Uruguay Additional Information. September 2009

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1 1 Uruguay Additional Information September 2009

2 2 Case Studies Successful Investments September 2009

3 Weyerhaeuser US-based company present in Uruguay since 1996; harvesting operations began in 2005.

3 3 Weyerhaeuser US-based company present in Uruguay since 1996; harvesting operations began in Weyerhaeuser Uruguay s total land base as of 2008 is 140,000 ha (346,000 acres), or 0,8% of the national territory. Of these 55,000 ha (136,000 acres) are planted with pine, eucalyptus and poplar. The plywood plant exported in 2008 USD 28 MM to Europe, Latin America and the United States.

4 4 Weyerhaeuser (2) At present, Weyerhaeuser has 450 employees in Uruguay, and 1,600 when including contractors. The company recently announced new industrial investments in renewable energies (power generation and fuels), engineered wood products and lumber.

Weyerhaeuser: Tax Incentives Awarded 5 The company was awarded investment promotion incentives in 1999, 2004 and 2008.

5 Weyerhaeuser: Tax Incentives Awarded 5 The company was awarded investment promotion incentives in 1999, 2004 and project s objectives: extension of the plywood production facility in Tacuarembó and addition of a new energy source based on wood residues and its sub products. Investment: USD 90 MM. Maximum exemption: USD 125 MM (corporate income tax, wealth tax, import taxes and VAT).

Tata Consultancy Services 6 2002: TCS chose Uruguay to set up its offshore global development center for Spanish-speaking customers (nearshore IT services, solutions

areas, having at present over 800 employees. TCS have their regional training center in Montevideo.

6 Tata Consultancy Services : TCS chose Uruguay to set up its offshore global development center for Spanish-speaking customers (nearshore IT services, solutions from Microsoft, SAP, Business Intelligence and Quality Consulting) Uruguay represents a strong platform for TCS in the development, financial, legal and training areas, having at present over 800 employees. TCS have their regional training center in Montevideo. Testimonial: Apart from security and good weather conditions in Uruguay, the advantages it offers as an outsourcing centre include a well-educated human resource and a time zone opposite to that of India, enabling a 24x7 service for customers.

Botnia / UPM Botnia runs a cellulose plant at their own FTZ; operations

(445,000 acres) of land, of which 60% are cultivated plantations, all

1990. At over USD 1,200 MM, the plant was Uruguay s largest investment

7 Botnia / UPM Botnia runs a cellulose plant at their own FTZ; operations started in It also owns 180,000 ha. (445,000 acres) of land, of which 60% are cultivated plantations, all FSC-certified, an investment that Shell and Finnish firm UPM started in At over USD 1,200 MM, the plant was Uruguay s largest investment ever, having an impact of 1.6% on Uruguay s GDP. To this we must add the investment by chemical company Kemira.

1 million tons of eucalyptus pulp per year, with chlorinefree technology.

8 8 Botnia / UPM (2) Also largest investment by a Finnish private company outside Finland, and the most efficient cellulose plant in the world. The plant has a capacity of 1.1 million tons of eucalyptus pulp per year, with chlorinefree technology. Exports in 2008: USD 762 MM. 4,000 direct employees and more than 3,700 indirect. Botnia was acquired by UPM in 2009.

Other corporate functions have also been transferred to Uruguay.

9 Sabre 9 Present in Uruguay since 2004, operating from a taxfree business park. Operations in Montevideo provide world-class customer support to airlines, travel agencies and hotels. Other corporate functions have also been transferred to Uruguay. With 880 employees, representing approximately 10% of Sabre s global workforce, Uruguay is the second largest location for the company after Dallas, TX. Sabre s Uruguay operation takes advantage of local language skills in several languages and also of Uruguay s time zone, in-between North America and Europe.

10 10 NZ Farming Systems Uruguay Ongoing investment by New Zealand dairy company NZ Farming Systems Uruguay. At present, 26 dairy farms, aiming at 49 by Investment so far, over USD 200 MM. 1 million hectares (2,5 million acres) of forest plantations, i.e. 6% of the territory.

11 Stora Enso / Arauco Stora Enso is a Swedish/Finnish company, present in Uruguay since 2004.

Uruguay for USD 344 MM, and thus accelerate their projects. The two companies have a land base of approximately 250.

11 11 Stora Enso / Arauco Stora Enso is a Swedish/Finnish company, present in Uruguay since In 2009 Stora Enso and Chilean company Arauco joined forces to acquire the majority of Spanish company Ence s operations in Uruguay for USD 344 MM, and thus accelerate their projects. The two companies have a land base of approximately ha (618,000 acres), or 1,4% of the national territory. Stora Enso and Arauco are now analyzing the potential location for the construction of a USD 1 billion+ pulp mill in Uruguay.

12 12 Pepsi Present in Uruguay since In 1993 a plant in Colonia s Free Zone started to manufacture Pepsi concentrate for export. The concentrate plant exported in 2008 USD 400 MM to Latin American countries, being the second largest exporter from Uruguayan territory. Pepsico Uruguay produces 21% of the concentrate utilized outside of the United States.

13 UME (Uruguay Mineral Exploration) 13 UME is a gold production and exploration company incorporated in Canada. UME operates the only producing gold mine in Uruguay and has assembled an exploration portfolio of gold, diamonds and base metal prospects. Operations started in Current N of Employees: 396. Activity: Exploration, extraction and processing of gold mineral. Project that applied for tax exemptions: the objective was to be able to maintain the production and sales over a five years period. Investment: USD 5 MM. Maximum exemption: USD 6 MM (corporate income tax, wealth tax, import duties and VAT).

Project that applied for tax exemptions : the objective was the renovation and

14 14 Conrad Resort & Casino (Hilton Hotels Corporation) Activity: Hotel and casino in Punta del Este. Operations started in Project that applied for tax exemptions : the objective was the renovation and improvement of the slots machines. Investment: USD 4 MM. Maximum exemption: USD 4.2 MM (corporate income tax, wealth tax, import duties and VAT)

Parque de las Ciencias Megapharma 15 The Sciences Park will be a life sciences and

15 Parque de las Ciencias Megapharma 15 The Sciences Park will be a life sciences and technology business park, targeting industrial projects, logistics and services. Awarded FTZ status in September Funded by German investors and developed by Megapharma, a strategic alliance of five pharma companies, including Roemmers. Focus on high-value added sectors such as life sciences (e.g. pharmaceutics, cosmetics, bio-technologies, veterinary, phytosanitary & medical devices) and technology (e.g. software, electronics, robotics.)

Parque de las Ciencias Megapharma 16 The initial investment

It will generate 750 direct jobs when operational.

units, transferring the production of 14 Latin American

16 Parque de las Ciencias Megapharma 16 The initial investment will be USD 93 MM, in two steps, with a plant of 40,000 m2. It will generate 750 direct jobs when operational. At this location, Megapharma will produce 60 MM pharmaceutical units, transferring the production of 14 Latin American countries to Uruguay. Other companies will be able to join the FTZ / business park.

17 17 Uruguay - Specific Opportunities and Recent Developments September 2009

18 Roads and Bridges 18 OPEN TO PRIVATE PPP PROPOSALS: CVU holds the concession of 1,500km (930mi) of highways and bridges. Currently 100% State-owned. Capex 2008/10: USD 265 MM. Financed through securitization of future toll collections.

19 Roads and Bridges (2) 19 BUSINESS OPORTUNITIES: 1) Financing 2) Roadworks 3) Management of toll collection system 4) Roadside assistance

20 Railroads 20 OPEN TO PRIVATE PPP PROPOSALS: AFE, a state-owned entity, runs Uruguay s railroads. CFU, also state-owned, was given the concession to build, maintain and streamline 1,000km (620mi) of AFE s railroad system.

21 Railroads (2) 21 BUSINESS OPPORTUNITIES: 1) Financing 2) Technical assistance, consulting 3) Construction 4) Supply railcars and specific supplies

22 Ports 22 Ports of Uruguay: 1. Montevideo 2. Nueva Palmira 3. Juan Lacaze 4. Colonia 5. Fray Bentos 6. Paysandú 7. Salto 8. La Paloma

23 Ports (2) 23 Program of modernization of the port of Montevideo: expansion of port Infrastructure New container terminal. Capurro Port project: 2 fishing terminals. Wood chips terminal. Dry port in Rivera (north of the country)

24 Ports (3) 24 Planned Investments Montevideo

25 Ports (4) 25 BUSINESS OPPORTUNITIES: 1) Regional Logistics Center 2) Financing 3) Construction 4) Dredging 5) Services and operation 6) Fishing and wood products companies

26 Water and Waste Water 26 BUSINESS OPPORTUNITIES: Construction of waste water treatment plants in Colonia, Mercedes and Artigas departments. Construction of water and waste water project for the Maldonado Punta del Este system. Water and waste water national plan, with a medium term investment of more than 700 MM USD.

27 27 Montevideo, Capital City Municipality of Montevideo 1 BUSINESS OPPORTUNITIES 1. Development opportunities for Punta Carretas area. 2. Buceo Port, seafood market and urban park. 3. Montevideo Bay coastal sector, port, towers, services. 4. Urban Mobility Plan, construction of segregated public transport lanes. 5. Development of industrial parks

Project in place: Zona Este Industrial Park.

28 Industrial Parks 28 CHARACTERISTICS: Projects in process: Pando Industrial Park. Pharmaceutical Industrial Park. Other projects in Montevideo, Salto, Colonia, Maldonado. Project in place: Zona Este Industrial Park. BUSINESS OPPORTUNITIES: 1) Construction and financing. 2) Management of industrial parks. 3) Opportunities for companies to join clusters.

persons 4 meeting rooms for 50 persons Lounge, Operators Room, Press Room Business centre Fairground Building

29 Punta del Este Convention Center and Fairground Project for construction, financing and management 29 Convention Centre Plenary hall for 2600 people Foyer with suitable exhibition areas 11 Breakouts of 100 to 300 persons 4 meeting rooms for 50 persons Lounge, Operators Room, Press Room Business centre Fairground Building Pavillion of 12,000 square meters Wide Foyer Lounge, Operators Room, Press Room Business centre Concession for 35 years.

Offices and Warehouse at Port 30 Lobraus office tower and

MM Warehouse: 25,000 m 2 Capacity 50,000 m 3 15-storey

country) Facility in Punta Sayago (Montevideo) Area:

30 Offices and Warehouse at Port 30 Lobraus office tower and smart warehousing in port of Montevideo Investment: USD 30 MM Warehouse: 25,000 m 2 Capacity 50,000 m 3 15-storey highrise with 8,000 m 3 Facility in Rivera (north of the country) Facility in Punta Sayago (Montevideo) Area: 100,000 m 2 Movement: 24,000 TEUS / year Looking for partner / financing

Renewable Energies 31 Characteristics: Electric energy contracts based on local renewable resources: Wind Biomass Micro hydroelectric Objectives: Diversify the energy matrix Take advantage of local

31 Renewable Energies 31 Characteristics: Electric energy contracts based on local renewable resources: Wind Biomass Micro hydroelectric Objectives: Diversify the energy matrix Take advantage of local resources Renewable energies Jobs creation Care for the environment BUSINESS OPPORTUNITIES: 1. Construction and management of wind farms with 150 MW capacity 2. Additional tenders are expected before the year 2015

Units to be revamped: coker unit with mild hydrocracker.

32 Deep Overhaul of Refinery 32 State-owned oil company has conducted feasibility studies to conduct a deep overhaul of the refinery. Units to be revamped: coker unit with mild hydrocracker. Estimated investment: USD 1 billion. Estimated date to start operations with the new configuration: 2016.

33 LNG Regasification Plant Ancap, together with Argentina s ENARSA, will run a tender for the supply, construction and operation of a liquid natural gas regasification

33 33 LNG Regasification Plant Ancap, together with Argentina s ENARSA, will run a tender for the supply, construction and operation of a liquid natural gas regasification plant in the upcoming months Send-out capacity for this plant is established at a minimum of 6 million m3/day and a maximum of 10 million m3/day. Scalable to 20 million m3/day.

34 Next completions 34 New service-oriented FTZs / business parks New airport terminal Port Terminal - Colonia Electricity Connection to Brazil Montevideo loop road

New terminal will open in October 10, 2009; designed by NYC-based Uruguayan architect Rafael Viñoly.

35 New Airport Terminal - Montevideo 20-year concession awarded via a public auction in 2003, to Corporación América, an airport operator that runs more than 40 airports worldwide. New terminal will open in October 10, 2009; designed by NYC-based Uruguayan architect Rafael Viñoly. Actual covered area: 45,000 m2 (484,000 sq.ft.), vs. 16,900 required for tender. Estimated total investment: USD 180 MM, partly financed with USD 87 MM of locally-issued bonds, of which 80%+ were acquired by foreign investors. 35

36 36 Ferry Port of Colonia New passenger port terminal in Colonia opening in September Will cater to Colonia Buenos Aires traffic. 7,000 m2 (77,500 sq.ft.) covered area. 2 MM passenger traffic in 2008, vs. 1.2 MM in 2005.

Sponsored by local and foreign investors. Scheduled to open at the end of 2009 and 2010, respectively.

37 37 Two new service-oriented Free Zones Aguada Park and World Trade Center Free Zones: technology and serviceoriented business parks that will operate under a free zone regime in the heart of the capital. Sponsored by local and foreign investors. Scheduled to open at the end of 2009 and 2010, respectively. Total investment: USD 65 MM. Will host 6,000 workers. 4 high-rises, total covered area 60,000 m2 (645,000 sq. ft.).

38 New Montevideo Loop Road and Double-Carriage Highways First stage of Montevideo Loop Road to open before end of 2009, linking major routes 5 and 8.

38 38 New Montevideo Loop Road and Double-Carriage Highways First stage of Montevideo Loop Road to open before end of 2009, linking major routes 5 and 8. Investment: USD 45 MM Double-carriage Montevideo Colonia road under construction. One of last segments opened in August Once fully complete, Colonia, Montevideo and Punta del Este will be linked almost entirely by a 300 km long (185 mi) double-carriage highway.

39 39 Electricity NEW CONNECTION TO BRAZIL New electric connection Uruguay Brazil being built by stateowned UTE, with a budget of USD 340 MM. This linkage will increase energy security in times of drought. EXPANDED GENERATION CAPACITY UTE is also expanding its electricity generation capacity by expanding Batlle power plant, with a budget of USD 80 MM. Eight new turbines will run on both oil and natural gas.

40 40 Uruguay Additional Information September 2009

Infrastructure Report Uruguay 2014

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