The experience, challenge and potential of enhancing PPP in low-carbon urban infrastructure

Tokyo, October 14, 2012

Julio Ramundo Managing Director

Brazilian environmental landscape

Source: ANA, MMA, MME, Anfavea and ABAL Produced by: Ministry of Finance

2

Sustainable development as a key principle

3

BNDES Green Development BNDES’ Disbursements to the Green Economy (Amounts in US$ million)

Sectors

2008

Hydroelectric plants (above 30 MW)

2,138

4,782

3,547

2,972

1,899

3,234

3,234

3,445

4,031

1,679

831 343 455 139 128 67

1,125 803 891 92 177 221

819 387 1,059 312 348 265

921 529 845 273 354 189

564 491 495 121 216 131

-

-

81

351

292

61 49 39 7,397 11,373 10,301

94 10,557

Renewable Energy & Energy Efficiency Cargo Transport Public Transport Water and Sewage Management Solid Waste Management Forests Agricultural Improvements Adaptation to Climate Change and Disaster Risk Management Others Green Economy - Total

2009

2010

2011

2012 (Jan-Aug)

40 5,928 4

R$/US$= 1.75

Brazilian Infrastructure Outlook Diagnosis

Needs

• Gap between

investments in infrastructure and the desired growth

• Flow of projects for approval

• The quality of

projects is an obstacle to investment in infrastructure

• There are no

restrictions on private resources for investment in infrastructure

• Agility • Well designed projects

Mechanisms for development of projects

 Project Structuring Fund (FEP)  Brazil PSP Development Program  Brazilian Project Structuring Company (EBP)

Ongoing Projects Airports

• Concession of São Gonçalo do Amarante Airport (RN) • Concession of Guarulhos (SP), Viracopos (SP) and Brasília (DF) airports

Health

• • • •

Education

Basic Health Units in Belo Horizonte (MG) Image Diagnostics Center (BA) Suburban Hospital in Bahia (BA) Metropolitan Hospital in Belo Horizonte (MG)

• Elementary and Middle School Education in Belo Horizonte (MG)

Sanitation / waste treatment

• Sanitation in Serra (ES) • COPASA – Water treatment in Metropolitan Region of Belo Horizonte (MG) • Solid waste incinerator in São José dos Campos (SP)

Public Transport

• Parking Lots in Belo Horizonte (MG) and São Paulo (SP)

Highways

• BR - 040 (DF/MG); BR - 116 (BA/MG to MG/RJ); 4th Stage of Highway Concessions; BR -101 (RJ-ES to BA); BR-093 (BA) ; BR-116/324 (BA)

Railways Other Projects

• High-speed Train linking Campinas (SP) to Rio de Janeiro (RJ)

• Mineirão stadium in Belo Horizonte (MG) • Shopping Circuit in São Paulo (SP) • Forest Concessions – Itaituba I e II (PA)

The relevance of urban infrastructure investments in Brazil

Current Conditions of Urban Mobility  Large automobile fleet (individual transportation) and traffic jams (150 km a day in São Paulo).

 Mobility becomes expensive in terms of time and labor productivity: less than 43% of workers take less than 30 minutes commuting.  High emission of CO2 and other gases  People do not trust public transport:  Users of public transport as % of workers commuting:  São Paulo: 36%  Barcelona: 70%

Guidelines for Urban Mobility Polices  Encouraging the use of public transport instead of individual transport. Reducing emissions per passenger and the overload of road infrastructure;

 Incentives to use renewable energy sources, less polluting technologies and rational systems. Raising the system’s efficiency, reducing emissions per passenger and local pollution;

 Encouraging the use of nonmotorized transport (bicycle, walking, etc.) instead of motorized transport. Reducing total emissions per passenger and making urban space more friendly.

Financing Urban Transport Projects in Brazil

Investments

Financial Logic of Urban Mobility in Brazil

 Investment shared between the public and private sectors:

 Infrastructure: public sector  Rolling stock and operation: private and/or public sector

Technological Innovation and Environment 

 

New “Climate Fund”: Differentiation of financial conditions to encourage the best technological solutions: the choice of electrical traction as a parameter. Electric buses, hybrid buses, biofuel, cleaner diesel (Proconve rule); Reduction of local and global emissions;

Brazil’s Pipeline: Transport Projects in Big Cities

Project/City

Investment R$ Billion

Fortaleza Metro

3,3

Belo Horinzonte Metro

3,0

•R$ 32 Billion in investments

Curitiba Metro

2,2

•200 km in rail tracks

Rio VLT

2,4

•1060 rolling stock passanger cars

Sao Gonçalo-Niteroi Metro

1,7

•53 MM people will benefit from investments

Maceio VLT

0,3

S Bernardo-Sao Paulo Monorail

2,8

"PAC Mobilidade" for Big Cities:

NOTE: Examples do not account for the total ammount of the Program.