prepared to face the challenges posed by the international economy. In addition to its
considerable size – 200 million people, mostly belonging to the middle social classes –, the domestic market has
beengrowing atanannualrateofover6percent inthelastfiveyears.Brazil’sbanksandfinancialmarketsareamong
the soundest and most dynamic in the world. International reserves of around US$ 370 billion vis-à-vis short term
foreigndebtofUS$40billiongivemonetaryauthoritiesthecapacitytointerveneifnecessary.In2012, foreigndirect
investmentinflowstoBrazilwereUS$65.3billion,thefourthlargestintheworld.Inthefirsthalfof2013,FDIinflows
amounted to US$ 30 billion.
After a decade of consolidation of the domestic market, Brazil is ready for another decade of growth, now supported
by investments, particularly in infrastructure. Private businesses and investors, both domestic and foreign, have the
opportunity to take part in this process.

8
Ministry
of Finance
8
EconomicOutlook
GDP, QoQ seasonally adjusted annual rate, in % change, second quarter 2013
The world economy in the second quarter of 2013
Source:InternationalMonetaryFund
(IMF)andBloomberg
Producedby:MinistryofFinance
Above 3%
Below or equal to 3%
Brazil
Chile
Russia
India
China
Indonesia
5.6
South
Korea4.5
Mexico
3.8
Canadá
Japan
United
kingdom
Italy
-1.2
-1.0
2.9
2.3
France
-1.3
-2.9
1.9
Germany
2.9
South Africa
Australia
USA
Canada
1.7
2.5
2.0
6.0
7.0
8.5
Turkey
2.4
Euro
area
1.2
3.0

9
Ministry
of Finance
9
EconomicOutlook
Purchasing Managers Index (PMI), manufacturing, in points
Slow recovery of advanced economies and China
Source:ISM(forUSA)andHSBC/Markit
40
42
44
46
48
50
52
54
56
58
60
Sep
2013
Jan
2013
Jul2012
Jan
2012
Jul2011
Jan
2011
Jul2010
Jan
2010
Aug
2009
USA
Euro Zone
China
51.2
51.1
55.7

10
Ministry
of Finance
10
EconomicOutlook
10-Year U.S.Treasury yields, in % per annum
Uncertainty about the tapering of the FED monetary stimulus may trigger exchange-rate and financial volatility in
emerging countries.
United States recovery: a double-edged sword
Source:Bloomberg
2.69
1.0
1.5
2.0
2.5
3.0
3.5
4.0
18
Sep
2013
Jan
2013
Jan
2012
Jan
2011

11
Ministry
of Finance
11
EconomicOutlook
Nominal exchange rate, in U.S. dollar/national currency, index (January 2007 = 100)
The long term appreciation of the Brazilian real has been partially reversed in 2013
Source:Bloomberg
60
90
120
150
17
Sep
2013
Jan
2013
Jan
2012
Jan
2011
Jan
2010
Jan
2009
Jan
2008
Jan
2007
94.1
69.7
70.8
72.9
85.8
Brazil
South
Africa
Mexico
India
Turkey

12
Ministry
of Finance
12
EconomicOutlook
In US$ million
Volatility did not affect the capital account of the balance of payments
*CentralBankofBrazilestimate
Source:CentralBankofBrazil
2012 2013 2013
July Jan-July July Jan-July Estimate*
Current Account -3,746 -28,990 -9,018 -52,472 -75,000
Financial Account 8,307 53,580 9,315 58,902 83,000
Direct Investment (net) 7,509 42,240 4,019 41,259
FDI 8,440 38,169 5,212 35,239 65,000
Portfolio Investment 1,343 3,707 3,898 17,981
Other Investments -588 7,537 1,418 -437

13
Ministry
of Finance
13
EconomicOutlook
Foreign direct investment in G-20 countries, 2012, in US$ billion
Confidence: high inflows of foreign direct investment
Source:UNCTAD
0
50
100
150
200
Japan
South
Africa
Germ
any
Italy
Korea
Saudi
Arabia
Turkey
M
exico
Indonesia
France
India
Canada
Russian
Federation
Australia
United
Kingdom
Brazil
China
United
States167.6
121.1
65.3
62.4
57.0
51.4
45.4
25.5
25.1
19.9
12.7
12.4
12.2
9.9
9.6
6.6
4.6
1.7

14
Ministry
of Finance
14
EconomicOutlook
Public sector net debt and General government gross debt, in % of GDP
Public sector net debt drops consistently and stable gross debt
*July2013
30
35
40
45
50
55
60
65
2013*
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
60.4
54.8
50.6
48.4
47.3
45.5
38.5
42.1
39.2
36.4
35.2
34.1
Public Sector
Net Debt
General
Government
Gross Debt
56.4
58.0 57.4
60.9
54.2
58.7 59.4
53.4

15
Ministry
of Finance
15
EconomicOutlook
International reserves, in US$ billion (July 2013)
Brazil’s international reserves in a comfortable situation
*June2013
**May2013
***January2013
Source:Bloomberg
0
300
600
900
1,200
3,500
Italy
**
South
Africa
Australia
**
France
**
United
Kingdom
*
Germ
any
**
Indonesia
Turkey
Canada
M
exico
India
Korea
Brazil
Russia
***
SaudiArabia
**
Japan
China
*
252
168
106
104
93
72
62
56
46
39
36
480
3,497
1,188
685
374
330

16
Ministry
of Finance
16
EconomicOutlook
Reserves-to-imports of goods ratio, in %, July 2013
Brazil’s international reserves 58% above annual imports
*August2013
**June2013
Source:Bloomberg
0
50
100
150
200
Turkey
SouthAfrica
M
exico
Indonesia
India
Russia
**
Brazil*
China
**185%
158%
150%
56%
49%
44%
43%
42%

17
Ministry
of Finance
17
EconomicOutlook
Reserves-to-short term external debt ratio, in %, March 2013
Brazil’s international reserves much above external debt levels
Source:BloombergandInternational
MonetaryFund(IMF)
0
200
400
600
800
1,000
Turkey
Argentina
South
Africa
M
exico
Indonesia
India
China
Russia
Brazil
952% 572% 462% 303% 232% 229% 167% 108% 92%

18
Ministry
of Finance
18
EconomicOutlook
International reserves, in US$ billion
Brazil’s international reserves have not been changed even under international uncertainty
300
325
350
375
400
12
Sep
2013
Aug
2013
Jul2013
Jun
2013
M
ay
2013
Apr2013
M
ar2013
Feb
2013
Jan
2013
US$ 373.6 bn

19
Ministry
of Finance
19
EconomicOutlook
In billions of U.S. dollars and millions of contracts
The role of derivatives in Brazil: second largest market for interest-rate options and futures
*ForBrazil,indicatorsonlyinclude
futuresandoptionsoperations
** InChina,currencyderivativesarenot
traded(FXrestriction)
***TurkdexAnnualMarket
Statistics(AnnualFactBook2012)
Source:WorldFederationofExchanges
0
5,000
10,000
15,000
20,000
25,000
30,000
Turkey***
South
Africa
Russia
M
exico
Brazil*
25,212
241 58 38 0
Financial volume
traded in 2012
(US$ billion)
Number of
contracts traded
in 2012 (millions)
Brazil / BVMF* 25,212 501
Mexico /Mexder 241 31
Russia / Moscow Ex 58 21
South Africa / JSE 38 3
Singapore / SGX 0 1
India / NSE-BSE-MCX 0 0
Malaysia / Bursa Malaysia 0 0
China** 0 0
Turkey*** 0 0
US$ Billion

20
Ministry
of Finance
20
EconomicOutlook
In billions of U.S. dollars and millions of contracts
Sixth largest market for currency options and futures
*ForBrazil,indicatorsonlyinclude
futuresandoptionsoperations
** InChina,currencyderivatives
arenottraded(FXrestriction)
***TurkdexAnnualMarket
Statistics(AnnualFactBook2012)
Source:WorldFederationofExchanges
/FuturesIndustryAssociationMagazine
March2013
0
1,000
2,000
3,000
4,000
5,000
Turkey
***
South
Africa
M
éxico
Russia
India
Brazil*4,525
821
437
100
15
13
US$ BillionCurrency Options and Futures
Country
Financial volume
traded in 2012
(US$ billion)
Number of contracts (in millions)
traded in the same basis
(if contracts were all of USD 1,000)
Brazil / BVMF* 4,525 4,727
India / NSE-BSE-MCX 821 868
Russia / Moscow Ex 437 413
South Africa / JSE 15 17
Mexico /Mexder 100 98
Turkey /Turkdex *** 13 1
Malaysia / Bursa
Malaysia
0 -
China ** 0 -
Singapore / SGX 0 -

21
Ministry
of Finance
21
EconomicOutlook
Foreign exchange derivative transactions over spot transactions, in %
In Brazil, the large market for foreign exchange derivatives
stimulates companies to use currency hedging
Source:BankforInternational
Settlements(BIS)
0
50
100
150
200
250
300
350
400
450
Japan
Russia
Australia
Euro
M
exico
Canada
Global
United
States
United
Kingdom
South
Africa
Korea
India
China
Turkey
Brazil419%
347%
252%
247%
231%
207%
178%
175%
161%
161%
138%
137%
136%
134%
101%

22
Ministry
of Finance
22
EconomicOutlook
Current account, in % of GDP, second quarter of 2013
G20 emerging markets external sector
*Firstquarter2013
**Excludingtheoilaccount,the
Braziliancurrentaccountdeficitwould
be1.9%ofGDP.Therewasatemporary
delayintheregisterofthe2012
importsandtherewereseveralstops
formaintenanceinPetrobrasplatforms.
Additionally,delaysinthestartofnew
producingsystemsinthelastfewyears
andexistingproblemsinthepost-salt
systemsresultedinaslowdowninthe
domesticextractionofoilandgassince
2010.Allthesefactorsthatinterfered
intheBraziliantradebalancewillstart
toimprovesignificantlyinthesecond
halfof2013.Tennewplatformswillbe
startingoperationsin2013/2014,and
severalotherswillstartoperationsin
thefollowingyears,doublingproduction
until2020,accordingtoEIAestimate
Source:Bloomberg
-7
-6
-5
-4
-3
-2
-1
0
1
2
3
4
-5.9
Turkey*
South
Africa*
India*
Indonesia
Brazil
M
exico
China
Russia*
3.0 2.4
-1.3
-3.2
-3.3
-5.1 -5.8 -5.9
-1.9**

23
Ministry
of Finance
23
EconomicOutlook
Trade balance, total and ex-oil, in US$ billion
Oil and gasoline accounted for a large part of the decrease in trade surplus
*Ona12-monthbasisuptoJuly2013
Source:MinistryofDevelopment,
IndustryandTrade(MDIC)
0
10
20
30
40
2013*
2012
2011
2010
2009
12.5 19.5 26.2 26.0 19.325.3 20.2 29.8 19.4
4.5
Total balance
ex-oil and other
oil products
Total
balance

24
Ministry
of Finance
24
EconomicOutlook
Gross fixed capital formation, seasonally adjusted, in % QoQ
Despite difficulties, investments are recovering in Brazil
Source:BrazilianInstituteofGeography
andStatistics(IBGE)
-2
-1
0
1
2
3
4
5
2Q 20131Q 20134Q 20123Q 2012
1.5 4.7 3.6
-1.4

25
Ministry
of Finance
25
EconomicOutlook
Broad Consumer Price Index (IPCA), in %YoY
Inflation within the target range since 2004
*Averageforecastfor2013,according
totheCentralBankofBrazilmarket
researchonSeptember6,2013
andStatistics(IBGE)andCentralBank
ofBrazil
2013*
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
Upper
Bound
Lower
Bound
Target
core
IPCA
5.85.86.55.94.35.94.55.77.69.312.57.76.08.9 3.1

26
Ministry
of Finance
26
EconomicOutlook
Consumer price index, in %YoY, August 2013
G20 emerging markets inflation
*July2013
**June2013
Source:Bloomberg
0
2
4
6
8
10
12
India
**
Indonesia
Turkey
Russia
South
Africa
*
Brazil
M
exico
China2.5
3.5
6.1
6.4
6.5
8.2
8.8
10.7

27
Ministry
of Finance
27
EconomicOutlook
In %, latest available data
Sound financial system
(IMF)-FiscalSoundnessIndicators
Producedby:MinistryofFinanceSpain
Australia
India
Italy
Russia
Japan
South Korea
France
USA
United Kingdom
South Africa
Canada
Mexico
Brazil
Turkey
Germany
Italy
Spain
South Africa
Japan
France
United Kingdom
Australia
USA
India
Russia
Canada
Turkey
South Korea
Chile
Argentina
Mexico
Brazil
India
South Africa
United Kingdom
Australia
Mexico
Japan
Canada
Turkey
USA
Italy
Russia
South Korea
Germany
Brazil
Basel Index (Capital Adequacy)
(Provisions minus
Delinquencies)/Capital
Net Assets/
Short-term Liabilities
17.9
17.4
17.0
16.3
16.1
15.7
15.7
14.4
14.3
14.3
14.2
13.4
13.3
13.1
11.8
11.4
-3.1
-3.1
-5.9
-9.9
-12.1
-14.7
-15.5
-16.1
-19.4
-21.4
-23.6
-27.6
-73.7
10.0
9.0
2.8
0.6
183.1
140.8
111.3
87.6
80.1
77.4
76.4
56.3
51.3
47.3
43.5
38.0
33.0
27.0

28
Ministry
of Finance
28
EconomicOutlook
Real estate loans, annual growth rate, in %
Real estate loans have still huge opportunities of expansion in Brazil
0
10
20
30
40
50
60
70
Jul2013
Jan
2013
Jul2012
Jan
2012
Jul2011
Jan
2011
Jul2010
Jan
2010
Jul2009
Jan
2009
Jul2008
M
ar2008
34.0
Despite their growth, in July 2013 real
estate loans represented only 7.7% of
Brazil’s GDP, a much lower rate than in
developed countries and most
emerging economies

29
Ministry
of Finance
29
EconomicOutlook
Budget balance, in % of GDP
Brazil presents sound fiscal accounts
*IMFestimates
(IMF)-FiscalMonitorand
CentralBankofBrazil
Primary Results Nominal Result
United States
Asia
Euro Zone
Latin America
Brazil
2006-2008
2010-2013*
United States
Asia
Euro Zone
Latin America
Brazil 2.6
1.3
-1.5
-1.5
-7.1
3.3
3.0
1.2
0.0
-1.9
-2.5
-2.3
-4.2
-3.0
-9.0
-2.8
-1.1
-1.4
-1.6
-3.8
2006-2008
2010-2013*

30
Ministry
of Finance
30
EconomicOutlook
10-year Brazilian Global bonds* and U.S.Treasury yields, in % per annum
Confidence: low spreads for sovereign bonds
*Yieldsatissuedate
Source:NationalTreasurySecretariat
(STN)
0.0
1.4
2.8
4.2
5.6
7.0
9
M
ay
2013
5
Sep
2012
3
Jan
2012
7
Jul2011
27
Jul2010
15
Apr2010
15
Dez2009
7
M
ay
2009
6
Jan
2009
U.S. Treasuries
Brazilian
sovereign bonds
6.1
5.8
4.8 5.0
4.5 4.2
3.4
2.7 2.82.4
3.3
3.6
3.9
3.0 3.1
1.9
1.6 1.8

31
Ministry
of Finance
31
EconomicOutlook
Non-resident share in federal public debt, in % of total DFPD*
Increasing number of non-resident investors in Brazilian public debt
*DomesticFederalPublicDebt
Source:NationalTreasurySecretariat
(STN)
0
2
4
6
8
10
12
14
16
18
1.8
2.0
2.1
2.7
4.5
4.7
4.9
5.2
5.0
5.1
5.3
5.5
5.9
6.2
6.3
6.4
7.6
7.7
7.5
6.7
6.8
7.2
7.1
6.9
6.6
6.4
6.5
6.7
6.6
6.9
7.8
8.4
8.4
8.8
9.7
9.8
10.2
9.9
10.0
10.6
10.6
11.2
11.5
11.5
11.3
11.4
11.8
11.4
11.4
11.3
11.5
11.1
11.6
11.8
11.3
11.4
11.4
11.3
11.9
11.9
12.1
12.3
12.3
12.2
13.2
13.3
13.4
13.8
13.9
13.7
14.4
14.3
14.8
14.6
14.4
14.5
15.5
Jul2013
M
ar2013
Nov
2012
Jul2012
M
ar2012
Nov
2011
Jul2011
M
ar2011
Nov
2010
Jul2010
M
ar2010
Nov
2009
Jul2009
M
ar2009
Nov
2008
Jul2008
M
ar2008
Nov
2007
Jul2007
M
ar2007
15.5

Economic Development
and Demand for
Infrastructure

34
Ministry
of Finance
EconomicDevelopmentand
DemandforInfrastructure
Broad retail sales, seasonally adjusted, in %YoY
Domestic market: dynamism of retail sales
*Ona12-monthbasisuptoJuly2013
andStatistics(IBGE)
0
3
6
9
12
15
2013*
2012
2011
2010
2009
2008
2007
2006
2005
200411.1
3.1
6.4
13.6
9.9
6.8
12.2
6.6
8.0
5.8

35
Ministry
of Finance
New formal jobs, in millions
Sustainable labor market ensures dynamic domestic demand
For2012and2013,updatesafterthe
officialreleasedateweretakeninto
consideration
*JanuarytoJuly2013
Source:MinistryofLaborand
Employment
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2013*
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
0.1 0.1 0.3 0.4 0.5 1.2 1.0 1.5 0.9 1.9 1.8 1.9 2.5 1.8 1.8 2.9 2.2 1.3 0.9
19.90 million jobs

36
Ministry
of Finance
Airline traffic, in millions of passengers
Increasing demand for infrastructure services: airline passengers
Source:NationalAgencyforCivil
Aviation(ANAC)
0
20
40
60
80
100
120
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
101.4
92.6
77.2
62.8
56.0
52.1
47.7
44.1
35.7
33.4
35.9
36.0
34.0
2002-2012: 182.3% growth

37
Ministry
of Finance
Brazilian trade flow (exports plus imports), in US$ billion
Growing external trade
*Ona12-monthbasis
uptoAugust2013
Source:MinistryofDevelopment,
IndustryandForeignTrade(MDIC)
0
100
200
300
400
500
2013*
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
199596.4
101.0
112.7
108.8
97.2
111.0
113.9
107.7
121.5
159.5
192.1
229.2
281.3
370.9
280.7
383.7
482.3
465.7
474.7
2002-2012: 332.4% growth

38
Ministry
of Finance
Total cargo handling in ports, in millions of tons
Significant growth in port trade volume
*Ona12-monthbasisuptoMarch2013
Source:NationalAgencyforWater
Transportation(ANTAQ)
500
550
600
650
700
750
800
850
900
950
2013*
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
570.8
620.7
649.4
692.8
754.7
768.3
732.9
833.9
885.6
904.0
902.9
2003-2012: 58.4% growth

39
Ministry
of Finance
In thousand vehicles per km per year, on highways under concession
Vehicular traffic
*Estimatebasedonmonthly
averageuptoAugust2013
Source:BrazilianAssociationof
HighwayConcessionaires(ABCR)
0
20
40
60
80
100
120
2013*
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
111
105
99
89
69
60
69
67
65
61
56
57
51
43
2002-2012: 86.6% growth

40
Ministry
of Finance
New vehicles (buses, trucks, light commercial vehicles and cars), in million of vehicles
Vehicle sales more than doubled in ten years
*Ona12-monthbasis
uptoAugust2013
Source:BrazilianAssociationof
AutomotiveVehicleManufacturers
(ANFAVEA)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2013*
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
4th
largest vehicle
market in the world
1.5
1.4
1.5
1.7
1.9
2.5
2.8
3.1
3.5
3.6
3.8
3.8
2002-2012: 153.5% growth

41
Ministry
of Finance
Revenue tonne kilometers (RTKs), in billions
Railroad volumes
Source:NationalTransportation
Agency (ANTT)
130
164
198
232
266
300
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002168
182
203
221
232
258
271
244
278
291
298
2002-2012: 77.4% growth

42
Ministry
of Finance
Brazilian grain harvest*, in millions of tons
Brazilian harvest in record figures
*Preliminarydata:subjecttochangeby
Conab/MAPA
**ConabestimatesinSeptember2013
Source:MinistryofAgriculture,
LivestockandFoodSupply(MAPA)
70
90
110
130
150
170
190
210
2012/2013**
2011/2012
2010/2011
2009/2010
2008/2009
2007/2008
2006/2007
2005/2006
2004/2005
2003/2004
2002/2003
2001/2002
2000/2001
100.3
96.8
123.2
119.1
114.7
122.5
131.8
144.1
135.1
149.3
162.8
166.2
187.1

43
Ministry
of Finance
Brazil in the global ranking, by production and exports quantities, 2011
Agricultural leadership
Source:FoodandAgriculture
Organisation(FAO)
Orange Juice
Tobacco
Chicken
Whitesugar
Corn
Beans
Soybean
Processed beef
Coffee 1 1
1 1
1 1
1
1
1
2
2
2
2 2
2
3 3
16
Producer Exporter

46
Ministry
of Finance
CapitalMarketInstruments
Howcannon-residentinvestorsnegotiatedebt securitiesandfundsinBrazil?
CMNResolution2,689ofyear2000,whichrulesoninvestmentsbynon-residentinvestorsin
thefinancialandcapitalmarketsofinvestment,providesallnecessaryinformation
Brazildoesnotimposetaxes
ontheinternationalremittanceofprofitsanddividends Producedby:MinistryofFinanceand
BrazilianDevelopmentBank(BNDES)
FinancialInstrumentsforInfrastructureInvestments
https://www3.bcb.gov.br/normativo/
detalharNormativo.do?method=deta
lharNormativo&N=100014927
• More Info:
CMNResolution2,689

47
Ministry
of Finance
Definition Benefitsfor
non-residentinvestors* Minimum Requirements
Investment Debentures and
Real Estate Receivables Certificates
• ZeroIncomeTaxRate(IR)
• ZeroTaxonFinancialOperations(IOF)
• Weightedaveragematurity:overfouryears.
• Return:CRIpaysinterestatafixedrateoratafloatingrate
peggedtoaninflationindexortheReferenceRate(TR).Totalor
partialuseofpost-fixedrateofinterestareforbidden.
• Norepurchase:bytheissuerorrelatedpartyinthefirsttwo
yearsafterissuanceandearlyliquidation,exceptincasestobe
regulatedbyBrazil’sNationalMonetaryCouncil(CMN).
• Requiredevidencedocuments: securityshouldbe
registeredwithclearinghousesdulyauthorizedbythe
CentralBankofBrazilortheBrazilianSecuritiesandExchange
Commission(CVM).
• Simplifiedprocedure:todemonstratethepurposeof
allocatingresourcesintothefuturepaymentorreimbursement
ofexpenses,costsorliabilitiesrelatedtoinvestmentprojects,
includingthoseaimedatR&D&I(research,developmentand
innovation).
• Noresalecommitment:undertakenbythebuyer.
• Yieldpaymentfrequency:ifany,itmustbeatleast180
daysapart.
• Debêntures de Investimento e Certificados de Recebíveis Imobiliários (CRI)
*Incaseofinvestmentsfromcountries
whicharenotsubjecttoa20%(orhigher)
incometaxrate(“taxhavens”),theabove
mentionedtaxbenefitsdonotapply,
unlessitisrelatedtoawealthfund
Producedby:MinistryofFinanceand

48
Ministry
of Finance
Definition Benefitsfornon-
-residentinvestors* Minimum Requirements
InvestmentFundin
CreditRights
• ZeroTaxonFinancial
Operations(IOF)
• Termofduration:minimumofsixyears.
• Nopayment,fullyorpartially:ofprincipaloftheFund’squotasinthefirsttwoyearsfromthe
closingdateofthepublicofferingofthequotadistributionthatconstitutetheinitialassetsofthe
Fund,exceptincasesoftheFund’searlyliquidationmentionedintheFund’sregulation.
• Noacquisitionofquotas:bythesellerorbytheissuerorbyanypartiesrelatedtothem,except
incaseofsubordinatedquotasforpurposesofamortizationandwithdrawal.
• Amortizationplanofquotas:includingthosefromincorporatedyields,ifany,mustbeatleast
180(onehundredandeighty)daysapart.
• Requiredevidencedocuments:quotasmustbeadmittedtotradingonanorganizedsecurities
marketorregisteredwitharegistrysystemdulyauthorizedbytheCentralBankofBrazilorthe
BrazilianSecuritiesandExchangeCommission(CVM)undertheirrespectivejurisdiction.
• Simplifiedprocedure:todemonstratethepurposeofallocatingresourcesintoatransactionof
investmentprojects,includingthoseaimedatR&D&I.
• Mandatorypresenceofthefollowing:intheassignmentagreement,regulationandprospec-
tus,ifany,inamannertobedeterminedbyCVM:
•Goaloftheprojectorthebeneficiaryprojects;
•Estimatedbeginningandendperiodsor,forongoingprojects,descriptionofthecurrentstage
andestimatedendperiod;
•Estimatedvolumeoffinancialresourcesrequiredtocarryouttheprojectornotinitialized
projectsorforthecompletionofongoingprojects;
•Estimatedpercentageoffundstoberaisedwiththesellingofthecreditrightscomparedto
thefinancialresourcerequirementsofthebeneficiaryprojects.
• Fund’sequity:consistsofatleast85%(eighty-five)percentofcreditrightsand,fortheremaining
portion,offederalgovernmentsecurities,repurchaseagreementsbackedbygovernmentbondsor
mutualfundquotasthatinvestinfederalgovernmentbonds.
• Fundos de Investimento em Direitos Creditórios (FIDC)
*Incaseofinvestmentsfromcountries
whicharenotsubjecttoa20%(or
higher)incometaxrate(“taxhavens”),
theabovementionedtaxbenefitsdonot
apply,unlessitisrelatedtoawealthfund

49
Ministry
of Finance
Definition Benefitsfornon-
-residentinvestors* Minimum Requirements
Infrastructure
Debentures
• ZeroTaxonFinancial
Operations(IOF)
• Issuance: must be between January 2011 and December 2015.
• Weighted average maturity: over four years.
• Return: Debentures pay interest at a fixed rate or at a floating rate pegged to an inflation index or the
Reference Rate (TR).Total or partial use of post-fixed rate of interest are forbidden.
• No repurchase: by the issuer or related party in the first two years after issuance and early liquidation,
except in cases to be regulated by Brazil’s National Monetary Council (CMN).
• Required evidence documents: security should be registered with clearing houses duly authorized
by the Central Bank of Brazil or the Brazilian Securities and Exchange Commission (CVM).
• Simplifiedprocedure:todemonstratethepurposeofallocatingresourcesintothefuturepaymentorreimburse-
mentofexpenses,costsorliabilitiesrelatedtoinvestmentprojects,includingthoseaimedatR&D&I.
• No resale commitment: undertaken by the buyer.
• Yield payment frequency: if any, it must be at least 180 days apart.
Projects Approval:
• Priority investment projects: to be implemented in the infrastructure area, or intensive economic
production in research, development, and innovation. Also, according to the Decree n. 7,603 of year 2011,
projects should have:
• Approval Ordinance: issued and approved by the Ministry responsible for that sector
• Focus on deployment, expansion, maintenance, recovery, adaptation or modernization processes in
the following sectors:
• Specific Purpose Companies (SPE): for management and implementation.
• Issuer: dealer or grantee or authorized contractors or lessee.
•Logisticsandtransportation •Broadcasting
•Urbanmobility •Basicsanitationand
•Energy •Irrigation
•Telecommunications
• Debêntures de Infraestrutura
*Incaseofinvestmentsfrom
countrieswhicharenotsubject
toa20%(orhigher)incometax
rate(“taxhavens”),theabove
mentionedtaxbenefitsdonotapply,
unlessitisrelatedtoawealthfund

50
Ministry
of Finance
Definition Benefitsfor
non-residentinvestors* Minimum Requirements
Brazilian Infrastructure
Bonds Investment Funds
• ZeroTaxonFinancialOperations(IOF)
• Concentrationininvestments:mustholdatleast67%(sixty-
-seven)percentoftheFund’snetworthwithinthefirsttwoyears
and85%(eighty-five)percentintheremainingyears.
• FundofFunds(FIC)investments:mustholdatleast95%
(ninety-five)percentofFICnetworthintheInfrastructureBonds
InvestmentFund’squota.
• Fundos de Debêntures Incentivados

51
Ministry
of Finance
http://www.bcb.gov.br/pre/normati-
vos/res/2011/pdf/res_3947_v1_O.
pdf
Decree 7,632/11
http://www.planalto.gov.br/
ccivil_03/_Ato2011-2014/2011/
Decreto/D7632.htm
ccivil_03/_Ato2011-2014/2011/Lei/
L12431.htm
ccivil_03/_Ato2011-2014/2012/Lei/
L12715.htm#art71
http://portal.anbima.com.br/Pages/
home.aspx
• More Info (useful links):
Law12,431ofyear2011
Law12,715ofyear2012
BrazilianFinancialand
CapitalMarketsAssociation
CMNResolution3,974of
year2011
Decree7,632ofyear2011

54
Ministry
of Finance
Highways
Highway Concessions
Highways
Updatedinformationavailableat
www.logisticsbrazil.gov.br
Source:NationalLogistics&Planning
Company(EPL)
7
2
6
9
5
4
1
3
PA MA
PE
BA
TO
MT
ES
MG
GO
MS
SP
PR
SC
RS
Açailãndia
Sinop
Palmas
Parnamirim
Lucas do Rio Verde
Cuiabá
Recife
Maceió
Aracaju
Salvador
Porto Seguro
Mucurí
Vitória
Campos
Além Paraíba
Divisa Alegre
Mafra
Maracaju
Estrela
D’Oeste
Rio de
Janeiro
Belo
Horizonte
São Paulo
Santos
Campo
Grande
Uruaçu
Brasília
Rio Grande
Juíz de Fora
Anápolis
Goiânia
Feira de Santana
BR-116
BR-050
BR-262
BR-040
BR-153
BR-163
BR-262
BR-060
BR-101
BR-153
BR-163
Belém
2
1
3
5
4
6
8
7
9
BR-116/MG
BR-040/MG-GO-DF
BR-101/BA
BR-262/MG-ES
BR-050/GO-MG
BR-153/GO-TO
BR-163/MT
BR-163/MS
BR-060/153/262/DF-GO-MG
8

55
Ministry
of Finance
Highways
Auction Concluded
on September 18th
Road Concession – BR-050: from Cristalina (GO) (BR-040 entry point) to MG/SP border
Object Demand Criteria
• Section: BR-050, Entry Point of BR-
040/GO (Cristalina) – Border w/ MG/SP
• Total Length: 426 km
• Length to be widened: 219 km
The project includes widening,
maintenance and operation of the
highway. Other widening projects are
also planned to happen, including the
construction of 9 km of side roads.
Demand Projection (AADT):
2014 (54,232), 2019 (62,790), 2024
(76,046).
Connects Brasilia, the state of São
Paulo and the South Region of the
country, crossing an important
agricultural and wholesale retail
center - the Minas Gerais triangle.
Term: 30 years
Criteria: lowest tariff
Economic and
Financial Modeling
CAPEX*: US$ 1.3 billion
OPEX: US$ 869 million
Financing conditions:
Term: 25 years (Grace period: 5 years)
Rate: TJLP** + 2%a.a.
Real leveraged IRR: up to 16%
per year, in real terms.
Debt to equity ratio: 70% / 30%
Equity support: up to 49% of SPE***
or holding’s share capital
(Institutions: public banks and
pension funds)
Environmental licensing: State-
owned EPL is in charge of obtaining
Previous License (LP) and Installation
License (LI) of duplication works
MT
TO
GO
MS
PR
SP
MG
RJ
ES
BA
BR-153
BR-060
BR-050
São
Paulo
Palmas
Curitiba
Goiânia
Uberaba
Uberlândia
Catalão
Cristalina
Brasília
Highway BR-050 GO/MG
To be awarded
BR-040
Rio de Janeiro
Vitória
*Withoutbenefitsandindirect
expenses
**TJLP-LongTermInterestRate,
currently5%p.a.
***SpecialPurposeEntity
InthefirsthalfofSeptember2013,
theaverageexchangeratewas
approximatelyUS$1= R$2.30
Company(EPL)

56
Ministry
of Finance
Highways
Road Concession – BR-040: Brasília (DF) – Juiz de Fora (MG)
• Section: BR-040, Juiz de Fora (MG) – Entry
point of BR-251 (Brasília - DF)
The project includes widening, maintenance
and operation of the highway. Other
widening projects are also planned to
happen, including the construction of side
roads between Luziania and Brasilia.
Demand Projection: under study
Connects two important economic
centers in Brazil - Rio de Janeiro and
Belo Horizonte - to the fourth most
populous city and the highest GDP
per capita in the country - Brasilia.
It is the main route for supply of
coal to steel parks.
ConcessionTerm: 30 years
Number ofToll Plazas: 11
Economic and Financial
Modeling
Rate:TJLP* + 2%a.a.
Real leveraged IRR: up to 16% per
year, in real terms.
Debttoequityratio:upto70%/30%
Equity support: up to 49% of SPE**
pension funds)
GO
PR
SP
MG
RJ
ES
Brasília
Luziânia
Sete Lagoas Belo Horizonte
Juiz de Fora
BR-381
BR-040
Highway BR-040
MG/GO/DF
To be awardedGranted Section
180 Km
São Paulo
Curitiba
Rio de
Janeiro
*TJLP-LongTermInterestRate,
currently5%p.a.
**SpecialPurposeEntity
Company(EPL)

57
Ministry
of Finance
Highways
RoadConcession–BR-116:fromBA/MGborder(DivisaAlegre)toMG/RJborder(AlémParaíba)
• Section: BR-116, RJ/MG Border (Além
Paraíba) - MG/BA Border (Divisa Alegre)
widening projects are also planned, including
the construction of 27 km of side roads.
Connects two important economic
centers in Brazil - Rio de Janeiro
and Salvador – across eastern
Minas Gerais.
Economic and Financial
Modeling
Rate:TJLP* + 2%a.a.
Real leveraged IRR: up to 16% per
year, in real terms.
Equity support: up to 49% of SPE**
pension funds)
GO
SP
MG
RJ
ES
BA
BR-116
São
Paulo Rio de
Janeiro
Divisa Alegre
Teófilo Otoni
Gov. Valadares
Muriaé
Além Paraíba
Salvador
Highway
BR-116 MG
To be awarded
currently5%p.a.
Company(EPL)

58
Ministry
of Finance
Highways
Road Concession – BR-101:
from the entry point of BR-324 (BA) to the entry point of the BA-698 (Mucuri)
• Section: BR-101, Entry Point of BA-698
(Mucuri) – Entry Point of. BR-324/BA
• Length to be widened: 551.3 km
highway. Other widening projects are
also planned to happen, including the
Demand Projection (AADT): 2014
(57,392), 2019 (71,312),
2024 (87,140).
ConnectsthesoutherncoastofBahia
tothestatesofEspíritoSantoandRio
deJaneiro.BR-101isaveryimportant
roadconnectingthenortheastwiththe
southeastandsouthernregionsalong
thecoastalline,wherelivesagreat
shareofBrazilianpopulation.Important
portsarealsoconnectedbythisroad.
Economic and
Financial Modeling
OPEX: US$ 1.3 billion
Rate:TJLP** + 2%a.a.
Equity support: up to 49% of
SPE*** or holding’s share capital
pension funds)
TO
GO
SP
MG
RJ
ES
BA
Salvador
Rio de
Janeiro
BR-101
BR-116
BR-381
BR-262
Belo
Horizonte
Vitória
MucuríJoão
Monlevade
São
Paulo
Highway BR-101 BA
To be awarded
expenses
currently5%p.a.
Company(EPL)

59
Ministry
of Finance
Highways
Road Concession – BR-262: from the entry point of BR-381 (J. Monlevade) to the entry
point of BR-101/ES
• Section: BR-262, Entry Point of BR-381
(J. Monlevade) – Entry Point of BR-101/ES
widening projects are also plannedw,
including the construction of a ringroad and
13 km of side roads.
2014 (7,549), 2019 (9,297),
2024 (11,388)
The state of Minas Gerais (MG)
has the third largest population
in Brazil.This road gives access to
the ports of the state of Espirito
Santo, the main gateway to MG
exports and imports, constituting
an alternative route for the flow of
MG production.
Economic and
Financial Modeling
CAPEX*: US$ 916 million
OPEX: US$ 739 million
pension funds)
TO
GO
SP
MG
RJ
ES
BA
Salvador
Rio de
Janeiro
BR-101
BR-116
BR-381
BR-262
Belo
Horizonte
Vitória
Mucurí
São
Paulo
Highway
BR-262 ES/MG
To be awarded
João
Monlevade
Governador
Valadares
expenses
currently5%p.a.
Company(EPL)

60
Ministry
of Finance
Highways
RoadConcession–BR-153:fromPalmas(TO)toAnápolis(GO)(BR-060entrypoint)
• Section: BR-153, Anápolis (Entry
Point of BR-060/GO) - Entry Point of
TO-080;TO-080, Entry Point of
BR-060/GO- Palmas
highway. Other widening projects
are also planned, including the
Demand Projection (AADT): 2014
(99,926), 2019 (119,627), 2024 (146,113).
ConnectsPalmas,Goiâniaandthesoutheast
ofthecountry,crossingamajorBrazilian
agriculturalpole.Palmasisthegeographical
centerofthecountry,withthevocation
tobecomeanimportanthub.BR-153is
themainroadtoreachthecityofManaus
fromotherregions,benefitingfromthe
heavytrafficofManausFreeZone,which
concentratesBrazilianelectronicproduction,
amongotherimportantindustries.
ConcessionTerm: 30 years.
Number ofToll Plazas: 11.
Criteria: lowest tariff.
Economic and
Financial Modeling
Debt to equity ratio: 70% / 30%
pension funds)
MT
TO
GO
MS
SP
MG
RJ
ES
BA
Palmas
Gurupi
Uruaçu
Anápolis
BR-153
TO-080
BR-060
BR-040
BR-050
BR-262
BR-153
Highway
BR-153 GO/TO
To be awarded
expenses
currently5%p.a.
Company(EPL)

61
Ministry
of Finance
Highways
Road Concession – BR-060 (DF/GO), BR-153 (GO/MG) and BR-262 (MG)
• Section: BR-060, Entry Point of BR-251 (DF) –
Entry Point of BR-153/GO; BR-153, Entry Point of BR-
060/GO – Entry Point of Br-262/MG; BR-262, Entry
Point of BR-153/MG – Entry Point of BR-381 (Betim)
• Total Length: 1,177 km
•Lengthtobewidened:648km
The project includes widening, maintenance and
operation of the highway. Other widening projects
are also planned, including the construction of 27
km of side roads and ringroad in Goiânia.
Demand Projection
(AADT): 2014 (160,374),
2019 (195,551), 2024
(238,453).
Connects Brasília, Goiânia,
Uberaba and Belo Horizonte,
crossing a major Brazilian
agricultural pole.
Term: 30 years.
Number ofToll Plazas: 11.
Economic and
Financial Modeling
Term: 25 years (Grace period: 5
years)
pension funds)
MT
TO
GO
MS
SP
MG
RJ
ES
BA
Palmas
Gurupi
Uruaçu
Anápolis
BR-153
TO-080
BR-060
BR-040
BR-050
BR-262
BR-153
Highway BR-060/153/262
DF/GO/TO
To be awarded
expenses
currently5%p.a.
Company(EPL)

62
Ministry
of Finance
Highways
Road Concession – BR-163: from MT/MS border to MS/PR border
• Section: BR-163, Border MT/MS – Border
w/ MS/PR
widening projects are also planned.
Connects Cuiabá, Campo Grande
and the Southeast/South Regions
of Brazil, constituting an alternative
route for the flow of Brazilian
agricultural production.
Term: 30 years.
Economic and
Financial Modeling
pension funds)
MT
TO
GO
MS
PR
SP
MG
RJ
ES
BA
Curitiba
Cuiabá
Campo Grande
Nova Alvorada
Dourados
BR-163
BR-364
BR-262
BR-267
Highway BR-163
/267/262 MS
BR-163
To be awarded
expenses
currently5%p.a.
Company(EPL)

63
Ministry
of Finance
Highways
Road Concession – BR-163: from Sinop (MT) to MT/MS border
• Section: BR-163, Sinop – Border MT/MS
widening projects are also planned, including
20 km of ringroad (in 5 different cities) and
44 km of side roads.
2014 (5,815), 2019 (7,140), 2024
(8,757)
Connects Sinop, Cuiabá, Campo
Grande and the North/Southeast/
South Regions of Brazil, crossing
an important Brazilian agricultural
production.
Term: 30 years
Economic and
Financial Modeling
per year, in real terms
pension funds)
MT
TO
GO
MS
PR
SP
MG
RJ
ES
BA
Goiânia
Curitiba
Cuiabá
Campo Grande
BR-163
BR-364
BR-262
BR-267
Posto Gil
Rondonópolis
Sinop
BR-163
Highway BR-163 MT
To be awarded
expenses
currently5%p.a.
Company(EPL)

66
Ministry
of Finance
Railways
Railway Network
Exploited rail network
PIL - Rail Network
(11,000 km) – to be awarded
StructuringWaterways
PAC – Rail network
New railways – Studies
underway
Company(EPL)
Pacific
Link
Pacific
Link
Santarém
Manaus
Porto Velho
Belém /
V. Conde
Rio Grande
Santos
Itaguaí
Rio de Janeiro
Vitória
Ilhéus
Salvador
Suape
Pecém
Itaqui
Aratu
S F. Sul
Paranaguá
Itajaí / Navegantes
Estrela
d’Oeste
Figueirópolis
Estreito
Lucas do Rio
Verde Uruaçu
Belo Horizonte
Eliseu
Martins
Barreiras
Rondonópolis
Açailândia
Salgueiro
Parnamirim
Maracaju

67
Ministry
of Finance
Railways
Railway Concession: São Paulo rail beltway (“Ferroanel”) and access to Santos seaport
Object Demand Concession characteristics Financing Conditions
The North Ferroanel will
surround the metropolitan
region of São Paulo,
connecting Santos to Jundiaí.
It will increase the rail cargo
capacity and alleviate the
traffic in the city.
Section:
Jundiaí-Manuel Feio; Riberão
Pires-Evangelista de Souza;
access to Santos Seaport
Allows offsetting the transportation of
cargo and passengers from other means of
transporation in the São Paulo Metropolitan
Region and optimizes railway access to Santos
Seaport.
Build, operate and transfer
Railinfrastructurebuilderand
manager:Concessionforrailway
exploitation,comprising:construction,
maintenance,signalingandcomunications
systems,andtrafficcontrol.
Construction to be completed up to the
5th year of the concession term.
RiskMitigation:DemandRisk
(Guaranteedpurchaseof100%ofrailway
operationalcapacityavailability);Socio-
environmentalandExpropriationRisks
(EnvironmentalandExpropriationcostsand
chargeslimitedtovaluespre-establishedin
concessioncontracts).
Environmental licensing: State-owned
EPL is responsible for obtaining Previous
License (LP) and will give support for
obtaining the Installation Licence (LI) of
construction works.
Term: 30 years
(Grace period: 5 years)
Rate:TJLP* + 1%a.a.
Real leveraged IRR:
up to 16% per year, in real terms.
Upfront payment of revenues due
to operational capacity availability,
in equivalent value of 15% of total
referential CAPEX.
SPE** or holding’s share capital
pension funds).
Canguera
Amador
BuenoMarinque
Evangelista
de Souza
Santos
Pereque
Itaquaciara
Perus
Eng Manoel Feio
Suzano
Rio Grande
da Serra
Ipiranga
Lapa
Jundiaí
Northern Ferroanel (SP)
To be awarded
SP
Santos
Seaport
currently5%p.a.
Updatedinformationavailable
atwww.logisticsbrazil.gov.br
Company(EPL)

68
Ministry
of Finance
Railways
Section: Lucas do RioVerde
- Campinorte and Palmas -
Anápolis
Extension: 1,920 km
InterconnectsBrazil’sMidwestRegiontothe
SoutheastandNortheast,providingrailway
transportationtoproductioncenterslocated
inthemidwestandtheoutflowthroughthe
North-SouthRailway.
Estimated CAPEX: US$3.65billion
Railinfrastructurebuilderand
manager:Concessionforrailway
exploitation,comprising:construction,
maintenance,signalingandcomunications
systems,andtrafficcontrol.
RiskMitigation:DemandRisk
(Guaranteedpurchaseof100%ofrailway
operationalcapacityavailability);Socio-
environmentalandExpropriationRisks
(EnvironmentalandExpropriationcostsand
chargeslimitedtovaluespre-establishedin
concessioncontracts).
construction works.
Term: 30 years
Rate:TJLP* + 1%a.a.
Real leveraged IRR:
referential CAPEX.
pension funds).
Railway Concession: from Lucas do RioVerde (MT)
to Campinorte (GO) and from Palmas (TO) to Anápolis (GO)
MT
TO
GO
MS
SP
MG
RJ
ES
BA
Palmas
Campinorte
Anápolis
Lucas do Rio Verde
Concession: Lucas do Rio Verde
- Campinorte and Palmas - Anápolis
To be awarded
currently5%p.a.
Company(EPL)

69
Ministry
of Finance
Railways
Section: Açailândia -
Vila do Conde
Extension: 457 km
Interconnects the Midwest Region to
the North and the port ofVila do Conde,
completing the north stretch of the North-
South Railway, allowing the production and
outflow of grains, minerals and oil products
through the port ofVila do Conde
Estimated CAPEX: US$ 1.39 billion
Rail infrastructure builder and
manager: Concession for railway
exploitation, comprising: construction,
maintenance, signaling and
comunications systems, and traffic
control.
Risk Mitigation: Demand Risk
(Guaranteed purchase of 100% of
railway operational capacity availability);
Socio-environmental and Expropriation
Risks (Environmental and Expropriation
costs and charges limited to values pre-
established in concession contracts).
construction works.
Term: 30 years
Rate:TJLP* + 1%a.a.
Real leveraged IRR:
referential CAPEX.
pension funds).
Railway Concession: from Açailândia (MA) toVila do Conde (PA)
TO
MA
PA
Belém
Açailândia
Carajás
Vila do
Conde Port
Itaqui
Port
Concession:
Açailândia - Vila do Conde
To be awarded
currently5%p.a.
Company(EPL)

70
Ministry
of Finance
Railways
Section: OuroVerde de
Goiás – Dourados
Extension: 1,339 km
Expands the North-South Railway and
reaches important production centers of
grains.
control.
construction works.
Term: 30 years
Rate:TJLP* + 1%a.a.
Real leveraged IRR:
referential CAPEX.
pension funds).
Railway Concession:
OuroVerde de Goiás (GO) – Estrela D’Oeste (SP) – Panorama (SP) – Dourados (MS)
Concession:
Ouro Verde de Goiás - Dourados
To be awarded
Ouro Verde de Goiás
Goiânia
Campo Grande
Dourados
Panorama
Andradina
Estrela d’Oeste
GO
MS
currently5%p.a.
Company(EPL)

71
Ministry
of Finance
Railways
Section: Belo Horizonte -
Candeias
Extension: 1,350 km
Createsnewpossibilitiesfortransportofgeneral
cargobetweenthesoutheastandnortheast
regions,refocusingontheuseofrailwaystothe
developmentoftheinternalmarket.
control.
construction works.
Term: 30 years
Rate:TJLP* + 1%a.a.
Real leveraged IRR:
referential CAPEX.
pension funds).
Railway Concession: from Belo Horizonte (MG) to Candeias (BA)
GO
SP
MG
RJ
ES
BA
Concession:
Belo Horizonte - Candeias
To be awarded
Salvador
Candeias
Corinto
Salvador
Port
Aratu
Port
Belmonte
Port Terminal
Brumado
Caetité
Belo
Horizonte
Ilhéus Port
currently5%p.a.
Company(EPL)

72
Ministry
of Finance
Railways
Section: Rio de Janeiro -Vila
Velha
Extension: 572 km
Integrates the port of Rio de Janeiro and its
Terminals to the Ports ofVitória eTubarão,
creating new logistic possibilities for the
movement of cargo.
control.
construction works.
Term: 30 years
Rate:TJLP* + 1%a.a.
Real leveraged IRR:
referential CAPEX.
pension funds).
Railway Concession: from Rio de Janeiro (RJ) toVilaVelha (ES)
MG
RJ
ES
Concession:
Nova Iguaçu - Vila Velha
To be awarded
Vitória
Vila Velha
Campos dos
Goitaguazes
Formosa
Beach
Tubarão
Port
Vitória
Port
Niterói Port
Rio de Janeiro Port
Ponta UBU
Port Terminal
Açu
Port
Terminal
Macaé
Port Terminal
Rio de
Janeiro
Barra do Piraí
Duque de Caixias
Port Terminal
Nova
Iguaçú
currently5%p.a.
Company(EPL)

73
Ministry
of Finance
Railways
Section: Anápolis – Corinto
– Campos
Extension: 1,706 km
Createsnewpossibilitiesfortheoutflowofgrains
andmineralsfromproductioncentersthrough
mainports.
control.
construction works.
Term: 30 years
Rate:TJLP* + 1%a.a.
Real leveraged IRR:
referential CAPEX.
pension funds).
Railway Concession: from Corinto (MG) to Campos (RJ)
GO
SP
MG
RJ
ES
BA
Uruaçu
Concession:
Uruaçu - Campos
Ilhéus
Port
Corinto
Brumado
Vitória
Vitória
Port
Açu
Port Terminal
Belo Horizonte
Intendente Câmara
Campos
Bernardo Sião
To be awarded
Anápolis
currently5%p.a.
Company(EPL)

74
Ministry
of Finance
Railways
Section: Feira de Santana –
Ipojuca
Extension: 893 km
Modernizes the northeastern railway network,
linking the major ports and markets
control.
construction works.
Term: 30 years
Rate:TJLP* + 1%a.a.
Real leveraged IRR:
referential CAPEX.
pension funds).
Railway Concession: from Feira de Santana (BA) to Ipojuca (PE)
BA
SE
AL
PE
PB
Concession:
Feira de Santana - Ipojuca
To be awarded
Recife
Maceió
Aracajú
Salvador
Porto de Recife
Porto de Suape
Porto de Maceió
Terminal Portuário
de Atalaia Velha
Porto de SalvadorPorto de
Aratu
Salgueiro
currently5%p.a.
Company(EPL)

75
Ministry
of Finance
Railways
Section: Lapa – Paranaguá
Extension: 150 km
Expands and modernizes rail access to the
port of Paranaguá.
control.
construction works.
Term: 30 years
Rate:TJLP* + 1%a.a.
Real leveraged IRR:
referential CAPEX.
pension funds).
Railway Concession: from Lapa (PR) to Paranaguá (PR)
MS
PR
SC
RS
SP
RJ
Concession:
Lapa – Paranaguá
Porto Alegre
Florianópolis
Rio Grande
Port
Pelotas Port
Laguna Port
Imbituba Port
Itajaí Port
Paranaguá Port
São Sebastião
Port
Guaíba
Port Terminal
Duque de
Caxias Port
Terminal
Cascavel
Lapa
Maracaju Panorama
São Paulo
Rio de Janeiro
Curitiba
Eng. Bley
Mafra
Campo Alto
do Sul
Chapecó
Santos
Port
To be awarded
currently5%p.a.
Company(EPL)

76
Ministry
of Finance
Railways
Section: Maracaju – Lapa
Extension: 989 km
Creates new logistics possibilities for the
outflow of grains and other cargo from
production centers through the Port of
Paranaguá.
control.
construction works.
Term: 30 years
Rate:TJLP* + 1%a.a.
Real leveraged IRR:
referential CAPEX.
pension funds).
Railway Concession: from Maracajú (MS) to Lapa (PR)
MS
PR
SC
RS
SP
RJ
Concession:
Lapa – Paranagua
Porto Alegre
Florianópolis
Rio Grande
Port
Pelotas Port
Laguna Port
Imbituba Port
Itajaí Port
Paranaguá Port
São Sebastião
Port
Guaíba
Port Terminal
Duque de
Caxias Port
Terminal
Cascavel
Lapa
Maracaju Panorama
São Paulo
Rio de Janeiro
Curitiba
Eng. Bley
Mafra
Campo Alto
do Sul
Chapecó
Santos
Port
To be awarded
currently5%p.a.
Company(EPL)

77
Ministry
of Finance
Railways
Section: Mairinque – Rio
Grande
Extension: 1,667 km
Creates new logistics possibilities for the flow
of cargo between Sao Paulo and the South
Region of Brazil, linking production and
consumption centers.
control.
construction works.
Term: 30 years
Rate:TJLP* + 1%a.a.
Real leveraged IRR:
referential CAPEX.
pension funds).
Railway Concession: from Mairinque (SP) to Rio Grande (RS)
MS
PR
SC
RS
SP
RJ
Concession: Mairinque
– Rio Grande
Porto Alegre
Florianópolis
Rio Grande
Port
Pelotas Port
Laguna Port
Imbituba Port
Itajaí
Port
Paranaguá
Port
São
Sebastião
Port
Guaíba
Port Terminal
Duque de
Caxias Port
Terminal
Cascavel
Forno
Port
Maracaju Panorama
São Paulo
Rio de Janeiro
Mairinque
Eng. Bley
Mafra
Campo Alto
do Sul
Chapecó
Santos
Port
To be awarded
currently5%p.a.
Company(EPL)

78
Ministry
of Finance
Railways
Study in Progress
Railway Concession – High-SpeedTrain (TAV)
Rio de Janeiro - São Paulo - Campinas 1st
Phase
Physical Description
Section: Rio de Janeiro - São Paulo - Campinas
Extension: 511 km
The High-SpeedTrain Rio de Janeiro – Campinas will be the first high speed rail service in Brazil.The first phase includes the
concession of the operation and maintenance of the system, supply and assembly of operational (signalling, electrification
and telecommunication) and safety systems, rolling stock and acoustic protection, and technology transfer.
Company(EPL)
Viracopos
Galeão
Guarulhos
São Paulo
Campinas
Rio de Janeiro

80
Ministry
of Finance
Seaports
Company(EPL)
Major Brazilian Ports
Macapá
Belém/Miramar/Outeiros
Itaqui
Pecém
Cabedelo
Suape/Recife
Maceió
Aratu/Salvador
Porto Sul/Ilhéus
Vitória
Itaguaí/Rio De Janeiro
Santos/São Sebastião
Paranaguá/Antonia
Itajaí/Imbituba/São Francisco do Sul
Porto Alegre
Rio Grande
Vila do
Conde
Santarém
Manaus/
Itacoatiara
Porto Velho

81
Ministry
of Finance
Seaports
Port Investment Program - Bidding Blocks
Block Ports Estimated
Investment
Increase
Capacity Auction
Block 1
31 terminals at: Santos, Outeiro,
Santarém, Belém, Miramar andVila
do Conde Ports
US$ 1.5 bi
27 million
tons/year
Dec 2013
Block Ports Public Consultation Auction
Block 2
44 terminals at: Paranaguá, Antoni-
na, Salvador, Aratu and São Sebastião
Ports
Sep 2013 Jan 2014
Block 3
36 terminals at: Cabedelo, Fortale-
za, Itaqui, Macapá, Recife and Suape
Ports
Oct 2013 Feb 2014
Block 4
28 terminals at: Itaqui, Niterói, Rio
de Janeiro, Itajaí, São Francisco do Sul,
Rio Grande, Porto Alegre andVitória
Ports
Nov 2013 Mar 2014
Source:SpecialSecretariatofPorts

82
Ministry
of Finance
Seaports
Port Investment Program
Company(EPL)
Conditions to public ports
• Terminals at public ports will be leased through public auction
Main Features
• 25-year term, renewable only once
Standardized biddings conducted through
auction by ANTAQ
ContractualTerms (requirements)
• Minimutm Investments
• Minimum productivity
• Minimum static capacity
Selection Criteria
Terminal in verticalized chains or with
healthy competition environment
• Bidding for greater handling capacity
• Induction of new investments
Terminals with features of provision of
services to third parties
• Bidding for lowest tariff
• Reduction of port costs
• Guarantee of isonomic access to users
Conditions to private ports
• Terminalsatprivateportsmaybeleasedwithoutapublicauction,shoulditsconstructionnotconflict
with another port or terminal, existing or planed.There are 62 private terminals that should obtain
its lease in the next months, with a estimated investment of US$ 7.5 billion

84
Ministry
of Finance
Airports
Source:CivilAviationSecretariat(SAC)
Major Brazilian Airports
Brasília
Goiânia
Boa Vista
Tabatinga
Cruzeiro do Sul
Rio Branco
Tefé
Porto Velho
Manaus
Santarém
Altamira
Macapá
Belém (Val de Cans)
Belém (Júlio César)
Marabá
Palmas
Cuiabá
Corumbá Campo Grande
Ponta Porã
Foz do Iguaçú
Uruguaiana
Bagé
Porto Alegre
Pelotas
Criciúma
Florianópolis
Navegantes
Joinville
Curitiba (Afonso Pena)
SP (Congonhas)
Curitiba
(baracher)
SP (Campos de Marte)
Londrina
Uberaba
Uberlândia
RJ (Jacarepaguá)
RJ Santos Dumont
Macaé
Campos dos Goytacazes
Vitória
Montes Claros
Petrolina
Juazeiro
do Norte
Fortaleza
Parnaíba
Guarulhos
RJ (Galeão)
Campinas
SJ dos Campos
Teresina
Imperatriz
Carajás
Campina
Grande
Paulo
Afonso
Ilhéus
Salvador
Aracajú
Natal
João Pessoa
Recife
Maceió
Confins
BH (Carlos Prates)
BH (Pampulha)
15.000.001 to 30.100.000 (3)
5.000.001 to 15.000.000 (9)
1.000.001 to 5.000.000 (15)
5000.001 to 1.000.000 (7)
100.001 to 500.000 (19)
Up to 100.000 (13)
Passengers per year
Concessions to be granted :
Galeão (Rio de Janeiro)
Confins (Belo Horizonte)
Concessions already
granted :
Guarulhos (São Paulo)
Viracopos (São Paulo)
Brasília

85
Ministry
of Finance
Airports
Airport Investment Program
Airport International
Pax - 2012
Domestic
Pax - 2012
Estimated
Investment Auction Concession
Term Situation
Guarulhos
International
(GRU)
11,387,443 20,958,079 US$ 3.1 billion Feb 2012 20 years Granted
Viracopos
International
(VCP)
75,610 8,627,690 US$ 5.1 billion Feb 2012 30 years Granted
Brasilia
International
(BSB)
409,975 15,419,553 US$ 1.8 billion Feb 2012 25 years Granted
Galeão
International
(GIG)
4,190,433 12,973,780 US$ 2.45 billion Nov 2013 25 years
To be
Granted
Confins
International
(CNF)
443,955 9,834,536 US$ 1.52 billion Nov 2013 30 years
To be
Granted

86
Ministry
of Finance
Airports
Schedule for the concessions of Galeão and Confins airports
2013
Release of
Auction
Notices
TCU* and
Public Hearings AuctionStudies
May
Jun
Jul
Aug
Sep
Nov
*TCU-FederalCourtofAuditors

87
Ministry
of Finance
Airports
Galeão - Summary Chart
Galeão - Summary Chart
Airport Area: 17,881,697m²
Area for Apron: 712,895 m2
Aircraft Capacity:
-T1: 19 boarding gates + 12 remote positions
-T2: 19 boarding gates + 12 remote positions
- 15 positions for cargo aircraft
PassengerTerminals:
Capacity: 17.4 million Pass/Yr
Area: T1 - 147,834 m²
T2 - 132,847 m²
Parking: 4,310 parking spaces
CargoTerminal: 46,500 m²
Cargo Movements: 87,876 ton
Staff Employees: 958
Number of Passengers, in million
Passenger Profile (2012), in million
Int
Dom
13.0
4.2
0
6
12
18
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2011-2012: 17.5%
Average Growth = 16%

88
Ministry
of Finance
Airports
Galeão – Financial Conditions
Object:
• Expansion, maintenance and operation of the Antônio Carlos Jobim International Airport
(Galeão Airport) with a total area of 17,880,000 m2
Contract criteria:
• Term: 25 years
• Consortium:INFRAERO,thegovernmentownedcompany,willhold49%oftheConcessionairecapital;
private leveraged (51%)
• Periodic review of the capex program and Investment triggers
• Bidding Criteria: highest bid + variable fee
• Minimum bid: US$ 2.09 billion
• Variable fee: 5% of the gross revenue
• CAPEX: US$ 2.45 billion
• Project IRR: 6.63% p.a.
• OPEX: US$ 4.63 billion
Financing conditions*:
• Credit term: 14 years
• Grace period: 2 years
• Debt: up to 80% of the capex
• Interest Rate: TJLP (currently at 5%) + 0.9% + risk spread (0.46% to 3.57%) per year
*BNDESfinancingconditionsapplied
toairportsalreadygranted(Guarulhos,
ViracoposandBrasília).

89
Ministry
of Finance
Airports
Galeão- Estimated Demand
10
30
50
70
2038203320232013
60.3
50.1
34.5
19.2
MillionPassengers
Year 2013 2023 2033 2038
Passengers 19,269,199 34,537,602 50,138,243 60,365,874

90
Ministry
of Finance
Airports
Confins - Summary Chart
Confins - Summary Chart
Airport Area: 15,010,000 m²
Area for Apron: 211,437 m2
Aircraft Capacity:
Apron 1: 9 boarding gates + 9 remote positions
Apron 2: 7 positions for general aviation + 1 helipad
Apron 3: 2-4 positions for general aviation
PassengerTerminal:
Capacity: 10.3 million Pass/Year
Area: T1 - 60,305 m²
Vehicle Parking : 2,005 parking spaces
CargoTerminal: 9,880 m²
Cargo Movements: 27,163 ton
Staff Employees: 344
Number of Passengers, in million
Passenger Profile (2012) , in million
Int
Dom 9.8
0.4
2011-2012: 9.5%
Average Growth = 46.3%
Migration of
Pampulha to
Confins
0
4
8
12
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003

91
Ministry
of Finance
Airports
Cofins - Financial Conditions
Object:
• Expansion, maintenance and operation of theTancredo Neves International Airport
(Confins Airport) with a total area of 15,010,000 m2
Contract criteria:
• Term: 30 years
• Consortium: INFRAERO, the government owned company, will hold 49% of the Concessionaire
capital; private leveraged (51%)
• Periodic review of the capex program and Investment triggers
• Bidding Criteria: highest bid + variable fee
• Minimum bid: US$ 476.5 million
• Variable fee: 5% of the gross revenue
• CAPEX: US$ 1.52 billion
• Project IRR: 6.63% p.a.
• OPEX: US$ 1.57 billion
Financing conditions*:
• Credit term: 14 years
• Grace period: 2 years
• Debt: up to 80% of the capex
• Interest Rate:TJLP (currently at 5%) + 0.9% + risk spread (0.46% to 3.57%) per year
*BNDESfinancingconditionsapplied
toairportsalreadygranted(Guarulhos,
ViracoposandBrasília)

92
Ministry
of Finance
Airports
Confins – Estimated Demand
5
14
23
32
41
50
2043203320232013
28.1
18.1
10.9
43.3
MillionPassengers
Year 2013 2023 2033 2043
Passengers 10,993,890 18,162,209 28,165,165 43,334,690

94
Ministry
of Finance
OilandGas
Source:NationalAgencyofPetroleum,
NaturalGasandBiofuels(ANP)and
MinistryofMinesandEnergy(MME)
11th
Round – Bidding Results (May 2013)
• 142 bought blocks, from 289 offered at the auction
• US$ 1.22 billion in signature bonus
• US$ 3.0 billion in the Minimum Exploratory Program commitment
• Local Content offers indicates good possibilities for execution of the previous
commitments regarding earlier bidding rounds
• 30 companies bought blocks at the bidding round
- 18 companies from 11 different countries

95
Ministry
of Finance
OilandGas
11th
Round – Bidding Result (May 2013)
Brasília
Pernambuco-Paraíba
Barreirinhas
Pará-Maranhão
Amazonas River Mouth
Ceará
Parnaíba
Tucano and
Reconcavo Basins
Potiguar Onshore
Basin
Potiguar Offshore
Espírito Santo
Onshore/Offshore
Brought Blocks
Offered but not sold
Offshore
Sedimentary Basin
Pre-Salt Limit

96
Ministry
of Finance
OilandGas
11th
Round – Bidding Result (May 2013)
Sedimentary basin State Bought Blocks Area (km2
)
Sergipe-Alagoas onshore AL 11 320.89
Foz do Amazonas AP 14 10,543.55
Pernambuco-Paraíba
PB 1 476.95
PE 3 1,776.23
Tucano Sul BA 21 3,789.67
Espírito Santo offshore ES 6 4,328.40
Espírito Santo onshore ES 6 178.73
Recôncavo BA 15 443.13
Ceará CE 6 3,642.32
Potiguar offshore
CE 3 2,303.23
RN 1 767.38
Potiguar onshore RN 14 411.80
Barreirinhas MA 19 9,997.40
Pará-Maranhão
MA 2 1,538.57
PA 0 -
Parnaíba (onshore)
PI 14 42,143.81
MA 6 17,620.43
TOTAL 11 142 100,282.49

97
Ministry
of Finance
OilandGas
1st
Round of production sharing – Pre-Salt layer
Date: October 21, 2013
Area name: Libra
• 1,548 sq km
• Deep water of Santos Basin
• Well with tested oil discovery
• Estimative of 42 billion bbl of oil in situ, indicating recovery of 8 to 12 billion barrels
Signature Bonus: R$ 15 billion (~US$ 6.5 billion)
Judgement criteria: Percentage of profit oil for the Government
(minimum of 40% in average along the contract period)
Local Content
• 37% at Exploratory Phase
• From 55% to 65% at Production Development Phase
Jul
Sep
Oct21st
Dec
2013
Preliminary
auction
notice,
areas
and data
Release
of auction
notice Auction
Contract
Signature

98
Ministry
of Finance
OilandGas
Brazil Pre-Salt layer – Bidding under production sharing regime
Pre-Salt
Boundaries
Estimated Recoverable
Volumes
Libra
8 to 12 bi boeFranco
2.0 to 5.5 bi boe
Florim
0.1 to 0.4 bi boe
Sul de Guará
0.1 to 0.3 bi boe
Peroba
1.1 to 1.8 bi boe
South and NE of Tupi
0.5 to 0.7 bi boe
Iara Surroundings
0.6 to 0.8 bi boe
Lula
8.3 bi boe
Iara
3 to 4 bi boeSapinhoá
2.1 bi boe
Pão de Açúcar
1.2 bi boe
Parque das Baleias
1.5 to 2 bi boe
Rio de Janeiro
São Paulo
Espirito Santo
Proved Reserves
(2012): 18.2 bi boe
Granted area: 42 thousand sq km (28%)
Cession area: 3.74 thousand sq km (2,5%)
Estimated Volumes (06/2013)
28.5 to 39.1 billion boe
• At the Pre-Salt evaluated areas, expected recoverable volumes could reach twice the
actual proved reserves

99
Ministry
of Finance
OilandGas
12Th
Bidding Round: auction scheduled for November, 2013
Concession of areas under rules and terms established by Law 9,478/1997
Focus on natural gas – conventional and unconventional resources
Blocks: 240
• 164,500 km²
• 7 Sedimentary Basins
Bidding judgment criteria:
• Signature Bonus (40%) - Minimum for each block in the Auction Notice
• Minimum Exploratory Program (40%)
• Local Content (20%) - Minimum and maximum values in Auction Notice

100
Ministry
of Finance
OilandGas
Areas with potential for non-conventional resources
Oil and Gas in Brazil
Sedimentary Basin
Tacutu
Solimões
Acre
Madre de Dios
Amazonas
Alto Tapajós
Parecis
Pantanal
Paraná
Camamu-Almada
Parnaíba
Barreirinhas
Bananal
São
Francisco
Recôncavo
Amazonas River Mouth
Pará-Maranhão
Potiguar
Rio do Peixe
Pernambuco-Paraíba
Sergipe-AlagoasTucano
Espírito Santo
Campos
Santos

102
Ministry
of Finance
Electricity
Brazilian investments in the electricity sector auctions – 2013 to 2017
Estimated Expansion Investments (US$ billion)
Power 33,288 MW 53.1
Transmission 21,164 km 11.0
Total 64.1
• Electricity transmission lines
• Power to be contracted
Auction Length (Km) Investment (US$ billion)*
2013 4,745 2.4
2014-2017
Approved Projects 11,846 6.0
Other Projects 4,573 2.6
Total 21,164 11.0
Sources Capacity (MW) Investment (US$ billion)
Hydro 21,689 35.4
Other Renewable Sources
(Wind, Biomass and Small Hydro)
10,099 16.4
Thermal 1,500 1.3
Total 33,288 53.1
Source:EnergyResearchOffice(EPE)
*Includingestimatedinvestmentin
substations

103
Ministry
of Finance
Electricity
Electricity Auctions
• Modalities
• New Energy Auctions A-3 and A-5: servicing expected demand growth
• Reserve auctions: ensuring greater security of supply
• Structuring Project Auctions: special conditions
• Bidders
• Public or private companies
• National or foreign companies
•Winners
• Lowest bid
• Winners of the new energy auctions sign long-term contracts (15 to 30 years) with distributors and
receive concessions (in the case of hydropower plants)
• Indexation
• IPCA (Consumer Price Index)
• Financing
• Use of the PPA (Power Purchase Agreement) as collateral for project financing by the BNDES
• Risk mitigation
• Only projects with prior environmental licenses are auctioned off

104
Ministry
of Finance
Electricity
HPP-HydroPowerPlant
ANEEL-NationalElectricityAgency
Maintechnicalrequirementsforparticipationintheelectricityauctions
Type
ANEEL
Registry
Prior
Environmental
License
Access
Information
Energy
Production
Certification
Proof of
Right of Local
Use
Proof of
Availability
Water
Use Grant
Wind Power
Plant
X X X X X
Hydroelectric
Plant (HPP and
small Hydro)
X X X X
Thermoelectric
Plant (Biomass
and fossil)
X X X X X X
• A project’s technical and environmental viability must be ensured to participate in the electricity auction
• Several requirements must be met to prove viability, such as:

105
Ministry
of Finance
Electricity
Main financial requirements for
participating in electricity auctions and for signing power contracts
• Bid guarantees due to ANEEL
• Foreachprojecteligibletoparticipateintheauction,biddersmustsubmitbidguaranteesduetoANEEL
1. For Projects without grants: 1% of the investment value
2. For Projects with grants: US$ 870 per lot of energy to be offered
(1 lot = 0.1 average MW)
• Assurance of Faithful Execution of Contract
•The auction winners must collect 5% of the investment value declared to the EPE
•The warranties will decrease in value as the construction phase of the power plant advances
AverageMW(MWm)–EnergyUnit
(8,760MWhoveranyearlyperiod)

106
Ministry
of Finance
Electricity
BNDES FINEM (Financing to Enterprises) Financial Aspects
Hydro Power Plant
(HPP)
Thermal Power Plant
(TPP)
Wind, Biomass and
Small Hydro
• Current credit conditions:
• Leverage: up to 70%;
• Amortization period: up to 20
years;
• Grace period: up to 6 months after
commercial operation date;
• Interest rate:TJLP**+0.9%+credit
risk spread.
• Leverage: up to 70% (60% coal),
should observe DSCR* ≥ 1.2;
• Amortization period: up to 16 years;
• Interest rate:TJLP**+0.9% +credit
risk spread.
• Leverage: up to 80%, should
observe DSCR * ≥1.2;
• Amortization period up to 20 years
(16 years for wind);
• Interest rate:TJLP**+0.9%+credit
risk spread.
*DSCR:debtservicecoverageratio
**TJLP:LongTermInterest
Tax,currently5.0%
Source:National Bank of Economic
and Social Development (BNDES)–
ConsultationinJan/2013

107
Ministry
of Finance
Electricity
Electricity Auctions: main results
• August 2013 Reserve Auction
• August 2013 Power Auction
Type
Projects able to bid Auction Results
Bid Capacity
(MW)
Number of
Participants
Bid Capacity (MW)
Number of
Participants
Total Amount
(US$ million)
Wind Power Plant 8,999 377 1,505 66 2,373
Type
Projects able to bid Auction Results
Bid Capacity
(MW)
Number of
Participants
Bid Capacity
(MW)
Number of
Participants
Total Amount
(US$ million)
Biomass 919 16 647 9 815
Coal 1,840 3 - - -
HPP (less than 50 MW) 376 16 219 9 586
HPP SINOP 400 1 400 1 773
Total 3,535 36 1,266 19 2,174
Number of Auctions Projects Capacity (MW) Investment (US$ billion)
23 490 60,892 100
• Consolidated results of new energy auctions from 2005 to 2012

108
Ministry
of Finance
Electricity
Hydropower Expansion: 2013 electricity auctions
• November 2013 Auction
• Hydropower Expansion: December 2013 auction
Type
Projects able to bid
Bid Capacity (MW) Number of Participants
Wind Power
Plant
15,042 629
Solar 2,838 119
Small Hydro 295 16
Biogas 39 2
Biomass 504 15
Natural Gas 469 2
Total 19,187 783
Auction
Hydropower
Plant
River/State
Capacity
(MW)
Total Capacity
(MW)
Estimated Investments
(US$ billion, constant
prices, Dec/2012)
2013
São Manoel Teles Pires/ MT-PA 700
1,021 1.8
Cachoeira Parnaíba/ PI 63
Ribeiro Gonçalves Parnaíba/ PI 113
Itaocara Paraíba do Sul/RJ 145

109
Ministry
of Finance
Electricity
Hydropower Expansion: auctions from 2014 to 2017
Auction
Hydropower
Plant
River/State
Capacity
(MW)
Total Capacity
(MW)
Estimated Investments
(US$ billion, constant prices, Dec/2012)
2014
Davinópolis Paranaíba/ MG-GO 74
7,495 11.3
Foz do Piquiri Piquiri/ PR 93.2
Ercilândia Piquiri/ PR 87.1
S LuízTapajós Tapajós/ PA 6,133
Água Limpa Das mortes/ MT 380
Comissário Piquiri/ PR 105
Foz Piquiri Piquiri/ PR 101
Telêmaco Borba Tibagi/ PR 109
Paranhos Chopim/PR 63
Tabajara Ji-Paraná/RO 350
2015
Jatobá Tapajós/PA 2,336
3,249 5.4Castanheira Arinos/ MT 192
Itapiranga Uruguai/SC-RS 721
2016
Torixoréu Araguaia/ GO-MT 408
1,117 2.3
Bem Querer Branco/ RR 709
2017
Riacho Seco S. Francisco / PE-BA 276
8,407 13.7
Salto Augusto Baixo Juruena/ MT-AM 1,461
S. Simão
Alto Juruena/
MT-AM
3,509
Pompeu S. Francisco / MG 209
Marabá Tocantins / PA-MA 2,160
Prainha Aripuanã/ AM 792
Total 20,268 32.7

110
Ministry
of Finance
Electricity
HPP São Manoel - Fact sheet
•Teles Pires River
• Capacity: 700 MW
• Firm Energy: 400 average MW
• Number of generating units: 5
• Gross Head: 23.9 m
• Spillway Crest: 165 m.
• Max normal water level (reservoir): 161 m
• Normal water level downstream: 138.2 m
• Reservoir Area (normal water levels) ~ 70.8 km²

Estimated Investment
US$ 1.0 billion
Indigenous Land Cayabi
0 2,5 5 10 15 20
N
Legend
HPP São Manoel
HPP São Manoel Reservoir
0 2,5 5 10 15 20
Declared Indigenous Land
State border line
MATO GROSSO
Novo Planeta
Paulão
Mutum
HPP São Manoel
PARÁ

111
Ministry
of Finance
Electricity
The development of wind power in Brazil
• Operating and contracted capacity
•To be contracted in 2013-2017 auctions
0
2000
4000
6000
8000
10000
10,130
8,846
7,882
5,197
2,189
1,750
1,417
927
607337248237292322
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
MW
Capacity
(MW)
Investment
(US$ billion)
4,215 7.7

112
Ministry
of Finance
Electricity
The development of bioelectricity in Brazil
• Operating and contracted capacity
• To be contracted in 2013-2017 auctions
0
2,000
4,000
6,000
8,000
10,000
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
1,755
2,584 2,590
3,910
4,969
6,822
7,874 8,081
8,936 9,035 9,035 9,085 9,185
MW
Capacity
(MW)
Investment
(US$ billion)
2,513 2.4

113
Ministry
of Finance
Electricity
Other energy sources to be contracted in 2013 – 2017 auctions
• Small hydropower plants
• Additional expansions depend on the effective exploration of unconventional gas
• Thermal power stations
Capacity
(MW)
Investment
(US$ billion)
1,500 1.3
Capacity
(MW)
Investment
(US$ billion)
1,000 2.6

114
Ministry
of Finance
Electricity
Transmission Line Auctions
• Bidders
• Legal Entities: National or Foreign
• Equity Funds: alone or in a consortium
• Clearance
• Clearance after auctions and publication of winning bids
•Winners
• Bidder with lowest Allowed Annual Revenue (RAP)
•Winners will sign long-term contracts (30 years)
• Regulated contracts
• Indexation by IPCA (Consumer Price Index)
• Contracts submitted to the Periodic Rate Reviews
• Financing
• RAP as collateral for financing by the BNDES

115
Ministry
of Finance
Electricity
Transmission Line Auctions: sequence of events
-2.8
Public Notice of Auction
ANEEL approval of technical
capacity of the winners of the auction
TL Auction Winners deliver
documentation to ANEEL
Celebration of concession contract
between winner and ANEEL
Auction held at BM&FBOVESPA
Approval of Auction Results
Auction application and bid
guarantees due to ANEEL Accepted bid guarantee
instruments: cash deposit,
surety bond, bank guarantee,
Brazilian Government Bonds
(1% of estimated investment)
Replacement of bid guarantees
with the guarantee of faithful
execution of the contract
(5% of estimated investment)

116
Ministry
of Finance
Electricity
BNDES FINEM (Financing to Enterprises) Financial Aspects
• Access to financing available to national and international companies with head offices and
management in Brazil, and legal entities of public law
• Leverage: up to 70%
• Total Loan Period: up to 14 years
• Grace period: up to 6 months after commercial operation date.
• Interest rate:TJLP*+1.3%+credit risk spread
*TJLP:LongTermInterestTax,
currently5.0%

117
Ministry
of Finance
Electricity
and National Electricity Agency(ANEEL)
Transmission Line Past Auctions: main results
• Transmission Line Auction of Dec, 2012: Main Results
• Number of applicants: 15 (includes state-owned companies, private groups, 4 foreign groups,
and equity funds)
• TotalTL** tendered: 3,822 Km
• Estimated investment: US$ 1.7 billion
• Average discount: 21.7%
• Stiff competition: for example, in“500 kV Estreito - Itabirito”transmission line auction, there
were 305 bids that resulted in a 16.6% discount
*currentvalues
**TL–TransmissionLine
• Consolidated results of auctions from 2000 to 2012
Number of Auctions Length (km)
Investment
(US$ billion) (*)
24 51,000 13.9

118
Ministry
of Finance
Electricity
Main Projects: north-southeast expansion
Physical Description Goals
• Main section: Connects the North
and Southeast Region, with DC Link
between the states of Pará and Minas
Gerais
• Length:
• 2,050 km on Direct Current
• 2,244 km on Alternating
Current
• Promotes interconnection between two major
subsystems, enabling the exchange of electricity
between regions North and Southeast.
• Increase of 4,000 MW in exchange capacity
between the North and Southeast Regions
Financial Aspects
• ConcessionTerm: 30 years
• Estimated Investment: US$ 2.6 billion
Project Requirements
• TLs in Direct Current: 800 kV
• Increases in Existing System
• Bidding in 2013
• Winning Bidder: the lowest RAP (Allowed
Annual Revenue)
(2)
(2)
800 KV DC
2,050 Km
Bipole 1
500 KV AC
2,244 Km
Terminal Minas
TOCANTINS
Miracema
Colinas
Itacaúnas
MATO GROSSO
GOIÁS
Paraupebas
PARÁ
MARANHÃO
Xingo
Picuruí

119
Ministry
of Finance
Electricity
MainTL Projects to be Auctioned in 2013
2nd
semester 2013 - transmission lines (EPE proposal)
Estimated Investment of
US$ 2.4 billion (*)
*Includesestimatedinvestmentin
substations
Associated Projects Projects State
Voltage
(kV)
Length
(Km)
Investment
(US$ billion)
To meet electricity demand growth
TL Itabirito 2 –Vespasiano 2, CS MG 500 90
0.1TL Barro Alto – Itapaci, C2 GO 230 68
TL Candiota (Presidente Médici) – Bagé 2 RS 230 50
Expansion S/SE TL Itatiba – Bateias SP/PR 500 390 0.2
Expansion before Belo Monte
TL Marimbondo II - Campinas SP 500 370
0.3TL Araraquara 2 - Itatiba, CS SP 500 198
TL Araraquara 2 - Fernão Dias, CS SP 500 240
ExpansionoftheInterconnectionN/SE TL Xingu –Terminal Minas 800 kV (CC – Bipolo 1) PA/SP 800 2,050 1.3
To meet electricity demand growth
TL 230 kV Miranda – Chapadinha II C1 MA 230 140
0.3
TL 230 kV Coelho Neto – Chapadinha II C1 MA 230 78
TL 230 kVVila do Conde -Tomé-Açu C2 PA 230 120
TL 230 kV Imperatriz – Porto Franco C2 MA 230 111
TL 230 kV Ribeiro Gonçalves – Balsas C2 MA 230 95
TL 230 kVTrindade – Firminópolis GO 230 88
Integration of isolated systems TL Rio Branco – Feijó AC 230 357 0.2
TL Feijõ – Cruzeiro do Sul AC 230 300
Total 4,745 2.4

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