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Colombia: a center of opportunities

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March, 2010

Index

Colombia: the pipeline of infrastructure projects Road Concessions - Ruta del Sol - Las Americas Highway - La Montaña Highway - Restructuring First and Second Generation Road Concessions Urban Transportation - Strategic Public Transportation System - Commuter Train for Bogotá - Bogotá Subway System Ports Regional Airport Concessions - Airports - Regional Airport Concessions Railroads - Carare Railroad - Central Rairoad System Power - Sale of the Nation's Share in Isagén - Current Energy Projects - Sale of Power Generation Companies Gelcelca and Urrá - Pescadero Ituango Project - Porce IV Project - El Quimbo Project - Miel II Project - Hidrosogamoso Project

25 26 27 28 29 30 31 32 33 34-35 36 37 38 39-40 41 42 43 44 45 46 47 48 49 50 51

Colombia: a center of opportunities Introduction to Colombia Outlook Reasons to Invest In Colombia Practice Areas with Increased Activity Opportunities/Growing Industries: Oil and Gas Oil Production: Oil in South America Gas Production: Gas in South America Opportunities/Growing Industries: Mining Opportunities/Growing Industries: Tourism and Real Estate Summary of total expected investments

3 6 8 9 14 17 18 19 22 23

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· · ·

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Colombia in South America Oldest Democracy 2nd population (45 million) 3rd crude producer (ANH estimates 800 b/d by end of 2010) 3rd largest recipient of FDI after Brazil and Chile (US$ 10.6 billion in 2008) Ranked first among Latin American countries for doing business, by the World Bank up from 6th in 2006

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Colombia: A growing country · Foreign direct investment has increased dramatically four-fold in 6 years.

INFRASTRUCTURE INVESTMENT (Values in percentages)

9 8 7 6

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The current three-year investment plan calls for investments of USD 25 billion in infrastructure alone, which is almost 11% of Colombian GDP.

Colombia is ranked 37th in the world in the World Bank "Doing Business 2010" Report, ahead of Chile (49), Mexico (51) and Perú (56).

5 4 3 2 1 0 2006 2007 Total GDP Public Inv./GDP 2008 Private Inv./GDP 2009

Source: Departamento Nacional de Planeación

·

Source: www.proexport.org

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Colombia: A growing country

Colombian GDP in USD (Thousands)

COLOMBIA: PIB (Millones de Dólares)

250.000

200.000

US$ Millones

150.000

100.000

12.000

50.000

COLOMBIA: Investment Foreign DirectINVERSION in EXTRANJERA DIRECTA Colombia USD (Thousands)

FUENTE: Banco de la República

MILLONES DE DOLARES

10.000 8.000 6.000 4.000 2.000 0

1994 1998 2006

1990 2002

0

1990 1992 1994 1996 1998 2000 2001 2003 2005 2007

1991 1993 1995 1997 1999 2002 2004 2006 2008

FUENTES: DANE, Cuentas Nacionales Source: Departamento Nacional de Planeación, DANE

2009 e

Source: Banco de la República

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2010e

Outlook: Long Term Political · · · · Eight years of increasing stability and confidence in government institutions. Elections on March 14th, 2010, showed a continuation of support for the current administration's policies. Resolution of the reelection question confirms Colombia's commitment to democracy and respect for its Constitution. Business friendly government policies are expected to continue. Colombia occupies the fifth place in the World Bank Doing Business 2010 Report for the category of "protecting investors". Colombia is in the top ten reformers for the category of "starting a business" in the World Bank Doing Business 2010 Report. · Internationally recognized as a valuable trading partner: This year Colombia will be negotiation 19 International Investment Agreements with 39 countries and 21 Double Taxation Agreements with 22 countries. History of responsible public debt management with long term reduction projects of 22.8% of GDP in 2020 from 35% in 2004.

·

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Outlook: Legal

Free Trade Zones: 15% income tax rate, no import duties

Simplified Share Company "S.A.S." totally flexible by-laws to meet individual needs.

Special 30% deduction on tangible fixed income producing assets

From 3 to 20 year legal stability contracts 1% of investment commitment (operational stage) 0.5% of investment commitment (pre-operational stage)

International Arbitration available

Agreements executed in English are enforceable

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Reasons to Invest in Colombia

Legal Stability

Political Stability

Economic Stability Growth Potential FTA with U.S. expected 2011 Transparent public contract terms

EOIC Security index drastically improved

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Practice Areas with Increased Activity Private Equity

· · Surge in interest in Private Equity opportunities. Approximately 30 Private Equity Funds are currently registered with the Financial Superintendence in Colombia. Easy to create and manage private equity funds in Colombia. Recent legislation allows Colombian Pension Funds to invest offshore. Colombian pension funds have significant amounts available to invest in private equity and theses amounts are growing annually. In July 2009 the amount was USD 43 billion. Large quasi-government, multilateral and other mixed funds target large projects. Smaller private equity funds look to:

smaller service companies that benefit form contracts with large projects. small-medium size infrastructure projects such as green energy. small-medium size companies with expansion prospects in need of capital and guidance.

· · ·

· ·

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Exit strategies are becoming more available including through public offerings on the Colombian stock exchange (Colombia Capital Program).

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Practice Areas with Increased Activity Capital Markets and Finance

Equity/Private placements ·In 2007 ISA issued ADRs under Rule 144A. ·In 2007 Almacenes Éxito S.A issued ADRs under Rule 144A. Debt/Private placements ·In 2009 Ecopetrol issued USD 1.5 billion, 10 year 7.65% notes under Rule 144A. ·In 2007 Empresas de Energía de Bogotá S.A. E.S.P issued 8 year notes under Rule 144A for USD 610 million. ·In 2007 Transportadora de Gas del Interior S.A E.S.P issued 10-year notes to 9.5% for USD 750 million under Rule 144A. · · · · Equity ADRs/Registered offerings Bancolombia (2007): recent trading price USD 46.69 Cementos Argos (2008): recent trading price USD 20.00 Ecopetrol (2008): recent trading price USD 23.00 Nacional de Chocolates (2009): recent trading price USD 11.00

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March, 2010

Practice Areas with Increased Activity Capital Markets and Finance

Foreign investors may buy shares of Colombian listed companies* when they intend to hold the investment long term. Speculative investments, whether equity or debt, purchased on the Colombian Stock Exchange BVC, must be purchased through a foreign investment fund. Foreign investments funds, as of January 2010**, have invested:

(i) USD 3.2 billion in equity of Colombian listed companies. (ii) USD 668 million in debt issued by Colombian listed companies.

Foreign companies are also permitted to issue equity or debt on Colombian exchanges.

* If it is registered with the National Securities and Issuers Registry (RNVE) of the Financial Superintendence. ** Data provided by the Financial Superintendence.

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March, 2010

Practice Areas with Increased Activity Capital Markets and Finance

During the past five years, amendments to Colombian securities regulation have promoted offerings by foreign companies, public entities and multilateral credit agencies. Recently regulation was enacted enabling foreign companies to offer securities in Colombia without registration with the RNVE* or filing with the Superintendence. A Colombian broker must register the foreign shares with a local registry and quotation system (not yet established). Purchases are restricted to institutional investors. The recent integration of the Chilean and Peruvian stock exchanges with the BVC** will allow greater liquidity and counterbalance the strength of the BOVESPA. In 2011, a Colombian, Chilean or Peruvian investor may make trades through their local brokers.

*National Registry of Securities and Issuers, Registro Nacional de Valores y Emisores (RNVE) ** Colombian Stock Exchange, Bolsa de Valores de Colombia (BVC)

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March, 2010

Practice Areas with Increased Activity Mergers and Acquisitions

Foreigners may freely participate in tender offers to acquire control of Colombian listed companies and sell shares of acquired companies to Colombian residents through tender offers.

In 2008, Votorantim (Brazil) increased its share in the Colombian steel company Acerías Paz del Río through a USD 490 million tender offer. In 2009, Gas Natural (Spain) sold its share in the energy generator Empresa de Energía del Pacífico S.A. E.S.P. (EPSA) through a tender offer of USD 1.1 billion.

We expect to see more IPO and tender offer activity as Private Equity investments mature and the funds begin to look to the BVC as an exit strategy.

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March, 2010

Opportunities/Growing Industries Oil and Gas

Total investment in annual oil exploration per year is estimated to be USD 4 billion

60-80 exploration wells/year, 900 production wells/year

New ANH award round in 2010 Cartagena refinery overhaul

- Total investment USD 4.1 billion - Operation in June 2013

Barrancabermeja refinery upgrade

-Total investment USD 2.4 billion -Operation in January 2013

Ecopetrol investments in the Gulf of Mexico, Peru and Brazil

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March, 2010

Opportunities Growing Industries Oil and Gas

ANH´s Round Colombia 2010 has begun

·

· ·

Terms of reference were published on February 19, 2010.

The deadline for applicants for the submission of bids is April 15th 2010. Contract award: July 2010.

Types of areas to be awarded:

Type I: Mature Basins Type II: New Prospects Type III: Frontier Basins

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March, 2010

Opportunities Growing Industries Oil and Gas

Interest in gas exploration is growing significantly in Colombia, particularly off-shore. Investments in 2009 and 2010 are expected to reach more than USD 800 million. In Colombia there area more than 5.5 million users of natural gas. 300.000 vehicles were converted to gas operating systems and there are now approximately 550 Gas Service Stations. But need to discover gas for long-term supply assurance.

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March, 2010

Oil Production

Source: Asociación Nacional de Hidrocarburos ANH

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Gas Production

Source: Asociación Nacional de Hidrocarburos ANH

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March, 2010

Opportunities/Growing Industries Mining

In 2009, USD 2 billion were invested in the mining industry in Colombia.

·In 2009 Colombian coal exports were 72.5 kts (kilotons). ·In 2009 Colombian gold production was 48,000 kgs. ·In 2009 Colombian steel production was 280,773 kts (kilotons) ·By 2011 the Cerrejón mine´s coal production is expected to be 40 million tons/year. ·By 2012 the Cesar mine´s coal production could exceed 40 million tons/year.

Government is actively seeking new investors for new projects.

·Coal new explorations: Río de Oro (Norte de Santander), San Luis (Santander), Landazuri (Santander), San Jorge (Córdoba). ·Development studies of gold mining projects are being made for the following gold mines: La Colosa (Tolima), Taraira (Vaupés), la Y (ZaragozaAntioquia), Gramalote (San Roque-Antioquia), Quebradona (JericóAntioquia), Angostura (California-Santander).

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March, 2010

Opportunities/Growing Industries Mining

Coal mines: Currently Colombia exports over 60 million tons/year of steam coal principally from:

· Cerrejón: 32 million tons/year ­ 33.3% BHP ­ 33.3 % Anglo ­ 33.3 % Xstrata Cesar: 23 million tons/year ­ 100% Drummond Cesar: 10 million tons/year ­ Prodeco-Glencore ­ Vale (El Hatillo)

· ·

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Opportunities/Growing Industries Mining

Nickel and Copper in exploration and feasibility study phases:

Nickel Copper BHP Billiton Glencore Anglo American B2Gold

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March, 2010

Opportunities/Growing Industries Tourism and Real Estate

· 1.45 million foreigners visited Colombia in 2008 In 2009 tourism grew 10% Hotel boom, with tax benefits (income tax exemption) Luxury Resort Developments Medical "Tourism" -The second country in scientific and medical infrastructure in Latin America (2008) - 3,000 doctors graduate each year

· · · ·

International visitors to Colombia

Source: Departamento Administrativo de Seguridad DAS

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March, 2010

Summary of total expected investments Between 2009 and 2015

USD Billion

Exploration Oil Pipelines 19% 3% 1% 8% 7% Refineries Gas Expansion 19% Electric Energy Generation Electrification Fund 13% 5% 1% 3% 21% Transmission and Transformation Mining Biofuels Others Infrastructure

Source: Asociación Nacional de Industriales ANDI

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March, 2010

Colombia: The pipeline of infrastructure projects

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March, 2010

Road Concessions Ruta del Sol Las Americas Highway Las Montañas Highway Restructuring of the First and Second Generation Road Concessions

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March, 2010

Ruta del Sol

Description

1,071 km connecting Bogotá with the Caribbean and crossing 9 departments, major urban centers and important agricultural, industrial and mining areas. Segment I: Consortium Carlos Sorlarte Solarte, Conconcreto, CSS Constructores and IECSA. Segment II: Promesa de Sociedad Futura Concesionario Ruta del Sol S.A Constructora Norberto Odebrecht, Odebrecht, Investimentos em Infra, Estudios y Proyectos del Sol and CSS Constructores.

Concession agreements executed January 14, of 2010. Financial Closing must occur by January 13, 2011.

OPPORTUNITY TO REPRESENT

Segment I and II: Financing Parties Private Equity Funds and other non-operating sponsor investors Segment III: Individual sponsor parties, non sponsor contractors (EPC, operators and equipment suppliers) and bidding groups Financing Parties Ministry of Transportation, INCO, IFC USD 2.6 billion

Current Status

Segment III: ·Publication of terms of reference: March 10, 2010 ·Award: June 15, 2010.

WHO IS INVOLVED ESTIMATED INVESTMENT

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March, 2010

Las Americas Highway

Description

· More than 850 km of existing roadways along the Atlantic coast are to be restored, and 950 km are to be built which will connect Venezuela with Panama. Approximate total length 3046 km. The project integrates 6 existing concessions and creates two "sectors", a short term concession (7 years) for 881 km and a private investment of USD 837.4 million and a second long term concession (40 years) for 2165 km for USD 2.15 billion. Toll revenues and Government contributions are estimated to reach USD 994 million for Sector I and USD 2.251 million for Sector II.

· ·

·

OPPORTUNITY TO REPRESENT

Individual sponsor parties, non sponsor contractors (EPC, operators and equipment suppliers) and bidding groups Financing Parties

USD 3.05 billion Ministry of Transportation and INCO

Current Status

Sector I: Bidding Process underway.

Sector II: Under development.

ESTIMATED INVESTMENT WHO IS INVOLVED

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March, 2010

La Montaña Highway

Description

· Developed by ISA to connect Antioquia with the coffee growing region and the Las Americas and Ruta del Sol highways. It will connect traffic from the west and south with the Atlantic coast. · A 40 year concession for the construction, renovation and expansion of 900 km and maintenance of 1,250 km. ·Contributions from the Government of USD 500 million and regional entities of USD 500 million. ·Private funding requirements in excess of USD 400 million are anticipated. ·Construction contractor will contract with ISA.

OPPORTUNITY TO REPRESENT ISA Individual sponsor parties, non sponsors and contractors (EPC, operators and equipment suppliers) and bidding groups Private Equity Funds and other nonoperating sponsor investors USD 2.8 billion

Current Status

Technical survey and structuring phase Terms of reference expected to be released later this year.

ESTIMATED INVESTMENT

WHO IS INVOLVED

ISA, Ministry of Transportation and INCO

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March, 2010

Restructuring First and Second Generation Road Concessions

Description

· Expansion of the roads connecting Bogotá and Villavicencio and the Malla Vial del Meta. Both are already under concession. · New construction of 1,022 km "Arterias del Llano". ·The Government is expected to contribute USD 1.2 billion beginning with USD 300 million in 2010. · Authorized by the National Counsel for social and economic politics "Conpes" No. 3535 of 2008.

OPPORTUNITY TO REPRESENT

Financial Advisors to Government Individual sponsor parties, non sponsors and contractors (EPC, operators and equipment suppliers) and bidding groups Financing parties such as ECAs for equipment supply and multilaterals. Ministry of Transportation, Ministry of Economy, INCO and the Department of National Planning USD 1.2 billion

WHO IS INVOLVED

ESTIMATED INVESTMENT

Current Status

Enviromental license proceedings and studies.

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March, 2010

Urban Transportation Strategic Public Transportation System Commuter Train for Bogotá and Surrounding Areas

Bogotá Subway

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Strategic Public Transportation System

­2009: 4 cities currently have approved Strategic Public Transportation System plans (7 cities have commenced construction of Bus Rapid Transportation Systems, 3 have started operations). ­2019: 12 cities are scheduled to have operational Strategic Public Transportation Systems (9 cities will have Bus Rapid Transportation Systems).

OPPORTUNITY TO REPRESENT ESTIMATED INVESTMENT WHO IS INVOLVED

Equipment suppliers Financing parties: ECAs, Multilaterals Approximately USD 2 billion Ministry of Transportation and INCO

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March, 2010

Commuter Train for Bogotá

Description

·This project is divided into 2 contracts: ·Design and construction of an urban railway that integrates bordering municipalities with Bogotá. ·Concession for the operation and maintenance of the urban railway. ·Estimated length: 106 km in 3 phases: ·West-180th Street ·180th Street-Zipaquirá

OPPORTUNITY TO REPRESENT Individual sponsor parties and bidding groups Non sponsor contractors (EPC, operators and equipment suppliers) a Financing Parties (ECAs for equipment supply) USD 1.05 billion Ministry of Transportation and District of Bogotá

ESTIMATED INVESTMENT WHO IS INVOLVED

Current Status

·La Caro-Tocancipá ·Train Stations: 14 outside of Bogotá and 36 in Bogotá's metropolitan area. ·Estimated Required Trains: 30 in 2011 to 74 in 2040. ·Estimated concession term: 30 years. Phase I and II: Undergoing technical, legal and financial structuring. Terms of Reference Publication: 2nd half of 2010.

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March, 2010

Bogotá Subway System

Description

· 24 km subterranean light rail project to be integrated with the Transmilenio and the Commuter Train. · Up to 70% of the financing is expected to be provided by the Government, with the remainder from the District of Bogotá. · Selection process for the construction, operation and maintenance phases is expected to begin during the first semester of 2010. · Estimated award date second semester 2010.

OPPORTUNITY TO REPRESENT

Individual sponsor parties, non sponsor contractors (EPC, operators and equipment suppliers) and bidding groups Equipment suppliers and Equipment Financing Parties (ECAs) USD 2 billion National Government and District of Bogotá

Current Status

Consulting stage: - Conceptual Design - Operational Design - Technical, legal and financial structuring Terms of Reference expected to be published in 2011.

ESTIMATED INVESTMENT WHO IS INVOLVED

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Ports

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Ports

Current specific projects: ­ Agua Dulce (USD 180 million) · Current status: extension under construction, looking for foreign or local investors. Contecar (USD 184 million) · Current status: extension under construction. Puerto Nuevo (USD 1.05 billion) · Current status: extension under construction. Puerto Bahía (USD 400 million) · Greenfield project. Current status: permitting and looking for foreign or local investors. TCBUEN (USD 165 million) · Greenfield project. Current status: under construction.

OPPORTUNITY TO REPRESENT

Bidding groups Individual sponsor parties, non sponsor contractors (EPC, operators and equipment suppliers) Financing parties, including ECAs and multilaterals Private Equity Funds and other nonoperating sponsor investors Ministry of Transportation, Ministry of Mines and Energy and Private

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WHO IS INVOLVED

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The Buenaventura, Santa Marta, Barranquilla and Cartagena concessions have been extended for a total required investment estimated at USD 843 million. Additionally new ports are being developed privately on both coasts as private investments.

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Regional Airport Concessions

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Airports

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Long term Goals-2019 vision: ­ 2005: 15% of the main airports operating with optimal service (24 regional airports). ­ 2009: 60% of the main airports operating with optimal service (34 regional airports). ­ 2019: 100% of the main airports operating with optimal service (124 regional airports). Under concession to date ­ Cartagena recently renewed until 2019. ­ Barranquilla concession will be considered for renewal this year. ­ Cali, until 2022. ­ El Dorado (Bogotá), until 2026. Under major construction project for new terminals. ­ Medellín, until 2023.

·

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March, 2010

Regional Airport Concessions

Description

· Western Airports · 20 year concession for the collective operation, maintenance and infrastructure upgrades for the Pereira, Armenia and Cartago airports. · The project is yet to be structured and the bids are expected to be submitted and adjudicated during the second semester of 2010. · Estimated date bidding process: second half of 2010. ·Northeastern Airports · 20 year concession for the collective operation, maintenance and upgrade of the Cúcuta, Bucaramanga, Barrancabermeja, Valledupar, Riohacha and Santa Marta airports. · A financial advisor (joint venture) is developing the structure of the project and conducting feasibility studies. · The investments are expected to be USD 55 million. · Terms of Reference are expected to be published during the first half of 2010.

OPPORTUNITY TO REPRESENT

Individual sponsor parties, non sponsor contractors (EPC, operators and equipment suppliers) and bidding groups Financing parties Private Equity Funds and other nonoperating sponsor investors Not available yet Ministry of Transportation and Civil Aeronautic

ESTIMATED INVESTMENT WHO IS INVOLVED

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March, 2010

Railroads Carare Railroad Central Railway System

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March, 2010

Railroads

Long term Goals-2019 vision: ­ 2005: 33 million tons/year transported by train (1,424 km in service). ­ 2009: 53 million tons/year transported by train (1,999 km in service). ­ 2019: 90 million tons/year transported by train (2,501 km in service).

· The importance of improving the railroad infrastrucure is key to the development of the coking coal industry in Colombia which has great portential. · The Carare and Central Railroad concessions will allow new coal production to be transported economically to the coastal ports from Boyacá, Cundimarca and the Santander region. To date, only truck transportation is available.

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March, 2010

Carare Railroad

Description

· Development of a greenfield railroad to increase the capacity to transport coal from Cundinamarca, Boyacá and Santander, necessary to mine coking coal reserves.

·Construction of: 555 km · New section construction: 460 km · Construction with easement: 62 km · Existing railway rehabilitation: 33 km

·Terms of concession remain undefined.

OPPORTUNITY TO REPRESENT

Coal industry Bidding groups, individual sponsor parties, non sponsor contractors (EPC, operators and equipment suppliers) Financing parties, ECAs for equipment supply Private Equity Funds and other nonoperating sponsor investors USD 350 million Ministry of Transportation and Invias

Current Status

Feasibility study by the Ministry of Transportation.

ESTIMATED INVESTMENT WHO IS INVOLVED

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March, 2010

Central Railroad System

Description

· A 1214 km railroad that crosses the country from center to north is to be restored, rebuilt, operated and maintained. · The concession is expected to be for 30 years. · Will increase the capacity to transport coal in southern Colombia to the Cesar department in the north, tying into the existing Fenoco railroad concession which is being upgraded to transport over 80 millions tons/year of coal.

OPPORTUNITY TO REPRESENT

Coal industries Bidding groups, individual sponsor parties, non sponsor contractors (EPC, operators and equipment suppliers) Financing parties Private Equity Funds and other nonoperating sponsor investors

Current Status

Feasibility study by the Ministry of Transportation.

ESTIMATED INVESTMENT

WHO IS INVOLVED

Not available yet

Ministry of Transportation and Inco

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March, 2010

Power Sale of Isagen Forecast of Energy Projects Pescadero Ituango Project Porce IV Project El Quimbo Project

La Miel II Project

Hidrosogamoso Project

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March, 2010

Sale of the Nation´s Share in Isagén

Description

· The Government will sell its 57.66% of the AAA rated energy generator Isagen, third largest power generation company in Colombia. · Isagen owns 1832MW of installed hydro capacity and 30MW of installed thermal capacity. · A direct sale to EPM, the public utility company owned by the Medellin municipality, or a public privatization process is still being studied.

OPPORTUNITY TO REPRESENT VALUE WHO IS INVOLVED Energy industry and private equity funds USD 1.45 billion Ministry of Treasury and Public Credit

Current Status

· Estimated opening date for public bidding process: 1st semester 2010

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March, 2010

Current Energy Projects

December 2012 Hidroeléctrica Amoyá (Isagen): Coal Thermal (Gecelca): Diesel and Gas Termic (Termocol): Tolima Córdoba Magdalena From 2014 to 2019 Hidroeléctrica Hidroeléctrica Hidroeléctrica Hidroeléctrica Hidroeléctrica Hidroeléctrica Pescadero ­ Ituango: (EPM y otros) Hidrosogamoso: (ISAGEN) Porce IV : (EPM) El Quimbo : (Emgesa) Miel II : (EPSA y GENSA) Cucuana: (EPSA) TOTAL INVESTMENT Antioquia Santander Antioquia Huila Caldas Tolima 1,200 MW 800 MW 400 MW 395 MW 135.2 MW 60 MW 78 MW 150 MW 210 MW

USD 6 BILLION

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March, 2010

Sale of Power Generation Companies Gecelca and Urrá

Description

· The Government will sell its share in two power generation companies - 99% of Gecelca and 97% of Urrá (31% of total installed thermal capacity and 3.9% of hydro capacity).

· The Sale will represent 1500 MW (12%) of installed national capacity.

· Includes the TEBSA PPA and the TermoGuajira, and Urrá plants.

OPPORTUNITY TO REPRESENT ESTIMATED INVESTMENT WHO IS INVOLVED

Energy industry and private equity funds Financing Parties To be determined Ministry of Mines and Energy

Current Status

Terms of reference expected in the second half of 2010.

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March, 2010

Pescadero Ituango Project

Description

Sponsor: Hidroeléctrica Pecadero Ituango S.A. E.S.P.* · The project site is located in the Department of Antioquia, near the municipality of Ituango where the Ituango and Cauca rivers merge. · The plant will have an installed capacity of 2,400 MW and an average output of 14,000 GWh/year. · Will represent 20% of Colombia´s installed capacity. · Commercial operation is expected to begin in 2018.

*Controlled by Department of Antioquia with a minority interest owned by Empresas Públicas de Medellín (EPM)

Current Status

OPPORTUNITY TO REPRESENT Unrepresented pre-selected bidding parties Individual sponsor parties, non sponsor contractors (EPC, operators and equipment suppliers) and bidding groups Financing parties Private Equity Funds and other nonoperating sponsor investors USD 2.4 billion Ministry of Mines and Energy and EPM March, 2010

Environmental License was obtained in January, 2009. 7 bidders have been pre-selected. The award date has been postponed but had been originally scheduled for May 21, 2010.

ESTIMATED INVESTMENT WHO IS INVOLVED

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Porce IV Project

Description

· Sponsor: Empresas Públicas de Medellín (EPM) (whollyowned). · The project site is located in the lower basin of the Porce River, in the Department of Antioquia. · The plant will have an installed capacity of 400 MW and an average output of 2600 GWh /year. · Commercial operation is expected for second half of 2015.

OPPORTUNITY TO REPRESENT

Contractors (EPC, operators and equipment suppliers) Financing parties, multilaterals, ECAs Contractors USD 811 million Ministry of Mines and Enery and EPM

Current Status

Environmental License was obtained in December, 2008.

ESTIMATED INVESTMENT WHO IS INVOLVED

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March, 2010

El Quimbo Project

Description

· The project site is located in the Department of Huila near Neiva. · The plant will have an installed capacity of 400 MW and an average output of 2216 GWh/year. · It is estimated that the Quimbo project will provide 5% of the Colombian total energy demand. · Commercial operation is expected for late 2014. · Environmental License obtained in August, 2009. · EMGESA is a subsidiary of ENDESA S.A. E.S.P. International, Latin America's number one electricity company. EMGESA is also a significant player in the European Mediterranean region, operating in 11 countries. In Colombia, EMGESA S.A. E.S.P. owns and operates 11 power plants (nine hydro and two thermal).

OPPORTUNITY TO REPRESENT Contractors (EPC, operators and equipment suppliers) Financing parties Private Equity Funds and other nonoperating sponsor investors USD 700 million EMGESA

Current Status

Environmental License obtained in August, 2009. Construction phase is expected to begin the second half of 2010.

ESTIMATED INVESTMENT WHO IS INVOLVED

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March, 2010

Miel II Project

Description

· Sponsor: Promotora Miel II S.A. E.S.P., controlled by EPSA S.A. E.S.P.* · The project site is located in the east of the Department of Caldas, over the Miel River across Samaná, Marquetalia and La Victoria municipalities. · The plant will have an estimated installed capacity of 120 MW and an average output of 662 GWh / year. · Commercial operation is expected for 2014. *EPSA S.A. E.S.P. is a power generating company for the Pacific region of Colombia, controlled by Gas Natural

OPPORTUNITY TO REPRESENT

Contractors (EPC, operators and equipment suppliers) Financing parties Private Equity Funds and other nonoperating sponsor investors

USD 187 million EPSA

Current Status

Construction Phase is expected to begin the fisrt half of 2011.

ESTIMATED INVESTMENT WHO IS INVOLVED

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March, 2010

Hidrosogamoso

Description

· The project is located in the Department of Santander over the Sogamoso River. · The plant will have an estimated installed capacity of 820 MW. · Commercial operation is expected for 2014 · Isagén is under the obligation to build two alternate roads to arrive to Hidrosogamoso project that will be ready by 2013. · Andritz Hydro, Mitsui-Toshiba, Siemens S.A., and Imocom S.A. have been contracted. · Corporación Andina del Fomento (CAF) has signed a 140 million USD syndicated loan and the equivalent of 425 million USD are being issued locally in Colombian pesos.

OPPORTUNITY TO REPRESENT Additional Contractors (EPC, operators and equipment suppliers) Private Equity Funds and other nonoperating sponsor investors

USD 1.74 billion Isagén

Current Status

The dam construction agreement was awarded on December 2009.

ESTIMATED INVESTMENT WHO IS INVOLVED

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March, 2010

Posse Herrera & Ruiz www.phrlegal.com

[email protected]

Carrera 7 No. 71- 52 Torre A Piso 5 Phone: +571 3257300 Fax: + 571 3257313 Bogotá -Colombia

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March, 2010

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