Argentina as an investment opportunity - Rodolfo G. Villalba Executive Vice President
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Argentina as an investment opportunity
Rodolfo G. Villalba
Executive Vice President
Buenos Aires, May 2017
1
Argentina has strong fundamentals to become a regional economic engine
Large and • 3rd largest economy in LatAm, GDP of USD 586 Bn
diversified • 2nd highest GDP per capita in PPP terms in the region, USD 22,500
ECONOMY
• ~43 Mn pop (~60% under 35); access to 300 Mn pop in Mercosur
Vast availability of • 8th largest country in the world (2.8 Mn km2), with 53% of agricultural land
NATURAL • Abundant food, water and renewable energy resources
RESOURCES
• Large oil & gas and mineral reserves
• Qualified labor force, renowned for its technical skills, creativity & versatility
High quality
HUMAN • #1 in Latin America’s Indices of Human Development and Education
CAPITAL
• 98% literacy rate, ~110,000 higher education graduates per year
NATIONAL • Nationwide road & railroad systems (35,000+ km), 43 ports & 54 airports
INFRASTRUCTURE
• High connectivity, with 75% broadband and 141% mobile penetration
improvement
underway • Extensive natural gas pipeline and electricity grid coverage
2
Argentina has potential to capture USD 25 Bn/year+ in Foreign Direct Investment
Argentina has lagged behind its peers in capturing Now we have the opportunity to reach the level of
the strong FDI inflow growth in Latin America FDI correspondent to the size of our economy
Foreign Direct Investment ’08 - ’15 FDI/GDP
(Avg. USD Bn/Year) (%, average)
74.9
8.4%
’90-’00
’08-’15
6.0x 5.0%
Average
3.9% 4.5%
27.4 3.4%
2.9x 19.7 2.4%
1.4x 1.9%
12.5 5.8x 6.6x 12.4 5.4x
9.4 9.7 8.2
7.1
3.4 1.9 1.5
Brazil Mexico Chile Colombia Argentina Peru Chile Peru Colombia Brazil Mexico Argentina
Argentina’s share of regional FDI flows fell from 16% To reach the regional average, Argentina needs to
to 4% between the 90s and the last 7 years capture USD 25 Bn a year in FDI flows
Source: World Bank, IMF 3
President Macri’s Administration has taken concrete steps to resolve investors’ concerns
WEF Survey: Main Concerns for Argentina
(share of total responses) Key reforms and initiatives
Inflation 18 • Instituted inflation targeting policy to reach single–digit CPI by 2018
• Removed capital controls and repatriation restrictions
FX restrictions 17 • Floated exchange rate and recovered monetary reserves
Access to
13 • Resolved defaulted debt and regained access to global financial markets
financing
Tax levels 11 • Removed export taxes and import restrictions
• Government e-platform for tenders and public accounts
Corruption 11 • Introduced Central Bank independence
• Created the Argentina Investment & Trade Promotion Agency
Government
6 • New Public–Private Partnerships (PPP) regulatory framework
bureaucracy
• Re–launched the National Statistics Bureau (INDEC)
• Established 4–year plan to eliminate the primary fiscal deficit
Other 24 • Implemented an unprecedented tax amnesty scheme
• Country risk declined more than 100bp (-22%) in 12 months*
• Recent public and corporate debt issuances have been oversubscribed by 4-7x**
Source: World Economic Forum (2015), press releases
* JPMorgan, Embi+ 08/31/15 = 584, Embi+ 08/31/16 = 454. **Includes the Federal Government, Buenos Aires Province and corporations
4
The new administration was able to stop the decline and strengthen foreign exchange
reserves
Recovering
Foreign exchange reserves (USD million) reserves level to
pre FX restriction
policies in 2011
$ 60.000
USD 51.495 The
$ 50.000 unprecedented
tax amnesty
$ 40.000 scheme (for a
monetary value
$ 30.000
of USD 120 Bn so
far) will continue
to contribute to
$ 20.000
the growth of
foreign exchange
$ 10.000 reserves
$0
Source: Central Bank of Argentina. Dates are in dd/mm/yyyy format 5
Low leverage at the household, corporate and government levels increase potential for
investment and growth
Household Debt - 2014 Corporate Debt - 2014 Sovereign Debt - 2015
(% of GDP) (% of GDP) (% of GDP)
Latin America
125%
101%
249%
121%
105%
Emerging Markets
96%
Developed World
81%
89%
74%
86%
86%
71%
70%
69%
55%
67%
53%
65%
54%
52%
51%
54%
43%
45%
36%
40%
38%
30%
29%
24%
21%
18%
19%
15%
16%
9%
7%
7%
Chile
Chile
Chile
USA
USA
USA
UK
France
Argentina
UK
France
UK
France
Mexico
India
India
China
Mexico
China
India
Argentina
Argentina
Brazil
Peru
Brazil
Peru
Brazil
Japan
Russia
Japan
Russia
Japan
Germany
Germany
Germany
Colombia
Colombia
Colombia
Argentine households have significant Argentine corporations have the lowest The government has ample room to
room to borrow and increase spending debt to GDP ratio in the world, borrow from capital markets to fund
increasing opportunity for leverage infrastructure projects
Source: McKinsey Global Institute, BCRA, IMF 6
Argentina’s macroeconomic indicators are projected to improve markedly beginning in
2017, making this an ideal moment to invest in the country
Argentine GDP growth is expected to rebound According to IMF, Inflation is expected to decrease
strongly in the next few years significantly, reaching single digits by 2020
YoY GDP Growth (constant 2004 prices) YoY Consumer Price Change
Historical Projected 39%
11%
Argentina’s Central
6% Bank has set more
aggressive goals of
5%
12-17% for 2017
4% and 8-12% for 2018,
reaching 5% in 2019
3%
21%
2%
17%
1%
12%
0%
2008
2010
2011
2013
2015
2017
2018
2019
2020
2021
-1% 7%
5%
-2%
-6%
2016 2017 2018 2019 2020 2021
Sources: Historical – INDEC; Projections – IMF World Economic Outlook (October 2016) 7
Argentina offers investment opportunities of more than USD 250 Bn
Manufacture/ Value Added
Infrastructure Energy & Mining Agribusiness
Industrial Goods Services
$135 Bn $85 Bn $25 Bn $5 Bn $5 Bn
• Roads & highways: $48 Bn • Oil & Gas: $20 Bn+ (per • Irrigation: $18 Bn • Automotive industry • Tourism
• Water & sanitation: $22 Bn year) • Animal protein (beef, • Food & Beverage • Professional
• Education & health: $20 Bn • Mining: $30 Bn+ pork, poultry): $5 Bn • Consumer products services
• Urban mobility: $17 Bn • Renewable energy: $15 Bn • Forestry/Pulp: $2.5 Bn • Machinery & • Biotechnology
• Freight rail: $15 Bn • Hydro power: $10 Bn Equipment • Pharma
• Real estate: $5 Bn • Power grid: $5 Bn • Basic materials • Software
• Thermal power: $4 Bn development
• Telco networks: $5 Bn
• Airports & ports: $3 Bn • Nuclear power: $3 Bn
Note: All values are in USD 8
The Argentina Investment & Trade Promotion Agency
Contribute to the creation of quality jobs and sustainable economic development by
reinserting Argentina into the world, through investment and trade
➢ Single point of contact in the government for companies seeking to invest in Argentina
➢ Become a strategic partner throughout the investment period
➢ Facilitate investment processes and improve business climate
➢ Promote the highest ethical and professional standards, making Argentina
a better and more transparent place to conduct business
➢ Unlock SMEs and regional economies potential to strategic international markets
ECONOMIC JOB REGIONAL SOCIAL TECHNOLOGY STRATEGIC ENVIRONMENTAL
IMPACT CREATION ECONOMIES IMPACT TRANSFER SECTORS CARE
9
The Agency facilitates investment processes throughout the business ecosystem
Strategic issues Administrative issues
Sector-specific information, programs, regulatory framework Tax/legal paperwork, permits, registrations
Foreign Regional TAX LEGAL
Consultants Promotion
Agencies
Embassies & President
/Chief of Municipalities
Consulates
Staff
Ministry of
Foreign Provinces
Affairs
Private,
Financing state-owned,
Programs & multilateral
banks
Strategic CAPITAL FLOWS PERMITS
Ministries Partners
Big 4,
Secretariats Industry management
Chambers consultants
Ministerial Associations
IPAs
The Agency is a single-point-of-contact for investment projects, independently of sectors and origins
10Through the end of November, there have been investment announcements totaling
USD ~53 Bn, of which the Agency manages USD ~35 Bn
Investment Announcements
(USD Bn)
# Projects
55.4 360
Agribusiness 2.4 33
2.5 60
Technology & Other Services
Consumer Goods 5.4 53
Industrial Goods 6.6 49 # Projects
203
34.9
Financial Services 6.7 38
2.9 53
2.2 39
Transport & Infrastructure 8.0 28 4.2 33
1.3
29
4.6
25
5.9 8
Energy & Resources 23.9 99
13.7 32
Investments announced* Investments managed by the Agency
* From 11/12/15 to 11/12/2016. Includes only projects with a declared monetary amount
11We have a world-class team ready to assist you with your investment and trade needs
PABLO TARANTINI JUAN PABLO TRÍPODI FRANCISCO URANGA
VP Investments VP International Trade VP Investments
Infrastructure, Mining, Agribusiness, Consumer Agribusiness, Industrial
Consumer Goods, Innovation Goods, Services Goods
+54 11 5218 8571 +54 11 5218 2924 +54 11 5218 9332
ptarantini@invest.org.ar jtripodi@exportar.org.ar furganga@invest.org.ar
JUAN PROCACCINI
President
+54 11 5199 8572
Presidencia@invest.org.ar
RODOLFO VILLALBA ANDRÉS ONDARRA ANDRÉS TAHTA
VP Investments VP Investments VP Investments
Business in Asia Finance, Power Telecommunications,
+54 11 5218 9332 Generation, Real Estate, Renewable Energy, Health &
rvillalba@invest.org.ar Oil & Gas Professional Services
+54 11 5218 9332 +54 11 5218 8571
aondarra@invest.org.ar atahta@invest.org.ar 12Rodolfo G. Villalba
Executive Vice President
rvillalba@invest.org.ar
Miguel Mitre
Analyst Asia
mmitre@invest.org.ar
www.investandtrade.org.ar
InvestTradeARG
13APPENDIX
14According to private projections, economic growth combined with reduction in subsidies
to consumers should reduce the primary fiscal deficit from 4.8% to 0.9% of GDP by 2021
Relationship between primary revenues, expenditures
and fiscal deficit (% of GDP)
23.4
24 22.4
21.7
22 20.6
19.4 18.9
20 18.6 18.3 18.6 18.4 17.9 Expenditures
18 4.8
4.1 Primary revenues
4 3.1 18.0
2.2
1.5
2 0.9
Fiscal deficit
0
2016 2017 2018 2019 2020 2021
3.6% 3.8% 3.2%
3.1% 3.1%
GDP Growth
-2.0%
Source: Morgan Stanley 15A number of regulatory initiatives have been or are in the process of being
implemented to foster a better business and investment climate
UNDER CONGRESSIONAL
ALREADY IMPLEMENTED REVIEW UPCOMING
✓ Normalization of Foreign Exchange Market – removal of capital • “First Job” Law – tax • Cultural Patronage Law –
controls and exchange rate unification credits and subsidies for tax incentives for private
companies who employ 18 companies to finance
✓ Removal of Export Taxes on Mining and Industrial Products
– 24 year olds cultural projects
✓ Reduction of Agricultural Export Taxes
• “Simplified” Stock • Transparency in Public
✓ New Import Regime (“SIMI”) – clarification of goods requiring Company Law – new Works Law – stipulates a
non-automatic import licenses, all other goods require only an company type to facilitate requirement that all the
automatic license the establishment of start- administrative steps for
✓ Rural Land Law – implementation of a more flexible system for ups (online registration, public works be made
productive use of rural land by foreigners ability for employees to public
receive stock as
✓ Tax Amnesty Law – tax incentives for Argentines to repatriate compensation)
assets held abroad and invest in Argentina’s economy
• Venture Capital Law –
✓ SME Promotion Law – reduction of income tax and increase in creation of funds backed
financing options for SMEs by the government and
✓ Automotive Parts Production Law – incentives for automotive with incentives for
industry when buying local production investors to foster
Argentine
✓ Access to Public information Law – stipulates a requirement that
entrepreneurship
all public information requested of the government be provided
(or denied with a specific reason) within 15 days
✓ Public-Private Partnership (PPP) Law – measures to facilitate
and incentivize fruitful investment partnerships between public
and private sector
16Financial markets have been eager lenders to the government and Argentine
companies
RECENT DEBT PLACEMENTS
Bond Issuer Date of issue
Millons Maturity
Av. cost COMMENTARY
USD (years)
SOVEREIGN
✓ Argentina was the emerging market
Argentine Republic April 17, 2016 16.500 3, 5, 10, 30 7.2%
with the most debt placements in H1
5.625%
Argentine Republic January 26, 2017 7.000 5, 10
6.875% 2016 with USD 23 Bn in total
SUB-SOVEREIGN placements (20% share)
Buenos Aires Prov.
March 9, 2016
February 7, 2017
1.250
750
6–8
6
9.375%
6.6%
✓ Issuers included sovereign, sub-
Neuquén May 5, 2016 235 12 8.62%
sovereign and prime corporations and
Mendoza May 12, 2016 500 8 8.375% many of them were oversubscribed
Ciudad de Buenos Aires May 25 2016 890 11 7.625% ₋ The federal government
Córdoba June 3, 2016 725 5 7.125% received offers for USD 69 Bn,
Salta June 30, 2016 300 8 9.125%
implying an oversubscription of
Chubut July 18, 2016 650 10 7,75%
4.2x
Chaco August 11, 2016 250 8 9.5%
Santa Fe October 25, 2016 250 10 6,9%
₋ Buenos Aires Province was
Entre Ríos February 1, 2017 350 8 8.75% oversubscribed by 3x, Neuquén
CORPORATE by 6.3x, Mendoza by 4.6x
IRSA March 17, 2016 300 1–4 8.75% ₋ Cablevisión was oversubscribed
YPF March 23, 2016 1000 5 8.5%
by 7.0x
Cablevisión June 8, 2016 300 5 6.5%
Arcor S.A. June 22, 2016 300 4 9.125%
YPF June 30, 2016 750 4 9.125%
Arcor S.A. March 23, 2016 1000 5 8.5%
17Argentina has recently passed a law to promote Public-Private Partnerships
Objective: Increase private investor participation in a variety of
projects promoted by the Argentine government across sectors
• Public sector: access to the experience, efficiency and financing of the private
sector
Benefits
• Private sector: ability to participate as an investor in public projects under clear
guidelines and foreseeable streams of payments
• Any private or semi-private company and any public sector entity is allowed to
participate through a variety of investment vehicles (e.g. existing societies, trusts
etc.)
• Ample guarantees to ensure that contract obligations are met and payments made
• Limits the state’s ability to unilaterally change contract terms or alter the
Provisions economic equilibrium of the agreement (e.g. 100% compensation will have to be
paid prior to takeover of assets)
• Allows for contracts to be agreed to and payments to be made in foreign currencies
• Dispute resolution can be sought from technical panels and/or
national/international tribunals
18We have very attractive renewables and unconventional O&G markets under
development
Power generation: renewables target of 20% of Unconventional O&G: “Vaca Muerta” play has
consumption shall be met by 2025 world-scale potential
Installed Capacity Addt’l Capacity Shale Oil Reserves Shale Gas Reserves
(GW) 54 (Bill. Barrels) (Trill. Cubic feet)
10 10 GW 75 1,135
1 1,5 GW
33 58
Renewable 802
1 18 8 GW
707
Nuclear 665
10
Thermal 32
27
Hydro 22 25 3 GW
2015 2025 Russia USA China Arg China Arg AlgeriaRussia
• Investments of USD 15 Bn needed to meet renewables • Argentina holds the world’s 2nd largest technically
target recoverable shale gas and 4th largest shale oil reserves
• Great conditions for wind, solar, biomass and small hydro • Vaca Muerta has 4+ years of cumulative development
• Government commitment and support: - Area of 30,000 km2 with ~300m of shale layer at
~3,500m of depth (with 3-5% of total O&G content)
- Competitive prices under guaranteed long term PPAs
- JVs between YPF and Chevron, Dow, Pampa, Petronas
- Tax incentives (accelerated depreciation, levied import duties, etc)
- Financing for renewable energy projects • The Government has preagreed modifications to the
Vaca Muerta collective bargaining agreement: gas price
• >10GW of large baseload plants (thermal/hydro) needed
will have longer predictability, and labor costs and
productivity will be improved
Source: Ministry of Energy and Mining, EIA 19Argentina has 300+ GW potential in renewable energies distributed across different
regions in the country*
SOLAR
• High solar radiation levels found in
flat terrains with good altitude and
BIOMASS low humidity levels
• Wide availability of sugar cane • High capacity factors for Solar PV
bagasse and agricultural residue
• Significant forestry coverage and
wood production in NE and south MINI - HYDRO
regions (eg. Tierra del Fuego)
• Wide availability of
mini-hydro projects
with high capacity
GEOTHERMAL factors (over 50%)
• High quality geothermal resources
located in the Central Andes region.
• The area hosts almost every basic
WIND
geothermal element such as volcanoes,
fumaroles, hot springs and geysers • Year-round strong and stable
winds reflected in capacity
factors of 35%+
• Favorable terrain conditions
(include rounded hills, open
plains and extensive shoreline)
* Excluding biomass
Source: Universidad del Comahue, IEA, Enel
20Argentina has the highest wind power potential in the region
• Patagonia Region has very stable and strong winds throughout the entire year (with
average winds of over 9m/s)
• Windfarms with capacity factors ranging from 35% to 50%
Selected Countries: Wind Capacity Factors (%) Argentina: Average Windspeed Map
50
47
44
15
37
35
33
23
20 19
35
Arg Uru Per Bra Mex Chl USA Chi Ger
CF Source: Project public data / BNEF; Map: Centro Regional de Energía Eólica 21Argentina also has the second highest solar power potential in the region
• Northern Region has exceptional radiation levels and terrain conditions, comparable to
those in the Atacama desert in Chile
• PV capacity factors expected to range between 25% and 33% (with tracker)
Selected Countries: Solar Capacity Factors (%) Argentina: Average Solar Radiation Map
34 33
31
8
20 20
16 17
15
12
25
Mex Arg Chl Bra Per Uru Ger Chi Jpn
CF Source: Project public data / BNEF; Map: National Renewable Energy Laboratory (NREL) 22Recent tenders in renewable and thermal energy were heavily oversubscribed
Renewable Energy (RenovAr Rounds 1 and 1.5) Thermal Energy
1 GW Capacity called for tender Awards ✓ Auction initially contemplated
59 Projects increasing installed capacity by 1
TOTAL
123 Projects presented AWARDED
2,423 MW
8,268 MWh/yr
GW, but ended up awarding 2.8 GW
due to high demand
Wind
x 6.3 Oversubscribed 22 Projects
✓ Results:
1,472 MW
5,827 MWh/yr
• Total of 2.8 GW awarded
Solar PV 24 Projects
916 MW • 6.6x oversubscribed
2,192 MWh/yr
• 20% offers coming from new
Biogas 6 Projects players
9 MW
67 MWh/yr • Pricing ~32% cheaper than
Biomass 2 Projects previous auction
15 MW
117 MWh/yr
Small Hydro 5 Projects
11 MW
65 MWh/yr
For specific information on the Renewable Energy awarded projects, please see the RenovAr Brochure
developed by the Udersecretariat of Renewable Enery, Ministry of Energy and Mines 23We have great mining potential, with abundant reserves of lithium, copper, silver, gold
and potassium
Significant mining potential with ~75%
unexplored surface Important opportunities in lithium, copper, silver and gold
World
• 750,000 Km2
of high Thousand tonnes
Ranking
potential mining areas 11x
Lithium Current 13 #3
• 183,000 Km2 of already Potential 148 #2
granted mining rights
- 25 advanced prospects Thousand tonnes
9x
# 20
- 14 production mines Copper Current 110
#6
Potential 856 100 956
Gold Tonnes
Copper
Current 3x # 10
Uranium Silver 756
Potential 1,417 800 2,217
#5
Polymetallic
Lithium Tonnes
Lead-Zinc
Iron Gold Current 53 2x # 14
Prospective areas Potential 76 31 107 #9
• ~65% of the mining surface remains unexplored • USD 30 Bn+ needed to develop copper, silver, gold, lithium,
potassium and other opportunities
• No export taxes for mining products
• There are 40+ projects with PEA and onward
Source: Ministry of Energy and Mining USGS • There are 340+ projects in initial stages 24There are at least 7 world class Copper projects in advanced stages, and 85 projects in early
stages underway
Our 7 projects in advanced stage are
85 projects in early stages in several provinces exploitable in the near future
• 23 in Salta • 8 in Mendoza • 1 in La Pampa
• 17 in San Juan • 7 in Jujuy
• 11 in Catamarca • 6 in Neuquen
• 10 in La Rioja • 2 in Chubut
Advanced Projects Company Metals Province State
Agua Rica Yamana Gold Cu, Au, Mo, Ag Catamarca Feasability
El Pachón Glencore Cu, Mo, Ag San Juan Feasability
San Jorge Solway Investment Ltd Cu, Au Mendoza Pre-Feas.
Taca-Taca First Quantum Cu, Au, Mo, Ag Salta Feasability
Josemaría (las Vicuñas, Las Flechas) NGEX Resources Cu, Au, Ag San Juan PEA
Los Azules McEwen Mining Cu, Au, Ag San Juan PEA
El Altar Stillwater Mining Corp. Cu, Au San Juan Adv. Exp.
25Argentina has the 3rd largest brine Lithium resource; alongside Bolivia and Chile we form the
Lithium Triangle
There are 7 projects in pilot stage
Company Salar Tn/yr
Orocobre Ltd. Toyota S. Olaroz Cauchari 20k
FMC S. Del Hombre Muerto 20k
Enirgi Group S. Rincón 20k
25 Projects in early stages Ganfeng Lithium S. Llullaillaco 20k
• 5 in Jujuy Eramet / Eramine S. Centanario 20k
• 15 in Salta SQM S. Cauchari Olaroz 20k
• 5 in Catamarca Galaxy Resources Ltd. S. Del Hombre Muerto 20k
26There are vast agribusiness opportunities in land irrigation, cattle raising, forestry &
cellulose and food industrialization
Argentina has excellent agriculture conditions and full There are still many opportunities for further
government support development
Argentina´s food production capacity 2016 Argentine production
(Million people) Development of more than 4 Mn Ha
56 Mn tons production with artificial irrigation
1.5X 1st soy oil exporter (6 Mt)
600 Potential investment: USD 8 Bn
2nd soymeal exporter (32 Mt)
3rd bean exporter (12 Mt)
400
Cattle raising expansion – 10 Mn head,
28 Mn tons production
200 K swine and 1,5 Bn poultry
3rd world exporter (17 Mt)
Potential investment: USD 10 Bn+
2.8 Mn Tons produced
11th meat exporter (265 MT) Expansion of the forestry and cellulose/
2015 2025 paper industry, biomass energy and
housing. Raw material: 4-5 Mn m3/year
• Farming conditions:
Potential investment: USD 2.5 Bn
- Mild Climate with abundant rainfall
Potential and incentives to consolidate
- Rich soils with low fertilizer needs
as significant player and develop 300k
- Exceptional human resources, long farming tradition tons of aquaculture
- High technology adoption in crop genetics (>65% GMO)
Potential investment: 1 Bn+
- Unparalleled logistics with 100% storage capacity
• Government support: one of the first measures adopted by Increased food industrialization (milling,
President Macri’s administration was the elimination of wine, canned and frozen food)
export taxes to wheat, corn, meat and regional products Potential investment: USD 0.5 Bn+
Source: Ministry of Agroindustry 27In professional services, we have become a hub for large companies’ shared service centers
Argentina has a number of distinct benefits for the Dozens of companies across industries have
establishment of shared service centers established their shared service centers in Argentina
• Ample supply of talented and English speaking workforce 40+ shared service centers in Argentina, including
- 110K higher education graduates per year
- 15th in the world in terms of English proficiency (1st in
LatAm)
- 98% literacy rate countrywide
• Located in a convenient time zone 1000 employees providing IT, 650 employees providing
- Entire Americas and Europe within +/- 5 hours* research, credit analysis and IT, tax & project
- NYC / Washington D.C. / Boston are at -1 hour processing services (opened management services
- London is at +4 and Continental Europe at +5 hours in 2015) (opened in 2012 )
• Availability of high-quality affordable urban office space
- Buenos Aires office space is cheaper than Rio de
Janeiro, Sao Paulo, Bogota, Santiago and Mexico City
- Tax incentives exist for companies installing themselves
in certain areas of Buenos Aires (e.g. new technology
district)
400 employees providing IT 120 employees providing
• Developed mobile and broadband infrastructure
and accounting services admin, procurement and
- 75% of population with broadband access (opened in 2006) billing services (opened in
- 141% mobile phone penetration with wide cell service 2006)
availability
*Differences can shift by +/- 1 hour during daylight savings time
Sources: UN, GSMA, press releases 28In infrastructure, we have ambitious development plans for roads & highways, railways
and airports
Roads: improvement and construction Freight rail: rehabilitation of the entire Airports: modernization & increased
of roads & highways network flight usage
• ~40% of roads are currently in poor • Only 5% of freight is transported by • Growth by 2x of air traffic expected
conditions railway (18 Mn tones) by 2020 (10 Mn to 20 Mn
• Only 2,800km of highways in place passengers)
• Average speed of ~12-15 km/h
• Plan 2027: • Expanded international connections
• Plan 2027:
- 11,400 km of total highways - 10,000 km of refurbished rails • Plan 2019:
- 13,000 km of roads in good conditions - 80-100 Mn tones transported - 14 airports modernized by 2019
- Investment of USD 28 Bn - Investment of USD 15 Bn - Investments of USD 900 Mn
2015 2027
Passenger rail: new developments
Ports
• The Regional Express Network (RER)
is a USD 8.5 Bn urban passenger • Port of City of Buenos Aires bid
investment
Source: Ministry of Transportation 29There are a number of public tenders planned in the short term across sectors
Transportation Federal Infrastructure Energy Real Estate & Tourism
Passenger rail rolling stock Thermal Tender (large high
efficiency projects -
Waste-to-energy electricity >700MW)
Nationwide road concessions plants Housing public works
First HV Transmission Grid
Stage 2 Belgrano Cargas Health related public works Tender Cafayate tourism project
H2 2016 & H1 2017
freight
Education related public “Portezuelo del Viento” Various real estate projects
works multipurpose dam in Buenos Aires City (e.g.
Regional Express Railway
Renewable energy (solar, Huergo Project, Colegiales
wind, hydro, biomass etc.) Station, Houssay Square…)
Port of Buenos Aires
concession Seismic evaluation for
offshore O&G
Buenos Aires Subway Nationwide irrigation
construction & renovation systems “Potrero del Clavillo”
multipurpose dam Various real estate projects
6-8 Vaca Muerta play tender in Provinces (e.g. North Port
Further freight rail projects
Rosario, Mendoza Station…)
(e.g. San Martin Cargas,
Urquiza Cargas)
H2 2017
RenovAr Plan Round 2
Note: All tender dates are tentative and approximate; includes only selection of opportunities. Thermal energy tenders to be determined. 30You can also read
