045 colombian economy foreign investment report

8/8/2019 045 Colombian Economy Foreign Investment Report

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May 2010May 2010


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Where are we coming from?What are we doing?

Where are we going next?

AGENDA


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SOME FACTS THAT YOU MAYBE DIDN

TKNOW

SOME FACTS THAT YOU MAYBE DIDN

TKNOW


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First in Emeralds Production

Variety of Palms (244 Species) Production of Bamboo

The Biggest Coal Open Mine of theWorld

The Most Important Gold Museum Variety of Orchids (3500 Species)

Exotic Birds (1815 Species) Frog Varieties (764 Species)

Quality of Coffee Arabian Coffee exports

Exporter of Coal in Latin-American Biodiversity per Km2

Second in Banana Production

Varity of Butterfly (300 Families and14.000 Species)

Flower Production Blackberry Production

Exporter of Flowers

Colombia ranks


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OUTSTANDING PERFORMANCE OF THECOLOMBIAN ECONOMY

OUTSTANDING PERFORMANCE OF THECOLOMBIAN ECONOMY


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Source: DANE (National Accounts), DNP, EIU (Market Indicators & Forecasts)Note: * EIU forecast to the World

Note: Last update March 25rd

, 2010 6

3,1%2,2% 2,5%

4,6% 4,7%5,7%

6,8%7,5%

2,5%

0,4%

2,5%

-3%-2%

-1%0%1%2%3%4%

5%6%7%8%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009* 2010*

Colombia World

COLOMBIA AND WORLD GDP GROWTH (%)

2000 2010


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FDI IN COLOMBIA IS THREE TIMES GREATER TH

SEVEN YEARS AGOFDI, 2000 2010

US$ Millions

Variation 2008-2009: -32%*EIU ForecastSource: Banco de la Repblica

2.134

10.25210.600

7.2018.500

0

2.000

4.000

6.000

8.000

10.000

12.000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010*


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88

11.975

37.62632.852

35.282

0

5.000

10.000

15.000

20.000

25.00030.000

35.000

40.000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010*

Variation 2008-2009: -12,7%*EIU ForecastSource: DANE (Departamento Nacional de Estadsticas)

EXPORTS TRIPLED

Exports, 2000 2010US$ Millions


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9

Variation 2008-2009: 17,2%Note: Includes cruiseSource: DAS (Departamento Administrativo de Seguridad) 9

INTERNATIONAL VISITORS IN COLOMBIA DOUB

661,1

1.451,0

1.700,5

0

400

800

1.200

1.600

2.000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Tourism, 2000 2009Thousand Visitors


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DURING 2009, COLOMBIA WAS ONE OF THE BEST

ECONOMIC PERFORMERS IN THE REGION

10

Exports FDI

Source: Official sources of each country, World Tourism Organization,LatinFocus and EIUExport: Variations in FOB between 2008 and 2009FDI: Variation FDI flows between 2008 and 2009Tourism: Variation number of foreign visitors between 2008 and 2009 (do notinclude cruise)*Variation between January-August 2008 and Jan-August 2009

Tourism-35,9%

-22,7%

-21,2%

-20,6%

-20,2%

-16,7%

-12,7%

Venezuela

Brazil

Mexico

Argentina

Chile

Peru

Colombia

-17,5%

-13,1%

-11,3%

-6,7%

3,9%

5,8%

10,7%

Venezuela*

Argentina*

Chile

Mxico*

Per

Brasil

Colombia

-990%

-51%

-50%

-42%

-32%

-31%

-16%

Venezuela

Mexico

Argentina

Brasil

Colombia

Peru

Chile


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VIOLENCE LEVELS ARE DECREASINGSURPRISINGLY

VIOLENCE LEVELS ARE DECREASINGSURPRISINGLY


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HOMICIDE RATE PER 100 THOUSAND INHABITAN

REDUCED TO A HALF

Source: Ministry of Defense

12

62,7 65,8

44,6

33,035,4

15

25

35

45

55

65

75

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Homicides per 100.000Inhabitants, 2000-2009


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THE BEST THING ABOUT COLOMBIA IS ITHUMAN CAPITAL

THE BEST THING ABOUT COLOMBIA IS ITHUMAN CAPITAL


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0,4%0,8%

1,3%1,4%

1,5%2,7%

3,0%

0,0% 0,5% 1,0% 1,5% 2,0% 2,5% 3,0% 3,5%

MexicoPeru

BrazilChile

ArgentinaVenezuelaColombia

Labor Force Growth, 2007-2008(Percentage Variation)

2,673,92

4,584,6

5,045,49

5,66

0 1 2 3 4 5 6

VenezuelaPeru

BrazilMexico

ArgentinaColombia

ChileAvailability of Qualified Labor, 2009

WE HAVE THE FASTEST GROWING LABOR FORCE IN LATIN AMER

Source: IMD World Competitiveness, 2009. Ranking among 57 countries.

WE HAVE THE SECOND MOST QUALIFIED LABOR AVAILABLE IN REGION

WorldRanking Country

29 Chile32 Colombia37 Argentina45 Mexico46 Brazil55 Peru57 Venezuela

Rating


5 Colombia8 Venezuela

25 Argentina27 Chile29 Brazil38 Peru

48 Mexico


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4,924,995,04

5,325,81

5,977,26

0 1 2 3 4 5 6 7 8

VenezuelaPeru

MexicoBrazil

ArgentinaColombia

Chile

Qualified Engineers, 2009

ACCORDING TO THE IMD, COLOMBIA HAS THE SECOND BESTENGINEERS IN LATIN AMERICA


7 Chile30 Colombia32 Argentina41 Brazil43 Mexico44 Peru

48 Venezuela

Source: IMD World Competitiveness, 2009. Ranking among 57 countries. World Economic Forum, Executive Opinion Survey 2008, 2009

COLOMBIA IS THE COUNTRY WITH THE BEST QUALITY EDUCATIOSCIENCE AND MATHEMATICS IN THE REGION


39 Colombia44 Argentina48 Venezuela49 Chile51 Brazil53 Mexico54 Peru

2,232,58

2,712,912,95

3,353,56

0 1 2 3 4

PeruMexico

BrazilChile

VenezuelaArgentinaColombia

High Quality Education in Science and Mathematics inLatin America, 2009

Rating


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ACCORDING TO THE IMD, COLOMBIA'S LABORREGULATIONS HINDER BUSINESS ACTIVITIES IN L

AMERICA THE LEAST

Source: IMD World Competitiveness, 2009. Ranking among 57 countries.


31 Colombia

36 Mexico

42 Chile

45 Brazil

47 Peru

56 Argentina

57 Venezuela1,17

2,81

3,47

3,63

3,8

4

4,27

0 1 2 3 4 5

Venezuela

Argentina

Peru

Brazil

Chile

Mexico

Colombia

Hindering of Business Activities by LaborRegulations in Latin America, 2009

Rating


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MAJOR ADVANCES IN EDUCATIONMAJOR ADVANCES IN EDUCATION


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COLOMBIA OFFERS A QUALITY BASIC AND SECONDARY EDUCATIONCOLOMBIA OFFERS A QUALITY BASIC AND SECONDARY EDUCATIONITS COVERAGE IS ON THE RISEITS COVERAGE IS ON THE RISE

0,0%

10,0%20,0%

30,0%

40,0%

300.000

600.000900.000

1.200.000

1.500.000

2002 2003 2004 2005 2006 2007 2008

Higher Education Coverage, 2002-2008

Students Enrolled Coverage Rate

OVER THE LAST 7 YEARS, THE COVERAGE OF HIGHER EDUCATION HAS57%, WHILE THE NUMBER OF STUDENTS ENROLLED HAS INCREASED B

80%82%84%86%88%90%92%

9.000.000

9.500.000

10.000.000

10.500.00011.000.000

11.500.000

2002 2003 2004 2005 2006 2007 2008*

Basic and Secondary Education Coverage, 2002-2008

Total Enrollment Coverage Rate

Note: Coverage indicates that the percentage of children that are supposed to be at a certain level are actually at that level. Basic and secondary education are primary andhigh school, while higher education is the university level.

* Data forecasted based on the enrollment report to June 30, 2008. Preliminary data subject to modificationSource: Ministry of Education


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OUR CONNECTING FLIGHTS ARE CONSTANTON THE RISE

OUR CONNECTING FLIGHTS ARE CONSTANTON THE RISE


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VenezuelaVenezuelaSurinamSurinamEcuadorEcuador

PeruPeruBoliviaBoliviaBrazilBrazilChileChile

ArgentinaArgentinaUruguayUruguay

UnitedUnitedKingdomKingdomPortugalPortugal

SpainSpainFranceFrance

BelgiumBelgiumHollandHolland

SwitzerlandSwitzerlandLuxemburgLuxemburgGermanyGermany

ItalyItaly

Arab EmiratesArab EmiratesSingaporeSingapore

South KoreaSouth Korea

United StatesUnited StatesMexicoMexico

Costa RicaCosta RicaPanamaPanama

CubaCubaDominican RepublicDominican Republic

Dutch AntillesDutch AntillesFrench AntillesFrench Antilles

ArubaAruba

Signed Agreements and Memorandums of Understanding (31)Agreement under Negotiation (1)

Source: Ministry of Commerce, Industry and Tourism

ChinaChina

IMPROVING CONNECTIVITY: MORE AIR TRAVELIMPROVING CONNECTIVITY: MORE AIR TRAVELAGREEMENTSAGREEMENTS

Since the year 2000, international flights toColombia have increased by 120%, totaling 5600

flights per month on average in 2008.


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A COUNTRY THAT PROTECTS THEENVIRONMENTA COUNTRY THAT PROTECTS THEENVIRONMENT


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Source: Environmental Performance Index 2010, Yale University. IMD World Competitiveness, 2009, Ranking among 57 countries

COLOMBIA HAS THE ENVIRONMENTAL LAWS THAT LEAST AFFCOLOMBIA HAS THE ENVIRONMENTAL LAWS THAT LEAST AFFCOMPANY COMPETITIVENESSCOMPANY COMPETITIVENESS


31 Colombia34 Mexico42 Peru43 Venezuela50 Argentina53 Chile54 Brazil

COLOMBIA IS THE TENTH COUNTRY IN THE WORLD AND THE FIRTHE REGION IN PROTECTING THE ENVIRONMENT

COLOMBIA IS THE TENTH COUNTRY IN THE WORLD AND THE FIRTHE REGION IN PROTECTING THE ENVIRONMENT

4,784,86

5,155,50

5,635,775,87

00 11 22 33 44 55 66

BrazilChile

ArgentinaVenezuela

PeruMexicoColombia

Hindering of Business Activities by Environmental Laws


10 Colombia16 Chile31 Peru43 Mexico62 Brasil64 Venezuela

70 Argentina

6162,963,4

67,369,3

73,376,8

0 20 40 60 80 100

ArgentinaVenezuela

BrazilMexico

PeruChile

ColombiaEnvironmental Performance Index, 2010

Rating

Rating


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Where are we coming from?

What are we doing?



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FROM PREFERENTIAL ACCESS TO 233 MILLIONCONSUMERS IN 2002 TO ACCESS TO 1.46 BILLION

CONSUMERS IN 2010

25

ACN

2002

2010


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IN 2010, COLOMBIA WILL BE NEGOTIATING 19 INTERNATIONINVESTMENT AGREEMENTS (IIA) WITH 39 COUNTRIES AND

DOUBLE TAXATION AGREEMENTS (DTA) WITH 22 COUNTRI

IIA (13 Countries)In Force:Peru (2003), Spain (2007), Switzerland (2009).Signed:Peru (deepening), China (2008), India (2009), China, Belgiumand Luxembourg (2009) and U.K. (2009).In Negotiation: Germany, France, South Korea (not sign yet), Kuwait,Japan.

DTA (16 Countries)In Force:Spain (2008), Peru-Ecuador-Bolivia (2004) and Chile (2009).Signed: Switzerland (2007), Canada (2008) and Mexico (2009).In Negotiation: Germany, Netherlands, India, USA, Belgium, CzechRepublic, Korea, Japan, France and Venezuela

2010


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COLOMBIA, AN OPEN COUNTRY TO THE WORLD

2010

Note: Highlighted countries are those in which Colombia has already an agreement in force, signed, under negotiation, or planned for the

near future, concerning Free Trade, double taxation and Investment.


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Source: Top Reformers Report, World Bank*Positive figures show improvements in business environment

-50-21

-17-16-15-13-12

-8-8

49

42

-60 -40 -20 0 20 40 60

UruguayChile

ArgentinaCosta Rica

EcuadorVenezuelaParaguay

BrazilMexico

Panama

PeruColombia

WorldWorldRankingRanking

CountryCountry(2010)(2010)

37 Colombia

4949 ChileChile

5151 MexicoMexico

5656 PeruPeru

7777 PanamaPanama

114114 UruguayUruguay

118118 ArgentinaArgentina

121121 Costa RicaCosta Rica

124124 ParaguayParaguay

129129 BrazilBrazil

138138 EcuadorEcuador

177177 VenezuelaVenezuela

COLOMBIA: THE MOST BUSINESS FRIENDLYCOUNTRY IN LATIN AMERICA, ACCORDING TO T

WORLD BANK (2010)Doing Business Ranking Variation, 2007-2010*

(Change in positions)


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Ranking made up by 183 countries

Source: Doing Business, 2010 (World Banck)

ACCORDING TO THE WORLD BANK ON DOINGACCORDING TO THE WORLD BANK ON DOINGBUSINESS, 2010" COLOMBIA IS THE FIRST COUNTBUSINESS, 2010" COLOMBIA IS THE FIRST COUNTIN LATIN AMERICA THAT BEST PROTECTS INVESTIN LATIN AMERICA THAT BEST PROTECTS INVEST

2,3

4,7

4,7

5,3

6,0

6,06,7

8,3

0 2 4 6 8 10

Venezuela

Argentina

Panama

Brazil

Chile

Mexico

Peru

Colombia WorldRanking

Country(2010)

5 Colombia20 Peru

41 Chile

41 Mexico

73 Brazil

109 Argentina109 Panama

178 Venezuela

Strength of Investor Protection, 2010

Rating


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15% income tax rate.

No import duties.

VAT exemption for goods sold from Colombia to FTZBenefit from international trade agreements. (Except

Per)

Allow sales to the local market.

THE MOST COMPETITIVE FTZS IN LATIN AMERICA: 15INCOME TAX AND ALLOWS SALES TO THE LOCAL MAR

Free Trade Zones

Single-Company (SCFTZ)

Permanent (PFTZ)


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76 FREE TRADE ZONES

Free Trade Zone Approved

Investment commitments

Total Investment (USDMillion) 5.880

Direct Jobs 44.475Indirects Jobs 93.016

31

Source: Ministry of Trade, Industry and Tourism. The investment amounts required to obtain the Free Trade Zone status are calculatedin Minimum Monthly Legal Wages (M.M.L.W). This information is presented in dollars using a US$1 = COP 2,000 exchange rate. For2010, the M.M.L.W is COP 515.000. The M.M.L.W, as well as the exchange rate are subject to variations.

Investment executed so far

Total Investment (USD

Million)1.985

Direct Jobs 5.017

Indirects Jobs 21.354

Single - Company Free TradeZonePermanent Free Trade Zone


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Requirements for industrial firms of goods and services

Total Assets(US$)

Investment Ammount(US$ Million)

Minimum direct jobs generation

0 129,000 0 0

129,008 1.28 Million 0 20

1.28 7.72 Million 1.28 30

More than 7.72 Million 2.96 50

Back

Source: Ministry of Trade, Industry and Tourism. The investment amounts required to obtain the Free Trade Zone status arecalculated in Minimum Monthly Legal Wages (M.M.L.W). This information is presented in dollars using a US$1 = COP 2,000exchange rate. For 2009, the M.M.L.W is COP 515.000. The M.M.L.W, as well as the exchange rate are subject to variations.

PERMANENT FREE TRADE ZONES (PFTZ)Several firms installed in a FTZ already established


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(1) Each additional investment of US$ 5.9 million reduces 15 jobs of requirement. In any case, there must be generated atleast 50 jobs.

(2) For health services companies, 50% of jobs may be vinculated, not direct.(3) 50 indirect jobs can replace 20 direct jobs.

FTZ type Investment (US$Million) AND direct jobs

Goods (1) 38.62 150

Services (2)

2.57 11.84500

11.84 23.69 350

23.69 or more 150

Services Ports (3) 38.62 20

Exchange rate: US$ 1 = COP 2,000. Minimum Monthly Legal Wages (M.M.L.W.) for 2010 is COP 515,000.M.M.L.W. and Exchange Rate are subject to changes.

Back

SCFTZSCFTZ AgribusinessAgribusiness

SINGLE-COMPANY FREE TRADE ZONES (SCFTZ)A single firm can get all FTZ advantages by installing itself in

any place in Colombia


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FTZ type Investment (US$Million) Or related jobs to the production

Agribusiness 19,31 500

Subsectors which are eligible for FTZ status under agribusiness requirements

Biofuels

Meat and Fish

Oil and grease products from vegetables and animals

Dairy products

Legume and fruits, prepared or preserved, tea, soup, vinegar, sauces and yeast*

Coffee

* According to the national statistics this products classification is called products not classified previously.

Exchange rate: US$ 1 = COP 2,000. Minimum Monthly Legal Wages (M.M.L.W.) for 2009 is COP 515,000.M.M.L.W. and Exchange Rate are subject to changes.

Back

SINGLE-COMPANY FREE TRADE ZONES (SCFTZA single firm can get all FTZ advantages by installing

itself in any place in Colombia


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Investments over US$1.84 million* (150.000 T.U)**

Investor pays 1% premium based on the amount of theinvestment. 0.5% in unproductive periods.

Period

Conditions

From 3 to 20 years maximum.

Signed

contracts

62 legal stability contracts approved, 48 legal stability

contracts signed

35

*The investment requirement is calculated with an exchange rate of COP $ 2000 = 1 USD. It is responsibility of the investor to calculate the investment requirement at the moment of submitting the application for theLegal Stability Agreement.** One Tax Unit equivalent COP$ 24.555 or US$ 12,2

COLOMBIA OFFERS LEGAL STABILITY CONTRACTS TGUARANTEE INVESTMENT PROJECTS


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Exemption for 30 years for companies that build or restylehotels before 2018.TourismTourism

Exemption for 20 years starting from 2003.EcoEco--tourismtourism Exemption for 10 years after the start of production in crops

planted between 2003 and 2013.Late yield cropsLate yield crops

Permanent exemption for investment in new forestplantations, sawmilling and timber plantations.ForestryForestry

Publishing of books, magazines, booklets or collections of scientific or cultural characteristics are exempt until 2013.EditorialEditorial

Exemption for 10 years for products manufactured in

Colombia with high scientific and technological researchcontent, starting from 2003.c

New medicinalNew medicinalproducts and softwareproducts and software

Exemption for 15 years for sale (by the generators) of electricity based on wind resources, biomass or agriculturalwaste.

Renewable energyRenewable energy

Exemption for 15 years starting from 2003 to provideservices in slabs and boats with net weight below 25 tons.River transportRiver transport

OTHER INCENTIVES BY SECTOR: INCOME TAX

EXEMPTION FOR UP TO 20 YEARS


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Where are we coming from?

What are we doing?



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38

Encourage and improve production of competitive products & services

ESTABLISHED SECTORES

Promote development ofNEW & EMERGING

SECTORS

POTENTIAL WORLD CLASS SECTORSPRODUCTIVE TRANSFORMATION PROGRAM

"GOVERNMENT - PRIVATE SECTOR"


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BPO&O


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Call center agent cost: USD 441/monthCall center agent cost: USD 441/monthCompetitiveCompetitive

Operational CostOperational Cost

27,000 biz grads and 13,000 engineers per year.27,000 biz grads and 13,000 engineers per year. Seven cities > 500,000 inhabitants.Seven cities > 500,000 inhabitants. Neutral Spanish accentNeutral Spanish accent

Human ResourceHuman Resource

USD 1 billion market, growing 42% in the lastUSD 1 billion market, growing 42% in the lastthree years.three years.High growing marketHigh growing market

Reliable & redundant internet infrastructure: 5Reliable & redundant internet infrastructure: 5

submarine cables 212.5submarine cables 212.5 GbpsGbps capacity.capacity.InfrastructureInfrastructure

Free Trade Zone regime: 50% off Income TaxFree Trade Zone regime: 50% off Income Taxand sales to the local market.and sales to the local market.Business EnvironmentBusiness Environment

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IT SERVICE &SOFTWARE


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The lowest labor cost in LATAM: up to 284% forSystem Engineering careers.

CompetitiveCompetitiveOperational CostOperational Cost

13,000 engineering and technical graduatesfrom IT-related fields per year.

Human ResourceHuman Resource

A growing market of US$ 270 billion: almost12,5% in 3 years.

Datamonitor considers Colombia to be a Tier 2country in L.A.

High growing marketHigh growing market

US$ 4 billion expected investment intelecommunications for 2010.

Computer prices under US$1,000 without VATInfrastructureInfrastructure

National Government programs to enhancecompetitiveness and development in thisspecific industry.

Business EnvironmentBusiness Environment

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HEALTH TOURISM


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Eye laser surgery Innovation

Pioneer Program in reproduction immunology1st pacemaker of the world

Innovation

First Latin American country to do business, according to DoingBusiness 2010 ranking - World Bank

4 consecutive years as one of the top 10 reformers in the world

BusinessEnvironment

Health system is the best in Latin America and number 22 in theworld.Colombia spent 7.5% of GDP on health and 13.9% of public spendingMore than 600 weekly flights to Colombia connecting North, Central

and South America and Europe

Infrastructure

3,000 general doctors undergraduate per yearHuman Resources

Hospital San Vicente de Paul (Antioquia) 1 Free Trade Zone statusgrantedClinica Portoazul (Barranquilla) -1 free trade zone approved (

pending status recognition)Clinica Los Nogales (Bogota) , Promotora de la Laguna (Antioquia),

Sociedad Medica de Sabaneta (Antioquia) - 3 clinics (in process tobe recognized as a free trade zone)

Free Trade Zone

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COSMETICS AND

PERSONAL CAREPRODUCTS


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2008 Production: USD 2,361 M; CAGR 4.4% in the last 6 years. The masculine market is expected to grow 20% per year.

Fourth Marketin LatinAmerica

The highest female participation in the workforce in Latam (44.6%) Colombian women cosmetics pocket share duplicates the

European women (as proportion of their income).

Female LaborParticipation

In the last 6 years exports has tripled, arriving to US$735 millionand a positive trade balance of US$ 300 million

Trade Agreements with 44 countries reaching to cover 1.2 millionconsumers.

Export

Platform

More than 200.000 professionals and 30.000 technicians availableto work in the sector

HumanResources

The second largest country in number of species of plants

World Leaderin Biodiversity

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BIO-FUELS


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Single enterprise Fee Trade Zone. Income tax exemption on late yield crops during ten

yearsTax Incentives

16,5M ha (6.1 M acres) suitable for biofuelproduction.Land Availability

Worlds fifth palm oil producer. (3,6 MT.) Highest sugar productivity in the world. (12,78T/crop

year)Raw MaterialsAvailability

E20 B20 by 2020. Ethanol local consumption (490M liters), supplied only

in a 66% by local production Biodiesel local consumption (55M liters) supplied in

20%

Internal Demand

34M Ha (85 M acres) available for agricultural andlivestock development. No need to cut down rain forest

Green seal production (environmental and socialpractices).

Environment &Food vs. Fuel

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FORESTRY


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17 M ha (42 M acres) suitable for timberlandLand Availability

More than 10 forestry species with high value addedDiversity

Photosynthesis throughout the year

Higher yield species Shorter life cycles Weather advantages

Productionadvantage

High quality forestry germplasmbase with plant materialproduction capacity of 52,000 ha (131,000 acres) per year

Tax Incentives

High quality forestry germplasmbase with plant materialproduction capacity of 52,000 ha (131,000 acres) per year

Biotechnology andgenetic

development

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AUTOMOTIVE


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Colombianexportsof autoparts increased by 46%in(06-08)Dynamic Industry

Access toa Motor VehicleFleet of over 37millionunits (FTAs)Excellent geo-

economic position

Annually purchase over U$600 million in auto parts to localproducers The production of vehicles increased by 46%.(02-08)

Qualified andcompetitive costfor human

resources

Automotive industry workers salary cost : 1.73 US$ /hour (2007)Recurso Humano

Deposits enabled for transformation or assembly assure freecustom duties for auto parts and material

Well-known auto parts companies are established in Colombia(12)

Advantages

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Electric

Power


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Best energy infrastructure in Latam. (IMD) Third country in future energy supply in Latam.

(IMD)

Energy

Infrastructure

All entities in one system. (SIM)Structure of Energy Sector

2 nd country with best access to water in Latam 742,725 watersheds 52,075 m 3 /seg per year Annual rainfall of 3,000 mm Precipitation of 1,313 km 3

Average yield of 58 lt/seg/ km 2

Hydro-energypotential

More than 300 hot springsGeothermalpotential

Daily Average of 4.5 Kwh/m2.

Six Colombian states are above 1,200 Kwh/m2/yearand 3 above 1,600 kwh/m2/year.

Solar-energypotential

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TEXTILES,

APPAREL,FASHION ANDDESIGN


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INFRASTRUCTURE


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Projects to the construction, operation and maintenanceof main access roads of the country: Autopista de las Amricas Road Concession: 800 km of

existing roads Autopistas de la Montana Road Concession: Total

length 1000km

Carreteras

New ports development: Aguadulce (USD 103 M) andContecar (USD 297 Million)

Integration and Concession of Northeast Airports (USD 107Million)

Puertos y Aeropuertos

"Central Railway System Railway Concession: 1.045 km,estimated investment of USD 895 million

Ferrocarriles

58

PUBLIC INFRASTRUCTURE PROJECTS ACCOUNT FOR US$ 21BILLION

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GRAPHIC

COMMUNICATIONINDUSTRY


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CONCLUDING REMARKSCONCLUDING REMARKS

In the last few years, Colombia has experienced a marked

improvement in its macroeconomic performance,internal security and stability for businesses. As a resultsocial indicators have improved dramatically.


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CONCLUDING REMARKSCONCLUDING REMARKS

Colombia has achieved a solid structural growth, based on anincrease in the investment rate and higher productivitylevels


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CONCLUDING REMARKS

The country has guaranteed its external funding for 2009trough multilateral institutions such as IADB, WB and CAF.


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CONCLUDING REMARKS

Colombia is aggressively negotiating trade and investmentagreements expanding its markets and becoming more

attractive to investors.


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CONCLUDING REMARKS

The Colombian Government is committed to generating themost favorable conditions for domestic and foreign

investment instruments such as the free-trade zonesregime and legal stability contracts.


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045 colombian economy foreign investment report

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