Pernambuco - Investment Opportunities

Project: Road Access and Bridge to Paiva Beach
Institution in Charge: Secretariat of Planning of the State of Pernambuco
Value of Investment: 1 billion dollars
Location: South Coast (Santo Agostinho Cape) - Pernambuco

The structuring of Paiva Beach as an international destination for tourism and leisure is a initiative of Odebrecht Building Company and of Cornelio Brennand and Ricardo Brennand Groups in partnership with the Government of Pernambuco. The planned urban infrastructure has the objective of attracting high level international tourism, as well as of expanding the supply of housing units and of leisure and service facilities to the population of the Metropolitan Area of Recife.

The Government of Pernambuco considers the Paiva Beach Project as very relevant for the State, due to its capacity to stimulate complementary investments, to create employment, income and tax revenues, generated by economic activities to be developed in the area. Also due to the expressive social impact that education, professional and technical training of the population will be able to induce, and which will consequently result in the increase of the IDH in the surrounding area.



The Project, as a whole, will require a private investment of around 1 billion dollars, and will be implemented in two stages, the first of which will demand an investment of US$ 250 million.

The Paiva Beach Project will constitute an important pole of metropolitan economic development which is expected to create very important and significant impacts such as:

a) the generation of an average of 4,440 jobs per year, considering both direct and indirect jobs, along the 20 years of the project implementation, mainly concentrated on building activities. With regard to tourism, leisure, commerce and services activities, the Paiva Beach Project has the capacity of generating approximately 38 thousand jobs, both direct and indirect, until its completion;

b) the attraction of high income level tourists flows (leisure, business and residential tourism) to Pernambuco, by offering an international pattern of infrastructure, not yet available in Northeast Brazil;

c) greater attention to preservation and sustainable use of the environment, deriving from the urbanistic conception of the Project, which takes advantage of the diversity of existing landscapes (mangroves, beaches and woods) in a responsible way. The rates of use and occupation of land indicated in the project promote the preservation of more vulnerable areas, avoiding their degradation.

Among the several government actions to support the Paiva Beach Project, two were elected as priority actions to be accomplished by means of Public Private Partnerships, through Sponsored Concession: (1) Construction, Operation and Maintenance of the bridge giving access to Paiva Beach and (2) Implementation and Maintenance of the Paiva Beach Road System.

Project: Pontal Project
Institution in Charge: Secretariat of Economic Development of the State of
Pernambuco
Value of Investment: US$ 63.5 million
Location: Petrolina / Pernambuco

The irrigation project of Pontal is located in the municipality of Petrolina, in the semi-arid region of Pernambuco, where the biggest irrigation pole of the country is. The Brazilian Government has invested approximately 70 million dollars to build part of the irrigation infrastructure, which stretches from the São Francisco River to the Pontal area, and has the intention of transferring this area to the private sector.

The Project is divided in two areas: South Pontal and North Pontal, with only one point of water capture in the São Francisco River. The engineering works already completed in Pontal (around US$ 146.00 million in nominal values) include the water capture infrastructure and the water conduction system to both North and South areas. Calculated at market prices, the private sector will need US$ 63.56 million to complete the common infrastructure to all the Pontal Project.

The State Government will be responsible for the exploitation of the irrigation public service, by means of the operation and maintenance of the infrastructure for common use, in order to guarantee the occupation and development of the irrigable areas of the Project, according to the rational use of soil resources.

The objective of Private Sector participation in the Pontal Project is to attract a company, or a companys consortium, with enough financial capacity to achieve the Projects goals, and capable of attracting, to the region, other enterprises with expertise in agricultural activities.

Company for the Development of the São Francisco Valley (CODEVASF), through several studies, has concluded that 7,716 hectares of the Pontal area are considered irrigable, due to their soil characteristics. This area is adequate for several cultures including tropical fruits, citric fruits and sugar cane, among others. The State Government is ready to give the Private Sector total freedom in the choice of products to be cultivated. The remaining 19,239 hectares of Pontal were considered as dry land, which can be used by the local population to develop traditional activities such as goat raising, or even the structuring of agricultural products processing units.

To guarantee the compatibility of financial interests of the private sector with Government objectives, regarding land occupation, the companies will receive the counterpart from the Government, only after proving the use of irrigable lands for agricultural activities. Also, the land will only be considered occupied when the commitment of the enterprise with the development of agricultural production can be proved.

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