Investing in san juan1

771 views

Published on

Why invest in San Juan?

Published in: Investor Relations
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
771
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
19
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Investing in san juan1

  1. 1. BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />GOVERNMENT OF THE PROVINCE OF SAN JUAN<br />MINISTRY OF PRODUCTION AND ECONOMIC DEVELOPMENT<br />SAN JUAN <br />ARGENTINA<br />Edificio Centro Cívico - 4º Piso- Núcleo 7 - San Juan 5400 - Argentina<br />Tel. 54 264 4306430<br />http://produccion.sanjuan.gov.ar/<br />
  2. 2. BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />PROVINCIAL AUTHORITIES<br />GOVERNOR:<br />Mr. José Luis Gioja<br />VICE GOVERNOR:<br />Mr. José Rubén Uñac<br />MINISTER OF PRODUCTION <br />AND ECONOMIC DEVELOPMENT<br />Mr. Raúl Osvaldo Benítez<br />SAN JUAN <br />ARGENTINA<br />Edificio Centro Cívico - 4º Piso- Núcleo 7 - San Juan 5400 - Argentina<br />Tel. 54 264 4306430<br />http://produccion.sanjuan.gov.ar/<br />
  3. 3. BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br /> Investing in San Juan <br /> A Prospectus<br />SAN JUAN <br />ARGENTINA<br />
  4. 4. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />San Juan Province, Argentina<br />On the Pacific coast in the Andean region of northwestern Argentina, San Juan is primarily known for its fertile vineyards and rich mineral deposits. <br />However, much of San Juan’s potential has yet to be discovered by investors.<br />
  5. 5. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Why invest in San Juan?<br />A strong commitment to social welfare and quality of life<br />Political stability, integrity, and respect for the rule of law<br />Evidence of sustained economic growth <br />Growing infrastructure<br />An abundance of untapped investment opportunities <br />Excellent and plentiful natural resources <br />....all contribute to making San Juan an ideal setting for new commercial ventures <br />
  6. 6. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Human Capital<br />
  7. 7. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br /><ul><li>Overall population: 700,000
  8. 8. Human Development Index is .776 (a medium- </li></ul> high score; HDI for Argentina is .8)<br /><ul><li>43.7% economic activity rate
  9. 9. Unemployment has recently decreased from </li></ul> 13.3% to 6.6%<br />
  10. 10. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Education<br /><ul><li>Almost total literacy
  11. 11. Extensive opportunities for </li></ul> post-secondary and university <br /> education, covering practically<br /> all of the scientific disciplines<br /><ul><li>2 universities, numerous </li></ul> post-secondary learning<br /> institutions<br />
  12. 12. Educational and social development<br />SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br /><ul><li>Under the umbrella of social </li></ul> development, public <br /> investments have been made <br /> in schools, health centers, <br /> and hospitals <br />
  13. 13. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Post-primary professional training<br /> Number of People in <br /> 2009 Matriculation<br />% of Matriculation<br />Management<br />Total<br />
  14. 14. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Education financing<br />Bilateral Funding Agreement<br /> National predicted<br />National executed<br /> Provincial predicted<br /> Provincial executed<br />
  15. 15. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Matriculation in the Provincial Education System<br /><ul><li>In terms of environment:
  16. 16. In terms of management:</li></ul>Recent construction in San Juan includes: <br />14 primary schools<br />6 special-education schools<br />11 secondary schools<br />
  17. 17. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Political Stability<br />San Juan province is marked by a <br />political atmosphere of security<br />and respect for the rule of law, <br />government transparency, and<br />social peace.<br />
  18. 18. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br /><ul><li>Covers 92, 789 km2 largely mountainous terrain (80%), the rest of which is desert (18%) or arable (2%)
  19. 19. Arable land found in the river-fed oases of the mountain valleys, where population is also concentrated</li></ul>Borders:<br /><ul><li>North and East: La Rioja
  20. 20. South : Mendoza
  21. 21. Southeast: San Luis
  22. 22. West: Chile </li></ul>The Province<br />
  23. 23. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Economy<br />
  24. 24. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Business Promotion <br /><ul><li>San Juan Investment Development Agency
  25. 25. Government policies and actions are aimed at </li></ul>- Improving worker participation in the<br /> employment market <br />- Stimulating wage recovery <br />- Reducing informal employment<br />
  26. 26. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Promotion initiatives<br /><ul><li>Industrial activity in the area is gross </li></ul> income tax exempt<br /><ul><li>Implementation of the “Calidad San Juan” program
  27. 27. Government support of business and economic growth</li></li></ul><li>SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Promotion initiatives (cont.)<br /><ul><li>Credit Program for the Development </li></ul> of Production and Employment in the <br /> Province of San Juan, financed by the <br /> IADB. This program includes actions <br /> linked to long-term financing to<br /><ul><li>Increase investment
  28. 28. Promote competitiveness
  29. 29. Strengthen key institutions</li></li></ul><li>SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Economic growth<br /><ul><li>1% of Argentine GDP
  30. 30. The evolution of Gross Geographic Product (GGP) reflects Argentine macroeconomic effort and international impact</li></li></ul><li>Growth of San Juan exports in relation to growth in national exports (2003-2009)<br />783,8<br />669,8<br /> San Juan exports<br />510,2<br />National exports<br />460,4<br />233,9<br />193,7<br />187,0<br />186,2<br />155,5<br />143,9<br />134,9<br />115,5<br />100<br />100<br />2003<br />2004<br />2005<br />2006<br />2007<br />2008<br />2009<br />Year 2003 = 100<br />SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />
  31. 31. 351,30<br />275,58<br />National exports<br />274,90<br />San Juan exports excluding gold<br />233,9<br />233,97<br />193,72<br />186,2<br />187,0<br />155,5<br />143,93<br />134,9<br />115,5<br />100<br />100<br />2003<br />2004<br />2005<br />2006<br />2007<br />2008<br />2009<br />Year 2003 = 100<br />SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Growth of San Juan exports excluding gold in relation to growth in national exports (2003-2009)<br />
  32. 32. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Aid-based indicators<br />In 2008, the<br /> World Bank<br /> gave the <br /> province a PBG of US $3.095m. <br />This demonstrates <br /> confidence in the country.<br />
  33. 33. Social Inclusion Project with the World Bank<br />SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />On March 16th, 2010 the World Bank approved US $50 million to support San Juan’s efforts to <br />improve the equity, quality, and efficiency of education and health services, including the Rawson and Quiroga hospitals;<br />make public sector management more efficient<br />A clear demonstration of international recognition and approval of San Juan’s “important achievements in the last few years” and growth of 11% annually since 2003 (World Bank VP for LAC, Pamela Cox)<br />
  34. 34. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />World Bank Index: Doing Business in Argentina 2010<br />(Economies are ranked from 1-183, 1having the best score)<br />
  35. 35. Fiscal solvency<br />SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />
  36. 36. GGP Structure: Economic sectors, 2007<br />SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Source: San Juan Institute of Economic and Statistical Research<br />
  37. 37. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Exports / Production growth<br />.38<br />.34<br />.33<br />.31<br />.16<br />.15<br />.18<br />2003 2004 2005 2006 2007 2008 2009 <br />
  38. 38. 1149<br />783%<br />San Juan Exports<br />17%<br />1004<br />All Customs Exports<br />982<br />814<br />748<br />675<br />658<br />656<br />284<br />211<br />146,6<br />147<br />68,8<br />91,3<br />2003<br />2004<br />2005<br />2006<br />2007<br />2008<br />2009<br />(in millions of USD)<br />SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Exports 2003 - 2009 <br />
  39. 39. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Sectorial breakdown of San Juan exports<br />
  40. 40. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Notable Sectors & Areas of Economic Growth<br />
  41. 41. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Manufacturing<br />Source: San Juan Institute of Economic and Statistic Investigations, 2007<br />
  42. 42. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Agriculture<br />The fertile mountain valleys of San<br />Juan, fed by Andean rivers and <br />irrigated by hydroelectric dams, <br />Make agriculture a flourishing <br />enterprise in this somewhat <br />improbable spot. Agriculture <br />forms over 20% of San Juan’s <br />GDP.<br />
  43. 43. Viniculture<br />
  44. 44. Grapes & grape products<br />SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />The climate conditions in San Juan <br />- dry, with low relative humidity levels, <br />and sandy loam soil and the added <br />benefit of new production technologies -<br />make the province a national and <br />international standard for grapes and <br />grape-based products.<br />
  45. 45. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />San Juan is the second-largest producer of Argentine wine after Mendoza; Argentina itself is the second largest wine exporter in Latin America after Chile<br />Ideal agro-ecological conditions: dry climate with low relative humidity levels and rainfall around 100 mm annually, lots of sunshine, warm summers, cold winters and sandy loam soil all result in high production yield and sugar content<br />Argentina is unique for the absence of the phylloxera louse that threatens vineyards across the world<br />
  46. 46. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Conditions for investment<br />The current milling and storage capacity of wineries absorbs only 30% of the existing production<br />Only 20% of the total produced volume is glass-bottled (around 25 million liters)<br />There are ideal conditions for investment in wineries with top-notch technological equipment to absorb the existing producti<on surplus<br />
  47. 47. Musts<br />
  48. 48.
  49. 49. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Olives<br />Olives<br /><ul><li>San Juan has optimum logistic conditions to expand the already-prosperous olive oil processing business: only 10% of the possible predicted volume of olive oil is currently being glass-bottled
  50. 50. Ideal agro-ecological conditions to develop olive varietals with high marketing potential</li></li></ul><li>SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Significant concentration on Arbequina and Manzanilla olives<br />Argentine olive oil production increased 40% between 1993 and 2003 (which saw a yield of 14,000 tons)<br />San Juan olive oil exports reached US $9.2m in 2007; preserved olive exports reached $6.6m<br />
  51. 51. Glass industry expansion opportunities<br />SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br /><ul><li> Estimated current demand for the current volume of wine produced is </li></ul> 33 million 750cm3 bottles/ year.<br /><ul><li> Estimated current demand for the current volume of olive oil produced is </li></ul> 3 million 500 cm3 bottles/year.<br />
  52. 52. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Fresh onions<br />26% of the total area used for vegetable crops is used for onion cultivation<br />Onions and garlic represent the two main Argentine fresh vegetable exports<br />Exports during 2007 amounted to US $9.4m<br />
  53. 53. Onion cultivation investment opportunities<br />SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Construction of new processing plants, expansion of existing processing capacity and introduction of new technologies<br />Investment of working capital to finance the crop’s productive cycle<br />Strengthening of the commercial link between cultivators and processors and exporters<br />
  54. 54. Fresh garlic<br />SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />San Juan produces around 23,500 tons of fresh garlic per year<br />The second largest garlic producer in the country, and the primary producer of high-quality white garlic<br />Main vegetable exported by San Juan <br />Fresh garlic exports amounted to US $25.6m in 2007<br />
  55. 55. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Garlic production investment opportunities<br />Need for expanded processing capacity<br />Investment of working capital to finance the crop’s productive cycle<br />Creation of productive groups aimed at commercial development<br />
  56. 56. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Infrastructure & Alternative Energy<br />
  57. 57. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Infrastructure development<br />Public investment with both <br />federal and local resources has <br />largely increased the <br />productive infrastructure.<br />- Route 40 connects the country from north to south, crossing San Juan and joining it with Mendoza and La Rioja<br /><ul><li>Route 20 links San Juan with the city of Buenos Aires and Cordoba
  58. 58. The new route 150 connects the province to Chile
  59. 59. Daily flight services to Buenos </li></ul> Aires from the Domingo Faustino Sarmiento Airport (~90 minutes)<br />
  60. 60. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Notable Infrastructure Development<br />Route 150<br />Renovation and extension of the canal network<br />Planning for construction of Latin America’s largest solar park<br />Caracoles and Cuesta del Viento hydro-electric systems<br />Door to the Pacific: the Agua Negra Tunnel<br />
  61. 61. San Juan’s new Route150<br />
  62. 62. The Norte and 25 de Mayo canals<br />
  63. 63. Eco-conscious development<br />SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />San Juan has backed<br />the construction of <br />the largest solar<br />energy park in <br />Latin America<br />The highest wind turbine in the world, which provides electricity to the Veladero gold mine at 4300 meters<br />
  64. 64. Caracoles Dam hydroelectric system <br />
  65. 65. Cuesta del Viento<br />
  66. 66. Door to the Pacific<br />SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />The construction of the Agua Negra tunnel will join San Juan with Chile’s Region IV. The completion of this project will create a permanent door from the province to the Pacific ocean and to the Central Bi-oceanic Corridor between Porto Alegre, Brazil and Coquimbo, Chile, going through Entre Rios, Santa Fe, Cordoba and La Rioja.<br />
  67. 67. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Agua Negra Tunnel plans<br />
  68. 68. Mining<br />
  69. 69. Minerals<br />SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br /><ul><li>Due to its location in the Andes </li></ul> Mountains, San Juan has vast <br /> mineral deposits<br /><ul><li> Mining currently accounts for more </li></ul> than 45% of industrial production<br /><ul><li> The primary value of the mining </li></ul> chain in 2007 amounted to USD <br /> $ 617 million<br /><ul><li> From 2004 to 2007, around 27 million oz of gold and 637 million oz </li></ul> of silver were found in six different deposits<br /><ul><li> Mining and mine prospecting has skyrocketed</li></li></ul><li>The Future of Mining in San Juan<br />SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br /><ul><li>From 2009-2013, growth in Argentina’s mining sector is estimated at 2.76%, which is higher than the projected national economic growth rate of 0.82%
  70. 70. Principal minerals to extract: gold, silver, and copper
  71. 71. President Cristina Fernandez de Kirchner has showed herself to be a supporter of mining</li></li></ul><li>SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br /><ul><li>According to the U.S. Commercial Service in Argentina, several new mines will be built in Argentina in the next 5-10 years, representing an opportunity for U.S. companies to supply mining equipment and machinery
  72. 72. Minera Andes, Inc. announced in Aug. 2009 that it would begin exploring additional copper production in San Juan. The company already operates four copper sites, one of which (Los Azules) has discovered 11 billion lbs. of copper</li></li></ul><li>Relevant Mining Legislation:<br />Business Incentives<br />
  73. 73. Mines and mine prospects<br />Projects with technical<br /> feasibility<br />Projects underexploration<br />Mine under operation<br />Mine under construction<br />SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />
  74. 74. Veladero Gold Mine: total reserves estimated in 12.8 million oz of gold with a 17-year useful life<br />
  75. 75. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Pascua <br />Lama<br />Project<br />Gold, silver, and copper deposit<br />Reserves estimated to amount to <br />18 million oz<br />
  76. 76. Gualcamayo Project:<br />Gold deposit with reserves estimated at 3.5 million oz gold<br />
  77. 77. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Casposo Project: <br />Gold and silver deposit<br />Indicated resources 313,278 oz gold,<br />8.155 billion oz silver<br />Investment amounts to US$ 45 million<br />
  78. 78. Pachon Project: bi-national development of a copper and molybdenum deposit<br />Estimated annual production of 300,000 tons<br />
  79. 79. SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />Tourism<br />
  80. 80. Adventure & natural beauty<br />SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br /><ul><li>Ichigualisto National Park - amazing natural rock formations, including the Valle de Luna
  81. 81. Pampa del Leoncito
  82. 82. Adventure tourism: Mount Mercedario
  83. 83. Agro-tourism: wine routes
  84. 84. The city of San Juan
  85. 85. Fiesta Nacional del Sol</li></li></ul><li>Cultural Heritage<br />SAN JUAN <br />ARGENTINA<br />BICENTENARIOS<br />Forjando Ciudadanía y Federalismo<br /> San Juan – Argentina<br />San Juan is the birthplace of Domingo Faustino Sarmiento, the second constitutionally-elected President of Argentina and the force behind the country’s comprehensive education system, the design of which he based on education systems of Boston, Massachusetts. <br />
  86. 86. The end.<br />

×