Infra 2009 - Apresentação Steve Filipov - Terex Brazil Infrastructure Conference

8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference

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Developing MarketsInfrastructure Activity in

Economic Crisis

Steve Filipov


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Pace of economic development is directly impacted by the on-going financial crisis but long-term, underlying drivers remainintact

Infrastructure investment has been slowed in places but, on-balance, continues despite (if not because of) the economiccrisis

Infrastructure opportunities are global but, near term, will bestrongest in countries who have the fiscal capacity and the

policy mindset to fund aggressive stimulus Global infrastructure is an important opportunity for companys

like Terex who have a portfolio of capabilities and the ability toexecute globally

Key Messages


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What is a Developing Market?

-5%

0%

5%

10%

15%

($10) $0 $10 $20 $30 $40 $50 $60

GDP/Capita

(i.e., prosperity)

0607 Growth inReal GDP/Capita

(i.e., development)

DevelopedDeveloping

W. Europe N. America ANZ

Japan Asia E. Europe Latin America

M. East Africa

LowGrowth

ModerateGrowth

High Growth

$25k/head

Source: Analysis of data from the Economist eiu; Bubbles represent countries. Bubble size is proportioned to country GDP

China

US

India

Russia

Brazil

A DEFINITION

Low but increasingprosperity

Increasing constructionspending

Increasing commodityconsumption

Conditions favoringsustained, long-term growth

Mexico

Poland


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4-10%

-5%

0%

5%

10%

15%

($10) $0 $10 $20 $30 $40 $50 $60

What is a developing market?

GDP/Capita

(i.e., prosperity)

08 09 Growth inReal GDP/Capita

(i.e., development)

DevelopedDeveloping

W. Europe N. America

ANZ

Japan

Asia E. Europe

Latin America

M. East

Africa

LowGrowth

ModerateGrowth

High Growth

Clearly a more challenging

new eraat least for now

Global crisis has hit allmarkets - some developingmarkets have been hitparticularly hard

Much depends on the

ability of governments torespond and respondeffectively

Infrastructure is both animportant lever and animportant long-term priority

$25k/head

Source: Analysis of data from the Economist eiu; Bubbles represent countries. Bubble size is proportioned to country GDP

China

US

India

Russia

Brazil

Mexico

Poland

Japan

What is a Developing Market?


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Situation by Market (BRIC)

-18.0%

-14.0%

-10.0%

-6.0%

-2.0%

2.0%

6.0%

10.0%

14.0%

18.0%

'97'98'99 '00 '01'02 '03'04 '05'06 '07'08'09 '10

CHINA

-18.0%

-14.0%

-10.0%

-6.0%

-2.0%

2.0%

6.0%

10.0%

14.0%

18.0%

'97'98'99 '00 '01'02 '03'04 '05'06 '07'08'09 '10

INDIA

-18.0%

-14.0%

-10.0%

-6.0%

-2.0%

2.0%

6.0%

10.0%

14.0%

18.0%

'97'98'99 '00 '01'02 '03'04 '05'06 '07'08'09 '10

RUSSIA

-18.0%

-14.0%

-10.0%

-6.0%

-2.0%

2.0%

6.0%

10.0%

14.0%

18.0%

'97'98'99 '00 '01'02 '03'04 '05'06 '07'08'09 '10

BRAZIL

History + Jun 08 Forecast Feb/ Mar 09 ForecastReal GDP Growth:

Situations range fromtroubling (China) todownright grim (Russia)

China is best positioned butwill deteriorate if growthslows further

India faces significantchallenges struggling togrow, despite governmentintervention

Sharply lower outlooks inBrazil, as industrialconditions weaken andconsumption slows

Russia has been hit hardand continues to fightdownward pressure on itscurrency, as it struggles torestore economic growth


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What has Changed?

1. Global economic expansion has clearlyexperienced a set-back

2. All notions of decoupling look ridiculous in

hindsight the world is as connected as ever,perhaps more so

3. Risk level is clearly elevated and will remain thatway until the flow of global capital is restored


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What hasnt Changed?

1. The pursuit of greater prosperity continues

2. The path to prosperity remains clear: Solid foundation for economic activity (i.e., infrastructure)

Well functioning economic and regulatory frameworks Governments that are free of corruption and allow every

individual to advance according to their abilities

1. There is no free lunch If it seems too good to be true, it still is Nothing lasts forever


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What is being done? (G20)

Source: Brookings Institution

Large Stimulus Plan Modest Stimulus Plan Small Stimulus PlanLarge Stimulus Plan Modest Stimulus Plan Small Stimulus Plan


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Stimulus by Market (G20)

Excludes infrastructure that was already planned

Source: Brookings Institution + Terex analysis

Country 2009 Spending Total % of GDP ('09) % of GDP (total) Emphasis

Saudi Arabia 17.6$ 49.6$ 3.3% 9.4% Education, Infrastructure

USA 268.0$ 841.0$ 1.9% 5.9% Infrastructure, Social Programs, Tax Cuts, Bailouts

China 90.0$ 204.0$ 2.1% 4.8% Infrastructure/ Reconstruction, Social Programs

Spain 18.2$ 75.3$ 1.1% 4.5% Tax Cuts, Mortgage Relief, Infrastructure, Auto Industry

Germany 55.8$ 130.4$ 1.5% 3.4% Tax Cuts, Infrastructure, Auto Industry

Canada 23.2$ 43.6$ 1.5% 2.8% Tax Cuts, Housing, Infrastructure, Social Programs

Korea 13.7$ 26.1$ 1.4% 2.7% Infrastructure, Tax Cuts, Industry Support

S. Africa 4.0$ 7.9$ 1.3% 2.6% Infrastructure, Social Programs

Indonesia 6.7$ 12.5$ 1.3% 2.4% Tax Cuts, Infrastructure, Fuel and Power SubsidiesJapan 66.1$ 104.4$ 1.4% 2.2% Tax Cuts, Tax Refunds, Earthquake Proofing

Australia 8.5$ 19.3$ 0.8% 1.8% Tax Refunds, Infrastructure, Tax Cuts, Job Creation

Russia 30.0$ 30.0$ 1.7% 1.7% Corporate Tax Relief

United Kingdom 37.9$ 40.8$ 1.4% 1.5% Tax Cuts, Capital Spending, Social Programs

Argentina 4.4$ 4.4$ 1.3% 1.3% Loan Subsidies, Infrastructure

Mexico 11.4$ 11.4$ 1.0% 1.0% Price Supports, Layoff Prevention, Infrastructure

France 20.5$ 20.5$ 0.7% 0.7% Tax Relief, Auto/ Other Industrial Support, Infrastructure

Brazil 5.1$ 8.6$ 0.3% 0.5% Tax Cuts

India 6.5$ 6.5$ 0.5% 0.5% Financial System, Infrastructure Loan Guarantees

Italy 4.7$ 7.0$ 0.2% 0.3% Tax Cuts, Social Programs

Turkey -$ -$ 0.0% 0.0% Negotiating with the IMF

Total 692$ 1,643$ 1.7% 4.8%

Incremental Spending on Economic Stimulus by Country: G20, $B


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Infrastructure as a priority

Infrastructure as Economic Stimulus

The story remains the same: the globaleconomy Is running a major infrastructuredeficit as the cost of decades ofunderinvestment is now surfacing.Whats changing are the numbers.Estimates regarding the demand forinfrastructure money are revised upward

almost on a daily basis.The latest estimate suggests that theglobal economy will see between $25 and$30 trillion of fresh infrastructureinvestment in the coming two decades.In the US, we will see close to $150billion a year of new infrastructureinvestment in coming decade, in Europeroughly $300 billion a year and in China,no less than $200 billion a year.Roughly 40% of this money will go totransport and almost one-third to powerfacilities (see chart)

Source: CIBC World Markets

B


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China

XINJIANG

QINGHAI

NEI MONGOL

GANSU

NINGXIA

SHAANXIXIZANG

SICHUANCHONGQING

YUNNAN

GUIZHOU

GUANGXI

HAINAN

TAIWAN

HUNAN JIANGXIZHEJIANG

FUJIAN

GUANGDONG

HONG KONGMACAU

Shanghai

SHANGHAI SHI

Guangzhou

Chengdu

JIANGSU

ANHUIHUBEI

HENAN

SHANXI

SHANDONG

Beijing

ShenyangHEBEI

BEIJING SHITIANJIN

LIAONING

JILIN

HEILONGJIANG

POPULATION BYREGION (08): 1.3 B*

ShanghaiInland(28%)

GDP BY REGION(08): $ 4.6 T*

Bohai

(18%)Southeast(23%)

NorthCentral(10%)

SouthCentral(15%)

Northeast (5%) West (2%)

* Hong Kong, Macau, and Taiwan are not considered part of China above see Southeast Asia

ShanghaiInland(32%)

Bohai(24%)

Southeast(23%)

North Central (8%)

South Central (8%)

Northeast (4%) West (2%)

21 % of world population but only 7 % of global GDP as of 2008

Most of the current economy is centered in three regions along theeastern coast of the country

Consumption in these three regions also drives the economies furtherinland, where much of Chinas agriculture and commodity industries arecentered

Major investments in infrastructure continue to drive strong economicgrowth, with maturity of the Chinese economy not likely until after 2030


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China Infrastructure

CHINAS 4T RMB ECONOMIC STIMULUS TARGETING INFRASTRUCTURE (NOV. 2008)

Transportation/Electricity

(1.8T, 45%)

EarthquakeRebuilding

(1T, 25%)

RuralInfrastructure

(.37T, 9%)

Environment

(.35T, 9%)

Welfare Housing

(.28T, 7%)

Independent Innovation

(.16 T, 4%)Healthcare/ Culture

(.04 T, 1%)

~1/3 is new spending

Also, confirms commitmentto previous projects

0%

10%

20%

30%

40%

50%

60%

China

Russia

India

Japan

Brazil

Saudi

S.

Africa

Germany U

KUS

RESERVE TO GDP RATIO (2008)

0%

20%

40%

60%

80%100%

120%

140%

160%

180%

China

Russia

India

Japan

Brazil

Saudi

S.

Africa

Germany

UK

US

DEBT TO GDP RATIO (2008)

Capacity for more

Capacity

for more


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China Example

Source: Public Source

China Strategic Project: Earthquake Rebuild

Total Investment: $235 Billion in total

Covered area of 132,596 square km,

population of 19.8 Million

Includes earthquake rebuild, new

infrastructure, tourism and other projects

that is beneficial to regional economicdevelopment

Key Facts

Sample of Projects

Dujiangyan-Yingxiu Expressway Rebuild: 1B

Qingchuan County rebuild: 0.6B

Beichuan County rebuild: 1.6B

Quang minority cultural site building: 1B

Jiulongmen international tourism site: 6B

Chengdu International Logistic Park: 2.8B

Earthquake Museum: 0.39B


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China Example


China Strategic Project: Beijing-Shanghai High Speed Railway

Total Investment: $32.3 Billion

Total Length: 1318 KM, 21stations including

Beijing, Tianjin, Jinan, Bengbu, Nanjing,

Wuxi, Jiangsu and Shanghai.

Designed speed: 350 km/h 5 hours from

Beijing to Shanghai Construction period Commencement on

April 2008, put into operation in 2010

Key Facts

Equipments & Contractors

$4.4 Billion budget for purchasing

construction equipment

China Railway Engineering Co.: 40% of

the total construction

China Railway Group: 26% of the total

Sino-Hydro: 17%

China Communication Construction: 16%


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China Example


China Strategic Project: West to East Power Transmission

Total Investment: Over $77.4 Billion

3 Channels: North line from InnerMongolia and Shaanxi to North China;Central line form Sichuan to Central

and East China; South line fromYunnan, Guizhouand Guangxi toSouth China

Covered areas:Guizhou, Yunnan,Guangxi, Sichuan, Inner Mongolia,Shanxi, and Shaanxi Transmissionarea: Guangdong, Shanghai, Jiangsu,Zhejiang, Beijing and Tianjin.

Construction period: 2001-2010

Key Facts


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China Example


China Strategic Project: South to North Water Diversion

Total Investment: $71.4 billion

Project Scope:

East-line-from low reach of YangtzeRiver to Tianjin of 1,156km.

Mid-line-from middle reaches ofYangtze River to Beijing and Tianjinof 1,267km.

West -line-transfer the water fromupper reaches of Yangtze River toupper reaches of Yellow River.

East line and Mid line has started

construction. The approvedinvestment for the first phasereached 254.6 billion Yuan

4.16 Billion RMB for East line and18.23 Billion for Mid line has alreadybeen invested in December 2008

Key Facts


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Terex and China Infrastructure


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PAKISTAN

CHINA

BANGLADESH

PRADESH

ASSAM

Chandigarh

New Delhi

Indian claim

Gangtok

JHARKHAND

GUJARAT MADHYA PRADESH

RAJASTHAN

ANCHAL

PRADESH

BIHAR

UTTAR

DELHIHARYANA

NEPAL

NAGALAND

ARUNACHAL

MEGHALAY

UTTAR-

KASHMIR

HIMACHAL

PRADESH

BURMA

MIZORAM

Rangoon

LAKSHADWEEPKERALA

TAMIL NADL

Mumbai

Bangalore

KARNATAKA

MAHARASHTRA

GOA

ANDHARPRADESH

ORISSA

JAMMU AND

CHHATTISGARAH

WEST

(Bombay)

BENGAL

POPULATION BYREGION (08): 1.3 B*

North(31%)

GDP BY REGION(08): $ 1.2 T

West(20%)

South(21%)

East(24%)

Northeast (4%)

17% of world population but only 2 % of global GDP as of 2008

Economic activity is fairly evenly distributed but heavily concentrated nearmajor cities

Tier 2 cities are rapidly emerging centers for investments

Recent high rates of growth are slowed by the financial crisis but aboveaverage growth is expected to continue long-term as more of India enters themodern world

North(28%)

West(26%)

South(26%)

East(17%)

Northeast (3%)

India


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300 PPP projects, across sectors, are at various stages

of implementation, with total project costs currentlyassessed at around USD 21.33 B

India Infrastructure

Sector No of projects Project costs (M $)

Airports 6 4,008

Energy 32 3,560

Ports 38 2,763

Roads 186 9,511

Railways 3 201

Urban development 35 1,287

Total 300 21,330


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Indian ports to be modernized to handle increased

load with additional investments from private and public sectorsUnder consideration:

Mumbai, Chennai P&O terminal, Jawaharlal Nehru Port TrustEnore, Mundhra and Pipavav

India Example

Planned Capex(11th Five Year Plan) Total % Major Ports Non Major Ports

TotalInvestment

$18,266 M 100% $11,080 M $ 7,186 M

Thru Pvt Sector $12,156 M 67% $7,373 M $4,782 M

Thru Govt $6,110 M 33% $3,706 M $2,404 M


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India Example


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66,590 km of National Highways, with Govt

continuing its phased initiatives to upgrade and strengthenthem through the National Highway

Development project ( NHDP)

India Example

Phase Length (km) Estimated Cost Status

Phase 1 7,498 $ 6,000 M 95% complete

Phase 2 6,647 $ 6,868 M 70% complete

Phase 3 4,035 $ 10,867 M In progress

Phase 5 6,500 NA To be tendered

Phase 6 1,000 $ 3,336 M To be tendered

Phase 7 700 $ 3,336 M To be tendered


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Kolkata Airport

Estimated Cost: $ 400 M

Completion: 2011

Est Passenger traffic: 20 M

Scope of Work: Extension ofsecondary runway, construction ofrapid taxiways and aprons, upgradation of air traffic management,brand new integrated terminal

building, communication,navigation and surveillancesystems

Chennai Airport

Estimated Cost: $ 360 M

Completion: 2011

Est Passenger traffic: 14 M

Scope of Work: Extension ofrunway, suitability for operationof larger aircraft , upgrade of airtraffic control systems andbrand new terminal building

India Example


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Kashmir Railway Project

Route Length: 290 Km

Gauge: 1676 mm

Stations: 30

Scope: 158 Bridges, 20 tunnels

Longest tunnel: 11km

Max speed - 100km / hr

One bridge will be the highestrailway structure in the world.

India Example
http://www.railway-technology.com/projects/kashmir-railway/http://www.railway-technology.com/projects/kashmir-railway/kashmir-railway1.html


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Terex and India Infrastructure


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Russia/CIS

Kyrgyzstan

Uzbekhistan

Russia

Kazakhstan

Turkmenistan

Georgia

Azerbaijian

Armenia

Ukraine

Belarus

Vistula

Lithuania

LatviaEstonia

POPULATION BYREGION (08): 285 M


Russia(50%)

Russia(74%)

WesternCIS (29%)

TheStans(21%)

WesternCIS (19%)

The Stans (7%)

4 % of world population and 4% of global GDP as of 2008

Prior to the global financial crisis, Russia was experiencing rapid growth as

the state utilizes natural resource wealth to modernize the economy withinfrastructure investment

Neighboring countries benefited from Russias growth and (in the WesternCIS) increasing trade with eastern and western European neighbors

Agriculture and commodities dominate the economies of The Stans,whose contribution to regional GDP is currently modest


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The Federal Capital budgeting documents planned a 10x increase in

transport infrastructure spendingprior to any stimulus plan. Russian stimulus amounts to a 25% increase in Federal spending

However, Russian government response to crisis is to focus on supportingcompanies, potentially resulting in the delayof infrastructure investment

Transport Ministry announced on January 22 the establishment of theState Transport Leasing Company with authorized capital of RUR 40buillion ($1.2 bn) for the purpose of leasing approximately 10,000 units of

construction equipment from Russian manufacturers.

Federal Capital Budget for Transportation Infrastructure

1.314

13.484

0

2

4

6

8

10

12

14

16

2006-2010 2010-2015

RUR(

billions)

2,008 2,0312,313

2,210

2,572

3,987 3,993

3,3813,142 3,166

2,624 2,6952,984

2003 2004 2005 2006 2007

CONSTRUCTION AND RECONSTRUCTION OF AUTOMOBILE ROADS 2003-2015, KM

CAGR 6.4%

2008plan*

2009plan

2010plan

2011plan

2012plan

2013plan

2014plan

2015plan

*2008-2009 Targets of the Automobile roads 2006-2010; 2010-2015Targets of the Development of the Transportation System of Russia (2010-2015)

Updating of Transportation System of Russia (2002-2010) Development of the Transportation System of Russia (2010-2015)

Russia/CIS Infrastructure


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Investment Fund spending (main source of infrastructure project

financing)is slashed by almost half in 2009 from approx.$3.6 B to $2 B

Federal projects of national importance are cut from 21 to 15, which willbe also financed from budget funds (approx. $11.3 B)

Despite Russias cut-backs, several major projects will continue:

The Western High-Speed Diameter road in St.-Petersburg The development of Lower Angara region

The building of transport infrastructure in the Chita region (Baikal region)

Oil refineries in Nizhnekamsk (Volga region)

Oil terminal in Ust-Luga (NW region)

Others

Event-driven projects in the region are also likely to continue, includinginvestments supporting the APEC Summit in 2012, the World UniversityGames in 2013, and the Sochi Olympics in 2014

Russia/ CIS Infrastructure

Source: RosBusiness Consulting


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Contribution to the development of the Asian Pacific Economic

Conference in 2012 in the city of Vladivostok.

Location: Russia, Vladivostok, Russky IslandThe governance of Russian State institute of urban planning and investment developmentGiprogor (Russia). The total program includes:

Conference Center, International Press Center, Theatre and Opera House, Hotels, WorldTrade Center, Exhibition Center,Oceanografic Museum, Medical Center, Sports Facilities,Shopping Mall and Parking Facilities, the extension and reconstruction of new highways, theairport, and harbors.

APEC Summit 2012 (Vladivostok)

Russia/CIS Example

Source:http://www.royalhaskoning.ru/en-us/projects/Pages/VladivostokSD.aspx


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Russia/CIS Example

Estimated budget: USD 8.6 B (Start 2009)

World University Games 2013 (Kazan)


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Russia/CIS Example

48 sport facilities to be built

(in total about 400,000sqm)

5 new metro stations

Reconstruction of Kazan ring road and airport

World University Games 2013 (Kazan)


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Russia/ CIS Example

Estimated Budget: USD 14 B (Start in 2009)

Olympic Stadium, (40 thousand seats) Curling Ice Arena (3 thousand seats) Olympic Skating Center (figure skating 12 thousand seats). Olympic Oval - Speed Skating Centre (8 thousand seats) Bolshoi Ice Palace Ice Hockey, 12 thousand seats Ice Arena - Ice Hockey (7 thousand seats)

Olympic Games 2014 (Sochi)


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Russia/ CIS Example

Sport facilities 20 units

Roads 147,5 km

Motorway bridges and road interchanges 12 units.

Railway roads 88,6 km

Engineering infrastructure 55 units

Communication Facilities 10 units Heat generating stations 2 units.

Chain of powerplants 1 units.

Substations 11 units.

Substations to be refurbished 7 units.

High voltage power lines 550 km Environmental protection facilities 6 units

Hospitals 2 units

Hotels 33 units

Offices 1 units

Olympic Games 2014 (Sochi)


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Terex and Russia Infrastructure


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Latin America Situation

MEXICO

GUATEMALA

HONDURAS

EL SALVADORNICARAGUA

PANAMA

CUBA

THE REPUBLIC OFPUERTO RICO

COLOMBIA

VENEZUELA

BRAZIL

PERU

ECUADOR

GUYANA

SURINAME

FRENCH GUIANA

BOLIVIA

PARAGUAY

CHILE

ARGENTINA

URUGUAY

FALKLAND ISLANDS

TRINIDAD AND TOBAGO

COSTA RICA

POPULATION BYREGION (08): 570 M


Brazil(33%)

Central Am./N. South

Amer. (27%)

SouthernCone(21%)

Mexico

(19%)

Brazil(37%)Central Am./

N. SouthAmer. (20%)

Southern

Cone(18%)

Mexico(25%)

9 % of world population and 7% of global GDP as of 2008 Brazil and Mexico represent over 60% of regional GDP Recent political and financial stability in these and other countries

has enabled strong growth in the region High commodity prices and successful development of the

regions mineral and oil reserve also contributed


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Brazil Infrastructure

Infrastructure

Credit and financingpromotion

Enhancing theinvestment climate

Tax exemptions /

improvement of the tax

system

Long-term fiscal

measures

A Five-Pillar Programme

PACGrowth Acceleration Project

* USD Exchange rate asof March18, 2009

Until 2010 After 2010

US$ 221 BTotal investment

PAC investments represent1.2% of Brazils GDP

*Theoriginal budgetuntil2010 wasUS$ 221,9 bi,but was recentlyupdated * Source:www.brasil.gov.br/pac

Infrastructure

Credit and financingpromotion

Enhancing theinvestment climate

Tax exemptions /

improvement of the tax

system

Long-term fiscal

measures

A Five-Pillar Programme

PACGrowth Acceleration Project

* USD Exchange rate asof March18, 2009

Until 2010

US$ 285 B*After 2010Total investment

US$ 506 B

PAC investments represent1.2% of Brazils GDP

12%

22%66%

Logistics

Energy Social and Urban

12%

22%66%

Logistics

US$ 58.2 B

Energy

US$ 334.4 B

Social and Urban

US$ 113.1 B

*Theoriginal budgetuntil2010 wasUS$ 221,9 bi,but was recentlyupdated * Source:www.brasil.gov.br/pac


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Brazil Examples

Example of Major Projects by Value

Compliance with the 2010 deadlineremains a question mark.

20%

11%

of the original budgethas been invested

of the projectsare concluded

* USD Exchange rate as of March 18, 2009

Source: www.brasil.gov.br/pacExame Magazine

Brazil PAC Projects

Logistics

High speed train US$ 10.4 B

Ferrovia Norte Sul / Trecho Sul US$ 2.2 B

Ferrovia Oeste / Leste US$ 2.2 B

Ferrovia Transnordestina US$ 1.9 B

Metro So Paulo / Linha 4 US$ 1.4 B

Energy

Complexo Petroqumico Integrado US$ 6.7 B

Santo Antnio Hydroelectric plant US$ 4 B

Refinaria General Abreu e Lima US$ 3.8 B

Jirau Hydroelectric plant US$ 4 B

Angra 3 Nuclear Plant US$ 3 B
http://www.brasil.gov.br/pachttp://www.brasil.gov.br/pac


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Mexico Infrastructure

National Infrastructure Program

Plan to improve the coverage,quality and competitiveness ofMexicos infrastructure

2007-2012Total investment

US$ 226 B*

Building / modernization

17,598 km of highways

1,418 km of railways

Build 3 new airports and

expand another 31 Build 5 new ports and expand

or modernize 22 more

Key Facts

* Source:www.infraestructura.gob.mx- Base scenario.

Mexico Infrastructure
http://www.infraestructura.gob.mx/http://www.infraestructura.gob.mx/http://www.infraestructura.gob.mx/http://www.infraestructura.gob.mx/


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Highways Electricity

AirportsWater and Sewer

* Source:www.infraestructura.gob.mx.

Mexico Examples
http://www.infraestructura.gob.mx/http://www.infraestructura.gob.mx/http://www.infraestructura.gob.mx/http://www.infraestructura.gob.mx/


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PANAMA CITY, Panama March 3, 2009 -On track and on time, the Panama CanalAuthority (ACP) continues to press aheadwith the start of the bid process for themost important project under its ExpansionProgram - the construction of the new set

of locks.Today, the ACP received proposals fromthree consortia competing to design andbuild the new, modern and state-of-the-artlocks on the Pacific and Atlantic sides ofthe Panama Canal.

The three consortia that submitted bidsincluded: Consorcio C.A.N.A.L;Consortium Bechtel, Taisei, MitsubishiCorporation and Consorcio Grupo Unidospor el Canal.

MULTIMODAL TRANSPORTATION SYSTEM

1

GATUNLAKE

GATUNLAKE

CANAL

RAILROAD /FIBER OPTIC

TRANSISTHMIAN HIGHWAY

PANAMERICAN HIGHWAY

CENTENARY HIGHWAY

PORTS

AIRPORTS

PacificPacific

AtlanticAtlantic

PanamaCity

PanamaCity

City ofColnCity ofColn

Approx70Km(43m

iles)

Approx70Km(43m

iles)

Panama Canal Expansion

* Source: Panama Canal Authority

Latin America Example


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Terex and Latin America Infrastructure


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Other Examples: Middle East

By Nadia Saleem, Staff Reporter, Gulfnews.com(Published: February 19, 2009, 23:10)

Dubai: The Middle East aviation industry will see losses doublethis year, yet a combined investment of $60 billion (Dh220billion) in airport development is underway in the region, Africaand the Asian subcontinent.

The region is undergoing unprecedented airport expansion tocope with rising passenger traffic, which increased seven per cent

last year despite the economic downturn, after 18.1 per centgrowth in 2007, according to the Middle East Economic Digest.

The Middle East, Africa and South Asia are all continuingsignificant airport investment.

The UAE's heaviest investment is in the new Al MaktoumInternational at Jebel Ali.

Worth $8 billion, it is set to become the largest airport in the world

with an annual capacity of 120 million passengers.It is followed by $11.3 billion upgrade of King Abdul AzizInternational Airport in Saudi Arabia, as well as other airports inthe country.

The development of Abu Dhabi International Airport comes nextat $6.8 billion followed by Qatars $5.5 billion New Doha Airport

Dubai

Qatar

Abu DhabiSources: gulfnews.com, aeconline.com (Abu Dhabi photo), arinc.com (Qatar photo), daylife.com (Dubai photo)

Aviation losses pose no threat to airport expansion


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$2 billion coal-fired power plant in Central Java

$700 million railway connecting Soekarno-Hatta airportto the capital JakartaThe Japan International Cooperation Agency are set to sign a dealthat would set aside $491 million in low-interest loans for the project.

The deal represents part of JICAs 120-billion-yen commitment tofinance 85 percent of the transportation system, which the municipalgovernment hopes would help solve the capitals traffic problems.Tenders for the project may not begin until the end of 2010, withconstruction not scheduled to start until early 2011. The system itselfis expected to be operational by early 2016.

Central Java

Jakarta

Bali

$543 million deal with Korean Consortium will Double PortSize and Create 5-Star Accommodation Complex at Benoa

To fulfill the electrical energy demand on the Java Island PLN plans to

build, own and operate PLTU 1 Jawa Tengah 2x(300-400MW) plant tosupply electricity for industrial and public use. The plant will consist oftwo(2) units having gross output of 300-400MW each. The plant willgenerate using coal which will come from Kalimantan and Sumatra.

The development of Benoa would provide a convenient cruise terminal witha location just minutes from Bali's international airport the Island's maintourism areas.Plans for the development of the Benoa port has reportedly commencedwith the signing of a cooperation agreement with a consortium of 6 SouthKorean companies. Under the terms of that agreement the Korean partnerswill provide US$326 million for the development of port infrastructure andanother US$217 million for the construction of 5-star accommodation and atraffic flyover.

Other Examples: Indonesia


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Other Examples: Angola

Due to the extensive warfare, most of Angola'sinfrastructure has been destroyed. There are19,156 kilometers (11,903.5 miles) of pavedroads and a total of 2,952 kilometers (1,834.4

miles) of rail tracks. Over 60% of them are notin working condition.

There are 32 airports with paved runways and217 with unpaved runways. Angolasgovernment appears committed to addressingthis and other infrastructural issues

Angola is one of the fastest growing

economies in the world due to its richmineral resources and rising oil production.The governments focus is on nationalreconstruction: it has identified investmentopportunities in the development ofhydroelectric power, water distribution,sanitation and transportation which could

improve the rural-urban divide in Angola


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Other Examples: South Africa

The South African Government is committed to

make the 2010 FIFA World Cup the best World

Cup ever. Beside commitments that where

made to FIFA, the government is also using the

hosting of the World Cup to contribute to the

growth and development of the country.

National governments $2,8-billion direct

investment in infrastructure in the World Cup is

part of a much larger spending programbetween 2006 and 2010. During that time,

government will be investing more than $67

billion in the countrys infrastructure from rail

freight services and energy production, to

communications, airports and ports of entry.

The World Cup is also stimulating developmentin neighboring countries. For instance,

Mozambique will spend $51 million on the

rehabilitation of a railway line. Further more

they are investing $600million in new hotels,

casinos and other leisure facilities.

f f


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Terex and Rest of World Infrastructure

K M


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Key Messages

Pace of economic development is directly impacted by the

on-going financial crisis but long-term, underlying driversremain intact

Infrastructure investment has been slowed in places but, on-balance, continues despite (if not because of) the economic

crisis

Infrastructure opportunities are global but, near term, will bestrongest in countries who have the fiscal capacity and thepolicy mindset to fund aggressive stimulus

Global infrastructure is an important opportunity forcompanys like Terex who have a portfolio of capabilitiesand the ability to execute globally


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Infra 2009 - Apresentação Steve Filipov - Terex Brazil Infrastructure Conference

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