Alan Long, Principal Commercial Officer, and Patrick Levy, Commercial Specialist

U.S. Consulate - Rio de Janeiro, Brazil

Rio de Janeiro will host the first-ever Olympic Games in South America in August- September 2016, as well as some of the games for the 2014 World Cup and the World Military Games in July 2011.

These events will generate numerous trade and investment opportunities in several areas, for both games and the city.

A great time for Brazil and for Rio Political alignment/economic growth First South American Country to host the

Olympics. Elections in 2010/confidence that plans will

move forward A chance to improve Brazil’s infrastructure

and housing through PPP on all levels of government.

Over US$ 50 billion in investments from 2010-2016 for the World Cup and the Olympic Games

Special tax incentives likely to attract FDI Projects are moving forward quickly due to

harmonious relationships among all levels of government

Preparations are being made for the:◦ Military Games – 2011◦ Soccer Confederation Games – 2013◦ World Cup in 12 cities in 2014◦ Olympics and Special Olympics in 2016◦ Urban Development plans to pass on benefits

after the games These events are catalyzing infrastructure

development

Olympic Public Authority: ◦ Possibly led by Minister of Sports Orlando Silva◦ Responsible for all procurements

BNDES: national development bank w/HQ in Rio◦ Lending and investments to support

infrastructure development for World Cup, Olympics, PAC

◦ U$1billion for new hotels – more needed◦ transportation infrastructure◦ Co-finance agreement in pipeline with Ex-Im

SENASP (Ministry of Justice): responsible for security

Mayor’s office – Special Olympics Secretariat◦ Responsible for management, oversight, planning

Various projects planned linked to urban development◦ Building on PAG infrastructure ◦ Transportation between Barra and Rio◦ Hotels (17 already licensed)◦ Stadiums (Olympics and World Cup)◦ Golf Course◦ Green Building Initiative◦ Port and Downtown Renewal

•Secretary of Sports, Tourism and Leisure•Secretary of Transportation•Secretary of Development•Secretary of Public Works•Governor’s office

•international outreach •liaising with Federal and Municipal Governments

The Olympic Committee (COB), with a budget of over US$ 2.5 billion for the organization and realization of the Games

Brazilian Soccer Federation (CBF) works with FIFA to plan and administer the World Cup Games

The Brazilian Economic and Development Bank (BNDES)

Rio Construction Association (Sinduscon Rio) Rio Federation of Industries (FIRJAN) American Chamber of Commerce (AmCham) Brazil-U.S. Business Council Ex-Im Bank (increasingly active in Brazil) OPIC (Housing, project finance, guarantees) USTDA (With an office in São Paulo)

ACE Advanced technology

◦ ICT◦ ITS◦Energy efficient technologies

Hotels Financial Services Security (a Trade Mission will come to

Brazil in September)

Note that all procurement for the games will be done through Public Tenders, not yet opened as of August 2010.

To participate in those tenders, foreign companies are required, by law, to have a local presence (agent, representative, joint-venture, or distributor).

Companies that doesn’t participate directly to the tenders may sell products or services to the bid winners – but, again, the need for a local presence is required.

The Olympic Committee and some Governmental entities prefer not to receive visits of private companies, as this could preclude those companies to participate in tenders.

In this case the recommendation for interested companies is to attend to upcoming Trade Shows.

An “unofficial” requirement for interested parties is:

PREVIOUS EXPERIENCE WITH SPORT EVENTS

- Be it in the building or renewal of sports arenas, supply of products and services for it,

or even with previous Olympic Games.

- Un-experienced companies may not be considered as potential suppliers.

WORLD CUP 2014 (Held in 12 Brazilian Cities)

Infrastructure: US$ 51 billion Stadiums: US$ 2.7 billion

Airport renewals: US$ 3 billion -----------------------------------------

TOTAL: US$ 56.7 billion

(Not including the High Speed Train Rio/Sao Paulo, which might not be ready by 2014, and which is

valued in US$ 20 billion)

Although more than half of Rio 2016 venues are ready since Rio hosted the 2007 Pan American Olympic Games, about 20 new facilities will be built:

Aquatic sports stadium - US$40 million.

Olympic Park to host gymnastics, cycling, handball, etc. - US$200 million.

Olympic village - US$450 million.

Olympic Tennis Center -US$45 million

Rowing stadium at Rodrigo de Freitas Lagoon - US$2 million.

Copacabana Beach Volley Arena-US$7 million.

Maracanã Stadium renovation- US$400 million before 2014.

30 hotels planned to handle increase in visitors. 17 licenses so far Several hotels are being refurbished. taxes incentives will create opportunities for

refurbishment, building, acquiring or operating hotels.

Olympic Village Clinic. 3 new state-of-the art hospitals

Estimated investment in infrastructure~US$50 billion, including US$5 billion in logistics upgrades at seaports and airports.

The main projects include:◦ Modernizing and enlarging two airport terminals ◦ Highway widening to accommodate “Olympic lanes”◦ The Port of Rio revitalization to include a new 30,000

square meter leisure area featuring bars, restaurants, an amphitheater, museum, aquarium, a multi-use space and parking (R$4b)

◦ Port dredging◦ Two new subway lines (R$4b)◦ Bus Rapid Transit (BRT) system (U$1b)◦ Housing projects (including low income housing)◦ Water sanitation.

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