bahia projects at expo xangai

8/8/2019 Bahia Projects at Expo Xangai

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Bahia Basics facts

Predictability, good regulation and respect for contracts.


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Bahia is a new growth engine


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China leadership role in the world economy

Asia Leading the Way.

The recent crisis has underlined the emergence of Asia as a

global economic powerhouse.

China and India are leading the way, but the phenomenonis by no means limited to these two countries. Asiaseconomic importance is unmistakable.

Within five years Asias economy will be about 50 percent

larger than it is today, account for more than a third ofglobal output, and be comparable in size to the economiesof the United States and Europe. By 2030, Asian grossdomestic product (GDP) will exceed that of the Group of

Seven major industrial economies (G-7).


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BAHIA INFRASTRUCTURE PROJECTS


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Bahia Challenges & Opportunities


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Bahia Infrastructure sector offers profitable opportunities for trade partners. Many

projects are available and our mission is offers the opportunity to get involved.


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Global Development 2010: Shifting Wealth


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Perspectives on Global Development 2010

The dynamics of the global economy over the last 20 years, and theimpact of the economic rise of China and Brazil, highlights theincreasing interactions between our countries through trade and foreigndirect investment.

As of 2008, developing countries were holding USD 4.2 trillion inforeign currency reserves, more than one and a half times the amountheld by rich countries.

These are just a few examples of a 20-year structural transformation ofthe global economy in which the worlds economic centre of gravity hasmoved from OECD members to emerging economies, a phenomenonal

shifting wealth.

Although the process has been ongoing for 20 years, the opportunitiesfor our countries are only starting to be understood.


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Global recovery has advanced: Activity in emerging

economies has been sustained by strong domestic demand

and the recovery of global trade. Major economies in Asia China, India remain in the

lead, followed by Brazil in Latin America.

Chinas rapid economic growth since 1978 has resulted in adoubling of the countrys GDP every 78 years.

Accompanying, and contributing to, this rapid growth has

been a significant expansion in Chinas external trade. Thelarge economy has grown fast and has become increasingly

and quickly integrated with the world economy.

Potential gains from China-Brasil trade


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Brazil is one of the most attractive markets for infrastructure in the World today thanks

to favourable macroeconomics, a competitive infrastructure sector developing fast.

Macro-economics: 4% stable projected GDP growth, an increasing population (close to

200 millions people), being one of the main recipient of forign direct investmentworldwide and a rapidly increasing motorization rate, shape a bright future.

In Brazil northeast, the Bahia state is moving forward, with a lot of projects in railways,

roads and ports. There are local and international players and a stable legal frameworkallowing an increasing number of projects being tendered.

The government Accelerated Growth prgram (PAC) is making progresses. With

investments of more than US$500 billons planned in the period 2011-14. Opportunities

for investment in infrastructure in Brazil exist mainly in roads, railways, aiports,

stadiums and energy. The fact that Brazil will host the two premier world sports events,

FIFA World Cup 2014 and Olympic Games 2016 is pushing all this infrastructure

development.

Brazil is a relevant market for any global player in infrastructure.


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The direct channels of interaction betweenChina and Brazil such as trade and foreign

direct investment (FDI) have been

intensifying. Between 1990 and 2008 world

trade expanded almost four-fold, but South-

South trade multiplied more than ten times.

Developing countries now account for around

37% of global trade, with South-South flows

making up about half of that total.

This trade could be one of the main

engines of growth over the coming decade.The OECD suggest that, were southern

countries to reduce their tariffs on southern

trade to the levels applied between

northern countries, they would secure awelfare gain of USD 59 billion.


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A win-win situation?

Improvements in the range and quality of exports, greatertechnological dynamism, better prospects for doingbusiness, a larger consumption base all these factors cancreate substantial welfare benefits for the whole world.

That is not to deny the challenges. Environmentalsustainability, growing levels of inequality within countries

and increased competition are three significant issues raisedby shifting wealth. The birth pains of this new economicworld order have also been accompanied by enormous

global imbalances. These challenges have come to theforefront during the economic crisis, but have been buildingover the last two decades. Despite these challenges, theoverall picture is a positive one for development.


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Economic policies targets should be:

Development strategies to cacth the opportunities of shiftingworld.

promote foreign direct investment, learning the lessons from

successful clusters and Export Processing Zones and usinginvestment links to achieve technological upgrading through

national innovation systems;

ensure appropriate revenue management policies inresource-rich economies and contemplate using sovereign

wealth funds to promote growth and investment in the

domestic economy; respond to the growing demand for agricultural exports to

improve agricultural productivity, through greater support to

R&D and extension services, and technological transfer.


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International Trade Flows


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Brazil - Merchandise Exports by Region

In 2009 China became the leading trade partner of Brazil.


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Strategic Logistic and Transport Plan


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BAHIA INFRASTRUCTURE PROJECTS


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Commodities leads the way


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Iron Ore Reserves: the importance of China to Bahia

Trade could be one of the main enginesof growth over the coming decade.


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Bahia East-west Railroad

Bahia Port to Central Brazil

Extension: 975 km

Total Value: R$ 4,8 billions

Term: 2011

China is the largest developing countryoutward investor with an investmentstock estimated at more than USD 1trillion.

South-South FDI has also increased.


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Railway, Port and AirportRailway, Port and Airport

Intermodal Transport System


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Intermodal Transport SystemPort - Airport - Railway - Roads


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Market and supplier access are the main factors affectinginvestments entry. Also the access to customers and

suppliers of inputs are key determinants of FDI inflows.

Our Governments spend large sums of money to entice

foreign direct investment (FDI), offering generous tax

incentives. We believe that foreign firms will generatepositive externalities on domestic firms.

The State fiscal Programs: Desenvolve and Probahiasupport with tax isention the atraction of foreign direct

investment (FDI).

Incentives for direct investment (FDI)


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Free Tax Areas

ZPE Zonas de Processamento de Exportao


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*%

World Cup 2014The Brazilian Strategy

The sense of urgency created by the advent of the World Cup in 2014 and the Olympics in 2016

can be very positive for Brazil as this stirs the public and private sectors to carry out badly

needed infrastructure investments.


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The project is under progress as Private Public Partnership

(PPP) to build and operate a new World Cup 2014 stadium.

The stadium will feature seating for 50,000.

Transportation, energy, sanitation, and other infrastructures

of the project will be developed to meet international

standards.

Hosting of the World Football Cup in 2014 and the

Olympic games in 2016 will stimulate much response, the

construction of roads, airports, and stadiums.

World Cup 2014 Stadium

Why Invest in Bahia?


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The choice of majors industrial leaders:

Ford Motors Automotive Complex: U$ 1,9 Billion investment.Production capacity for 250.000 vehicles / year.

Paper and Pulp Industry: Investments of more than U$1,5 billion overthe last 5 years

Oil and Gas Industry: New oil discoveries raising Brazilian reserves

from 14th place to 4th place in the world.

The World Bank predicts that if Brazil continues on the path it is onnow, it will move from being the tenth largest economy in the world

today to the fifth largest by 2016.

The sense of urgency created by the advent of the World Cup in 2014and the Olympics in 2016 can be very positive for Brazil as this stirs

the public and private sectors to carry out badly needed infrastructureinvestments.

Why Invest in Bahia?

Oil I d t I t t


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Oil Industry Investments

Brazil has 12 billion barrels of proven oil reserves, thesecond-largest in South America after Venezuela.

Petrobras has the worlds largest capital expenditureprogramme, worth $220 billion over the next five years.

The discoveries of oil made by Petrobrs have made it ease toforget that Brazil is already the worlds largest exporter of

coffe, sugar, chickens, beef and orange juice. It also exports

vast amount of soya and iron ore, as well as other ores andmetals.


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Romeu Temporal

Economic Adviser

Governo do Estado da Bahia

Secretaria de Planejamento

This presentation summarizes Bahia's economic prospects.

The state's future looks bright; but it will require lots of hard work and

leadership to bring the less fortunate people out of poverty.

Logistic Multimodal Transport Plataform


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Logistic Multimodal Transport Plataform

Infrastructure sector offers profitable opportunities for trade partners. Many projects are

available and our mission is offers the opportunity to discover how to get involved.

Juazeiro Logistic Plataform


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Juazeiro Logistic Plataform

Juazeiro has a privileged geographical location in the centerof brazilian northeast, and the radial connection around

Juazeiro in addition to its network, facilitate the transport of

merchandise and favors the intermodal infrastructure.

Nearby Petrolina has a good intermodal infrastructure and

facilities that connect with those of Juazeiro. Together, thetwo interact synergistically to create a logistic platform.

Platforma Logstica do So Francisco is a PPPI project to

convert Juazeiro into the largest logistic platform in the

Brazilian Northeast.


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