Howto Legal Aspects

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How to understand LEGAL ASPECTS on doing INFRASTRUCTURE BUSINESS in Brazil

American Chamber o Commerce or Brazil AMCHAMInternational Aairs Department

Brazil, 2010


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INFRASTRUCTURE

ACKNOWL

EDGMENTS

The timi coud ot be moe aoabe to auch How to understand legal aspects on

doing inrastructure business in Brazil: a isi ecoom, iestos om a oe thewod comi to Bazi ad seea aoucemets o ew iastuctue wos so

ecessa to esue Bazis sustaiabe o-tem owth. I act, the cout ies a

upecedeted momet o its deeopmet. Suouded b hue iestmet pomises

such as the pe-sat oi ae, the 2014 Wod Cup ad the 2016 Ompics, Bazi attacts

the wods attetio to itse. But the hihe the moutai, the hade its cimbi. This

is wh it is a eat peasue to et toethe with the Ameica Chambe o Commece o

this etue. Thee ae so ma impotat questios to be appoached, so ma paesto wo with ad seea chaees to be oecome. Ad this is ou pupose o oei

to ou this oume: to mae the wa a itte smoothe ad to eede bette busiess

oppotuities o the iastuctue eated ieds.

Gabriel Rico, Executie Diecto AMCHAM Bazi

Antonio Corra Meyer, Pate Machado, Mee, Sedacz e Opice Adoados

The Ameica Chambe o Commece o Bazi, bei the aest Amcham outside the

Uited States is costat sei its membes b buidi bides o Baziia busiesses

wodwide. Ou oei iestmet attactio eots hae aso bee a e eadi poit o

Amcham. The How To Seies is pat o this iitiatie; with the suppot o some o ou copo-

ate membes we ae putti toethe stateic iomatio o the most aious aspects o

doi busiess i Bazi. Oe the ast ea the Baziia ecoom has cea demostated

a outstadi ecoomic peomace. The couts busiess eiomet as we as o-

ei iestmet umbes ae aso e positie. The Iteatioa Moeta Fud estimates

that cisis apat; the Baziia ecoom shoud ow o a 3.5% basis. It is ow moe tha

ee, a stateic time o busiesses oppotuities i Bazi, we wecome ou ad hope that

the iomatio ou ae about to ead sees ou best.


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How to understand LEGAL ASPECTS on doing INFRASTRUCTURE BUSINESS in Brazil


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INFRASTRUCTURE

CONTENTS

OvErvIEW .......................................................................................................................6

rEgUlATOry FrAMEWOrkS .........................................................................................7

PrIvATE InvESTMEnT AnD PUBlIC InCEnTIvES PUBlIC-PrIvATE PArTnErSHIPS ..23

InFrASTrUCTUrE FInAnCIng ....................................................................................25

WOrlD CUP AnD THE OlyMPIC gAMES ....................................................................31

ABOUT OUr SPOnSOr ................................................................................................35


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How to understand LEGAL ASPECTS on doing INFRASTRUCTURE BUSINESS in Brazil6

OVERVIEW

Bazi is cuet expeieci a majo eap i the

iastuctue busiess sice the 1970s. I 2009, US$

64 biio wee iested i iastuctue pojects o-

cated i dieet aeas o the cout ad this umbe

is oesee to doube b 2011. Withi the ext 10

eas, tota iestmets i the iastuctue secto ae

expected to each the expessie amout o US$ 1 ti-io1 ad Bazi ma become the outh biest co-

stuctio site i the wod. The histoica shotae o

iastuctue iestmets i Bazi oe the ast eas

is i couse o chae. Piate capita is moe tha

wecome. It is ecessa.

The ee secto is deemed to be oe o the most

adaced i Bazi ad is cuet dawi a ot o

attetio sice its deeopmet is essetia to suppot

ecoomic owth. Athouh the secto has aead

eceied majo pubic ad piate iestmets oe

the ast eas, thee ae oppotuities o uthe poj-

ects, especia those eated to the cea ee i-

dust, such as ethao, wid powe pojects ad e-ewabe ee souces i eea.

The taspotatio secto is aso o the top o the ist o

Baziia oemeta pioities. new pots, oad ad

1 Accodi to lCA Cosutoia, as made aaiabe i re-

ista Exame no. 966, Editoa Abi, dated Api 21, 2010,pae 27.

aioads ae bei pojected ad buit to ehace

Baziia oistics aciities, icudi the ambitious

poject o the costuctio o a hih speed tai

which sha coect two o the aest cities i the

cout (rio de Jaeio ad So Pauo). These iest-

mets ae hih impotat, but the ae o the be-

ii whe compaed to Bazis eed ad pote-

tia o iastuctue.

Futhemoe, the saitatio ad aipot sectos i Ba-

zi ae i die eed o deeopmet, as the ae e

much behid schedue i compaiso with itea-

tioa stadads ad othe iastuctue sectos.

The Baziia oemet has aso tae a stad to

pomote owth ad deeopmet thouh iest-

met ad ecoomic poicies bouht b its gowth

Acceeatio Poam (Programa de Acelerao do

Crescimento PAC). This iitiatie is expected to

cosideab icease the umbe o pubic coces-

sios ad pubic-piate pateships (PPP) ad,theeoe, aow the paticipatio o oei ad a-

tioa piate paes i a ae ae o eeat i-

astuctue pojects.

The 2014 FIFA Wod Cup ad the 2016 Ompic

games aso bi oppotuities o iesti i the

iastuctue busiess. These eets peset a eat

chaee as we as a uique oppotuit o


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INFRASTRUCTURE 7

REGULATORY FRAMEWORKS

impoi the eea iastuctue aciities i the

mai cities, icudi stadiums, hotes ad sub-

was. The Baziia natioa Deeopmet Ba

(Banco Nacional de Desenvolvimento - BnDES)

is expected to be oe o the mai aci souces

o the Wod Cup.

Ou aasis ecompasses the oowi sectos: (i)

Eectic Ee; (ii) Hihwas; (iii) Pots; (i) Mii;

() Aiatio; (i) Oi ad gas; (ii) Maitime law; ad

(iii) Pubic-Piate Pateships. We hae aso i-

cuded a ew exta topics o Iastuctue Fiaci,

the Wod Cup ad the Ompic games.

Electric Energy Industry

The Baziia powe idust icudes the actiities o

eeatio, tasmissio distibutio, ad tadi o

ee. The eectic powe idust is cuet eu-

ated b law no. 10,848/04. The mai aspects ito-

duced b this law wee the ceatio o two powe

tadi eiomets: (i) a euated cotacti ma-

et, ad (ii) a ee cotacti maet; the itoduc-

tio o estictios o distibutio compaies actii-

ties to esue that the opeate excusie i pubic

utiit distibutio seices; the equiemet that dis-

tibutio compaies puchase eecticit thouh o

tem eiabe cotacts suciet to meet 100% o

thei demads.

AgenciesAndgovernmentAl Authorities

The Baziia eecticit amewo cotempates the

oowi oemeta bodies ad aecies: (a) the

Miist o Mies ad Ee (Ministrio de Minas e

Energia - MME), which acts o beha o the Bazi-

ia oemet ad sets oth the mai poicies ad

euatios o the eecticit idust; (b) the Bazi-

ia Eecticit reuato Aec (Agncia Nacional

de Energia Eltrica - AnEEl) that is esposibe o

the euatio o the Baziia eectic secto, the im-

positio o peaties ad the issuace o the eua-

to amewo ude MMEs poicies; (c) the natio-

a Powe Sstem Opeato (Operador Nacional do

Sistema - OnS), that is esposibe o the coodi-

atio ad opeatio o the Baziia itecoected

tasmissio id, the whoe tasmissio ad e-


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eatio cetaized dispatch; ad (d) the Whoesae

Ee Commeciaizatio Chambe (Cmara de Co-

mercializao de Energia Eltrica - CCEE) that is

esposibe o (i) eistei the eeat data eated

to a powe puchase aeemets; (ii) accouti o

ad oaizi the saes o eecticit i the spot

maet; (iii) cai out eectic powe auctios ithe euated cotacti maet, ad (i) imposi

peaties o the ac o phsica o cotactua ua-

atees i compiace with eecticit sae obiatios

ude AnEEls ues.

Power industry Activities regulAtedAnd Free contrActing mArkets

The puchases ad saes o eecticit ae caied out

i two dieet maet semets: (i) the euated

cotacti maet, whee distibutio compaies

ae obied to acquie the eecticit equied to meet

100% o the expected demad o the oowi 5

eas i thei cocessio aeas thouh pubic auc-tios; ad (ii) the ee cotacti maet, a ee dea-

i eiomet whee eeatos tade thei outputs

with sees ad ee cosumes.

regulAted contrActing mArket

I the euated cotacti maet, distibutio com-

paies puchase powe to meet thei pojected supp

eeds o distibutio to thei captie cosumes, as

the distibutio compaies ca puchase powe om

eeatos i auctios coodiated b AnEEl ad de-poed b CCEE. Aso, the powe puchases ae ee-

a caied out ude two tpes o biatea cotacts:

(i) output cotacts, used b hdoeectic pats ad

(ii) capacit cotacts, used b themoeectic powe

pats (icudi co-eeatio uits).

The euated cotacti maet uideies dee

how distibutio compaies must comp with the

obiatio to meet a maet demads, i paticua

thouh powe auctios. The MME is esposibe o

dei the oume o eecticit to be puchased i

the euated cotacti maet, as we as a ist o

the eeatio pojects authoized to paticipate i

the auctios i each ea.

Power Auctionsunderthe regulAtedcontrActing environment

Thee ae eea six tpes o auctios (i) A-3 (to co-

tact powe output o capacit to be deieed 3 eas

ahead o the auctio ea); (ii) A-5 (to cotact powe

output o capacit to be deieed 5 eas ahead o the


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INFRASTRUCTURE 9

auctio ea); (iii) eewabe souces auctios (auc-

tios caied out to cotact powe eeated excu-

sie om ateatie souces o powe); (i) esee

ee auctios; () A-1(to cotact powe output o

capacit to be deieed 1 ea ahead the auctio

ea); ad (i) adjustmet auctios.

recet, the Fedea goemet is ati bee-

ts ad iceties to stimuate the deeopmet o

ateatie eecticit souces, such as wid ad bio-

mass pojects ad Sma Hdoeectic Pojects -

SHP2, i ode to diesi the atioa ee matix

ad assue the aua cosumptio demad i Ba-

zi. I additio to that, MME is cotiua pomot-

i auctios o the cotacti o ee poduced

om eewabe souces.

energy regulAtory chArges

Thee ae dieet chaes appicabe to the distibu-

tio, tasmissio ad eeatio actiities, such as

the (i) goba reesa resee - rgr, (ii) Pamet o

the Use o Pubic Assets, (iii) Fue Cosumptio Ac-

cout, (i) Eecticit Utiit Seices Ispectio Fee,

2 Accodi to the AnEEls resoutio 652, dated De-

cembe, 2003, SHP sha be deed as a hdo eeati

uit, meat o idepedet poductio o se-poductio,

with tota potec betwee 1,000 W to 30,000 W ad

eseoi aea ot bie tha 3 km (squae iomete).

() reseach ad Deeopmet ees (r&D) ad (i)

Tais ad Chaes o the Use o Distibutio ad

Tasmissio Sstems.

B meas o those chaes the hodes o coces-

sios, icesees ad authoizatios ae equied to

mae moth cotibutios to suppot ad po-

mote (i) the competitieess i the powe poduced

om ateatie souces; (ii) the uiesa supp o

eecticit seices; ad (iii) diesicatio o tech-

oo, amo othes.

Highway Concessions

FederAl highwAy concessions

The Baziia hihwa cocessios poam stated

i the mid ieties, ate the eactmet o law no.

8,666/93, which sets oth the eea ues o the

biddi pocesses ad eaemets betwee pubic

admiistatio ad piate iitiatie ad law 8,987/95which oes cocessios o pubic seices.

Based o these aws, dui 1993 ad 1994, the Fed-

ea goemet, epeseted b the natioa road-

wa Depatmet (Departamento Nacional de Estra-

das e Rodagem DnEr), cuet epaced bthe

natioa Taspotatio Iastuctue Depatmet

(Departamento Nacional de Inra-Estrutura de Trans-


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portes DnIT), caied out a pubic bid cosisti o

ou edea hihwas ad oe bide, icudi rio-

nitei Bide ad the Pesidete Duta Hihwa, which

coects the cities o So Pauo ad rio de Jaeio.

Foowi these iitia steps, law no. 9,277/96 au-

thoized the Fedea goemet to deeate, b

meas o a cocessio aeemet, the maaemet

ad opeatio o othe Fedea hihwas to the States,

Muicipaities ad to the Fedea Distict.

resPonsible FederAl AgenciesAnd governmentAl Authorities

I this cotext, law no. 10,233/01 iitiated the po-

cess o impoi the Baziia taspotatio ss-

tem, b ceati the oowi euato authoities:

(A) the natioa Taspotatio Poicies Iteatio

Couci (Conselho Nacional de Integrao de Polti-

cas de Transporte COnIT), a pubic etit e-

sposibe o estabishi the atioa iteatio o

the dieet oms o taspotatio o peope ad

oods i accodace with (i) atioa, oca ad u-

ba deeopmet poicies; (ii) ues eated to ei-

omet ad saet o popuatio; ad (iii) uide-

ies o phsica iteatio ad othes eatues

eati the hihwas sstems; (B) the natioa

goud Taspotatio Aec (Agncia Nacional

dos Transportes Terrestres AnTT), a edea eu-

ato aec esposibe, o the impemetatio o

COnIT poicies, with authoit to euate ad su-

peise the edei o hihwa taspotatio se-

ices, as we as to execute ad maae the coces-

sio cotacts withi its aea o peomace; ad

(C) DnIT, a Fedea euato aec esposibe

o supeisi the opeatio, maiteace, estoa-tio o epacemet, capacit coomit ad ex-

pasio o the oad sstem b meas o buidi

ew was ad temias.

stAte highwAy concessions

Withi each membe State, euato aecies weeceated i ode to euate ad supeise the co-

cessios subject to the juisdictio o the States; those

cocessios basica ioed hihwas buit to

coect poits o iteest withi a State, but excud-

i Itestate hihwas, sice these ae ude the ju-

isdictio o the Fedea goemet, but ote that

some Fedea hihwas hae bee deeated to theStates, which ma the at cocessios o thei

opeatio to piate paties.

As peious metioed, with the eactmet o law

no. 9,277/96, the States eceied authoizatio om

the Fedea goemet to at ad supeise spe-

cic amets o Fedea hihwas ocated withi

the State to the piate iitiatie.


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INFRASTRUCTURE 11

stAte Agencies

I rio de Jaeio, the oemet ceated theAgn-

cia Reguladora de Servios Pblicos concedidos do

Estado do Rio de Janeiro ASEP/rJ, i 1997. I

2002, the goemet o So Pauo ceated the

Agncia Reguladora de Servios Pblicos Delegadosde Transporte do Estado de So Paulo ArTESP.

ArTESP is a euato aec esposibe o the

euatio ad supeisio o pubic taspotatio

seices peomed b piate etities, withi the

scope o the Taspotatio State Seceta (Secretaria

de Estado dos Transportes). This Seceta is espo-

sibe o the coodiatio o the States meas o

taspotatio ad o the oaizatio ad opeatio

o the taspotatio sstems owed b the State.

To date, aious States, icudi Bahia, Peam-

buco, Espito Sato, Mias geais, Paa ad

So Pauo hae hihwas opeated ad maitaied

b piate etities. The cocessios ae euated

i each State b the espectie taspotatio de-

patmet o euato aec.

municiPAl highwAy concessions

Muicipa hihwa cocessios ae eea moe

imited tha those cocessios which ae compised

b the Fedea ad State cocessio poams, oce

the ae esticted to amets ocated withi the

sphee o the Muicipait.

neetheess, Muicipa oemets ma aso

choose to piatize thei hihwas (e. liha Amaea

i the Cit o rio de Jaeio). The Muicipait is, i

this case, esposibe o the oaizatio ad coo-

diatio o the biddi pocedue, besides tai a

ecessa measues o its impemetatio ad o-

maizatio, without ioi the AnTT o the ae-

c o the espectie State.

PortsUp to the ea ieties, pots i Bazi wee opeated

b the Fedea goemet, thouh its oemet-

cotoed etit, Potobs Empesa Basieia de Po-

tos S.A., ad its subsidia, the so-caed Companhias

Docas, ceated to be i chae o cocetati ad

cai out a pot actiities i Bazi, as a oe-

meta moopo.

As a esut o a cisis expeieced i the eihties, o-

emeta moopoies oe iastuctue actiities,

icudi i the pot secto, had to be adua eased

so that the piate secto coud cotibute with the

equied iestmets. I the pot idust, the um-

be o piate pots adua iceased, o oe


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mee associated with the eed o specic iastuc-

tue but aso due to the iabiit o the oemet to

poide adequate pot capacit ad seices.

leAse AgreementsAnd AuthorizAtions

I ode to euate this ew eait ad to attact

uthe piate iestmets ude a moe suitabe

ad stabe ea amewo, law no. 8,630/93 was

eacted, assui to a piate pat the iht to

costuct, eom, expad, impoe, ease ad ope-

ate pot temias, b meas o: (i) ease aeemets

(Contrato de Arrendamento), to be eteed ito with

the Fedea goemet o with a oemet-ap-

poited cocessioaie, ate a madato pubic

biddi pocedue, whe the pot temia is ocated

withi a oaized pot aea; o (ii) a authoizatio

om the competet authoit cuet the natioa

Wate Taspotatio Aec (Agncia Nacional de

Transportes Aquavirios) AnTAQ, with espect to

piate temias ocated outside the oaized pot

aea o withi the oaized pot aea, that is the pot

temia aea, to the extet that the iteested pat

hods ea ihts to use the eeat ad.

PrivAte terminAls

law no. 8,630 made the distictio betwee ex-

cusie-use piate temias (terminais privativos

de uso exclusivo) iteded o o hadi o

cao owed b the opeato itse ad mixed-use

piate temias (terminais privativos de uso misto)

iteded o hadi o thid pat cao as we

as ow cao.

regulAtory Agency

law no. 10,233, o 2001, ceated AnTAQ ad set

oth a ew ea amewo o taspotatio actii-

ties i Bazi, itoduci cetai adjustmets spe-

cica appicabe to the pot secto, as euated b

law no. 8,630, which oetheess emaied i u

oce, subject to the specic adjustmets impemet-

ed b law no. 10,233.

To euate ad detai the equiemets o ati o

a piate temia authoizatio (o both excusie-usead mixed-use temias), AnTAQ eacted resoutio

no. 517, o Octobe 18, 2005, which was epaced b

AnTAQ resoutio no. 1,660, o Api 8, 2010.


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INFRASTRUCTURE 13

decree no. 6,620 And AntAQresolution no. 1,660

As a esut o ew poicies, ude Decee no. 6,620,

authoizatios o the expoitatio o mixed-use pi-

ate temias became moe imited, due to estic-

tios imposed to the hadi o thid pat cao,

which ma o be haded b the authoizatio hod-

e as a subsidia ad occasioa actiit. Additioa,

the thid pat cao must be o the same atue ad

hae the same moi ad stoae chaacteistics o

the authoizatio hodes ow cao.

new issued AnTAQ resoutio no. 1,660 aso

poides o moe stiet citeia o ow caoequiemets.

Mining

A miea esouces ocated i the atioa teito

costitute oweship detached om the suace ad

beo to the Baziia Uio, accodi to the Bazi-ia Costitutio. Mii compaies icopoated u-

de Baziia aw, headquateed ad maaed i Ba-

zi ma etai the oweship o cetai miea

poducts esuti om thei eots towads poduc-

tio o miea esouces ate bei du authoized

b the esposibe authoities. A paticipatio i the

esuts o the mii actiities is aso coeed to thesuace aeas adowe o possesso.

governmentAl Authorities

The esposibe authoities etited b aw to ue o

mii specic mattes ae (i) the Miist o Mies

ad Ee (Ministrio de Minas e Energia - MME),

which is esposibe o coodiati ad omuat-

i the Baziia pubic poicies with espect to mi-

ea esouces ad ee poductio ad (ii) the

natioa Depatmet o Miea Poductio (Depar-

tamento Nacional de Produo Mineral- DnPM),

a etit empoweed to oow-up, aaze ad dis-

semiate the peomace o the Baziia ad ite-

atioa miea ecoom, amo othe actios ac-

codi to the mii eisatio.

The Baziia Mii Code (Decee-law no. 227/67,

as ameded) sets out the ea amewo appicabe

o expoitatio ad tade o miea esouces. Pes-

et, mii actiities ma o be caied out ate

obtaii due MME/DnPMs appoa (e.. explora-

tion permit, mining concession, licensing3, mine

3In the licensing regime, it is possible to perorm mining

activities o specifc minerals, upon registry and licensing

beore DNPM, without the previous perormance o ex-

ploitation/research works in the area. These specifc min-

erals (such as sand or civil construction and clay, among

others) may also be exploited by the standard regime omining concession.


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maniest4, as appicabe)5.

exPlorAtion PermitAnd mining concessions

The DnPM ats a exploration permit (o wo e-

ated to the deitio o the esouces, eauatio

ad detemiatio o the poductio easibiit) to a

iteested pat o a maximum peiod o 3 eas,

eewabe o 1 to 3 eas upo due justicatio.

Upo competio o the eooica expoatio

wos at the site, the iteested pat sha submit a

4 The mine maniest is a tite that epesets domai oe the

actua mie ad ot o oe the mii iht. The mine

maniest is a eime set oth b the eisatio that peceded

the Baziia Mii Code. As a esut, mies ated ude

a mine maniest regime ae subject to a sca ad tax e-

isatio as the mii cocessio but ot to the peat o

oeitue, appicabe to mii cocessios o. As a ea

estate popet, a mie ude the mie maiest eime ma

be sod, motaed, eased o taseed ude the tems othe Baziia Cii Code o 2002.

5 It is impotat to poit out the dieeces omining rights

and mining titles: (i) mining right is ee iht eated to

expoitatio, mii easemets ad ee iht eisteed

with the DnPM; ad (ii) mining title is the istumet at-

ed b the competet authoit du pubished i the O-

cia gazette i ode to pemit the expoitatio o a cetai

aea, such as mii cocessios, expoatio pemits ad

mie maiests.

a expoatio epot to the DnPMs eauatio

ad appoa. Shoud the appoed eooica ex-

poatio epot eea the existece o ecoomica

expoitabe miea deposits, the iteested pat

sha hae 1 ea, as om the DnPMs appoa, to

equie a mining concession.

The eeat mining concession request sha be sup-

poted b a economic exploitation plan (Plano de

Aproveitamento Econmico PAE), a documet

iomi the DnPM how the pat iteds to ex-

poit the mie. The PAE sha be subject to the

DnPMs eiew ad appoa. Oce the mining con-

cession is ated, its titehode sha hae the iht

to expoit the mie i accodace with the PAE. The

titehode sha uthe issue a ea expoitatio e-

pot (Relatrio Anual de Lavra) b Mach 15th.

Foeitue o a mining concession ma be appied i

ou exteme situatios: (i) poe eidece o aba-

domet o shut dow o mii actiities; (ii) ecu-

et iiemet o the stati ad e-stati dateso mii actiities, despite peious sactios

(wais o es); (iii) ecuet eusa to comp

with the DnPM ispectios istuctios; ad (i)

abusie mii o extactio o a miea sub-

stace ot icuded i the mii cocessio, ide-

pedet o admoishmet o e. The mii co-

cessio ma aso be eoed at the Fedea Uios


15/40

INFRASTRUCTURE 15

discetio i case ecoomica auabe ucea

miea esees with a hihe ecoomic aue tha

that o the miea substace i the mii coces-

sio ae oud. I this case, the titehode is esued

ai compesatio o the iestmet.

cFemStates, Muicipaities ad the Fedea Uio ae e-

tited to a shae o the esuts o expoitatio o mi-

ea esouces i thei espectie teito b meas

o a acia compesatio caed compensao

fnanceira pela explorao de recursos minerais

(CFEM). The CFEM assessabe basis is the et e-

eue6 esuti om the sae o the miea poduct

(tota saes ess taxatio, taspotatio ad isu-

ace expeses) ate the ast stae o the coi,

ceai o peetizi pocess, as appicabe. The

appicabe ate aies accodi to the miea

poduct, as deed b the DnPM.

6 Accodi to the DnPM, o CFEM cacuatio puposes,

the et eeue is the aue o the sae o the miea

poduct, deducted the taxes (ICMS, PIS, COFInS), which

eies o the commeciaizatio, as we as the taspota-

tio ad isuace costs (oiia wodi: Etede-se

po atuameto quido o ao da eda do poduto mi-

ea, deduzido-se os tibutos (ICMS, PIS, COFInS), que

icidem a comeciaizao, como tambm as despesas

com taspote e seuo).

leAseAnd AssignmentoFthe mining rights

Mii ihts ma be taseed to thid paties, po-

ided that (i) the taseee us the quaicatio

equiemets estabished b the DnPM, ad (ii) thee

is pio coset b the DnPM. It is woth oti that

exploration permits ma be taseed wheeas ex-

ploration permitrequests ma ot.

Aviation

Baziia cii aiatio is euated b Baziia aw

ad iteatioa pubic ad piate aw. The etit

esposibe o euatio ad supeisio o thecii aiatio secto is the natioa Cii Aiatio

Aec (Agncia Nacional de Aviao Civil -

AnAC), diect subodiated to the Baziia

Miist o Deese.

The expoitatio o ai aiatio, aispace ad ai-

pot iastuctue actiities, which ma be deeated

ude cocessio, pemit o authoizatio eimes,

is withi the Fedea goemets powes accodi

to sectio 21, XII o the Baziia Costitutio.

The Baziia Aeoautic Code (law no. 7,565/86,

the Cdigo Brasileiro de Aeronutica - CBA) eu-

ates actiities eated to ai aiatio peomed b

the piate secto (ude pemit, cocessio o au-


16/40


thoizatio eimes), as we as actiities eated to

the aipot iastuctue secto.

Futhemoe, Bazi has atied cetai iteatioa

teaties eated to the aiatio secto, such as the

1944 Chicao, 1948 geea ad the 1962 rome

Coetios. As o this date, Bazi has ot et ati-

ed the Cape Tow Coetio7.

AnAc

As the euato aec esposibe o the aiatio

secto i Bazi, AnAC cocetates ma esposi-

biities, such as: (i) ati cocessios ad authoi-

zatios to the expoitatio o pubic ai seices; (ii)euati fiht schedues i aipots; (iii) maai

the Baziia Aeoautic reist (rAB); (i) epe-

seti the Baziia oemet i coetios ad

iteatioa teaties eated to aiatio; ad () issu-

i esoutios eadi cii aiatio i Bazi.

7 The Cape Tow Coetio is a iteatioa teat which

iteds to stadadize tasactios ioi moabe pop-

et, paticua aicat ad aicat eies.

registrAtionoFAircrAFt

The rAB is the Baziia aicat eiste ad is euated

b the CBA ad esoutios issued b AnAC. It is e-

sposibe o the issuace o ceticates o eistatio,

aiwothiess ad atioait, the eistatio ad dee-

istatio o aicat ad eistatio o ies oe aicat

(motaes, ducia sae ad othe ecumbaces).

Eomet with the rAB ats the aicat Baziia

atioait ad ca o be peomed i the ame o

Baziia idiiduas o compaies o oei idiid-

uas with ea addess i Bazi. Aso, a poisioa

eistatio o the aicat ca be made i the ame o

the expoite, use o essee with the coset o theowe i case the aicats tite is hed b a oei

etit ad its opeatio is taseed to a Baziia e-

tit ude a ease aeemet o simia aaemet.

Such poisioa eistatio wi uthe ideti the

aicats owe. Baziia atioait ad eistatio

mas wi be caceed upo deeistatio o the

aicat, which equie the expess coset o the

owe ad o the beecia o a ie eisteed

with espect to the aicat.

INFRASTRUCTURE 1


17/40

INFRASTRUCTURE 17

The eisteed owe (o the eisteed opeato i di-

eet om the owe) wi be pimai esposibe

o cii iabiities iheet to the opeatio o rAB-

eisteed aicat, icudi thid pat iabiities.

Air services

Ai seices i Bazi ca be piate o pubic. Piate

ai seices ae those seices peomed without a

sot o emueatio o the excusie beet o the

opeato o the aicat. Pubic ai seices, o thei

tu, ae deed as ai taspotatio o passees,

cao o mai, eithe eua (schedued) o o-e-

ua, domestic o iteatioa, as we as othe spe-

ciaized ai seices as deed i the CBA.

reua pubic ai seices deped o cocessio b

AnAC. Cocessioaies ae eiibe i: (i) thei head

oces ae ocated i Bazi; (ii) at east 80% o thei

oti capita is hed b Baziias8; ad (iii) the ae

maaed excusie b Baziias.

Such estictios ae appicabe to compaies that

wi opeate domestic fihts i Bazi; the ae ot

appicabe to o Baziia compaies that wi ca

8 Bi o law no. 6,716/09 pupots to icease the oei

paticipatio i the oti capita to 49%. Such Bi o law is

udeoi eisatie poceedis to be oted b the Bazi-

ia coess.

out iteatioa eua pubic ai taspotatio. I

ode to opeate i Bazi, such compaies must be

desiated b the oemet o thei espectie

cout ad obtai authoizatio om the Baziia

oemet, thouh AnAC, to peom ad opeate

thei seices i Bazi.

no-eua pubic ai seices (such as ai-taxi se-

ices) aso equie the Fedea goemets authoi-

zatio ad ma be ated to Baziia compaies

that u the equiemets o eua pubic ai se-

ices outied aboe.

AirPort inFrAstructure

The Baziia oemet is esposibe o the ma-

aemet ad opeatio o Baziia aipots; such ac-

tiities ma be deeated to the piate secto b

meas o a cocessio o authoizatio. The Baziia

mai aipots ae cuet bei opeated b Iaeo,

a oemet compa ceated with the pupose o

buidi, maai ad opeati aipots i Bazi.

H t d t d LEGAL ASPECTS d i INFRASTRUCTURE BUSINESS i B il18


18/40


Oil and Gas

The oiia wodi o sectio 177, 1st paaaph

o the Baziia Fedea Costitutio cotempated

a moopoistic eime o the beet o the Fedea

Uio o the expoatio, poductio, ei, im-

pot, expot ad taspotatio o hdocabos.

Such amewo peeted the tase, assimet

o ati o cude oi ad atua as to a pi-

ate compaies. Petobas, a patia state owed

compa cotoed b the Fedea goemet

ad with shaes taded i the stoc maets, co-

ducted the moopoistic actiities o beha o the

Fedea goemet.

The euato beathouh that aowed majo i-

teatioa iestmet i the oi idust was the

eactmet o Costitutioa Amedmet no. 9 o

1995, which eased the oi ad as moopo i

Bazi. Two eas ate, law no. 9,478/97 (the Oi

ad gas law) was passed euati such amed-

met to the Costitutio. Oe o the majo mie-stoes o the oi ad as law was to set oth the

ati istumets (cocessio aeemets) ad

espectie biddi eime (biddi ouds b the

Agncia Nacional de Petrleo, Gs Natural e Bio-

combustveis AnP the AnP rouds). Such

ew ea amewo aowed piate-owed

compaies to ca out expoatio ad poductio

actiities ad ow ad dispose o hdocabos

oce extacted om the soi, athouh maitaii

the Fedea moopo oe hdocabos actiities.


The Oi & gas law aso eaaed the pubic autho-

ities i chae o euati ad ispecti hdoca-

bos actiities, mai the natioa Couci o Ee

Poic (Coseho nacioa de Potica Eetica

CnPE), a couci o miistes i chae o pai

ad coodiati the atioa ee poic, ad the

natioa Petoeum, natua gas ad Bioues Aec

- AnP, a euato bod o the Fedea goemet

ied to the Miist o Mies ad Ee.

AnPs e uctio is to euate the oi, atua

as ad bioues actiities i Bazi ad to impe-

met the poicies ued b CnPE. Amo AnPs

madate, the oowi oes ma be hihihted:

(i) to coduct biddi ouds ad cocessio

aeemets o the expoatio, deeopmet adpoductio o oi bocs; (ii) to euate oi ad

as taspotatio ad maeti actiities; ad

(iii) to esue the supp o ue to the atioa

maet ude cotiec coditios.

INFRASTRUCTURE 19


19/40

INFRASTRUCTURE 19

uPstreAmActivities

Both IOCs9 ad Petobas, the Baziia nOC10, ma

expoe ad poduce hdocabos b meas o e-

tei ito cocessio aeemets (as a esut o a

wie bid, o both oshoe ad oshoe bocs)

ude AnPs rouds. The biddi ouds hae tpi-

ca bee die b a combiatio o thee majo

citeia: (i) sii bous (upot pamet), (ii) mii-

mum wo poam commitmet ad (iii) oca co-

tet (pecetae o seices cotacted with etities

icopoated i Bazi).

As compesatio o the iht to expoe the bocs,

the cocessioaies sha pa cetai oemettaes (sii bous, oaties, specia paticipatios

ad ad occupatio ee) ad taxes.

Foowi the discoeies i 2007 o a majo custe

o oi ad as i the so-caed pe-sat aea ocated i

the oshoe Satos Basi (Pr-Sal), Pesidet luas

admiistatio et the eed o modii the up-steam ea eime i Bazi.

9 Iteatioa Oi Compaies, which, accodi to the Fed-

ea Costitutio ad the Oi & gas law, ma paticipate b

ceati compaies icopoated ude the aws o Bazi

(athouh the ca be who owed b oei etities).

10 natioa Oi Compa.

At the peset momet11, thee ae ou bis o aw

pe-appoed b the Baziia House o repeseta-

ties (Cmara dos Deputados) awaiti appoa

om the Baziia Seate (Senado Federal) ad u-

the sactio om the Pesidet. The poposed

amedmets, i appoed, woud (a) iset the po-

ductio shai eime as the ati istumet oPr-Salad stateic aeas, (b) ceate a ew who

state-owed compa i chae o epeseti the

iteest o the Fedea Uio i the poductio sha-

i cotacts, ad (c) appoe the capitaizatio o

Petobas, amo othe chaes.

downstreAm ActivitiesAnP is aso i chae o euati ad ispecti

dowsteam actiities. The atua as idust is aso

euated b ecet eacted law no.11, 909/09

(the gas law).

The gas law, which sti acs uthe euatio, sets

oth ues o the taspotatio o atua as thouhpipeies, deemed as pubic iteest actiities to be

caied out b Baziia etities ude a cocessio

eime, oowi a pubic biddi pocess caied

out b AnP. Exceptioa, whe associated with a

11 This sectio o the Doi Busiess repot was ast up-

dated o Ma 18, 2010.



20/40


iteatioa teat, the taspot o as thouh pipe-

ies sha be oeed b the authoizatio eime.

Pipeies cassied as as eacuatio pipeies sha

emai to be euated ude the upsteam ati

istumet eime, ad thus ae ot subject to ma-

dato thid pat access ad a specic as taspo-

tatio cocessio cotact. O the othe had, tas-

potatio pipeies sha aow thid pat access,

subject to ace peiods ad othe coditios set

oth ude the gas law.

Futhemoe, the gas law ees to othe actiities

euated b the AnP ad subject to authoizatio

eime, such as the impot, expot, stoae, pocess-i, teatmet, iqueactio, e-asicatio ad sae

o atua as.

Fia, it is eeat to ote that the Baziia Fedea

Costitutio ats the States the excusie iht to

expoit oca distibutio o piped atua as. I that

sese, States Authoities hae a impotat oe o

euati oca as distibutio actiities.

Admiralty Law (Maritime Law)Admiat aw (aso eeed to as maitime aw) is

oeed b spase eisatio ude Baziia aw.

noetheess, the secod pat o the Baziia Com-

mecia Code (BCC) euates the maitime tade o

oods b oce o Sectio 2,045 o the Baziia Ci-

i Code. law no. 9.432/97 euates maitime tas-

potatio mattes.

tyPesoF nAvigAtion

Accodi to Baziia law, thee ae e tpes o

aiatio, as oows: (i) maitime suppot (apoio

martimo), eated to the suppot o esses ad acii-

ties ocated i atioa teitoia wates ad ecoom-

ic zoes, used to peom mieas ad hdocabos

pospecti actiities; (ii) pot suppot (apoio por-

turio), eated to the suppot o esses ad pot a-

ciities ocated i the pot aea; (iii) cabotae (cabota-

gem); eated to the domestic aiatio betwee

pots o poits withi the Baziia teito; (i) ite-

a aiatio (navegao interior) eated to aia-

tio thouh the iad hihwas, eadess o bei

domestic o iteatioa oute; () ad o couse

aiatio (navegao de longo curso), eated to

aiatio betwee Baziia ad oeies pots.

INFRASTRUCTURE 21


21/40

INFRASTRUCTURE 21


Thee ae ou mai euato bodies which moi-

to ad supeise the Maitime Idust. The st oe

is the natioa Aec o Watewa Taspotatio

(Agncia Nacional de Transportes Aquavirios -

AnTAQ), ude the Miist o Taspotatio.

AnTAQs pupose is to euate, supeise ad i-

spect the actiities ied to seices eated to wa-

tewa taspotatio ad pot ad watewa ia-

stuctue expoatio.

Amost its oes is to at authoizatios aowi

compaies to opeate as a Baziia aiatio com-

pa. To obtai such authoizatio, oe must meetcetai ea, techica ad acia-ecoomic e-

quiemets estabished b AnTAQ, which a ac-

codi to the chose tpe o aiatio.

The secod ad thid bodies ae the Maitime Tibu-

a (Tribunal Martimo) ad the Captaic o Pots

(Capitania dos Portos). Both ae oemeta bodies

esposibe o maitime popet eistatio. The

esse acquies its atioait ad fa thouh its

eist. The maitime popet eistatio is eu-

ated b law no. 7,652/88, which estabishes the

equiemets o obtaii the eist.

The outh bod is the Diectoship o Pots ad Coasts

(Diretoria de Portos e Costas - DPC), a admiista-

tie diisio o the na Commad, which acts as a

compemeta euato bod aoside AnTAQ.

DPCs mai attibutio cosists o eaboati admi-

istatie ues caed noms o Maitime Authoit

(nOrMAM), which specica euate seea is-

sues eated to aiatio secuit uideies ad po-

ic. DPC is aso etited to ceate measues to deceasepoutio poduced b esses ad patoms.

mAritime registry

I ode to opeate a esse, oe eeds the maitime

eist, the esse opeato eist ad AnTAQs au-

thoizatio. Thee is aso oe additioa eist,

amed Specia Baziia reiste (rEB), which is

optioa. It is oeed b Decee no. 2,256/97 ad

it appies to Baziia esses o to oei esses

chateed b demise to Baziia aiatio compa-

ies. Its pupose is to eabe sca beets coce-

i costuctio, modeizatio ad epais, as we

as beets eated to isuace ad eisuace,

cew, ue pices ad woi aeemets.

chArters

readi esse chates, thee ae thee tpes o

chates i Bazi: (i) voae Chate, which eates to

tem o the chate asti o oe joue; (ii) Time

Chate Pat, whee the chates duatio asts a time



22/40


deed o the cotact; ad (iii) Chate B Demise,

whee the chatee has the iht o usi ad co-

toi the esse, o a set peiod, icudi the iht

to desiate the cew ad its commade, but hai

iabiities ude its opeatio.

As a eea ue, chates sha o be peomed b

Baziia compaies, with the usae o Baziia

ships (exceptio is made o the o couse tpe o

aiatio). noetheess, thee ae exceptios such

as a istumet ow as Cicuaizatio.

Cicuaizatio is a pocedue used whe a compa-

eeds a specic esse o a specic actiit. The

eea coditios to use a oei esse chatesae (i) the iexistece o uaaiabiit o a ade-

quate Baziia esse, (ii) pubic iteest, ad (iii)

chate o a maximum o 36 moths, whe substitut-

i a esse that is cuet ude costuctio i a

Baziia shipad, as o as the esse to be cha-

teed does ot supass the doube o the tota to-

ae o the esse ude costuctio. Fued suchcoditios, the Baziia compa sha, extaodi-

ai, chate a oei esse. Oce this pocess is

caied out, AnTAQ sha issue the Chate Authoi-

zatio Ceticate. O the othe had, i thee is a

Baziia esse adequate o the desied actiit, the

Baziia aiatio compa that ows it ca boc

the chate equiemet, ad oe its esse.

Funds

The Fud o the Mechat Maie (Fundo da Marinha

Mercante - FMM) is a ud ceated b the Fedea

goemet, oeed b law no. 10,893/04. It was

ceated with the pupose o impoi the deeop-

met o the Baziia aa idust ad feet. Sice

its ceatio, it has aced pojects o the most di-

esied aa aeas, compisi actiities that a

om shi to the oi ad as idust.

Aothe impotat ud is the guaatee Fud o

naa Costuctio (Fundo Garantidor da Construo

Naval) oeed b law no. 11,786/08. Its pupose

is to coe the cedit is ad the peomace is othe costuctio o a esse o a Baziia shipad. It

ca eithe uaatee the cedit tae om a acia

aet o the peomace o the shipad esposibe

o the costuctio o the esse.


23/40



24/40

g

The Baziia Fedea Costitutio (Sectio 175) sets

oth that pubic seices sha be edeed b the

State diect o b meas o cocessio to be at-

ed to piate etities b meas o a pubic biddi

pocedue. Theeoe, a PPP cotact sha be pe-

ceded b a bid to seect the cocessioaie.

Comparison withCommon Concessions

Dieet om taditioa iestmet ad eimes

o coaboatio betwee State ad piate paties,

the PPP pesets the oowi mai eatues: (i) e-

mueatio o the piate secto (patia o tota)

assumed o uaateed b the State; (ii) o-tem

eatioship, ad (iii) emueatio subject to pop-

e peomace.

Risk Mitigation

This possibiit o the goemet peomi pa-

mets to a cocessioaie ude PPP cotacts miti-ates, tota o patia, iss eated to tai, de-

mad ad maet, which ae sometimes cucia to

coe ecoomic easibiit to a cetai poject ude

the piate paties pespectie, especia ude a

poject ace eime, thouh due to such cou-

atio othe iss ma be aeated (oemet

cedit is, poitica is etc).

INFRASTRUCTURE 25


25/40

INFRASTRUCTURE FINANCING

Financing Sources

the FinAncingoFthe brAziliAninFrAstructure sector

Bazi has expeieced its oest owth cce oe

the past decades. The 2007/2008 cisis has sowed

this owth, but aso caused the Fedea goemet

to auch a seies o iitiaties, specia poams ad

eisatie chaes to stimuate the ecoom. Exam-

pes icude the specia poam o the acceeatio

o the ecoom, the PAC, ceated i 2007, wheeb

iestmets o moe tha r$500 biio wee ei-

sioed o seected ad cucia iastuctue pojects

(icudi hihwas, aiwas, powe pats ad

pots). I 2010, the Fedea goemet auched

PAC 2, which estimates iestmets o appoximate

r$ 1,5 tiio (icudi some o the r$500 biio

o PAC sti pedi) i the upcomi eas.

The histoica ac o iestmets i iastuctue,

combied with thei eed to sustai the cotiuedowth o the Baziia ecoom, has ceated aious

busiess oppotuities o piate iestmet, most o

them eated to PAC/PAC 2 quaied pojects. new

majo oppotuities ae aso ie to be see i the

ea utue as Bazi wi host the two hihest poe

spoti eets o the wod, the FIFA Wod Cup i

2014 ad the Ompic games i 2016.

Tasactios i the Baziia iastuctue secto ae

taditioa aced b Baziia oemeta

bas ad aecies, mutiateas, oei oe-

met owed bas, expot cedit aecies ad majo

piate bas. I the past, the capita maets wee

o occasioa accessed to ace ad eace

iastuctue tasactios. nowadas, due to the

ceatio o cetai euato ad tax iceties, the

capita maets ae moe ad moe ote see as ea-

sibe ateaties to ace these tasactios.

brAziliAn governmentAl bAnks

The cotiued fow o aci o the Baziia

iastuctue secto has bee histoica mai-

taied b the Fedea goemet, acti thouh

its bas. Banco Nacional de Desenvolvimento

Econmico e Social BnDES is cetai the

most otabe exampe o that.

BnDES paed ad cotiues to pa a impotat

oe i the aci o itua a o the most im-potat Baziia iastuctue pojects, secui the

aaiabiit o specia cedit ies o them. Exampes

icude the cedit ies opeed o the Wod Cup

ad the Ompics ad o the aci o the Sato

Atio, Jiau ad Beo Mote hdoeectic powe

pats ad the hih speed tai ii the cities o

So Pauo ad rio de Jaeio.



26/40

Othe impotat oemet owed bas, which po-

ide aci o pojects i thei aeas o iteest, i-

cude Banco do Brasil- BB, Caixa Econmica Federal

- CEF, Banco do Nordeste do Brasil BnB (the

otheast deeopmet ba), ad Baco da Amazia

BASA (the amazo deeopmet ba).

I the ecet eas, eisatio was passed to aow

uds sitti i the FgTS the madato socia secu-

it ud o a empoees i Bazi to be iested i

iastuctue, thouh the so caed FI-FgTS The

FgTS Iastuctue Fud. FI-FgTS has apid be-

come oe o the most actie paes i the Baziia

maet, iesti i oppotuities i a aiet o ia-

stuctue sectos, iesti both i debt ad equit

iastuctue sectos12.

multilAterAls, ForeigngovernmentAl bAnksAnd ecAs

The Ite-Ameica Deeopmet Ba IDB ad the

Iteatioa Fiace Copoatio IFC hae a stoad ostadi taditio to ace iastuctue tas-

actios i Bazi, both i the pubic ad piate secto.

These bas paticipated i the aci o the st

poject ace deas bac i the ieties ad coti-

12 Up to 2010, FI-FgTS has made amost 20 biio eais i

iestmets.

ue to pa a actie oe owadas. Corporacion An-

dina de Fomento CAF aso appeas as a iabe

souce o aci, especia ate the et o Ba-

zi as its shaehode. Foei bas tpica patici-

pate i the tasactios ioi these etities, b

poidi the ecessa udi o thei B oas.

Foei goemeta Bas ad Expot Cedit Ae-

cies, ie the Japa Ba o Iteatioa Coopea-

tio JBIC, kW, U.S. Ex-Im Ba, nIB, Fiea,

Ba o Chia, ae awas cosideed whe iteests

o compaies o thei couties ae ioed.

The icome tax oe the iteest o these oas is e-

ea exempted, mai them attactie om aecoomic poit o iew. These oas, howee, ae

oma made i oei cuec, bii to the

equatio cosideatios eadi the oei ex-

chae is ad the cost to eetua mitiate it.

PrivAte bAnks

Cuet, ot o iteatioa piate bas pa-

ticipate i majo iastuctue pojects i Bazi,

but aso seea oca acia istitutios. Bazi-

ia acia istitutios showed thei acia

steth dui the 2007/2008 cisis, putti to test

the euato stuctue o the Baziia bai i-

dust. A aiet o debt istumets aow piate

INFRASTRUCTURE 27


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bas to ca out tasactios expeditious. Pi-

ate bas tpica paticipate i majo iastuc-

tue deas thouh sdicates.

Securities / Guaranteesin Financing Transactions

Fiaci tasactios ated b Baziia ad oei

ceditos ioi Baziia iastuctue pojects

usua cotempate a secuit pacae compisi

both uaatees (edeed b a paet compa o i-

diidua that paticipates o hods iteest i the poject

compa) ad secuities (oe the espectie ihts, as-

sets, ea estate ad eceiabes o the poject).

Ude Baziia aw, thee ae a ew tpes o secui-

ties that coud be impemeted i the desi o the

secuit pacae eated to aci tasactios. I-

espectie o the tpe o secuit adopted, ude such

aci tasactios, the secuit pacae usua

icude ea estate, shaes/quotas o Baziia com-

paies, cedit ihts aaist Baziia acia isti-

tutios, emei ihts aisi out o cocessios

ad authoizatios ated b pubic bodies ad au-

thoities, ad eceiabes, ihts ad cedit ihts ais-

i out o the eeat poject cotacts.

The tpes o secuities that ae usua adopted b

ceditos ude such tasactios icude: (i) ducia

assimet o sae o ihts, assets, eceiabes o ea

estate; (ii) pede o ihts, assets ad eceiabes; ad

(iii) motae oe ea estate ocated i Bazi.

Pusuat to Baziia aw, thee ae a ew equie-

mets that shoud be compied with i ode o ce-

tai tpes o secuities to be eectie aaist thid

paties. Such equiemets icude the eistatio

o the espectie secuit documets with the com-

petet pubic eist, i.e., the espectie rea Estate

reist (i case o ea estate), o the espectie

reist o Tites ad Documets (i case o ihts,

assets ad cedit ihts). I cetai situatios, the e-

spectie coutepaties o the debto o the ac-

i/ato o the secuit (icudi acia isti-

tutios ad coutepaties to the poject cotacts)

ma aso hae to appoe, acowede o be oti-

ed o the ceatio o the espectie secuit oe

the espectie ihts ad cedits.

Fund Raising in Capital MarketsCompaies ma paticipate as sposos i cetai

tasactios stuctued i the om o Poject Fiace,

obtaii uds i the maet thouh secuities ad

stuctued opeatios.

This ma icude obtaii uds i the maet

thouh the oowi secuities: (i) Debntures


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INFRASTRUCTURE 29


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it ad cost eciec to aise uds i shote timi

tha oma equied o such pubic oei.

credit receivAble investment Funds -Fundosde investimentoem direitoscreditrios - Fidc

A FIDC tasactio is a aci ehice o Baziia

compaies b meas o secuitizatio o eceiabes,

euated thouh resoutio 2,907, o noembe 29,

2001, eacted b the Moeta nacioa Couci

(Conselho Monetrio Nacional CMn) ad CvM

Istuctio 356, eacted b the CvM, as ameded b

CvM Istuctios 393, 435, 442, 446 ad 458 (CvMIstuctio 356).

A compa hodi a cedit eceiabe esuti om a

commecia, o acia, o idustia o ea estate

tasactios (Oiiato) assis its cedit to a iest-

met ud (FIDC) that wi pa o the cedit i cash with

uds oiiated om the udewiti o quotas i the

FIDC. The FIDC wi the become the cedito o the

eceiabes, which wi be coected b a custodia.

certiFicAtesoF reAl estAtereceivAbles certiFicAdosde recebveisimobilirios cri

Baziia cuet eisatio, i paticua to law

no. 9,514, dated noembe 20, 1997, dees CrI

as omia istumets o cedit, issued excusie-

b secuitizatio compaies, that ma be ee

eotiated as secuities, ceati a pamet pom-

ise i cash to the hode o the secuit ad that

ae attached to ea estate eceiabes. Such ea

estate eceiabes ae sod to secuitizatio com-

paies b motae compaies, costuctos ad

acia istitutios.

The CrIs must be pubic distibuted. The CvM i-

stuctio 414, as ameded b CvM Istuctios

443, 446, 480 (CvM Istuctio 414) ues the

pubic oei o the CrI eistatio. I ode to

eotiate ea estate cedits, secuitizatio compa-

ies must be du eisteed with the CvM. Oce

such etities hae bee eisteed, the ma po-

ceed with the pubic distibutio o the CrIs.



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Pubic distibutio o CrI does ot equie the ite-

mediatio o a acia istitutio, i case the aue

o such distibutio is owe tha r$ 30.000.000,00

(thit miios eais) o poided that such distibutio

compies with poisios set oth i item I ad II o

paaaph 4 o Sectio 5 o ICvM Istuctio 41414.

14 Accodi to such poisios: (i) the CrI hae as taet

oup compaies excusie membes o the same eco-

omic oup, ad thei espectie diectos ad cotoi

shaehodes, bei obidde the eotiatio o CrI i the

secoda maet, o (ii) the CrIs hae omia aue equa

o hihe tha r$ 1 miio ad the oe is destied to sub-

sciptio o ot moe tha 20 iestos.

INFRASTRUCTURE 31


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WORLD CUP AND THE OLYMPIC GAMES

Infrastructure Works Urban and Architectural Projects

The 2014 FIFA Wod Cup ad the 2016 Ompic

games wi equie siicat iestmets i each

o the Baziia cities which wi host the ames, as

equied b the Fdatio Iteatioae de Foot-

ba Associatio FIFA ad b the Iteatioa

Ompics Committee.

Iestmets wi icude: (i) deeopmet ad impoe-

met o pubic taspotatio aciities (icudi ai-

pots, tais ad bus sstems), especia the muicipa

taspotatio sstem; (ii) costuctio ad impoe-

met o hote iastuctue; ad (iii) impoemet o

uba iastuctue icudi hospitas, basic wate

ad sewae saitatio sstem, pubic secuit.

Athouh some o the acia esouces equied o

the Wod Cup wi come om the Baziia Socce

Fedeatio (Conederao Brasileira de Futebol

CBF), the thee poitica diisios i Bazi (the host

cities, the States whee the host cities ae ocated ad

the Fedea goemet) joied eots to coect e-

souces o aci the equied costuctio ad

iastuctue wos.

Oe exampe o this joit eot is the PAC, which

amo othes sha be used to eoce the commit-

met o the host cities, the states ad the Fedea

goemet. This poam aims at iesti r$ 11.48

biio i 47 dieet pojects to speed up uba mo-

biit i the host cities thouh the impemetatio o

iastuctue pojects ocused o the cicuatio o

ehices ad pedestias.

As pat o the actio pa adopted b the Fedea

goemet i coectio with the ames, b meas

o the Pesidetia Decee no. 7,034/09, the Fedea

goemet ceated a website amed 2014 CUP

(Copa 2014). The website cotais a the acts ad

expeditues adopted b the pubic admiistatio i

coectio with the ames.

With eads to aci souces aaiabe o the

pubic secto i eatio to iestmets i iastuc-

tue o the ames, accodi to the Taspaec

gatewa, the two mai aci istitutios ae

BnDES ad the Fedea Sais ad loas Ba

(Caixa Econmica Federal CEF).

BnDES ceated a aci souce amed PoCopa

Tuismo, that has the oa o ati cedit aciities o

up to r$ 1 biio o costuctio ad impoemet o

the hote iastuctue. This poam has dieet cat-

eoies o cedit aciities o (i) stadad hotes, (ii) e-

e eciet hotes ad (iii) sustaiabe hotes, each o

which has dieet pamet tems ad iteest ates.



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The Fedea goemet aso ceated a poam

amed natioa Touism Deeopmet Poam (Pro-

grama Nacional do Desenvolvimento do Turismo

Podetu). Dieet om the PoCopa Tuismo,

which is a specic poam o hotes, the Podetu

esouces ma be used i a iastuctue wos i

the host cities, as we as i maeti actios.

Athouh the States whee the host cities ae ocated

ad the host cities themsees ae aead eotiati

with potetia piate iestos, most o them sti do

ot hae a specic poam, o aws o the ames.

I this sese, the stuctues o pubic-piate pate-

ship ad pubic cocessios ad thei espectie

aws ma be used o this pupose.

notwithstadi, the Muicipait o So Pauo e-

cet eacted a specic ea istumet o the e-

quaicatio o the iastuctue o the cit b the

ubaizatio ad/o e-ubaizatio o a specic

aea. law no. 14,917/2009 ceated the ue o the

uba cocessio which is a admiistatie cotactexecuted b the cit ad a piate pate ate a bid-

di pocess o the puposes o cai out uba

wos o pubic iteest i which the iss eated to

the peomace o the cotact ae assumed o b

the piate iesto. It is impotat to ote that i

cosideatio o assumi the iss o the uba

cocessio, the piate iesto eceies a the ees

eated to the expoatio o the popeties. I ode

to pomote a uba cocessio, the cit o So Pau-

o eeds to justi the ecessit o such iteetio

as we as to decae how this iteetio wi chae

the ubaizatio o the cit.

I cosi, thee is a cosideabe amout o ac-

i optios o the ames ad aso some specic

poams to suppot those iestmets with the pu-

pose o attacti piate capita - icudi that o

oei iestos - to iastuctue pojects i co-

ectio with the 2014 FIFA Wod Cup ad the 2016

Ompic games.

Stadiums

The 2014 Wod Cup ad the 2016 Ompic games

epeset a eat oppotuit o o-tem pai

i the iastuctue secto, especia o the 12 host

cities. Fo the success o such eets, the host cities

wi eed to eceie expessie iestmets i ode

to ehace thei eea iastuctue.

Amo the aeas that sha eceie expessie iest-

mets, the stadiums ae pobab the most impotat.

It is ow that a Baziia stadiums wi eed diect

iestmets to accompish the stadads deed b

FIFA ad b the Iteatioa Ompics Committee.

I ode to ca out such equied modicatios i

INFRASTRUCTURE 33


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the aeas, the amout o iestmets shoud each

appoximate 600 miio i some cases.

investment models

Dieet iestmet modes wi be used o the e-

oatio ad costuctio o stadiums ad muti-use

aeas. The modes chose b the host cities a

om piate iestmet b ootba cubs that ow

the stadiums, passi thouh the mode o pubic-

piate pateship PPP, to diect iestmet o the

oemet thouh pubic biddis to seect the

compa that wi costuct the aea.

The iestmet mode adopted b most o the hostcities is the pubic-piate pateship. That is the case

o Saados Estdio da Fote noa, natas Aea das

Duas, Beo Hoizotes Compexo Espotio Miei-

o, Fotaezas Casteo ad, a, recies Aea

So loueo da Mata. Ispied o the Bitish Poject

Fiace Iitiatie, this mode was taioed with the

pupose o attacti a ew wae o piate iest-mets i pojects o eeated socia iteest which

woud ot be ecoomica easibe othewise.

Aothe thee o the 12 host cities hae piate ae-

as: So Pauos Estdio do Moumbi, Cutibas Aea

da Baixada ad Poto Aees Beia-rio. It is most

pobabe that those stadiums wi o eceie iest-

mets o thei owes. leadi the ace is Attico

Paaaese (owe o Cutibas Aea da Baixada)

with 80% o the stadiums space aead adapted to

the iteatioa stadads. Sti i the st time, So

Pauo Futebo Cube ad Spot Cub Iteacioas

stadiums (owes o So Pauos Estdio do Moumbi

ad Poto Aees Beia-rio, espectie) ae ow

eceii the st touch-ups to comp with the e-

quiemets estabished b FIFA.

The oemet o a the othe host cities (Maauss

Aea da Amazia, rio de Jaeios Estdio do Ma-

aca, Basias Ma gaicha ad Cuiabs ve-

do) decided to use pubic esouces i the costuc-

tio o eoatio o the stadiums, cotacti apiate pat to execute the wos thouhout a bid-

di pocess. I picipe, these stadiums shoud aso

be opeated b oemeta etities.

Idepedet o the iestmet mode adopted, it

is paamout to poit out that a the pojects wi

eco o siicat ad ood aci esouces.Awae o such oppotuit, the BnDES ao with

othe pesio uds ae steppi owad to ace

the paed pojects.


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INFRASTRUCTURE 35


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Four decades of decisive performanceon the Brazilian Legal SceneFouded i 1972, Machado, Meyer, Sendacz e Opice

Advogados is oe o Bazis most eowed ad e-

spected ea ms. Opeati hamoious i a

aeas o the aw, the m oes ea assistace to

both Baziia ad iteatioa ciets, icudi

ae copoatios i the most aied sectos o actii-

ties, acia istitutios ad oemet bodies.

I the ast decade aoe, Machado Meyer was eected

thee times Law Firm o the Year i Bazi b the e-

owed Bitish pubicatio, the Iteatioa Fia-

cia law reiew. Accodi to the aso Bitish Cham-bes ad Pates, i the same peiod, the m appeaed

as the Law Firm o the Year, this time i a o lati

Ameica. Sice the auch o the Baziia aua

Anlise Advocacia 500, i 2006, the m has appeaed

ea ate ea as oe o Bazis most admied.

With oces i So Pauo, rio de Jaeio, Basia,

Beo Hoizote, Poto Aee, Saado ad new

yo, Machado Mee has aoud 300 awes. It is

a oce with oba each ad has cose ties with

the picipa ea ms o the Uited States, Euope,

lati Ameica ad Asia.

Pioeei ad eadeship ae the hamas oMacha-

do Meyer. The m has bee ioed i the mai

eets oi the couts ew ecoom. I the

1980s, o exampe, it too pat i the e-eotiatio

o Bazis oei debt. I 1990, Machado Mee too

a decisie oe i the ecupeatio o iumeabe -

acia istitutios withi the scope o PrOEr (na-

tioa Poam o restuctuatio ad Stethei

o the Fiacia Sstem). I the same decade, it too

a actie pat i aious piatisatio pocesses, i

sectos such as mii ad teecommuicatios.

The oce cotiues to be a potaoist i the Ba-

ziia ecoomic scee. Toda, it paticipates actie

i the cosoidatio o the couts capita maets,i the iteatioaisatio pocesses o Baziia

compaies, i the mees ad acquisitios that

hae tae pace i Bazi ad i ae iastuctue

pojects. At the same time as bei ioed i ae-

scae opeatios, Machado Mee aso poides e-

a assistace to its ciets o a dai basis. As a e-

sut o decades o wo i the couts picipabusiess aais, ou awes ae taied to tae deci-

sios that ae iteiet, quic ad secue; awas i

accodace with the hihest ethica, techica ad

quait stadads.

ABOUT OUR SPONSOR



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mAchAdo meyer inFrAstructure PArtners

Antonio de Souza Corra Meyer

Te.: +55 11 3150-7030Emai: [email protected]

Jos Ribeiro do Prado JniorTe.: +55 11 3150-7177Emai:[email protected]

Jos Virglio Lopes Enei


Jos Samurai Saiani


Ana Karina Esteves de Souza


Silvia Rajseld Fiszman

Te.: +55 11 3150-7634

Emai: [email protected]

INFRASTRUCTURE 37


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So Paulo

Head Ofce

A. Biadeio Faia lima, 3144 - 11 ada - CEP01451-000 - Jadim Pauistao - So Pauo-SP - Basi

Te.: +55 11 3150-7000 - Fax: +55 11 3150-7071


Escritrio Administrativo

rua da Cosoao, 247 - 10 Ada - CEP 01301-903- So Pauo-SP - Basi

Te.: +55 11 3236-2600 - Fax: +55 11 3236-2669


Rio de Janeiro - Unidade RB I

Ceto Empesaia Iteacioa rio - A. rioBaco, 1 - 9 ada - Boco B - CEP 20090-003- rio de Jaeio-rJ - Basi

Te.: +55 21 2253-9141 - Fax: +55 21 2253-6143


Salvador

rua Aeo Bito, 90 - 5 ada - CEP 40210-245- Saado-BA - Basi

Te.: +55 71 3339-1400 - Fax: +55 71 3337-0441


Porto Alegre

A. Dom Pedo II, 1351 - cj. 601 - CEP 90550-143- Poto Aee-rS - Basi

Te.: +55 51 2104-8000 - Fax: +55 51 2104-8028


Belo Horizonte

Aeida Basi, 1.666 - Saa 601 - CEP 30140-003

Fucioios - Beo Hoizote-Mg - Basi

Te.: +55 31 3194-1700 - Fax: +55 31 3194-1718




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Braslia

Ed. Copoate Fiacia Cete - SCn, Quada 2- Boco A - 9 ada - Saa 904 A - CEP 70712-900- Basia-DF - Basi

Te.: +55 61 2104-5550 - Fax: +55 61 2104-5580


New York

110 East 55th Steet, 10th Foo - CEP 10022- new yo-ny - USA

Te.: +1 212 784-8802 - Fax: +1 212 758-1028


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