CONCESSIONS OF RAILROADS

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CONCESSIONS OF RAILROADS CLEILSON
QUEIROZ VALEC-ENGENHARIA,CONSTRUÇÕES E FERROVIAS
S.A.
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NORTH - SOUTH RAILROAD (EF 151)

• THE SUB-CONCESSION OF THE SECTION PALMAS (TO)
  ESTRELA DOESTE (SP)

WEST - EAST INTEGRATION RAILROAD(EF 334)

• THE SUB-CONCESSION OF THE SECTION FIGUEIRÓPOLIS
  (TO) ILHÉUS (BA)

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VALEC - Engenharia, Construções e Ferrovias S.A.

• Public company of the Ministry of Transport .
• Purpose construction and operation of
  Brazilian
• railway infrastructure .

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 RAILWAY CONCESSIONS OF VALEC
BELÉM
EF 151
BOQUEIRÃO DA ESPERANÇA
FIGUEIRÓPOLIS
EF 334
ILHÉUS
EF 234
PORTO MURTINHO
EF 267
PANORAMA
LITORAL DO RIO DE JANEIRO
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NORTH - SOUTH RAILROAD CURRENT STAGE OF
CONSTRUCTION
BELEM
DESIGNED
ACAILANDIA
CONCLUDED
COLINAS DO TOCANTINS
UNDER CONSTRUCTION
ANAPOLIS
DESIGNED
ESTRELA DOESTE
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NORTH - SOUTH RAILROAD SUB-CONCESSION SECTION
Belém
SÃO LUIS
Palmas
EF 151
TOTAL EXTENSION OF THE SECTION TO
BE GRANTED 2,600 MILES
Estrela DOeste
RIO DE JANEIRO
ESTIMATED INVESTMENT R 3,5 bilhões
SANTOS
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WEST- EAST INTEGRATION RAILROAD SUB-CONCESSION
SECTION
Belém
SÃO LUÍS
ESTIMATED INVESTMENT R 3 BILHÕES
FIGUEIRÓPOLIS
EF 334
TOTAL EXTENSION OF THE SECTION TO
BE GRANTED 2,384 MILES
ILHEUS
EF 151
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AREA OF INFLUENCE OF THE NORTH - SOUTH RAILROAD
BRAZILIAN SAVANA
EXTENSION OF SAVANA 1,8 milhão km2
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PRODUCTIVE POTENTIAL OF SUB-CONCESSIONS AREA
OF INFLUENCE 

• Fertilizer
• Alcohol
• Derived from petroleum
• Containers
• Iron ore
• Bauxite

• Soybeans and derivatives
•    Soybean meal
•   Soybean oil
•    Maize
•    Fertilizer
•    Sugar
•    Cotton

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ESTIMATED DEMAND FOR TRANSPORT (TON.MIL)
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THE SUB-CONCESSION PROCESS

• Term of sub-concession 30 years
• Provides resources fully paid for the VALEC,
  as stipulated in the contract schedule and the
  announcement of the sub-concession.

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THE LEGAL FRAMEWORK OF THE SUB-CONCESSION PROCESS

• Law nº 8.987 ( February 13, 1995)
• Law nº. 9.074, (June 7, 1995 )
• Article 175 of the Federal Constitution
• Law nº 8.666 ( June 21, 1993)
• Law nº 9.648 ( May 27, 1998)
• Announcement of the sub-concession, and annex

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REQUISITES FOR THE PARTICIPATION OF COMPANIES

• The participation of individual Brazilian and
  Foreign Companies is
• permitted.
• The participation of consortiums between
  Brazilian and / or Foreign
• Companies in one Consortium is also
  permitted.
• Acquisition of the Bidding Documents.
• The presentation of a commitment to form a
  consortium indicating
• the participation of each member of the
  consortium and the leader.

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STAGES OF THE BIDDING PROCESS

• FIRST STAGE OF THE BIDDING PROCESS
• PRE-QUALIFICATION
• (Special Bidding Committee of VALEC)
• Legal Qualification
• Technical Qualification
• Economic and Financial Qualification
• Clean Fiscal Standing

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STAGES OF THE BIDDING PROCESS
Delivery of the BOVESPAs instructions   to the
pre-qualified companies
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STAGES OF THE BIDDING PROCESS

• SECOND STAGE OF THE BIDDING PROCESS AUCTION IN
  THE BOVESPA(The Sao Paulo Stock Exchange)

• Deposit of the Bid Guarantee (two days prior
  to the Auction)
• Proceedings in accordance with the BOVESPA
  Manual
• Adjudication of the result based on the
  Highest Payment offered
• for the grant of the Concession
• Disqualification of Proposals below the Minimum
  Value established
• for the grant of the Concession
• Confirmation of the Winning Bid by the
  auctioneer
• Publication of the Result of the Auction
  indicating the winning company
• Creating a Specific Purpose Society for signing
  the contract

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SUB CONCESSION PAYMENT

• NORTH - SOUTH RAILROAD ( EF 151)
• 1st installment - 50 of the winning bid of the
  auction upon financial settlement - the signing
  of the sub concession - in conclusion of
  construction of the of the section Palmas (TO)
  Anápolis (GO), scheduled for December 2010.
• 2nd installment - 25 of the winning bid in
  conclusion of construction of the Ouro Verde de
  Goias (GO) - Rio Verde (GO), scheduled for July
  2011.
• 3rd installment - 25 of the winning bid in the
  auction in conclusion of construction of the
  section Rio Verde (GO) Estrela DOeste (SP),
  scheduled for December 2011.

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SUB CONCESSION PAYMENT

• WEST- EAST INTEGRATION RAILROAD ( EF 334)
• 1st installment - 40 of the winning bid of the
  auction upon financial settlement - the signing
  of the sub concession - in conclusion of
  construction of the section Ilhéus (BA) - Caetité
  (BA), scheduled for July 2011.
• 2nd Tranche - 30 of the winning bid in
  conclusion of construction of the section Caetité
  (BA) - Correntina / Barriers (BA), scheduled for
  July 2012.
• 3rd installment - 30 of the winning bid in the
  auction in conclusion of construction of the
  section Figueirópolis (TO) - Correntina /
  Barreiras (BA), scheduled for December 2012.

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VALEC Engenharia, Construções e Ferrovias
S.A. SAN Quadra 3 Sala 1100 Edifício Núcleo
dos Transportes Brasília DF www.valec.gov.br
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THANKS !