Annoucement to the Market – Metro System PPP – Salvador and Lauro de Freitas

Annoucement to the Market – Metro System PPP – Salvador and Lauro de Freitas

Metro System PPP – Salvador and Lauro de Freitas

São Paulo, August 23, 2013. – CCR S.A. (“CCR”) (BM&FBovespa:CCRO3; Bloomberg:CCRO3BZ; Reuters:CCRO3.SA), in compliance with CVM Instruction 358, hereby informs its shareholders and the market in general that, on this date, the Special Bid Commission of Bid Notice 01/2013 (“Bid”), promoted by the Bahia State Government via the Department of Urban Development — SEDUR, declared as winner the proposal submitted by Companhia de Participações em Concessões (“CPC”) for the execution, under the sponsored concession type of Public Private Partnership, of construction works and systems, supply of rolling stock, operation, maintenance and expansion of the Salvador and Lauro de Freitas Subway System (“CONCESSION”), awaiting the CONCESSION’s award.

The CONCESSION will be valid for thirty (30) years as of the date of signature of the respective Concession Agreement (“AGREEMENT”), with partial operations scheduled to begin in up to nine (9) months as of the signature date of the AGREEMENT, with conclusion of the works and full operations.

The conquering of the CONCESSION of the Salvador and Lauro de Freitas Subway System represents another important step taken by CCR in line with its strategic planning, which aims to grow with sustainability, adding value to shareholders and contributing to the economic, social and environmental development of Brazil.

Message from the CEO

Renato Alves Vale: “We are pleased to announce that CCR won the bidding process for the implementation and operation of Salvador and Lauro de Freitas metro system. This achievement allows CCR to expand its operations in the Northeast region of Brazil, fostering the sustainable development through the improvement of transport infrastructure. The Salvador’s metro system is CCR’s one more important business in the passenger transport sector.”

Purpose of the Concession

The project will be performed in a public-private partnership (PPP), as a sponsored concession, for the implementation and operations of Salvador and Lauro de Freitas Metro System, including the construction or adaptation, maintenance and operations of Passenger Transfer Terminals.

  • Line 1 (Lapa – Pirajá): 12.2 km – 8 Stations – 4 Transfer Terminals
    • Stretch 1: Lapa Station – Acesso Norte Station -> Concluded (5.6 km length)
    • Stretch 2: North Access Station – Pirajá -> 6.6 km length
  • Line 2 (Bonocô – Airport): 21.2 km length – 11 Stations – 4 Transfer Terminals
Stretch Line Begining of Operation
(number of months after the begining of the contract)
Existing Stretch Line 1 Up to 9 months (Assisted Operation)
Lapa – Retiro Line 1 Up to 11 months
Lapa – Pirajá Line 1 Up to 15 months
Lapa – Rodoviária Line 1 and Line 2 Up to 24 months
Lapa – Imbuí Line 1 and Line 2 Up to 30 months
Lapa – Pituaçu Line 1 and Line 2 Up to 30 months
Lapa – Mussurunga Line 1 and Line 2 Up to 36 months
Lapa – Aeroporto Line 1 and Line 2 Up to 42 months
Project Information
Concession Term 30 years: 42 months of civil works and begining of operation until the 9th month
Total Extension 33.4 km
Lines 2 Lines
Stations 19
Tariff Remuneration (per transported passenger) R$ 2.10
Readjustment 85% IPCA / 15% Electric Power Index
42nd Month Referential Daily Demanda (pax/working day) 499,175

Source: Government of Bahia State

The Concessionaire’s remuneration will derive from tariff revenue, which is the product obtained from multiplying the number of passengers by the remuneration tariff established in the bid notice, and from the annual payment of monetary consideration totaling R$127.6 million.

The private sector will be responsible for the implementation works, acquisition of trains and systems, operations and maintenance.

Investment
Total Investment R$ 3.6 Billion
Capital Contribution from Government
OGU PAC Mobilidade Grandes Cidades R$ 1,0 Billion
Financing PAC Mobilidade Grandes Cidades R$ 1.0 Billion
Balance of the Agreement with the Federal Government and CTS – Line 1 R$ 283 Million

Source: Government of Bahia State

Conference Call:

In Portuguese: In English:
Wednesday, August 28, 2013 Wednesday, August 28, 2013
10:00 a.m. São Paulo / 09:00 a.m. New York 11:00 a.m. São Paulo / 10:00 a.m. New York
Telephone: (11) 4688-6361 Brazil: (11) 4688-6361 Code: CCR
Other Countries: (+1) 786-924-6977
U.S.: (+1) 855-281-6021
England: (+44) 203-514-0445
Code: CCR Code: CCR
Replay: (11) 4688-6312 Replay: (11) 4688-6312
Code: 9167291# Code: 5357163#
Webcast: www.grupoccr.com.br/investidores Webcast: www.grupoccr.com.br/investidores