Regulation in favor of Private Investments in Brazilian Infrastructure Projects
1. Inter-
Inter-American Bar Association
IABA XLVI th Conference
Regulation in favor of private investments
in Brazilian infrastructure projects
Fabio Ferreira Kujawski
Mauricio Jayme e Silva
June 17, 2010
2. Regulation in favor of private investments
in Brazilian infrastructure projects
I. Why do foreign investors are targeting the
Brazilian Economy?
I. In the coming years, it is expected that
the Brazilian economy records an yearly
average growth rate estimated at 5.5%
II. Inflation Index at around 4.5%
III. Brazilian nominal and real interest rates
reached their lowest historical levels in
2009
Source: Brazilian Economy Outlook, 5th Edition, March, 2010, Brazilian Ministry of Finance
3. Regulation in favor of private investments
in Brazilian infrastructure projects
II. Remarkable
Investment
Opportunities in
Infrastructure
a) FIFA 2014 World
Cup Brazil
b) XXXI Olympic
Summer Games in
Rio de Janeiro, 2016
4. Regulation in favor of private investments
in Brazilian infrastructure projects
III. Preferred Credit Lines from the Brazilian
Government in the following sectors:
I. Ports and Airports;
II. High-Speed Train;
III. Energy;
IV. Logistics;
V. Urban transportation.
5. Regulation in favor of private investments
in Brazilian infrastructure projects
2007-2010 INVESTMENT FORECAST FOR BRAZILIAN
LOGISTICAL INFRASTRUCTURE
Source: http://www.brasil.gov.br/pac/investimentos/por-acoes/logistica/previsao-de-
investimento-em-infraestrutura-logistica-2007-2010/view
6. Regulation in favor of private investments
in Brazilian infrastructure projects
2010 OIL, GAS AND RENEWABLE FUELS
- ACTIVITIES AND GOALS -
Source: http://www.brasil.gov.br/pac/investimentos/por-acoes/energetica/acoes-em-petroleo-gas-
natural-e-combustiveis-renovaveis-meta-2010/view
7. Regulation in favor of private investments
in Brazilian infrastructure projects
2010 URBAN AND SOCIAL INFRASTRUCTURE
ASSISTANCE FORECAST
Source: http://www.brasil.gov.br/pac/investimentos/por-acoes/social-urbana/previsao-de-
atendimento-em-infraestrutura-social-e-urbana-meta-2010/view
8. Regulation in favor of private investments
in Brazilian infrastructure projects
Ideal Regulatory Regime
for Attracting Investment
in Infrastructure Projects
1. Coherency
2. Independence
3. Accountability
4. Transparency
5. Predictability
6. Financial and Human
Resources Capability
9. Regulation in favor of private investments
in Brazilian infrastructure projects
1. Coherency: regulation standards shall be
consistent with the legal framework that governs
each sector of economy.
2. Independence: political issues shall not
influence regulators activities.
3. Accountability: the regulator independency
shall be directly related to its obligation of making
its activity accountable.
10. Regulation in favor of private investments
in Brazilian infrastructure projects
4. Transparency: all procedures adopted by the
regulator as well as its decision shall be published
and available for the general public.
5. Predictability: Same facts under the same
jurisdiction shall be decided in the same way.
6. Financial and Human Resources
Capability: human and financial resources shall be
provided to regulatory agencies so they can
establish and execute their policies and accomplish
their goals.
11. Regulation in favor of private investments
in Brazilian infrastructure projects
IV. Does Brazil follow these Ideal Regulatory
Standards?
I. Coherency:
II. Independence:
III. Accountability:
IV. Transparency:
V. Predictability:
VI. Financial and Human Resources Capability:
12. Regulation in favor of private investments
in Brazilian infrastructure projects
V. Initiatives to improve the regulatory activities in
Brazil:
I. Improvement of Regulatory Management Public
Program: Issued by Decree nº 6,062/05, this
Program intends to:
I. Develop the Brazilian Regulatory System;
II. Improve regulator’s capacity to create and
evaluate public policies;
III. Facilitate the coordination and the strategic
alignment between public policies and regulatory
activities;
IV. Strengthen the Brazilian Regulatory Agencies'
autonomy and transparency.
13. Regulation in favor of private investments
in Brazilian infrastructure projects
V. Initiatives to dismantle the stability of the regulatory
model in Brazil:
II. Bill Nº 3337/2004:
I. Establishes the legal framework of Brazilian
Regulatory Agencies
II. Threats to the independence of the Brazilian
Regulatory Agencies:
1. Public Hearings for all relevant decisions that may
impact the market.
2. Management Contract between Agencies and the
respective Ministries.
3. Transfer back of legislative powers and
competition related decisions to the Ministries
14. FABIO FERREIRA KUJAWSKI
kujawski@bkbg.com.br
MAURICIO JAYME SILVA
msilva@bkbg.com.br
Rua Dr. Eduardo de Souza Aranha, 387, 15º andar
Phone (55) (11) 38970350
São Paulo/Brazil
