c! v CIRCULATING COPY TO BE RETURNED TO REPORTS DESK DOCUMENT OF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 1NTERN ATIONAL DTE VV EL OPMFNT ASSOCIATION Not For Public Use ) Report No. 38-BR THE ECONOMIC AND SOCIAL DEVELOPMENT OF BRAZIL, (In eight volumes) VOLUME III LIST OF PROJECTS FOR EXTERNAL FINANCING March 12, 1973 Latin America and the Caribbean Department This report was prepared for official use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report. l CIUREUNCY EQ'UrVAJENT Currency Unit: Cruzeiro. (Prior to May 15 1970, the currency unit was called the "Cruzeiro Novo" or "New Cruzeiro", the adjective was dropped in May 1970, without any change involved.) Exchange Rates Effective December , 197 Selling Rates US$1000 = Cr$6,215 Buying Rate: US$1000 = Cr$6,165 Averane Echange-Rates US$100 = Cr$h059h Cr$50285 US$1 million = Cr$4959h40O0 Cr$5,285,000 Cr$1 million - US$217.67q US$189.21l This report is based on the findings of a mission to Prmn ' n41 A4i t-teptember, 1972, e of: Roger P. Hipsk_nd (Ghief Of M4a4in) Francesco Abbate (Deputy Chief of Mission) JToseph- -T * ---a E on -0rit) Jayme Garcia dos Santos (Econometrician) V.chael n^war (C-energl Ecno, 4 9+ Marc Blanc (General Economist) M488 U,oer4aL P- .o (Secre;) T.TST' O PRflJECTS STITTABT.E FOR EXTERNAL FTNANGTNG TABTR OF GONVTEWTS INTROD Ttf'T (1T .z iJi A D130 TW'I'q' T)E7CDTDM1Tn),TQ L L.JU L I , jJ-J'JJo.i I .Lor~ 1. LUcaU .L S ector 1 2. Energy Sector 5 3. ±rIansportation 'Se'ct'or ii 4~. Telecommunications 21 5 * vvaTer and O'ewage 24 6. Agriculture 29 7. Export Corriaors Program 37 8. Industry Sector 43 9. Miscellaneous B. PurOr rnuLC,1 LST Tables 1 - 9 SUMMARY TABLE: PROJECTS SUITABL-E FOR '.XTERNAL FINA1'CING (In millicns US$) _xternal Nlwnler T'Foreign External Financin. Accordin-i to Anticinatl;d Disburse-eet Firn:--r'.: of Total Exchanre After 's . of Projects Cost Coopont Total 1972 1973 19'74 1975 19765 1976 Total Cost 1. EducatLon 13 539.2 70.0 252.7 - 46.5 70.7 72.4 4o.6 2 2.5 L6.9 2. Energy 17 5,155.o 894.0 1,931.0 52.0 88.0 2:L2.0 2'50.0 288.0 1,O:L.o 37.5 3. Transport 34 414l6.0 795.0 1L,7h9.0 297.0 351.0 4a0.o 297.0 238.0 82.0 39.6 4. Telecommunications 13 2,524.0 435.8 1,093.3 - 69.2 203.6 219.9 204.7 395.9 L3.3 5. Water Supply ancl Sewa:e 7 5499.1 76.3 138.3 - 35.2 !LT.4 48.2 8.5 5.0 25.2 6. Avriculture 19 2,126. 4 96.7 950.2 - 137.1 187.1 194h.1 195.6 236 .3 ld.7 7'. Export Corridors 36 809.7 n.a. 486.7 30.0 180.0 126.8 59.5 70.0 20.4 60.1 8. Industry 57 3,699.6 720.2 1,395.2 - 159.4 317.2 3o6.4 234.2 378.0 37.7 5'. Miscellaneous 6 __153.0 35.5 395.9 - IL.5 1h.5 _10.9 - - 2E.l TOTAL 202 1=2&21?=O 8191=)12 379.0 1.Ch0809 1,6=7.3 1A 1,272 2181.1 l½0.2 _ - = !. Li ,272. 18= INTRODUCTION 1.~~n he liJs t of-1 2 02 pr o je ct-s wnhi1c h a ppe ar to besutbefrxena financing that is presented below was formulated on the basis of: (1) ±1n. Uorm a,±UiIon providedJ4LVL UII t1h fL..LI.L-L of V.L X SLL L JUJJ.L W (2) theL 7f C - i 4 National Development Plan (PND); (3) information available in the World Bank and collected by various sector msiosU;Ij (4) information otailned directly from executing agencies and State Governments. Projects which are included may be the object oI direct investment outiays by public sector agencies, may receive financing from the public sector and thus be the object of indirect public sector inveszment or tney may merely be sponsored by public sector entities. 2. However, the projects presented below do not represent the public sector investment program since they only represent projects considered as suitable for external financing. Moreover, the time span of those projects differs from sector to sector and many of them go well beyond 1974. Besides many delays in execution may occur modifying noticeably the actual composi- tion of the public investment program. Also, in many cases the execution of the project or its priority may depend upon the results of ongoing and future studies and/or the availability of external assistance. Thus, no attempt should be made to reconcile precisely the project list with an aggregate projection of public sector investment. 3. By and large, external financing for the project, included in the list is expected to be committed during the 1972-74 period. To give some idea as to the probable timing the Brazilian source of information has been asked to classify the projects as follows: Category a: Projects already under negotiation for external financing (including projects already signed in 1972). Category b: Projects at an advanced stage of preparation such that presentation for external assistance can be expected in 1973. Catezorv c: Other orolects. L4. Values are given in US dollars: the exchange rate applied is the one prevailing at the time of the project preparation; no provision has been made to reevaluate the cost of oroients. which have been evaluated in the last few years. When the external financing requirement was not specified bv the Brazilian source. it was commputed nrbitrarily aS )40 percent of +he total project cost. The foreign exchange component of the project has been evaluated by the grszi1ian agencies, in some c -_ it i----- the indirect foreign exchange component relative to domestically supplied goods and 5rne iist presuenibie beLoUW a toutI.al- ±iVYsUMen, of. uRPcU billion. The identified foreign exchange component reaches US$3.1 billion -- however, it has not been evaluated for a number of projects -- une external assistance sought amounts to US$8 billion. If all external assistance is forthcoming and is disbursed, as presently anticipated, such disbursements (presented in the summary table) will cover 67 percent of Brazil's requirements for gross medium and long term capital inflow during the period 1972-76 to achieve an 8.5 percent annual economic growth. The remainder of medium and long term capital would be forthcoming from loans already in the pipeline or loan to the private sector and/or direct invest- ment for projects not included in that iist. A. PROJECT DESCRIPTIONS 1. EDUCAPTION SECTOR The Goverrment's basic strategy in the field of education is to provl.d a qualified labor lorce able to ir,ieet "e ri,anpower requ-rerrient 'or economic growth. It is characterized by the campaign against illiteracy, thne refor..j 0ofL* thve eu du cas tion sysUtIem and Jie effL'ort tuo deveLop andu proUIote scientific research. Public sector expenditure for education has there- fore been projected at an unprecedented level of 32,700 milrlion cruzeiros over the period 1972-74 with a 1974 figure about 90 percent higher than The National Alphabetization Program (MOBRAL) aims at reducing the adult illiterates from about 8 million in 1970 to 2 million in 1974. This program addresses itself to tne 15-35 year-old population. Tne reform of the education system expands the first level of education from 4 to 8 years by combining in the same cycle, primary educa- tion and the first four years of secondary education. The target rates of scholarization have been fixed at respectively 95 percent and 80 percent for urban and rural communities. This would involve an increase of the student population fram 16.3 million in 1970 to 22 million in 1974. This program is mainly the responsibility of municipalities and state govern- ments who have to provide free education. The Federal Government participation only represents a small part of the total cost. Secondary level education has also been affected by the reform. The new curriculum gives more emphasis to technical subjects to prepare more effectively students for professional life. It aims at providing qualified intermediate level labor force. The target is a doubling of the student population over the period 1970-74. State government and municipal budgets also are financing most of the cost of this program. Higher education also is under reform. More emphasis is given to scientific and technical matters. To provide the appropriate teachers needed by the first and second degree education levels and the range of qualified technicians and professionals, short and long study cycles have been created. The target set in the national development plan is a 90 percent increase in student population between 1970 and 1974. The main part of the financial burden is supported by the federal budget. Besides formal education the Government has set up an intensive professional training program for the present labor force. The objective is to train some 550,000 persons over 1972-74. In addition, efforts are being made to promote and develon research activities through the installation of laboratories and post graduate centers. - 2 - The main part of the national development effort in education is financed by national resources, either federal or local. External assistance is only sought for a small part of it. Since they do not call for external financing, many interesting projects such as the National Book program, the "Ginasios Polivalentes", and the physical education program are not presented below. First Level Education 1.1 First Level Education in Jequitinhonha valley (Minas Gerais). The state of Minas Gerais seeks external assistance to support a project providing first level education facilities for 220,000 inhabitants of the Jequitinhonha valley (a remote area in the north of the state). The project consists in building 235,000 m2 of classrooms and student orientation and testing laboratories, and purchasing furniture and equipment. Total project cost: US$23 million. Foreign exchange component: undefined. External financing: US$11 million. Probable commitment date: 1972 or early 1973. Estimated disbursement period: 1973-77. 1.2 National Program of Vocational Schools. Vocational education will be provided during the second half of the eight-year first level education cycle. This program is designed to: (a) provide intensive training courses for teachers of vocational education; (b) revise vocational education curricula; (c) establish experimental supplementary vocational education schools and materials; and (d) construct 276 new school buildings and renovate 30 existing installations. Total cost: US$46.7 million. Foreign exchange component: US$2.3 million. REternal financing: HS$I8.7 million. Probable commitment date: 1973. Estimated disbursement period: 1973-75. 1.3 Minas Gerais TV Education Program. To install in Belo Horizonte a TV trwn-nmission center to broadcast educational progrnms over the 3I1 adjacent municipalities in a first stage, and to implement 36 receiving stations dissedMinated over the state in the second stage This proiect ai.ms at making the most efficient use of available teachers, at reducing the drop=out rate, mainly in the less d-1 a and at disse-minati- basic education even in remote areas. It will also improve the efficiency of the educatiuon sys'e by a rjiore extensi ve use Or au JO-V_sual ,eL,o- S. Total project cost: US$4.9 million. Foreign exchange component: US$4.0 mlhIi±llon. EDLternakL iJJ1dancing i- U $L4 [i1±DL-Lion. P robLJablJje cJL WientI da LI 7,. Estimated disbursement period: 1973-74. -3- 1.4 Sao Paulo Teachers Training Program. This project aims at providing adequately trained teachers for the implementation of the reform of primary education in the state of Sao Paulo. It will provide training and upgrading to about 100,000 teachers during the period 1972-75. Total project cost: US$15.0 million. Foreign exchange component: US$0.5 million. External financing: US$10 million. Probable commitment date: 1973. Estimated disbursement period: 1973-74. Second Level Education 1.5 Technical Education Facilities. This project considers construc- tion, expansion, improvement, modernization and equipment of technical schools in the field of agriculture, industry and commerce over the national territory in order to improve the qualification of medium level technicians according to the requirement of economic development. Total cost: US$63.8 million. Foreign exchange component: US$8.7 million. External financing: US$18.1 million. Possible lenders: IDB, Federal Republic of Germany. Probable com-mitment date: 1973. Estimated disbursement period: 197X-76. Hig7her Edur-2ti On 1.6 ITniversity CaMpuses Phase T. This nrowram is designed to construct university campuses for five priority universities in Rio Grande do Sul,1 Paraiba, Para, MinasG erais and the pfder;l district, chosen among the 32 universities supported by the federal budget. This program, considered to be essential to the higher education rAfnor1 will inrcludr inonstr-lution of classroom blocks, administrative buildings, laboratories as well as infra- structu-e work. The cost of the construction represents about 52 percent, the rest will represent equipment and scientific material. Total project cost: TTUS$7.5 mf1 lion. Fo.reign exchange coTTCNet _8 m--- vx financing: US$35 million. Probable commitment date: 1973. Estimated disburse- mnent- period : -1974-76. '..I 7LLV±TT A TTAi~~ J.herL~ u-;rr- "Jes eara, .1. University Cmpue Phase II. F§ve oo- Invriie Caa Maranhao, Goias, Rio Grande do Norte and Pernambuco) have been declared as second priority for construction of 1.n.-versity camrpuses Tot+al ,-4_Ca cost: US$60 million. Foreign component: US$15 million. External financing: US$30 m,.illion. Probable co..i±tment date: 1974. Estimated disbUrsement period: 1975-77. 1.8 Guanabara State University. Construction and procurement of equipment for 411 new State Uhiers- u`niv et±r y o.L RLio. Th± i-Ls includes construutiOn of the campus facilities for 15,000 students and a bio-medical center. Total cost: US$40 millon. Foreign exchange component: to be determiJned. External financing: US$20 million. Probable commitment date: 1973. Estimated disbursement period; 1973-76. 1.9 Post-graduation Centers. This project aims to promote the system- atic development of post-graduate education centers throughout the country. High level formation and training will be given to highly qualified personnel. - 4 - The project includes buildings' construction, purchasing of scientific and technical equipment as well as grants and fellowships to participants. Total cost: US$64.3 million. Foreign exchange component: US$7 million. External financing,: US$30 million. Possible lenders: USAID and IDB. Probable commitment date: 1973. Estimated disbursement period: 1973-76. Science and Technology 1.10 Science and Technology Program Phase I. This program aims at develoninz technological and scientific research in Brazil. Tt nonsists of the construction and equipment of 15 laboratories. Total project cost: US$,60 million. Foreign exchange component: IJSU9.0 million. External assistance: US$30 million. Possible lender: IDB. Probable commit.ment date: 1973. E.stimated disbursement period: 1973-75. 1 1 1 Sqcince nndl Technologry Prognra"m Phans TT- ViF+uher dAerel onmen+. aqnd improvement of technological center and research laboratories in Brazil. Total cost: US$30.0 million. Foreign exchrange component: U$C-5.0 million. External assistance: US$15 million. Possible lenders: Suppliers' Credits from U.S.A=j UTK France, Italy, Japan. Probable commit+m.ent date: 1974. Estimated disbursement period: 1974-76. 1.12 Minas Gerais Technological Center. The project consists of the cons+ructino !nA equipment of a center for r ennollacra.hl resach. T,h is center will provide technical assistance to the industrial sector in thoe of m-arage.,ent ard ad,,,lnlstration ,andI dlsse.mnLa te,.s of technological research. Total project cost: US$14 million. Foreign exchange Io'poet Tdefined Ctrnlfrcn; 59r) li --s 4l- J..1~1 . W~4 1 C 4 * ±l~ uerna-dL ± LLIC;1i--L% 1 VIX4P-?.7 II".L±.L.L 1I 1. Possible lenders: U.S.A., Germany, Italy. Probable commitment date: 1973. IE,stir,,atledl disbursert-jent period 1973-76. 1.13 Sao Paulo Techn-oloical Program. The program aims at disseminating technological knowledge by modernizing the existing research centers of various unLiversities, scientific institutes and cornmMercial firms. This should involve mainly equipment purchase and construction of new facilities. Total project cost: US$50 miilion. Foreign exchange component: US$1J0 million. External financing: US$25 million. Probable commitment date: 1973. Possible lenders: USAID, EXDqMiK. Estimated disbursement period: 1973-75. 2. ENERGY SECTOR In Brazil, the Ministry of Mines and Energy has jurisdiction over all matters concerning energy delegating supervisory authority in this respect to various a_zencies. While the power sub-sector is regulated by the National Department of the Ministry of Mines and Energy (DNAEE), coal comes under the authority of the National Coal Council (CNC). For the oil and gas sub-sector the National Petroleum Council (CNP) is the supervisory bodvy Here; the federal government has a monopoly in oil drilling, trans- portation and refining whidh it carries out through PETROBRAS, a corporation of which it is the maior shareholder. Nuclear enerz- is subordinated to the National Commission for Nuclear Energy (NEC). Contrary to power 1nvPet.mPnts investments in thhe oil. gas and nuclear sub-sectors are not completely covered by the following list of projects for various reasons inc-luwding: tlac o%f infrrmfti-i nns fcrci+. of nrrojec.ts and/or ina-nnronriate- ness of external financing. Investments in the power sub-sector are programmed and coordinated generating and distributing enterprises are affiliated. The expected total inves+MentS includi g eneration, transmi n nad disi btin ,+ over the period 1971-75 amount to US$5700 million as compared to US$3300 million over he cperiod 196=-70. The A_4-1 12 9ecn t oP generating capacity growth roughly parallels the growth rate of electricity U'.L A + .L.i _J '-'1 A J L _I Q _ AJ' Cb+ o+A Vs& n +. O n Ldr the total investment figure will be matched over the five-year period y an approxiruatUely equadl± amounu of external ±lncU., wu_LJJU T h L this financing, or US$790 million are already committed. The projects included in this program, totalling US$5155 million, are th ose intended to meet the de- marnds for power up to the end of the present decade. Although they conform with present ELETsROBRAS planning they should be regarded as tentative in the sense that a study of the power market and required investment in the Southeast is presently being carr- l u- - by Z2TR0BRA.S. Noteworthy is the fact that, most generation projects concer-n hydro rather than thermal plants. This reflects Brazil's natural endow- ment of low cost hydroelectric potential, abundantly available throughout the country and occurring alongside extreme scarcity of fossil fuels. Power: Hydroelectric generation and transmission 2.01 Itauba Hydro Plant (South). The concession for development of this 400 MW plant, to be located on the Jacui River in Rio Grande do Sul has been granted to Companhia Estadual de Energia Eletrica (CEEE). The plant will mainly serve the state of Rio Grande do Sul. Total cost: US$130 million. Direct foreign procurement: US$20 million. External financing: US$50 million. Probable commltment date: 1973. Estimated disbursement period: 1974-78. - 6 - 2.02 Itumbiara Hydroelectric Project (Southeast). This is a major storage development on the Paranaiba River for development of which the concession has been granted to Furnas Centrais Eletricas, S.A. (FUtRNAS). The plant will have an installed 2,080 MW (8 x 260 MW) generation canacitv and the scheme would afford additional firm potential, through its water releases, to downstream power stations of CELG. CEMIG and CESP. It would thus meet demands of the Southeast region and its adjoining areas after 1978. An economic feasibility study has been completed. Engineering studies are in progress. The total cost, including transmission lines, has been estimated at US$550 million and the external financing required is US$224 million. Foreign exchange component: US$235 million. Probable commitment date: 1973. Fstimtepri dishirsnement. period- 1971-1Th 2.03 Agua Vermelha Hydroeplectrin Prnioje. (Sqnnthest.). The Agua Vermelha plant, with a planned capacity of 1,300 MW (6 x 230 MW), will be located in the lower course of the Rio r.rqn som 550 km from the Sao Paulo metropolitan area. The project will supply the Southeast power market from 1979. Total cost, including transmission lines, estim.ated at: TT$JXv0 million. External financing: US$165 million. Foreign exchange component: Us$165 million- Probabhlpe-rcTmJ.tmpnt rdate: 1973~ Esimte dlsbl-irsemnctn period: 1974-81. Executing agency: Centrais Eletricas de Sao Paulo (CESP). 2.04 Santiago Hydroelectric Project (South). This is a storage project upstream of the °l1-to_ . Osrlopoet hc is - A curet' unde cn tru4i It comprises a dam and a 712 MW (4 x 178 MW) power station on the Iguacu River i-n the state+ of P-arana and associated f - 4f1a4i4-t-i. A concession for development of the site has been recently granted to Ce~t .r+aiS E1 ,let rAi - d ,,1 O Au - C' A {UTi 1= nu CTrrr \ Mrl-J. , 4. *...i . U~ ~) ~ ,) J ~ * lJ±L',U AI I IlL prjuect 'woul U L'ieLpJ meet the power demand in the southern region from 1980. Total estimated cost: rTQ,b1 .mil-lion. External- f U TTO"-X -ob -1 U. U -LJ7u 1IJ:LAJi ,A u uiiai i-nani ng:LI U O.fJU IFL-L-LLIUII. rrVUUdUu±e LcoITIMiumelnu date: 1974. Estimated disbursement period 1974-79. 2.05 Moxoto Hydroelectric Plant (Northeast). This new plant will have a_Ln jj±a capaca d ujy U1 4Wu NW k4 x Ivu riw) and will be locatea upstream from the existing Paulo Afonso plant on the Sao Francisco River. It will provide better regulation oI the stream at Paulo Afonso. In conjunction with the Stage IV Paulo Afonso project (2.06) and the Sobradinho dam project to augment storage capacity for hydroplants on the Sao Francisco River (2.7), the Moxoto project will be essential for meeting Northeast region power demand by 19i7. Power demand in this region is currently increasing at a fast rate. Economic feasibility studies have been completed and the consultant (SOF LLEC) is assisting with the engineering studies for the project. Inter-American Development Bank financing is envisaged. The total cost has been estimated at US$202 million and external financing required is US$60 million. Probable commitment date: 1972. Estimated disbursement period: 1973-76. The executing agency would be Companhia Hidro Eletrica do Sao Francisco (CHESF). 2.06 Paulo Afonso (IV) Hydroelectric Project (Northeast). This fourth stage of the Paulo Afonso hydroelectric complex consists of expansion of - 7 - the underground generation plant by 1,860 MW (6 x 310 MW) using the storage caDacitv of Sobradinho dam (2.07). This oroient is to be nommissionnd during 1976-1980. The economic feasibility study has been completed and CHESF is engaged in detailed engineering studies with the assistfanc of SOFRELEC. IBRD financing for the project is being considered. The estimated cost is US$274t million for nower generati0n alone anri the external financing required is US$70 million. Probable commitment date: 197?. Estimated diqhnrcement period: 197J-80. The executing7 agency would be Companhia Hidro Eletrica do Sao Franciaco (CHESF). 2.07 Sobradinho Dam (Northeast). This storage project on the Sao Francisco River will support both the existing Paulo Afonso complex and enable its fourth stage expansion. Inter-American Development Bank finanr.in.v is envrisagyed. ort+nl r.c.s I iTQc215 m ,,,- 1io I LI.-, - + e ci US$70 million. Probable commitment date: 1973. Estimated disbursement noT J nr ; . -s1 07 Q_7A QA +; .A AUr .4- LI * Ao4 - 25 _ - _ r-io *--. -lI e3r. c a'U V| G _X, ,Ia S a Francisco (CHESF). 2.08 Sete Quedas Hydroelectric Project. At the end of 1971, installed power geneation capacyJ 11 inBraziL WsO 12CU M" illion kw. Braz l's power market is expected to grow by 12 percent annually during the 1970s. About R r _ n 4A A4 r48;: _ - -. A -2= 1 - ]__ _.- _ _ . _ _ I 8=-90 per tcentD oV this. WV.l ue in" tihe W outhseatb adIU SoutIh regions. bScemes under construction and planning described above would meet requirements ,,A - I OC)Q, I T I nn l~.- UA _ _. 3- - .tiA-l 7 198.ri E -- o ha-s under- study aiutrnauives for energy development to meet the requirements of the 1980s. One alternative would be a series of therm,aal plants including thermo-nuclear facilities. Another alternative is the international development, with Paraguay, of the hydroelectric potential of the Parana River at the Sete Quedas falls. Here the river flows through a narrow canyon falling 100 m from the falls to Porto Mendes. anu a further 2u m from Porto Mendes to Foz do Iguacu. The generation potential in these stretches is around 6,500 MW at 100% load factor and could be utilized in South and Southeast Brazil within 4-5 years of commencement of operation. The economic feasibility of the Sete Quedas project in relation to all available alternatives is under study by Brazil and Paraguay. Considering the long lead time required by this project, 1i.iancing would have to be committed by 1974 in order to meet the energy requirements of the early 1980s. Preliminary estimates indicate that the first stage investment cost would be about US$2000 million. Promoting agencies: Centrais Eletricas Brasileira S.A. ELETROBRAS (BRAZIL) and Administracion Nacional de Eletricidad - ANDE (PARAGUAY). 2.09 Couto de Magalhaes Hydro Plant. This 180 MW plant is to be located on the Araguaia River on the boundaries of Mato Grosso and Goias states. This project will serve Mato.Grosso (mainly the Cuiaba area) and part of Goias. Total cost: US$55 million. Foreign exchange component: US$14 million. Proba.ble commitment date: 1973-74. Estimated disbursement period: 1973-74 to 1979. Executing agency: unidentified. 2.10 Ilha Solteira transmission lines. The Ilha Solteira hydro plant is nresentlv under construction in the Sao Paulo area. The second phase would include installing 460 kw transmission lines and constructing a series of' substations with all the reouired equiDment. Total cost: us$160 million. External financing: US$70 million, possibly from Inter- Arnprir'an DePvelonment Rank Pnosibhlp commitment date: 1973. Estimated disbursement period: 1974-76. Executing agency: Centrais Eletricas de Sao Paulo (CESP). Power: Thermal jeneration 2.11 Sao Paulo S+eam Plant- (Souheast) This proiect, with a capacity of b00 Kw, was considered as a possible means of providing additional power in the Sao Paulo area during 197)4-75 prior to the completion of the 3,200J M,W liha Solteira hydro plant which is scheduled for commissioning in 1974. The esti;MlateC1 cos4t is TTCd!llOr mllli4on anr. the exterr.alinncn required ±I1~ t~ ~LAI1C2. L5' U .L~ UO.)V)L_L_ -L' . ULiL'JI _L UJ.I ~ U _. L &. -A.- - is US$62 million. The scheme has not yet been authorized for construction. ille needu for this interim, so-lu-tion wil_l_ beI r-evi-wed by ETROBP in WIhe context of preparation of an updated development plan for the Southeast region, by the end of December 197 . £ .J~~. Ott-LU fl(J.L~LZ.UIiL,U ±L iL±ti r±i I.,u U uu ulltiCL u,I * ±'i-'-O Oul_IJ ~_. ~11 VM_~ri ,,-1L Belo norzonDe Tha Plan (Su_Ls.Ti ch.eo ntlil a 360 MW thermal station at Belo Horizonte which was not included in the CAN T A1A energy plan, was proposed by Centr-ai- Eletilcas de Minas Ger-ais, S.A. (CEMIG) to meet interim shortages in Mi-nas Gerais during 1976-77. This plant will use the waste gases of a PETnvBRAS r'efIneIy and mleet the power- demand in these critical years. The estimated cost is US$65 million and the external finaricing requiredu iS USW) milllun. rroDable cuMMnLueiL UtdUe: 1973. Estimated disbursement period: 1973-76. 2.13 Floating Gas Turbine Units for Power Emergencies (Northeast). This project is designed to meet emergency requirements for power in the Northeast and possibly Belem. Two non-self-propelled barges will be equipped with 130 en of gas turbine generating capacity and stationed alternatively at the Bahia industrial center (Aratu), Recife, Fortaleza or Belem as requirements dictate. Feasibility studies are being undertaken by ELETROBRAS with the consulting assistance of EBASCO Services, Inc. Eximbank financingr is envisaged. Total cost: US$37.5 million. External financing: US$30 million. Probable commitment date: 1973. Estimated disbursement period: 1973-74. Executing agency: Contrais Eletricas Brasileiras, S.A. (ELETROBaAS,). 2.14 Tapana - Belem Thermal Project (North). This 100 MW (2 x 50 MW) oil-fired steam turbine project will meet Belem area demand when obsolete diesel units are removed. The demand for power around Belem has been increasing at a 26.6 percent annual pace and modernization of the existing generating facilities is overdue. Total cost: US$51 million. External financing: US$25 million. Possible lender: LEFW. Probable commitment date: 1972. Estimated disbursement period: 1973-77. Executing agencies: Centrais Eletricas do Para, S.A. (CELPA) and ELETROBRAS. -9- 2.15 Manaus Thermal Project (North). Energy consumption in Manaus is expanding by 19.9 percent annually. 100 MJ (2 x 50 DU) in oil-fired steam turbine generating capacity will be added by this project to the Manaus diesel generation system. Feasibility studies are nearing completion. Total cost: US$20 million. External financing: US$15 million, possibly from Eximbank. Probable commitment date: 1973. Estimated disbursement period: 1973-75. Executing agencies: Companhia de Eletricidade de Manaus (CEM) and ELETROBRAS. Power: Distribution 2.16 Transmission and Distribution Project of Light, S.A. (Sao Paulo and Rio de Janeiro Metropolitan areas). This five-year project is designed to meet anticipated growth in the load carried by the transmission and distribution system of Light - Servicos de Eletricidade, S.A., which serves the Rio and Sao Paulo metronolitan areas. As of end-1971. Light had 3,265,000 connected customers in a service area of 16,400,000 total population. Projeetions indinnte that by end-i1976 the number of . stomers will be 4,400,000. Peak load is expected to grow from 2,950 MW in 1971 to annroximately 6-000 MW in 1976 In order to mee.t this lo ad growth and to serve existing and new consumers in a satisfactory manner, it is estimated that it will be necessary to add to the company's electric system: -on ; ,.; + -F IeQ 19 +I_- _ A J (1 4 4 44'I 1- 4 JJ. -L_ - . u .L.. vS f _'/4. I, 1L4 U~ Lu l '..l ~. J. LI.V U.J.M~I~I0 LJQZ.0 .4SJi 3 O$280 -.fTA of of. fz/ - - )o4f.3f L - 2in/8 kv Ld7dI_oLl1ctloni O '70o/ MxrR A _rtS-1 /n n 11 1_. r' /_ r_ - ±fI c-iVA V1 U-_)C CV/ X) . C1 AV UVdflDloVI'Ifla D i llj 2,026 rMVA of o3v3/20/h 2 and tutranf-ourmd ationb;Uin irarlurmers. A feasibility study is available. Financing is sought from both bilateral and multilateral sources. Total cost: US$654 million. Foreign exchange cormlponent: US$)47 million. External financing: USI$52 million. Possible lenders: IBRD, Brascan International, Suppliers, Canadian Government. Probable commitment date: 1972. Estimated disbursement period: 1972-76. Executing agency: Light - Servicos de Eletricidade, S.A. Gas 2.17 City Gas: SINGAS. A US$2 million study has been commissioned jointly by the Planning Ministry (IPEA), the National Petroleum Council - 10 - (cNP) and the National Petroleum Company (PETROBRAS) to study the feasi- U.4L-L Uo increalsln th L Vproc4ioLr of. ±d-azil'Is .a in ciuies w-uith caJbustible gas. It is expected that studies will be completed in 1974 and that the erXginer-ir desin ar.d costructi on ofv - frst p4-oJc --1-2 -4-r -- 17 and be completed in 1979. Investments would cover design, procurement and instldlation costs of the generatlon unit, atudiary u-its, distributior, network and storage systems. Total cost: US$41 million. Foreign exchange component: unidentified. Externlal firancing: Us`9 million. Estimabed commitment date: 1975. Estimated disbursement period: 1975-79. Executing agency: undefinea. 1I 1I - 3. TRANSPORTATION SECTOR Most of Brazil's important transport investments are under the responsibility of the Ministry of Transport which approves and coordinates the investment plans formulated by the various modal executing agencies under it. In October 1965, to assist it in formulating transport master plans, the Ministry established an Executive Glroup for Transport Policv Integration (GEIPOT) which was initially responsible for conducting the Brazil Transport Survey; upon completion of the studies. the groun was transformed into a permnent advisory agency. According to the National Development Plan (PND), approximately US$3500 million will be invested in the transnort,ation sector during the 1972-76 period by the Federal Government and US$2200 million by the states and municiDalities. While the overall oblentive in this sAntor remains one of minimizing transport costs, the emphasis is now on increasing the efficiency of the whole transnort system through a better integration and a modernization of its components. Many of the projects listed below were actually identified and re.^ommpnt-1pd hv thp Transport Scurvey, andl they hvua s cund eco-nomic. jutc+ifi- cation. Other high priority projects in areas that were not covered by the Shrvey, sunh as urban and rural ti an on are also included. Finally, this list presenits a few projects with an uncertain economic iustifictnin in4r.cluded are both very advanced p- - f4t -or which funds have already been committed or future projects which have not yet been studied. The total cost of all projects amounts to UI$"4L,16 ml''ion. Transport - -rJt d -cl relte to t,, L r Corridors or A .' - W '. FL U.J ~ %,v .A... CV'.. UJA.J A.C;L LIVU UV) ULIV± L&PUv U UUPLXrLUUV1-5 Program as formulated by the Central Bank working group have been listed n,ider a separatetA haig(. 7) zna, wh.ereforAe, do nob appear - oej.c Highwta.ys TnL the LAh-AyLJ su-sect^r, UUUpa-in execUUUiLAg agenicy is une National Highway Department (DNER) which coordinates the work of the State HJ _,.,- r ~ _+ + fnID T-d- .I .4 4 -3 4&-.L T.TTM - Xiv>.waY DeprW,.er.S % (Ds. It is estimaUVU LdU LAN.Z wi-l spend On average US$260 million per year during the three-year period 1972-74 for constructing and paving the federal nebwork; t,he Dais will spend about US$300 million per year on their state networks. In most cases, selection of either federal or state roads is based on the recomm-endations of the Transport Survey and of 12ie updated Master Highway Plan. The third and f o -,-+_h -P; 15I -3 -4-4 h _n: A- I T% I 5__ * fout.h f.ifth and sIxth Highway Frograms libsed below include nignways that were so selected and which are or may be eligible for a World Bank loan. The cost of a given pr-g-a.u generally includes the cost of detailed engineering studies for highways to be built in the succeeding one and that of feasibility studies for highways to be built in the program following the succeeding one. Some state highways presented by the state of Sao Paulo are also listed -- although they are not in DNER's investment plan -- because of the state's large degree of financial autonomy. - 12 - The rural roads program sponsored and partly financed by the National Economic Development Bank (BNDE) deserves a special mention as it is a forerunner in a field much neglected thus far. Road accesses to large cities are presented separately in the urban transportation subsector because of their more complex environment. 3.1 Feeder Road Program. This is the first imnortant nroient of feeder road construction in Brazil. It covers construction and/or imnrovempnt. of nhont. 7qOO km. of munlrinal and sta.te r^nslH with hi 7h agricultural benefits in the Northeast and Center-West part of the counntry All roads to be built in a given state will be selected by the National Economic Development Bank (BIDE) according to economic nri' nr'i +tAr nTCnno, -q 1 qi n-r~??1i rl QCi hir. +b1 q +. T4i :r,h-tynr~ T pririt, aonaa lst rovdedbythe Stat Hi-g..wa. Departmens (- > or a Special State Agency (Consorcio Rodoviario). Total cost: US$85 mTillionn. .-oicrin e ap n nxT;a1. omponen n A . US$25 million (USAID). Commitment date: 1972. Estimated disbursement period: 107972-74 Sponsor and coordinator: B : *1ting agencies: DERs and Consorcios Flodoviarios. 3.2 Ubatuba-Cubatao (BR 101). This is the 220 km easternmost section of the coastal higinw-ay llinkin. Sa o PaJ'lA o ^tW *'J;o de TnJe-Iro. Tis road, which also provides an alternative to the existing route along BR 116 will primarily serve oftheou ro ofmac t sr,, activi ao4 the coast. Total cost: US$110 million. Foreign exchange component: UT t1 r ,.4'110 - 4on. Externa,. -Prian 4 c . r I? Ir4 1I_-I Possible ledr IDrB IL-LJ-L iAiI 1!1&~ u L -LI L 1 .LL U,3P;.) L _L±L±U11. ru)jz_L±_U± ±eiIUU1r; ±jjo.D Probable commitment date: 1973. Estimated disbursement period: 1973-75. ZxcU.Li.8 agendLcUy:; cy Uc UIDp telnoa NaciolU. Ude Es1: a d. e auQagtem ljnL!Aj . 3.3 Third and Foaurth' FE Highway rrograms. These projects consist of constructing and paving a total of 2,530 km of highways in 13 states. They also include consulting services for economic feasibility and engineering studies, and the formation of DNER's new training center. Total cost: US$ 350 million. Foreign exchange component: US$t41 million. External financing: US$140 million (IBRD). Commitment date: 1972. Dis- bursement period: 1972-75. Executing agency: DNER. 3.4 Fifth DNER Highways Program. This program calls for construc- tion and/or improvement and/or pavement of some 1,630 km of roads as well as feasibility and engineering studies. Total cost: US$260 million. Foreigfn exchanae component: US$35 million. External financing: US$104 miliion. Possible lender: IBRD. Probable commitment date: 1973. Estimated disbursement period: 1973-77. Executing agency: DNER. 3.5 Sixth DNER Highways Program. This program calls for the construc- tion and/or improvement and/or pavement of some 2,600 km of roads as well as feasibility and engineering studies. Total cost: US$280 million. Foreign exchange component: US$38 million. External financing: US$112 million. Possible lender: IBRD. Probable commitment date: 1974. Estima-ted disbursement period: 1975-78. Executing agency: DNER. - 13 - 3.6 Maringa-Rolandia Direct Highway Link. The project consists of constructing and paving a 60 km highway section between the two growing cities of Maringa and Rolandia (Parana), reducing the present distance by 45 percent. Tt will also divert part of the heavy traffic (15,000 vehicles per day) on the existing sections around Apucarana. Total cost: ITSU10 million. Extl.rnnl fiin-n-ning TIRt)i million. Prohqble nommitnPnt. date: 1973. Estimated disbursement period: 1973-74. Executing agency: DNER and fl.?-Pnrnna. 3.7 Sao PaoiT - Campinas. This is a 90Q^ km l ng sectr-H on tfhc UTrnth Expressway, linking Sao Paulo to one of its fastest growing sabellites. It i aU l a s on ofl +Ie er,^or route for te a- of the Sao Paulo and NYato Grosso hinterland. Total cost: US$89 million. * :;, 'S A a.n.hAS 6 JLtrJ*.l X A > A 'J'W. SI, C.J.Sfl * f lar ; U4 4v. IA . .1 e ; IJln . y *l...4 J . TTqQOm Probable commitment date: 1973. Estimated disbursement period: 1973-75. 3.8 Sao Paulo-Santos Expressway (Immigrants Tollway). An existing hlnOghw,ay (%Vi-;a Anchiieta) is -inadequate for the --4.41- PI---n flo o V .~a i~i~iL4 UO. .L u ~1 ~ uG U L ±'JJ. U I~ o.yJ.u_LJ 6 'JW4.116, 1LJ...IV '4± traffic between the Sao Paulo industrial metropolis and Santos, the country's p e i r por u_de - \ _ .AA_ A4 .1 MI _ r A 11- _ ;__ A _3A _ _ A -3 A- - _ . - H4- Gll~ | St C FL U1 Wlit::t CU iAL I. L . IiJ PX1 U JC D 1 ido UJeil UUtC1iO U U OUU PUU_I - ment the existing highway. A highway development company (DERSA) is executing it and will be r-esponsible for the operationL of the toL way. Construction has already started; by 1974 the first lanes of the roadway will be constructed and by 1979 the project will be completed. Total. cost; ~US$5 m±±ion. Foreign exenange component: UOS1U miJLlion. External financing: US$115 million out of which US$65 million had already ueen committed in i972 or before (commerciai banks). Probable commitment and disbursement date for the remaining US$50 million: 1974. 3.9 Sao Paulo-Mogi das Cruzes Expressway. This 35 km highway will connect the Sao Paulo Beltway with the eastern industrial region of the greater Sao Paulo metropolitan area. This road, which also carries agriculturai goods to Sao Paulo, will eventually be extended to the industr-ial port of Sao Sebastiao. Final engineering studies are underway. Total cost: US$45 million. Foreign exchange component: unidentified. External financing: US$25 million. Probable commitment date: 1973. Estimated disbursement period: 1973-76. 3.10 Mogi das Cruzes-Salesopolis. Together with 3.9 above this will constitute one of the three segments of the connection between Sao Paulo and the port of Sao Sebastiao. Total cost: US$14 million. External financing: US$5 million. Commitment date: 1974. Estimated disbursement period: 1974-77. 3.11 Western Highways. These are two North-South roads totalling 460 km and linking transversally several spokes of Sao Paulo state's radial highway grid. Total cost: US$42 million. Foreign exchange component: unidentified. External financing: US$13 million. Commitment date: 1974. - 14 - Disbursement period: 1974-77. All these projects will be executed by the Sao Paulo State Highway Department. Railways The two major railway executing agencies, the Federal Railway Netwjork (RFFSA) and the Sao Paulo State Railways (FEPASA), are both in the process of formulating their detailed investment plans aiming at financial viability in four to five years. Although these programs are yet not finalized, they are listed here in their preliminary form with their major expenditure items, including a lumped investment figure for new lines or variants construntion. nertain items are likely to hb rPeviqe in particular the amount for new line and variant construction in view of the Eyport (orridor Progrrm which was formula,ted sepnrately and does not appear below. There is therefore no line-by-line breakdown sinep nriorities among them are not. yet ll-v ascertAined RFFSA Invest-ment Prog-r-m. 31 2 R1FFA has pnreparedi with the heln of r-'onsqil ±an+.. a nrvl= ninany-Nr five-year investment program covering the period 1972-76, which could enable PwFFS to eliminateit n?-,n?-n+J eict Tisporo.cl7 o a total expenditure of about US$1000 million equivalent, of which the foreignn exchange omonentn 1iin1 A ho oh--e TTQ ; 11; ion T4 W.1 A F _s w bas _V=o VVZIsVVALAZ w E Vw VW VVW vU L C J 11]s|iiVks i9 V . include: a) Infrastructure and track renewal: Total cost: US$120 million. Foreign exchange comsponent : TTS$12 m--illion b)~ ~ ~ ~~~- Shops eqimn n ,erials for 4track, m,ait-------- Total cost: US$31 million. Foreign exchange component: US$13 million. c) Fixed installations: stations, traction, signalling and telecomMULLications Total cost: US$28 mnillion. Foreigni exchange COmponent: US$5 million. d) Variants and new lines: Total cost: US$92 million. Foreign exchange component: US$3 million. e) Rolling stock renewal and procurement: Total cost: US$508 million. Foreign exchange component: US$171 million. f) Shops, equipment and spare parts for rolling stock maintenance Total cost: US$24 million. Forelgn exchange component: US$9 million. g) Technical assistance: Total cost: US$5 million. Foreign exchange component: US$4 million. It is estimated that, to implement such a program, the external financing needed is US$360 million for the five-year period of 1972-76. - 15 - 3.13 FEPASA Investment Program. At the request of the Sao Paulo State, FEPASA has prepared a three-year emergency investment plan aimed at reducing its operating deficit by rationalizing and improving the operations of the recently merged railway companies. FEPASA has also appointed consultants to prepare a five-year investment plan aiming at financial viability for FEPASA by 1976. This plan is not yet finalized and the reference here is to the three-year one. Total investment cost for the three-year period 1973-75 amounts to US$160 million, of which the foreign exchange component is estimated at US$34 million: a) US$7 million for track rehabilitation. b) US$42 million for procurement and renewal of rolling stock. c) US$68 million for construction of spurs, variants and the conclusion of works Lnnderwav, d) US$3l million for the imn ovpnent of suburban services. Ports The port subsector will not have a comprehensive investment program until after an overall port study is completed in about one year's time In the meantime, investments are being made n the 1-igger ports in order to meet the overall traffic increases. The National Department of Ports and iNavigable hWaterways (DNPV'DIF) is both the planning and the executing agency. Projects directly related to the Export Corridors Program in Rio Grande, Parana, Santos and Vit-ora are l-sted ln a sepate sec'- (Ch.7). Total investments for the three-year period 1972-74 are expected to a-vera,,e TTS$1000 m on annually. 3.1)4 Purchase of Cranes. The project consists of the purchase of six floating cranes for the ports of Manaus, Belem, Recife, Santos, Paranagua and Rio Grande. The total cost is US$12 million and suppliers, credits, for a corresponding amount, are being negotiated with Germany and Hungar. Esti-mated disbursemwent period: 1973-75. Executing agency: Departamento Nacional de Portos e Vias Navegaveis (DNPVN). 3.15 A Wheat Silo for the Port of Santos. The existing capacity for wheat storage is to be increased by 20,000 tons. Tnis requires the extension of the existing right bank wheat silo and/or the building of a new one. Total cost IV:UL)14 rIllIinU. Foreign eAchange component: U $1 million. External financing: US$10 million. (Probably from a line of credit as part of the wheat -agr-eeent- with Canada'. Probable commitment date: 1973. Estimated disbursement period: 1973-74. Executing agency: DNPVN. 3.16 Port of Recife. This project for reconstructing and expanding the existing facilities consists of the construction of a new quay wall, a petroleum terminal, warehouses with all the necessary infrastructure and the pur-case of handling equipment. Total cost: US$26 million. Foreign - 16 - exchange component: undefined. External financing: US$10 million. Pobableo e Acmm n A,+e+ 107 iD-o chle 1l e1A r TUDOn Vs.4-4 -;me * I J I ± - ± . L1j±V to xLA. ;C u L U disbursement: 1973-76. Executing agency: DNPVN and the Recife Port 3-17 Por' o- .M-naus. Tsi-E portl needs -expansion4 in 4rde 4o.]e h SILk VLL',JJ. 4-. 'DUJ~Y LLD-U I LI J C.- V Ilt-ZU ll: growth of imports into the Manaus free trade zone. A feasibility study of the project was completed in 1970 but needs to be updated. The project comprises construction of a floating berth and sheds and the installation of handling- equipment. Tocal cos: US$8 million. Exterial filnancin5g: US$4 million. Probable commitment date: 1974. Estimated disbursement period: 1975-76. Executing agency: DNPvN and Sur AiMi (Manaus Free Trade Zone Superintendency). 3.18 The Port of Santa Cruz. This project presented by the State of Guanabara, consists of pier construction and equipment plus the dredging of a 20 hn channel from the MBR iron ore terminal to Santa Cruz in Sepetiba Bay. Port depth would be 18 meters. This represents but one possible alternative to further developing the port of Rio which cannot be dredged deeper than 12 meters and suffers from lack of space on shore. Other alternatives would be to expand the existing port install-ing at Angra dos Reis or the iron ore terminal. Final decision should await the result of the 1973 port study. Total cost: US$30 million. Foreigon exchange component: unidentified. External financing: U$12 million. Probable commitment date: 1973. Disbursement period: 1973-75. 3.19 The Ports of Rio Grande, Paranagua, Santos and Vitoria. Projects for improving the handling, storing and loading of grain are listed in Ch.7 (Export Corridors Program). Shipping The National Merchant Marine Superintendency (SUNAMAM) promotes investment in shipping. Projects listed below are for modernizing: the fleet used in inland waterway systems with a view to turn these into more effective carriers of agricultural products. Clearly. these projects do not reflect the total investment program of SUNAIAM -- estimated at US$200 million annually lor the three-year period 1972-74 -- which aims at expanding and modernizing the Brazilian ocean-going and coastwise merchant fleet. Shipbuilding projects are not included here because they are locally financed and/or external financing has already been provided. 3.20 Naval Repair, Empresa de Reparos Navais Costeira. S.A.. This project will make "Costeira, S.A." the largest ship repair yard of the Southern Hemisphere. The engineering studies for the rehabilitation and extension of the existing installetions are underway. Total cost: US$39 million. Foreign exchange component and external financing: US$15 million. probable commitment date: 1973. Estimated disbursement period: 1973-74. Executing agency: Costeira, S.A. - 17 - 3.21 River Transport, Companhia de Navegacao do Sao Francisco (CNSF). This company has its headquarters in Pirapora, Minas Gerais, and its shipping lines cover the Sao Francisco Basin. On the basis of studies under taken by GEIPOT, SUNAMAM has recommended the acquisition of tugboats and flatboats to form systems of integrated convoys. Better river trans- port facilities for low value agricultural goods could enhance the development of the Sao Francisco area for which the Government has designed the PROVALE special program (see Ch.6; in this program, funds are provided to improve the conditions of river navioation on the Sao Francisco River). Total cost: US$7.6 million. External financing: US$3.6 million. Probable commitment date: 1973. Estimated disbursement period: 1973-74. Executing agency: CNSF. 3.,'2 River- Transport. Servicio de Navegacao da Bacia do Prata (SNIBP). This company has its headquarters in Corumba, Mato Grosso, and its shipping lines cover the Prata Basin. The project contemplates renovation of the equipment to carry agricultural products from northern Mato Grosso to markets in the South. The accuisition of tugboats and flatboats has beenz recommended. Total cost: US$6 million. External financing: US$3 million. Probable eommitment date: 1973. Estimated disbursement period: 1973-75. Executin- agency: SNBP. 3.23 River Transport in the Amazon Region. The highway system now under construction will provii a lnrid ae to regions that were not accessible before or onily accessible by river transport. Development in these areas will inniPrAq t.he transport needs for low value huilk commodities. To provide a better integration of the land and river transports, SLTN-AMAM recommends the e.nl ar em.nt and modernization of the river fleet. This project consists of acquiring 3 tugboats and 26 flac- boats. Total cost: US$4 million. External +Mnanclni: USTT mirllln. Probable commitment date: 1974. Estimated disbursement period: 1975-7b. Executing agency: SLqTJI T^ . A irpor t .All investments In airport and aircraft are under tnhe reSPo,rSi- bility of the Ministry of aviation. Constructing or extending- international airpor+s i;n- Ri deT3aneiro and cao Pau'lo now bave hiJ-h prl-;orit 4n requi re much external assistance. 3.24 Galeao Airport Extension. The Galeao Airport in Rio de Janeiro is to be the principal international air-port in Brazil. The project con- sists in its first phase of building a new runwjay as well as new passenger anA 4-e- - i- - -- 4-1 - _ 4.1 - A4 A-.-'I - ; _- 1 _ . - 7 _3 _ - andI.X freiU ght IilI t ina 1 lu Uso tha Wth I.airCpo1rt-U Wi be|t UC ablUe toV handle juImIUU jets and, later on, supersonic aircraft. Total cost: US$171 million. 'Foreign exchange component:i Ui1 . P49 rri±,.iUlion. ZxUeUvia± ±±anciiig; US$95) million. (Eximbank and German commercial bank.) Probable commitment date: 1972. Disbursement period: 1972-74. (US$20 million was already disbursed before 1972.) Executing agency: Ministry of Aviation. - 18 - 3.25 DACTA Traffic Control System. This project is to provide modern traffic control syrqterms in the trianrle Sao Paulo, Rio de JTneiro and Brasilia. It includes the installation of a radar network to cover the area and the pniircra '-- s f1 the correponndinc equipment. Total iost : USt,7; million. Foreigfn exchange component: US$55 million. External financing: TTQ(t7C0 mill iren f'r'ainli -iiirzl -inrYcQI rrnA;-o+ nnrl I nnY rn ,M!+rnain+ ri:hft * 1079 Estimated disbursement period: 1973-76. Executing agency: Ministry of -3. 26 Cu.,ica ArtporUt; Sao Paulo. ThI,e fast groUwn n int- er national transport in the state of Sao Paulo will no longer be met by the~~~~~~~~' onstn aipo- locte 80h rom lult-,e centuer of lthe- Lcapi -lt but tA~ U±1~ iJJI* t,UI I.C Locted OiJlUl .1LUULIi bu UIIb-LLI LI, UCLUL± L.Y The alternative is either to expand the existing facilities and at the same timte imipruove the ladu connecu L Ujio butw ee the city ad te ai-LPur u or to build a new airport some 20 km from downtown Sao Paulo at the site of an existing mvlitary- airport (CuLbica). This project corresp)onds to the second alternative and covers a first construction stage. Total cost: US$60 million. Foreign exchange component: US$8 million. External financing: US$30 million. Probable commitment date: 1974. Estimated disbursement period; 1974-76. Executing agency; Mrinistry of Aviationr. 3.27 Manaus International Airport. Tnis project is to enable the existing Manaus airport to handle international traffic. The project includes the construction of a new runway and passenger terminal, and the installation of the required air control system. Total cost: US$60 million. Foreign exchange component: US$15 million. External financing: US$25 million. Probable commitment date: 1972. Disbursement period: 1972-74. Executing agency: Ministry of Aviation. Urban Transport Urban transportation problems are becoming increasingly important in Brazil's bi- cities and deserve special treatment. Studies have been done or are in progress in Sao Paulo, Rio de Janeiro, Recif'e, Curitiba, Salvador and Belo Horizonte and some specific projects, such as the Rio de Janeiro and Sao Paulo subways, are already underway. However, in most cases, there is still a lack of institutions with the ability and the responsibility to tackle this problem in all its aspects and, thus, serve as effective channels for external aid. Urban Development Rio de Janeiro 3.28 Rio d'Ouro Highway (Linha Verde). This road would provide a 15 kIm link between Tijuca in the Central City and the perimetral highway. This link would provide a much needed alternative to the grossly overburdened Avenida Brazil. Total cost: US$30 million. Foreign exchangre component: unidentified. External f'inancing: US$15 million. Disbursement period: 197'3-74. Executing agency: Guanabara State. - 19 - 3.29 Northern Access to Rio de janeiro (BR 153). This 30 km long section of the Rio - Belo Horizzonte highwav would be upgraded from 8-lane to 6-lane to accommodate very heavy suburban traffic. Economic feasibility studies have been done and detailed engneering studies are underway. Total cost: US$h5 million. Foreign exchange component: US$7 million. External financing: TTQ1R million. Disbursement perlod: 197b-77. Executing agency: DNER. 3.30 Subway. The subway system will eventually comprise 64 ian. A fir-st section I.rom rrijuca to .anema -,'on, the coast will be 20 km long' 0 and have 22 stations. This project comprises the expropriation, construction and equipsment required to operate th -ubwa on the 9 km subsection Botafogo - Estacao de Sa. Total cost: US$160 million. Foreign exchange component: US$25 million. Lxternal 1inancing: Us$65 million. Probable commitment date: 1972. Estimated disbursement period: 1972-75. Executing- agency: Coompanhia Metropolitana do Rio de Janeiro. Sao Paulo 3.31 Sao Paulo Beltway. This project calls for the construction of a 68.5 km long circumferential highway around the city of Sao Paulo. The first stage of the project includes several sections ln the South. Detailed engineering is underway. Total cost: US$180 million. Foreign exchange component: US$8 million. External financing: US$60 million. Probable commitment date: 1973. Estimated disbursement date: 1973-76. Executing agency: Sao Paulo State Highway Department. 3.32 Subway. In order to cope with the increasing probolem of traffic congestion in the city of Sao Paulo, the construction of a subway system has been initiated. The total system as presently envisaged could encompass 67 km and would require a 10-year construction period. As of now the first 8 km of the 18 km long North-South line have been completed. Test runs are underway on part of this line which is scheduled for completion by 1974. Total cost of this first line: US$500 million with a cost to-date estimated at US$300 million. The total amount of external assistance needed amounts to US$160-170 million of which US$110 million have already been committed (Eximbank and commercial banks). Disbursement period: 1972-74. Executing, agency: City of Sao Paulo. Curitiba 3.33 Integrated Transport System. Since 1965, on the request of the City Council, the Research and Planning Institute of Curitiba has conducted studies to define an integrated urban transport system. This system which is being implemented principally consists of (a) a three-way corridor with the central way for slow traffic and two lateral ways for fast traffic; (b) a rapid bus transit system using a special corridor lane; and (c) passenger and freight terminals. Total cost: US$21 million. Foreign exchange component: unidentified. External financing: US$13 million; Estimated disbursement period: 1973-76. Executing agency: Prefeitura Municipal de Curitiba. - 20 - Belo Horizonte 3.34 Vale dos Arrudas Urban Corridor. This project would take advantage of an existing river which flows across the city from east to west. Once canalized and covered up, the river bed could be used to locate new sewerage and mass transport facilities along a 20 km long urban corridor. This would considerably improve transport in one of Brazil's fast growing cities. Feasibility studies are to be completed in September 1973. Total cost: US$175 million. Foreign exchange component: US$30 million. External financing: US$108 million. Possible lender: IDB. Probable commitment date: 1974. Estimated disbursement period: 1974-77. Executing agency: Superintendencia do Desenvolvimento da Capital (SUDECAP). - 21 - 4. TELJOMMUNICATIONS The lack of adequate telecommunication network has been a limitin- f'actor for Brazil's economic development. At present the average telephone density is extremely low: 2.1 per hundred inhabitants. The Government is determined to remove this constraint. A mixed enterprise (TELEBRAS) has been created with responsibility for the reorganization of the telecommunication services. This will entail progressive disappearance and absorption by state telephone companies of some 800 private companies scattered over the territory. Their uneconomic size and obsolete equip- ment makes them unable to meet present and future reauirements. The National Development Plan contemplates for the period 1972-74 an overall telecommunications investment of US$600 million. Sector rationalization. combined with tariff increases and federal funds, will finance this Drogram for integrating and exn,nding the nresent tel eGommunicatiAon network for both internal and international communications. This will be achieved by develoninp the telepnhone and telex networ'k imnpementlnO a microwave system and reorganizing the postal services. Although included in this program, implementation of most of the projects listed below will extend beyond 1974. 4.1 EMBRATEL Telecommunications System Extension (Phase II). This prjer-t cont-mplates the second phase of the extension of the basic tele- communication network to satisfy the demand forecasted for 1980. The capacity of all co-mmunications trunks (in sight, tropodiffusion a shortwaves) will be increased by expanding transmission and switchboard eqni npmnt. -Rnnnoin -feascility1- +,A --i - -e-. studies are une-rwway. Implementation will start in 1974. Total project cost: US$215 million. Foreigon aexhan gn TT U $42.3 million. xternal financing: us$42. 3 million. Probable commitment date: 1974. Estimated disbursement period: 1975-77.* Executing agency: pk-RATEIT. L4.2 Naion LLiicLLtele±daIhi(,.Q 1Nte:LWU.L-U. The1 ex2isUlfng utlegrapnlc network will be expanded and modernized to serve about 2,400 cities all over Brazil. This ciJnclulde'smoenztn ofL t-ranosmiittuing and -ee---4 satosino-e to integrate the radiotelegraphic network with the shortwave radio telephonic netw- ork. Econom.ic feasibUi..y and 0%A i O. Uuu.t:~e lic Ve bLeen compIlet in 1972. Total project cost: US$18.4 million. Foreign exchange component and external financing: US$16.6 millioOn. Probable commitment date: 1973. Possible lender: Suppliers' credit from Holland, France, USA, or Germany. Esti-mated disbursement period: 1973-77. ExecutinG- agency: EIivRTEL. 4.3 Brazil/Caribbean SUUba-rine Caule. Tne project envisages installing a 640-channel submarine cable between Brazil and the Caribbean to create an alternutiyve commun-1ication channel with the united States presently reached by satellite only. Economic feasibility and engineering studies are under.- way and will be completed by hne end ofI 972. Total project cost: U $15 million. Foreign exchange component: US$14 million. External financing: TTc,d', 1. -2` 1 2 n U$.P-L4 milion.- Probable commitment date: 1973. Estimated disbursement period: 1974-77. Executing agency: EMBRATEL. - 22 - l4.14 Alterrative Communication Channels. The project aims at implementing various rnicrowave links connected to the national basic telecomrnunication grid. This will alleviate some of thEc already over- burdened centers an-d meet requirements forecasted for the period 1975-80. It will also improve the reliability of the overall system by providin g alternative communication channels in case of disruption. Engineering studies are underway. Total project cost: US$53.4 million. Foreign exchange component: US$11.7 million. External financing: US$11.7 million. Probable commitment date: 1973. Estimated disbursement period: 1974-77. 24.5 Data Transmission Grid (Phase I). EMBftATEl will be responsible for installing a data teleprocessing center connected to the telephone and telex networks. In a f'irst stage, two switchboard centers will be installed in PRio de Janeiro and Sao Paulo. Economic feasibility and enzineering studies are underway to be completed in early 1973. Total project cost: US$24.0 million. Foreign exchange component and external financing: US$3.0 million. Possible lender: Suppliers' credit. Probable commitment date: 1973. Estima-ted disbursement period: 1974-75. 24.6 Automatuic Exchan.gJe for Message Retransmission (SICRAM). Imple- mentin,y an automatic reneater center for incoming cables from abroad will contribute to the general improvement of the tele,,raphic system b-y speed- ing up one step in the transmission. Econor,mic fensibilitv studies have been completed in 1970. Engineering studies should be completed Do the end of 1972. Tocal oroiect cost: US$6.5 million. Foreign exchar,e component: US$5.2 million. External financing: US$5.2 million. Possible lende.r Supplieirs' cr-d.it. PrnhahlT rommitmPnt. dA.t.z.! 1971. E.s+.imt, r disbursement period: 1973-76. Executing, agency: EMBRATEL. 14.7 International Telephone Switching Exchange Center. Thi's project wi I Ionszf truc ot. ill Pio rde Janeir i tal c e.Ii,-nco rn- J t ten2 11nn communications. This semi-electronically operated switching exchange center. will be conne;ct 8 international -run line, 60 0, nt i-onal trunk lines and equipped with 300 CLH junction lines, 300 DDI junction lines and autoa.tic tollk ticketing equipmentEV. C. 0neering studies will be completed by middle 1973. Total project cost: US$6.1 million. Foreign exch-an--e componer t- and exte ^nal fiacig TT$6, 4l 'X llo4n. Prbal--Immt ment date: 1973. Estimated disbu-rsement period: 1973-77. 24.8 Second intenrna for Land Transmission. By installing a second antlenna the project will Improve the reliability of interna tional comrnuLi- cations as well as ineirease transmission capacity. Eng,ineering studies wil-lL lL - il'7. Ttl project cost: cU r$,.3 million. wiwibe ornoI uetu -±11 eiAr-LY -LYU- IOLEaPi Jcu u 4L.u Foreig;n exchange comnponent and external financing: US$3.5 milliorn. Probable commitrnent date: 1973. Estimated disbursement period: 1y73-75. 4.9 International Telex Computerized Center. With the forecast,ed increase of nati.onal telex communications tihe present Aio de Janeiro terminal will be saturated by 1975. Therefore, a new telex terminal for - 23 - international messages will have to be installed, using the most up-to- date eouipment of the 13ARS tvrne to work with G-tvnpe signals of the CC.TTTz The terminal will have a 12-waiting positions device. Engineering studies will .qtart in 1973 and be ncnm.nltpr1 Ku t1ha end nf 1+hp yr.P Tntanl nroient cost: US$3.1 million. F'oreign exchange component and external financing: US$3.0 mill1onn Probahle I onrmi trant date: 1Q71. rs+inro dichlrmcnfr# period: 1974-76. Executing agency: EMBRATEL. 4.10 Sta-te Telephone Network Expansion I. The Gover.nment has set upn n +-r..at to -nstane+1 15 ,rV il-on telehpr.nex in + exa,W +nr-rIfou- states have programs ending in 1976 for their telephone network extension: *Guanabara, co IM-4o, -ina -s - - --n - -t S Tota4-l -ro4- cost; - ~ U - ~- - ~ U~dClAl W. ± L'J uai JL PiUJz~ U U U LU) U. US$1062 million. Foreign exchange component: US$159 million. External -r TTCcfrTlfl -411 - fl._4k1-1 .,... rt ---2 I _ ~ f2L fl-nanc,ing uu.y$w willion. Poss-ble lendLer-s: Japdla SuppLLiers creui, . Probable comnitment date: 1973. Estimated disbursement period: 1973-75. L' e uA-- -- - M'U T; 7_ 5 -1 A .- U LJ115 -CIAUJ; . ±fLdlZDLUO. 4.11 State Telephone Networ-k Epansion II. Sixteen other sbates have programs for telephone network expansion Rio Grande do Sul, Santa Catarinar, Parana, Sergipe, Alagoas, Pernambuco, Paraiba, Rio Grande do Norte, Ceara, Maranhao, Piaui, Para, Amazonas, Mato Grosso, Goias, Bahia and hle Federal DiStr-ictl) over tne 1973-80 period. Total project cost: US$1061 million. Foreign exchange component: US$157 million. External financino: US$629 wallion. ProDable commitment date: 1974. Estimated disbursement period: 1974-80. Executing agency: TELEBRAS. 4.12 Telecommunication Control Center. DENTEL has received responsi- bility for controlling and monitoring radio transmissions. The project will install identification stations with goniometric equipment for broad- casting control and frequencies allocation. Total project cost: US$10 million. Foreign exchange component and external financing: US$8 million. Probable commitment date: 1973. Estimated disbursement period: 1973-75. &.13 Improvement of Fostal Services. Improving and reorganizing the postage service will require building an address sorting center and also purchasing appropriate equipment as well as trucks and delivery vehicles. Total cost: US$66 million. Foreign exchange component: US$6.5 million. External financing: US$33 million. Probable commitment date: 1973. Possible lenders: USAID, Germany. Estimated disbursement period: 1974-76. =-24 - v.~~~ 'w3a swaG. nG 9. VVTA M"D. RAJ1fd- AR1 The National Housing Bank (BNH) is responsible for the imple- mentation of tUe National 'Water and Sewerage development program. It coordinates state government plans and contributes to the financing, of their projects. BiHn has signed a number of contracts with state govern- ments for potable water distribution and sewerage programs. Those contracts are for a three-year period and BN-H agreed to participate in their financing on the following basis: if the state government finances 37.5 percent of the total project cost and the municipality another 25 percent, BNH will finance the remaining 37.5 percent. Since sianature of those contracts, however, the Plano Nacional de Saneamento (PLANASA) was formulated which complements and in some cases supersedes these contracts. The target set up in the plan is to provide water to at least 80 percent of the urban population by 1980. Water distribution is considered of higher priority than sewage and therefore sewage projects will only be executed in areas where the water distribu- tion system already exists. A number of states have subscribed to PLANASA and negotiations are underway to integrate the existing three-year contracts into PLANASA. This should be quite attractive for the states, since BNH will share equally (50-50) with the state the financial responsibility. The following states have already signed the PLANASI conven;ion: A. PLUNASA AT-m,ber ofr I'lnne- T nve-stme n M4unicip41ities Th thousand of St.te; Target BeneficiatinL 'ruzeiros BTahin-, 2. 7i75 336 538i,920 Tr .nh, e 1S75 129 118,265 i-V, r n-- 5s 11 1, i nC i i9 7,17 i, Perlmu -r5i,4LOl)7! - ti L> i' I4 IN Piaui 1980 ii4 91,092 Alazoa.s 1975 94 90, L^,9 .E;piito 3 ni,o1975 5 0 5- ft. G. i,-lNiorte 1980 150 130,951 ,e - rC 19t;C) 142 4iL6, L92 P.nr-' 1n.7 7 2885 639,8'1 -rzon- - 1575 2L, 36 io cle J;;neiro 1975 63 48 9,928; i I 81980 83 86,236 Joi I 1980 221 216, ¢86 U . L, 2,152 3,631,153 - 26 - B. In addition the following three year contracts are still WATER SUPPLY rlanined 'rLvesutmer it State Number of Cities Thousands of Cruzeiros Sao Paulo 84 1 ,455,o58 Minas Gerais 35 144,636 Distrito Federal 1 120,005 Acre 4 4,150 Rio Grande do Sul 86 224,349 Guanabara 1 238,338 Mato Grosso 12 50,o64 TOTAL 223 2,236,600 SEWIERAGE Planned Investment State Number of Cities Thousands of Cruzeiros Sao Paulo 112 1,473,263 Guanabara 1 65,o56 Bahia 1 95,308 Para 1 28,111 TOTAL 115 1,661,738 - 27 - Combined together those 3 programs will cost about US$1.5 billion over the period 1970-80, TWo loans alreadyr comm-tn ±+ (IiCi '.7 million from USAID and US$30 million from IDB) will finance a small part of 4this over I1 prgrm Sp-i4- f roe4t ar bein deveope __ __A-44 'J l. U1 Q ~V~, C± Ii _G~ I JJ ±i~ 'JUU J _~~ UV1 n-ui. biJA the PLANASA framework. The following are identified: 5.1 Bahia Water SuPPly. This project aims at expanding and improv- -i1g DdJLJ..a. We UUI OuOI UU wUaJr syste,,. to sply-AJU Br so)ion nee's for-ecasted for 1980. Economic feasibility and engineering studies are being completed. I otaJL proJect costu: UJ.PU4 ( million. FUoreiJgn exchange Uomj11Lponent: unU.I1LIItIeiU. External financing: US$30 million. Probable commitment date: 1973. Estimated disb-sement period: 197-7. Sao Paulo 'Water Supply - Distribution Network. The project con- templates increasing by one-third the number of households connected to the water distribution system in the Sao Paulo -Metropolitan area. This would involve installing about 2,800 km of water pipes and the necessary puraping stations. Total project cost: us$52.2 million. Foreign exchange component: not defined. External financing: US$15 million in addition to a loan already committed by IBRD. Probable commitment date: 1973. Estimated disbursement period: 1973-75. Executing agency: COMASP. 5.3 Sao Paulo Wiater Supply Main Duct Line. The project will install 214 km of large diameter water lines and some 30 water reservoirs. The first stage of the project is supposed to be completed by 1975. Total project cost US$225.2 million. Foreign exchange component (Phase I): U $40 million. External financing (Phase I): US$37 million. Probable commitment date: 1973. Estimated disbursement period: 1973-75. Executing agency: COiA SP. 5.4 Rio de Janeiro Water§ . Supm- The project contemplates expanding and improving the main Rio de Janeiro water line. Total project cost: US$30 million. Foreign exchange component: US$7 million. External assistance: US$10 million. Probable commitment date: 1973. Estimiated disbursement period: 1973-75. Executing agency: CEDAG. 5.5 Belo Horizonte Sewage Disposal Proqect. The proposed project will supplement the Belo Horizonte (Minas Gerais) water supply project currently under implementation with the assistance of IDB loan. By 1976 the project will extend sewerage services to about 2 million municipal residents. The consulting firm PLANIDRO - Engenheiros Consultores Ltda.. has completed the feasibility and engineering studies. Total cost: US$32 million. Foreign exchange component: US$5 million. External financing: US$16 million. Probable commitment date: 1973. Estimated disbursement period: 1973-76. Executing agency: Departamento Municipal de Aguas e Esgotos de Belo Horizonte. 5.6 Sao Paulo Sewage Svstem. This proiect contemnlates nonstructing 85 kmn of interceptors along the rivers crossing the Sao Paulo area. A plant to treat polluted water and industrial wastes also will hb const.rcted- Further extension of the system will only be done after completion of a general survey of the Sao Paiilo sewage problem. Tnotal project costi US;$10 million. Foreign exchange component: US$14 million. External financing: - 28 - U,420 miiiion addLitionai Lo a loan exterided by IM±v iII 1971. rbUUaUle commitment date: 1973. Estimated disbursement period: 1973-77. 5.7 Water Supply and Sewage Disposal in Eight Industrial Parks of Minas Gerais. With a view to promoting dispersion of industries ana population, the Minas Gerais State Government is developing eight industrial parks. These will be located at Ipatinga, Juiz de Fora (Benfica), Monte Carlos, Pirapora, Santa Luzia, Sete Lagoas, Uberaba and Ubeclandia. Each park will have facilities for water, sewage disposal and power. A state enterprise, Companhia Mineira de Aguas e Esgotos (COMAG), will develop the water supply and sewage disposal facilities on commercial lines. Economic feasibility and engineering studies have been completed by PLANIDR0, HIDROSERVICE and BRASCONSULT. Total cost: U3$21 million. Foreign exchange component: US$10.3 million. Exterrnal financing: US$10.3 million. Probable commitment date: 1974. Estimated disbursement period: 1974-75. Executing agency: COMAG. - 29 - O. AGRICULTURE For the period 1972-74, the growth target in arriculture has been fixed at 7 percent a year. In the Center and Southern part of the country the main government objective is to improve productivity and make external economies available so as to improve the competitive position of agricultural exports. An Export Corridor Program has been formulated for this purpose (see section 7). In the Northern part of the country the government launched several regional development programs to provide more employment facilities, promote land redistribution and irrigation projects and to stimulate non-traditioral aoriculture and agro-based industries. Overall emphasis is given to technological improvements at the farm level as well as in storing, transporting and processing agricultural products: increased use of fertilizers and pesticides is encouraged; research in agriculture is being developed, especially concerning improved seeds; extension services are being expanded. The Export Corridors Program aims mainly at providing infrastructure for the transport and export marketing of agricultural products. It also aims to develop agro-based industries to increase the value of the exported products. Although not entirely projectized, and, with external financing requirements not yet entirely defined, the four Government regional rural development programs - PIN, PROTERRA, PROVALE and PRODOESTE - are presented below, to.ether with identified projects either included in or relevant to these programs. In addition, a number of other agricultural projects not related to these regional programs are described in the last part of this section. A. PIN: Programa de Integracao Nacional. This program broadlv aims at speeding up the development of the Northeast and integrating the Amazon region into the national economv. It covers in totality or in Dart the followln- states: Maranhao, Goias, Para, Amazonas, Mato Grosso, Acre, Rondonia, Piaui, Ceara. Rio Grande do Norte, Paraiba. Pernambuco, Alagoas. Sergipe, Bahia and Minas Gerais. Three major objectives have been defined: (i) Construction of two maior penetration hi hwrvs: the Trans- amazornica and the Cuiaba-Santarem Highway. (ii) Colonization and population settlement over an area of 10 kilometers situated on both sides along those two roads. (lli) ImTplementation of the Northeast irrigation plan, of which the first stage should cover about 4.O,OO square kilometers. - 30 - In addition, the PIN includes various subprograms: (a) The Operation Oswaldo Cruz for malaria eradication; (b) the development of urban settlements at Picos, Imperatriz, 1Maraba, Altamnira, Itaituba, Santarem and Humaita; (c) the Radam project for the mapping and resource surveyin.x of about 3 million km2 in the Amazon regioni; (d) the construction of a new airport in Manaus. The pluriannual bud-get for 1972-74t allocates US$520 million cruzeiros to the PIh program of which about 37 percent will be allocated for the construction of highways, 23 percent for the colonization programn and 30 percent for the Northeast irrigation program (including transfers to PROVALE and PROTERRA). The remaining 10 percent will be allocated to miscellaneous projects. Although they are not all financed entirely out of the PIN funds, the following prolects are included here since they contribute to the same broad development goals. 6.1 Maranhao (Alto Turi) Colonization. The project seeks to develor aoout 500.000 ha of cultivable land between Ze Doca (Maranhao) and Parua (Para) along the new Sao Luis-Belem Highway (BR 316). About 5,000 families will hb setft1d in the area. with land titles and the minimum necessary governmental support by way of roads, extension services, housing and educational medical and marketing facilities. All-weather access to the Belem and Sao Luis markets would make the project attractive. The project will also serve as a laboratory tA desiwn the- most effiCient future settlemen-t projects for the region and for applied research in dry farmg. Tot-al cost: US$12.6 million. A loan has been signed with IBRI) on July 1972 for US$6.7 million. Foreign exchange component: US$2 Suuperintendenci- de Desenvolvimento do Nordeste (SUDENE). 6.2 Colonization/Road Development in West Maranhao. The Marc.nhao St ae Governmlent hasx p repareid a landu set U LeUU proec fr Uthe western part of the state, south of the Alto Turi project. The project consists essentially of two hlghwy-s connecting the Sao Luis regaon with the Belem-Brasilia Highway and a minimum amount of infrastructure to facilitate settltenent. Tutul cost: US$ 61 million (of which Tt27v rill ion will be for roads and US635.5 million for land acquisition, urbanization, health, education, storage, marketing, etc.). Foreign exchange c-u uponent: US$6 million. External financing: US$20 million. Probable commitment date: 1973. Disbursement period: 1973-76. Executing agency: The State Goverrnment of Maranhao. - 31 - 6.3 Colonization in the Amazon Basin (Altamira). The Government is constructing two (East-West and North-South) important penetration hi.Th- ways, opening hitherto inaccessible areas in the Amazon region. The Ministry of Agriculture through the National Institute for Colonization and Land Reform (INCRA) is developing a colonization project for an area along the East-West Amazon highway near Altamira. where about 50,000 families would be settled in the project's first stage. The majority of the settlers will come from the Northeast and the nrolect will fit in with the overall objective of expanding employment opportunities for Nort.heasq.terners.q To)ta,l cost (first. nhaseq):S$3 millionn PForgiYm exchange component: US$10 million. External financing: US$60 million. Probhh1 P rnnmiteznn+. nftep 1973 Q- qtimate.= Aiqhiirwmon. mc! 1Q7R-7() Executing agency: Instituto Nacional de Colonizacao e heforma Agraria along the first section of the Cuiaba-Santarem highwgay, INCXA is 4L.L -tm 'St hl.nrAA.r1A 1;- l; caAdy-. A1n5.iF7nv ;1;57V Z|U|W .V V4Vw|V A,C a , U.LJt.Lt.J DC].LLJIL V 'S J U L. ±iLJLJU Li I NVV I CtlLJL.L 0 z; will be settled with land titles, roadways, infrastructure and social equ.~L4ipment.i * . S .e 4,300 square L L.Lom.e.ers wil b 'L Ue assJlgne1tU forLL LfUo Ur-oL and livestock. Additionally, the project covers forest exploitation and reforestation -1 the su rounding area . A research center will be bu- t in Belterra from which technical assistance and extension services will. be provided. EcuiiuiIi feasibility and engineering studies are underway. Total project cost: US$42 million (about US$10 million for the Research Center). Fo-reign exchanige component: undefined. External assistance: US$23 million. Possible lender: IBRD. Probable commitment date: 1974. Disbursement period: 1976-70. Executing agency: TNCRA. 6.5 Northeast Irrigation Program. The Executive Group on Irrigation for Agricultural Development (GEIDA) has prepared a national irrigation plan whicn inciudes some 56 irrigation projects scattered over the Northeast including the Sao Francisco Valley. Among that list some 13 projects have been attached higher priority and 7 are already under execution. The total area (56 projects) considered for irrigation covers some 189,000 ha. The 56 projects represent an investment of 3.2 billion cruzeiros (about US$535 million) over the period 1971-80. Foreign exchan-e component:undefined. External financing: US$240 million. Possible lenders: IDB-IBRD. Government agencies (DNOS, DNDCS, SUBALE) are responsible for execution of the projects. 6.6 Northeast Integrated Agricultural Development. This project integrates land redistribution, land development and irrigation activities at eight sites: Aires de Souza, Forquilha, Curu, Banabuiu, Baixo Jaguaribe, Baixo Acu, Moxoto, Itapicuru. Total project cost: US$130.8 million. Foreign exchange component: undefined. External financing: US$30 million. Possible lender IDB. Probable commitment date: 1973. Estimated disburse- ment period: 1973-76. Executing agency: Ministry of Agriculture. B. PROTDRPRA! Pro-rnma de RdisthrulJhcao de Terra e He Estimu1.o a Agro-Industria do Norte e Nordeste. The basic purpose of this program is to redistribute land to peasants and small farmers. It alsQ a4ms at improving working conditions in agriculture and at developing agro- based industries in the QTDAM (Sueitneclade nenvo--- ento so Amazonia) and SUDENE (Superintendencia de Desenvolvimento do Nordeste) 'Pill I and A rs+rbto obetv w;' k"+ k +- C-J-be achieved +hrough purchasing or expropriating land to be resold to small farmers. Credits fr initi ,1 settling or - for -er'rgng- propertie +oo small e exploitation will be granted to small and medium farmers. PROTERHA will a1L s iJA-a1iue .LiiSAU0 LUJ Ji J.L '2J~-%,O U'LI~U.i~ LIIZ; Z) .U L IUUO U._Y J aIiu the acquisition of modern inputs for agriculture. Expansion of research 4-4 4 .. j4 _ i, _4 -1 .__ -- 4 _- -2AN aU Iu.LV DUXeo d.iU extiAl.,Slli -1 t UAl Ot:;1 VLces lC;LLU al. C L1Ui UU±UU. The budget of PROTEXRA has been fixed at about US$670 million for the period 1972-76. Of this, about half will come from the 1973-74 Pluriarnual Federal Budget. In additlon, ulte progrLamLil Wl_ be allocated 20 percent of accruals from the fiscal incentive (Art. 34/18) system for tle Nort-least. AddUitUional 0 finalnCiaLl t'ranet-llrS froml PI' hilave also Deen scheduled. The program will be developed through a series of projects under preparation. Tne following ones nave been tentatively identiIied: 6.7 Agro-Industry-Northeast. This project contemplates creating in the Northeast agro-based industries for processing tropical fruits and other indigenous products. Economic feasibility studies and engineering studies will be carried out by a consultant firm (ITAL) and completed in 1973. Total project cost: US$80 million. Foreign exchange component: undefined. External assistance: US$40 million. Probable commitment date: 1974. Estimated disbursement period: 1974-77. Executing agency: Ministry of Agriculture. 6.8 Agricultural Research Project. To permit more flexibility in research administration, the Ministry of Agriculture contemplates trans- forming the "Departamento Nacional de Pesquisa Agropecuaria" (DNPEA) into a semi-public agency able to mobilize private financial resources. The agency will be responsible for promoting, developing, supporting and coordinating agricultural research. Total project cost: US$142 million. Foreign exchange component: US$12 million. External financing: US$60 million. Possible lender: IBRD. Probable commitment date: 1973. Estimated disbursement period: 1973-77. 6.9 Reorganization of Northeast Suear Industry. The Ministry of Industry and Commerce has adopted a program to improve the per ha and per raw material unit Droductivitv of Northeast cane and sugar production, - 33 - respectively, up to the levels presently being achieved in the Center- South. The aim is not to increase overall suzar production but to improve the productivity of the Northeast sugar industry to the point where it may hp reasonably profitable at fair wage rates and a consumer price equal to that of Center-South sugar. The means adopted for achieving these goals are: (i) modifiction of the legal re@ime which formerly assigned in perpetuity cane and sugar quotas to individual producers qni to states regpardless of effiriency; i the creation of pe-ial fi nmnicino foi 1iitles for nroducers who will: (a) merge sugar mills; (b) integrate cane production and milling; (c) relocate cane and sugar production activities; and/or (d) re-equip mills; (iii) the adoption of a new pricing policy whereby Northeast m41'lers are lorced lo reduce 4the-prices -- to 4the Center- -L1LJ-L± L J IL~ uu .j uuu tla -L.J y±.i.Lut= L,' .,iie c IIe South level (i.e., by 15 percent) with the help of a subsidy which is financed from the Sugar Export Fund (i.e., the difference between U.S. quota export prices ardu the internal price) arnu which will gradually be reuuceu to nil over a 6-year period; and, (iv) the allocation of PROTMRA funds to finance the reoccupation of cane and mill workers left in surplus by productivity improvements. That part of the program dealing with the reorganization of the miiis is regarded as suitabie for external financing. Total cost: US$120 million. Foreign exchange component: US$20 million. External financing: US$50 million. Probable commitment date: 1973. Estimated disbursement period: 1973-78. Executing agency: Instituto de Acucar e do Alcool (LIA). C. PROVALE: Special Program for the Sao Francisco Valley Develop- ment. This integrated program covering the Southern part of the Northeast "Drought Polygon" has many objectives: (a) Design and construction of a road network. (b) Agricultural Development and promotion of agro-based industries. (c) Development of urban centers (including sewage and irrigation). (d) Colonizat,ion a - reforestavi PjOEn IL- %J U JI1D .L IAU U.L%JIL W..L WC U=L6CW0CL ULD U OAL .~Lffl~CL.L.LL"WJ %&"M . .L%A navigation and irrigation purposes. (f) Improvement of Sao Francisco river navigation and renewal ofL Lde f lIee t. LU m..L DLO> .LL±aJ.4 LoiUL.~ 4.L.-L - 4L 4.'-z -L - - - -- -LU- Is 4.1-71 tpr2- 74 period amount to US$140 million. Funds come from budget appropriations and transfers frum PIN anld PROTRnRA. Mwuay pr-oJects are being developed in the context of this program; however, detailed information on external financing require-merts is riot yet available. D. PRODOESTE: Programa de Desenvulvimento uo Centro-Oeste. This program covers the southern part of the states of Mato Grosso, Goias and the Federal District. It mainly includes: (a) Constructing a basic road network and a feeder road system. (b) Installation of storage facilities -- silos, warehouses, and cold storage installations. (c) Water supply and sewerage facilities. (d) River stream adjustments and land recuperation. Total budget allocated amounts to US$110 million for the period 1972-74. E. Agricultural Projects not Incorporated in Regional Development Programs. 6.10 Flood Control Program. In the context of its flood control projects for Rio de Janeiro, Itajai Valley, Recife, Porto Alegre and Canoas. LNOS, the federal flood control agency, also expects to recuperate land for cultivation. Economic feasibility and engineering studies have been completed. Total project cost: US$185 million. Foreign exchange component: US$20 million. External financing: US$98.5 million. Probable commitment date: 1973. Estimated disbursement period: 1973-76. Executing agency: DNOS. 6.11 Camagua - Multipurpose Hydraulic Resources Project. The project near the Lagoa dos Patos in Rio Grande do Sul, would permit a considerable improvement in rice and animal production on some 157,000 ha of land. Diversion of water of the Rio Gamaqua and provision of adequate drainage would enable rice-improved pasture rotation in this area. The project would also provide flood control and power generation (63XW). The project was prepared by Tahal-Sondotechnica-INTECSA and is planned for a 10-year period. Estimated total cost: US$50 million, (includes US$11 million for electric energy). Foreign exchan:,e component: US$10 million. External financing: US$43 million. Probable commitment date: 1973. Estimated disbursement period: 1973-81. Executing- agencY: Departamento de Obras de Saneamento (DNOS). 6.12 Soil Conservation and Intensive Agriculture Project of Minas Gerais. The State Government proposes to launch an intensive soil con- servation program in the agricultural areas of the state with a view to increasing productivity. For the purpose of project plannin7 the state has been subdivided into eight regions and investment is proposed in keeping7 with the human resources. technical possibilities and market potential of each region. About 9 million ha of the 47 million ha of presentlv cropned area in these eight regions will benefit from the program over a 10-year period. Total cost: US$91 million. Foreign exchange component: US$I0 millinn- Ryternnl financing: UT$L45 million Prohbahle commitment date: 1973. Estimated disbursement period: 1973-76. Executing agency: The State Government of Minas Ge-ais (Department of Agriculture). 6".13 IiTAr; 1 Sragr C IT o 1T-AAsT T,f T ed p o e aims to increase meat production and improve quality. Involved are the acquisition of h-.ree8lingo stc+,- +the -.1 o-f artiflcll ln s a.i -o,, n- the improvement of pasture land and the modernization of marketing facilities. Economic feasibilitly studie-s are unde-r completion. 41A projec cost: US$100 million. Foreign exchange component: US$3 million. External financing: U $ 25 mlllion. Posslble lender: TIDB. Probable --mr,4tln dae: -19C73. V £ U O~~J~LtS.t~~ . .±j.Jt) . £4. 'JkJa LJ..L1~~~ U¼fLJi"L ULI fU '&A UC . Estimated disbursement period: 1974-78. Executing agency: CONDEPE. 6.14 Livestock II (Stage III of IBRD-kssisted Project). This would cons tit ~ute +11 4-1- - AW^OV -4U - P-1 4 -X 4 -_1 A___--1 U -C---lUlr 4.-di being4 _4 implemented by the Central Bank through its livestock development agency CO.,DDPE. This c e diu lJir.e fiCnaces fe n ce e nd b-uilding cons truCtIon, as well as the seeds and fertilizers needed to improve pastures. Total project _os 0s. TTO1 e . . e11n _ : V- _ _- -- - - - - - - - 1A TTI' m il ln Ex - erAl WU . 11IA M.---U 11@reSIcSsI I. d u-.Li t L11L1i t: t uUII UU11 1 _ i -1 J; UD9.) m JI-n A Az u1 I 1!, . D 1t i financing: US$94 million. Possible lender: IBRD. Probable commitment date: 1974. Estimated disbursement period: 1974-77 -Execu tin agennc1 CON7EPJ27 6.15 imlproved Seeds. The project will develop improved seeds for rice, cotton, potatoes, peanuts, soya, beans, corn and wheat for the Southeastern part of the country. Total project cost: US$25 million. Foreign exchange component: US$5 million. External financing: US$10 million .iJned wlhU ,JBli inL ULW, 1972. Esu,Unaued disbursement: i92(-74. Executing agency: MINAGRI. 6.16 Foot and Mouth Disease Eradication. This project is the second phase of a nationwide campaign. All animals older than four months are to be vaccinated. Total project cost: US$67 million. Foreign exchange component: US$10 million. External financing: US$15 million. Possible lender: IDB. Probable commitment date: 1973. Estimated disbursement period: 1973-76. Executincg agency: CONDEPE. - 36 - 6.17 Agricultural Development for Export Crops in Minas Gerais. This project would provide adequate credit in support of cotton, corn and soya production for export. It has been assumed that by 1975 the state's total exportable surplus in these crops will reach 900 thousand tons, the target set up in the Export Corridor Program. A credit line of about US$99 million would be required to finance the technical inputs (fertilizer, seeds, pesticides, etc.) required to attain this level of exports. Studies are underway in the State Development Council. External financing: US$50 million. Foreign exchange component: unidentified. Estimated commitment date: 1973. Estimated disbursement period: 1973-75. Executing agency: Secretary of Agriculture and Banco de Desenvolvimento de Minas Gerais (BDMG). 6.18 Terminal Markets. The construction of terminal markets is planned at the following major consumption centers: Niteroi-Sao Goncalo, Porto Alegre. Curitiba, Rio de Janeiro, Belo Horizonte, Goiania and Brasilia. The food supply of those centers will be improved by providing better and larger storage facilities. At the same time it is hoped that market modernization will reduce the cost of handling agriucltural products. Feasibility studies are already completed for Rio, Niteroi, and Belo Horizonte. Total proiect cost: US$68 million. Foreign exchange component: US$1.3 million. External financing: US$25 million. Possible lender: TDB. Probable commitment date: 1973. Estimated disbursement period: 1973-76. Executing agency: Grupo Executivo de Modernizacao do Sistema de Abastecimento - GEMAB. 6 19 Fishing Terminal. The proiect aims at rationalizing and develop- ing fishing activity. It includes setting up a system of incentives for shin constructdon.. installine renair facilities, and nrovidina credits for fishing enterprises. The project also will provide technical training to fisher-men. Total nronict cost: n.SA) m-illion. Voreiwn euxchanpe comno- nent: US$5 million. External financing: US$15 million. Probable commitment rda+>: 1973= Estimated disbuvrsPmPnt period: 1973-75= Exec-utig agency: SUDEPE. - 37 - 7. THE EXPORT CORRIDORS PROGRAM The Brazilian Gove.m.ent has barknhrIed on a prorrm aimpe at. dramatically promoting the exports of both bulk and processed agricultural products thramgh the ports ofP Rlo Grande (Pin Grande rdo Suil), PaqrannaXu (Parana), Santos (Sao Paulo), Vitoria (Espirito Santo). For bulk cereals, an-d oill crops tLA6 target would be to export an additional -seve million tons of soybeans,corn, sorghum and pellets by the late 1970's. For processed p,roducts, te are variou _ es r s ,A- il jJ~'J~ Lu,1UALCl C- Rl. C VMIOUS~' PIJLO- -j to develop meat and citrus juice exports. A coordinating group has been C DU 1 ax U UIIC I C;uC Cl d.C V Ct LAk LA C_l 't L &i .ty CjJ - CO.L Lus L LI. U . 'A- LuL U1 '1A V_ A L . U 3ank and including representatives of the Ministries of Finance, Planning, r A-4-4u-- andu i-----jerce, Agr-ic 'tae and Transpot nd of the Nat-ion ' Monetary Council. At the state level, working groups involving representa- tlives of the vaious Statte Secretaries and oL tLhe State DevelopmU,ent Banks help in identifying and defining local projects. In August 1972, the Central Bank group presented a document out- linin- the investment program for the four export corridors based on the ports cited above. This program calls for a total investment of about US$810 million to finance mainly transport and storage infrastructure. A US$125 million project for developing agro-industry and a US$13.5 million provision for technical assistance to farmers are also included. However, the needs for technical inputs (fertilizer, farm machinery, seeds, etc.) necessary to attain the program objectives have not yet been worked out in detail and are not considered here. This is why some specific projects for agricultural development are listed in the agriculture section (Ch.6) rather than here, although they are also to promote agricul- tural exports. Also at this writing, the scope and content of the agro- industry project had not yet been fully defined. Thus, the following list, drawn from the Central Bank document, is still preliminary and subject to change. As a matter of fact, the transportation part of the program has already been slightly revised by GEIPOT after the visit of an official Japanese technical mission on August-September 1972. No changes have been made to the following list to reflect those modifications since no definitive program has yet been transmitted to the Bank. The main executing agencies are: (i) for the railways projects: DNEF (Departamento Nacional de Estradas de Ferro) and RFFSA (Rede Ferroviaria, S.A.); (ii) for the port projects: DNPVN (Departamento Nacional de Portos e Vias Navegaveis); (iii) for the intermediate storage: CIBRAZEM (Companhia Brasileira de Armazenagem). Projects are listed here according to their prio-rity. Priority r11il projects totalling US$495 million, out of which US$328 million is expected to accrue from external sources, are to be concluded in March 197I4; r ior±uy t 2" projects neeu Ioniger lead time anau are only to De concluded in 1975-76; Priority "Y3' projects are expected to have no effect on exports up to 1974. Priority `:21 and 1`311 projects aitogetheo amount to US$315 million. As the original rationale for this program was to diversify a-ricul ural exports so as to reduce depenaence on coifee the International Coffee Organization (ICO) in Mlarch, 1972 made available US$2 million from the Coffee Diversification Fund for the preparatory work including technical and marketing studies. The studies contracted to various consuiltants are now underway and ICO has been requested to contribute US$40 million in the first priority program. Five subprograms are identified out of which four concern the export corridors in the states_' of Minas Gerais/Espirito Santo, Sao Paulo, Parana, dtio Grande do Sul, and one regroups all projects tiat are riot as yet specifically located. First priority projects Minas Gerais/Espirito Santo Corridor 7.1 Construction of silos to provide approx-inately 100,000 tons of static storage capacity distributed in the five most productive areas of influence of the corridor. To+al cost: US$3.5 million. 7.2 New railway alignment between Belo Horizonte and Costa Lacerda. This 84 1om-lonv new section would link more efficiently the hinterland railway network of Minas Gerais and Goias to the modern Companhi- Vale Rio Doce (CVRD) railroad which goes from Costa Lacerda to the port of Vitoria/Tubarao and transports export bound iron ore. AgriculturEl products for export from the Center/WJest of Minas Gerais and Southern Goias could then also be shipped by rail to the port at a lower cost taking r dvantage of the excess capacity on the CViD line. The total cost is estimated at US$27 million with a 30 percent foreign exchange component. 7.3 Cold storage installations on the left side of the Port of Vitoria with an initial static capacity of 8,000 tons. The project, to be located at the present general cargo berth would also include a rapid loading system with its accessories. Total cost: US$2 million. t.4 Technical assistance for farmers in the three states of Ilinas Gerais, Esuirito Santo and Goias. The Ministrv ol Agriculture plans to increase the extension service in those three states. Total cost: US$3.75 minlion. 1/ The area of influence of these four corridors also includes the Southern nart of Mato Crosso and Goni2s and the Western pnrt of' Santa Catarina. - 39 - 3ao Paulo Corridor 7.5 Construction of silos with a total capacity of about 150,000 tons distributed in the main producing areas. oUUal Cout: U$) mfillIUll. 7.6 Construction of a new rack rail on the Cuuatao/alto do Serra stretch of the Santos-Jundiai line. A new rack railroad with electric traction is now being implemented to replace the cabie traction which limited considerably overall capacity. This project would consist of putting in a second rack rail on a second line, thus quadrupling the present capacity. The total cost is estimated a-t US$20 million with a 50 percent foreign exchange component. 7.7 Construction of a railway connection between Maua and Jurubatuba. This 33 km-long railway section completing the rail link around Sao Paulo would connect the Sorocabana line of the FEPASA system with the Santos- Jundiai line of the RFFSA system and thus provide for an alternative way of shipping grain and other products to the port of Santos. Total cost: US$12.5 million with a 30 percent foreign exchange component. 7.8 Cold storage installation for meat and fruit juices on the -i.ht side of the port of Santos, with a suatic capacity of 30,000 tons. Total cost: US$12 million. 7.5 Grain loading facilities on the right side of the Port of Santos. This would include all the equipment needed to receive, reclaim arid ship- load bulk cereals to be stored in two warehouses presently under construc- tion. This project was prepared and will be financed by a Japanese consortium, Ishikawajima-Harima HeavyIndustries Co., Ltd./C. Itoh and Co., Ltd./The Doi-Ichi Kanhyo Bank, Ltd. Total cost: US$17.8 million. 7.10 Technical assistance for farmers in the two states of Mato Grosso and Sao Paulo. The Ministrv of Azriculture plans to increase the extension services in those states. Total cost: US63.?5 million. Parana Corridor 7.11 Construction of silos with a total static capaclty of about 150,000 tons in the five most productive areas. Total cost: US$1 million. 7.12 Construction of the railwav connection Itaneva-Ponta Grossa. This is a section of the Southern Trunk flailway line which links the Sao Paulo industrial area to the southern states. It was first conceived to trans- port wheat from .tio Grande do Sul to the Sao Paulo mills but it could also offer ar alternative outlet for the Parana products throu-h the nort of Santos. The 210 km-long section is already being constructed with availeble local resources nmountino to about US$11.6 million The total cost is estimated at US$45 million with a 33 percent forei-n exchange comnone t;. - ho - 7.13 Eqehabilitation of existing lines. A new aliinment on the Curitiba-Engenheiro-Bley section as well aE rehabilitation works on Paranagua-Curiliba sectior are contemplated in order to increase railway participation in the transport of bulk cereals up to about 50 percent of the total (that is, 2 million tons annually) by 1975-76. Total cost: US$20 million with a 15 percent foreign exchange component. 7.14 Grain loading facilities in the port of Paranagua including the construction of two 35,000-ton warehouses and a railroad terminal. This project has bee- s-ltudied and will be mostly financed by the Japanese con- sortium cited above (7.9). Total cost: US$12.8 million. 7.15 The construction ot a 100,000-ton silo in the Port of' Paranagua. Total cost: IJs;2O million. 7.16 Technical assistance for farmerE in the state of Faranca. As for the other states, this project aims at improving the extension services. Total cost: Us$2.5 million. Rio Gra-nle do 6ul Corridtor 7.17 Construction of silos with a total static capacity of about 150,000 tans in the main producing areas. Total cost: US$5 million. 7.18 Cold storage installcations for the port of Rio Grande with a static capacity of 10,000 toIIs. This project is prepared and financed by the Japanese consortium as for projects 7.9 dnd 7.14 Total cost: US$8.3 million. 1.19 Grain loadinr. facilities for the port of Hio Grande, includI1n-' as in the San-tos case, all the equipment needed -to receive, trans;:ort a.d shipload bulk cereals. This project also is financed by the Jacanese consortium.To-tal cost: Us$16. million. O-ther projects 7.21) Railway rolling stock. For the period 1972-74 it has been estimated that 2 700 grain cars, 100 refrigerated cars and 200 locomotives will be needed. Fifty percent could be manufactured domestically and the other fiftv percent imported. Total cost: US$10q million. 7. 21 Dred-:Yin- and civil er£LinePrino works i=n thp norts of Rio Grande, Farara and Santos. A dredging program in4 m. for Santos anid Rio Grande; 12 m. for Piran I A ilreadyv unrderway, which shouiild allow access to higher capacity ships. The project is carried out by DNPVNT at a cost of UT4 n.llinn- '1 92 A4 ro Tnchilstr-yr This project ulm p at "o the exports of frozen beef, citrus juice, soybean cakes and pellets, by deve] opirJ,, adequate pron-ess-ing, storazge and transport facilities in the -1 - CerntLer -Sout'Ih exportu cor.riudor s'uat'es. In- -addtin 4,lclau 4ub- projects directed to internal consumers may also be considered. They include dairies, fruit an,d vegetable cannerles, and casto.^ bean oil extraction plants. Feasibility studies are being done. Most of the sub-projects would be implemented by manufact-rers and exporter-s who will get credit from the State Development Banks. Total cost: US$125 million, of which US$50 million may be financed by an IBRD loan and US$50 million by the Central Bank. 7.23 Installation or extension of agricultural demonstration plots with all the required equipment and support. Total cost: US$4 million. 7.24 Food technolo,r. Up to US$2 million would be used to support the National Food Technolory Research Plan in the states of Minas Gerais, Espirito Santo, Sao Paulo and Parana. 7.25 Program preparation. US$2 mlllion has been provilded by the Inter- national Coffee Organization to finance: (i) Technical studies and coordination operations of the Central Bank (USE;.2 million). (ii) International 11arket Research Studies (US$.3 million). (iii) Engineering management consultants fot the development of port projects (US$1 million). (iv) Other expenditures (US$.5 million). Second pr-ority projects M;inas Gerais/Espirito Santo Corridor 7.26 Hailway rehabilitation on the sections Belo Horizonte-Goiandira and IbiaT-Uberaba. The track will be renewed and signalling and tele- communications equipment will be replaced in order to increase the presently limited traffic capacity on these links in the hinterland of Minas Gerais. Total cost: US$12.5 million of which the foreign exchange component repre- sents 15 percent. 7.27 Port of Vitoria extension with the consLruction of a new 530 m.- long berTh (Capuava) with a 12 m. water depth. This project would also include constructing silos and a loading terminal for steel products (fines). Total cost: US$24.5 million. 7.28 Port of Vitoria silo for storing about 30,000 tons of corn and other cereals, with the necessary loading and unloading equipment. Total cost: Us$6 million. cSo Paulo Corrid or 7 90 Port ' Qo+f C Cno rin silo for +i )nhaou lO0,00i tops of bulk cereals. Studies need to be done to define the location and the .L Li ty . JL*h.L . . I*J-.'.- U capa city Total -ost US$2~0 mJilion. Riio Gra-nde do- oS,- Corri-dor I * AJ IL -LLW PS4J.JI1IJA U 4. LS ULISA~ ' VO. 4 U0 .J U4. UI W Si L S Ull Q U~ network. Total cost: US$23.5 million, of which the foreign exchange componentu wouiud represenu 15 percen. f I.jeW .Ea±±wcXy aJglU!it4l Ul Ull uL41 X0 ( kmfJ- lo1g IUUb 1. ' UI IH WI U.l l / 5 IU o Gabriel/Hulha Negra. The present traffi.c capacity is very limited on this line connecting the interlor of the state to the port of -i o Gr-ande, because both the alignment and the infrastructure are very poor on the above sections. TLota-l cost: UOS$4r sMillion wL'Uh a -30 percent foreign exuhanbEt compont!nu. 7.32 rPort of Rio Guraide grauin silo for storing 0u to 1UU,0UU tons Of bulk cereals, next to the present COTRIJUI silo. Total cost: US$15 million. Other projects 7.33 Railway rolling stock. It is estimated that after the period 1912-74 there will be an additional need for 800 grain cars, 10 refrigerated cars and 200 locomotives. Total cost: US$72.5 million. Third priority projects Minas Gerais/Espirito Santo Corridor 7.34 Railway realignment on the 180 km-long sections Tobati-Bambui and Goiandira-Pires do Rio. Total cost: US$58 million with a 30 percent foreign exchange component. Sao Paulo Corridor 7.35 Railway connection Samarita-Piacaguera. This link will replace the end section of the Sorocabana line leading to the port of Santos (right side) and will connect instead with both the Santos-Jundiai line and the future left bank rail access. This left bank access to serve a corn silo and a fertilizer terminal is being financed by an IBRD loan. Total cost: US$337 million. 7.36 Port of Santos warehouses to provide additional storage space for general cargo. Total cost: US$4 million. - 43 - 8. INDUSTRY T-e± Bra.zlllan G-overn.ent's Qt nduLst+riJ al. d* evel opm'ent strategy con- centrates on increasing the competitive position of domestic industry by lowerir.g--4- proucio costs and44 ,-roln -4-,e q i_ of oupt - -Ia .t'~Y4 116 Pa. VUWtLL U.LAJIi L.AJO UO LIL _lU 1..LJJIVjJi 0 J1 I U 10 tU.0.L.L UJY V0± WU JkU.P U. Lip 0...'..~J emphasis is given to export promotion; import substitution also remains amain objective. eecial attetion is given 4th capia l goods4indstry LIJQL 0UJ0.t.LV . 0.CL- u uu0I .ul L t LaOi1U U LaCL.FiU1L U .-LI1LUUDu- since expansion of this sector is crucial to achieving the targeted rate of economic growth wlthout jeopardizing the balance of paymlIent situation with an unmanageable import bill. The Government's freedom of action differs among industrial sectors. In the basic sectors (steel, petroleum, petrochemical, mining) where enterprises are either state owned companies or mixed enterprises with Go-vernment majoriLty participation, tne Government has complete controi of investments. In other sectors, the Government influences investment through fiscal incentives and credit facilities made available upon review by the National Council of Industrial Development. Technological development will complement the industrialization effort. A number of technoloar research centers are to be established during the 1972-74 period (see project list under education). In addition, government strategy implies better utilization of human resources. This is one of the focal points of the educational reform at both the primary and secondary levels. For the period 1972-74, total publicly supported investment in industry is projected to amount to US$5 billion. The sectors of major effort will be steel (US41.3 billion), chemical and petrochemical (US$0.9 billion), electric and mechanical industry (US$1.3 billion), nondurable consumer goods (US$0.7 billion) and cement (US$0.2 billion). However, this is not entirely reflected by the following project list which only considers projects suitable for external financing. Pulp and Paper 8.1 Wood Chips. The Companhia Vale do Rio Doce (CVRD) has undertaken a program aimed at planting some 350,000 hectares of eucalyptus trees in the states of Minas Gerais and Espirito Santo. Supporting railway, highway and deep-sea port facilities specially equipped for handling and shipping of chips would have to be developed. This should permit the production and export of 6 million tons of green eucalyptus chips or 1.5 million tons of pulp. Some 20,000 jobs will be created in one of the poorest regions of Brazil. Chips exported to Europe and Japan should generate annual exchange earnings of about US$90 million. Feasibility studies were completed in 1970 by CVRD with SERETE, S.A. Engenharia assistance. Engineer- ing studies will be started in 1973. Total project cost: US$210 million. Foreign exchange component: US$35 million. External financinZ: US$60 million. Probable comrnitment date: 1973. Estimated disbursement period: 1975-79. - 44 - 8.2 Pulp Mill - Miinas Gerais. The project calls for installation of a 750 tons/day capacity bleached pulLp mill. The raw material will be eucalyptus from existing forests or from future CVRD plantations. Besides creatingr 5UW jobs in Ipatinga where the mill will be loca Ged, the project will contribute about Us$140 million to export earnings annually. Economic feasibility studies were completed in April 1971 with the assistance of Jose Carlos Leone e Associados as consultants. Engineer- ing studies should be completed by 1974. Total project cost: US655 million. Foreign exchan!,e component: US$25 million. External financing: US$25 million. Probable commitment date: 1973. Estimated disbursemecit period: 1973-7:5. 8.3 Pulp and Paper MIill - Espirito Santo. This project also will utilize CVID eucalyptus. The project aims at exporting 1,000 tons of eucalyptus bleached pulp a year mainly to Japan. It is located in the north of Espirito Santo. It will create about 600 jobs and contribute US$50 million to export earnings annually. Economic feasibility studies were completed in October 1970 with the assistance of Jose Carlos Leone e Associados as consultants. Engineering studies should be undertaken in 1974. Total project cost: US$120 million. Foreign exchange component and external financing: US$50 million. Probable commitment date: 1974. Estimated disbursement period: 1974-78. Japanese equity participation is likely. 8.4 Pulp and Paper Mill - Sao Paulo. Cia. Suzano de Papel e Celulose plans to install a 500 tons/day short fiber cellulose mill and facilities for paper manufacture. Annual forei-gn exchang;e savin,z is estimated at US$11 million. An economic feasibility study was completed in 1971. An engineering study is underway. Consultin- firm: Leone. Total cost: US$55 million. External financing: US$6 million. Foreign exchang,e component: US$13.5 million. Probable commitment date: 1973. Estimated disbursement period: 1973-75. 8.5 Pulp M1ill - Minas Gerais. This project is distinct from that described above (8.2) in that -- inter alia -- it is promoted hv TNDT rather than the CV.?D and would produce for the domestic market rather than oxonort. The initial phnse woulid inciiude instnl lation of 2 500 tons! day kraft pulp mill. A later stage (not included in costs quoted here) ,itoiid add facilities for paper and cardboard mran.ufacture. !\o f 1i bi i^ r study is yet under way. Total cost: US$50.6 million. External financing And for;iin Prr-hnntr -'nmnnnonf.- TTICZl). miilli,n P-ih hl0o vwmi+mnf,+ date: 19714. Estimated disbursement period: 1974-76. Petrochemical and Chemicals 8.6 Bahia Petrochemical Complex. The project would install a petro- chemicl' com.plex near Salvador in the state of o ahia. Te first stage (already partly being implemented) deals with the production of aromatic niLe.trmediautes 11 (yICL.L±eU dph a LuLyL-tJ U b±JLiI1W -utilizing i tsi ifpuflk-UeU - 45) - from sac Paulo. The second stage (1973-77) calls for the construction o' a basic feedstock plant (ethylene and propylene) using natural gas from i3ahia and Serg-ipe and napntha. Downstream industries for polyester fibers, household plastics, detergents and acrylic glass will also be installed. Economic feasibility studies have been completed by Japanese and French (French Petroleum Institute) consultants but are held in conf'idence by the Government. Total project cost is estimated at about US$600 million (US$120 million for the feedstock plant alone). No estimate of the f'oreign exchange component is yet available. External financin- requirements will be around US$240 million. Preliminary plans indicate that the complex will be operational by late 1977. Executing agency: Petroquisa. 8.7 Me.,hanol-Metanor, Ltd. This project contemplates construction in the industrial center of Aratu (State of Bahia) of a new factory producing 50,000 tons/year of methanol extracted from gas. This project will be integrated into the Bahia petrochemical and chemical complex. Economic feasibility studies were completed in 1970. Engineering studies should be completed before the enc of 1972. Applications have been filed with BNDE for domestic credit. Total project cost: US$8.9 million. Forei-n exchange component: US$3.2 million. External financing: US$2.1 million. Possible lenders: Japanese suppliers' credit agency. Probable commitment date: 1973. Estimated disbursement period: 1973-75. 8.8 Petroquisa-Bahia Ammonia Plant. The project would install a 1,000 TPD ammonia/urea plant in the state of Bahia using natural gas from that state and from the state of Sercipe. Included in the project is construc- tion of a pipeline from the plant to the port of Aratu as well as installa- tion of port storage facilities. Output will be used mainly as fertilizer. The new plant will be integ>Jrated with the existing COPEP plant. Economic feasibility studies conducted by BNDE and SUDENE will be completed in 1973. when engineering studies are to be undertaken. Applicatiosis for domestic Linancing have been made to the National Bank for Economic Development. Total pro,-ject cost: US$65.5 million. Foreign exchange component: US$16.4 million. External financing: US$12.4 million. Possible lender: IDB. Probable commitment date: 1973. Estimated disbursement period: 1973-75. Executin, agency: Petroquisa. 8.9 Nitriflex - ABS Resins. Two plants will be constructed: one to produce 7,500 tons/year (TPY) of ABS resins, the other to produce 10,000 tons/year (TPY) of nitrate rubbers and latices, cord dipping latices, carboxylated latices and paint resins. Economic feasibility studies will be completed by the end of 1972 and engineering, studies in 1973. Applica- tion for domestic financing has been made with BNDB. Total project cost: US$17J4 million. Foreign exchange component: US$4.7 million. External financing: US$7.0 million. Probable commitment date: 1973. Estimated disbursement period: 1973-74. Sponsoring agency: BIDE. 8.10 DMT for Polyester Fibers. Petroquisa envisages building a plant to produce 5.000 TPY of dimethyl-tereftalate intermediates. This nlant,. - 46 - part of the Bahia petrochemical complex, will be located in Camacari. The production of TMT will serve as an input for the domestic polyester industry, substituting for imports. Total project cost: US$35 million. Foreign exchangZe component: undefin ed . wternal assi.4ance: TQ$14 million. Probable commitment date: 1973. Estimated disbursement period: 8.11 Petroquisa = CVPralacxt,la. Petroquisa L conte,,p-la buidin as part of the Bahia petrochemical complex a plant to produce copralactama using benzene as an1 input4. Th4-_-4is plant will have- a-u poutn -ity o- 35,000 TPY. Economic feasibility studies will be completed in 1973. Total project cos U_ Tn).PL M±O . True±i Mc.[I .-'c_1. umpuxie_11b; Unueiieu. External financing: US$18 million. Probable commitment date: 1973. Estimated diLsbUusement p-iod 1973-75 8.12 FISIBA, Ltd. S.ynthetic Fibers. The CompanhiLa ribras Synteticas da Bahia would install a unit for producing 24,000 TPY of acrilonitrilic .A _monomer. T _:- _u .ni L_:_t w_ul b_e J- - - - 1 _- | . PA- -. IIIUIII/I'I U1 U U Vu o iLUegraueu wiLT a 4,OuU mrl Iiner proauction unit to be operational at the end of 1973. A second fiber production unit would become operational at the end of 1974. This project would utiiize ammonia and propane both of which also will be produced in Bahia. Economic feasibility studies will be completed by the end of 197c and engineering studies will be undertaken thereafter. Applications have been made with BNDE for domestic financing. Total project cost: USU24.1 million. Foreign exchange component: US$9.2 million. External financing: US$7 million. Prooabie comriainent date: 1973. Estimated disbursement period: 1973-75. 8.13 Toluenediisocianate-Dupont. The Companhia Isocianatos do Brasil, Ltd. will produce this intermediate product using ammonia, sulfuric acid and natural gas produced in Bahia. Annual production is estimated at 22,700 tons in volume and US$17 million in value. The project will be a joint venture involving Petroquisa, Banco da Bahia and Dupont de iNemours, the latter supplying the technical process. The economic feasibility studies have been completed and engineering studies are under way. Application has been made with BNDE for domestic credit guarantees. Total project cost: US$43 million. Foreign exchange component: US$11.3 million. External financing: US$12.9 million. Probable commitment date: 1973. Estimated disbursement period: 1973-75. 8.:14 Defluorinated Phosphate - INDI. The State of Minas Gerais Industrial Development Agency (INDI) is sponsoring a series of projects of which one would produce 10,000 tons/year of defluorinated phosphate. Total cost: US$1.8 million. External financin-: US$0.5 million. Estimated foreign ex- change component: US$0.5 million. Probable commitment date: 1973. Estimated disbursement period: 1976. 8.15 Sodium Tripoly-Phosphate - INDI. A plant with production capacity of' 30,000 TPY of sodium tripoly-phosphate (to be used in detergent formula- tions) is contemplated. The location of the plant will be close to jraxa, - 47 - in Minas Gerais. Total cost: US$6.8 million. Foreign exchan-e component and ext--na TTncr Q U(2. milin Pro4-l comtr,n dat;173 ~~ ~~ ~ ~ -~~ ~Ab* UJy . . J U LLAJ. I .L.1 U.IJLS k.A.LIJAIILL LdIIIJ.i U U'~ Ut: . -L,7 I Estimated disbursement period: 1976. 8.16 Citric Acid - INDI. A plant would be installed to produce cryst-a -l i ne citrUcLL aJUiIIy-UatUe, ultUblJ ' IoUr fUod and pharimaceu -icL± applications. A plant having a capacity of 3,000 TPY is proposed and would employ the subm,Uerged ferLm,entationl process. The preferred location for this project is Bocaiuva, Minas Gerais, which would provide a depend- able so-arce of raw materiais (molasses, sulfuric acid and iime) and have the advantage of the fiscal incentives granted by SUDENE. Total cost: US$6.1 million. Probable commitment date: 1973. Estimated disbursement period: 1973-74. 8.17 Phosphoric and Sulfuric Acid - Santa Catarina. Industria Carboquimica Catarinense, b.A. (IuC) plans to produce 300,00 tons/year of sulfuric acid and 110,000 tons/year of dikephosphoric acid (P20o). This plant located in Imbituba will use wastes resulting from the transTormation of local soft coal into metallurgical and steam coals. This project will have the advantages of using a local by-product instead of imported sulphur and of reducing pollution. Total cost: US$34 million. Foreign exchange component: unidentified. External financinr: US$9 million. Probable cornmiit- ment date: 1973. Disbursement period: 1973-75. Executing agency: ICC. 8.18 Soda Ash. The state-owned Companhia Nacional de Alcalis is con- siderin- a project in Sergipe for the production of soda ash (barila) usinz lime and rock salt available nearby. The plant's production capacity of 400,000 TPY will permit it both to satisfy domestic demand and to export. Total project cost: US$80 million. Foreign exchange component: undetermined. External financing: US$32 million. Possible lenders: Japan or Japanese participation. Probable commitment date: 1973. Disbursement period: 1973- 77. 8.19 CCC Coloidal Carbon Company. The Companhia de Carbonos Coloidais (CCC) would expand its carbon black plant located in Candeias-Bahia from a present capacity of 23,000 TPY to 43,000 TPY in the first phase and 76,000 TPY in the second. Production will be entirely absorbed by the domestic tire industry. Applications for domestic credit have been filed with BNTDE. Phase I project cost: US$4.5 million. Foreign exchanze comDonent: US$0.9 million. External financing: US$1.8 million. Probable commitment date: 1974. Estimated disbursement period: 1974-75. 8.20 Petrocoque, Ltd. The project will produce coke by calcinating petroleum refinery residuals. The plant will be installed in Cubatao (state of Sao Paulo) close to the "Presidente Bernardes" refinerv. Exnected qnni i; production is about 120,000 tons. Main application will be for the aluminium industry, iron alloys and batteries. The project should be complet,ed hv the end of 1974. Economic feasibility and engineering studies were completed by BNDE in 1972. Total project cost: US$5.3 million. Foreign exchange component: US$0.5 million. Externlal financing: US$2.1 million. Probable commitmerit date: 1973. Estimated disbursement period! 1973-7i,. - 48 - 8.21 SALGEMIk - Caustic Soda and Chlorine. SALGEM., Industrias Quimicas will install a plant at Maceio (Alagoas State in Northeast Brazil) to produce 250,000 and 220, 000 TPY, respectively, of caustic soda and chlorine from locally extracted rock salt. Produc-tion, valued at almost US$30 million, will cont;ribute to import substitution. Economic feasibility and enrineer- in~ studies were completed in 1972. Applications for domestic credit have been submitted to BNDE. SUDENE is sponsoring the project. Total project cost: US$83 million. Foreigrn exchangre component: US$14 million. Possible lender: Eximbank. External financing: US$14 million. Probable commitment date: 1973. Estimated disbursement period: 1973-75. 8.22 NOVA DU FIL Film Com-panv. "NOVA DU FIL - Comoanhia Brasileira de Filmes" will install in Resende (state of Ajio de Janeiro) a factory producing, 3,200,000 m2 of x-ray film Der year. Production is planned to start by 1915. Economic feasibility and engineering studies were completed in 1972. Applica- tion for domestic credit has been submitted to BNDR. Total nro1ir-t cost: US$17.3 million. Foreign exchange component: US$7.2 million. External financ- ing-: Mtq.n million. Possible lender! .TannP-se suppliers' credit agency. Probable commitment date: 1973. Estimated disbursement period: 1973-74. 8.23 Tires - Companhia Pneus Tropical. The Companhia Pneus Tropical is Dlanninr to irnstall nf. Feir2 rip qnhann- in the Plhiq ?rePa a facttory to produce tires, tubes and "camel back". The factory will satisfy part of t.h, =xnanii nr cinmpetir demand. V.Ponomin fnsih-il i rT. ani eineerinr studies are completed and applications for domestic credit have bcen rnade t-uilh BNTEV SUlMPIP is sp-onsoring the project. Totl roject cost: uS$25 million. Foreign exchange component: US$8 million. External assistance: Uc.S8 millioin. Fnoreign finann; n er rcn+l -r A C - . +h TT Q I -L ~ -- ,- r wJ _ w t U.S. Ba k . Cs[ Probable commitment date: 1972 or early 1973. Estimated disbursement Period: Q973-75. R 9 .T TQT-AA_; Q IZTPAA 04- A n- A 4--4A-__ __{ 1_ V.J*..JLn - ±IcU J * LLE . *I JJU%, VJ c 6 U C1LiV . 1IllI a A t, plant and addin- to it a continuous rolling mill to produce-300,000 TPY of lamin-.ated product, rods, wire rods and light shapes. The project is s-ubject to CONSIDER's approval. Total project cost: US$42.1 million. Foreign exchange component and xbternal -L Uiirla7irVL: IruS±-L±ulio. rrobabie commitmenL da ae: 1973. Estimated disbursement period: 1973-75. 8.25 Mlendes Junior Steel Plant. A new integrated steel work with a productiun ucp)city of 300,000 w ri of liquid steel wili be instailed. Produc- tion is supposed to start by 1974 with 150,000 tons of finished product. Tot al production targets are 100,000 tons oI iron bars, 50,000 tons of in-ots and light shapes, 100,000 tons of wire rod, and 50,000 tons of laminated product to De exported. The company intends to install a SL/i.N direct reduction unit. Sponsor: The project is subject to CONSIDER's approval. Economic feasibility study has been completed by Technometal. The engineer- ing studies are underway. Total project cost: US$40.0 million. Foreign exchan-e component: US$12 million. External financinr: US$3.0 million. - 49 - I'robLabit commitment date: 1973. Estimated disbuirsement pe riod: 1973-74. u.'o COSLI4 Mogi das Cruzes Steel Plant. The project will eLandL t( Moci d&s Cruzes Steel company which produces light and medium larmina;vs and seamless pipe. A continuous castin- unit with a Capaci of 49'(0' A) TEY, ' a :interin- unit, and a new 300,000 ton rDllin mil'l ill be inst llfd. The project is subject to CONSIDER's approval. Economic "casibility studies andC en ineerin, studfies are underway by COBHhPI. Total prcject cost: U'4$h45. million. Forei,ln exchan-e: US$10.9 million. External fin-alc_n:: US$9.2^ -illion. Probanle commitment date: 1973. EsLimated disbursement p,eriod: 1974-75. 8. ~'1, AGuaira; Ltd. 8'tE!el Plant. Guaira, Ltd. will install in iatCxuiflO (state oi Parana) a ne,.; inter,,rafted steel planl u-ith a ye-arly product;,ion ca-,zzi of 130,000 tons of crude steel. A blast furnacc and Steel worlk- I be ins'alled for continuous castin&. as will a continuous rolLir: -1 i t ioduce steel bar antId iwire rod. Storage and hand-lin- equipmen t gill - hi. ato be installed. The project is subject to CONSIDEE's '.f.'l'-f)V;- T I:'125:^ITI h. m C amleted a pre-fi, ,isity study; economic seasbili 'L en. eelin sf-udies are underwa.y. Total roject cost: US$31.6 million. Fo_'oei, exihchan -e c21i1-oroent: un-de-ine,d. Lxter'mal finaricin,: US$15 million-. wroibablo coulfftmifen dLte: 197L1. iEstimated di,bursement Deriod: 197' -77. p53.2589 COFb'Vf'T noV-Flat Fi4nished 1'roducts. The omnail-ie- lero 2ICO do_ Vi t )'.ic; pl -ns to increase its production or nlo i hushed :aroducli to 300,200 TPY. The nrolect will involve ex;aiision o4 the ro]lnr imill instal `laion of a direct reduction unit,. The project is subject to CON.0LT) I.1s apnrovol. ,o0th eeonomicr -easisil ity nd enhinee-in-- situdie.3 hrave .ee completed ;-) Techno-metal. Total projec`t3 cost: U,$54.4 mi l a. I .ei; xcIhane aoom,oir-n nt 1T!;1 6. 3 miLlin,- F>dn_on l. nanci TtLi , million. Probable o liiou Ument date: 1973. astima`-ted disbu-sement pen ccI: _-. -t ¸.!h lTl,-la.? "' ~ -Sen, td The ;r, ic 11 .nrl _'DI :. anTt-GT1')() l TPY spnccac ateel in0ot.s. SKE, the Inxdustrial Trading and Development Cor;ipany, a.nrl Y,iteMiff ?J nyTshn- Sterkrade' .AG-Hn are -'eso nsible for the econnom.ip feasibili.ty and engineering, stUdies. The project is subject to CON?IDll'a ' vr'''" '- _= Total p!~ oec ; cost- Us$30 1 millionn Forein exchang e componen': US$9.7 million. .,xteen8l financing: US&7.)4 million. ProbabDle commitmen-t ,3.-te: 197'. .sttm.a ted disbulrsement period: 197 3-75. 8. 3 PBTTvT - qSenri -Fi ni h;ed and NoTcn-F l+. S Frouc,.. The Cr.r 9irasile-iaa de Usinas Metalu.rgicas will expand itS present plant to 250,000 TF-i capazity. This will involve building a new sinter-n- plant, and installin- a ne-w chaccoal blast furnace and all necessarrr see,vices. Pre- 1limin.. J economic feasibility studies have been complete.l by C-IT ard have bee.a oevised by Otto Wollf/Neun1lcrcher. The project is subject to CONlIdlT ' I Total project US-3 * - 7-1 -1 *; - - - - 1i,,,~~~~~~~~~~~~~~~~~~~~~ .@OW.. %t _,'-oJc. cs. o. .,) illo - L Al I. ,uoel, exc.L U L;1 componnrit: US$13.1. million. External financinc',: US$11.2 million. Probable connm; tmi.n+ dl ;e 1973 - -'sti;,-4-4A 4isbursem.1- t -Ap . 1 r7371. 1.11- - -1 ~1-1 ../ I JC 4.L U U~ .4.. LA I Ut. Ct7 JO U Fu,l .L'uuo -L-; I -) 1 '4 - 50 - 8.31 ACESITA, Ltd. Special Steel. The expansion program of Acos Especiais Itabira S.A. envisages output of steels not presently produced in Brazil such as stainless steel sheets and silicone steel sheets of oriented drains. The feasibilitv studies have been completed by Davy Construction Company, Ltd. The project is subject to CONSIDER's approval. Total nroiect cost: US$156.1 million. Foreign exchanze component: US$62.2 million. External financing: US$62.2 million. Probable commitment date: 1973. Estimated disbursement neriod: 1973-77. 8.32 COSGTTTA Non-Flat Products Phase TT= Phase TT exnqnqion of the Companhia Siderurgica da Guanabara will increase its steel production to 750,n0n TPT of non-flat. nrodnuct..s using sctran iron anri iron _nna _ ns rnw materials. The project is subject to CONSIDER's approval. Total project cost:f. UTsTq77. 9Tmillion. Foreian excynhqap rcomy.p;rrent: TJS$15.7 .^illionn External financing: US$13.3 million. Probable commitment date: 1973. Estimated disbusement perilod: 1973-76. 8.33 IroTn-- Or PQ11e+eting Pl1n+ * h- T-AiioQ+;nl TnQ ,rQr1ni n+ Tna+41ii*r of Minas Gerais (INDI) is recommending a pelletizing plant using both iron ore fin.es nd limie available in Mia G-era The pro,,ect --uld be located either in Joaquim Murtinho or in Igarape. The plant, using the DRAVOLURGI pr'oess, f~i wnuld havTe a productii-z on nor, +ir of 3 mn-illi on P'PV Fasinbil i+yr studies were completed by INDI in March 1972 with the assistance of Arthr D. Little, Inc. as consutants. * Tot -+' . i-llion Foreign exchange component: US$12.0 million. External assistance: US$12 1; llo n . Probabl-1e cor.iten dae 1973 Vs+->;-,ted dib- n perod *L~JJ~L* .L L X 'J A.L ~ vJLMJJ. VLI~ %A) V U - L7 . £ JU.U/. J. 1974-77. 8.34 Iron Ore Pellet Plant (PELFA). The project envisages installation of a 2. m; '"ion t on p el1et plant. To4ta' C03: 1 T6.0 m41Jon. F ore -n exchange component: undefined. External financing: US$68.2 million (probablv 1from, equat.4--prt-ic-1pat-ion and Tf-eA-i ^nstalt) VW. Prbbe co,.,,J4-Mer4 date: J-1973. .L~~~~~~~~ '.'LU ~~~~~~~~~~~~~~~~~~. UJ-Ja , U~ ..Lj U..L~1 %JA& I"J VLL L,ci UCI.L U/ * k± JZV 1A1hJ4bIII 1L UQU; * .L7 Estimated disbursement period: 1973-76. 8.35 Sponge Iron - INDI. INDI supports a project to install in Minas uerai4s a direct reduction0u pluUnlt 4wi uu prEu Ual ofUsponge ir-oln fUIr the National Steel Industry. The Itabira-Ipatinga location will be excellernt witih nearby- aval lability of Liron ore and low Cost electric power. The project will contribute to filling Brazil scrap steel gap, estimated at 7,iu00 tons Dy 197. Total project cost: US$23 million. Probable commitment date: 1973. Disbursement period: 1973-76. 8.36 A Ferro-Manganese and Silicomanganese Plant. The plant would have an annual processing capacity oI 1 ()oO tons of ferro-manganese and 4,170 tons of ferro-manganese silicate. Total cost: US$3.5 million. Foreign exchange component and external financing: US$1.2 million. Location: Minas Gerais. Probable commitment date: 1973. Estimated disbursement period: 1973-76. - 51 - 8.37 A Ferro-Silicon and Elemental Silicon Plant. The plant would have a production capacity of 12.730 TPY of ferro-silicon and 3.000 TPY of elemental silicon. Sponsor: INDI. Total cost: US$4.9 million. External financing: US$2.1 million. Foreign exchange component: US$2.1 million. Location: Minas Gerais. Probable commitment date: 1973. Estimated disbursement period: 1973-76. 8.38 Foundrv Tunv. Ltd. Tunv. Ltd. is exnandinp the canacity of its foundry located in Joinville (Santa Catarina). Production also will be diversified to include cast iron. connection boxes and narts for the automobile industry. Technometal is responsible for the completion of economic feasibilitv and engineering studies- Total nroneit cost: US$27_5 million. Foreign exchange component: undefined. The National Bank for Economic1 Development (rNnDE) is con.Qidierina' financing. External firi_ci'. US$ll million. Probable commitment date: 1972 or early 1973. Estimated dishursement neriond 1973-76= 8.39 Minrac r.ylaiq Founirr _tn. A new fndrf?-ty woii1d be inst1c._Ae in Minas Gerais using the billet output of Mannesman steel. The plant shoiul proidu,c 925onM qPip nf greny cast iron, 1 tons on.f vnerlAvla -irn and 5,000 tons of cast steel. Economic feasibility studies were completed in 1972 with +he naiac z 'of PA+h1mv- DT. Ti++'e, TInc. Total proc4 cost: US$9 million. Foreign exchange component: undefined. External financing: s ~~~I4W W~ V %U~AU VU~. .L I* U.LUh U U%.L ULL.-rserL1I U $ 3.6 mi o.Poal oimn t;17.EQmate' dis' rsent period: 1973-76. 8.40 Forge Shop in Minas Gerais. The project would install in the v--+, cir4t v. U_ 4.,^ w 4;. ~,v 4.u.ufc4..g, by.. 19'75, 10,000 mTPw of W J . JJV-,L'J L zonL ve'*~ ~~ 1 a JJ forge.Uanu f j. C - u- U "L .L1- L JJi _ n±7 e 'J.A .LEJ.% m 2 finished products valued at US$11 mfllion. The plant would employ about 14--nn workVWs a..dA wou'1d3 -uAse as --..4- b.4'1ets pLouu d by rih_ ni m -- -teei. Economic feasibility studies were completed by Arthur D. Little, Inc. in TurL 1 03. - On 'r%T%r.Mo~ 1 pr0.!ee~ OS- ?Tld - '.% million. - - U 1972 I SpLoFr.sor;IA ..LUI.. Tot,al4 rj tco Uos. uS$p1.7 miiiion. Foreign exchange component: US$2 million. External financing: US$2 million. florol~ai e .J L- n4.2. - 1f" - I f~ -- -- .I1 I--- Probable.L 1-UU L c±LUe date 1973 Esbim aveu disbursement period: 197j-77. .-w4ng and Ore Processir.g 8. 44-L VIUAI -u k.u_A0 O..UU. %oSUuz deL. U rPequLisas de Recursos Minerais (CPRM), the Government prospecting agency, has located extensive deposits of potuassium and magnsesiun salts ir uarmopolis (state of Sergipe) and at the end of 1972 expects to accept bids for their exploitation. Th.e successfu. bidder-will be guaranteed a privileged position on the Brazilian market; about US$15 million in potassium and manganese salts now are impo4rted annua-ily by the fertilizer and automobile industries. Petroquisa probably will participate in the new company. Total project cost: US$80 MIIllion. Foreign exchange component: undefined. External financing: US$32 million. Probable commitment date: 1973-74. Estimated *__sbursement priodUw 197 i4 - {I °8- - 52 - 8.42 Caraiba Copper Mining. Brazil's Pignatari Group owns large copper deposits located in the state of Bahia. This project envisages the installation of mining and processing facilities for exploiting them. Production of electrolytic copper will be around 70,000 TPY (US$60 million). Feasibility studies are being completed and engineer- ing studies are gettinz under wav. Delays have been caused by difficulties in arriving at agreement with the Pignatari Group as to the nature of the enternrise which will operate these facilities. Total project cost: US$125 million. Foreign exchange component and external financing: US$35 million. Probable commitment date: 1973-74. Estimated disbursement period: 1974L- 73. 8.43 Iron Ore - Carajas. The project to exploit these deposits will 'h i_ nmpn+.Ad hv nVRT- the Comnanhia VaIle do Rio Doce. in a joint venture with the Companhia Meridional de Mineracao, a subsidiary of U.S. Steel. The Serra dosr aranas deposits are located in the state of Para. 560 km southwest of Belem. The mining site has been selected. Studies are underwayr as to the transport rouite for exnorts. Two main alternatives are under consideration: one is to build a railway from Carajas to -n Luiz (state of Mnarnhao) or to a noint near Belem. the other is to use river transport along the Tocantins up to a deep sea port (Espadarte) located near Belem (Para), Minernl prospection through December 1971 already had proved more than 10 million tons of reserve. Detailed economic feasi;i+vty st+udies have been undert.aken by VATJIJEC and shouldi he completed early in 1974. Total project cost: US$700 million. Foreign exChan-n c^poMn n.A TT-rSA9Sn vnillirm- f * nqn *- na! I.T5---- millionn Probable commitment date: 1974. Estimated disbursement period: 1974-78. 8.44 Nickel Extraction Project. BAMINCO contemplates the installation o -~ -1--.4- 4-~- -- rO nAOA '1'Dv _,-P - '-.m,rc..%^0r~.+MA inr p of a paLCtU U uw )v ---S &.. - - -i. flu d loae i Alto (Goias). Proven reserves are large enough to support a plan of economic scale. Studies- for- - pilot-4 plnt+ to be- srted-, by- -1072. -r o,ee ~~ JIitUU.±=0 L.L'J a. j.~L.LWIJ kJLCL&U LAJ UV~ QV U~,%A VJV L ' & ~."l -.- ~ 5 'easibility studies are underway. This project will probably be a Joint 1: _: _ _ _ _I _.._ .._J 4 A_ _ - {4__7&@ ;T q_ + -I_q.'f project cost: US$250 million. Foreign exchange component: undefined. External financi,g: US100 million. Pr-obable commi ment date: 1974-75. Estimated disbursement period: 1975-79. 8.45 Iron Ore - FABER. FERTECO plans to increase its iron production from 1.5 million bons to 4 million tons fl '7194 Li its UF^BlOfA -=irn site (Minas Gerais). This will allow FERTECO, a private mining company, to meet its ex-port contlract with foreign sh"ar-eholders. Total project cost: US$17 million to be financed mostly by the shareholders. Probable commitment date: 1973. Estimated disbursement period: 1973-74. Non-Ferrous Metal and Metailurgy 8.46 Aluminum Extruder - Minas Gerais. ALCu?MiAS will develop with INDI sponsorship an aluminum extrusion plant in the Pocos de Caldas area of Minas Gerais. The plant will produce 4,000 fl'r of extruded aluminum using cerro bauxite and Cu&IG electricity. Feasibility studies were completed by INDI in June 1972. Total project cost: US$2.8 million. Foreign exchange component and external financing: uUS$0.5 million. Probable commitment date: 1973. Estimated disbursement period: 1973-76. 8.47 Companhia Brazileira de Alumino. The purpose of the project is to expand the production capacity of a plant located in Sao Paulo. Output for domestic consumption will include aluminum ingots, flat and non-flat aluminum products. Technometal is completing the economic feasibility and engineering studies. Total project cost: US$25 million. Foreign exchange component: undefined. External financing US$10 million. Probable commitment date: 1973. Estimated disbursement period: 1973-75. 8.48 Zinc - Companhia Mineira de Metais. The Companhia Mineira de Metais located in Sao Paulo intends to diversify into zinc metallurgy and refinery. Ingots and zinc plates will be produced for domestic consumption. Technometal is completing the economic feasibility and engineering studies. Application has been made for financing by the National Bank for Economic Development (BNDE). Total project cost: US$21.7 million. Foreign exchange component: undefined. External financing: US$9 million. Probable commitment date: 1973. Estimated disbursement period: 1973-75. 8.49 Precision Screws - INDI. Contemplated is manufacture of precision screws and bolts by conventional automatic thread rolling and cutting operations, complemented by a series of heat treatments. Production will total 3,000 TPY. A central location in Belo Horizonte is recommended. Creation of 515 jobs. Sponsor: INDI. Total proiect cost: UJ$7.3 million. Foreign exchange component: US$1 million. External financing: US$1 million. Probable commitment date: 1973. Estimated disbursement period: 1973-75. 8.50 Aluminum and Coier Conductors - DIT Envsalge s production of 6,ooo TPY of copper conductors and 5,000 TPY of aluminum cable. Genera- tion of 507 Jobs. This nroiect will be implemented hy Ternocoanda. *3ornsor INDI. Economic feasibility studies were completed in 1970 with the assistance of Arthur D. Little. Inc. Total prolect cost: U S$9.1 million. y-xternnl financing: US$1.4 million. Foreign exchange component: US$2.9 million. Probable commitment date: 1973. Estimated disbursement period: 1973-76 8.51 Electrolvtic Zinc - !DNT The nroniect will produce electrolytic zinc slabs. A 20,000 TPY plant is contemplated. The proposed location is Pirapora, Minas Gerais. Sponsor: TNDT. Total pro4ect o t:U$l3.9 million. Foreign exchange component: US$1 mi1lion. External financing: US$1.0 million. Probable commitment date: 197?3. Estimated disbursement period: 1973-76. 8.52 Transistor Plant - INDI. This plant would manufacture encapsulated metal silicon transistors of various tynes. Production of 3 mion transis- tors/year is envisaged. Sponsor: INDI and SUDENE. Total project cost: US$2.3 million. Foreian exchnnae pcomnonrent: Uct.6 6 Million. Exernal financi US$0.6 million. Probable commitment date: 1973. Estimated disbursement period. 197?3-75 - 54 - Building Materials 8.53 Portland Cement. The project would install in Cantagalo (state of Rio de Janeiro) a cement plant with a production capacity of 800,000 TPY. Economic feasibility studies were completed by BNDE in 1971. Engineer- ing studies are under completion. Applications for domestic credit have been submitted to BNDE. Total proJect cost: US$51.8 million. Foreign exchange component: US$14 million. External financing: Us$18.7 million. Possible lender: Worms Bank. Eximbank and Deutsche Bank. Probable commit- ment date: 1973. Estimated disbursement period: 1974-75. 8.54 Cement SOIECOM. The Sociedade de Empredimentos Industrias Comerciais e Mineracao. Ltd. considers locating in Minas Glerais a cement plant with a production capacity of one million TPY. Economic feasibility studies were completed in 1971 and anplioations for domestic financing have been filed with BNDE. Total project cost: US$60.6 million. Foreign aRxhan A nomnonent! ITiAlb.1 million. lFxtarnal finanning! USih.h million. Possible lender: suppliers' credits (Germany, Switzerland). Probable nommitment data: 1Q73. Rtnimq+.ad HAihurqPTmAnt nprieods 1973-7)j- 8.55 erarnri Pinr > Plnt; TTINT is qn scn-r'in a plant to pronfiu ceramic pipe with an annual capacity of 30,000 tons. The plant will satisfv onlv npart.lv TT.A1NA5SA rAoimrnmAnts of 6C0000 ton.q/v.or to nrovidR ____ - - __ --t. --i--.t- - -… _ -- - -, - - --Z--- _ ,_ _ ____ water to 65 million people and sewage to 40 million people in the next ten rears. Economic fega sibilit-T Bt+uirles were c-m.1eterd in Mm-&r-h 1?72 with Arthur D. Little, Inc. assistance. Total project cost: US$2.4 million. Fo-rignexcnng cornonentnnd. exterr.a"l finnanci-ng: TJxTq0.6 millionn Probable commitment date: 1973. Estimated disbursement period: 1973-76. 8 56 Floor Tiles - INDI. The project envisages production of 800,000 m of ceram.ic floor tiles for t1he buildingc ,eiin+wustr. Trontal cnQ+ot TT'-.1 o million. Foreign exchange component: undefined. External financing: TTQ-(kO A mi.Jior.. Probable^ . ...*If,L Ante: 1073-. V.+ti-uL40 qs -S---.--.er period: 1973-75. 8.57 Sheet Glass - INDI. Planned is production of sheet glass at the rate of 705 (_ - , LJ .JonS 4-_/__N j 4-. jL '.. p Ue cost:4 US$. UTI7 . million. Foreign exchange component: US$1.0 million. External financing: period:million. pr-obable comment raok"JUsiaed 19s73-7se.ue period: 1973-76. - 55 - 9. MISCELLANEOUS AU a ,1 t44h 9-1 'I Ex an io oP Qa 'l,, o,11- T;'l e 5 UAO1 +1 P,- C!Q----his---,ec 4 . .LJL.~..L J. AU' LLA A ~ W 6 'L~_ V. J1 . A "- k" 4'J~ involves the construction of 61 healtEh centers (3,700 beds) in the state of Sao Paulo. Total project Co9t5 :_4.. UT4$i50 A V component: US$7 million. External financing: US$10 million. Probable agency: Sao Paulo State Government. 9.2 Santa Catarina Health Program. The project calls for construc- tion of new hospital facilities and expansion of existing ones. Total project cost: US$11.6 million. Foreign exchange component: US$4.5 million. External assistance: ULS4.4 million. Possibie lender: KFW. Probable commitment date: 1973. Estimated disbursement period: 1973-75. Executing agency: Santa Catarina State Government. Regional and Urban Development 9.3 Vale do Ribeira Integrated Development Plan. This is an infra- structural project associated with the installation of two cement factories in this sector of the greater Sao Paulo metropolitan area. It would include constructing a 72 km railway spur, 200 m berthing facilities at Cananeia, 850 km of feeder and main roads and the installation of water supply and sewage facilities in twenty localities. Also included is the design of a tourism master plan for Cananeia. Total cost: US$34 million. Foreign exchange component and external financing: US$7.5 million. Possible lender: KFW. Commitment date: 1973. Estimated disbursement period: 1973-75. Executing agency: SUDELPA (Superintendencia do Desenvolvimento do Litoral Paulista). 9.4 Industrial District of Curitiba: This project would enhance the industrial activity of Curitiba, a city where the tertiary sector presently predominates. It would install basic infrastructure (road, telecommunications, power, water and sewage) so as to accommodate medium- and small-size industries processing local raw materials. Studies undertaken by the Research and Urban Planning Institute of Curitiba (IPPUJC) are to be completed in 1973. Total cost: US$41 million. Foreign exchange component and external assistance needed: US$12 million. Probable commitment date: 1973. Estimated disbursement periods 1973-75. Executing agency: Prefeitura Municipal de Curitiba. 9.5 Regional Park: Iguacu. This is a multi-purpose conservation project for a 24-km4 area extending from Curitiba southward to Sao Jose doe Pinhais. It would provide for treatment and pollution control of surface waters within an overall regional sewage disposal program, as well as for the infrastructure and forestation works required to develop a future recrea- tional and tourist area. Studies are underway by IPPUC (see above project) - 56 - witn tne assistance of SknSL! S.A. Engenharia. Total cost: US$6 million. External financing: US$3 million. Probable commitment date: 1973. Esti- mated disbursement period: 1973-75. Executing agency: Prefeitura Municipal de Curitiba. Mapping 9.6 Cartographical Equipment. This projRct would provide for the equipment needed to map an area of 750, WXO kin in the SUDENE and SUDAM regions. Total project cost: US$9 million. Foreign exchange component: US$4.5 million. External financing: US$3 million. Probable commitment date: 1973. Estimated disbursement period; 1973-75. Executing agency: Instituto Brasileiro de Geographia e Economica (IBGE). Teable 1:. LIST OF PROJECTS SUITABLE FOR EXTERNAL FINAN'CIr - EDUCATION SECTOR (In million of US$) Executing Estimated Foreign Exchange External Probable Disbursement Status Agency Total Cost Component: Finanicing Sought Commitment Date! I'eriod of Pro)ecr First Level Education 1.1 First Level Education in Jequitinhonha Valley MG/CODEVALE 23.0 - 11.0 1973 1973-77 b 1.2 National Program of Vocational Schools MEC 46.7 2.3 18.7 1973 11973-75 a 1.3 Klnas Gerais TV Educatiork Program 14M 4. 9 4.0 4.0 1973 1973-74 b 1.4 Sao Paulo Teachers Training Program SP 15.0C 0.5 10.0 1973 1973-7- b Second Level Education 1.5 Technical Education Facilities MEC 63.8 8.7 18.1 1973 [974-76 Higher Education 1.6 University Campuses I MEC 67.5 8.5 35.0 1973 1974-76 ak 1.7 University Campuses II MEC 60.0C 15.0 30.0 1974 1975-77 b 1.8 Guanabara State University GUANABARA 40.0 - 20.0 1973 1973-76 El 1.9 Post Graduation Cen1ter MEC 64.'1 7.0 30.0 1973 1973-76 a Science and Technolog 1.10 Science and Technology I FINEPE/MINIPLAN 60.0C 9.0 30.0 1973 1973-75 1.11 Science and lechnology Il FINEPE/MINIPLAN 30.0 5.0 15.0 1974 1974.76 a 1.12 Minas Gerais Technological Center CETEC/MG 14.0 - 5.9 1973 1973-76 b 1.13 Sao Paulo Technological Program SP 50.0 10.0 25.0 1973 1973-75 21 TOTAL 539.2 70.0 252.7 Table2 : LIST OF PROJlECTS FOR EXTERNAL FI[NANCING - ENERGY SECTOR (In millions of US$) Executing Estimnated Foreign External Probable Disburse- Status Agency/ Total Exchange Financing Commitment rnent of Sponsor Cost CoTsonent Sought Date Period Project 2.1 Itauba Hydro Plant CE'EE 130 20 50 1973 1974-78 tb) 2.2 itumbiara Hydroelectric Project FURNAS 550 235 224 1973 1973-81 (b) 2.3 Aqua Vermelha Hydroelectric Project CESP 400 165 165 1973 1974-81 (b) 2.4 Santiago Hydroelectric Project ELETROSUL 190 23 70 1974 1974-79 (c) 2.5 Moxoto Hydroelectric Plant CHESF 202 72 60 1972 1973-76 (a) 2.6 Paulo Afonso Hydroelectric Pro'ject CHESF 274 80 70 1973 1974-80 (b) 2.7 Sobradinho I)am CHESF 215 71 70 1973 1973-78 (b) 2.8 Sete Quedas Hydroelectric Project ELETROBRAS/ANDE 2000 n.a. 800 1974 1975-82 c) 2.9 Couro de Magalhaes Hydro Plant n.a. 55 14 14 1973/74 1973/4-79 (c) 2.10 llha Solteira Transmission Lines CESP 160 n a. 70 1973 1974-76 (b) 2.11 Sao Paulo Steam Plant CESP 110 62 62 1973 1973-78 (c) 2.12 Belo Horizonte Thermal Plant CEMIC 65 45 45 1973 1973-76 (Ic) 2.13 Floating Gas Turbine Units ELETROBRAS 38 :30 30 1973 1973-74 (b) 2.14 Tapana-Belem Thermal Plant CELPA/ELETROBRAS 51 1L5 25 1972 1973-77 (a) 2.15 Manaus Thernal Project CEM/ELETROBRAS 20 15 15 1973 1973-75 4b) 2.16 Distribution of Light, S.A. Light, S.A. 654 47 152 1972 1972-76 I(a) 2.17 City Gas undefined _41 n.a. 9 1975 1975-79 (c) TOTAkL 5155 894 1931 Tabl 3 LIST OF PIDJECTS FOR EXTISS1A I.fNAiCING - TRANSPORT SECTOR (tn li1tnne of US9) laa-tina mn~t-std F-riga inobang En--cl Probabia Diaburasat . tnc AS-r Total Coat Cnfonant Finaning Snhteb Cntr...nt Darn Parted ofProject tI1 Fender load ProgranElO 83 a 25 1972 1972-74a Pb--uba-CLb9--- E=~~~~twa tt s54 1973 1973-75 b 7.3 Third and On.r.. hNigbnnya fraer DUE 350 41 140 1972 1972-75a 3 4 ft th High,oaye ProgrI 004 26 35 104 1973 1973-77 3.' ioh HNIshayn Fr-gra 5041U 280' 38 112 1974 1975-78 3 6 triarlo lolaoda Diract Hib-y Lick 591D-P.tn 10 na 1931934 3.7 Sn Pann - C itainDC-tao Fae 25 1973 1973-74 3 Sao Fact - ?gi do. Crone. DC-Sac Panic 45 a.25 1973 1973-776 31 C og do . Cra-Salc..opolin DC-Sac Pacln 14 a.5 1974 194-7 31. trtrHighoaye DUE,S-.. Fato 42 13 M97 19.767 Sob-Total ~~~~~~ ~~~~~~~~~~~~~~~~~~~~~1,635 I44 622 R7 IPSA Ino-eltant.Fgr RFPSA 1.000 250 340 1973 1973-76 3.13 FEPASA I ncr-nat ftProga rPAS08 160 34 34 19 73 1973-7¸ 5,6-Totl 1,160 204 394 7.14 Purohoen ni Crania i?t'~~~~~~~~~~~~~~DN 12 12 12 1973 197-7 7 5 Otenc SIlo tor the rnrr oE SBnumW 14 10 1973 93-74 3 26 Port of Sanifa 081006~~~~~~~~~~~~~~NM 246-a 10 1973 1973-76 317 P-rt of Macno DdPYtN/SU79.ANA69 a 4 1974 197-7 3.19 Por o .f Sant C-o cbt tt 30 0-. 2 1973 1973-75b 7.19 Porte fi Din Gr-d., Paraac.. Santa. and Vinnoin D110-N (Soe KEPart Corridor Pngree) Sob-Total 90 13 48 Shipptna 3.20 Nava Rannin. 19A5A C-steir. 54 39 1 15 1I 973 1973-74 2t Divo Troepr -Sanron inc Rive CUSP a a 4 19773 1973-74 322 Ier Tranaprt -" Dri Io'Plat SNB 6 n. a. 3 1973 1973-75 4 3273 Otter Tr_narrt in the dAa-. Emma. MOtAHAN I. na. 2 1974 1 97 5-76 S.b-Tot.t 57 IS 24 Airport, 9 ?4 C.elno.. Airpar E.t.. cato Mi,1:tietro If Attanien. L771 259 1972 2/ 19722-74 20 AoCA Treftti Contro Sot taar Af Atno7255 72 1972 193-76 326 Conhtco Atrport - Sa-Ftl linntt fA Anei0 6 30 974 t974-76 Air-- --on 2a. a,t 0 o 5 tao 4oc lob-Total 363 103 222 Ortet Trta.. rt S1 F5ro JPo-rr StA' tecb.r. Stat 30 0.0s1 1973 193-74 6 3.10Nortern ora no SI do Ja-tro-tl4 7 18 1973 19744 3.3( (d_ Cia.:terplnn tic de Jnir 160 25 65437 1972 tt-75 3.31 etool, DES - Sac Pac1c 180 i 60, 1973 1973-76 6 737- ---n--tt of Sop Pact, -t0 6 16 973973-7 3 33 loreprat-d Toonaport Spats P-ftni-ra MIbticpa1 01 n.a13 1973 1973-76 dot - !o,tolop T(T,,t. 79¸i If 005$65 aIlt-n h-o ctradp been ocaitted. 01159 alittn. rn-in to be mood. 2/ S4 1 95 .11c 30 otre ai1rdy -itted befor 1972. 3/ ot US$0160lb aillion 110 bee ,alredy bane ecaited :rable 4L LIST OF PROJECTS SUITABLE FOR EXTERNAL FINANCING - TELEOMMNICATION SECTrOR (In million of US$) Executing Estimated Foreign Exchange External Probable Disburseament Status Agency Total Cost Component: Finanicing Sought Commitment Date Periocl of Project 4,1 Embratol Teoli:ommunLcation System Extensioon (II) EMBRATEL 215.0 42.3 42.3 1974 1975-77 c 4.2 National Telosraphic Notwork EMBRATEL 18.4 16.6 16.6 1973 1973-77 b 4,3 Braail Caribboan Sulbmarine Cable EMBRATEL 15.0 14.0 14.0 1973 1974-77 b 4.4 Alternative CommunLcatlion Channela EMBR,TEL 53.4 11.7 11.7 1973 1974-77 4.5 Dnta Transmission Grid (Phaso I) EMBM,TEL 4.0 3.0 3.0 1973 1974-75 b 4.6 Automattc Exchange for Meanage Retransmission (SICRAM) EMBRATEL 6.5 5.2 5.2 1973 1973-76 a 4.7 International Telophone Switching Exchange Center EMBR,TEL 6.1 6.0 6.0 1973 1973-77 b 4.8 Second Antennis for Land Transmission PMBRATEV, 4.0 3.5 3.5 1973 1973-75 b 4.9 Internat:ional Tolox Computerized Conter V4BRA.TEL 3.1 3.0 3.0 1974 1974-76 c 4.10 State Telephone Network Expansion I TELEBRAS 1,062.0 159.0 318.0 1973 1973-76 b 4.11 State Telephonae Network Expansion II TELE!BRAS 1,061.0 157.0 629.0 1974 1974-80 b 4.12 Tolocoarunication Control Canter DENITEL 10.0 8.0 8.0 1973 1973-75 b 4.13 Improvoient ot 'Postal Servicen MIC 66.0 6.5 33.0 1973 1974-76 b T1TAL 2.524.0 435.8 1093.3 Table 5: LIST OF PROJEICTS SUITABLE FOR EXTERNAL FINANCINt; - WATER AM) SEWAG3E (In million of US$) Executing Estimated ForeLgn Exchange External Probjable Disbursement Status Agency Total Cost Component Financing Sought Commitment Date Period of Project 5.1 Bahia Water Supply BNH 84. 7 _ 30.'C 1973 1973-75 a 5.2 San Paoilo Water Supply DLstribution 'Network BNH/SAEC 52.2 - 15.0 1973 1973-75 b 5.3 Sao Paulo Wat:er Supply Main Dact Line BNH/COMASP 225.2 40.0 37.CI 1973 1973-75 b 5.4 Pio de Janeiro Water Suplply BNH/CEDAG. 30.0 7.0 10.0 1973 1973-75 a 5.5 Belo Horizonte Sewage Disposable Project BNH/DMAE 32.0 5.0 16.tl 1973 1973-76 b 5.6 Sao Pauilo Sewtage System BNH/SANESP 104.0 14.0 20.t 1973 1973-77 5.7 Water Supply and Sewage Disposal in Eight District olE Minas Gerais C0tAG 21.0 10.3 10.3 1974 1974-75 c TOTAL 549.1 76.3 138.3 _I1e16: LIST OF PROJECTS SUITABLE FOR EXTERNAL FINANCING - ACRICUlTURE SECTOR (In million of UtS$) Executing Estimated F'oreigri Exchznge External Probable Disbursement Statujs Agency Total Ccst Component Financing Sought Commitment Date P'eriod of Project PIN' 6.1 Maranhao (Alto Turi Colonization) SUDENE 12.6 2.0 6.7 1972 1Sl73-78 a 6.2 Colonization Road in West Maranhao S7ATE OF MARANHAO 61.C 6.0 20.0 1973 1973-76 c 6.3 Colonizat:ion A'lttmire INCRA 135.0 C100 60. 0 1973 1973-76 b 6.4 Santarer Itaituiba INCRA 42.C0 - 23. 0 1974 1974-78 c 6.5 Northeast: Irrilgation Program GEIDA 535.C - 240.0 1973 19,73.80 b 6.6 Northeast: Integrated Agricultural Development SUDENE/DVCAS 130.E - 30. 0 1973 1S173.76 a PROTERRA 6. 7 Agro-Industry INortheast IPEA/l!I4NAGRI 80.CI - 40.0 1974 15174-77 b 6.8 Agricultural Research Project DNPEA 142.0 1.2.0 ti0.0 1973 1973-77 c 6.9 Reorganization of Northeast Sugar Industry IAA 120.C 20.0 50.0 1973 1573-78 b Other Prci i ec ts 6.10 Flood Control Program DNOS 185.C 20.0 98.5 1973 15173-76 6. 11 Ca2maqua * Mult:Lpurpose Hydraulic Resources Projects DNOS 50.0 10.0 43.0 1973 1Sl73-81 b 6.12 Soil Conaervatlon in Minas Gerais MG 91.CI 10.0 45. 0 1973 1Sl73-76 c 6.13 Livestock I CONDEPE 100.0C 3.0 25. 0 1973 1S74-78 b 6.14 Livestock II CONDEPE 153.0 3.0 94.0 1974 19174-77 b 6.15 Improved Seeds PLANASEM/MINAGRI 25.0C 5.0 L0.0 1972 1972-74 a 6.16 Foot and Mouth Disease Eradication CONDEPE/MINAGRI 67.C0 1.0.0 15.0 1973 1973-76 a 6.17 Agricultural Development for Export Crops in Minas Gerais bDMG 99.C - 150.0 1973 15173-75 b 6.18 Terminal Market GEMAB 68.0 1.3 25.0 1973 15173-76 a 5.19 Fishing Terminial MINAGRI/SUDEPE 30.C 5.0 L5.0 1973 15173-75 b TOTAL 29126 4 516.7 9.50.2 Table 7 LIST OF PROJECTS FOR KXTEtRNAL FINANCING - TilE EXPORT COIR1DOR PROGRAMI (In sillion. of US$) Enecorin EsEtimated Forei. n Extchange E.-rnai Probable Dioboroe.ent Status Agency Total Cost Cosipea.rt Financing Sought A/Cositrnent Dare Period of Projec First priority Projecto llto G ..r. i/Eepirlto Slrto Corridor 7.1 Consruoctron of Silos CSBRBZEM 3.5 noa 3.5 1973 1973-74 b 7.2 Nev Railway Alig-cet-BeIo Horinsota/Coeta Lacerda DNEP/RPPSA 27.0 5 0 23.0 1973 1973-74 b 7.3 Cold Storage Ieotllatior (Vitoria) DhPVN 2.0 n s 1.7 1973 1973-74 b 7.4 Tbehnical Assistocce r- PrsMere cin try of Agriculture -d -- -- - Sob-Total 36.3 28.2 SAO PauIo CorrIdor 7.5 Cosotrrotion of Silos CIIBAXEM 5.0 n 50 1973 1973-74 b 7.6 Neck eck iI. on the So Pssulo/Sacto Lice DNEF/RPPSA 20.0 10.0 18.0 1973 1973-74 b 7.7 Rnlwoc Cnoonclior M NALSA-15tJ8SATUB7A ..2, .5 3.7 11.0 !973 !973-74 b 7.8 Cold Itoroge Installatis.. (Santos) DNPVN 12.0 n,:, 9.7 1973 1973-74 b 7 9 Grain Looding Pecilities (Santos) ONPVN 17.8 n.0.15 8 1972 1972-73 7.10 Technical Aesietrne to FPrmars Ministry of Agri-Itore 3.3 -- _ -. Sob-Total 70.6 59 5 P.rocn Corridor 11 Cococr ction of Silos CIBRAZEM 5.0 n5a 5 0 1973 1973-74 b 7.12 Railroad ltipevo-Poctr Gr.nan DNEF/RFPSA 45.0 15.0 28 9 1973 1973-74 b 7 13 Rehobilitation of Exioting Lines DNEP/RfFSA 20 0 3.0 10.0 1973 1973-74 b 7.14. GrogIn Lcndinf nFlrStAee (Psrocngon) DtJYN 13.8 n o. 11.4 !972 1973-73 7 7.15 Purr SIlO DNPVN 20.0 n a 18.0 1973 1973-74 7.16 Technicol Assistscne to F--t-ern Ministry of Agri-cltsre 2.5 -- _ __ Sob-T.r.I 105.3 73 3 Rio Grand do S. Corridor 7.17 Co-orn1cltoe of SIlos.I CT5AZE- 5.0 no. 5.0 1973 1973-74 >18 Cold Itorag. lnetrlltione (Rio Grands) DNPVN .3 n.a. 8K3 1972 1972-73 - 10 Gcsin Loading FPcillriee (Rio Grande DNPVN 16.5 no. 16.5 1972 1972-73 1.ooo ..- o_ o -0C1-o cor o n0 ar ..-1600.0 o . o o oooo 16.-o.a aC Zo 0*00 a 10on.04 o 01z.601010. 00 6 0'0 0110611( - 0 C .6..6. . .''r>gP o'gdMgf X_o 0 z _r_nv drO D _ .1 0 - OC t oNe_~, ^ , 0 0 01.1 0000 0 0 0. C b.0 6 0 1 0 .000<001.cd.c01 0 0 011000 1..0. 0 .|:~~~~~~~~~~0 _l0 C$4'6100>~1 0. . 1 J^ e ~ g C111~00. C I 0 1 0 00.001.1000.1 00.~co. o . 1 0 W~ C:oooor uN-u__e oox ,I W * v) L O .~0 -.: 0nX4go>nOOtno sOaooNu 0rrOO__. 1*~~~~~~~~~~~C0> .<< 00 £ Q o O O.o O 00v oO_OO Lnos1 o r Zs<_^_0 rNOZor .r mn v OKOmo ostrar omor n_o awodoCl 6> n cclv.oorsnq_o°°so!S_ 0 *1 0000o _ -<.6 >., OIC§O 00000000nwrwo> mR >0 0 10 . o_ .. 1 e6 o -C < Xo±± .60 W2 $¢> 0. -a C L < > 10 e 10, l 10 C OC.OO C5 100. 1 aP ¢¢w¢w i8 >wo ~~~~C 0. n10' wLi @D ;@w °° 8°8.5 C .-00 0 - 00 C6 0 Xtzxz x C 0 'd 1000.0 CC 0.60.0000.0,.. .o 0> 8~~~~~~~~~~~~~~~> 10 c 1 o -ce .0 O-1 C>C.c10 S o.100 06.Ce Cn 10041 *. C 1.C 0 _,.± I w...I C 006. C 0 b.1 ~~~~~~~~~0 (.60 0. 0 0 00 00 1 C 00 01 , F 50.l ~ * x 101 C 00 fi0 010 ooC-00.0100 0. 100o C5 000.1 0w= Iz o 0.0-o 00 00 0 0 ' I 0 <0 10 0 0 ,. e00 Cj e.O e46 4,0e E oX se w C O 05 O 6f 10000..0 >t>. 2.X__a.5_"' 6 01 0s c 01 ._8_C 1 '~~~~01.060.0 1 .0oC C < Z6.6O0., _ . 0100 C 00 °$ j 01.60 eO 000 ' mu'5 a-.10066.0 _00* rC0.6_e e~Xn sXZ;5, ,E 1 . o 600. .80c 6000 1000 0 010 CE I1 . Ot an 0 s .! f r Ol.c6gW .° 6 ,o U C 00010010 00 0 00006¢.0006Zn 8 0 0.0I0<0.0_.16100C1010>__ v e CC o O E. _ _ E -c g g 9 S =0.e00.0.r 16>0>000.60°> w 011 000< w.0Uc6c6.-.0e.0. 0.00. ¢ 00 c.0 610o>1fi1e<0140 001. s.04- .6.0166.600.0160…0 o 6660000.0000. _ . l.vl O c OOc_cc_ __ __ .6 o0100100r0100101n 00.no10.o 9s v| °e o C 10010 0 10000 < 6 v 0c ,WlaeL~: .LIST OF PROJECTS SUITABLE FOR EXTENAL FINAINCII'GO - MISCELLANEOUS (In millions of US$) -… imat- For-eign Probabl StatU-s Executing I'otal Exchange External Commitment D)isbrase- of Agency/sponsor Cost ConDonent FinEmcing Date merit Period. F'roject He ,lth 9.1 Exmansiorn of Sao Paulo Public Sao Paulo State Health Services C,overnment 51 7 10- 1973 1973-75 (b) 9.2 Santa Catarin.a Health Project Santa Catarina 12 I4.5 4.4 1973 1973-75 (b) State Government Regional and Urban Development 9.3 Vale do FLibeira Integ:rated Development Plan aEJDEI2PA 34 7.5 7.5 1973 1973-75 (b) 9.h Industrial District o.f Curitiba Frefeitura Munici-- 41 12 12 1973 1973-75 (b) pal de Curitiba 9.5 Regional Park - Iguacu F'refeitura Murici- 6 - 3 1973 197.3-75 (b) pal de Curitiba I4ap]ping 9.6 ,Cartographical Equipment IBGE/IBG 9 4.5 3 1973 1973-75 (b) TO IA.L 1.53 35.5 39.9