Presentation on theme: "Albérico Mascarenhas Secretary of Finance of State of Bahia Federation of Industry of State of São Paulo – FIESP May/19, 2005 PUBLIC-PRIVATE PARTNERSHIP."— Presentation transcript:
Albérico Mascarenhas Secretary of Finance of State of Bahia Federation of Industry of State of São Paulo – FIESP May/19, 2005 PUBLIC-PRIVATE PARTNERSHIP PROGRAM OF THE STATE OF BAHIA
Essential Concerns Creation of a benchmark to attract private investments, aiming at strengthening the State infrastructure. To prevent the use of such benchmark to defraud the fiscal strictness and imbalance the State finance. To explore supplementary services to provide the project with better financial sustainability and to reduce the tariff impact. PPP-Bahia
Fiscal Accountability Limits for annual expenditure Expenses must not exceed 5% of the Current Net Income. In the Federal Law, 1% of the CNI ended by prevailing. The State is prevented to enter into new agreements if the established limit is exceeded.
Concepts, principles and transparency Minimum amount: The monetary expression of an amount higher than R$ 20 million prevailed. Total access to data and reports, including for any reviews. Inclusion in the Quadrimester Report on Fiscal Management and submitted in Public Hearing; PPP-Bahia
Essential Clauses to PPPs Agreements Essential clauses Sharing with the public administration of economic profits, resulting from the risk reduction of partnership financing, and of ascertained productive gains when performing the agreement; Pledged installment withholding, in the last years of the agreement, to ensure the wholeness of the enterprise, which will be released after the agreement termination.
Creditors Protection Pledged and personal guarantee or insurance; Issuance of performance certificates directly and in favor of the project financing institution; Financing entity allowed to receive payments trough the obligor fund. PPP/Bahia - Guarantees
Creditors Protection Obligor Fund. Association with State Resources, including the Royalties and CIDEs, other than taxes. The contractor may collect receivables of the contracting party from third parties, other than taxes. PPP/Bahia - Guarantees
Obligor Fund Creation of the Obligor Fund for the PPP of the State of Bahia – FAGE Bahia. Guarantee with a contribution up to 30% of the annual obligations paid by treasury resources; Sources: 20% from the Royalties, while the 30% is not reached and up to 20% after exceeding the ceiling or if equal to it; 20 % from CIDE (idem Royalties ); other budgeting resources and additional credits; The Funds financial applications; Internal and external credit operations; donations, allowances, contributions and legacies.
PPP/Bahia - Control and Management Management Council - Composition Management Council of the PPP Program: I - the Finance Secretary (Chairman); II - the Planning Secretary (Deputy Chairman); III - the Administration Secretary; IV - the Government Secretary; V - the State Attorney General; VI - up 2 members, at the Governor free discretion. State Secretary Head Officers, with direct interest on a certain partnership;
PPP/Bahia - Control and Management Executive Department and Regulatory Agencies Executive Secretary for the Management Council, associated with the Finance Secretariat. Regulatory Agency Roles (AGERBA).
PPP-Bahia Priority Areas Education, health and social welfare; Public transports (roadways, railways, ports and airports); Sanitation; Safety, defense, justice and imprisonment system; Science, research and technology, including information technology; Agribusiness (irrigated agriculture and agricultural-industrialization); Other public areas of social or economic interest.
Implementation of New Outfall and Supplementary Works A second Ocean Outfall Customers assistance - Salvador - Lauro de Freitas - Existing Basin Densifications TITLE BASIN LIMITS SYSTEMS LIMITS LIMITS BETWEEN OUTPOURINGS MUNICIPAL DISTRICT LIMITS RISING STATION PREVIOUS CONDITIONING STATION INTERCEPTOR PRESSURE PIPES OCEAN OUTFALL Implemented basins that contribute to the Rio Vermelho Outfall Implemented basins currently contributing (provisional) to the Rio Vermelho Outfall and final contribution to the Jaguaribe Outfall Basins planned to be implemented in the second phase which will contribute to the Jaguaribe Outfall
Work Characteristics Land outfall: 1,509 m of extension and 1600 mm of diameter (CONTINUED) Previous Conditioning Station (ECP) to a flow of 3.m 3 /s Ocean Outfall: 3,648 m of extension 5,9 m 3 /s capacity. Investment: R$ 260 million Implementation of New Outfall and Supplementary Works TITLE BASIN LIMITS SYSTEMS LIMITS LIMITS BETWEEN OUTPOURINGS MUNICIPAL DISTRICT LIMITS RISING STATION PREVIOUS CONDITIONING STATION INTERCEPTOR PRESSURE PIPES OCEAN OUTFALL Implemented basins that contribute to the Rio Vermelho Outfall Implemented basins currently contributing (provisional) to the Rio Vermelho Outfall and final contribution to the Jaguaribe Outfall Basins planned to be implemented in the second phase which will contribute to the Jaguaribe Outfall
It will serve a population of approximately 1,900,000 inhabitants. Implementation of the Jaguaribe system will provide sanitation services to an area of approximately 20,000 hectares. Improvement of the users life quality and reduction of expenditure on the public health sector. Possibility to fulfill all basin sanitation depletion with significant densification, in Salvador and its metropolitan region, without damages to tourism - major economic activity and attraction of such cities, as well as preventing the spreading diseases transmitted by water. Enterprises Benefits
Penitentiary System A) Imprisonment System Place Shortage 1,367 B) Prisoners in District Prisons 4,500 C) Place Shortage (A +B) 5,867 D) Intended places included in ongoing work 2,026 E) New work requirements (C – E) 3,841 Place Requirements in the Imprisonment System
(1) Municipalities:Itaberaba, Vitória da Conquista, Seabra, Irecê, Santo Antônio de Jesus and Eunápolis. Penitentiary System 1 prison unit in the capital 6 inland units (1)
Institutional Environment Favorable For Investment
Favorable Institutional Environment for Investment
PPP/Bahia – Economic Growth GDP BRAZIL X GDP BAHIA
Public Debt PPP/Bahia – Fiscal Indicators Fiscal Responsibility Law Personnel and Duties * RCL = Net Revenue