Upload
leon-robin
View
217
Download
0
Tags:
Embed Size (px)
Citation preview
Peru: Investment opportunitiesHarry ChangDirector of Investment Promotion
March 2011
1. Internationally acknowledged macroeconomic stability
WHY INVEST IN PERU?
2. Friendly investment environment
3. Open trade and market access policy
4. Foreign Direct Investment
5. Investment opportunities
Peru has recorded the highest annual average real GDP growth
in Latin America in the last decade
2009 / 1990 2009 / 2000
1 Chile 5,06 Chile 2,97 Peru 1,72
2 Uruguay 3,79 Peru 2,69 Ecuador 1,63
3 Colombia 3,51 Argentina 2,52 Uruguay 1,60
4 Ecuador 2,96 Uruguay 2,46 Colombia 1,54
5 Peru 2,94 Colombia 2,04 Argentina 1,53
6 Argentina 2,91 Ecuador 2,01 Chile 1,50
7 Brazil 2,79 Bolivia 1,96 Venezuela 1,46
8 Mexico 2,75 Brazil 1,96 Brazil 1,45
9 Paraguay 2,37 Mexico 1,86 Bolivia 1,43
10 Bolivia 2,30 Venezuela 1,78 Paraguay 1,36
11 Venezuela 2,27 Paraguay 1,54 Mexico 1,27
1/ On a constant purchasing power basis.
2009 / 1980
GDP per capita increase 1/
Latin America: Average GDP Growth 2001-2009(Real % Change)
5,4
4,54,1 4,1 3,9 3,8 3,6
3,22,9 2,8
1,4
Source: WEO - IMF, April 2010.
1. MACROECONOMIC STABILITY
Peru is one of the fastest growing economies in the World
Fuente: FMI – Abril 2010 4
59,2
39,932,8 31,1
13,2
0
30
60
90
120
Chi
naIn
dia
Vie
tnam
Kuw
ait
Per
uB
ang
lad
esh
Lib
yaD
om
inic
an.R
epu
…Z
amb
iaE
gyp
tA
rgen
tina
Mo
rocc
oR
ussi
aP
hilip
pin
esM
old
ova
Tuni
sia
Turk
eyB
ulg
aria
Lith
uani
aC
olo
mb
iaB
osn
ia.a
nd.H
erz…
Ho
ng K
ong
SA
RM
aurit
ania
Ko
rea
Ken
yaS
out
h A
fric
aU
krai
neC
hile
Nep
alV
enez
uela
Sau
di A
rab
iaB
razi
lF
orm
er …
Cro
atia
Aus
tral
iaLu
xem
bo
urg
Irela
ndN
icar
agua
Sp
ain
Hun
gar
yC
anad
aU
nite
d S
tate
sS
witz
erla
ndM
exic
oU
nite
d K
ing
do
mF
ranc
eJa
mai
caTh
e B
aham
asG
erm
any
Italy
Accumulated GDP Growth 2002-2009(Var. %)
1. MACROECONOMIC STABILITY
(Average annual CPI inflation during 2001 – 2009 in %)
Ve
ne
zue
la
Arg
en
tina
Ecu
ad
or
Uru
gu
ay
Pa
rag
ua
y
Bra
zil
Co
lom
bia
Bo
livia
Mé
xico
Ch
ile
Pe
ru
21.3
9.7 9.0 8.9 8.16.8
5.7 4.8 4.53.1 2.2
Peru also recorded the lowest annual average inflation in Latin America in the last decade…
1. MACROECONOMIC STABILITY
Private investment(% GDP)
Balance of Trade (US$ Million)
Source : Central Reserve Bank of Peru
1. MACROECONOMIC STABILITY
Source : Central Reserve Bank of Peru
*Projections * Projections
20002001
20022003
20042005
20062007
20082009
2010*2011*
2012*-5,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Total exports Total imports Balance of Trade 2000
20012002
20032004
20052006
20072008
20092010*
2011*2012*
0.0
5.0
10.0
15.0
20.0
25.0
…growth has been driven by rising investment and labor productivity and sustained corporate sector confidence
…has supported a massive growth of consumption markets outside Lima
2000 2010
2005 Poverty
Poverty > 50%
2010 Poverty1
1/ Expected.
Source: National Bureau of Statistics, National Electoral Tribunal
Sustanined growth has promoted a dynamic increase in employment, a steady decline in poverty, and a reduction in inequality
Net International Reserves(US$ Million)
Source : Central Reserve Bank of Peru*Projection
Latin America benchmarkingInvestment grade
Source : Standard & Poor`s, Fitch Ratings y Moody´s
20002001
20022003
20042005
20062007
20082009
2010*2011*
2012*0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
Peru has obtained investment grade from all major rating agencies
1. MACROECONOMIC STABILITY
Country S&P Fitch Moody´s
Chile A+ A Aa3Mexico BBB BBB Baa1Peru BBB- BBB- Baa3Brazil BBB- BBB- Baa3Colombia BBB- BB+ Ba1Venezuela BB- B+ B2Argentina B B B3Bolivia B B+ B1Ecuador B- B- Caa3
Peru offers a favorable legal framework for foreign investment ... Recognition of a favorable Investment environment
Legal Framework: Constitutional provisions, “Law for the Promotion of Foreign Investment”, Legislative Decree N° 662, “Framework Law for Private Investment Growth”, Legislative Decree N° 757, “Law for the Promotion of Private Investment in Infrastructure and Public Service Works”, Approved by Supreme Decree N° 059-96-PCM
2. FRIENDLY INVESTMENT ENVIRONMENT
Non discriminatory treatment. Peru offers to foreign investor the same treatment as local investors. Unrestrictive access to most economic sectors * Free transfer of capital Free competition. Guarantee for Private Property Freedom to purchase stocks from locals. Freedom to access internal and external credit. Freedom to pay royalties. Network of investments agreements and member of ICSID and MIGA Legal Stability Agreements Peru is adherent to the OECD Declaration on International Investment and Multinational Enterprises.
*Investments that require authorization: Located within 50 km in the border line and those destined to arms, ammunitions and explosive. Likewise, a principal local partner for investments in radio and television as well as in air transport is required.
Peru has signed Bilateral Investment Treaties (BIT) and Free Trade Agreements that underpin its liberalization policy.
Australia China* Korea Malaysia Singapore* Thailand Japan Argentina
Bolivia Chile* Colombia Ecuador Paraguay Venezuela
Cuba El Salvador
Germany Belgium and Luxemburg Denmark Spain Finland France Nederland Italy Norway Portugal United Kingdom Czech Republic Romania Sweden Switzerland
Canada* United States*
* FTA
2. FRIENDLY INVESTMENT ENVIRONMENT
It has also signed double taxation agreements with Brazil, Chile and Canada.
… we have complemented our open trade policy with Investment Agreements
Peru ranks second place in the region as attractive country for investments.
And also is one the countries that improved its ranking the most.
Source: Doing Business 2011
Brasil
Argentina
Panamá
Chile
Colombia
Perú
México
117
115
72
43
39
36
35
“Ease of doing business” ranking 2011
Peru
2011 2010
DOING BUSINESS 36 46
Starting a business 54 103
Dealing with Construction Permits 97 103
Registering Property 24 28
Trading Across Borders 53 80
2010 – 2011 Comparison
2. FRIENDLY INVESTMENT ENVIRONMENT
Peru is the second most attractive country for investing in the region.
Perú18%
Uruguay, 2%
Argentina8%
Brasil,41%
Chile13%
Colombia14%
México,2%
Paraguay1%
Otros1%
Source: Pricewaterhouse Coopers 2010. (200 CEOs in LA survey)
2. FRIENDLY INVESTMENT ENVIRONMENT
…but there is no room for complacency, and we are working on further improving the investment climate
3. PREFERENTIAL ACCESS TO THE MOST IMPORTANT MARKETS
An economy working to become globalized and with access to the world’s largest markets and trade blocs.
Agreements n force Agreements soon enter into force
Agreements under negotiationsTranspacific Partnership Agreements (Vietnam, Brunei, Darussalam, Australia,Malaysia, New Zeeland, Chile, EEUU, Peru)FTA Central America
Source: Central Reserve Bank of Peru
Peru’s imports structure is strong in raw and intermediate materials as well as capital goods for Industry development.
Building materials
$854 12%
For agriculture$72 1%
For industry$ 4498
66%
Transportation equipment
$ 1426 21%
CAPITAL GOODS IMPORTS -2009( FOB VALUES IN MILLIONS OF US $)
Fuels$2929
29%
For agriculture$773
8%
For industry$6375
63%
RAW MATERIALS AND INTERMEDIATE GOODS IMPORTS -2009
(FOB VALUES IN MILLIONS OF US $)
IMPORTS STRUCTURE
3. PREFERENTIAL ACCESS TO THE MOST IMPORTANT MARKETS
Source: Central Reserve Bank of Peru
Peru’s Exports are led by the Mining Sector (62.7%), followed by Petroleum and Gas (8.6%) and Fishing, basically fishmeal and fish oil (7.7%)
Fishing, 7.7%
Agricultural, 1.2%
Mineral, 62.7%
Petroleum and natural gas, 8.6%
Agriculture and livestock, 5.7%
Textile, 4.3%
Chemical, 3.4%
Basic metal industries and jewelry, 2.5%
Fabricated metal products and
machinery, 1.1%
EXPORTS -2010I SEMESTER
EXPORTS STRUCTURE
3. PREFERENTIAL ACCESS TO THE MOST IMPORTANT MARKETS
Trade Peru – United States
BILATERAL TRADE(US$ MILLIONS)
Main Exports
Gold
Copper
Petroleum derivatives
Clothing
Vegetables
Main Imports
Mechanical devices
Petroleum derivatives
Plastic, rubber
Vehicles2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
-2,000
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Imports Exports Trade balance
Source: Proinversion
COMMERCE4%COMUNICATION
19%ENERGY
14%
FINANCE15%
INDUSTRY15%
MINING21%
OIL2%
SERVICES3%
TRANSPORTATION2%
HOUSING3%
OTHERS8%
FOREIGN DIRECT INVESTMENT 2009BY SECTOR ( US $ MILLIONS)
Peru reached US$ 18,840 millions in Foreign Direct Investment in 2009. Spain (23%), United Kingdom (20%) and USA (15%) as the most important investors. The main sectors involved were Mining (21%), Communications (19%), Industry (15%), Finance (15%).
SPAIN23%
UNITED KINGDOM20%
USA15%
HOLLAND7%
CHILE7%
PANAMA5%
COLOMBIA4%
BRAZIL3%
MEXICO2%
SINGAPORE2%
CANADA2% SUISS
2%
URUGUAY1%
FRANCE1%
OTHERS6%
FOREIGN DIRECT INVESTMENT 2009(US $ MILLIONS)
4. FOREIGN DIRECT INVESTMENT (Only Equity)
…it is therefore not surprising that Peru keeps attracting large FDI inflows
PROINVERSIÓN offers its services, free of charge, for the installation of companies in the country throughout its three stages: Pre-establishment, establishment and post-establishment.
PRE-ESTABLISHMENT
ESTABLISHMENT
POST-ESTABLISHMENT
General and specific information service for the potential investor.
Preparation of agenda for potential investor: potential partners, suppliers, clients, authorities, associations, unions, etc.
Guidance, coordination and facilitation in obtaining municipal permits and licenses for installing an industrial or commercial plant.
Contact and assistance to visit the regions and the company’s potential production and/or exploitation areas .
Migratory proceedings for business executives’ entry and stay. Guidance for obtaining special permits.
Establishing a contact network with public and private companies. Aiding in business expansions. Identifying administrative barriers.
4. SERVICE OR ASSISTANCE TO INVESTORS
Main Investment Opportunities by Sectors
MAIN PROJECTS IN PROGRESS/TO BE BUILT IN 2010-2011.
Project Company Location Sector Total Investment(US$) 1/
Las Bambas Xstrata Copper Apurimac Mining 4.5 billion
Toromocho Chinalco Junín Mining 2.2 billion
Antapaccay Xstrata Copper Cuzco Mining 1.5 billion
Antamina Antamina (Xstrata, BHP, Teck, Mitsubishi) Ancash Mining 1.3 billion
Fertilizer plant CF Industries Ica Petrochemistry 1 billion
Cerro Verde Cerro Verde (Freeport Mc Moran) Arequipa Mining 50 million / 1
billion
Camisea Cashiriari Pluspetrol Camisea Cuzco Hydrocarbons 740 million
TGP II TGP (Tecgas, Hunt) Lima, Ica Hydrocarbons 720 million
Ammonium nitrate plant Nitratos del Perú (Brescia and Sigdo Koppers) Ica Petrochemistry 650 million
Lima Electric Train Odebrecht Lima Infrastructure 500 million
Bayóvar Vale Piura Mining 479 million
Olmos Odebrecht Lambayeque Infrastructure 470 million
Road Network 4 OHL Concesiones La Libertad, Ancash Infrastructure 360 million
Source: companies, media, APOYO Consultoría1/ Investment throughout the construction period.
Natural greenhouse.
The best agricultural yields in the world.
Sugar cane (1st)
Asparagus, olives and artichokes (3rd)
Grapes (5th)
Seasonal windows in the most important markets.
Projections expect that the 90,000 ha currently used for agro exports to double as consequence of large irrigation projects in portfolio.
Over US$ 2,5 billion in exports of fresh and processed products to over 113 countries.
Products with high export value.
AGRIBUSINESS SECTOR
PERÚ: UN CAMPO FERTIL PARA SUS INVERSIONESPERÚ: UN CAMPO FERTIL PARA SUS INVERSIONES
FISHERIES SECTOR
Extensive fishing coast (3,080 km) and “water mirrors” that offer adequate conditions for the development of marine and continental aquaculture.
first producer of fishmeal and fish oil in the world.
Distribution of Peruvian fisheries products to over 100 countries.
Trend towards product diversification.
MINING SECTOR
Polymetallic country, third in gold, silver, copper and zinc reserves.
Only 20% of territory with mining potential has been explored.
First silver world producer.
In Latin America: 1st gold, zinc, silver, tin and lead producer. 2nd copper and molybdenum producer.
The investment in the sector exceeded US$ 14 billion between years 1999 and 2009 and it is projected an investment of US$ 37 billion in the coming years.
Peru is one of the few countries with non-metallic minerals deposits.
• Sole sustainable natural gas source in the cost of the South-American Pacific Ocean.
• Expansion of gas pipeline to the Marcona and Ilo area: Development of Petrochemical industry and products: Fertilizers, plastics, synthetic fibers, etc.
• Progress in energy grid transformation and LNG export.
• Exploration continues in areas adjacent to natural gas and liquid deposits of Camisea.
• Scheduled investments for over US$ 6.0 billion for petrochemical industry development and LNG export: CF Industries, Orica, Grupo Brescia with Sigdo Koppers Group, Braskem.
HYDROCARBON SECTOR
TEXTILE SECTOR
Recognized quality of Peruvian pima cotton, considered one of the most demanded and finest fiber in the world.
First world producer of the finest South American camelids fibers: alpaca and vicuna.
Long textile tradition, favors workforce professionalization and training.
International recognition as “full package” supplier of the best brands in the world.
Sound trend towards exports growth, reaching its maximum level in 2008: US$ 2 billion.
FORESTRY SECTOR
Presence of great biological diversity and highly valued timber.
Development of hard tropical timber in the forest and soft timber in the highlands of the country.
2nd country with the largest natural forest area in Latin America.
78,8 million ha of natural forests, 10 million ha for reforestation and other areas for afforestation (plantations).
Forestry products exports grew to US$ 296 million in 2009.
Investment opportunities in industrial timber complexes.
Important cultural destination due to Inca and Pre-Inca cultures archaeological sites.
Machu Picchu was chosen as one of the new 7 Wonders Worldwide.
Diversity of natural landscapes.
Destination for bird and orchid watchers.
Lima is the gastronomic capital of Latin America.
Peru has the largest number of gastronomy schools in the world.
Significant investment in hotels of international recongnition.
Tourism attractions yet to be explored: North-Eastern tourism circuit: Kuelap, Sipan, Chan Chan, among others.
TOURISM SECTOR
Construction GDP annual average growth for 2010 is 14.4%.
Housing deficit affects 25% of households. Lima holds 25% of total deficit, and
48% of quantitative deficit.
There are several programs for housing financing, based on households’ socio-economic conditions and income level: Techo propio, Fondo Mi Vivienda and Commercial Banking.
Mortgage credits grew an average of 25% in the last 4 years; construction credits grew 33%.
REAL ESTATE SECTOR
PROJECTS IN PROINVERSION’S PORTFOLIO
PROJECTS GRANTED IN CONCESSION 2000-2010
NUMBER OF PROJECTS GRANTED IN CONCESSION
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
0
5
10
15
20
25
30
35
40
Venta de Acciones y/o Activos Concesiones Iniciativas PrivadasSale of Shares and/or Assets Concessions Private Initiatives
14 Concessions
US$ 2.55 billion in investment
commitments
CONCESSION US$ MM
NORVIAL (2002)Road Network Nº 5 73.1COVIPERU (2005)Road Network Nº 6 228.6IIRSA Norte S.A. (2005)Paita – Yurimaguas 218.9
Interoceánica Sur (2005)Section 2 263.0Section 3 332.4Intersur (2005)Section 4 214.6Concesión Canchaque (2005)Buenos Aires-Canchaque 31.1
Consorcio Interoceánico (2007)Section 1 98.9
Concesionaria del Sur (2007)Section 5 183.4
CONALVIAS-INFRACON (2008)Ovalo Chancay – Huaral – Acos 34.2
OHL (2008)Road Network Nª 4 370
OBRAINSA (2009)Nuevo Mocupe – Cayaltí – Oyotún 17.4
CONCESIONARIA VIAL DEL SOL (2009)Autopista del Sol 365.1IIRSA Centro, Section 2 (2010) 126
AWARDED ROAD CONCESSIONS
(2003 – 2010)
4 Concessions
DP WORLD PERÚ (2006)Callao Port Terminal – New Container Terminal – South Dock
US$ 617 MM
TERMINALES PORTUARIOS EUROANDINOS PAITA (2009)Paita Port Terminal
US$ 233 MM
TISUR (1999)Matarani Direct Docking Port US$ 31 MM
US$ 1.00 billionin investment commitments.
US$ 120 MMConsorcio Transportadora Callao (2010)Mineral Concentrates Shipping Terminal
AWARDED PROJECTS PORT SECTOR (1999 – 2009)
CONCESSION US$ MM
L.T. Mantaro – Socabaya (1998) 179
L.T. Socabaya – Moquegua; Moquegua – Tacna; and Moquegua – Puno (1999) 74.5
L.T. Oroya-Carhuamayo-Paragsha -Derivación Antamina (220 Kv); AND LT Aguatia-Pucallpa (138 Kv) (2001) 65.4
ETECEN AND ETESUR (2002) 10.5
L.T. Carhuamayo – Carhuaquero (2008) 106.14
L.T. Mantaro – Caravelí – Montalvo; and Machu Picchu Cotaruse (2008) 181
L.T. Chilca – La Planicie – Zapallal (2008) 52.2
L.T. Zapallal – Trujillo (2009) 167.5
Energy supply from new hydroelectric power stations(2009) 300
L.T. Chilca Marcona Montalvo (2010) 291
Tintaya- Socabaya transmission line (2010) 43.5
Strengthening of North system between Talara and Piura (2010) 14.5
Santa Teresa Hydroelectric Power Station (2010) 180
L.T. Machupicchu –Abancay-Cotaruse in 220 kV 62.5
Cold Power Generation Reserve 300
15 Concessions
US$ 2.02 billion in investment commitments.
AWARDED PROJECTS ENERGY SECTOR (1998 - 2010)
CONCESSION US$ MM
Consorcio Flughafen Frankfurt, Bechtel and Cosapi. (2000)Jorge Chavez International Airport
1,214
Consorcio Swissport GBH - Aeropuertos (2006)First Regional Airports Package
120
Second Regional Airports Package 257
AWARDED PROJECTS AIRPORT SECTOR (1999 – 2010)
US$ 1.59 billion in investment
commitments.
3 Concessions
PROJECT AWARD FITEL CO FINANCING (US$ MILLION)
Rural Broadband 07.26.07 8.9
Rural internet program 08.12.08 11.6
Broadband for isolated localities 02.12.09 48.8
Juliaca - Puerto Maldonado Rural Broadband 09.0810 8.9
Buenos Aires Canchaque implementation of Telecommunication Integrated services 10.29.10 15.9
Integration of Rural Areas and Locations of special social interest to the Mobile Network- South Centre 12.28.10 14.9
Integration of Rural Areas and Locations of special social interest to the Mobile Network-North Centre 12.28.10 17.1
Integration of Rural Areas and Locations of special social interest to the Mobile Network-Forest 12.28.10 14.7
Broad band for the development of the Valley of Apurimac and Ene Rivers 12.29.10 14.4
PROJECTS GRANTED IN CONCESSION TELECOMMUNICATION SECTOR (2007-2010)
….and over US$ 668 million in the allocation of 14 spectrums via public concession process.…And 4.3 MM in sale of ENTEL-CPT and Telefonica shares.
9 Concessions
155.2 M
PORTFOLIO PROJECTS FOR 2011
Projects in Proinversion’s Portfolio52 projects*
SECTOR N° PROJECTSESTIMATED
INVESTMENT (US$ MILLION)
Airports 1 379.0Agriculture 4 750.0Energy 12 5,160.0
Penitentiary Facilities 1 17.8
Railways 2 ---Real Estate 3 128.3Ports 8 1,220.7Sanitation 1 160.0Telecommunication 3 ----Tourism 2 810.6Land Transport 6 ---Capital Markets 4 ---Mining 5 300.0Total 54 8,926.4