Luiz Carlos T. de Carvalho Chief Advisor for Foreign Trade and Investments Undersecretary for International Relations Chief of Staff Secretariat Government of the State of Rio de Janeiro
LOCATION: Southeast of Brazil (57% of national GDP) AREA: 43,780 km 2 (0.5% of the Brazilian territory) POPULATION : 16.00 M (8.4% of total) GDP: US$ 192,0 B (10,9% of Brazil s GDP) US$ 11,9 (GDP per capita) Source: World Bank/IBGE Source: IBGE
US$ B 250 GDP OF THE STATE OF RIO DE JANEIRO 200 150 100 50 74,5 80,0 92,6 101,6 120,4 133,5 148,8 160,4 185,4 192,0 US$ B 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: IBGE (2010)
Projection of GDP Growth for 2020 2020 2018 2016 2014 2012 2010 2008 2006 2004 Source: IBGE (2012) / Austiin Ratings
STRONG SUSTAINABLE GROWTH 2000-2009 BRAZIL 5,7 5,7 5,1 4,3 4,0 2,7 3,2 1,1-0,2 Source: World Bank/IBGE- All numbers refer to the year 2008 Source: IMF/IBGE (2010)
STRONG SUSTAINABLE GROWTH 2000-2009 BRAZIL VS CHINA 8,0 8,3 9,1 10,0 10,1 9,9 11,1 11,4 9,6 8,7 4,3 2,7 5,7 3,2 4,0 5,7 5,1 1,3 1,1-0,2 Source: World Bank/IBGE- All numbers refer to the year 2008 Source: IMF/IBGE (2010)
STRONG SUSTAINABLE GROWTH 2000-2009 BRAZIL VS CHINA VS RIO DE JANEIRO 18,5 15,8 15,5 4,3 8,0 6,1 1,3 8,3 7,0 2,7 9,1 1,1 10 9,6 10,1 5,7 3,2 10,8 9,9 11,1 11,4 4,0 5,7 11,4 7,7 5,1 9,6-0,2 8,7 2,0 Source: World Bank/IBGE- All numbers refer to the year 2008 Source: IMF/IBGE (2010)
INFLATION RATE 2000-2009 BRAZIL RIO DE JANEIRO Source: IBGE/IPCA
GROSS DOMESTIC PRODUCT (PPP) Purchasing Power Parity Cross-country comparison with the State of Rio de Janeiro Source: World Fact Book / CIA / GPD PPP Per Capita 2009 US$ PPP (B)
GROSS DOMESTIC PRODUCT PER CAPITA (PPP) Purchasing Power Parity Cross-country comparison with the State of Rio de Janeiro Source: World Fact Book / CIA / GPD PPP Per Capita 2009
PRE-SALT OIL PERSPECTIVES Corcovado Pre-Salt Source: SEDEIS
PRE-SALT OIL PERSPECTIVES Source: ANP
PRE-SALT OIL PERSPECTIVES Perspective of more than 50 billion barrels of light oil Investments: US$ 600 billion up to 2020 Pre-Salt Region: 800 km long and 200 km wide in 3 basins: Espírito Santo, Campos and Santos Source: ANP/Petrobras
PRE-SALT OIL PERSPECTIVES Main Challenges: Logistics = 300km offshore New materials = corrosion Gas outflow = ELNG National content= local talent pool
O&G OUTLOOK Oil Production (2000-2011) Brazil and the State of Rio de Janeiro (B.O.E./day) 85,0% 79,3% 79,6% 80,6% 82,6% 81,7% 82,0% 84,2% 84,2% 81,6% 82,5% Source: ANP
O&G OUTLOOK Gas Production (2000-2011) Brazil and the State of Rio de Janeiro (millions/m3/day) 43,1% 42,6% 44,4% 42,2% 39,9% 45,0% 46,4% 44,2% 40,6% 49,7% 44,2% Source: ANP
Important center for postgraduate education (50 PhDs per 100,000 inhabitants) Strong professional education network: 6 technological education institutions Noroeste 134 universities Norte 21 technological centers Médio-Paraíba Centro-Sul Fluminense Serrana Research centers: Biomedical Engineering Energy: Oil and Gas Electricity Costa Verde Metropolitana Universities University Centers Technological Education Centers Baixadas Litorâneas
Science and Technology UENF INMETRO UERJ PUC-RIO IME IMPA FIOCRUZ FINEP CNEN INT LNCC FGV CETEM FAETEC INCA UNIRIO CENPES PESAGRO- CECIERJ ABC RIO UFRRJ UFF UFRJ FAPERJ Source: FAPERJ
Logistics Roads 27,000 Km (17,000 miles) Railways 3,000 Km (1,900 miles) 6 Ports (1 project) 12 Airports - 10 Regionals - 02 Internationals BR-116 São Paulo 429 Km Itatiaia Porto Real Resende Barra Mansa COSTA VERDE Angra dos Reis Quatis Valença MÉDIO PARAÍBA Volta Redonda Rio Claro Barra do Piraí Pinheiral Mangaratiba Vassouras Rio das Flores BR-040 Belo Horizonte 434Km Com. Levy Gasparian Três Rios Paty do Alferes Mendes Miguel Pereira E.Paulo de Frontin Piraí Paracambi Japeri Seropédica Itaguaí Queimados Nova Iguaçu Mesquita Nilópolis S.J. Meriti Paraíba do Sul CENTRO-SUL B. Roxo D. de Caxias Rio de Janeiro S. J. do Vale do Rio Preto Areal Petrópolis Magé Niterói Sapucaia METROPOLITANA S. Gonçalo Teresópolis Guapimirim Itaboraí Maricá BR-116 Salvador 1654Km Tanguá Carmo Sumidouro Nova Friburgo Cachoeiras de Macacu Rio Bonito Cantagalo Duas Barras BAIXADAS LITORÂNEAS S. Antonio de Pádua Bom Jardim Silva Jardim Araruama Saquarema Porciúncula Miracema Aperibé Itaocara S. Sebastião do Alto Macuco Cordeiro Trajano de Morais SERRANA Casimiro de Abreu Iguaba Grande S. Pedro da Aldeia Arraial do Cabo Laje de Muriaé Cambuci Sta. Ma. Madalena Itaperuna S. José de Ubá Conceição de Macabu Rio das Ostras Cabo Frio Varre-Sai Natividade NOROESTE São Fidélis Macaé Armação de Búzios B. Jesus de Itabapoana Italva Cardoso Moreira NORTE Carapebus BR-101 Vitória 514 Km Quissamã ESPÍRITO SANTO S. Francisco de Itabapoana Campos dos Goytacazes S.João da Barra Parati ATLANTIC OCEAN BR-101 Santos 535Km
4 of the top 9 universities of Brazil are in Rio Education Ministry Ranking - Undergrad University City Grade # Course UFRJ RJ 5 119 UFMG BH 5 104 UFRGS P.Alegre 5 71 UNIFESP SP 5 41 IBMEC - RJ RJ 5 5 USJ - SC São José 5 3 FACAMP Campinas 5 2 IME RJ 5 1 FGV RJ 5 1 Other Universities in Rio with grade 4 UERJ Education Ministry RJ Ranking Grad 4 51 PUC-RIO RJ 4 30 UNIRIO University City RJ Grade 4# Course26 CEFET/RJ RJ 4 12 UFRJ RJ 7 7 IST-RJ RJ 4 1 ENCE UNICAMP Campinas RJ 7 4 6 1 Esc. UFRGS Direito do RJ P. Alegre RJ 7 4 4 1 USP SP 7 3 UFMG BH 7 3 PUC-RIO RJ 7 2 CBPF RJ 7 1 IMPA RJ 7 1 UNESP SP 7 1 University City Grade # Course UFRJ Source: MEC, CAPES RJ 6 9 Research Centers CENPES Petrobras Research center FIOCRUZ Brazilian Health Research Center CEPEL Electricity Research Center CTEX Army s Technology Center INT National Institute of Technology IMPA Inst. of Pure and Applied Mathematics CBPF Brazilian Center for Physics Research IEN Nuclear Engineering Institute INMETRO National Institute of Metrology R&D Centers established in the last 24 months Company Investment (USD) 12M 30M 30M 36M 450M 21M 15M 50M 50M 120M N/A 70M
BRAZIL March 2010 The State of Rio de Janeiro becomes the first in South America to Receive Investment Grade December 2011 The State of Rio de Janeiro becomes the first and only to have two Investment Grades
Oil production 1.5 million barrels / day (79,3% of the national production) Gas production 21 million m 3 / day (44,2% of the national production) Self sufficient in eletricity Installed capacity: 7,400 MW 6 thermoelectric plants: 4,320 MW 2 nuclear plants: Angra I and II Under construction Açu Coal Fired Power Plant: 2,100 MW Angra III Nuclear Power Plant: 1,350 MW Simplicio Hidroelectric Power Plant 333,7 MW Source: SEDEIS
Major Investment Projects Oil and Gas US$ 60,7 Petrochemical Industry US$ 6,5 Steel Industry US$ 2,0 Shipyards US$ 6,6 Transformation Industry US$ 0,7 Logistics US$ 1,7 Energy US$ 8,2 Urban Development US$ 1,7 World Cup and Olympics US$ 6,5 São Francisco de Itabapoana Eletric Plant US$ 0,8 Bi OSX US$ 1,3 Bi Ternium US$ 0,7 Bi Açú Thermo Plant US$ 2,9 Bi Oil and Gas- US$ 60,7 Bi Açu Complex R$ 1,0 Bi CEDAE US$ 0,7 Bi Brasfels Volkswagen US$ 0,3 Bi Coquepar US$ 0,7 Bi Duque de Caxias Refinery US$ 0,7 Bi GE US$ 0,4 Bi STX Comperj US$ 5,1 Bi US$ 1,1 Bi Porto US$ 0,3 Bi Angra 3 Prosub Maravilha US$ 4,5 Porto Bi US$ 2,1 Bi do Sudeste (LLX) US$ - US$ 1,0 Bi Grupo Fischer US$ 0,4 Bi 0,7 Bi Gerdau - US$ 1,3 World Bi Cup and Eisa Olympics US$ 1,0 Bi US$ 6,5Bi Source: Firjan, SEDEIS e PCRJ
Major Investment Projects Total of Investments US$ 102,0 Source: Decision Rio/FIRJAN
New Investments Announcements - 2010 Country/State Announcements Value (US$ Million) Part. (%) Brasil 794 268.000 - Rio de Janeiro 63 18.457 6,87 Minas Gerais 39 10.607 3,95 São Paulo 129 10.471 3,90 Source: RENAI/MDIC
Foreign Direct Investments Brazil X Rio de Janeiro 2007-2010 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% RJ U$ 5,45B RJ U$ 11,1B RJ U$ 7B BR U$ 33,7 BR U$ 43,9B BR U$ 30,4B RJ U$ 25b BR U$ 48b 2007 2008 2009 2010
OIL AND GAS BLOCKS DISTANCE 280 km 150 km SPEED 12 knots TIME 12.6 hours 12 knots 6.8 hours Source: SEDEIS
OIL AND GAS BLOCKS DISTANCE 280 km 150 km SPEED 12 knots TIME 12.6 hours 12 knots 6.8 hours Source: SEDEIS
150 km from Campos oil basin (85% of Brazil oil production); Natural workshop for the pre salt in Brazil: one stop shop for the oil and gas industry; Açu Superport : Brazil s new route to China (Source: FT; May 9 th, 2011). Up to 350 million tons port complex with 2 terminals (TX1 and TX2), to be ranked among the largest in the world. 17 km of quay, able to receive 40 very large carriers (including Chinamax) thanks to its 26m draft. More than 80 contracts and MoUs signed with companies from sectors such as: Steelmaking; Heavy Industry Machinery Light Machinery and Components Power Generation; Oil and Gas; Metal Mechanic; Dry & Liquid Bulk Handling; Automotive; Cement; Offshore Industries; Shipyards and Repairyards; General Cargo & Services. Resources and cheaper energy supply security, operating and logistic efficiencies, truly just in time practices and 2% VAT instead of 18%. Largest and most efficient port-industry complex in Latin America : total investments of US$ 40 billion Source: SEDEIS
OIL AND GAS BLOCKS DISTANCE 280 km 150 km SPEED 12 knots TIME 12.6 hours 12 knots 6.8 hours Source: SEDEIS
Research and Development - Tax Incentives Lei do Bem (Law 11.196 2005): IRPF and IPI IT LAW (Law 8.248, 10.176, 11.077): manufactures and goods PADIS (Law 11.484 2007): PIS/COFINS/IRPJ - Programs (BNDES) Innovative Capital Program: R$ 200 million per economic group of maximum support Technological Innovation line: R$ 1 million of minimum support Production Innovation line: R$ 3 million of minimum support Technology Fund line - non-reimbursable fund: Investment of up to R$ 1.5 million per company Program for Software Development: R$ 1 million and above of financing Program for Aeronautics: R$ 1 million and above of financing
Research and Development - Programs (FINEP) Inova Brasil: R$ 1 million of minimum support Economic Subvention non-reimbursable fund Zero interest rates: R$ 100,000 of minimum support - Programs (CNPQ/ MCT) Company Researchers Grants Program non-reimbursable
TRANSPORTATION ENVIRONMENT INFRASTRUCTURE SECURITY VENUES HEALTH 9% 1% 4% 11% 20% 55% Source: EGP-Rio (Abril/2011)
Regulation Representation Training Main Players IRBRe SUSEP CNSEG FUNENSEG Lloyd s Bradesco Seguros Korean Re ACE Property Everest Reinsurance Hannover Re Scor Reinsurance Transamérica Reinsurance Transatlantic Reinsurance XL Re Latin America 24+ Hedge Funds
Export x Import US$ FOB Record 19,0 16,7 11,6 13,5 20,0 +47% Record 29,4 2009 2010 2011 2009 2010 2011 Source: AliceWeb/MDIC
www.casacivil.rj.gov.br lcarvalho@casacivil.rj.gov.br Phone: + 55 (21) 2334 3259 Fax: + 55 (21) 2334 3512