Leon Claudio Myssior, Sinaenco's architecture vice-president

Québec – Bureau São Paulo

Working in Brazil2014th Soccer World Cup2016th Olympics

> Since 1988

> 18 thousand member companies

> Present in most of brazilian states

The National Union of Architecture, Engineering and Consultancy

"Showcase or Liability?"

It was from this vision that Sinaenco began a series of diagnoses and actions all over the country (in 2006), to understand the opportunities and risks that a soccer World Cup offers to the Host Country, regarding not only the stadiums, but a wide range of works and interventions such as public transport and urban mobility, accessibility, infrastructure, sanitation, energy, telecommunications, hospitality, tourism and health.

Brazil | Statistics

7.6% (2010)

15.5% (2009)

49.3 (June 2009)

StatisticsGDP

$2.023 trillion (nominal)$2.182 trillion (PPP)

GDP growth

GDP per capita $10,471 (2010) (nominal; 55th)$11,289 (2010) (PPP; 71th)

GDP by sector agriculture: 5.5% industry: 28.7% services: 65,8% (2007)Inflation (CPI) 4.44% (Aug 2010)

Populationbelow poverty line

Gini indexLabour force 103.6 million (2010 est.)Labour forceby occupation

agriculture: 20%, industry: 14% and services: 66% (2003 est.)

Unemployment 5.7% (November 2010)

Main industries

airplanes, steel; iron ore, coal; machine building; armaments; textilesand apparel; petroleum; cement;chemicals; fertilizers; consumer products, including footwear, toys, and electronics; food processing;transportation equipment, includingautomobiles, rail cars and locomotives,ships, and aircraft; electronics;telecommunications equipment,satellites, real estate, brewing, tourism

Ease of Doing Business Rank 127th

Statistics

Statistics – cont.

Landings InternationalDisembarkation of

passengers on international flights - Jan 2009 to 2011

Domestic ArrivalsQuay on Domestic Flights -

Monthly Variation 2010/2011

> Passengers (2011 estimate): 180 million passengers/year> Air Cargo (2011 estimate): 1 million tons/year

Brazil | Investments

Investments required

Can be divided into two major groups:

> The key to hosting the Games:> Arenas> Hospitality> Accessibility and mobility

> Those that make it possible to leave a legacy for cities and virtuousness for the Host Country.

Accessibility to the stadiums and the hospitality poles

> Priority for investments within the urban infrastructure:> Ensure good accessibility by mass transit in stages> Facilitate access to the poles of hospitality and its connection to the stadiums> Facilitate mobility between the airports and the poles of hospitality

> The improvement of mobility is a broader need that goes beyond the 2014th World Cup and the 2016th Olympics:

> For game days, special operations to ensure traffic mobility> Specifically Brazil and Sao Paulo have great experience in big events, such as Formula One race

Entrance to the country and regional movement

> Given the distances, in relation to the outside and between host cities, the main movement of people (internal and external) to follow the games of the 2014th Cup and 2016th Olympics will be by air.

> The air companies will be able to meet demand, but the bottleneck is in the airport infrastructure and superstructure.

> The airports need to be substantially enlarged (some modernized) both in runway and passenger terminal.

> The air control needs to be improved.

> Care services to users, both at entry and the output, will need to be substantially improved:

> Procedures, facilities, software and staff training.

PAC - Growing Acceleration Program

PAC is a government program that has been implemented in the past four years, a infrastructure investment of $ 300 billion in transportation, energy, sanitation, housing and water resources.

The expansion of investment in infrastructure is a fundamental condition for the acceleration of sustainable development in Brazil.

Thus, the country can overcome the bottlenecks in the economy and encourage increased productivity and reduced regional and social inequalities.

The set of investments is organized into three main vectors: > Logistical infrastructure, involving the construction and expansion of highways, railways, ports, airports and waterways; > Energy Infrastructure, corresponding to electrical generation and transmission, production, exploration and transportation of oil, natural gas and renewable fuels, and Social;> Urban Infrastructure, sanitation, housing, subways, commuter rail and water resources.

PAC - Growing Acceleration Program – cont.

The Logistics Infrastructure planned expenditures from 2007 to 2010 is $ 20 billion; for Energy, $ 160 billion, and for the Social and Urban, $ 100 billion.

A program of this magnitude is only possible through partnerships between the public and private investor, added to a constant articulation between the federal entities (states and municipalities).

The plan considered the construction, upgrading, duplication and recovery of 45,000 km of roads, 2,518 km of railways, expansion and improvement of 12 ports and 20 airports, generating over 12,386 MW of electricity, construction of 13,826 km of transmission lines, as well as new petrochemical plants, pipelines, and biodiesel plants.

For the housing, the PAC planned investments of $ 60 billion, benefiting four million households. The program was also planned to result in water and sewage services to 22.5 million Homes, and water infrastructure to 23.8 million people.

But the government, due to very poor analisys, bad diagnosis and misplanning issues, is still struggling to surpass meres 15% of the planned.

PAC - Growing Acceleration Program – cont.

PAC 2 - Growing Acceleration Program part 2

PAC 2 is nothing more than the original PAC repacked and with new marketing aproach, now facing new chalenges:

> Most of the infrastructure investments are urban large interventions and need years to be propperly deployed; unfortunately most of them are still in the feasibility and enviromental studies phase;

> airports are nowadays one of the biggest bottlenecks we have, constraining development, hampering regional development and threatening the success of the Cup and the Olympics.

2014th Soccer World Cup and 2016th Olympics

The meaning of 2014th SWC and 2016th Olympics

> The 2014th Soccer World Cup and the 2016th Olympics in Brazil will both be landmark in the countries development path

> Brazil will be a major destination for international investment in the coming years

> Brazil is a country of vast territory, even with high potential for occupancy, with few environmental risks, large population with sustained upward mobility, stable democracy, monetary stability, food security, plenty of water and renewable energy.

Brazil | Expectation

Construction sector expects to build 2.1 bln by 2020 m2 for housingFolha de S. Paulo - São Paulo / SP - MONEY - 28/02/2011

By 2020 Brazil will have to build 2.1 billion square feet of buildings - the equivalent of more than three times the size of Singapore, according to Abramat (industry association of construction materials).

This volume would be able to meet a housing need of 20 million new homes between 2009 and 2020, according to the organization, which based its calculations on residential projects an average of 105 m2 area.

The size of the numbers may alert the market not only by the amount of land that will be required (approximately 900 million square meters), but also by the ability of the workforce, with 2.7 million additional jobs.

Brazil will invest U.S. $ 3.3 tri 2014O Estado de S. Paulo - São Paulo / SP - ECONOMY - 28/02/2011

Petroleum and Energy will contribute $ 500 billion, study finds BNDES Alexandre Rodrigues - O Estado de S. Paulo

The binomial oil and electric energy will pull the country's growth with investments totaling more than half a trillion dollars over the next four years. The account was made by Banco Nacional de Desenvolvimento Economico e Social (BNDES), to upgrade its mapping of investments that points to a total reversal of $ 3.3 trillion into the economy between 2011 and 2014.

The figure was designed from information on prospective projects in industry, construction and infrastructure in 15 sectors, which represent half of total investment in the economy. This figure reached U.S. $ 1.6 trillion, 62% more than was invested between 2006 and 2009. The figure also represents a doubling of the bank had detected in the previous survey to industry and infrastructure for the period 2010-2013.(...)The chain of oil and gas called attention to the jump from the $ 295 billion in the previous survey to $ 378 billion in four years starting this year. In comparison with the $ 205 billion that invested between 2006 and 2009, the exploration of oil and gas picks up the industrial growth with a 84% increase in investments by 2014.(...)The highlight is the 260% growth in investments in ports, which will total $ 18 billion in four years.(...)

High demand for engineers in construction leaves AlertCBIC - Brazilian Chamber of Construction Industry - Brasilia / DF - News

Registration of new professionals not included with the vacancy rate in the industry; groups speak in importing hand workPaul Justus and Eve Robertson

The country's growth is creating a gap between the creation of vacancies for professionals with higher education sector and the civil daconstrução registration of new engineers .

Last year, for example, as they were created 11,559 jobs for graduates in this sector, the Regional Councils of Engineering, Architecture and Agronomy (Creas) throughout Brazil have granted registration to 6,529 engineers civilians. Although not included in the accounts hiring architects, data sinalizamo squeeze gripping the industry.(...)"The figures are alarming, especially when analyzing the number of students who attend and leaving for the faculties of engineering." Melo says dropout further complicates the task of meeting the demand. "The formation of the second degree is very poor, so many students drop out of courses after repeated failures in subjects like Calculus," he says. Shortages for the Institute of Applied Economic Research (IPEA), to consider the level of growth of 4.5% in 2011, Brazil should have shortages in specific areas of engineering (see more details in the article opposite). "Looking back, we see increased demand since 2004.(...)Faced with the problem, bedridden Brazilian Construction Industry (CBIC) has already initiated talks with the Embassy of Portugal to discuss the possibility of importing engineers from that country.

Projects of infrastructure and public services need look no physical worksEconomic Value - São Paulo / SP - BRAZIL - 14/03/2011

To meet the increasing demand and enable the rates of economic growth envisaged over the next year, Brazil will need to invest anything between $ 172 billion and $ 291 billion in logistics and transportation by 2023. The horizon of investment consider what has already been applied since 2008, but the assessment of Bernardo Tavares de Almeida and Hélcio Tokeshi, expenditure will be made only if the country change the way you plan and carry out projects of infrastructure .

In a chapter of the book "2022: Proposals For A Better In Brazil the Bicentennial Year" in dealing with the bottlenecks of infrastructure, Almeida Tokeshi made a diagnosis of current situation and propose the creation of a "modern system of public services." The first change is conceptual: the emphasis of projects should be in the public services and not the work physically.

"We, the citizens, less interested in the physical structure that allows us to have public services, and more the quality of those services. Whether the school building is new, old or retired, what matters is that portfolios have comfortable rooms ventilated and well lit, clean bathrooms and patios, and other services essential to learning, "say the authors. "By highlighting the service passed to subordinate technical needs of the users of infrastructure . "(...)

President Dilma announces $ 18 billion for 2014 CupO Diário - Maringá/PR - ESPORTES - 16/03/2011

The president Roussef said on Tuesday that Brazil's investment in infrastructure to host the World Cup in 2014 should reach R $ 18 billion.

With upbeat speech, she projected benefits to the country's development, as with the emergence of new jobs - has even predicted, including the creation of 330,000 direct jobs and another 400,000 temporary.

In addition to reform and build stadiums, Brazil needs to make further investments, such as the expansion of airports, considered the main bottleneck in the country, and improvement in key sectors such as transport. According Dilma, these investments, for the most part, are federal.

"The World Cup will contribute to our development project, creating jobs and increasing income of the worker. estimate that it will create 330 000 direct jobs and 400,000 temporary. The event will make Brazil an international showcase - hope to receive about 600 000 tourists. In the infrastructure sector, investments will reach $ 18 billion, with 68% share of the federal government, "said Dilma in interview to talk with President Blog Plateau.(...)

Mesmo com obras, aeroportos ficarão saturados na Copa, diz estudoIG - Economia - - EMPRESAS - 22/03/2011

The investment of $ 4 billion in the reform of Brazil's main airports, announced by Infraero last year, will not suffice to prevent Brazil hold the 2014 World Cup with saturated airports. This is the conclusion that a study has just been published by the Federal University of Rio de Janeiro (UFRJ), which estimates an increase of 60 million in passenger numbers in 2014 using the 16 airports in the cities that will host the games.

The study concluded that the reform of Infraero to meet demand from the airline industry in 2014 is underestimated. In reaching these conclusions, the professor UFJR Elton Fernandes, coordinator of the study took into account the pattern of space per passenger established by the Federal Aviation Administration, an agency which regulates civil aviation in the United States. It said airports should have at least 23 square meters for each domestic passenger and 14 for international. "After the works, there will be a shortage of 366 thousand square meters to meet demand in 2014, "concludes the professor, in the study.(…)The Soccer World Cup in Brazil is expected to generate an additional movement in the airline industry than 3 million passengers in 2014. For Professor Fernandes, the bulk of tourists can cause collapse of the airline industry during the World Cup, caused by an increase in the use of an infrastructure that is already saturated.

How to Work in Brazil

Legal Grounds to Bid (Public Bids) in Brazil

a) a foreign company that has a subsidiary in Brazil could join the bidding, since it is authorized to operate in the country;

b) the foreign company that has no official branch in Brazil (not authorized to operate in the country) may participate in international biddings only; (...)d) the international competitive bidding as a rule, should be performed in the mode of competition is allowed, exceptionally, the modalities of making call prices and, under § 3 of art. 23 of Law No. 8.666/93;

e) in relation to specific sectors of national economy, unaware there different norms for the participation of foreign companies "operating in the Country" or "not operating in the country";

The National Bidding Law No. 8.666/93 Demands the companies' technical references Provided by the Architects and engeneers professional body (CREA, just like lawyers BAR), for the employees and for the companies Itself, Which Prevents newly constituted companies from bidding public (except for international biddings)

Legal Grounds to Work in Brazil

The foreign company, whatever its purpose, may not, without the authorization of the Executive Branch, working in the country, even by subordinate establishments may, however, except in cases contemplated by law, be a shareholder of a Brazilian corporation.

As for legalization for operational purposes, the company authorized can not start its activity before it is entered in the record itself on where it should be established.

Moreover, the foreign company allowed to operate is required to have a permanent, representative in Brazil with powers to resolve any issues and receive subpoena by society. Moreover, the representative can only act to third parties filed and registered after the instrument of his appointment.

The law also stipulates that any amendment to the contract or the statute depend on the approval of the Executive, to take effect on the national territory.

A foreign company if desired, may be national, determining the code that authorized by the executive branch, the foreign company permitted to operate in the country can be nationalized by transferring its headquarters to Brazil.

Legal Grounds to Work in Brazil – cont.

Several foreign companies have chosen to acquire stake in domestic companies, either through the purchase of the company, either through an exchange of shares between companies.

Interested on the promising Brazilian market, professionals from other countries landing in Brazil after work

While the Brazilian economy grows by leaps and bounds, the lack of planning by governments and the resulting structural problems of the country also appear more to the naked eye. The need for investment in roads, ports, airports and the growing construction market and the pre-salt bump on one fundamental point: there is a skilled workforce to meet all this demand.

The only temporary solution is to bring foreign professionals to work here. Engineers from around the world are offering to cross the Atlantic and up for lower wages, have jobs in brazilian lands.

Figures from the Ministry of Labor show that the importation of "talent" is growing by leaps and bounds. In 2008, 2,520 engineers called for a work visa in Brazil. A year later the figure was 3,226 and in 2010, 4256, an increase of 68.8% in just two years.(...)While the Brazilian universities make up about 55.000 engineers a year, the market needs 80 000 new professionals annually. Worse, 32.000 trainees in the area would go to the financial market. Just as a comparison, China has formed around 400.000 engineers a year, India and Korea 280.000, 80.000.(...)

2014 Brazil World Cup Architectural Summit – New York

Joining local businesses in architecture and engineering (since Brazilian law restricts the provision of professional services to Brazilian companies only, where foreign ownership is 49% or less).

More information on SINAENCO (Union of Architecture and Engineering):R. Marques de Itu, No. 70, 3rd floorPostal Code (Zip): 01223-000São Paulo - SP - BrazilPhone: +55-11-3123.9200Fax: +55-11-3120.3629E-mail: sinaenco@sinaenco.com.brWeb: www.sinaenco.com.br

And how to work in Brazil?

Leon Claudio Myssior leon@myssior.com.br

a good design always precedes a good work.

Thank You !