PERNAMBUCO
INVESTMENT OPPORTUNITIES
State of Pernambuco
Capital
Recife
Population (2010 Census)
8,796,032
Income per capita (2008)
± R$ 10,000
GDP (2010)
US$ 52.5 billion
SERTÃO
RMR
AGRESTE
SERTÃO DO
SÃO FRANCISCO
ZONA
DA MATA
Strategic Location
350 km
4 state capitals
3 international airports
2 regional airports
4 international ports
12 million inhabitants
Over 35% Northeast GDP
500 km
700 km
7 state capitals
5 international airports
6 international ports
1 river port
20 million inhabitants
90% of Northeast GDP
Human Capital in Pernambuco
 5 universities and 5 advanced campi
in inner state.
 Numerous research institutes and
professional schools.
 Over 3.000 PhDs and masters.
 Over 2.300 National Research Council
(CNPq) researchers.
LEADER IN THE NORTHEAST
Pernambuco
Northeast region logistic center
 4 Airports (Recife, Petrolina, Fernando de
Noronha e Caruaru).
 6 regional airdromes.
 2 ports (Suape e Recife).
 98 distribution centres.
 112 incentivized import centers (2007 –
2010).
Pernambuco – GDP Evolution
Pernambuco’s Gross Domestic Product Evolution
in current prices / 2007 ‐ 2010
100.00
90.00
+15,78%
87.17
75.29
80.00
70.44
R$ billion
70.00
62.22
60.00
50.00
40.00
30.00
20.00
10.00
0.00
2007
2008
2009
2010
Pernambuco GDP x Brazil GDP
Pernambuco x Brazil GDP Evolution
6.9
7
6
5
4.5
4
4.3
3.8
3
2
1
0
2009-2006
2007-2010
Pernambuco
Brasil
Jobs generated / Unemployment rate
Jobs generated in Pernambuco –
Periods’ annual averages comparison
Unemployment rate –
Recife Metropolitan Region
61,637
70,000
16
60,000
14
+89,16%
50,000
40,000
14.6
13.8
12
8.8
10
32,585
8
6
30,000
4
2
20,000
0
2003
10,000
0
Média 2003/2006
Média 2007/2010
2004
2005
2006
2007
2008
2009
2010
Investments in Suape
State Government Investments in Suape
Total Investments made by
Suape Company (Own and
State resources)
300
1200
1,023
250
R$ million
800
R$ million
1000
+491,33%
600
400
306.3
350
+332,02%
200
150
70.9
100
173
200
50
0
0
2003-2006
2007-2010
2003-2006
2007-2010
 In the last 04 years, resources invested in SUAPE doubled total investments in the previous
30 years.
ICMS (state service tax) revenue
Pernambuco ICMS (state service tax) revenue evolution
2004 - 2010
10 000
8 819
9 000
7 615
8 000
6 414
R$ million
7 000
6 000
6 792
+15,8%
5 212
5 000
4 000
3 000
2 000
1 000
0
2004
2005
2006
2007
2008
2009
2010
Fiscal Incentives – PRODEPE
Special Industrial Group
Special Pharma-chemicals
– exclusively within the
Pharma-chemical Cluster
Special automotive
industry
Special steel Industry
Laminated aluminium
and flat glass industry
Deemed credit of 95% on the monthly ICMS debt balance.
12 years period, extendible for another 12 years.
Exemption of ICMS rate difference in interstate acquisitions of raw materials to be used in
the industrial process.
Deferment of ICMS rate difference in assets (for plant installation) interstate/import tax
rates.
Fiscal Incentives – PRODEPE
Priority Industrial Group
Agribusiness (except
sugarcane)
Pharmaco-chemical
Electro-electronics
Textile
Nonmetallic minerals
(except cement and
red ceramics)
Plastic
Beverages
Metal-mechanical
Furniture
Fiscal Incentives – PRODEPE
Priority Industrial Group
12 years period, extendible for another 12 years.
Deemed ICMS credit (in %) on the monthly ICMS debt balance, depending on location:
• 75%
• 85%
• 90%
• 95%
within the Recife Metropolitan Region;
in the Mata zone (90% for food industry);
in the Agreste region;
in the Sertão region.
Exemption of ICMS rate difference in interstate acquisitions of raw materials to be used
in the industrial process.
Deferment of ICMS rate difference in assets (for plant installation) interstate/import tax
rates.
Fiscal Incentives – PRODEPE
Relevant Activities
 Encompass sectors not specified among those belonging to priority and special industrial groups.
 Sectors that do not receive incentives:
Within the Recife Metropolitan Region:
deemed credit of 47.5% of tax due.
Quarrying
Sugar and alcohol
agribusiness
Out of Recife Metropolitan Region:
deemed credit of 75% of tax due.
8 years period, extendible for another 8
years.
Liquefied gas (LPG)
packaging industry
Wheat milling
Fiscal Incentives – PRODEPE
Distribution Centres
15 years period, extendible for another 15 years.
When sending incentivized products to other federal units, deemed ICMS
credit equivalent to 3% of these interstate exits.
When bringing products coming from industrial plants located in other
federal units: deemed ICMS credit equivalent to 3% of these transferences.
Domestic sales (within Pernambuco) have no incentives.
Fiscal Incentives – PRODEPE
Imports Wholesale Commerce
7 years period, extendible for another 7 years.
Deferment of ICMS due in imports for when subsequent interstate sale by importer.
For domestic sales (within Pernambuco), deemed ICMS credit when subsequent sale by
importer, according to the following percentages:
•
•
•
•
3.5% of
6% of
8% of
10% of
imports
imports
imports
imports
cost,
cost,
cost,
cost,
when
when
when
when
the rate
the rate
the rate
the rate
is less than or equal to 7%.
exceeds 7% and is less than or equal to 12%.
exceeds 12% and is less than or equal to 17%.
exceeds 17%.
For interstate sales, deemed ICMS credit equivalent to 47,5% of due tax.
Other Incentives
 PRODINPE – Pernambuco Naval Industry Development Programme.

PRODEAUTO – Pernambuco Automotive Sector Development Programme.

Oil Refinery.

Polyester Cluster.

Textile Industry.

PRÓ-VINHO – Wine Industry

PRÓ-CALÇADOS – Pernambuco Leather and Shoe Industry Program.

Federal Government incentives.
Public Private Partnerships (PPP)
Paiva Beach Road System

Purpose: exploit the Paiva Beach
access bridge and road system,
preceded by works and services.

Modality: sponsored concession.

Term: 33 years.

Cost: R$ 144 million.
Public Private Partnerships (PPP)
Itaquitinga Integrated Resocialization Centre

Purpose: exploit the Itaquitinga
Integrated Resocialization Centre,
preceded by works.

Modality: Administrative concession.

Term: 33 years.

Cost: R$ 287.4 million.

Resources: BNDES (70% - 80%) plus
successful bidder equity (20% - 30%).

Capacity: 3,126 inmates.
Public Private Partnerships (PPP)
2014 World Cup Multipurpose Arena

Purpose: exploit the 2014
World Cup Multipurpose
Arena, preceded by works.

Modality: Administrative
concession.

Term: 33 years.
 Cost: R$ 379,263,314.00.
Public Private Partnerships (PPP)
Sanitation and Water Resources

Purpose: Recife Metropolitan Region
sewerage system expansion.

Investment: over R$ 3.5 billion.

Term: 12 years for the works.

Financial compensation in order not to
increase fee charged.
Infrastructure
Arco Metropolitano (Metropolitan Arch)
 Link between Itapissuma and Suape, bypassing
Recife.
 Importance: Will integrate northern areas or
Recife Metropolitan Region to Suape Port and
Industrial Complex, alleviating traffic
congestion and enhancing urban mobility.
 Investment: R$ 1.8 billion.
Fonte: Agência Condepe/Fidem/AJA Consultoria, 2010.
Infrastructure
Capibaribe Melhor Project

Purpose: To streamline the
urban patch of the
Capibaribe river.

Term: 5 years.

Resources: US$ 46.8 million,
70% financed by BIRD.
Infrastructure
Capibaribe Melhor Project
 Urban, environmental and
social interventions.
 Proposed works:

Parks and green areas.

Water and sewer
system.

Drainage system.

Accessibility and urban
mobility.
Infrastructure
North-South Route
 Implementation of an Integrated Transport Network - North-South Axis.

Exclusive route and hub terminals.

Comfortable vehicles with greater level boarding capacity.

Integration with other important transport axes (subway and transverse bus axes).
Infrastructure
North-South Route
CAJUEIRO
SECO
IGARASSÚ
AERONAUTICA
PELÓPIDAS
SILVEIRA
PE 15
300,000 passengers/day.
 Bus stations every 500m, approximately.
 5 hub terminals.
Infrastructure / East-West Route
Bus Rapid Transport (BRT) and Monorail
 Exclusive bus lane.
 Bus / monorail stations every
500m, approximately.
 Ticketing in advance.
 Level boarding.
 Punctuality.
 Vehicles average speed
increased.
 Accessibility guaranteed for
all.
Infrastructure
Cidade da Copa / World Cup City
 Construction : 2010 - 2012.
 Public interventions:

urban mobility (express
way);

infrastructure; and

logistics.
Infrastructure
Cidade da Copa / World Cup City
NORTH
Pharmaceutical cluster
Tourism cluster
Metropolitan Scale
 Conurbation (Recife, Olinda,
Paulista, Jaboatão, Camaragibe).
 Cidade da Copa / World Cup City
World Cup City
CENTRE
in São Lourenço, Recife
Services cluster
Metropolitan Region’s
Tourism cluster
geographical centre.
SOUTH
Recife Port - 19 Km
SUAPE Port and Industrial
Complex
Airoport - 19 Km
Tourism cluster
Passengers Hub Terminal – 2Km
29
Infrastructure
Transnordestina Railway
Railway linking the Brazilian
“cerrados” to Pecém (Ceará)
and Suape ports.
 Increases Pernambuco’s
economic competitiveness.
 Strengthening Suape as a
Hub Port.
Infrastructure
Transposition of the São Francisco River
700 km of canals and over
1000 km of reservoirs,
rivers and dams.
Petrochemical Cluster
Main enterprises
 Anchor company: Abreu e Lima Oil
 Polyester Yarn (POY) factory, which
Refinery which will produce
will produce important raw
Naphtha, an important raw material
material for the textile and clothing
for the petrochemical industry.
industry of Pernambuco.
 Purified Terephthalic Acid (PTA)
plant, which will produce raw
material for polyester production
(demanded by Petroquímica Suape).
 PET resin industry (Mossi & Ghisolfi
– M&G).
Abreu e Lima Oil Refinery
 Investment: US$ 13.3 billion.
 Processing daily capacity: 230,000 oil
barrels, meeting most of the diesel
demand in the North and Northeast
regions.
 Products: diesel, coke, coke gas, LPG
and naphtha (raw material for the plastic
resin).
Petrochemical Cluster- Petroquímica Suape


Total investment: R$ 4.94 billion.

PTA plant: R$ 2.40 billion;

Polyester yarn unit: R$ 1.66 billion;

PET resin unit: R$ 882 million.
Installation current stage:

PTA plant: 75.68%.

Polyester Yarn Unit: 54.67%.

PET resin unit: 49.79%.
Naval Cluster
Atlântico Sul Shipyard
 Investment: US$ 1 billion.
 Largest naval and offshore building
and repairing shipyard in southern
hemisphere.
 160,000 steel tons / year.
 Area: 1.56 million m².
 Dry-dock 400m high, 73m wide and
12m deep.
Naval Cluster / Promar Shipyard
(PMJR Group & STX Brazil) and MPG Shipyard
Promar Shipyard:

Ships building and naval projects.
 Investment: R$ 630 million.

Area: 100 hectares.

Job Generation: 1500 direct and 6000
indirect jobs.
MPG Shipyard

Offshore modules, ships and wind
energy equipment builder.

Investment: R$ 252 million.

Area: 33.5 hectares.
 Job Generation: 1200 direct and
6000 indirect jobs.
THANK YOU!