Palestra ministrada em seminário, realizado nas cidades canadenses de Montréal e Québec, sobre os preparativos para a Copa e Olimpíadas brasileiras.

1. Québec – Bureau São Paulo
Working in Brazil
th
2014 Soccer World Cup
2016th Olympics
Leon Claudio Myssior,
Sinaenco's architecture vice-president

2. The National Union of Architecture, Engineering and Consultancy
> Since 1988
> 18 thousand member companies
> Present in most of brazilian states
"Showcase or Liability?"
It was from this vision that Sinaenco began a series of
diagnoses and actions all over the country (in 2006), to
understand the opportunities and risks that a soccer World
Cup offers to the Host Country, regarding not only the
stadiums, but a wide range of works and interventions
such as public transport and urban mobility, accessibility,
infrastructure, sanitation, energy, telecommunications,
hospitality, tourism and health.

3. Brazil | Statistics

4. Statistics
Statistics
$2.023 trillion (nominal)
GDP
$2.182 trillion (PPP)
GDP growth 7.6% (2010)
$10,471 (2010) (nominal; 55th)
GDP per capita
$11,289 (2010) (PPP; 71th)
GDP by sector agriculture: 5.5% industry: 28.7% services: 65,8% (2007)
Inflation (CPI) 4.44% (Aug 2010)
Population
15.5% (2009)
below poverty line
Gini index 49.3 (June 2009)
Labour force 103.6 million (2010 est.)
Labour force
agriculture: 20%, industry: 14% and services: 66% (2003 est.)
by occupation
Unemployment 5.7% (November 2010)
airplanes, steel; iron ore, coal; machine building; armaments; textilesand apparel;
petroleum; cement;chemicals; fertilizers; consumer products, including footwear,
Main industries toys, and electronics; food processing;transportation equipment, including
automobiles, rail cars and locomotives,ships, and aircraft; electronics;
telecommunications equipment,satellites, real estate, brewing, tourism
Ease of Doing Business Rank 127th

5. Statistics – cont.
Landings International Domestic Arrivals
Disembarkation of Quay on Domestic Flights -
passengers on international Monthly Variation
flights - Jan 2009 to 2011 2010/2011
> Passengers (2011 estimate): 180 million passengers/year
> Air Cargo (2011 estimate): 1 million tons/year

6. Brazil | Investments

7. Investments required
Can be divided into two major groups:
> The key to hosting the Games:
> Arenas
> Hospitality
> Accessibility and mobility
> Those that make it possible to leave a legacy for cities
and virtuousness for the Host Country.

8. Accessibility to the stadiums and the hospitality poles
> Priority for investments within the urban infrastructure:
> Ensure good accessibility by mass transit in stages
> Facilitate access to the poles of hospitality and its
connection to the stadiums
> Facilitate mobility between the airports and the
poles of hospitality
> The improvement of mobility is a broader need that goes
beyond the 2014th World Cup and the 2016th Olympics:
> For game days, special operations to ensure traffic
mobility
> Specifically Brazil and Sao Paulo have great
experience in big events, such as Formula One race

9. Entrance to the country and regional movement
> Given the distances, in relation to the outside and between
host cities, the main movement of people (internal and
external) to follow the games of the 2014th Cup and 2016th
Olympics will be by air.
> The air companies will be able to meet demand, but the
bottleneck is in the airport infrastructure and superstructure.
> The airports need to be substantially enlarged (some
modernized) both in runway and passenger terminal.
> The air control needs to be improved.
> Care services to users, both at entry and the output, will
need to be substantially improved:
> Procedures, facilities, software and staff training.

10. PAC - Growing Acceleration Program
PAC is a government program that has been implemented in the past
four years, a infrastructure investment of $ 300 billion in
transportation, energy, sanitation, housing and water resources.
The expansion of investment in infrastructure is a fundamental
condition for the acceleration of sustainable development in Brazil.
Thus, the country can overcome the bottlenecks in the economy and
encourage increased productivity and reduced regional and social
inequalities.
The set of investments is organized into three main vectors:
> Logistical infrastructure, involving the construction and expansion
of highways, railways, ports, airports and waterways;
> Energy Infrastructure, corresponding to electrical generation and
transmission, production, exploration and transportation of oil,
natural gas and renewable fuels, and Social;
> Urban Infrastructure, sanitation, housing, subways, commuter rail
and water resources.

11. PAC - Growing Acceleration Program – cont.
The Logistics Infrastructure planned expenditures from 2007 to
2010 is $ 20 billion; for Energy, $ 160 billion, and for the Social and
Urban, $ 100 billion.
A program of this magnitude is only possible through partnerships
between the public and private investor, added to a constant
articulation between the federal entities (states and municipalities).
The plan considered the construction, upgrading, duplication and
recovery of 45,000 km of roads, 2,518 km of railways, expansion and
improvement of 12 ports and 20 airports, generating over 12,386 MW
of electricity, construction of 13,826 km of transmission lines, as well
as new petrochemical plants, pipelines, and biodiesel plants.
For the housing, the PAC planned investments of $ 60 billion,
benefiting four million households. The program was also planned to
result in water and sewage services to 22.5 million
Homes, and water infrastructure to 23.8 million people.

12. PAC - Growing Acceleration Program – cont.
But the government, due
to very poor analisys, bad
diagnosis and misplanning
issues, is still struggling to
surpass meres 15% of the
planned.

13. PAC 2 - Growing Acceleration Program part 2
PAC 2 is nothing more than the original PAC
repacked and with new marketing aproach, now
facing new chalenges:
> Most of the infrastructure investments are
urban large interventions and need years to be
propperly deployed; unfortunately most of them
are still in the feasibility and enviromental
studies phase;
> airports are nowadays one of the biggest
bottlenecks we have, constraining development,
hampering regional development and threatening
the success of the Cup and the Olympics.

14. 2014th Soccer World Cup and
2016th Olympics

15. The meaning of 2014th SWC and 2016th Olympics
> The 2014th Soccer World Cup and the 2016th Olympics in
Brazil will both be landmark in the countries
development path
> Brazil will be a major destination for international
investment in the coming years
> Brazil is a country of vast territory, even with high
potential for occupancy, with few environmental risks,
large population with sustained upward mobility, stable
democracy, monetary stability, food security, plenty of
water and renewable energy.

16. Brazil | Expectation

17. Construction sector expects to build 2.1 bln by 2020 m2 for housing
Folha de S. Paulo - São Paulo / SP - MONEY - 28/02/2011
By 2020 Brazil will have to build 2.1 billion square feet of
buildings - the equivalent of more than three times the size
of Singapore, according to Abramat (industry association of
construction materials).
This volume would be able to meet a housing need of 20
million new homes between 2009 and 2020, according to the
organization, which based its calculations on residential
projects an average of 105 m2 area.
The size of the numbers may alert the market not only by the
amount of land that will be required (approximately 900
million square meters), but also by the ability of the
workforce, with 2.7 million additional jobs.

18. Brazil will invest U.S. $ 3.3 tri 2014
O Estado de S. Paulo - São Paulo / SP - ECONOMY - 28/02/2011
Petroleum and Energy will contribute $ 500 billion, study finds BNDES
Alexandre Rodrigues - O Estado de S. Paulo
The binomial oil and electric energy will pull the country's growth with investments
totaling more than half a trillion dollars over the next four years. The account was made
​by Banco Nacional de Desenvolvimento Economico e Social (BNDES), to upgrade its
mapping of investments that points to a total reversal of $ 3.3 trillion into the economy
between 2011 and 2014.
The figure was designed from information on prospective projects in industry,
construction and infrastructure in 15 sectors, which represent half of total investment in
the economy. This figure reached U.S. $ 1.6 trillion, 62% more than was invested
between 2006 and 2009. The figure also represents a doubling of the bank had detected
in the previous survey to industry and infrastructure for the period 2010-2013.
(...)
The chain of oil and gas called attention to the jump from the $ 295 billion in the
previous survey to $ 378 billion in four years starting this year. In comparison with the $
205 billion that invested between 2006 and 2009, the exploration of oil and gas picks up
the industrial growth with a 84% increase in investments by 2014.
(...)
The highlight is the 260% growth in investments in ports, which will total $ 18 billion in
four years.
(...)

19. High demand for engineers in construction leaves Alert
CBIC - Brazilian Chamber of Construction Industry - Brasilia / DF - News
Registration of new professionals not included with the vacancy rate in the
industry; groups speak in importing hand work
Paul Justus and Eve Robertson
The country's growth is creating a gap between the creation of vacancies for professionals
with higher education sector and the civil daconstrução registration of new engineers .
Last year, for example, as they were created 11,559 jobs for graduates in this sector, the
Regional Councils of Engineering, Architecture and Agronomy (Creas) throughout Brazil have
granted registration to 6,529 engineers civilians. Although not included in the accounts
hiring architects, data sinalizamo squeeze gripping the industry.
(...)
"The figures are alarming, especially when analyzing the number of students who attend
and leaving for the faculties of engineering." Melo says dropout further complicates the task
of meeting the demand. "The formation of the second degree is very poor, so many
students drop out of courses after repeated failures in subjects like Calculus," he says.
Shortages for the Institute of Applied Economic Research (IPEA), to consider the level of
growth of 4.5% in 2011, Brazil should have shortages in specific areas of engineering (see
more details in the article opposite). "Looking back, we see increased demand since 2004.
(...)
Faced with the problem, bedridden Brazilian Construction Industry (CBIC) has already
initiated talks with the Embassy of Portugal to discuss the possibility of importing engineers
from that country.

20. Projects of infrastructure and public services need look no physical works
Economic Value - São Paulo / SP - BRAZIL - 14/03/2011
To meet the increasing demand and enable the rates of economic growth envisaged over
the next year, Brazil will need to invest anything between $ 172 billion and $ 291 billion in
logistics and transportation by 2023. The horizon of investment consider what has already
been applied since 2008, but the assessment of Bernardo Tavares de Almeida and Hélcio
​
Tokeshi, expenditure will be made only if the country change the way you plan and carry
out projects of infrastructure .
In a chapter of the book "2022: Proposals For A Better In Brazil the Bicentennial Year" in
dealing with the bottlenecks of infrastructure, Almeida Tokeshi made a diagnosis of current
situation and propose the creation of a "modern system of public services." The first change
is conceptual: the emphasis of projects should be in the public services and not the work
physically.
"We, the citizens, less interested in the physical structure that allows us to have public
services, and more the quality of those services. Whether the school building is new, old or
retired, what matters is that portfolios have comfortable rooms ventilated and well lit,
clean bathrooms and patios, and other services essential to learning, "say the authors. "By
highlighting the service passed to subordinate technical needs of the users of
infrastructure . "
(...)

21. President Dilma announces $ 18 billion for 2014 Cup
O Diário - Maringá/PR - ESPORTES - 16/03/2011
The president Roussef said on Tuesday that Brazil's investment in infrastructure to host the
World Cup in 2014 should reach R $ 18 billion.
With upbeat speech, she projected benefits to the country's development, as with the
emergence of new jobs - has even predicted, including the creation of 330,000 direct jobs
and another 400,000 temporary.
In addition to reform and build stadiums, Brazil needs to make further investments, such as
the expansion of airports, considered the main bottleneck in the country, and improvement
in key sectors such as transport. According Dilma, these investments, for the most part, are
federal.
"The World Cup will contribute to our development project, creating jobs and increasing
income of the worker. estimate that it will create 330 000 direct jobs and 400,000
temporary. The event will make Brazil an international showcase - hope to receive about
600 000 tourists. In the infrastructure sector, investments will reach $ 18 billion, with 68%
share of the federal government, "said Dilma in interview to talk with President Blog
Plateau.
(...)

22. Mesmo com obras, aeroportos ficarão saturados na Copa, diz estudo
IG - Economia - - EMPRESAS - 22/03/2011
The investment of $ 4 billion in the reform of Brazil's main airports, announced by Infraero
last year, will not suffice to prevent Brazil hold the 2014 World Cup with saturated airports.
This is the conclusion that a study has just been published by the Federal University of Rio
de Janeiro (UFRJ), which estimates an increase of 60 million in passenger numbers in 2014
using the 16 airports in the cities that will host the games.
The study concluded that the reform of Infraero to meet demand from the airline industry
in 2014 is underestimated. In reaching these conclusions, the professor UFJR Elton
Fernandes, coordinator of the study took into account the pattern of space per passenger
established by the Federal Aviation Administration, an agency which regulates civil aviation
in the United States. It said airports should have at least 23 square meters for each
domestic passenger and 14 for international. "After the works, there will be a shortage of
366 thousand square meters to meet demand in 2014, "concludes the professor, in the
study.
(…)
The Soccer World Cup in Brazil is expected to generate an additional movement in the
airline industry than 3 million passengers in 2014. For Professor Fernandes, the bulk of
tourists can cause collapse of the airline industry during the World Cup, caused by an
increase in the use of an infrastructure that is already saturated.

23. How to Work in Brazil

24. Legal Grounds to Bid (Public Bids) in Brazil
a) a foreign company that has a subsidiary in Brazil could join the bidding, since
it is authorized to operate in the country;
b) the foreign company that has no official branch in Brazil (not authorized to
operate in the country) may participate in international biddings only;
(...)
d) the international competitive bidding as a rule, should be performed in the
mode of competition is allowed, exceptionally, the modalities of making call
prices and, under § 3 of art. 23 of Law No. 8.666/93;
e) in relation to specific sectors of national economy, unaware there different
norms for the participation of foreign companies "operating in the Country" or
"not operating in the country";
The National Bidding Law No. 8.666/93 Demands the companies' technical
references Provided by the Architects and engeneers professional body
(CREA, just like lawyers BAR), for the employees and for the companies
Itself, Which Prevents newly constituted companies from bidding public
(except for international biddings)

25. Legal Grounds to Work in Brazil
The foreign company, whatever its purpose, may not, without the authorization
of the Executive Branch, working in the country, even by subordinate
establishments may, however, except in cases contemplated by law, be a
shareholder of a Brazilian corporation.
As for legalization for operational purposes, the company authorized can not start
its activity before it is entered in the record itself on where it should be
established.
Moreover, the foreign company allowed to operate is required to have a
permanent, representative in Brazil with powers to resolve any issues and receive
subpoena by society. Moreover, the representative can only act to third parties
filed and registered after the instrument of his appointment.
The law also stipulates that any amendment to the contract or the statute depend
on the approval of the Executive, to take effect on the national territory.
A foreign company if desired, may be national, determining the code that
authorized by the executive branch, the foreign company permitted to operate in
the country can be nationalized by transferring its headquarters to Brazil.

26. Legal Grounds to Work in Brazil – cont.
Several foreign companies have chosen to
acquire stake in domestic companies, either
through the purchase of the company,
either through an exchange of shares
between companies.

27. Interested on the promising Brazilian market, professionals from other countries
landing in Brazil after work
While the Brazilian economy grows by leaps and bounds, the lack of planning
by governments and the resulting structural problems of the country also
appear more to the naked eye. The need for investment in roads, ports,
airports and the growing construction market and the pre-salt bump on one
fundamental point: there is a skilled workforce to meet all this demand.
The only temporary solution is to bring foreign professionals to work here.
Engineers from around the world are offering to cross the Atlantic and up for
lower wages, have jobs in brazilian lands.
Figures from the Ministry of Labor show that the importation of "talent" is
growing by leaps and bounds. In 2008, 2,520 engineers called for a work visa
in Brazil. A year later the figure was 3,226 and in 2010, 4256, an increase of
68.8% in just two years.
(...)
While the Brazilian universities make up about 55.000 engineers a year, the
market needs 80 000 new professionals annually. Worse, 32.000 trainees in
the area would go to the financial market. Just as a comparison, China has
formed around 400.000 engineers a year, India and Korea 280.000, 80.000.
(...)

28. 2014 Brazil World Cup Architectural Summit – New York
And how to work in Brazil?
Joining local businesses in architecture and
engineering (since Brazilian law restricts the
provision of professional services to Brazilian
companies only, where foreign ownership is 49% or
less).
More information on SINAENCO (Union of
Architecture and Engineering):
R. Marques de Itu, No. 70, 3rd floor
Postal Code (Zip): 01223-000
São Paulo - SP - Brazil
Phone: +55-11-3123.9200
Fax: +55-11-3120.3629
E-mail: sinaenco@sinaenco.com.br
Web: www.sinaenco.com.br

29. a good design always
precedes a good work.
Thank You !
Leon Claudio Myssior
leon@myssior.com.br