The Latin Asia Business Forum 2007 Infrastructure Opportunities in Latin America  October 2, 2007 Natan Rodeguero Project ...
INFOAMERICAS HISTORY <ul><li>InfoAmericas is the leading business intelligence provider for Latin America.  </li></ul><ul>...
Our business in numbers 800+ projects   14+ years of expertise   70% of projects are pan-regional 22 industries covered   ...
Partial client list
Infrastructure Spending in Latin America  <ul><li>a brief historical perspective  </li></ul>
Commodity Price and Infrastructure Spending in Latin America 1970 to 2000
Private Investment in Latin America
Lessons learned <ul><li>Private investments will be successful if  consumers are willing to pay  for the service </li></ul...
New Funding Model for Infrastructure <ul><li>Sectors of high public demand and low returns – water, sewage, roads – are pu...
2007-2015: Latin American Infrastructure Opportunities
Infrastructure Projects for the next 24 months High commodity prices and high demand for reliable energy are the reason be...
Panama Canal’s Third Set of Locks Project <ul><li>Expansion Plans will cost  US$ 5.25 Bn </li></ul><ul><li>Project Broke G...
Brazil – PPP (Public-Private Partnership) & PAC (Growth Acceleration Program) <ul><li>Infrastructure investments of  US$25...
Brazil – ethanol <ul><li>US$9 Bn  being invested in new sugar mills to boost ethanol production </li></ul><ul><li>Aiming t...
Mexico – National Program of Infrastructure <ul><li>Mexican government will invest  US$ 226 Bn  on the National Infrastruc...
Mexico - Port in Punta Colonet <ul><li>Building of a  new sea port  in Punta Colonet: estimated cost 24.5 Billion USD  </l...
Mexico - Hydrocarbon <ul><li>Mexico’s main oil field Cantrell  reserves are diminishing </li></ul><ul><li>Government inves...
Mexico’s Hydrocarbon – Chicontepec Project <ul><li>Oil fields north east of Mexico City believed to be able to produce  83...
Mexico’s Hydrocarbon – Ku-Maloob-Zaap Project <ul><li>Three new fields  in the Chiapas -Tabasco area together hold 350m ba...
Colombia - Infrastructure Project: Ruta del Sol <ul><li>To  reduce travel time  between the Capital and the Caribbean coas...
An InfoAmericas presentation Please contact us for follow-up inquiries Miami +1 305 569-9133 Mexico City +52 55 5511-9607 ...
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“The Latin Asia Business Forum 2007”

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  • Returns on Private Participation Investment (PPI) has on average general low returns, the only one that almost always had high returns was telecom
  • Returns on Private Participation Investment (PPI) has on average general low returns, the only one that almost always had high returns was telecom
  • Advanced technology used in Golfinho gave Petrobras the 2006 Industry Achievement Award, granted by Society for Underwater Technology
  • Advanced technology used in Golfinho gave Petrobras the 2006 Industry Achievement Award, granted by Society for Underwater Technology
  • “The Latin Asia Business Forum 2007”

    1. 1. The Latin Asia Business Forum 2007 Infrastructure Opportunities in Latin America October 2, 2007 Natan Rodeguero Project Director at InfoAmericas Sao Paulo, Brazil
    2. 2. INFOAMERICAS HISTORY <ul><li>InfoAmericas is the leading business intelligence provider for Latin America. </li></ul><ul><li>Since 1993, InfoAmericas completed over 800 research and business intelligence projects across Latin America and the Caribbean. Our experience covers virtually every industry and research methodology. </li></ul><ul><li>InfoAmericas helps companies develop solid business intelligence for implementing successful market strategy. We work with companies to find, measure, and exploit market opportunities. </li></ul><ul><li>InfoAmericas is a recognized thought leader. Tendencias, our monthly newsletter, is one of the region’s most insightful analysis papers with over 14,000 active readers and is available for browsing at: http:// tendencias.infoamericas.com . Our opinions and analysis are regularly quoted and reprinted in leading media. </li></ul><ul><li>InfoAmericas employs over 30 full-time consultants amongst its three offices: Miami, Mexico City and Sao Paulo, which are used as central points for regional studies. </li></ul><ul><li>Over 70% of InfoAmericas’ projects are multi-region in scope. </li></ul><ul><li>InfoAmericas is a member of SCIP since 1997. </li></ul>
    3. 3. Our business in numbers 800+ projects 14+ years of expertise 70% of projects are pan-regional 22 industries covered 4 in-depth sectors 30+ Full time analysts 25% MBA / MSc 80% USA / EU experience 100% LatAm experience 80+ white papers published 15,000+ active readers http://tendencias.infoamericas.com 5 thought leading directors 30+ global papers come to us for insight 25+ global conferences recruit our directors as speakers 70% of our projects are multi-market InfoAmericas' work was invaluable in redirecting our distribution partnership and establishing us as the leading vendor in the region .
    4. 4. Partial client list
    5. 5. Infrastructure Spending in Latin America <ul><li>a brief historical perspective </li></ul>
    6. 6. Commodity Price and Infrastructure Spending in Latin America 1970 to 2000
    7. 7. Private Investment in Latin America
    8. 8. Lessons learned <ul><li>Private investments will be successful if consumers are willing to pay for the service </li></ul><ul><ul><li>Basic public services are considered basic human rights </li></ul></ul><ul><li>There have to be guarantees to political risk , currency devaluation , support against corruption , and legal stability </li></ul><ul><li>Private Investment is not feasible in all areas (roads between small cities, rural areas, low economic activity areas, etc) </li></ul>
    9. 9. New Funding Model for Infrastructure <ul><li>Sectors of high public demand and low returns – water, sewage, roads – are publicly funded </li></ul><ul><ul><li>Projects subsidized through the use of social tariffs and financed by NGOs like World Bank or by third party country agencies like The Export-Import Bank (Exim Bank) </li></ul></ul><ul><li>Sectors with higher ROI in areas such as telecom and energy attract the most private investment </li></ul><ul><ul><li>Divestiture and Greenfield are the most common models </li></ul></ul><ul><li>Most infrastructure projects (except Telecom) are a collaboration between private and public investment </li></ul>
    10. 10. 2007-2015: Latin American Infrastructure Opportunities
    11. 11. Infrastructure Projects for the next 24 months High commodity prices and high demand for reliable energy are the reason behind the number of projects in O&G (Oil and Gas) Low Medium High
    12. 12. Panama Canal’s Third Set of Locks Project <ul><li>Expansion Plans will cost US$ 5.25 Bn </li></ul><ul><li>Project Broke Ground – September 3 rd , 2007 </li></ul><ul><li>Project Completion Date - 2015 </li></ul><ul><li>Project Mangers: CH2M Hill global leader in full-service engineering, consulting, construction, and operations </li></ul><ul><li>Sub Contractors: Re quest for Qualification is currently being reviewed; shortlist to be ready in November 2007 </li></ul>Panamax Panamax Pospanamax Pospanamax
    13. 13. Brazil – PPP (Public-Private Partnership) & PAC (Growth Acceleration Program) <ul><li>Infrastructure investments of US$250 Bn from 2007 to 2011 </li></ul><ul><ul><li>Energy : US$140 Bn (generation, transmission, oil, natural gas, renewable fuel) </li></ul></ul><ul><ul><li>Transport & Logistics : US$30 Bn (roads, railway, ports & maritime, airports, ‘hydroways’) </li></ul></ul><ul><ul><li>Social & Urban : US$85 Bn (water&sewage, urban transportation, ‘Light for Everyone’, irrigation) </li></ul></ul><ul><li>A result of sound macro-, fiscal, and regulatory policies, and investment climate </li></ul><ul><li>São Paulo and Minas Gerais states are leading the trend </li></ul>
    14. 14. Brazil – ethanol <ul><li>US$9 Bn being invested in new sugar mills to boost ethanol production </li></ul><ul><li>Aiming to double exports by 2010 </li></ul><ul><li>Brazil accounts for 53% of global ethanol trade; Europe is at a distant 12% </li></ul><ul><li>Brazilian sugar-cane ethanol is more efficient to produce than the corn-based fuel made in USA </li></ul><ul><li>75% of new car sales are ‘ flex-fuel ’ (run both on gasoline and/or ethanol) </li></ul><ul><li>Electricity generated by bagasse (cane-waste) </li></ul><ul><li>Labour generation in farming and processing </li></ul>
    15. 15. Mexico – National Program of Infrastructure <ul><li>Mexican government will invest US$ 226 Bn on the National Infrastructure Program; all projects to be finished by 2013: </li></ul><ul><ul><li>17,000+ km of highways/roads will be rebuilt (26.1 Billion USD) </li></ul></ul><ul><ul><li>Suburban trains throughout the Metropolitan area of Valley of Mexico (4.4 Billion USD) </li></ul></ul><ul><ul><li>13 new ports for cruise ships; 25 ports will be modernized (6.45 Billion USD) </li></ul></ul><ul><ul><li>3 new regional airports ; 31 airports to be expanded (5.4 Billion USD) </li></ul></ul><ul><ul><li>Improve telecommunications , mobile , internet and bandwidth services (25 Billion USD) </li></ul></ul><ul><ul><li>Increase accessibility to potable water (18 Billion USD) </li></ul></ul><ul><ul><li>Increase Hydrocarbon production and other sources of energy (141 Billion USD) </li></ul></ul><ul><li>Most of the bidding for the over 100 projects are still being accepted visit http:// licitaciones.sct.gob.mx / </li></ul>
    16. 16. Mexico - Port in Punta Colonet <ul><li>Building of a new sea port in Punta Colonet: estimated cost 24.5 Billion USD </li></ul><ul><li>Increasing inflow of goods from Asia justifies the investment </li></ul><ul><ul><li>US Seaports like Los Angeles and Long Beach are reaching capacity </li></ul></ul><ul><li>Mexican Government is preparing the bidding, which should start the end of 2007 </li></ul>
    17. 17. Mexico - Hydrocarbon <ul><li>Mexico’s main oil field Cantrell reserves are diminishing </li></ul><ul><li>Government investing US$ 108 Bn to maintain reserves, guarantee domestic consumption and fulfill export promises </li></ul>Description 2001-2006 2007-2012 Production of petroleum (mmbd) 3.3 2.9 Production of Natural Gas (mmcfd) 4.7 5.5
    18. 18. Mexico’s Hydrocarbon – Chicontepec Project <ul><li>Oil fields north east of Mexico City believed to be able to produce 837Bboe </li></ul><ul><ul><li>Planned to drill 1000 new wells by 2009 </li></ul></ul><ul><li>US$14.7 Bn will be invested between 2007-2017 </li></ul>
    19. 19. Mexico’s Hydrocarbon – Ku-Maloob-Zaap Project <ul><li>Three new fields in the Chiapas -Tabasco area together hold 350m barrels of reserves. </li></ul><ul><ul><li>Installation of two nitrogen plants in Olmeca. </li></ul></ul><ul><ul><li>constructing an infrastructure to handle the production of residual reserves; </li></ul></ul><ul><ul><li>four marine pipelines with a total 14.4km length, </li></ul></ul><ul><ul><li>began operations of its &quot;Senor del Mar&quot; floating production, storage and dispatch unit </li></ul></ul><ul><li>By 2010 field will produce 800,000 bbl/d at a cost of 2.39 million USD </li></ul><ul><li>Project led by state owned Pemex ’s Exploration and Production Unit </li></ul>
    20. 20. Colombia - Infrastructure Project: Ruta del Sol <ul><li>To reduce travel time between the Capital and the Caribbean coast </li></ul><ul><ul><li>estimated cost: US$ 2.5 Mn </li></ul></ul><ul><ul><li>construction of a double lane road between Tobiagrande - Puerto Salgar </li></ul></ul><ul><ul><li>rehabilitation of the existing road between Villeta - Gauduas- Honda </li></ul></ul><ul><ul><li>rehabilitation of existing lane and construction of second lane between Puerto Salgar - San Alberto </li></ul></ul><ul><ul><li>rehabilitation of existing lane and construction of second lane between San Albert - La Mata- La Loma- Bosconia- Y de Cienaga </li></ul></ul><ul><li>Colombian government hiring an Investment Bank to structure and manage the concession. </li></ul><ul><ul><li>Bidding process should start first quarter of 2008 </li></ul></ul>
    21. 21. An InfoAmericas presentation Please contact us for follow-up inquiries Miami +1 305 569-9133 Mexico City +52 55 5511-9607 Sao Paulo +55 11 3168-9767 http:// www.infoamericas.com / http:// tendencias.infoamericas.com /

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