Presentacin 1 Taller planeacion

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Colombia The transformation of a country
GROTTO Workshop 8-9 July 2009, North Charleston,
SC
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• Where are we coming from?
• What are we doing?
• Where are we going next?

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The country has been growing steadier and faster
than the Latin American average
GDP Growth Colombia (2000 2008)
President Uribe
Source DANE (National Accounts), DNP, EIU
(Market Indicators Forecasts)
Note Last update May 22nd, 2009
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Striking performance in FDI, Exports and foreign
visitors
933
2002/2008 Increases
US Million
Exports
President Uribe
214
US Million
FDI
395
Million of visitors
Tourism
120
Source DANE, Central Bank (Banco de la
República), DAS Note Forecast (pr) Preliminary
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Security has improved along with sustained
economic growth
The recipe is simple Democratic Security
Confidence Investment Growth
March 22nd, 2007
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Three main Colombians cities safer than
Washington D.C.
Homicides per 100.000 inhabitants per year 2007
SourceCrime Observatories
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• Where are we coming from?
• What are we doing?
• Where are we going next?

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Second most business friendly country in Latin
America Doing Business 2007-2009
Two years in a row as the first reformer in Latin
America (2009)
Colombia improved 26 positions in two years!
Source Top reformers report. World Bank
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The most competitive FTZs in Latin America 15
income tax and allows sales to the local market
Goods

• 15 income tax
• No import duties
• No VAT tax
• Benefit from international agreements
• Can also sell in domestic market

Services
Agrobusiness Biofuels investment or employment
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58 Free Trade Zones
Number of Approved Free Trade Zones
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Colombia offers legal stability contracts to
guarantee investment projects.
Investments over US1,500,000 Investor pays 1
premium based on the amount of the investment.
Conditions
Period
Up to 20 years maximum.
Contracts approved
38 legal stability contracts, March 31st 2009
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• Where are we coming from?
• What are we doing?
• Where are we going next?

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Country strategy for competitiveness Focus on
global opportunities and local strengths
This process was implemented in China, South
Korea, Dubai, Kuwait, Spain and Ireland
Sectors Selection.
Source McKinsey
Potential World Class Sectors
Renewable Energies and
BPOO IT Services and Software Health
tourism Cosmetics and personal care
products Forestry
Automotive industry Electric power Textile,
fashion design Infrastructure
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Because there are more than 7 million hectares of
available land to develop large scale projects
Colombia has 7 million hectares of available land
in which to plant and grow crops destined for the
biofuels industry. This land does not compromise
Colombias rainforests or other ecological
reserves..
Zones with high potential for the production of
palm oil
Zones with high potential for ethanol production
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 Colombia has centered its biofuel production on
sugar cane and palm oil.
Energy efficiency of biocrops used in the
production of ethanol and biodiesel barrels/ ha/
year
Ethanol
Biodiesel
Source Ministry of Mines and Energy according to
Goldman Sachs y LMC
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Because Colombias internal demand is not fully
covered by local production of biofuels
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Income Tax Exemption for 10 years
Colombia offers an Income Tax exemption for new
late yield crops, like African palm, planted
between 2003 and 2013. These plantations will
have a 0 income tax rate for 10 years form the
moment they are planted
Cultivo de Palma Africana
Palma Africana
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Why invest in Colombias Biofuels sector?
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Hydro-Energy Potential
Hydroelectric Potential

• Colombia ranks 33th in world ranking of access to
  water and second in L.A.
• 742,725 watersheds
• Flow of 52,075 m3 /seg per year
• Annual rainfall 3,000 mm
• Precipitation of 1,313 km3
• Yield 58 lt/seg/ km2

Source Sistema de Información de Eficiencia
Energética y Energías Alternativas
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 Thermal- Energy PotentialMore than 300 hot
springs deposits
Map of Potential Geothermal
Stock of Hot Springs in Colombia
gt200 150-200 130-150 100-130 90-100 80-90 70-80 60
-70 50-60 40-50 10-40 lt10
Source Utilización de la Energía Geotérmica
UPM
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More than 7 regions showed wind intensities equal
or greater than 5 m/seg throughout the year
Wind- Energy
Average wind speed at surface

• Potential of wind power Peninsula de La
  Guajira, San Andres Island, Boyacá and central
  sectors of the Caribbean Coast
• 16 sites to use the wind Resource

Source Atlas de Viento y energía eólica de
Colombia
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Why invest in Colombias energy infrastructure?
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Colombia has several Research and Development
centers for Renewable Energies
CCMG Colombian Climate Change Mitigation Group.
The CCMG is in charge of CDM affairs in
Colombia. Bogota, Colombia www.minambiente.gov.co
CNPML Universidad Bolivariana National Center
for Environmental Production and Green
Technology. Medellin, Colombia www.cnpml.org
CENIPALMA Research and development Center for Oil
Palm Industry. Bogota, Colombia www.fedepalma.org/
cenipalma
CIDET Center for Technical Research and
Development of the Electrical Sector Medellin,
Colombia www.cidet.org
R D Uniandes Center for Research and
Development of Green Technology Bogota,
Colombia www.uniandes.edu.co
CENICANA Colombian Sugarcane Research
Center Cali, Colombia www.cenicana.org
Colciencias Department of Science, Technology
and Innovation, that supports fundamental and
applied research. www.colciencias.gov.co
Clean Development Mechanism
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Ministry of Commerce www.mincomercio.gov.co Inves
tment Promotion Agency www.investincolombia.com.c
o