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1
Argentina as an investment opportunity
Rodolfo G. VillalbaExecutive Vice President
Buenos Aires, May 2017
2
Argentina has strong fundamentals to become a regional economic engine
Vast availability of NATURAL
RESOURCES
• 8th largest country in the world (2.8 Mn km2), with 53% of agricultural land
• Abundant food, water and renewable energy resources
• Large oil & gas and mineral reserves
NATIONAL INFRASTRUCTURE
improvement underway
• Nationwide road & railroad systems (35,000+ km), 43 ports & 54 airports
• High connectivity, with 75% broadband and 141% mobile penetration
• Extensive natural gas pipeline and electricity grid coverage
Large and diversified ECONOMY
• 3rd largest economy in LatAm, GDP of USD 586 Bn
• 2nd highest GDP per capita in PPP terms in the region, USD 22,500
• ~43 Mn pop (~60% under 35); access to 300 Mn pop in Mercosur
High quality HUMAN CAPITAL
• Qualified labor force, renowned for its technical skills, creativity & versatility
• #1 in Latin America’s Indices of Human Development and Education
• 98% literacy rate, ~110,000 higher education graduates per year
3
Brazil
3.4%
Peru Colombia
3.9%
5.0%
Chile
2.4%1.9%
Mexico Argentina
8.4%74.9
9.412.5
27.4
Brazil
12.4
1.9
Argentina
9.7
Chile
19.7
3.4
Mexico Peru
8.27.1
1.5
Colombia
Argentina has potential to capture USD 25 Bn/year+ in Foreign Direct Investment
Argentina has lagged behind its peers in capturing the strong FDI inflow growth in Latin America
Now we have the opportunity to reach the level of FDI correspondent to the size of our economy
Foreign Direct Investment(Avg. USD Bn/Year)
Source: World Bank, IMF
6.0x
2.9x
5.8x 6.6x 5.4x
’08 - ’15 FDI/GDP(%, average)
’08-’15
’90-’00
Average4.5%
Argentina’s share of regional FDI flows fell from 16% to 4% between the 90s and the last 7 years
To reach the regional average, Argentina needs to capture USD 25 Bn a year in FDI flows
1.4x
4
WEF Survey: Main Concerns for Argentina (share of total responses)
President Macri’s Administration has taken concrete steps to resolve investors’ concerns
Key reforms and initiatives
• Instituted inflation targeting policy to reach single–digit CPI by 2018
• Removed capital controls and repatriation restrictions
• Floated exchange rate and recovered monetary reserves
• Resolved defaulted debt and regained access to global financial markets
• Government e-platform for tenders and public accounts• Introduced Central Bank independence• Created the Argentina Investment & Trade Promotion Agency• New Public–Private Partnerships (PPP) regulatory framework• Re–launched the National Statistics Bureau (INDEC)• Established 4–year plan to eliminate the primary fiscal deficit• Implemented an unprecedented tax amnesty scheme
• Removed export taxes and import restrictions
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
• Country risk declined more than 100bp (-22%) in 12 months*• Recent public and corporate debt issuances have been oversubscribed by 4-7x**
24
6
11
11
13
17
18
Governmentbureaucracy
Inflation
FX restrictions
Access tofinancing
Corruption
Other
Tax levels
5
$ 0
$ 10.000
$ 20.000
$ 30.000
$ 40.000
$ 50.000
$ 60.000
The new administration was able to stop the decline and strengthen foreign exchange reserves
Source: Central Bank of Argentina. Dates are in dd/mm/yyyy format
Foreign exchange reserves (USD million)
The unprecedented
tax amnesty scheme (for a
monetary value of USD 120 Bn so far) will continue to contribute to the growth of
foreign exchange reserves
Recovering reserves level to pre FX restriction policies in 2011
USD 51.495
6
Low leverage at the household, corporate and government levels increase potential for investment and growth
Ch
ile
40
%
Jap
an UK
67
%
65
%
12
1%
Fran
ce
54
%
Ch
ina
12
5%
Ind
ia
86
%
USA
45
%
Ru
ssia
Ger
man
y
30
%C
olo
mb
ia
Per
u
19
%A
rge
nti
na
29
%
38
%B
razi
l
86
%
24
%
Ch
ile1
8%
UK
89
%
Ind
ia
Ru
ssia
43
%
71
%
24
9%
10
5%
69
%
USA
Ch
ina
Fran
ce9
6%
Jap
an
Co
lom
bia
51
%
Bra
zil
Per
u
16
%
Arg
en
tin
a5
2%
70
%
Mex
ico
54
%
Ger
man
y
USA
9%
74
%
81
%
Ch
ile
Jap
an1
01
%
36
%
Bra
zil
53
%
21
%
Co
lom
bia
Ger
man
y
Fran
ce UK
55
%
Ind
ia
7%
Arg
en
tin
a
7%
Mex
ico
15
%
Source: McKinsey Global Institute, BCRA, IMF
Household Debt - 2014(% of GDP)
Corporate Debt - 2014(% of GDP)
Sovereign Debt - 2015(% of GDP)
Argentine households have significant room to borrow and increase spending
Argentine corporations have the lowest debt to GDP ratio in the world,
increasing opportunity for leverage
The government has ample room to borrow from capital markets to fund
infrastructure projects
Latin America
Emerging Markets
Developed World
7
Argentina’s macroeconomic indicators are projected to improve markedly beginning in 2017, making this an ideal moment to invest in the country
According to IMF, Inflation is expected to decrease significantly, reaching single digits by 2020
Argentine GDP growth is expected to rebound strongly in the next few years
20
18
20
10
5%
2%
20
15
20
13
-2%
-6%
20
08
1%
0%
11%
3%
4%
20
11
20
19
20
17
-1% 20
20
20
21
6%
Sources: Historical – INDEC; Projections – IMF World Economic Outlook (October 2016)
5%7%
12%
17%
21%
39%
20192017 2018 202120202016
ProjectedHistorical
YoY Consumer Price ChangeYoY GDP Growth (constant 2004 prices)
Argentina’s Central Bank has set more aggressive goals of
12-17% for 2017 and 8-12% for 2018, reaching 5% in 2019
8
• Oil & Gas: $20 Bn+ (per year)
• Mining: $30 Bn+
• Renewable energy: $15 Bn
• Hydro power: $10 Bn
• Power grid: $5 Bn
• Thermal power: $4 Bn
• Nuclear power: $3 Bn
$85 Bn
Energy & Mining
• Roads & highways: $48 Bn
• Water & sanitation: $22 Bn
• Education & health: $20 Bn
• Urban mobility: $17 Bn
• Freight rail: $15 Bn
• Real estate: $5 Bn
• Telco networks: $5 Bn
• Airports & ports: $3 Bn
$135 Bn
Infrastructure
• Irrigation: $18 Bn
• Animal protein (beef, pork, poultry): $5 Bn
• Forestry/Pulp: $2.5 Bn
$25 Bn
Agribusiness
• Automotive industry
• Food & Beverage
• Consumer products
• Machinery & Equipment
• Basic materials
$5 Bn
Manufacture/ Industrial Goods
• Tourism
• Professional services
• Biotechnology
• Pharma
• Software development
$5 Bn
Value AddedServices
Argentina offers investment opportunities of more than USD 250 Bn
Note: All values are in USD
9
Contribute to the creation of quality jobs and sustainable economic development by reinserting Argentina into the world, through investment and trade
The Argentina Investment & Trade Promotion Agency
➢ Facilitate investment processes and improve business climate
➢ Unlock SMEs and regional economies potential to strategic international markets
➢ Single point of contact in the government for companies seeking to invest in Argentina
➢ Promote the highest ethical and professional standards, making Argentina a better and more transparent place to conduct business
➢ Become a strategic partner throughout the investment period
ECONOMICIMPACT
JOBCREATION
SOCIALIMPACT
TECHNOLOGYTRANSFER
STRATEGICSECTORS
ENVIRONMENTALCARE
REGIONALECONOMIES
10
The Agency facilitates investment processes throughout the business ecosystem
Sector-specific information, programs, regulatory framework
CAPITAL FLOWS
TAX LEGAL
PERMITSMinistries
Ministry ofForeign Affairs
Provinces
Municipalities
Industry Chambers
Secretariats
Associations
StrategicPartners
Embassies & Consulates
Private, state-owned, & multilateral
banks
President /Chief of
Staff
Big 4, managementconsultants
Regional Promotion Agencies
Ministerial IPAs
Financing Programs
Foreign Consultants
Tax/legal paperwork, permits, registrations
The Agency is a single-point-of-contact for investment projects, independently of sectors and origins
Strategic issues Administrative issues
11
Through the end of November, there have been investment announcements totaling USD ~53 Bn, of which the Agency manages USD ~35 Bn
6.6
4.61.3
Industrial Goods
Financial Services 6.7
Energy & Resources
Consumer Goods
Agribusiness2.5
2.9
13.7
Investments managed by the Agency
2.2
5.9
8.0
23.9
Technology & Other Services
55.4
5.4
Investments announced*
34.9
2.4
Transport & Infrastructure 4.2
* From 11/12/15 to 11/12/2016. Includes only projects with a declared monetary amount
Investment Announcements(USD Bn)
# Projects
99
28
38
49
53
60
33
32
8
2529
33
39
53
# Projects
360
203
12
We have a world-class team ready to assist you with your investment and trade needs
JUAN PROCACCINIPresident
+54 11 5199 [email protected]
PABLO TARANTINIVP Investments
Infrastructure, Mining, Consumer Goods, Innovation
+54 11 5218 [email protected]
RODOLFO VILLALBAVP Investments
Business in Asia+54 11 5218 9332
JUAN PABLO TRÍPODIVP International Trade
Agribusiness, ConsumerGoods, Services
+54 11 5218 [email protected]
ANDRÉS ONDARRAVP Investments
Finance, PowerGeneration, Real Estate,
Oil & Gas+54 11 5218 9332
FRANCISCO URANGAVP Investments
Agribusiness, Industrial Goods
+54 11 5218 [email protected]
ANDRÉS TAHTAVP Investments
Telecommunications, Renewable Energy, Health &
Professional Services+54 11 5218 8571
13
Rodolfo G. VillalbaExecutive Vice [email protected]
Miguel MitreAnalyst Asia
www.investandtrade.org.ar
InvestTradeARG
14
APPENDIX
15
According 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
2016 2017 2018 2019 2020 2021
18
4
24
0
2
22
20 18.6
23.4
1.5
19.417.9
21.7
Fiscal deficit
Expenditures
18.0
20.6
3.1
18.44.8
4.1
22.4
18.9
Primary revenues
0.92.2
18.3 18.6
3.8%3.6% 3.1%
-2.0%
3.1% 3.2%
Relationship between primary revenues, expenditures and fiscal deficit (% of GDP)
GDP Growth
Source: Morgan Stanley
16
✓ Normalization of Foreign Exchange Market – removal of capital
controls and exchange rate unification
✓ Removal of Export Taxes on Mining and Industrial Products
✓ Reduction of Agricultural Export Taxes
✓ New Import Regime (“SIMI”) – clarification of goods requiring
non-automatic import licenses, all other goods require only an
automatic license
✓ Rural Land Law – implementation of a more flexible system for
productive use of rural land by foreigners
✓ Tax Amnesty Law – tax incentives for Argentines to repatriate
assets held abroad and invest in Argentina’s economy
✓ SME Promotion Law – reduction of income tax and increase in
financing options for SMEs
✓ Automotive Parts Production Law – incentives for automotive
industry when buying local production
✓ Access to Public information Law – stipulates a requirement that
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
A number of regulatory initiatives have been or are in the process of being implemented to foster a better business and investment climate
ALREADY IMPLEMENTED
• “First Job” Law – tax
credits and subsidies for
companies who employ 18
– 24 year olds
• “Simplified” Stock
Company Law – new
company type to facilitate
the establishment of start-
ups (online registration,
ability for employees to
receive stock as
compensation)
• Venture Capital Law –
creation of funds backed
by the government and
with incentives for
investors to foster
Argentine
entrepreneurship
UNDER CONGRESSIONAL REVIEW UPCOMING
• Cultural Patronage Law –
tax incentives for private
companies to finance
cultural projects
• Transparency in Public
Works Law – stipulates a
requirement that all the
administrative steps for
public works be made
public
17
Financial markets have been eager lenders to the government and Argentine companies
Bond Issuer Date of issueMillons
USD Maturity(years)
Av. cost
SOVEREIGN
Argentine Republic April 17, 2016 16.500 3, 5, 10, 30 7.2%
Argentine Republic January 26, 2017 7.000 5, 105.625% 6.875%
SUB-SOVEREIGN
Buenos Aires Prov.March 9, 2016
February 7, 20171.250750
6 – 86
9.375%6.6%
Neuquén May 5, 2016 235 12 8.62%
Mendoza May 12, 2016 500 8 8.375%
Ciudad de Buenos Aires May 25 2016 890 11 7.625%
Córdoba June 3, 2016 725 5 7.125%
Salta June 30, 2016 300 8 9.125%
Chubut July 18, 2016 650 10 7,75%
Chaco August 11, 2016 250 8 9.5%
Santa Fe October 25, 2016 250 10 6,9%
Entre Ríos February 1, 2017 350 8 8.75%
CORPORATE
IRSA March 17, 2016 300 1 – 4 8.75%
YPF March 23, 2016 1000 5 8.5%
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%
RECENT DEBT PLACEMENTS
✓ Argentina was the emerging market
with the most debt placements in H1
2016 with USD 23 Bn in total
placements (20% share)
✓ Issuers included sovereign, sub-
sovereign and prime corporations and
many of them were oversubscribed
₋ The federal government
received offers for USD 69 Bn,
implying an oversubscription of
4.2x
₋ Buenos Aires Province was
oversubscribed by 3x, Neuquén
by 6.3x, Mendoza by 4.6x
₋ Cablevisión was oversubscribed
by 7.0x
COMMENTARY
18
Argentina has recently passed a law to promote Public-Private Partnerships
Provisions
Benefits
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
• 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 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
19
We have very attractive renewables and unconventional O&G markets under development
Power generation: renewables target of 20% of consumption shall be met by 2025
Unconventional O&G: “Vaca Muerta” play has world-scale potential
Installed Capacity(GW)
Addt’l Capacity
10 GW
1,5 GW
3 GW
8 GW
• Investments of USD 15 Bn needed to meet renewables target
• Great conditions for wind, solar, biomass and small hydro
• Government commitment and support:
- Competitive prices under guaranteed long term PPAs
- Tax incentives (accelerated depreciation, levied import duties, etc)
- Financing for renewable energy projects
• >10GW of large baseload plants (thermal/hydro) needed
• Argentina holds the world’s 2nd largest technically recoverable shale gas and 4th largest shale oil reserves
• Vaca Muerta has 4+ years of cumulative development- Area of 30,000 km2 with ~300m of shale layer at
~3,500m of depth (with 3-5% of total O&G content)- JVs between YPF and Chevron, Dow, Pampa, Petronas
• The Government has preagreed modifications to the Vaca Muerta collective bargaining agreement: gas price will have longer predictability, and labor costs and productivity will be improved
Shale Oil Reserves(Bill. Barrels)
Shale Gas Reserves(Trill. Cubic feet)
Source: Ministry of Energy and Mining, EIA
32
58
75
27
ArgChinaUSARussia
707665
802
China AlgeriaRussiaArg
1,135
22 25
10
18
10
Thermal
133
54
Hydro
1
2015 2025
Renewable
Nuclear
20* Excluding biomassSource: Universidad del Comahue, IEA, Enel
Argentina has 300+ GW potential in renewable energies distributed across different regions in the country*
BIOMASS
• Wide availability of sugar cane bagasse and agricultural residue
• Significant forestry coverage and wood production in NE and south regions (eg. Tierra del Fuego)
GEOTHERMAL
• High quality geothermal resources located in the Central Andes region.
• The area hosts almost every basic geothermal element such as volcanoes, fumaroles, hot springs and geysers
WIND
• Year-round strong and stable winds reflected in capacity factors of 35%+
• Favorable terrain conditions (include rounded hills, open plains and extensive shoreline)
SOLAR
• High solar radiation levels found in flat terrains with good altitude and low humidity levels
• High capacity factors for Solar PV
MINI - HYDRO
• Wide availability of mini-hydro projects with high capacity factors (over 50%)
21
Selected Countries: Wind Capacity Factors (%) Argentina: Average Windspeed Map
• 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%
CF Source: Project public data / BNEF; Map: Centro Regional de Energía Eólica
Argentina has the highest wind power potential in the region
35
1544
19
23
33
20
3537
47
USA GerUruArg
50
BraPer Mex Chl Chi
22
• 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)
CF Source: Project public data / BNEF; Map: National Renewable Energy Laboratory (NREL)
Selected Countries: Solar Capacity Factors (%) Argentina: Average Solar Radiation Map
Argentina also has the second highest solar power potential in the region
25
34
12
1516
2020
31
17
8
Uru ChiGer
33
Mex Chl PerBraArg Jpn
23
Recent tenders in renewable and thermal energy were heavily oversubscribed
Capacity called for tender1 GW
Oversubscribedx 6.3
Projects presented123
Awards
22 Projects1,472 MW5,827 MWh/yr
Wind
24 Projects916 MW2,192 MWh/yr
Solar PV
6 Projects9 MW67 MWh/yr
Biogas
2 Projects15 MW117 MWh/yr
Biomass
5 Projects11 MW65 MWh/yr
Small Hydro
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
59 Projects2,423 MW8,268 MWh/yr
TOTALAWARDED
Renewable Energy (RenovAr Rounds 1 and 1.5) Thermal Energy
✓ Auction initially contemplated
increasing installed capacity by 1
GW, but ended up awarding 2.8 GW
due to high demand
✓ Results:
• Total of 2.8 GW awarded
• 6.6x oversubscribed
• 20% offers coming from new
players
• Pricing ~32% cheaper than
previous auction
24
148
13Current 11x
Potential
We 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
Gold
Copper
Uranium
Polymetallic
Lithium
Lead-Zinc
Iron
Prospective areas
• 750,000 Km2 of high potential mining areas
• 183,000 Km2 of already granted mining rights
- 25 advanced prospects
- 14 production mines
• USD 30 Bn+ needed to develop copper, silver, gold, lithium, potassium and other opportunities
• There are 40+ projects with PEA and onward
• There are 340+ projects in initial stagesSource: Ministry of Energy and Mining USGS
• ~65% of the mining surface remains unexplored
• No export taxes for mining products
# 14
# 9
World Ranking
# 20
# 6
# 10
# 5
# 3
# 2
Tonnes
76
53
31 107
Current
Potential
2x
Thousand tonnes
856
110 9x
100Potential 956
Current
Tonnes
756
800
Current
1,417
3x
2,217Potential
Thousand tonnes
Gold
Copper
Silver
Lithium
25
There are at least 7 world class Copper projects in advanced stages, and 85 projects in early stages underway
85 projects in early stages in several provinces
• 23 in Salta
• 17 in San Juan
• 11 in Catamarca
• 10 in La Rioja
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.
Our 7 projects in advanced stage are exploitable in the near future
• 8 in Mendoza
• 7 in Jujuy
• 6 in Neuquen
• 2 in Chubut
• 1 in La Pampa
26
Argentina has the 3rd largest brine Lithium resource; alongside Bolivia and Chile we form the Lithium Triangle
Company Salar Tn/yr
Orocobre Ltd. Toyota S. Olaroz Cauchari 20k
FMC S. Del Hombre Muerto 20k
Enirgi Group S. Rincón 20k
Ganfeng Lithium S. Llullaillaco 20k
Eramet / Eramine S. Centanario 20k
SQM S. Cauchari Olaroz 20k
Galaxy Resources Ltd. S. Del Hombre Muerto 20k
There are 7 projects in pilot stage
Projects in early stages25• 5 in Jujuy
• 15 in Salta
• 5 in Catamarca
27
There are vast agribusiness opportunities in land irrigation, cattle raising, forestry & cellulose and food industrialization
Argentina has excellent agriculture conditions and full government support
There are still many opportunities for further development
• Farming conditions:
- Mild Climate with abundant rainfall
- Rich soils with low fertilizer needs
- Exceptional human resources, long farming tradition
- High technology adoption in crop genetics (>65% GMO)
- Unparalleled logistics with 100% storage capacity
• Government support: one of the first measures adopted by President Macri’s administration was the elimination of export taxes to wheat, corn, meat and regional products
Development of more than 4 Mn Ha with artificial irrigation
Potential investment: USD 8 Bn
Expansion of the forestry and cellulose/ paper industry, biomass energy and housing. Raw material: 4-5 Mn m3/year
Potential investment: USD 2.5 Bn
Increased food industrialization (milling, wine, canned and frozen food)
Potential investment: USD 0.5 Bn+
Cattle raising expansion – 10 Mn head, 200 K swine and 1,5 Bn poultry
Potential investment: USD 10 Bn+
Argentina´s food production capacity(Million people)
2016 Argentine production
2.8 Mn Tons produced11th meat exporter (265 MT)
56 Mn tons production1st soy oil exporter (6 Mt)2nd soymeal exporter (32 Mt)3rd bean exporter (12 Mt)
28 Mn tons production3rd world exporter (17 Mt)
Source: Ministry of Agroindustry
600
400
1.5X
2015 2025
Potential and incentives to consolidate as significant player and develop 300k tons of aquaculture
Potential investment: 1 Bn+
28
In professional services, we have become a hub for large companies’ shared service centers
Argentina has a number of distinct benefits for the establishment of shared service centers
Dozens of companies across industries have established their shared service centers in Argentina
*Differences can shift by +/- 1 hour during daylight savings timeSources: UN, GSMA, press releases
• Ample supply of talented and English speaking workforce
- 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
- Entire Americas and Europe within +/- 5 hours*
- NYC / Washington D.C. / Boston are at -1 hour
- London is at +4 and Continental Europe at +5 hours
• 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)
• Developed mobile and broadband infrastructure
- 75% of population with broadband access
- 141% mobile phone penetration with wide cell service availability
650 employees providing IT, tax & project
management services (opened in 2012 )
1000 employees providing IT, research, credit analysis and processing services (opened
in 2015)
400 employees providing IT and accounting services
(opened in 2006)
120 employees providing admin, procurement and billing services (opened in
2006)
40+ shared service centers in Argentina, including
29
In infrastructure, we have ambitious development plans for roads & highways, railways and airports
Roads: improvement and construction of roads & highways
Freight rail: rehabilitation of the entire network
2015
Airports: modernization & increased flight usage
2027
• ~40% of roads are currently in poor conditions
• Only 2,800km of highways in place
• Plan 2027:
- 11,400 km of total highways
- 13,000 km of roads in good conditions
- Investment of USD 28 Bn
• Growth by 2x of air traffic expected by 2020 (10 Mn to 20 Mnpassengers)
• Expanded international connections
• Plan 2019:
- 14 airports modernized by 2019
- Investments of USD 900 Mn
• Only 5% of freight is transported by railway (18 Mn tones)
• Average speed of ~12-15 km/h
• Plan 2027:
- 10,000 km of refurbished rails
- 80-100 Mn tones transported
- Investment of USD 15 Bn
Source: Ministry of Transportation
Passenger rail: new developmentsPorts
• The Regional Express Network (RER) is a USD 8.5 Bn urban passenger investment
• Port of City of Buenos Aires bid
30
There are a number of public tenders planned in the short term across sectors
Transportation
H2
20
16
& H
1 2
01
7
Nationwide road concessions
Stage 2 Belgrano Cargasfreight
Regional Express Railway
Further freight rail projects (e.g. San Martin Cargas,
Urquiza Cargas)
Passenger rail rolling stock
Buenos Aires Subway construction & renovation
Port of Buenos Aires concession
H2
20
17
Federal Infrastructure Energy Real Estate & Tourism
Waste-to-energy electricity plants
Note: All tender dates are tentative and approximate; includes only selection of opportunities. Thermal energy tenders to be determined.
Nationwide irrigation systems
Health related public works
Education related public works
“Portezuelo del Viento” multipurpose dam
“Potrero del Clavillo” multipurpose dam
Various real estate projects in Buenos Aires City (e.g.
Huergo Project, ColegialesStation, Houssay Square…)
Various real estate projects in Provinces (e.g. North Port Rosario, Mendoza Station…)
Housing public works
Cafayate tourism project
Renewable energy (solar, wind, hydro, biomass etc.)
Seismic evaluation for offshore O&G
RenovAr Plan Round 2
First HV Transmission Grid Tender
Thermal Tender (large high efficiency projects -
>700MW)
6-8 Vaca Muerta play tender
