PERNAMBUCO INVESTMENT OPPORTUNITIES

PERNAMBUCO

World s 6th biggest economy (World Bank). 7.5% growth in 2010 (Central Bank and World Bank). Projected 4% growth in 2011 (World Bank 2011). GDP Per capita U$10,162 (PPP UNPD 2011). U$ 352 billion in International reserves. U$ 358 billion invested at December 2010 (PAC). U$ 526 billion to be invested between 2011-2014 (PAC2). U$ 346 billion to be invested post 2014. Brazil Today

1.6 million Km². 51.6 million population (27.6%). Fastest growing economy in Brazil. 8.3% growth 2010 (Central Bank). GDP R$ 413.6 billion (BNB 2010). GDP Per capita U$7,487. U$80 billion invested in PAC 1. Northeast Brazil

Conditional Cash Transfers. 50% of the total $$ in social programmes goes to the Northeast. Continual Increase in the Minimum Wage (52% of the population indexed). Expanding offer of credit. State Investments in Infrastructure. Private Sector Investments. 25% of the PAC is earmarked for the Northeast. Tax breaks. 4 cities to host World Cup Brazil 2014. Tourism (54% of Brazilians travel to Northeast / 15.8% increase in 2009). Northeast Economic Drivers

São Luís MA Teresina PI BA State of Pernambuco CE Fortaleza RN Natal PB PE João Pessoa Recife SE AL Aracaju Salvador Maceió 8.8 million population GDP Per capita U$4,248. GDP grew 9.3% in 2010. 136.600 new formal jobs created in 2010. U$ 19.5 billion in PAC investments U$ 18.5 billion to be invested post 2010.

8 GDP EVOLUTION 6 4 2 0 2003-2006 2007-2010 2003-2006 2007-2010 024680 ERNAMBUCO RAZIL ORTHEAST PERNAMBUCO NORTHEAST BRAZIL Pernambuco, Northeast and Brazil GDP Evolution

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: U$ 102.5 million. ITAQUITINGA INTEGRATED RESOCIALIZATION CENTRE Purpose: exploit the Itaquitinga Integrated Resocialization Centre, preceded by works. Modality: Administrative concession. Term: 33 years. Cost: U$ 1.33 billion. 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: U$ 249 million. SANITATION AND WATER RESOURCES Purpose: Recife Metropolitan Region sewerage system expansion. Investment: over U$ 2.01 billion. Term: 12 years for the works. Financial compensation in order not to increase fees. Public Private Partnerships (PPP)

Estimated investment: U$ 1.74 billion. Localization: Near Goiana, distant 63 km from Recife. North Coast Port - Less environmental impact alternative

Investment: US$ 13.3 billion. Processing daily capacity: 230,000 oil barrels. Job generation: During construction: 24,000 jobs. In operation: 1,500 direct jobs and 4,500 indirect jobs. Abreu e Lima Oil Refinery

Total investment: U$ 2.86 billion. PTA plant: U$ 1.39 billion; Polyester yarn unit: U$ 961.2 million; PET resin unit: U$ 510.71 million. Jobs generation Construction stage over 11 thousand jobs. Operation 1,800 jobs. Petroquímica Suape

Estimated investment: U$ 1.04 billion. Jobs generation: 456 direct jobs. Area: 364 hectares. Production capacity: 1.000.000 tons/year of hot-rolled, cold rolled and coated. Suape Steelworks Company

Investment: U$ 1.04 billion. Largest naval and offshore building and repairing shipyard in southern hemisphere. 160,000 steel tons / year. Area: 162 hectares. Dry-dock 400m high, 73m wide and 12m deep. Naval Cluster (Atlântico Sul Shipyard)

Naval Cluster POMAR SHIPYARD Ships building and naval projects. Investment: U$ 173.7 million / Area: 100 hectares. CMO SHIPYARD Construction of modules for offshore platforms (FPSO). Investment: U$ 416.9 million / Area: 40 hectares. NAVALMARE SHIPYARD Offshore structures. Investment: U$ 144.8 million / Area: 10,5 hectares. GALICTIO SHIPYARD Construction and repair of vessels. Investment: U$ 451.7 million / Area: 40 hectares.

Installation of wind turbine plant of the Impsa Wind Argentine group, with a capacity to produce 200 wind turbines of 1.5 MW per year. Installation of wind mill towers plant of the Gonvarri Spanish group, with capacity to produce 1,000 towers / year. Wind energy cluster Wind mill towers Gonvarri (Gestamp Wind Steel) Wind turbines Wind Power (Impsa)

INSTALLATION OF WIND FARMS IN: Gravatá; Pombos; Vitória da Santo Antão and Macaparana (Gonvarri / Gestamp Spanish group); Fernando de Noronha (Folkecenter Danish Institute); Tacaratú (ENEL Italian group). Wind energy cluster Blades for wind generators

Location: Goiana. Investment: U$ 2.3 billion. Production Capacity: 250 thousand vehicles per year. Area: 1400 hectares. Jobs generation: 4.5 thousand direct jobs (operating at full capacity). Automotive cluster (anchor: FIAT Factory)