INFRASTRUCTURE INVESTMENT OPPORTUNITIES ESTIMATED INFRASTRUCTURE INVESTMENT USD 18.2 billion 1.1; 12% TRANSPORTATION URBAN TRANSPORTATION

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3 INFRASTRUCTURE INVESTMENT OPPORTUNITIES The Colombian economy has been considerably dynamic over the last few years: average growth rates in excess of 5% have been achieved, Foreign Direct Investment (FDI) has increased four-fold in 6 years, and exports have doubled during the same period. This trend has outpaced infrastructure development, which entails significant challenges over the next few years. In order to reduce the country s infrastructure gap, the Colombian Government has been working toward the implementation of large-scale projects to be developed through the private sector. It is estimated that in 2009 alone more than USD 18.2 billion will be invested in projects and programs in the areas of hydrocarbons, mining, energy, ports, roads, airports, urban transportation systems and other infrastructure needs. The current openness toward the private sector s participation in infrastructure development is clearly reflected in the investments anticipated in the different sectors for 2009, where 52% of overall investments, equivalent to USD 9.55 billion (4.2% of GDP), will come from the private sector. ESTIMATED INFRASTRUCTURE INVESTMENT ; 48% USD 18.2 billion 9.55; 52% PUBLIC INVESTMENT PRIVATE INVESTMENT PUBLIC INVESTMENT - USD 8.66 billion 5.7; 67% PRIVATE INVESTMENT - USD 9.55 billion 6.2; 65% 1.4; 16% 1.1; 12% 0.5; 6% 0.3; 3% 0.7; 8% 0.4; 4% 1.4; 14% 0.5; 5% WATER URBAN TRANSPORTATION MINING AND ENERGY TRANSPORTATION TELECOMMUNICATIONS The Colombian infrastructure projects portfolio is extensive and the Government facilitates the participation of local and foreign private investors through different types of incentives. In this document, you will find information on the most important infrastructure sectors and you will find out the most significant opportunities to invest in projects that will be carried out in Colombia in a near future.

4 WHY IS COLOMBIA AN INFRASTRUCTURE INVESTMENT OPPORTUNITY? Over the last few years, Colombia has lived through an all-time high growth and development phase. The great challenges ahead for our country in terms of competitiveness require sizable infrastructure investments and the active participation of the private sector, which has now been welcome to participate. There are a multitude of reasons that make investing in infrastructure in Colombia attractive, including: Foreign trade cargo handling increased by more than 35% during the last five years. Infrastructure as an anti-cyclical policy tool. Specially designed benefits to promote investment. Strategic geographic location ideal for international air freight or shipping companies to establish hubs or distribution centers. New and better cargo handling opportunities at Bogota s El Dorado Airport as a result of its increased capacity, turning it into the second largest in Latin America in terms of cargo handling. Boosting of intermodal freight transport, facilitating the complementarity and interconnection of the different freight transport methods. Promotion for the development of Specialized Infrastructure Logistics, identifying 9 top priority logistic platforms. Policies and extensive experience in well developed concession systems that afford transparent proceedings to foreign investors. The Government s goal is to build more than 200 km of double-lane highways per year. Concessions and operation of strategic public transportation systems in 12 Colombian cities. Expansion of the electric power generating capacity through the private sector, with 9 projects awarded in 2008, which will make it possible to build electric power plants capable of generating more than 3,400 MW. The Government s intention to turn the country into a miningenergy cluster. The launching of a Colombian communications satellite. Expansion of the postal services portfolio toward mail-based financial services and logistic, foreign trade and storage activities. Updated information on these and other projects can be found at:

5 WHY INVEST IN INFRASTRUCTURE IN COLOMBIA? Competitiveness and Drawing Investors IAIPI Position Colombia Peru Uruguay El Salvador Guatemala Argentina Venezuela Bolivia Mexico Brazil Chile Source: World Economic Forum: Global Competitiveness Report and Benchmarking National Attractiveness for Private Investment in Latin American Infrastructure GLOBAL COMPETITIVENESS INDEX IAIPI: Private Investment in Infrastructure Attractiveness Index. Colombia has created the proper incentives to draw private capital to its infrastructure projects, becoming one of Latin America s leading places when it comes to competitiveness and attractiveness for private investment in infrastructure. The country stands out for its high innovation potential, a key factor in improving its competitive position. International Level Position General Quality of Infrastructure: 83 Roads Railroads Ports Aerial Transport Energy Supply Technological Preparation CHILE MEXICO BRAZIL COLOMBIA Source: World Economic Forum: Global Competitiveness Report Despite the progress made, Colombia is still lagging behind in infrastructure, which constitutes an opportunity for the private sector to participate.

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8 TRANSPORTATION SECTOR CURRENT SITUATION AND GOALS Quality Indicator Colombian Transport Infrastructure at International Perspective (Infrastructure Quality) Colombia Chile Mexico Uruguay Argentina Ecuador Paraguay Peru Brazil Venezuela Roads Railways Ports Airports Source: Global Competitiveness Report l Quality Indicator: 1= Underdeveloped Infrastructure, 7= developed as the world's best and broadest. Million Toll Passes Vehicular Flow (Domestic Roads) Million Passengers Changes in Number of Passengers at Bus Stations Average yearly growth = 5.48 % up to JUL 2009 INVIAS INCO* Total Source: Transportation Department * Source: Transportation Department. * Does not Include Information on the Barranquilla, Riohacha, Yopal and Buga stations ,298 km of the arterial ways paved. LONG-TERM VIEW OF THE SECTOR 12,979 km of the arterial ways paved. 16,640 km of the arterial ways paved. 88 million tons mobilized per road. 31 million tons mobilized per train. 1,424 km of railways in service. Port capacity: 150 million tons per year. 15% main airports with optimal service. 5 cities with Integrated Systems of Massive Transportation. 165 million tons mobilized per road. 53 million tons mobilized per train. 1,991 km of railways in service. Port capacity: 172 million tons per year. 60% main airports with optimal service. 7 cities with Integrated Systems of Massive Transportation. 212 million tons mobilized per road. 90 million tons mobilized per train. 2,501 km of railways in service. Port capacity: 285 million tons per years. 100% main airports with optimal service. 9 cities with Integrated Systems of Massive Transportation.

9 TRANSPORTATION SECTOR / PROJECT PORTFOLIO TRANSVERSAL DE LAS AMERICAS ROAD CONCESSION OPPORTUNITY Large road concession project designed to connect Venezuela with Panama, and to improve connectivity in the Colombian Atlantic Coast roads. CURRENT STATUS: Structuring phase. TECHNICAL DESCRIPTION This project, the result of a private initiative strategy 1 and has two sectors: integrates six existing concessions for the construction of the second lane and the improvement of existing roads in the Atlantic Coast region. These concessions are: i) Cordoba-Sucre, ii) Ruta Caribe, iii) Cartagena-Barranquilla, iv) Barranquilla-Tasajera, v) Tasajera-Cienaga-Mamatoco and vi) Santa Marta-Riohacha-Paraguachon. The project was divided in two sectors to be separately awarded: SECTOR ESTIMATED TERM (years) CORRIDOR LONGITUDE (Km) CONSTRUCTION (Km) REHABILITATION (Km) OPERATION AND MAINTENANCE (Km) , ,166 Source: INCO ESTIMATED INVESTMENT USD 3,050 million. Sector 1: USD 900 million. Sector 2: USD 2,150 million. MAXIMUM GOVERNMENT CONTRIBUTION Sector 1: USD 994 million. Sector 2: USD 2,251million. ESTIMATED TOLL STATIONS 32 (8 new ones). Sector 1: 6 (4 new ones). Sector 2: 26 (4 new ones). REVENUE SOURCE Tolls and Government contributions when required. ENTITY IN CHARGE National Concessions Institute (Instituto Nacional de Concesiones). ESTIMATED BIDDING PROCESS OPENING DATE 1st semester Decree 4533 of 2008: Those projects submitted by individuals or corporations, trusts, temporary mergers, promises of future partnerships, or any other type of partnership provided for in the law, to a government granting authority for the design, construction, operation and maintenance of a public works project through a concession agreement are deemed private initiative proposals. CONTACT: Pilar Zamora - National Concessions Institute, pzamora@inco.gov.co

10 TRANSPORTATION SECTOR / PROJECT PORTFOLIO AUTOPISTAS DE LA MONTAÑA ROAD CONCESSION OPPORTUNITY Construction works to connect the Antioquia Department, one of Colombia s leading commercial and industrial centers, with Bogota, the Atlantic Coast region, the Eje Cafetero (Coffee Zone) departments and the Transversal de las Americas and Ruta del Sol road concessions, allowing traffic coming from the Western and Southern part of the country to connect with the Atlantic Ocean. TECHNICAL DESCRIPTION CURRENT STATUS: Technical surveys that will make it possible to determine the scope of the construction are being performed. The construction will be carried out by a firm to the contracted by ISA. Construction, renovation, expansion and maintenance of 900 km of road infrastructure. Project to be carried out by Interconexion Electrica S.A. ISA to promote the development in the Antioquia region and improve its competitiveness: SECTION CONSTRUCTION (Km) OPERATION AND MAINTENANCE (Km) 1. TUNEL DE OCCIDENTE - EL TIGRE 2. HATILLO - CAUCASIA SAN JOSE DEL NUS - PUERTO BERRIO ANCON DEL SUR - LA VIRGINIA TOTAL 900 1,251 Source: INCO ESTIMATED INVESTMENT USD 2,800 million. Government Contribution USD 500 million. Contributions of Regional Entities USD 500 million. Funding requirements in excess of USD 400 million are estimated. TOLLS 21 (6 new ones). ESTIMATED DURATION 40 years. ENTITY IN CHARGE ISA. ESTIMATED BIDDING PROCESS OPENING DATE 1st semester CONTACT: Jorge Ivan Lopez. ISA Concessions Director, jlopez@isa.com.co

11 TRANSPORTATION SECTOR / PROJECT PORTFOLIO CUCUTA MASS TRANSIT INTEGRATED SYSTEM MTIS OPPORTUNITY Public transportation system to serve Cucuta and its binational metropolitan area, with more than 580,000 inhabitants, and the possibility to connect the Venezuelan cities of Ureña and San Antonio del Tachira. CURRENT STATUS: Structuring phase. TECHNICAL DESCRIPTION Operation and fare collection concession of the Cucuta MTIS. These concessions may be granted as a whole or individually for the operation, fare collection, and parking lots. The system will be executed through a Public-Private Alliance arrangement as follows: Public Sector Contributes with resources for infrastructure and is in charge of planning and the administration of the system. Private Sector Contributes with transportation equipment, some technological and infrastructure elements and operates the system and collects fares. ESTIMATED LENGTH Main line: 23.5 km. Supplementary lines: 30.3 km. MAIN STATIONS, YARDS, REPAIR SHOPS AND SECONDARY STATIONS (ESTIMATED) 5 Metropolitan Integration Terminals. 8 Main stations. 40 Secondary stations. 2 Yards and repair shops. 1 Command and Control Center. ENTITY IN CHARGE National Planning Department (DNP) - Transportation Division. A management entity will be created during the first semester of ESTIMATED BIDDING PROCESS OPENING DATE 2nd semester ESTIMATED INVESTMENT USD 150 million. FARE COLLECTION SYSTEM Non-contact smart card. OPERATIONAL SYSTEM Physical and operational integration with public buses. CONTACT: Pedro Luis Jimenez. National Planning Department, pjimenez@dnp.gov.co

12 TRANSPORTATION SECTOR / PROJECT PORTFOLIO POPAYAN, ARMENIA, SANTA MARTA AND PASTO STRATEGIC PUBLIC TRANSPORTATION SYSTEMS SPTS OPPORTUNITY Transportation systems with significant impact on mediumsize cities to provide around 610,000 trips per day. CURRENT STATUS: Structuring phase. TECHNICAL DESCRIPTION First concession phase for operation, fare collection, supply of buses,traffic lights installation and/or other supplementary activities in Colombian cities with populations between 250,000 and 500,000. Projects have been approved for Armenia, Santa Marta, Pasto and Popayan. Private investment will focus on the following: Unified collection system. Traffic lights control center. Traffic information control. Exchange stations. Purchase and operation of the fleet. Strategic system lines. Transfer modules. Stations. Parking lots. Operation in historic centers. The systems will be executed through a Public-Private Alliance arrangement as follows: Public Sector Contributes with resources for infrastructure and is in charge of planning and the administration of the system. Private Sector Contributes with transportation equipment, some technological and infrastructure elements and operates the system and collects fares. ESTIMATED INVESTMENT USD 169 millon. ENTITY IN CHARGE Transportation Division. ESTIMATED BIDDING PROCESS OPENING DATE 4th quarter st quarter CITY POPAYAN PASTO SANTA MARTA ARMENIA TOTAL PRIVATE INVESTMENT (USD Million) CONTACT: Pedro Luis Jimenez. National Planning Department, pjimenez@dnp.gov.co

13 TRANSPORTATION SECTOR / PROJECT PORTFOLIO BOGOTA PUBLIC TRANSPORTATION PROJECTS OPPORTUNITY The Bogota public transportation projects will be integrated with the country s largest mass transportation system which is currently moving approximately 1.5 million passengers a day. CURRENT STATUS: Study phase. The Colombian Government wants to give priority to the projects and to the Bogota-Cundinamarca public transportation resources. To that end, the Government has been working towards the design, funding, execution and launching of the subway and commuter train projects, as described below: COMMUTER TRAIN PROJECT SUBWAY PROJECT The project entails the design, construction and subsequent concession to operate, maintain and run an urban and commuter train transportation service for Bogota and neighboring municipalities. A preliminary feasibility study estimates that the system will be able to move approximately 368,000 passengers per day, of which 336,000 are urban passengers, in a best-case scenario. Consists of the design and implementation of the system s infrastructure for the first subway line for Bogota, capital of Colombia. The District Transit Authority is conducting surveys through an expert consultancy group to establish passenger demand, required investment and concession mechanisms and terms for the 24 km line proposed by the consultancy group. ESTIMATED LENGTH 106 km. ESTIMATED INVESTMENT USD 1,050 billion for design and construction (includes infrastructure, signage, and communications, among others). ESTIMATED BIDDING PROCESS OPENING DATE The bidding process has been estimated to begin on the second semester ESTIMATED CONCESSION TERM 30 years. ESTIMATED BIDDING PROCESS OPENING DATE Final design and construction: 2nd semester OPERATION CONCESSION 1st semester Note: It is important to emphasize that these two projects are currently being structured by the Cundinamarca and Capital District Governments, respectively. In addition, the Colombian Government is reviewing the projects in order to establish the Governments investment. It is estimated that the result of the Governments s review will be announced in June CONTACT: Luz Marina Ramirez. Transportation Ministry, lramirez@mintransporte.gov.co CONTACT: Fernando Alvarez. District Transit Authority Secretary, falvarez@movilidadbogota.gov.co

14 TRANSPORTATION SECTOR / PROJECT PORTFOLIO INTEGRATION AND CONCESSION OF THE CENTRAL - NORTHEASTERN AIRPORTS OPPORTUNITY With 1.8 million passengers per year, the project represents an excellent business opportunity as it leverages synergies and provides economies of scale, integrating airports of great significance in the country s airport network. CURRENT STATUS: Structuring phase. TECHNICAL DESCRIPTION The project entails the involvement of a single investoroperator responsible for improving the infrastructure and ground operation and maintenance of the Santa Marta, Cucuta, Bucaramanga, Barrancabermeja, Valledupar and Riohacha airports, under a single concession. ESTIMATED CONCESSION TERM 20 years. Passengers Million Passengers up to JUN 2009 Source: Civil Aeronautical Authority. Load 15,000 Tons 10,000 5, up to JUN 2009 Source: Civil Aeronautical Authority. CITY INHABITANTS Barrancabermeja 187,311 Bucaramanga 762,390 Cucuta 585,543 Riohacha 169,311 Valledupar 348,990 Santa Marta 414,387 TOTAL 2,467,932 Source: 2005 Census Dane. ESTIMATED INVESTMENT USD 55 million*. ENTITY IN CHARGE Civil Aeronautics Authority ESTIMATED BIDDING PROCESS OPENING DATE: 1st semester * This value does not contemplate infrastructure investment on the aerial side. CONTACT: Andres Figueredo. Civil Aeronautical Authority, sre@aereocivil.gov.co

15 TRANSPORTATION SECTOR / PROJECT PORTFOLIO INTEGRATION AND CONCESSION OF THE CENTRAL-WESTERN AIRPORTS OPPORTUNITY This concession project is made up of the Colombian Coffee Zone airports, a constantly growing highly important economic, commercial, and tourist area, with an average of more than 900,000 passengers per year. TECHNICAL DESCRIPTION CURRENT STATUS: Planning phase. The investment bank selection process is underway for the structuring of the project. The project entails the involvement of a single investoroperator responsible for improving the infrastructure and ground operation and maintenance of the Pereira, Armenia, Palestina and Cartago airports with at least level C1 service standards (Stable flow conditions, reasonable delays and proper comfort levels). ESTIMATED CONCESSION TERM 20 years. Millon Passengers Passengers up to JUN 2009 Source: Civil Aeronautical Authority Load Tons up to JUN 2009 Source: Civil Aeronautical Authority ESTIMATED INVESTMENT USD million. CITIES MANIZALES AND PALESTINA PEREIRA AND DOSQUEBRADAS CARTAGO INHABITANTS 398, , ,831 ENTITY IN CHARGE Civil Aeronautical Authority. ESTIMATED BIDDING PROCESS OPENING DATE 2nd semester ARMENIA TOTAL Source: 2005 Census, Dane. 280,930 1,426,625 CONTACT: Andres Figueredo. Civil Aeronautical Authority, sre@aereocivil.gov.co

16 TRANSPORTATION SECTOR / PROJECT PORTFOLIO CARARE TRAIN OPPORTUNITY At 543 km long and part of the Central Railway System, located in the center of Colombia, this railroad has the potential to move up to 20 million tons of cargo, which will facilitate the exploitation and sale of coal resources of the Cundinamarca, Boyaca and Santander basins. Technical Description Concession for the construction, operation and maintenance of a railroad approximately 543 km long for the transportation of cargo (mainly coal) from Cundinamarca to the Central Railway System (line that extends all the way to Santa Marta on the Atlantic Coast). CURRENT STATUS: Planning phase. Pre-feasibility study has been completed. Characteristics of the Corridor and Estimated Length Construction of new sections: 397 km. Tunnels: 42 in 24 km. Bridges: 33 in 4 km. Railroad Crossings: 72 km. Renovation of the existing corridor: 74 km. TOTAL: 543 km. Estimated Cargo Volumes Initial cargo volumes fluctuate between 6.7 and 11.5 million tons per year. Estimated Concession Term 25 years. Estimated Investment USD 1,200 million. Entity in charge National Concessions Institute (Instituto Nacional de Concesiones). Estimated Bidding Process Opening Date 2nd semester CONTACT: William Piraneque. National Concessions Institute, wpiraneque@inco.gov.co

17 TRANSPORTATION SECTOR / PROJECT PORTFOLIO LOGISTICS PLATFORMS OPPORTUNITY At least 9 corridors with logistic potential and 20 logistics platforms to be developed; a strategic opportunity for private investors. Current Status: The Colombian Government is currently working on a pilot program in the Valle del Cauca region to provide support to regional entities and developers consistent with the regional development and homogeneity of technical standards for this type of infrastructure. Technical Description In order to support and increase the competitiveness of the Colombian production sector, the Government has been conducting studies to establish the country s logistics needs and to define the policy guidelines and the funding needs for the implementation of better transportation and logistics practices in Colombia. The development of a network of 20 logistics platforms is being considered: Estimated Investment As these are private initiative projects, the investment will depend on the scope considered for each project. CONTACT: Ana Maria Pinto. National Planning Department, apinto@dnp.gov.co

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20 ELECTRIC POWER SECTOR CURRENT SITUATION AND OBJECTIVES COLOMBIAN ELECTRIC POWER INFRASTRUCTURE FROM AN INTERNATIONAL PERSPECTIVE URUGUAY CHILE BRAZIL COLOMBIA PERU MEXICO ECUADOR ARGENTINA VENEZUELA PARAGUAY Quality of electric power supply Source: World Economic Forum: Global Competitiveness Report Rank among 133 countries. CHILE URUGUAY BRAZIL VENEZUELA MEXICO ARGENTINA COLOMBIA PARAGUAY ECUADOR PANAMA PERU BOLIVIA Electric Power Coverage 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: UPME. Changes In Electric Power Coverage (Interconnected System) 100% 90% 80% 70% 60% 50% 76% Source: UPME. 94% LONG-TERM VIEW OF THE SECTOR % of generation with alternative energy in Non Interconnected Zones (ZNI). 34% of electric coverage in Non- Interconnected Zones (ZNI). 13,367 MW of installed capacity. 90% electric coverage in the interconnected national system. 7% of generation with alternative energy in Non-Interconnected Zones (ZNI). 35% of electric coverage in Non- Interconected Zones (ZNI). 13,456 MW of installed capacity. 94% electric coverage in the interconnected national system. 60% of generation with alternative energy in Non-Interconnected Zones (ZNI). 75% of electric coverage in Non- Interconnected Zones (ZNI). 20,227 MW of installed capacity. 100% electric coverage in the interconnected national system.

21 Electric Power Sector / Project Portfolio SALE OF COLOMBIA S INTERESTS IN ISAGEN S.A. E.S.P. OPPORTUNITY With a 2,132 MW install capacity, ISAGEN is the third-largest and one of the leading electric power generation companies in Colombia. CURRENT STATUS: Being structured. Background ISAGEN s main object is electric power generation; the company sells other energy products for industrial use as well. Technical description Sale of 57.66% of the stock of Colombia s third-largest electric power generating company in terms of capacity. TecHnical and Financial Indicators to June 2009 Installed Capacity 2,132 MW. 86% Hydraulic. 14% Thermal. Participation in annual national generation 18.70%. Operational Income USD 357 million (*p USD 649 million). Total Assets USD 2,176 million. Total Liabilities USD 580 million. Stockholders Equity USD 1,596 million. Operational Utility USD 161 million (*p USD 171 million). Ebitda USD 188 million (*p USD 222 million). Clasification AA+ Duff and Phelps. Estimated Investment To be defined. Entity in Charge Ministry of Treasury and Public Credit. Estimated opening date for public bid 1st semester GENERATING PLANTS (LOCATION) HIDROELECTRICA SAN CARLOS (SAN CARLOS, ANTIOQUIA) HIDROELECTRICA JAGUAS (SAN RAFAEL, ANTIOQUIA) HIDROELECTRICA CALDERAS (GRANADA, ANTIOQUIA) HIDROELECTRICA MIEL I (NORCASIA, CALDAS) PLANTA TERMICA TERMOCENTRO (CIMITARRA, SANTANDER) USD Million TOTAL SALES 2008: 10,850 GWh IN STOCK 16% EBIDTA (USD Million) June-09 INSTALLED CAPACITY (MW) 1, NEGOTIATED 84% CONTACT: Viviana Lara. Ministry of Treasury and Public Credit, vlara@minhacienda.gov.co

22 Electric Power Sector / Project Portfolio SALE OF COLOMBIA S INTERESTS IN ELECTRIC POWER COMPANIES (GECELCA 99% AND URRA 99.7%). OPPORTUNITY Control of more than 12% (1,500 MW) of the country s electric power installed capacity. CURRENT STATUS: Prospective. In the process of hiring an Investment Banker Advisor for structuring process. Background Gecelca is the country s largest thermal power generating company; this sale would give the buyer control of more than 32% thermal power installed capacity. This company s thermal power generating capacity is represented by: TermoGuajira (302 MW). TEBSA PPA Agreement (750 MW combined cycle and 120 MW steam turbine). On the other hand, Urra is a hydroelectric power plant with a 335 MW capacity, nearly 4% of the country s hydroelectric power generating capacity. Technical Description Sale of the country s stock: 99% in Gecelca and 99.7% in Urra. Financial Indicators as of June 30th, 2009 TOTAL ASSETS TOTAL LIABILITIES STOCKHOLDERS EQUITY SALES Source: SUI - Superintendencia de Servicios Públicos Domiciliarios GECELCA USD 562 millon USD 150 millon USD 412 millon USD 193 millon URRÁ USD 1,253 millon USD 334 millon USD 918 millon USD 66 millon Estimated Investment To be defined. Entity in Charge Ministry of Mines and Energy. Estimated opening date FOR public BID 2nd semester CONTACT: Silvana Giaimo. Viceminister of Mines and Energy, sgiaimo@minminas.gov.co

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25 TELECOMMUNICATIONS SECTOR CURRENT SITUATION AND OBJECTIVES Telecommunications are open to the market, with a significant level of competition among public and private operators and dynamic growth where the penetration of mobile telephone services has reached a maturity phase with 89.5 out of every 100 individuals having a mobile telephone line, higher than countries like Chile and Brazil. Likewise, although at much lower levels, the number of Internet subscribers is currently experiencing significant growth, with a penetration of 6.11%. There are more than 40 local operators, 3 long distance providers, 2 mobile telephone services licenses, 1 PCS license, and more than 120 companies offering added value services. COLOMBIAN TELECOMMUNICATIONS INFRASTRUCTURE FROM AN INTERNATIONAL PERSPECTIVE Interconnection Readiness Index 2009 CHILE BRAZIL COLOMBIA URUGUAY MEXICO ARGENTINA PERU VENEZUELA ECUADOR PARAGUAY Source: World Economic Forum: Global Information Technology Report Rank among 134 countries. Millions Changes n Number of Users of Mobile and Landline Telephone Services % 40% 30% 20% 10% 0% Penetration 120% 100% 80% 60% 40% 20% 0 Internet and Mobile Telephone Service in Latin america FIXED LINES IN SERVICE Source: UPME ARGENTINA ESPAÑA URUGUAY VENEZUELA COLOMBIA CHILE ECUADOR BRAZIL PERU MEXICO MOBILE LINES IN SERVICE INTERNET MOBILE TELEPHONY Source: CNC, CMT, Ursec, Conatel, Communications Department, Subtel, Topcomm, Osiptel Cofetel, Point-Topic, CRT. LONG-TERM VIEW OF THE SECTOR Connectivity: 9.2% Schools 57% City Halls 10% Hospitals 3% Military garnishes 4% Libraries Teledensity (fixed): 16% Mobile Penetration: 33% Internet Penetration: 8% Connectivity public institutions: 33% Educational Sites 93.8% City Halls 82% Hospitals 23.3% Libraries Teledensity (fixed): 17.4% Mobile Penetration: 89.5% Internet Penetration: 44% Total access (100%) to all services of the sector for all the population. 100% communal Access through public institutions. Mobile Penetration: 100% Internet Penetration: 60% Broad band subscribers/total Internet subscribers: 100%

26 TELECOMMUNICATIONS SECTOR / PROJECT PORTFOLIO NATIONAL PUBLIC RADIO AND TELEVISION NETWORK MANAGEMENT OPPORTUNITY Modernization of Colombia s public radio and television network on occasion of the launching of ground-based digital television and associated telecommunications services. Current Status: Structuring Phase. Technical Description Colombia s public radio and television network is comprised of 48 primary and 172 secondary active stations distributed throughout the country, covering 80.87% of the territory and providing services to 99.6% of the population. The launching of Ground-based Digital Television requires investments in infrastructure and/or replacement or acquisition of equipment and new technology to guarantee the availability of the service and to provide it according to the required quality standards. Due to this, the Colombian Government intends to implement a public radio and television network management model to include the management, operation, maintenance and running of this infrastructure, guaranteeing its complete digitalization as well as an optimum public channels transmission. As part of this system, the running of the network is intended to maximize the uses and benefits provided by this infrastructure. Estimated Investment in the Network USD 150 million. Entity in Charge RTVC (Colombia s Public Radio and Television Agency). Estimated Bidding Process Opening Date 1st semester CONTACT: Gabriel Gomez Mejia. Manager of the National Radio and Television Network, ggomez@rtvc.gov.co

27 TELECOMMUNICATIONS SECTOR / PROJECT PORTFOLIO INVOLVEMENT OF A STRATEGIC OPERATOR TO PROVIDE NATIONAL MAIL SERVICES OPPORTUNITY Largest Colombian mail operator whose strategic function is part of a fast-growing sector throughout the world: the logistics sector. CURRENT STATUS: Structuring Phase. OFFICIAL POSTAL OPERATOR OF COLOMBIA Postal Service Company Technical Description Involvement of a strategic operator to provide National Mail Services, with the possibility to operate as a logistics services company governed by private law. Services Basic Postal Services (Normal, Certified And Priority Mail), Specials (Specialized Messagery, Notifications, Express National And International Mail, Post Office Boxes), Corporate Products (Massive, Postal Withdrawls, Delivery And Bill Distribution), Mail Financial Services And Social Mail. Installed Capacity Postal Network Divided In 7 Regionals With Presence In 1,101 County s Through 1,272 Agencies And 178 Own Offices. Financial Indicators (Jun. 2009) Operational Income: Usd 32.7 Mm. Operational Utility: Usd 5.8 Mm. Utility: Usd 5.4 Mm. Estimated Investment USD million. Entity in Charge 4-72 Colombian Postal Network. Current Status: Structuring Phase. Estimated Bidding Process Opening Date: 2nd semester nd semester CONTACT: Santiago Pelaez. Ministry of Information and Communication, Technologies Advisor, spelaez@mintic.gov.co

28 RELATED ENTITIES ENTITY WEB PAGE PROEXPORT DNP TRANSPORTATION DEPARTMENT INCO - NATIONAL CONCESSIONS INSTITUTE COMMUNICATIONS DEPARTMENT MINING AND ENERGY DEPARTMENT MINISTRY OF FINANCE PROEXPORT SERVICES WORLD-CLASS SERVICES FOR INVESTORS The Colombian government creates favorable conditions and offers the best support for investors. Proexport occupied position 16 in the list of the best Investment Promotion Agencies in the world and provides the following services to foreign investors: Information requests (economic, sector specific information, legal, procedural, etc). Contacts with public and private sectors. Set up of agenda when investors decide to visit Colombia. Aftercare services for investors that are already established in the country. Assessment and improvement of business climate. All services are free of charge. The primary goal s to create an efficient and friendly process for the development of new businesses. All information will be handled with discretion. Proexport has Investment Promotion Teams in 21 cities around the world. We will be delighted to assist you.

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