Additional Information September 2009 2 Case Studies Successful - - PowerPoint PPT Presentation

Uruguay – Additional Information

September 2009

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Case Studies Successful Investments

September 2009

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Weyerhaeuser

• US-based company present in Uruguay since

1996; harvesting operations began in 2005.

• Weyerhaeuser Uruguay’s total land base as of

2008 is 140,000 ha (346,000 acres), or 0,8% of the national territory.

• Of these 55,000 ha (136,000 acres) are planted

with pine, eucalyptus and poplar.

• The plywood plant exported in 2008 USD 28

MM to Europe, Latin America and the United States.

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Weyerhaeuser (2)

• At present, Weyerhaeuser has 450

employees in Uruguay, and 1,600 when including contractors.

• The company recently announced new

industrial investments in renewable energies (power generation and fuels), engineered wood products and lumber.

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Weyerhaeuser: Tax Incentives Awarded

• The company was awarded investment

promotion incentives in 1999, 2004 and 2008.

• 2008 project’s objectives: extension of the

plywood production facility in Tacuarembó and addition of a new energy source based on wood residues and its sub products.

• Investment: USD 90 MM.
• Maximum exemption: USD 125 MM (corporate

income tax, wealth tax, import taxes and VAT).

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Tata Consultancy Services

• 2002: TCS chose Uruguay to set up its
• ffshore global development center for

Spanish-speaking customers (nearshore IT services, solutions from Microsoft, SAP, Business Intelligence and Quality Consulting)

• Uruguay represents a strong platform for TCS

in the development, financial, legal and training areas, having at present over 800 employees.

• TCS have their regional training center in

Montevideo.

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• Testimonial: “Apart from security and good weather conditions in

Uruguay, the advantages it offers as an outsourcing centre include a well-educated human resource and a time zone opposite to that

• f India, enabling a 24x7 service for customers.”

Botnia / UPM

• Botnia runs a cellulose plant at their own

FTZ; operations started in 2007.

• It also owns 180,000 ha. (445,000 acres)
• f land, of which 60% are cultivated

plantations, all FSC-certified, an investment that Shell and Finnish firm UPM started in 1990.

• At over USD 1,200 MM, the plant was

Uruguay’s largest investment ever, having an impact of 1.6% on Uruguay’s

• GDP. To this we must add the

investment by chemical company Kemira.

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Botnia / UPM (2)

• Also largest investment by a Finnish private

company outside Finland, and the most efficient cellulose plant in the world.

• The plant has a capacity of 1.1 million tons
• f eucalyptus pulp per year, with chlorine-

free technology.

• Exports in 2008: USD 762 MM. 4,000 direct

employees and more than 3,700 indirect.

• Botnia was acquired by UPM in 2009.

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Sabre

• Present in Uruguay since 2004, operating from a tax-

free business park.

• Operations in Montevideo provide world-class

customer support to airlines, travel agencies and

• hotels. Other corporate functions have also been

transferred to Uruguay.

• With 880 employees, representing approximately

10% of Sabre’s global workforce, Uruguay is the second largest location for the company after Dallas, TX.

• Sabre’s Uruguay operation takes advantage of local

language skills in several languages and also of Uruguay’s time zone, in-between North America and Europe.

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NZ Farming Systems Uruguay

• Ongoing investment by New Zealand

dairy company NZ Farming Systems Uruguay.

• At present, 26 dairy farms, aiming at 49

by 2012.

• Investment so far, over USD 200 MM.
• 1 million hectares (2,5 million acres) of

forest plantations, i.e. 6% of the territory.

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Stora Enso / Arauco

• Stora Enso is a Swedish/Finnish

company, present in Uruguay since 2004.

• In 2009 Stora Enso and Chilean

company Arauco joined forces to acquire the majority of Spanish company Ence’s

• perations in Uruguay for USD 344 MM,

and thus accelerate their projects.

• The two companies have a land base of

approximately 250.000 ha (618,000 acres), or 1,4% of the national territory.

• Stora Enso and Arauco are now

analyzing the potential location for the construction of a USD 1 billion+ pulp mill in Uruguay.

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Pepsi

• Present in Uruguay since 1956.
• In 1993 a plant in Colonia’s Free

Zone started to manufacture Pepsi concentrate for export.

• The concentrate plant exported in

2008 USD 400 MM to Latin American countries, being the second largest exporter from Uruguayan territory.

• Pepsico Uruguay produces 21% of

the concentrate utilized outside of the United States.

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UME

(Uruguay Mineral Exploration)

• UME is a gold production and exploration company

incorporated in Canada.

• UME operates the only producing gold mine in Uruguay

and has assembled an exploration portfolio of gold, diamonds and base metal prospects.

• Operations started in 2002. Current N° of Employees:

396.

• Activity: Exploration, extraction and processing of gold

mineral.

• Project that applied for tax exemptions: the objective

was to be able to maintain the production and sales over a five years period.

• Investment: USD 5 MM. Maximum exemption: USD 6

MM (corporate income tax, wealth tax, import duties and VAT).

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Conrad Resort & Casino

(Hilton Hotels Corporation)

• Activity: Hotel and casino in Punta del Este.
• Operations started in 1997.
• Project that applied for tax exemptions : the
• bjective was the renovation and improvement of

the slots machines.

• Investment: USD 4 MM.
• Maximum exemption: USD 4.2 MM (corporate

income tax, wealth tax, import duties and VAT)

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Parque de las Ciencias Megapharma

• The “Sciences Park” will be a life sciences

and technology business park, targeting industrial projects, logistics and services.

• Awarded FTZ status in September 2009.
• Funded by German investors and

developed by Megapharma, a strategic alliance of five pharma companies, including Roemmers.

• Focus on high-value added sectors such as

life sciences (e.g. pharmaceutics, cosmetics, bio-technologies, veterinary, phytosanitary & medical devices) and technology (e.g. software, electronics, robotics.)

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Parque de las Ciencias Megapharma

• The initial investment will be USD

93 MM, in two steps, with a plant of 40,000 m2.

• It will generate 750 direct jobs

when operational.

• At this location, Megapharma will

produce 60 MM pharmaceutical units, transferring the production of 14 Latin American countries to Uruguay.

• Other companies will be able to join

the FTZ / business park.

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Uruguay - Specific Opportunities and Recent Developments

September 2009

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OPEN TO PRIVATE PPP PROPOSALS:

• CVU holds the concession of

1,500km (930mi) of highways and bridges.

• Currently 100% State-owned.
• Capex 2008/10: USD 265 MM.
• Financed through securitization of

future toll collections.

Roads and Bridges

18 www.cvu.com.uy

BUSINESS OPORTUNITIES: 1) Financing 2) Roadworks 3) Management of toll collection system 4) Roadside assistance

Roads and Bridges (2)

www.cvu.com.uy 19

OPEN TO PRIVATE PPP PROPOSALS:

• AFE, a state-owned entity, runs

Uruguay’s railroads.

• CFU, also state-owned, was given

the concession to build, maintain and streamline 1,000km (620mi)

• f AFE’s railroad system.

Railroads

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Railroads (2)

BUSINESS OPPORTUNITIES: 1) Financing 2) Technical assistance, consulting 3) Construction 4) Supply railcars and specific supplies

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Ports

Ports of Uruguay:

• 1. Montevideo
• 2. Nueva Palmira
• 3. Juan Lacaze
• 4. Colonia
• 5. Fray Bentos
• 6. Paysandú
• 7. Salto
• 8. La Paloma

1 2 3 4 5 6 7 8

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Program of modernization of the port

• f Montevideo: expansion of port

Infrastructure

• New container terminal.
• Capurro Port project: 2 fishing terminals.
• Wood chips terminal.

“Dry port” in Rivera (north of the country)

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Ports (2)

Montevideo

Planned Investments

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Ports (3)

2009 2010 2011 2010

BUSINESS OPPORTUNITIES: 1) Regional Logistics Center 2) Financing 3) Construction 4) Dredging 5) Services and operation 6) Fishing and wood products companies

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Ports (4)

BUSINESS OPPORTUNITIES: Construction of waste water treatment plants in Colonia, Mercedes and Artigas departments. Construction of water and waste water project for the Maldonado – Punta del Este system. Water and waste water national plan, with a medium term investment of more than 700 MM USD.

Water and Waste Water

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Montevideo, Capital City

Municipality of Montevideo

1 2 5 4 3

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BUSINESS OPPORTUNITIES 1. Development opportunities for Punta Carretas area. 2. Buceo Port, seafood market and urban park. 3. Montevideo Bay coastal sector, port, towers, services. 4. Urban Mobility Plan, construction of segregated public transport lanes. 5. Development of industrial parks.

BUSINESS OPPORTUNITIES: 1) Construction and financing. 2) Management of industrial parks. 3) Opportunities for companies to join clusters.

Industrial Parks

CHARACTERISTICS: Projects in process:

• Pando Industrial Park.
• Pharmaceutical Industrial Park.
• Other projects in Montevideo, Salto, Colonia,

Maldonado. Project in place:

• Zona Este Industrial Park.

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Punta del Este Convention Center and Fairground

Project for construction, financing and management

• Convention Centre

– Plenary hall for 2600 people – Foyer with suitable exhibition areas – 11 Breakouts of 100 to 300 persons – 4 meeting rooms for 50 persons – Lounge, Operators Room, Press Room – Business centre

• Fairground Building

– Pavillion of 12,000 square meters – Wide Foyer – Lounge, Operators Room, Press Room – Business centre Concession for 35 years.

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Offices and Warehouse at Port

• Facility in Rivera (north of the

country)

• Facility in Punta Sayago

(Montevideo)

• Area: 100,000 m2
• Movement: 24,000 TEUS / year
• Lobraus office tower and “smart

warehousing” in port of Montevideo

• Investment: USD 30 MM
• Warehouse: 25,000 m2 – Capacity

50,000 m3

• 15-storey highrise with 8,000 m3
• Looking for partner / financing

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BUSINESS OPPORTUNITIES:

• 1. Construction and

management of wind farms with 150 MW capacity

• 2. Additional tenders are

expected before the year 2015 Characteristics: Electric energy contracts based

• n local renewable resources:
• Wind
• Biomass
• Micro hydroelectric

Objectives:

• Diversify the energy matrix
• Take advantage of local resources
• Renewable energies
• Jobs creation
• Care for the environment

Renewable Energies

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Deep Overhaul of Refinery

• State-owned oil company has conducted feasibility studies to

conduct a deep overhaul of the refinery.

• Units to be revamped: coker unit with mild hydrocracker.
• Estimated investment: USD 1 billion.
• Estimated date to start operations with the new configuration:

2016.

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LNG Regasification Plant

• Ancap, together with Argentina’s ENARSA, will run a tender for the

supply, construction and operation of a liquid natural gas regasification plant in the upcoming months

• Send-out capacity for this plant is established at a minimum of 6

million m3/day and a maximum of 10 million m3/day. Scalable to 20 million m3/day.

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Next completions

34 New service-oriented FTZs / business parks

Electricity – Connection to Brazil Port Terminal - Colonia

New airport terminal Montevideo loop road

New Airport Terminal - Montevideo

• 20-year concession awarded via a public auction in 2003, to Corporación

América, an airport operator that runs more than 40 airports worldwide.

• New terminal will open in October 10, 2009; designed by NYC-based

Uruguayan architect Rafael Viñoly.

• Actual covered area: 45,000 m2 (484,000 sq.ft.), vs. 16,900 required for

tender.

• Estimated total investment: USD 180 MM, partly financed with USD 87 MM
• f locally-issued bonds, of which 80%+ were acquired by foreign investors.

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Ferry Port of Colonia

• New passenger port terminal in Colonia opening in

September 2009. Will cater to Colonia – Buenos Aires traffic.

• 7,000 m2 (77,500 sq.ft.) covered area.
• 2 MM passenger traffic in 2008, vs. 1.2 MM in 2005.

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Two new service-oriented Free Zones

• Aguada Park and World Trade Center

Free Zones: technology and service-

• riented business parks that will operate

under a free zone regime in the heart of the capital.

• Sponsored by local and foreign investors.
• Scheduled to open at the end of 2009

and 2010, respectively.

• Total investment: USD 65 MM.
• Will host 6,000 workers.
• 4 high-rises, total covered area 60,000

m2 (645,000 sq. ft.).

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New Montevideo Loop Road and Double-Carriage Highways

• First stage of Montevideo Loop Road to open before end of 2009, linking

major routes 5 and 8. Investment: USD 45 MM

• Double-carriage Montevideo – Colonia road under construction. One of last

segments opened in August 2009.

• Once fully complete, Colonia, Montevideo and Punta del Este will be linked

almost entirely by a 300 km long (185 mi) double-carriage highway.

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Electricity

NEW CONNECTION TO BRAZIL

• New electric connection Uruguay – Brazil being built by state-
• wned UTE, with a budget of USD 340 MM.
• This linkage will increase energy security in times of drought.

EXPANDED GENERATION CAPACITY

• UTE is also expanding its electricity generation capacity by

expanding Batlle power plant, with a budget of USD 80 MM.

• Eight new turbines will run on both oil and natural gas.

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Uruguay – Additional Information

September 2009

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