The European Times - Argentina by The European Times

ARGENTINA

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Content

Argentina INTRODUCTION

• Argentina’s Fact File • Rich Cultural Heritage Marked by Strong Ties to Europe • Mercosur, EU’s Top Trade Partner in Latin America

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BUSINESS & INVESTMENT OPPORTUNITIES • Investment Opportunities from Energy to Tourism • Investment Development Agency Highlights Argentina’s Quality Offerings • Doing Business in Argentina • SwissInvest

CITY OF BUENOS AIRES

• Buenos Aires: Top Global Business Hub • Indexport Messe Frankfurt • Dynamic Bureau Highlighting City’s International Appeal

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• New Public Works Projects to Benefit All Argentines • Construction Chamber Helping Industry Meet International Standards • Isolux-Corsán group • Odebrecht Construction

AGRICULTURE

• One of World’s Top Food Producing Nations • Corn Industry Offers Significant Development Potential • Promoting Sustainable Development for Argentina’s Soybean Sector • Syngenta • Public Private Partnerships in Agriculture

TOURISM

• Feir’s Park Hotel • Unparalleled Natural and Cultural Attractions • Dollar Rent a Car

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INTERNATIONAL FUNDERS

• World Bank Providing Significant Development Support • Inter-American Development Bank Supporting Major Programmes in Argentina

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SCIENCE & TECHNOLOGY

• Tradition of Strong Performance in Science and Technology • Ministry of Science, Technology and Innovation • Global Leader in Science, Technology and Innovation • Global Science and Technology Hub • Bio Sidus S.A. • Innovative Biotechnology Enterprise Engaged in Cutting-edge Research • Promoting High Potential ICT Sector

TRADE & INDUSTRY

• Argentina and EU: Key Trade Partners • Promoting “Made in Argentina” Products Worldwide • Pernod Ricard

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Editorial: Emily Emerson-Le Moing

Office Manager: Samira Darghal

Production Coordinator: Katrien Delamotte

Regional Manager: Adam Bozsoki

Design: Martine Vandervoort Carine Thaens Johny Verstegen Walter Vranken Dirk Van Bun

Project Managers: Kelly McCord Kathryn Flack Mark Carette

The European Times 90 Vasall Road, London SW9 6JA United Kingdom Phone: +44 (0)208 371 2356 Fax: +44 (0)208 371 2410 info@european-times.com www.european-times.com The European Times is a trading name of United International Press Ltd

ENERGY & INFRASTRUCTURE

• Oil and Gas Institute Provides Essential Information for Investors • Third Largest Power Market in Latin America • Energy Secretary Announces Renewable Energy Initiatives • Positioning Argentina as a 21st Century Leader in Renewable Energy • Government Pouring Billions into Infrastructure

Director: Lieve Luyten

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ARGENTINA

Argentina’s Fact File Geography Location:

Southern South America, bordering the South Atlantic Ocean, between Chile and Uruguay

Geographic coordinates:

34 00 S, 64 00 W

Area:

2,766,890 sq km

Land Boundaries: Bolivia 832 km, Brazil 1,261 km, Chile 5,308 km, Paraguay 1,880 km, Uruguay 580 km Climate:

Mostly temperate; arid in southeast; sub-Antarctic in southwest

Terrain:

Rich plains of the Pampas in northern half, flat to rolling plateau of Patagonia in south, rugged Andes along western border

Elevation extremes Lowest point:

Laguna del Carbon -105 m (located between Puerto San Julian and Comandante Luis Piedra Buena in the province of Santa Cruz)

Highest point:

Cerro Aconcagua 6,960 m (located in the northwestern corner of the province of Mendoza)

Natural resources: fertile plains of the pampas, lead, zinc, tin, copper, iron ore, manganese, petroleum, uranium

Land use arable land:

Economy 10.03%

GDP (purchasing power parity): 393.6 billion (2008 estimate)

permanent crops: 0.36% GDP - real growth rate: other:

89.61% (2005)

Irrigated land:

15,500 sq km (2003)

Population Population:

7.1% (2008 estimate)

Trade Exports:

49.9 billion f.o.b. (2008 est.)

Exports, commodities:

soybeans and derivatives, petroleum and gas, vehicles, corn, wheat

Exports, partners:

Brazil 19.1%, China 9.4%, US 7.9%, Chile 7.6% (2007)

Imports:

40.9 billion f.o.b. (2008 est.)

Imports, commodities:

machinery, motor vehicles, petroleum and natural gas, organic chemicals, plastics

Imports, partners:

Brazil 34.6%, US 12.6%, China 12%, Germany 5% (2007)

40,913,584 (July 2009 estimate)

Urban residents: 92% of total population Ethnic groups:

Religions:

Languages: Literacy:

White (mostly Spanish and Italian) 97%, mestizo (mixed white and Amerindian ancestry), Amerindian, or other non-white groups 3% Nominally Roman Catholic 92% (less than 20% practicing), Protestant 2%, Jewish 2%, other 4% Spanish (official), Italian, English, German, French 97.2% of people age 15 and over can read and write

Introduction

Government Type:

Republic

Capital:

Buenos Aires

Time difference of capital: Administrative divisions: Independence:

UTC-3 (3 hours ahead of Washington, DC during Standard Time) 23 provinces and 1 autonomous city (distrito federal) 9 July 1816 (from Spain)

National holiday: Revolution Day, 25 May (1810) Legal system:

Mixture of US and West European legal systems; has not accepted compulsory ICJ jurisdiction

Chief of state and head of government: President Cristina Fernandez de Kirchner (since 10 December 2007); Vice President Julio COBOS (since 10 December 2007)

Cabinet appointed by the president

ARGENTINA

Rich Cultural Heritage Marked by Strong Ties to Europe Argentina, whose capital, Buenos Aires, is known as the Paris of Latin America, has a rich, diverse culture marked by a long history of ties with Europe. The land that is now Argentina was once populated by two indigenous tribes -- the Diaguita near Bolivia and the Andes, and the Guarani in the south and east, both of whom developed agriculture; the Diaguita managed to fight off the powerful Inca from the north.

Domination by Spain They were less successful with Spanish explorers and colonists, the first of whom, Juan Díaz de Solís, was killed in a battle in Argentina in 1516. Because of resistance from native tribes, the Spanish were unable to establish Buenos Aires successfully until the late 16th century.

Rio de la Plata (silver river) © Stockxpert

Diseases from Europe gradually weakened local tribes and Spain brought Argentina into its empire. The Spanish largely neglected Argentina in subsequent years, however, and after Argentina successfully drove off an attack by British forces in 1806 and 1807 with no help from Spain, a drive for independence began to grow.

Independence and the creation of a country Argentina was part of what was called the Provincias Unidas de Sud América (United Provinces of South America), which collectively declared their independence from Spain in 1816. After Bolivia, Paraguay, and Uruguay achieved their own independence from the group, the area that remained became Argentina, which established its first constitution in 1819. Argentina’s name comes from the Latin ‘argentum’, which means silver. The origin of the name goes back

Introduction

to the voyages made by the first Spanish conquistadores (conquerors) to the Río de la Plata (Silver River). The shipwrecked survivors of the expedition mounted by Juan Díaz de Solís discovered Indians in the region who presented them with silver objects, and Spain quickly focussed on what was called the Sierra del Plata, a mountain rich in silver.

Up until about the mid-20th century, much of Argentina’s history was dominated by political conflict between Federalists and Unitarians and between civilian and military factions. In 1946, President Juan Domingo Perón took office, with vast popular support. New economic and social policies characterised Perón’s two first consecutive mandates, but in 1955, a new coup d’état put an end to the Peronist government. Between 1976 and 1983, Argentina was ruled by a succession of military dictatorships in a period marked by violence and high foreign debt.

Return to democracy Democracy returned in 1983 after the government’s failed bid to seize the Falkland (Malvinas) Islands. The current democratic regime has survived a number of challenges since then, including the severe economic crisis in 2001-02 that led to violent public protests. A vast land with varied geography and a long coastline, Argentina attracted immigrants from all over the world in the 19th and early 20th centuries, particularly from Europe, mainly Italy and Spain. Argentina’s culture has been greatly affected by its immigrant population, each group of which tended to focus on different activities. Basque and Irish controlled sheep rearing, the Germans and Italians established farms, and the British invested in developing the country’s infrastructure. More than one-third of the country’s 32 million people live in Buenos Aires, the capital, with 90% of the country’s population living in the Buenos Aires metropolitan area. The principal indigenous peoples today are the Quechua of the northwest and the Mapuche in Patagonia, along with the Matacos and Tobas in the Chaco and other northeastern cities. There are strong Jewish and Anglo-Argentine communities throughout the country, as well as small communities of Japanese, Chileans and Bolivians, and enclaves of other immigrants. While Argentina’s official language is Spanish, many immigrants speak in the language of their original country. This ethnic mix has given Argentina one of the richest, most diverse cultures in the world.

Silhouette of Jose de San Martin’s monument. He was an Argentine General and the prime leader of the southern part of South America’s successful struggle for independence from Spain.

Globalisation of the economy Today, Argentina is steadily opening its economy to the world and welcomes foreign investment. Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. It was one of the world’s wealthiest countries 100 years ago, but misrule led to the economic crisis of 2001 when almost 60% of Argentines were living under the poverty line. Real GDP rebounded to grow by an average 9% annually over the next five years, however, taking advantage of the country’s previously neglected industrial capacity and labour, an ambitious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation also increased, however, during the administration of President Nestor Kirchner, who instituted price restraints on businesses, as well as export taxes. Beginning in early 2007, Cristina Fernandez de Kirchner succeeded her husband as president. Her government nationalised private pension funds in late 2008, which increased federal funds. The world is waiting to assess the direction of the new president’s economic policy.

ARGENTINA

MERCOSUR, EU’s Top Trade Partner in Latin America One of Argentina’s attractions for investors is its membership in MERCOSUR, the Southern Common Market which comprises Argentina, Paraguay, Uruguay and Brazil. Venezuela is currently in the process of integrating with MERCOSUR, which currently represents a total population of 190 million living in an area larger than the total surface of the European continent. Brazil is largest economy within MERCOSUR, while Argentina is the second largest and one of the fastest growing.

History

MERCOSUR grew out of the Latin American Free Trade Association (ALALC), signed in 1960, which provided for the creation of a free-trade zone among member states with customs duties at the discretion of the member states rather than set by legislation. The agreement did not serve its purpose effectively, and MERCOSUR was born in 1991.

MERCOSUR was initially focused on free-trade zones, then customs unification, and finally a true common market.

MERCOSUR’s guiding principles are as follows: • free transit of production goods, services and factors between the member states with the elimination of customs rights and lifting of nontariff restrictions on the transit of goods or any other measures with similar effects; • ﬁ xing of a common external tariff (TEC) and adopting of a common trade policy with regard to nonmember states or groups of states, and the coordination of positions in regional and international commercial and economic meetings; • co-ordination of macroeconomic and sector policies of member states relating to foreign trade, agriculture, industry, taxes, monetary system, exchange and capital, services, customs, transport and communications, and any others they may agree on, in order to ensure free competition between member states; and • commitment by the member states to make the necessary adjustments to their laws in pertinent areas to allow for the strengthening of the integration process. The Asuncion Treaty is based on the doctrine of the reciprocal rights and obligations of the member states.

European trade with MERCOSUR The EU’s trade with MERCOSUR totals as much as its total trade with the rest of Latin America. EU goods exports to the MERCOSUR region totalled €32.12 billion in 2007, while imports that year totalled €47.84 billion. EU investment stock in the MERCOSUR Region totalled €126.3 billion in 2006, and focussed mainly on industrial products, including machinery, transport equipment and chemicals. The EU is MERCOSUR’s second largest trading partner after the US, representing 19.6% of total MERCOSUR trade. MERCOSUR ranks eighth among EU trading partners, accounting for 3% of total EU trade in 2007. The EU is MERCOSUR’s first market for its agricultural exports, accounting for 21.27% of total EU agricultural imports in 2007.

EU-MERCOSUR free trade agreement Negotiations for an inter-regional Association Agreement between the EU and MERCOSUR began in April 2000. The agreement is based on a region-to-region approach. No sector will be excluded from liberalisation, although product and sectoral sensitivities on both sides will be taken into account. The agreement will cover not just goods, but services, investment and government procurement markets for goods, services and works.

• Investment Opportunities from Energy to Tourism • Investment Development Agency Highlights Argentina’s Quality Offerings • Doing Business in Argentina

Business & Investment Opportunities

“We did a study of medium sized foreign services companies in Argentina and they tell us they came here because Argentines speak many different languages and because Argentina links European and US time zones.” Dr. Beatriz Nofal, President ProsperAr

ARGENTINA

Investment Opportunities from Energy to Tourism As an investment target, Argentina has exceptional attractions. The country has established exceptionally solid macroeconomic fundamentals and over the past five years it has been ranked among the fastest growing economies in the world. In 2007, Argentina’s GDP growth rate was 8.7%, while the average annual growth rate over the last five years has been 8.8%. During the first semester of 2008, GDP grew 7.5% compared to the same period in 2007. More importantly, this growth is sustainable and predictable, making Argentina well able to weather the current global financial crisis.

a foreign financed, consumption-driven model, to a high-saving, high investment model.”

Advantages of Mercosur

Argentina’s industrial sector is characterised by a significant presence of multinational corporations, world-class local companies expanding abroad, and dynamic and innovative small and medium sized enterprises. Well-developed infrastructure gives a boost to industries geared to producing exports.

Along with its strong GDP growth, Argentina has boosted its international trade activities and its exports and imports are at record-high levels. The country has experienced a sizable and persistent trade surplus over the past eight years. A significant boost for Argentina’s trade is its participation in the MERCOSUR common market, which gives Argentina preferential access to a highly attractive market which has 265 million consumers and a joint GDP of more than US$1.8 trillion in 2007. According to ProsperAr, Argentina’s dynamic investment development agency, investment in Argentina has grown steadily over the past five years. After expanding by 13.6% in 2007, investment reached a record-high level at 22.7% of GDP measured in constant prices and an unprecedented 24.3% of GDP when measured in current prices. During the first semester of 2008, investment grew 12.4% compared to the same period in 2007.

Latin America’s highest investment/GDP ratio Argentina’s investment/GDP ratio, at current prices, is the highest in Latin America. As ProsperAr points out, “In this context, Argentina has transitioned from

Argentina’s industrial sector has been performing well, achieving significant productivity gains and a surge in output. A long industrial tradition has enabled Argentina to build a diversified manufacturing base. As an example, every year the country produces 7 million tonnes of vegetable oils, more than 15 million hectoliters of wine, over 400,000 tonnes of tanned leather, 1.2 million tonnes of paper, 200,000 tonnes of PVC and over 1.5 million tonnes of derivatives such as propylene and polyethylene, 275,000 tonnes of raw aluminum, 5 million tonnes of steel, 4.15 million tonnes of seamless and non-seamless pipes, and 550,000 automobiles.

Strong knowledge base A key reason for Argentina’s continued strong performance is its knowledge base. Highly educated, multilingual workers, prestigious institutions of higher learning, and thriving research and development activities combine to give Argentina everything potential investors need to succeed in knowledge-based enterprises.

ÂŠ Stockxpert

Argentina also has a long tradition of entrepreneurial activities and its business sector is both diverse and globally oriented. In fact, in 2007 Argentina was ranked tenth in the world in the Global Entrepreneurship Monitor survey of entrepreneurship and innovation.

Diverse natural resources, high quality of life Argentina is blessed with significant and very diverse natural resources, including mineral and energy resources as well as fertile farmland and well-preserved natural areas which are protected by strong environmental legislation. Argentina was ranked among the top ten countries in the world in the 2007 quality-of-life index prepared by International Living. In fact, Argentinaâ&#x20AC;&#x2122;s socioeconomic indicators are the highest in Latin America and are among the top 40 in the world. The

democratic government continues to be strengthened, and healthcare and social services are at a very high level. In addition, Argentina is a very safe country as well as culturally diverse and tolerant.

Investment Guarantee. The Foreign Investments Act (enacted in 1976) defines the legal framework for foreign investments and gives equal treatment to local investors.

Thanks to its many advantages, Argentina ranks 18th out of 25 countries of choice among the largest 100 multinational corporations, according to a UNCTAD report. Foreign direct investments in Argentina are widely protected by domestic law and by bilateral investment protection treaties. Argentina has signed 58 Bilateral Agreements for Mutual Promotion and Protection of Investments (APPRI).

Incentives for investors

Argentina is also a member of the World Trade Organisation (since 1995), has participated as observer in the Investment Committee of the Organisation for Economic Cooperation and Development (OECD) since 1996, and is a member of the Multilateral

To enhance Argentinaâ&#x20AC;&#x2122;s investment attractions, the government has instituted a number of incentives. These include reduction of the fiscal burden during the initial investment period, early reimbursement of VAT and/or accelerated amortisation for capital goods and infrastructure, freedom from import tariffs for capital goods and all goods that are part of large investment projects, regional development incentives, and sector specific incentives, for example for investments in energy or tourism. As for the future, Argentina will continue to offer extraordinary investment opportunities and to pursue strategies to ensure sustainable economic development.

ARGENTINA

Investment Development Agency Highlights Argentina’s Quality Offerings ProsperAr (Argentina’s National Investment Development Agency) is helping to stimulate investment in Argentina. The agency focuses on investment development rather than promotion, pursing an innovative approach to establishing medium-term and long-term investment strategies for the country.

ProsperAr works with local universities and with an advisory council made up of international and local enterprises. Dr. Beatriz Nofal, President, explains, “We particularly care about the Latin investor or indirect investor or local investor, as well as the many international companies, most of them from Europe, which are investing in Argentina today.” ProsperAr’s mission is to develop private, domestic and foreign investment; to promote the growth and internationalisation of local companies; and to optimise the investment environment, innovation and competitiveness in Argentina. As for Argentina’s investment attractions, Dr. Beatriz Nofal cites the very high quality of the country’s skilled human resources, which allows Argentina to excel at high value added products and services. She says, “We have three Nobel Prize winners in science and medicine, a record unmatched by any other Latin American country. We also have a very strong tradition in software development, including for the healthcare sector. Sabre does all its Internet operations in Buenos Aires, just one indication of our prowess in high tech fields. We cannot compete in mass production but we can compete in differentiation and added value.”

All that’s needed for adding value High standards of education and training, prestigious universities, sophisticated and competitive R&D centres and outstanding health services are other reasons Argentina is a winner when it comes to investments. Agriculture is another sector in which Argentina is very competitive. “Compared to agriculture in Brazil,

ProsperAr works with local universities and with an advisory council made up of international and local enterprises

farmers in Argentina do not need as many chemical treatments, and they can get to ports more easily,” Dr. Beatriz Nofal says. With its rich culture, varied landscapes, many sports facilities, and well developed wine industry, Argentina has great potential for tourism development. It also has a thriving energy sector, target of significant investment from Europe. For European investors, Argentina can serve as an excellent link between Europe and the US market, thanks to its location and its multilingual population. “We did a study of medium sized foreign services companies in Argentina and they tell us they came here because Argentines speak many different languages and because Argentina links European and US time zones,” Dr. Beatriz Nofal points out. She adds, “We work on measures to help multinationals achieve success here in Argentina.”

Business & Investment Opportunities

Doing Business in Argentina Argentina is a leader in Latin America in the ease of doing business. According to the Doing Business 2009 study, start ups take an average of 32 days in Argentina, compared to more than double that number for the region as a whole. In addition, the costs of starting a business in Argentina are significantly lower than the regional average, adding up to around 9% of gross national income per capita compared to 39.1% for the region overall. Minimum paid in capital for a start up averages around 3.7% in Argentina, compared to an average of over 19% in OECD countries. Concerning dealing with construction permits in Argentina, the time period is relatively long but costs are significantly less than the regional average, adding up to 183% of per capita income compared to 248% for the region. Argentina has also recently improved its ranking concerning the ease of hiring and firing workers, and has a strong record in opportunities to access credit for business ventures. Types of business ventures Argentina has enacted significant legislation to protect investors and to accord foreign investors the same rights and privileges as their local counterparts. Foreign companies may conduct business in Argentina on a permanent basis, or choose to appoint a local commercial representative, set up a branch office, incorporate a local corporate entity (subsidiary), or acquire shares in an incorporated Argentine company. The main types of investment vehicles utilised by non-resident individuals and foreign companies in Argentina are the branch, the corporation (“Sociedad Anónima”) and the limited liability company (“Sociedad de Responsabilidad Limitada”). Formation procedures for the three are comparable, but corporate governance regulations for a corporation or for a limited liability company are more stringent than for a branch. Whether the investor chooses a branch, a corporation or the limited liability company, all must operate according to Argentine law and, if based in Buenos Aires, must comply with the regulations of the Inspección General de Justicia. Argentina improved its “Paying Taxes” ranking by 12 in Doing Business 2009 compared to 2008, and now has more reforms in the works with the objective of promoting employment, production and consumer confidence. Companies are only required to pay 50% of labour taxes the first year of their operations and 75% the second year, according to a law passed in December 2008. The law also allows individuals and companies to repatriate capital to be invested in Argentina under a preferential tax rate of 1% to 8%.

ARGENTINA

SwissInvest

Swiss Financial Expertise and In- Depth Local Knowledge SwissInvest offers a winning combination of Swiss expertise in banking services and in-depth knowledge of the Argentina market, where the company has been operating for more than 20 years. SwissInvest is known for its staff of Swiss professionals who specialise in investment portfolio management for high income/high-net-worth individuals, families and ﬁnancial institutions. Founded in Argentina, SwissInvest now also operates in Chile, Uruguay, Paraguay and Venezuela. Hans Steinmann, formerly with Crédit Suisse for more then 20 years, founded SwissInvest as President and CEO in the late eighties and integrated his son Ralph as a Junior Partner in 2006. Hans Steinmann explains, “SwissInvest’s core activities are integral financial solutions and international financial management. We take into account a client’s risk profile and engineer a personalised strategy in accordance with asset allocation, marketing timing, product selection, investment horizons, and continuous follow up and portfolio rebalancing. A client does not have to go anywhere else. We are a one-stop shop for our clients, a family office.”

High potential sectors for investors The Argentina market offers investment opportunities even in

these periods of the international financial crisis. Ralph Steinmann points out, “There are some very interesting fields in the agriculture sector since land prices are still internationally attractive at the moment and the long-term demand for food will rise, creating potential for commodities production. Getting into the market now during the crisis is the best thing. You can start building up your business idea, and when the market rebounds, you will be ready.” Other investment opportunities Hans R. Steinmann highlights include the property market, particularly commercial property in Buenos Aires. Alternative energy is another field with strong potential, for example concerning ethanol production. “The city of Rosario has the best farming areas for this and you can get all the resources you need to produce ethanol,” he explains.

Hans Steinmann, President and CEO, and Ralph Steinmann, Junior Partner

particular sensitive cases but are not general standard in Argentine politics. Property rights on real estate are registered according to international standards.”

Security for investors

Argentina’s continued performance since the beginning of the global financial crisis reflects the country’s sound fundamentals, even though certain sectors have suffered a slowdown in their activities. As Ralph Steinmann points out, “Things are in reasonable shape in Argentina, and the government has enough reserves to manage this crisis and if necessary is willing to cooperate with multilateral institutions. Argentina has lots of opportunities for the future, and for investors in the EU. Argentina is one of the best to take into account for any South American domiciled investment project.”

Argentina also provides security for investors. Ralph Steinmann explains, “For European investors, Argentina is a safe country to invest in, since unlike in some other Latin American countries, nationalisation of assets only occurred in some

SwissInvest Viamonte 377 3 Piso C1053ABG / Buenos Aires, Argentina Tel.: +54 11 4313 2316 Fax: +54 11 4315 5199 info@swissinvest.com.ar www.swissinvest.com.ar

Argentina’s advantages for investors include its large pool of highly skilled, generally multilingual and low cost labour. Activities such as call centres and software development are particularly good choices.

• Buenos Aires: Top Global Business Hub • Dynamic Bureau Highlighting City’s International Appeal

City of Buenos Aires

“The city’s combination of styles and traditions, of the old and the new, is one of its distinguishing attractions. Traces of other cities in the world can be found in every spot of Buenos Aires, a combination that makes the city appealing and unique.” The Buenos Aires Convention and Visitors’ Bureau

ARGENTINA

Buenos Aires: Top Global Business Hub Buenos Aires has positioned itself as a top business hub. It is one of the largest cities in the world, the most important cultural capital in South America, and one the region’s political and economic centres. It has developed world-class infrastructure and is a centre for diverse economic sectors that include chemicals, mining, oil and gas, automobile, communications, infrastructure, banking, foods and beverages, agriculture, and electrical power. The city also has a well-established university system and world-renowned research and development centres in many fields. Located on the banks of Rio de la Plata, Buenos Aires is a major port city and logistics hub. It is also Argentina’s financial services centre, home of the Bank of Argentina (the country’s central bank) and the stock exchange. Metropolitan Buenos Aires constitutes the 13th largest economy among the world’s cities and supports thriving activities in services, manufacturing, construction and tourism.

Easily accessed from world capitals Buenos Aires, via Ezeiza International Airport 35 km west of the city, is served by international flights by major carriers to all the world’s capitals. Buenos Aires

is 13 hours from London by air; 11 hours from New York; 16 hours from Los Angeles; 13 hours from Toronto; and 16 hours from Sydney. Aeroparque Metropolitano Jorge Newbery (Jorge Newbery airport) is situated just 4 km from Buenos Aires’s city centre and is the hub of the country’s domestic flight system. World-class air, sea and road cargo transport facilities are also available in Buenos Aires.

Top choice for international meetings and events Buenos Aires has long been a top choice for international meetings and events of all kinds. According to the Buenos Aires Visitors and Conventions Bureau, Buenos Aires has advantages that facilitate holding events, such as memorandums of understanding with some countries, providing a VAT exemption to those foreigners who register in congresses or who purchase exhibition areas for expositions taking place in the country. The city has three fair centres with a total exhibition area of 150,000 m2, as well as several highly flexible facilities for smaller events. The city’s many four star and five star hotels offer their own upscale business centres and meeting facilities, while meetings are also held in museums, tanguerías (tango-show restaurants), theatres, clubs and other non-conventional places. La Rural Predio Ferial and Costa Salguero Exhibition Centre are the major event venues for the region,

Shopping centre

hosting major exhibitions like Argenplas, Expo Vida Country: Lifestyle Show and Agriflor De Las Americas. Costa Salguero has six exhibition pavilions, each offering a space of around 3,000 to 4,000 sq m, as well as five auditoriums and extensive facilities for banquets and other events. La Rural Predio Ferial offers around 45,000 sq m of indoor exhibition space and around 10,000 sq m of outdoor exhibition area as well as parking for around 100 vehicles.

The porteños (‘people of the port’), as the residents of Buenos Aires are called, are more European too, descended from the first Spanish founders and Italian immigrants from the 19th century. Their culture and cuisine still flavours the city and can be enjoyed in countless art galleries, theatres and museums, as well as fine restaurants. But the city has also created its own art forms, notably the tango.

Combining business with pleasure

The Buenos Aires central business district, which is also referred to as the City Porteña, is set in the city’s port area where the first European settlement in Argentina was founded. The business district runs from Monserrat in the north to Retiro railway station in the south, and from Buenos Aires Ecological Reserve to Puerto Madero.

Buenos Aires has developed a modern business infrastructure that meets international standards, and the city has great appeal as a tourism destination as well as for its quality of life. The sensual tango, famous steak houses, wonderful Malbec wine, unique leather and a variety of restaurants and cuisines all make Buenos Aires one of the world’s most exciting places to visit or call home. Thanks to its unique combination of history, customs, culture and people, Buenos Aires is particularly welcoming to Europeans, who will find many similarities between this Latin American capital and major urban centres in Europe. With its wide boulevards, leafy parks, grand buildings and varied culture and nightlife, the city is reminiscent of Paris or Barcelona.

Historic central business district

The district is the financial, commercial, and cultural hub of Argentina and its port is one of the busiest in South America. The port is connected to north-eastern Argentina, Brazil, Uruguay and Paraguay by navigable rivers, and serves as the main distribution hub for southeastern South America. As a business base or as a setting for international business meetings and events, Buenos Aires is clearly one of the world’s top destinations.

ARGENTINA

Indexport Messe Frankfurt

World-Class Organisation of International Fairs and Meetings Indexport Messe Frankfurt organises world-class international professional events in Argentina. Since 2003, Indexport has been the Argentina subsidiary of Messe Frankfurt, the world’s largest organiser of professional fairs. As Fernando Gorbarán, CEO and President, explains, “Indexport Messe Frankfurt has been responsible for some of the most successful professional events held in Argentina in recent years, all of which have attracted global leaders in their respective sectors.” One high-profile event co-organised by Indexport Messe Frankfurt was the 10th Parties Conference of the United Nations Framework Convention on Climatic Change (COP 10), that was held in Buenos Aires in December 2004. For ten days during this event, Argentina became the centre of discussions on climatic change at the global level, and Messe Frankfurt Argentina made sure the event met world-class standards.

Leading events in 2009 Upcoming events that Indexport is organising in 2009 include the following: • Seguriexpo, the South American Integral Security Fair, to be held August 12-14; • ExpoFerratera, the 10th International Hardware, Plumbing Parts, Paint and Construction Material Trade Fair, to be held September 3-6;

• Cosmesure Beautyworld Buenos Aires, the 16th international Hair Styling, Perfume, Cosmetics, Aesthetics and Beauty Fair, to be held September 12-14; • BIEL Light + Building Buenos Aires, the Biennial International Trade Fair for Electrical Engineering, Electronics and Lighting, to be held November 3-7.

Major exhibitions in 2010 In 2010, Indexport Messe Frankfurt’s international shows include Seguriexpo - BISEC, the International Security Exhibition and Convention, to be held August 25-27; Tecno Fidta, the 10th International Food Technology, Additives and Ingredients Exhibition, to be held September 21-24. And the most important, Automechanika Argentina, South America’s International Automotive Trade Fair from Design to Maintenance and Recycling. Fernando Gorbarán highlights the importance of Buenos Aires as the strategic entrance door to Mercosur. Its relevance as a city is given by being in a same space as one of the most important business centres of South America; it is the cultural capital city of the continent’s southern hemisphere; it has the infrastructure and service quality similar to the ones of the most important capital cities in the world and it has tourist attractions thanks to the Argentina landscape diversity: from the glaciars to the Andes and the waterfalls. In 2008, 290 exhibitions and 1,000 congresses have been carried out; this

Fernando Gorbarán, CEO and President

highlights the rising trend registered in the last years in our country and the level of professionalism and importance achieved by the activity. Having established a strong reputation for the wide range of customised services it provides individual companies, Indexport Messe Frankfurt has launched Coventure to assist companies and institutions in organising special events. In the future, Messe Frankfurt Argentina will continue to pursue its growth-oriented strategy and its commitment to guaranteeing the best possible services for all its customers.

Indexport Messe Frankfurt SA AV. Luis María Campos 1061 P. 5º C1426BOI - Buenos Aires Argentina Tel. +54 11 4514 1400 Fax. +54 11 4514 1404 www.indexport.com.ar www.messefrankfurt.com

City of Buenos Aires

Dynamic Bureau Highlighting City’s International Appeal The Buenos Aires Convention and Visitors’ Bureau is a dynamic non-proﬁt organisation whose mission is to position Buenos Aires as one of the main event and convention centres in Latin America, thus contributing to the city’s economic, social and cultural development.

The Bureau was created by private companies related to the tourism industry, including hotels, convention centres, tourism organisations, transportation firms and services companies. It is strongly supported by the city’s government as well as by public and private organisations. The Bureau is well equipped to offer a wide range of options for organising any kind of event in Buenos Aires.

Essential services for visitors and events organisers The Bureau offers a number of essential services for events organisers, partner companies in Argentina, and business visitors. These include researching events that promote the City of Buenos Aires; promoting and advertising Buenos Aires, both regionally and globally, as a competitive destination; and obtaining institutional support for congresses, incentive trips, events or conventions-related tourism, fairs, exhibitions, visitors, brand and product presentations, cultural, sport or religious events in the city.

Plaza Dorrego

The Bureau also provides promotional support for its partner companies and

technical advice and information about the city’s infrastructure and services. It partners with a number of local business organisations and institutions.

Promoting the city’s unique attractions A recent initiative which the Bureau supported was the selection of Buenos Aires as the World Book Capital City for 2011 to 2012. This honour reflects the city’s remarkable writers as well as flourishing bookstores and publishing projects, the popularity of magazines and publications, and the creation of professional institutions which advocate copyright protection and offer grants and subsidies for book publishing. The selection committee, under the auspices of the UNESCO, was made up of representatives from the International Publishers Association, the International Booksellers Federation, and the International Federation of Library Associations and Institutions (IFLA). Buenos Aires competed against Caracas (Venezuela), Lagos (Nigeria), Havana (Cuba), Porto Novo (Benin), Sharjah (United Arab Emirates) and Tehran (Iran). In this project and others, the Bureau’s main goal is to capitalise on Buenos Aires’s unique attractions as a business, cultural and tourism hub. As the Bureau points out, “The city’s combination of styles and traditions, of the old and the new, is one of its distinguishing attractions. Traces of other cities in the world can be found in every spot of Buenos Aires, a combination that makes the city appealing and unique.”

â&#x20AC;˘ World Bank Providing Significant Development Support â&#x20AC;˘ Inter-American Development Bank Supporting Major Programmes in Argentina

International Funders

World Bank Providing Signiﬁcant Development Support The World Bank is betting on Argentina. The global organisation is supporting Argentina’s development through its Country Partnership Strategy (CPS), which in its next phase (2010-2012) will continue to focus on the three pillars successfully supported under the WB’s previous strategy for Argentina: sustained growth with equity; social inclusion; and improved governance. The World Bank’s aims for its programmes to focus even more strongly on the social inclusion pillar in the coming years. According to the World Bank, “The Bank’s new strategy for Argentina seeks to advance the government’s development vision by providing pragmatic, performance-based support, consistent with an uncertain policy environment but adequate to the opportunities and reflecting the Bank’s positive experience in Argentina.” The Bank’s key objectives are to upgrade Argentina’s infrastructure as

a means of enhancing competitiveness, underpinning medium-term growth and combating poverty; improve the competitiveness, quality, and exports of agriculture and livestock production; address resource degradation; consolidate a reduction in poverty and expand efforts to reverse the longer-term poverty trend by increasing household incomes and integrating marginalised groups into the productive marketplace; consolidate improvements in health indicators and improve quality of education; strengthen the effectiveness, efficiency, transparency and accountability of public sector management; and expand performance management, improve the quality of public expenditure and enhance service delivery outcomes and trust in institutions.

Wide variety of programmes One of the WB’s projects in Argentina is PROSAP II, the Second Provincial Agricultural Development project, target of a 205 million World Bank loan. Other key projects promote innovation; better performance in the country’s healthcare system; upgrades to rural roads; enhanced performance by provincial

governing bodies; poverty reduction through employment; improvements to rural education; upgrades to ANSES; urban flood prevention and drainage; sustainable urban solid waste management systems; and infrastructure upgrades for Buenos Aires. The World Bank is also providing in-depth analyses of issues in Argentina, including poverty, social protection, institutional performance and governance, and environmental management. One of the World Bank’s recent projects is very high profile: in June this year, the World Bank approved a loan to support the largest sanitation operation in Latin America to date, a 575 million initiative to clean Argentina’s Matanza-Riachuelo river basin. The Matanza-Riachuelo Basin Sustainable Development Project aims to progressively eliminate discharges to the driver, thereby improving water quality and environmental conditions. With projects like these, the World Bank is demonstrating its confidence in Argentina’s future and helping to keep the country’s development plans on track.

One of the WB’s projects in Argentina is PROSAP II, the second Provincial Agricultural Development project

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Inter-American Development Bank Supporting Major Programmes in Argentina The Inter-American Development Bank (IDB), established in 1959 to support the process of economic and social development in Latin America and the Caribbean, is the main source of multilateral ﬁnancing in the region. With a triple-A rating, the Bank borrows in international markets at competitive rates and can structure loans at competitive conditions for its clients in its 26 borrowing member countries.

New 58 million loan for social protection

In addition, it also offers research, advice and technical assistance to support key areas like education, poverty reduction and agriculture. The Bank is also active on crossborder issues like trade, infrastructure and energy. The IDB Group is composed of the Inter-American Development Bank, the Inter-American Investment Corporation (IIC) and the Multilateral Investment Fund (MIF).

It will also finance the design, implementation, and consolidation of a new system to detect and monitor social risks in households covered by Programa Familias (Families Program), the largest initiative of its kind in the country. Programa Familias was launched in October 2005 with a 479 million IDB loan, and by January 2009 it had assisted more than 600,000 families.

In Argentina, IDB staff and local leaders determine how Argentina’s priorities coincide with the Bank’s development strategies for the region. The main objective of the Bank’s strategy for Argentina for 2004-2008 was to help the country achieve sustainable and more equitable growth.

IDB support will also help improve the operation of national programs for food security and educational inclusion. “This is a support that matters to the most vulnerable families in Argentina,” commented the manager of the Southern Cone Country Department at the IDB, Carlos Hurtado, when the new loan was announced. He added, “The program is also very timely considering the global financial crisis.”

The strategy focussed on institutional strengthening, for better governance and fiscal sustainability; the creation of a more favorable climate for investment and productivity growth, including reestablishing conditions for financing new private sector projects; and poverty reduction, through rebuilding the human resource base and promoting sustainable and inclusive social development.

The IDB recently approved a new 58 million loan for social protection in Argentina. The IDB loan will support a programme aimed at providing better access to education and healthcare to vulnerable families, improving their living conditions and human capital formation. The programme will help define a social protection policy that co-ordinates the actions of conditional cash transfer (CCT) programmes and will help realign the CCT programs currently operating.

Argentinean coins

• Tradition of Strong Performance in Science and Technology • Ministry Promoting Knowledge Based-Economy • Global Science and Technology Hub • Promoting High Potential ICT Sector

Science & Technology

“We focus on supporting comprehensive and innovative projects that will stimulate the market. All our projects are doing well, and even with the ﬁnancial crisis we are going to be able to launch some new projects this year, including a new Science Park in Palermo.” Lino Barañao, Minister of Science, Technology and Innovation

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Sector

Tradition of Strong Performance in Science and Technology Argentina has demonstrated world leading competence in science and technology, producing three Nobel Prize winners who include Bernardo Houssay, the ﬁrst Latin American awarded a Nobel Prize in the sciences (in 1947). He established Argentina’s National Research Council, a centerpiece in the country’s scientiﬁc and technological development and a symbol of Argentina’s drive to make a name for itself in the sciences. The effort has succeeded: Argentina is often referred to as La docta Latinoamericana, the learned Latin American. As a World Bank report in 2005 pointed out, “Investments in knowledge production — advanced education, technology diffusion, and research — hold considerable promise for placing Argentina on the path to sustainable growth. Actions have been taken on several fronts to strengthen Argentina’s national innovation system. Particularly promising are initiatives to stimulate excellence in research and increase innovation in small and medium size enterprises (SMEs).” One reason for Argentina’s strong performance in science and technology is its multilingual, very well educated population. Four out of five Argentine adults have completed grade school, over a third have completed their secondary education and one in nine Argentine adults have college degrees, making the Argentine work force the most educated in Latin America. Argentina has some 1.5 million students in its state university system.

Expertise in cutting-edge fields Argentina has shown particularly strong expertise in medicine, nuclear physics, biotechnology, nanotechnology, and fields related to the country’s leading economic sectors. Several Argentine scientists are ranked on the cutting edge in nanotechnology, physics, computer sciences and cardiology; Argentine Dr. Domingo Liotta developed the world’s first purely artificial heart, in 1969. In the biosciences field, Argentina’s Human Genome Project successfully mapped the genome of a living being, a global first. Argentina has also developed its own satellite programme, fourth generation nuclear power plants and a public nuclear energy company (INVAP) which provides nuclear reactors to many countries. Argentina’s CONAE programme has successfully launched two satellites and in June 2009 formed a partnership with the European Space Agency for the installation of a 35m in diameter antenna and other mission support facilities at Argentina’s Pierre Auger Observatory. Argentina has many world-class research and development centres as well as a number of prestigious universities and other institutions of higher learning, including 122 think tanks specialising in public policy and economic issues. Argentina’s oldest university, Universidad Nacional de Córdoba (the National University of Córdoba), was founded in 1613 and is still known for its exceptional research activities.

Science & Technology

Ministry of Science, Technology and Innovation

Ministry Promoting KnowledgeBased Economy Argentina’s Ministry of Science, Technology and Innovation is playing a key role in the country’s drive to foster a knowledge-based economy. The ministry was created in 2007 by President Cristina Fernández de Kirchner with the goal of designing and implementing policies that will encourage knowledge-based production and the development of cutting-edge technologies in which Argentina can have a competitive edge, particularly nanotechnology, biotechnology and information technology. Within the new ministry, the Secretariat of Planning and Policy is particularly promoting innovation in the energy, health and agro-industry sectors.

Creating wealth out of knowledge Lino Barañao, Minister of Science, Technology and Innovation, says that his ministry was created to “produce wealth out of knowledge. Our main goal is to promote the development of new technology, new companies, and new jobs.” Argentina already has some thriving high tech sectors, including nuclear energy, a field in which it has been involved for 50 years; Argentina is the only South American country producing nuclear reactors. In addition, Argentina’s National Aerospace Agency develops, produces and sells satellites in South America,

and the country’s biotechnology sector includes around 80 successful companies. As Lino Barañao points out, “Argentina cannot become a mass producer like China or East Asia, so we need to focus on niche markets, and that requires innovation and adaptation to a particular purpose. We have already demonstrated our ability to do this in the energy sector. We can compensate for our lack of manpower with a high capacity for innovation.” The government has created a number of specialised institutions to stimulate high tech activities, including the National Foundation for Nanotechnology, which offers development financing and is supported by a 103 million World Bank grant. Forging stronger links with the private sector, including universities, is paramount for the ministry, which has a budget of around 103 million per year for project development as well as an additional 239 million from external sources, including the World Bank. Lino Barañao says, “We choose universities to work with, based on the quality of their courses, and we collaborate closely with the private sector. We focus on supporting comprehensive and innovative projects that will stimulate the market. All our projects are doing well, and even with the financial crisis we are going to be able to launch some new projects this year, including a new Science Park in Palermo,” he says.

Lino Barañao, Minister of Science, Technology and Innovation

Stronger ties with EU Lino Barañao is eager to strengthen ties between Argentina and the EU. He says, “We are opening an office in Europe to facilitate the integration of Argentinean scientists into the EU, and Argentina is already very active in Brussels as well as in leading the Mercosur-EU Project in biotechnology funded by the EU. Argentina can provide innovative scientists for European companies establishing R&D units in the country, and European companies can test new products here in Argentina. For example, Argentina allows for testing of genetically modified organisms under the supervision of the Secretariat of Agriculture, which is impossible in Europe. The association between Argentinean and European companies can be very beneficial for both sides.”

Global Leader in Science, Technology and Innovation Argentina has a long history of stellar performance in many scientific activities and is focusing strongly on promoting scientific innovation. In 2007, President Christina Fernandez de Kircher created the Ministry of Science, Technology and Innovative Production, whose mandate is to design and implement policies to foster a knowledge-based society and to help bring new ideas to the production stage. The government is targeting cutting-edge fields like nanotechnology, biotechnology and information and communications technology. Highly skilled human resources and scientific institutions with strong track records give Argentina a competitive edge. The government aims to make the most of these advantages and is making sure that innovative foreign companies will find many opportunities for investment and partnerships in Argentina. The government signed an agreement last year with the International Bank for Reconstruction and Development to finance human resources programmes in advanced technology, and the ministry’s Secretariat of Planning and Policy has launched programmes in four key areas: energy, agro-industry, social development and health, all deemed priorities for Argentina’s development.

Prestigious scientific institute recruits internationally A key player in Argentina’s research sector is Instituto Leloir, created in 1947 to provide private support for research in biochemistry and molecular biology. It was founded by Luis Federico Leloir, who won the Nobel Prize for chemistry in 1970. Today, according to Fernando Goldbaum, Director, the Instituto Leloir has research activities in neurobiology, cellular biology, plant biology and microbiology, among other fields. It has close ties to CONICET (Argentina’s National Scientific Council) and to the universities of Buenos Aires, Quilmes and San Martín. The Instituto Leloir undergoes regular external reviews to ensure that its activities meet the highest international standards. As Fernando Goldbaum explains, “This unbiased external review process we chose was revolutionary here in Argentina.” He adds that the Instituto Leloir also sets itself apart in its recruitment procedure, which is based on international competition. “We want to attract the best scientists and we are constantly looking for new scientists to join our team,” he says. The Instituto Leloir has developed several patents over the past year alone and owns them all through a company it founded in 2006. It is also involved in outreach activities. It continuously upgrades its facilities

Science & Technology

and equipment and plans to establish a Centre for the Creation of Biotechnology Companies.

Eriochem: focus on research and development Eriochem, another R&D leader, is involved in synthesising active pharmaceutical ingredients, manufacturing pharmaceutical products, and developing added-value generics or “supergenerics”. As Antonio Bouzada, CEO, explains, “Our R&D department, the lifeblood of our organisation, consists of an efficient team of dedicated research scientists and doctors who use innovation and creativity to continuously work on new products and processes.” Eriochem is well known for its sustained-release pharmaceutical products based on biodegradable polymers and for the innovative high-tech processes it employs for the production of micro-spheres. Eriochem has two pharmaceutical plants and one API synthesis plant, which have been approved by FDA, EMEA, TGA, MERCOSUR (Brazil, Argentina), SouthAfrica and Korea among other health authorities worldwide, and manufactures its own raw materials and essential ingredients, i.e. Oxaliplatin and Melphalan among others, including growing the plant needed for its highly successful Vinorelbine. In all its processes, Eriochem employs state-of-the-art technology. Eriochem has obtained Marketing Authorisations or is in process of obtaining them in 63 countries worldwide. Eriochem has positioned itself as a reliable and innovative partner for international companies. It already partners with Sandoz (Novartis), Kalbe Pharmaceuticals, Hospira, Teva and Mylan, among others. Eriochem has patented the innovative processes it uses in manufacturing many

Open Pool Australian Light-Water Reactor built by INVAP

of its leading products, including Lectrum®, the first generic of Leuprolide Acetate Depot in the world.

CERELA: award-winning innovation which benefits society The Centre of Reference for Lactobacilli (CERELACONICET), launched in 1976 to research lactic-acid bacteria (LAB), has received a number of prizes for innovation, including three prestigious INNOVAR awards from the Ministry of Science, Technology and Innovation. Graciela Font de Valdez, Director, explains that the INNOVAR award last year was for developing a way for the bio-conservation of baked goods. The biopreservative, based on selected lactic acid cultures, allows reducing chemical additives and a longer shelf life of bakeries. “From a health and economic standpoint, this new process is very important,” she says proudly. CERELA’s focus on lactic-acid bacteria means that it has in-depth expertise concerning the production of a number of food products which are very beneficial to the health. “We have a culture collection of 1,200 strains, which is unique in Latin America. Some specimens are from ecological pockets that are now extinct and which have particular functional properties for industrial applications,” Graciela Font de Valdez explains. In addition to its research and development activities, CERELA is involved in training; partnering with national and international universities and research institutes; and taking research to the production stage.

Eriochem S.A.

Benefiting society is a priority for CERELA. Graciela Font de Valdez says proudly, “We developed a probiotic yoghurt and made it available to populations at risk, mainly disadvantaged children. The results were fantastic. If children consume this social probiotic, they have fewer and milder intestinal and respiratory infection events

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Instituto Leloir

Integration Cleaning Room INVAP

as well as higher body weight. The project has been transferred to the Tucumán Government; as a result, around 100,000 local schoolchildren are now receiving the probiotic within social programs framework.”

research and development in nanotechnology.” CNEA is also involved in research in solar technology, cosmic radiation and other fields, in partnership with other institutions in Argentina and abroad.

CNEA: specialist in nuclear energy and its applications The Comisión Nacional de Energía Atómica (CNEA, or National Atomic Energy Commission), which depends from the Ministerio de Planificación Federal, Inversión Pública y Servicios (Ministry for Federal Planning, Public Investment and Services) is working to ensure adequate energy supplies to fuel Argentina’s continuing development and to stimulate research and development in the field of nuclear energy. The organisation’s areas of expertise include nuclear energy and its applications (including nuclear medicine) as well as security, waste disposal and R&D. Norma Boero, President, explains that CNEA is working to boost Argentina’s nuclear power capacity through establishing international partnerships. “Argentina now has two nuclear power plants and is about to finish the construction of a third. The Secretary of Energy of Argentina is close to a decision about a forth one and planning several others. We are currently in discussions with potential international investors and partners. We are qualifying to manufacture some parts of CANDU reactors here in Argentina,” she says. Argentina has already made significant advances in the field of nuclear power and related applications. Norma Boero says, “One of our priorities here at CNEA is nuclear medicine. Argentina has developed a method to produce Molibdenum 99 which is unique in the world, and we are now exporting Molibdenum 99 to neighbouring countries and selling the technology for production worldwide. We are also involved in

INVAP: Expertise in complex technologies INVAP – owned by the province of Río Negro but run as a private company – specialises in nuclear technology, satellite systems and industrial projects involving advanced technologies. INVAP has a strong track record as a reliable partner and is the only company in Argentina qualified by US space agency NASA for space projects, including the construction of satellites, payloads and ground stations. INVAP achieves around €35.7 million (US$50 million) in revenues per year and has grown by more than 50% over the past three years. Héctor Otheguy, General Manager and CEO, explains that INVAP provides customised, complete solutions tailored to suit each client’s needs. He says, “In addition to our long experience with nuclear energy, we are the only company in Latin America with the ability to design and integrate satellites, not only spacecraft but also payloads. We can handle everything except the launching. Basically we are involved in all kinds of activities involving complex technologies.” INVAP is currently a finalist to supply a €356.7 million (US$500 million) replacement nuclear reactor in the Netherlands, and in 2006 it provided a €142.7 million (US$200 million) nuclear reactor for Australia. It is also getting involved in new energy fields. “INVAP is a good example of Argentina’s international competitiveness in high-tech activities,” Héctor Otheguy concludes. Dynamic institutions like these are helping to make Argentina’s competitiveness in scientific research and new technologies better known throughout the world.

Science & Technology

Global Science and Technology Hub Argentina is positioning itself as a leading international hub for technology research and development. With its skilled human resources, long tradition of scientiﬁc and technological innovation, a thriving SME sector and well-established research institutions, Argentina has what it takes to become a global leader. In recent years the country has established a number of technology and science parks designed to foster research and development and to provide an ideal base for high-tech enterprises. The parks are designed to enhance Argentina’s competitiveness, promote investments and improve national and international ties in science and technology. Such parks feature a number of investment incentives, including tax breaks, free movement of imported goods and services, and well-developed infrastructure. Leading parks include Bahia Blanca Technological Hub; Mendoza Technology Hub; Argentine Northeastern IT hub in the province of Chaco; The Argentine Northwestern Cluster; Jujuy Hub; Corrientes Hub; Infotech Neuquén; Tandil Scientific and Technology Park; Business Aires IT Hub; Coastal-Centre Technology Park; Constituyentes Technology Hub; IT District of Greater La Plata; and Cordoba Technology Park. Argentina has also created several projects designed to encourage innovation. These include CREA (Creative and Cultural Companies Incubator); the Technology Projects Incubator of the Province of Buenos Aires; the BAITEC NETWORK of Buenos Aires; INCUBA (Design and Cultural Industries Business Incubator); and Dinámica SE, a support network for entrepreneurs.

Funds supporting high-tech development Argentina has also launched funds specifically for high-tech development. These are the Software Industry Promotion Trust Fund (FONSOFT); the Argentine Technology Fund (FONTAR), targeted at securing funding for businesses and institutions aiming at promoting technological modernisation and innovation; and the Fund for Scientific and Technology Research (FONCYT).

To make sure Argentina has the human resources to support science and technology growth, the government has created new educational programmes which include prioritising information and telecommunications technology for the 1,500 doctoral fellowships awarded each year by the National Scientific and Technical Research Council (CONICET). Other educational initiatives include the Bicentennial Fellowship Programme, which supports advanced study in applied and natural sciences, including engineering, biology, physics and mathematics. One growth area is the software industry, which now includes more than 1,000 companies employing a total of more than 50,000 people and exporting their products to more than 100 countries. Argentina is well placed to become a major world supplier of software, just one high-tech area in which the country aims to make its mark globally.

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Bio Sidus S.A.

Biopharmaceuticals for Global Markets Marcelo Argüelles, President of Bio Sidus, Argentina’s innovative biopharmaceuticals enterprise, discusses his company’s key goals. Why does Bio Sidus focus on biotechnology? In pursuing our strategy of vertical integration in the 1980s, we decided on biotechnology, which was a new field at that time. We chose this focus in part because Argentina has excellent scientists; in fact, Argentina has produced three Nobel Prize winners in life sciences. We began to produce recombinant human erythropoietin (EPO) in the 1990s; EPO is probably the most important biopharmaceutical product in the world with annual sales of around US$10 billion (€7.18 billion).

What is Bio Sidus doing to remain competitive? We believe we are well positioned, through our research and development and manufacturing capabilities and our established network of distribution partners throughout the world, to take advantage of opportunities for growth and trends in the global biosimilar therapeutics market. We are developing a new technology involving transgenic animals and gene therapy. We expect to convert our robust pipeline into products available in the markets we are currently presenting and in others to come.

We sell our products in thirty countries all over Latin America, Southeast Asia, Africa and the Middle East and we are expanding to 20 other emerging markets. We are currently planning to enter Japan, the US, the EU and Australia. We already have agreements with some partners in the territories we are selling and are looking for others in central markets. What kind of partners are you looking for? We especially want to find partners to help us license our products in the US and the EU. Licensing our products in new markets is our big challenge, along with marketing. Our products are “biosimilar” or biogeneric products. We are looking for potential partners with expertise in the sales of biogenerics or which have good relations with institutions that buy these products. We are waiting for patents to expire in the US and the EU so that we can apply our expertise in these products in the challenge of the global biogenerics scenario. What is your market share? Few companies are producing the kind of products Bio Sidus develops and none have such a complete range of biosimilars in its product portfolio. Since our inception, we have contributed with 60 million doses of biotechnology products in 30 countries. We have 85% of the Argentinean market for EPO and 50% for all of Latin America.

Marcelo Argüelles, President

Science & Technology

Bio Sidus S.A.

Innovative Biotechnology Enterprise Engaged in Cutting-Edge Research Bio Sidus S.A., founded in 1983, has become a leading developer and supplier of world-class biopharmaceutical products to 30 countries throughout Latin America, Asia, the Middle East, Africa and Eastern Europe. It achieves annual turnover of around US$40 million (€28.7 million) and is a global leader in sales of biosimilar recombinant human erythropoietin (EPO) and other cutting-edge biogeneric products. The fast-growing enterprise, which already operates according to the highest international standards, plans to enter the European, North American and Australian markets in the next few years, and Marcelo Argüelles, Bio Sidus’s President, is currently looking for partners to help the company achieve its goals in these markets. Bio Sidus excels at delivering high quality biopharmaceuticals at affordable prices.

History of innovation

The company also counts on a robust pipeline of product candidates in different stages of development.

First EPO developed in Latin America Bio Sidus launched EPO in 1990, the first recombinant human protein fully developed and manufactured in Latin America. To date, Bio Sidus has launched seven recombinant proteins currently distributed in Argentina and abroad. Continuing to innovate, Bio Sidus now has more than 10 biomolecules in its pipeline, and continues to conduct groundbreaking research in transgenic animals and gene therapy.

High-tech facilities to meet international standards Bio Sidus has two manufacturing sites in the city: the 6,200 sq m Almagro plant, which focuses on manufacturing active

Bio Sidus has been expanding its activities over the years. In 1980, the original pharmaceuticals company, Sidus, branched out into cutting-edge biotechnology activities, including cell cultures, genetic engineering and protein purification. Since the launch of our first product in 1990, we have manufactured and sold more than 60 million drug product units in emerging markets, with more than 75% of our revenues, for fiscal year 2008, derived from sales outside Argentina, and approximately 40% from sales outside Latin America. Bio Sidus’s proven expertise in Biotech manufacturing methods has resulted in a wide range of biopharmaceuticals, which include Interferon alfa 2a, Interferon alfa 2b, Filgrastim and Somatropin, all produced through bacterial fermentation; and Epoetin, Lenograstim and Interferon Beta 1a, produced through mass cell culture.

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pharmaceutical ingredients; and the 5,000 sq m Bernal plant, which specialises in fill-finish, freeze-drying and packaging operations. In early 2008, to increase capacity for its fast growing biogenics projects, Bio Sidus acquired a 12 hectare manufacturing site with a 12,000 sq m facility to be refurbished to produce bacterial fermentation and mass-cell-culturederived biomolecules, which will help Bio Sidus meet growing demand for such products in the US and EU markets. This facility will be operative in late 2010.

Guiding principles: safety and security Safety and security are guiding principles for Bio Sidus, whose research, development and manufacturing facilities are all strictly controlled to ensure that all activities meet the highest quality standards. The Bio Sidus Quality Assurance System includes regular internal and external audits and inspections and exhaustive process validation.

Groundbreaking research and development Bio Sidus is developing new technologies for the high-yield and cost-effective production of recombinant proteins for pharmaceutical applications. Aiming at the optimal expression system for each product, Bio Sidus develops the production of recombinant proteins in bacteria, mammalian cell lines, yeast and transgenic animals. One of Bio Sidusâ&#x20AC;&#x2122;s advances is the development of transgenic cattle to obtain recombinant human proteins for therapeutic use.

Transgenic animals to produce human proteins Bio Sidus has concluded the development of human growth hormone obtained from the milk of cloned transgenic cows, achieving a high yield of the target protein at a convenient manufacturing cost. Bioequivalence of this protein has been conducted in healthy volunteers versus a reference somatropin product available in the market. The results have been satisfactory and the efficacy clinical trial in children with growth retardation has been scheduled for late 2009. This is the last step in the regulatory process to obtain the necessary authorisations to market the product. The current herd of cattle transgenic for human growth hormone is made up of 30 hGH-producing cows. Another target protein has been the bovine growth hormone which has successfully been expressed in the milk of cloned transgenic cows. This method of production results in a recombinant protein substantially similar to recombinant bovine growth hormone produced using bacterial fermentation. We currently have four cows that are producing recombinant bovine growth hormone in their milk and we are in the process of selecting a founder animal. The target market for this product is the dairy industry in countries where it has been approved for use aimed at increasing milk production, including Mexico, Brazil and the United States. Finally, we have applied this manufacturing method to the obtention of human insulin. We have developed a genetic construction that encodes for an inactive human insulin precursor and we have generated eight

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Sector

transgenic cows with this gene. This strategy has been adopted to prevent potentially fatal side effects in the host transgenic cow. The human insulin precursor that was expressed in the milk must be further purified and enzymatically cleaved resulting in a biologically active recombinant

human insulin product suitable for use in humans. As our transgenic cows reach sexual maturity, we will start the milking process to assess the presence of insulin precursor in their milk and to conduct the selection of the founder animal based on the level of expression and quality profile

of the target protein. After selecting a founder animal, we will begin the development of the production process, as well as stability assays and preclinical studies. We have applied for patent protection in the United States for our production process of recombinant human insulin.

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Marcelo Argüelles, President

Clinical trials testing gene therapy for cardiac conditions Angiogenesis and muscle regeneration using the vascular endothelial growth factor. Vascular endothelial growth factor (VEGF) is a protein that stimulates the growth of blood vessels. We have developed technology to generate naked plasmids containing the VEGF human gene in conditions suitable for administration to humans (i.e., pharmaceutical grade) with the aim of injecting these plasmids into the heart muscle in patients with perfusion disorders. This plasmid would be inserted in the patient’s myocardiocytes to cause the patient’s cells to produce the VEGF protein in order to generate new blood vessels. The resulting contribution of more blood and consequently, more oxygen, to the heart muscle would improve its function. We conducted preclinical trials in animals and we have observed a successful reperfusion of areas of ischemic tissues in the heart of these animals and also tissue regeneration with no toxic or undesirable side effects associated with this treatment. Following very positive preliminary results we started Phase I clinical

trials, GENESIS I, in humans involving ten patients conducted at the Fundación Favaloro, the major cardiological centre in Argentina. The naked plasmid is administered through a catheter that injects it directly into the ischemic area of the heart muscle of the patient. We have observed a significant improvement of cardiac function in all of them, diminishment of angina, increase of the ejection fraction, and no adverse effects or serious side effects throughout patient follow-up. New clinical trials include Phase II plasmid injection in no-option patients with chronic ischemic heart disease; Phase II coronary artery bypass grafting combined with direct injection of plasmid in myocardial territories non amenable to surgical revascularisation in patients with severe coronary heart disease, and a Phase I/II in severe limb ischemia.

range of 1 to 5 degrees Celsius. These microorganisms, have the potential for significant industrial applications in the field of “cold enzymes” for industrial processes. Additionally, some of the projects we are working on include a collaborative agreement for the production of a Human Papillomavirus vaccine for emerging countries, and broadening the scope of our pharmaceutical dairy project to obtain a mastitis free line of transgenic cows and a herd of cloned transgenic cows for the production of therapeutic monoclonal antibodies.

Bio Sidus White Genome Project Yet another groundbreaking initiative for Bio Sidus is the White Genome Project, which aims to isolate, identify and characterise Antarctic bacterial strains for further sequencing of the complete genome.

With its impressive track record, Bio Sidus is well prepared to succeed in new markets in the coming years, and offers outstanding opportunities for partners in the EU and the US.

In collaboration with the Argentine Dirección Nacional del Antártico, we have developed research aimed at the isolation and characterisation of certain microorganisms from the Antarctic territory that are particularly adapted to extreme temperature. We have isolated and identified a novel species, Bizionia argentinesis and have sequenced its full genome, among some 400 strains of Antarctic bacteria, characterised for living in a temperature

BIO SIDUS S.A. Constitución 4234 (C1254ABX) Buenos Aires Argentina Tel.: +54 11 4909 8000 www.biosidus.com.ar www.sidus.com.ar

Science & Technology

Promoting High Potential ICT Sector The Chamber of Informatics and Communications of the Republic of Argentina (CICOMRA), founded in 1985, serves to promote the development and long-term growth of Argentina’s information and communications technology (ICT) sector. The organisation’s members include key players involved in all aspects of ICT in Argentina, including industrial production, commercialisation and services.

Hundreds of member companies, both domestic and foreign Headed by Norberto Capellán, President, CICOMRA encompasses hundreds of companies, from small to large and both domestic and foreign. CICOMRA has formed a number of committees which focus on important aspects of Argentina’s ICT sector: computing, communications policy, foreign trade, technology and industry. The committees debate and analyse such key issues as market trends in the ICT sector and the application of new ICT technologies in order to improve Argentina’s social and economic welfare. CICOMRA’s guiding principles are to promote technological development, education, employment opportunities, better quality of life, scientific evolution, the international competitiveness of Argentina’s ICT sector, and new opportunities for the ICT sector and for all Argentines. Argentina’s ICT sector is a key driver for the national economy, and Argentina’s IT market is the second

largest in the Latin America region. It is projected to grow at a compound annual growth rate (CAGR) of 9% between 2007 and 2012, and the total value of IT spending on IT products and services in Argentina should reach e2 billion this year and e3.4 billion by 2012.

working with the National Consumer Arbitration (SNAC) group since 2004. Several CICOMRA member companies and a CICOMRA officer act as arbitrators.

To ensure that this strong development continues over the long term, CICOMRA partners with a number of leading groups in related sectors, including the Institute of Electrical and Electronics Engineers (IEEE), the Spanish-American Association of Research Centres and Telecommunications Companies, and the Argentina Chamber of Commerce, among others.

CICOMRA is also involved in a range of initiatives designed to promote the implementation of ICT in various areas of Argentine society. CICOMRA organises the Mate.Ar awards to honour the best Argentine web sites, and since 1992 CICOMRA has been organising an annual exhibition devoted to the ICT sector: Expo Comm Argentina, which attracts participants from throughout Argentina and from many other countries. In all its activities, CICOMRA serves as the voice of Argentina’s ICT sector.

Handing dispute resolution is another function of CICOMRA, which has been

Promoting ICT in Argentina

• Argentina and EU: Key Trade Partners • Promoting “Made in Argentina” Products Worldwide

Trade & Industry

Argentina and EU: Key Trade Partners With its vast natural resources and favourable trade polices, including its membership in MERCOSUR, Argentina has built up thriving foreign trade activities. The EU is one of the country’s top trade partners as well as accounting for around half of all foreign direct investment in Argentina. The EU and Argentina established a Framework Trade and Economic Co-operation Agreement in 1990, and negotiations for a free trade agreement between the EU and MERCOSUR countries, including Argentina, have been in progress since 2000. Argentina is already a key exporter of agricultural goods to the EU while Europe is Argentina’s second biggest export market after Brazil. The EU has a trade deficit of €2.5 billion with Argentina. Europe and Argentina co-operate closely to remove unnecessary barriers to bilateral trade, especially in the mutually important area of food and health standards. They are also working on improving enforcement of rules in areas like intellectual property and investment.

e7.5 billion (the sixth straight year double-digit trade surpluses were recorded). Argentina’s exports in 2008 totalled an estimated e50 billion, mainly in agricultural products (soybeans and related products, corn and wheat, and beef). Other leading exports were petroleum and gas, and vehicles. Argentina’s top export partners last year were Brazil, China, the US and Chile. Imports to Argentina totalled e40.9 billion in 2008, mainly in machinery, motor vehicles, petroleum and natural gas, organic chemicals, and plastics. The top sources of imports are Brazil (the US, China and Germany). Trends in Argentina’s exports include the growing importance of industrial manufacturing, which accounted for only 10% of the country’s exports 20 years ago but provided 31.1% of exports in 2007. This growth trend is set to continue.

The EU exported some €5.9 billion in goods to Argentina in 2007 and imported around €8.5 billion. The EU’s main imports from Argentina are agricultural products and raw materials (accounting for 77% of total imports). The EU exports mainly manufactured goods such as machinery, transport equipment and chemicals to Argentina. Concerning trade in services, EU services exports totalled €2.3 billion in 2006 while its services imports from the country totalled €1.6 billion. The EU has a surplus in services trade with Argentina of around €741 million at present.

Trends in foreign trade In 2007, Argentina’s foreign trade in merchandise, both imports and exports, reached record levels. Imports grew 31% to €30.5 billion that year while exports grew 20%, to €38.1 million, resulting in a trade surplus of

ARGENTINA

Promoting “Made in Argentina” Products Worldwide Export.Ar is the ﬁrst point of contact for both local and international companies and investors interested in learning more about opportunities for exports from Argentina. It is a non-proﬁt foundation created to promote exports of goods and services from Argentina, to provide information for export-oriented companies, and to serve as a link between Argentina based enterprises and global markets.

Promoting competitiveness and diversification Export.Ar’s members are from both the public and private sectors, and the organisation works as a whole to assist Argentina’s business community in promoting “made in Argentina” products internationally. Export.Ar also promotes measures to ensure the greater competitiveness of Argentine products in global markets as well as promoting the ongoing diversification of Argentina’s exports.

To help raise the profile of Argentina’s exports worldwide, Export.Ar regularly represents Argentina’s export enterprises at international conferences and exhibitions. Export.Ar also provides export-oriented companies with technical assistance, lists of importers, consultation concerning export development, technical assistance, statistics and more. Export.Ar can also help organise business trips abroad for Argentine business leaders, and promotes the participation of Argentine firms in international meetings and exhibitions. Export.Ar regularly organises seminars focusing on key issues involving Argentine exports. The foundation operates out of its headquarters in Buenos Aires and also has 63 representative offices all over the country.

The organisation works in partnership with Argentina’s Ministry of Foreign Affairs as well as with other business and trade organisations and over 120 embassies, consulates and economic sections of international organisations operating in Argentina. To provide the best possible support for export oriented organisations in Argentina, Export.Ar has set up export promotion centres throughout the country which are designed to provide logistics and other infrastructure assistance to help companies succeed in their projects.

Invaluable source of information Export.Ar also serves as an invaluable source of information for Argentine firms concerning opportunities in foreign markets. It also provides information about global market trends, international events and exhibitions related to exports in specific sectors, as well as about opportunities in MERCOSUR.

Services for foreign companies and investors For foreign companies and investors, Export.Ar can provide access to suppliers of goods and services in Argentina; information concerning applicable laws, tariffs and marketing standards in Argentina; and information about the country’s macroeconomic situation, industry, trade results and more. For both local and foreign companies involved in exports, Export.Ar serves as an essential partner.

Trade & Industry

Pernod Ricard

Global Leader a Top Source for Fine Argentinean Wines Global beverages giant Pernod Ricard is number one in its sector in Argentina, where the company has ﬁve facilities and four wineries and achieves around €86.1 million (US$120 million) in annual turnover. Pernod Ricard supplies a range of alcoholic beverages to the Argentina market and beyond, and is a major player in the distribution of Argentina’s highly prized wines. Eduardo Otero, Director General Pernod Ricard Cono sur-Andes, explains, “We export and distribute Argentinean wines to over 40 countries, including to Europe, where we are promoting premium Argentinean wines. Our company has been growing by 35% per year for the past seven years.” Around 15% of Pernod Richard Argentina’s total sales are exports. The Pernod Ricard Group achieves turnover of €7.7 billion per year in consolidated sales and is ranked number four in the world in sales of wines and champagnes, selling some 26 million cases per year. Formed from the merger of two historic French companies, and later acquiring Seagram’s, Pernod Ricard is now ranked number one in its sector in Europe and the Asia-Pacific and number two in the Americas. Pernod Ricard has 19,300 employees in

70 countries. In March this year, the group acquired Sweden’s Vin & Sprit AB, the owner of Absolut Vodka, for €5.63 billion, adding to Pernod Richard’s portfolio of top quality beverages. The group’s leading brands include some of the world’s best known whiskies, white spirits and rums, liqueurs, wines and champagnes, and of course the signature aniseed based Pernod and Ricard.

Premium wines for the European market Thanks to its strong performance in Argentina, Pernod Ricard has a commanding position in a wine market that is now the second fastest growing in the world, according to Eduardo Otero. In Europe, Pernod Ricard’s Argentinean wines bear the Graffigna label, and the company is working to increase brand awareness of Graffigna in all its European markets. “We focus on quality and premium prices,” Eduardo Otero points out. Pernod Ricard works closely with local organisations like “Wines of Argentina” and Expotar, and it regularly represents Argentina in wine festivals worldwide. In fact, this year the company is investing even more in its highly successful wine exporting activities. In Argentina as in all its markets, Pernod Ricard has demonstrated a

Eduardo Otero, Director General Pernod Ricard Cono Sur-Andes

strong commitment to community service through many types of sponsorships and other initiatives, and it has launched a number of recycling and environmental programmes. Eduardo Otero is very confident about Pernod Ricard Argentina’s future. He says, “We plan to keep our number one position in all segments of the market and with all of our 15 key brands.”

Pernod Ricard Jujuy 1197 (B1661 KTA) Bella Vista Buenos Aires Argentina Tel:+54 11 4469 8000

• Third Largest Power Market in Latin America • Energy Secretary Announces Renewable Energy Initiatives • Positioning Argentina as a 21st Century Leader in Renewable Energy • Government Pouring Billions into Infrastructure • New Public Works Projects to Benefit All Argentines • Construction Chamber Helping Industry Meet International Standards

Energy & Infrastructure

“We offer training to members of the chamber, such as training in using new technologies, to make sure that construction workers in Argentina can perform at international standards.” Carlos Enrique Wagner, President Argentine Chamber of Construction

Energy & Infrastructure

Oil and Gas Institute Provides Essential Information for Investors The Petroleum and Gas Institute of Argentina (IAPG) represents companies involved in Argentina’s oil and gas sector and serves as a key source of information on the industry. Ernesto A. Lopez Anadon, President, explains, “Our members are involved in reﬁning, transportation, distribution, and services, essentially all oil and gas sector activities.”

In fact, the institute’s main purpose is education. It organises training sessions, technical seminars and international events related to the oil and gas sector. One event being organised by the IAPG is the 24th World Gas Congress to be held in Buenos Aires October 5-9, 2009. This key professional meeting will attract more than 3,000 delegates from all over the world.

Source of key technical information

Ernesto A. Lopez Anadon explains that the IAPG works to help attract more investment to Argentina’s oil and gas sector. “It is our goal to enhance oil and gas activities in the region. As an institution we would like to see more companies coming here to increase the number of members in the IAPG,” he says. In fact, the IAPG serves as a very useful first point of contact for foreign investors looking for information about opportunities in Argentina’s oil and gas industry.

Unlike chambers of commerce, which lobby the government concerning the interests of their members, the IAPG focuses on providing technical information to its members and to the government. Ernesto A. Lopez Anadon notes that Argentina’s government often consults the institute concerning technical issues related to the oil and gas sector.

First point of contact for investors

For larger European companies, for example, “there is a lot of potential for acquisition of smaller Argentine energy firms,” Ernesto A. Lopez Anadon points out. He notes that he also sees excellent opportunities for investment in solar and wind energy development, as well as in energy generation in general, to help Argentina’s growing economy meet its needs in the future.

“Most favourable situation in South America” Argentina offers a number of attractions for investors. Ernesto A. Lopez Anadon says, “Once the economic crisis ends and business starts to grow again, we will see a need for importing energy into Argentina because of the increased demand. At the end of the day, investment comes down to issues of taxation, barriers of entry and risk. Other than taxation, Argentina has the most favourable situation in South America.”

Oil pumpjack in Argentina desert 41

ARGENTINA

Third Largest Power Market in Latin America Argentina constitutes the third largest power market in Latin America and its energy sector offers exceptional investment attractions. The country has developed an essentially open power generation sector in which around 75% of total installed electricity generation capacity is in private hands, while the state controls nuclear power generation as well as the country’s two bi-national hydropower plants, Yacyretá (Argentina-Paraguay) and Salto Grande (Argentina-Uruguay).

Transmission and distribution Energy transmission and distribution activities are highly regulated. Concerning transmission, the Compañía Nacional de Transporte Energético en Alta Tension (Transener) operates the national electricity transmission grid, while in the distribution sector, three private companies, Edenor (Empresa Distribuidora y Comercializadora Norte), Edesur (Electricidad Distribuidora Sur) and Edelap (Empresa de Electricidad de la Plata), dominate the market. The country’s two main power distribution systems are SADI (Sistema Argentino de Interconexión, Argentine Interconnected System) in the north and southcentral parts of the country, and SIP (Sistema Argentino de Interconexión, Patagonian Intercon-

The Patagonia Region has huge potential of around 500 GW of electricity generation

nected System) in the south; the two systems have been integrated since 2006. A new distribution programme will add 4,813 km of high voltage transmission capacity. In 2004, President Néstor Kirchner created Energía Argentina Sociedad Anónima (Enarsa) to handle the exploitation and commercialisation of petroleum and natural gas, as well as the generation, transmission and trade of electricity.

Thermal energy top source of electricity Most of Argentina’s electricity comes from thermal generation (54% of installed capacity) and hydropower generation (41%), and the country still has a large untapped hydroelectric potential. Since the country’s thermal generation facilities are powered by natural gas, the government is developing strategies to cope with rising gas prices and is

instituting programmes to encourage research and development in renewable energies. Total electricity coverage in Argentina was as high as 95% in 2003, but around 30% of the rural population still lacks access to electricity. To deal with this, the government has launched the Renewable Energy in the Rural Market Project (PERMER) programme, funded by the World Bank.

Advanced regulatory environment Argentina has developed an advanced regulatory environment for the energy sector, which is overseen by the Energy Secretariat (SENER, responsible for policy setting), while the National Electricity Regulator (ENRE) is the independent organism within the Energy Secretariat that is responsible for applying the regulatory framework. CAMMESA (Compañía Administradora del Mercado Mayorista

Energy & Infrastructure

Eléctrico) is the administrator of the wholesale electricity market. The Electric Power Federal Council (CFEE), created in 1960, is the administrator of funds that specifically target electricity operations.

Focus on renewable energies Argentina’s drive to develop renewable energy and promote energy efficiency is spearheaded by the National Promotion Direction (DNPROM) within SENER, while the Secretariat for the Environment and Natural Resources (SEMARNAT) is responsible for environmental policy and the preservation of renewable and non-renewable resources. Concerning wind energy, the Patagonia region has huge potential of around 500 GW of electricity generation. Wind power has increased significantly in Argentina during the last decade, but still totals only about 0.05% of the country’s theoretical potential for wind energy generation. Solar power is even less developed; only 81 MW·h of solar power was generated in 2005, less than 0.1% of total electricity production.

Meeting tomorrow’s energy demands To keep up with rising demand for electricity, two new thermal power plants, the José de San Martín Thermoelectric and Manuel Belgrano Thermoelectric, 830 MW each, began operating this year, while five thermal plants with a total capacity of 1.6 GW and an overall investment of e2.19 billion began operating in 2008. Concerning hydropower, the Yacyretá dam has been elevated to increase its electricity by 60%, while a new 3-turbine plant in the Añá Cuá arm of the Paraná River will be completed in 2010 and the Embalse nuclear power plant will be refurbished to extend its operational life beyond 2011.

In March 2008, the government created a new natural gas market called Gas Plus to encourage private investment in natural gas exploration and production. The Gas Plus regime applies to new discoveries and to “tight gas” fields. The price of the new gas, whose commercialisation will be restricted to the domestic market, will be based on costs and a reasonable profit.

Gas Plus programme for natural gas exploration and production

In December 2007, the Government launched the National Programme for the Rational and Efficient Use of Energy (PRONUREE), which includes short and long term measures aimed at reducing Argentina’s electricity consumption by 6%.

In September 2006, SENER launched the Energy Plus (Energía Plus) programme with the objective of increasing generation capacity and meeting the raising electricity demand. In this new de-regulated market, only energy produced from new generation plants will be traded.

Argentina welcomes partnerships with Europe in the energy sector. Spain and Argentina, for example, recently announced that they will form a working group that will analyse energy efficiency in accordance with the objectives of the recently founded International Agency for Renewable Energy, or IRENA.

Energy Secretary Announces Renewable Energy Initiatives Argentina is focusing on renewable energies to ensure its energy needs in the future. Daniel Cameron, Secretary of Energy, explains, “We have launched a programme that will allow the development of electricity generation from renewable sources. This programme will improve quality of life for our citizens, protect the environment by reducing harmful emissions, encourage investment, generate around 8,000 new jobs, and promote Argentine industry.”

Around e1.03 billion in investments The new programme, to be implemented through the national energy company ENARSA, is designed to encourage investment in renewable energy projects in order to “strengthen the incorporation of alternative energy in our energy matrix,” according to Daniel Cameron. He adds that he anticipates domestic and foreign investments totalling some e1.03 billion in renewable energy projects in Argentina. Projects to produce ethanol in northern Argentina have already attracted over e68.4 million; Argentina aims to double its ethanol production by 2010. According to Argentina’s National Development Programme, 8% of the country’s energy needs will be fulfilled by renewable energies by 2016. To help reach this goal, ENARSA will purchase 1000 MW of electricity from renewable sources, including 500 MW of electricity derived from wind energy, 150 MW from biofuels, 120

MW from the conversion of urban waste, 100 MW from biomass sources, 60 MW from small hydropower plants, 30 MW from geothermal sources, 20 MW from solar energy, and 20 MW from biogas. ”This energy is being supplied by ENARSA through power purchase contracts for a period of 15 years,” Daniel Cameron explains.

Strong potential for alternative energies Research into Argentina’s potential to develop alternative energy sources has covered wind power, biomass energy, solar energy, small hydroelectric plants and geothermal energy. As a result of these studies, ENARSA has already implemented the Comodora Rivadavia project, which has produced Argentina’s first prototypes of high power wind turbines. Argentina’s diverse geography gives it exceptional potential for alternative energy development. Patagonia, for example, offers strong prospects for wind energy while other provinces can develop solar energy, the Andean region is a source of hydropower, and Northern provinces can grow crops for ethanol production. According to Energy Secretary Daniel Cameron, ENARSA is currently making progress in the construction of a prototype solar generator to power steam production in the province of Salta. Meanwhile the country is significantly upgrading its power infrastructure to transport electricity produced through renewable energies to customers throughout the country.

Energy & Infrastructure

Positioning Argentina as a 21st Century Leader in Renewable Energy The Argentine Renewable Energy Chamber is “creating solid foundations for an industry that has enormous potential in Argentina in the 21st century,” according to Carlos St. James, President and founding member. The organisation, officially launched a year ago, is active in promoting the development of a wide variety of renewable energy sources in Argentina. “Argentina is very much a biodiesel country, so we started with bio-fuels, and now we are starting to work with wind, solar and biomass energy. We foresee a wave of investment in biomass,” Carlos St. James explains. In fact, Argentina is already ranked among the world’s top four producers of bio-diesel, and most of its production is being exported

to Europe. Argentina’s bio-diesel is based on soy oil, and as one of the world’s leading producers of soy and derivative products, the country is well placed to serve as a source for this new type of fuel. Ethanol-based biofuel derived from sugar is another growth product for Argentina. Overall, renewable energy has enormous potential for Argentina and the Chamber is making sure that the country makes the most of this. “The renewable energy industry needed a forum, and that is what this chamber is providing. We join forces to lobby the government and see if we can get improvements in the country’s laws in order to attract investments,” Carlos St. James says.

Partnership opportunities with local energy firms The chamber now has 70 members, around half of whom are foreign.

Many of these companies are open to forming partnerships with European investors. “A lot of our members are looking for capital to build bio-diesel plants. Argentina is an emerging market and by definition an emerging market is a market that needs capital. We also need buyers for our energy. Germany is the biggest market so far but Argentina has productive ties with Spain, Italy and France as well,” Carlos St. James points out. Now is the time and Argentina is the place for investment in renewable energy. Carlos St. James says, “Argentina is destined to continue to be an exporter of bio-fuels. We have such varied climate and terrain that we can produce any type of source of bio-fuels. This is a great time to be involved in renewable energies. We are at the beginning of what I think will be known as the renewable energy century, and Argentina is positioned to be at the forefront of it.”

Soy bio-diesel is a fuel alternative produced from soybean oil

ARGENTINA

Government Pouring Billions into Infrastructure Argentina enjoys well-developed infrastructure in comparison with other countries in Latin America, and in December 2008 the government launched a major initiative designed to upgrade the country’s infrastructure further. President Cristina Kirchner announced that she planned to pump more than 14.3 billion into Argentina’s infrastructure, in part to counter the effects of the global cash crunch. “We will launch one of the most ambitious public works programmes in memory,” the president said. Argentina’s infrastructure was improved significantly during the 1990s, as a surge in investment made up for years of neglect during the 1980s. With the economic crisis of 2001, however, spending on infrastructure stalled. The country’s road network is extensive and currently mostly in reasonable repair, but the rail network needs upgrading and all transport infrastructure requires investment to meet the needs of the country’s growing economy. Argentina has around 215,000 km of roads, including 734 km of expressways or highways, but only around 63,500 km are paved. Argentina has been the recipient of a number of aid packages to improve infrastructure, including e307.79 million from the World Bank for highway construction. The new public works

Route 52

programme is expected to include the construction of an international highway. The rail system transports both freight and passengers around Argentina over around 38,300 km of track, but the system needs modernisation. Several tourist oriented trains operate in Argentina and have potential for development as the country’s tourism industry takes off.

Major projects recently launched Several major infrastructure projects have been launched recently. In March 2009, Argentina’s infrastructure and construction major Corporacion America (CASA) signed two Memoranda of Understanding (MoU) for the construction of the 23 km Los Liberatores railway tunnel, which will help ease the transport link between Chile’s port of Valparaiso and Argentinean capital Buenos Aires. Meanwhile, according to the Inter-American Development Bank (IDB), the city government of Buenos Aires is planning an ambitious expansion project for the city’s metro system, which will involve building 25 km of new track. The estimated cost of the project is e1.7 billion, and the first phase is budgeted at around e519.82 million. The IDB will provide around e342 million of this funding. Metropolitan Buenos Aires, home of most of the country’s population, already has an extensive system of public transportation, including subways and buses, but most smaller cities and towns in

ARGENTINA

Sector

Argentina have limited transportation resources.

Ports and waterways Argentina also has 10,950 km of navigable waterways, but most of the country’s ports are located on the Atlantic coast and relatively little freight is transported along the inland waterways at present. The nation’s main ports include Bahia Blanca, Buenos Aires, Comodoro Rivadavia, La Plata, and Mar La Plata (all located on the Atlantic Coast), with Rosario and Santa Fe serving as inland river ports. The port of Ushuaia is located in the extreme southern tip of the nation near Cape Horn where the Atlantic and Pacific Oceans meet. With its vast spaces, Argentina has developed more than 1,300 airports, but only 142 of them have paved runways. The country’s top airports are Ezeiza International near Buenos Aires, the main point of arrival and departure for most international ﬂights, and Aeroparque Jorge Newbery, where

domestic ﬂights and connections with Brazil, Uruguay, and Paraguay originate. To help finance upgrading airport facilities and services, the government launched an airport privatisation programme in the late 1990s.

Well-developed telecommications Concerning telecommunications infrastructure, Argentina’s telecom market is one of the most advanced in Latin America. Fixed-line teledensity is higher than in neighbouring Brazil and Chile. The fixed line market, though liberalised, is dominated by Telefónica de Argentina and Telecom Argentina. The long distance market is highly competitive and VoIP is well developed. Argentina’s broadband penetration is second only to Chile’s. ADSL is the main broadband technology, but around a third of the country’s subscribers use cable modem connections. Three players dominate: Telefónica de Argentina, Telecom Argentina, and Grupo

Clarín. Argentina is a world leader in pay television, in spite of regulatory battles involving the government, pay TV companies, and telecom operators. Argentina’s mobile market is the third largest in Latin America, after Brazil’s and Mexico’s. Three operators -- Movistar, Claro, and Telecom Personal -- lead the market. All three have launched 3G services over HSDPA networks, and have extended 3G coverage to all of Argentina’s 23 provinces. Despite having passed the 100% penetration threshold, the Argentine mobile market still has some potential for growth. In fact, despite the current economic slowdown, telecom revenues are expected to continue growing in 2009, driven by mobile telephony and broadband. Regulatory projects in the pipeline include measures to encourage market competition, number portability regulations, selection of a digital terrestrial TV standard, implementation of a Universal Service Fund, and the development of a new regulatory framework.

ARGENTINA

New Public Works Projects to Beneﬁt All Argentines Argentina’s government is focusing on fulﬁlling the needs of all Argentines in the public works projects it has planned over the next few years.

José Lopez, Secretary of Public Works, commented in a recent speech, “Over the past six years, Argentina has registered significant growth and improvement in all its social indicators. We have also made a major investment in infrastructure, completing over 10,000 infrastructure projects since 2003. The president’s new infrastructure development plan will allow us to pour even more resources from the public and private sectors into moving ahead more rapidly with the country’s Strategic Plan for Territorial Development announced in March 2008.”

Energy, transport and quality of life The Secretary of Public Works announced that new projects to be launched this year and in the next few years will focus on energy generation, transmission and distribution; transportation infrastructure, including road and rail networks; and initiatives to improve the habitats of all Argentines, including projects to create new housing facilities, sewage systems, schools, hospitals, sidewalks and more. The new initiatives, budgeted at a total 111 billion pesos (19.7 billion) -- of which 71 billion pesos (12.6 billion) involves structured financing -- will be aimed at creating more jobs, boosting the activity of the construction sector, and providing better quality of life for all Argentines. Around 57 billion pesos (10.1 billion) has been earmarked for projects in 2009, more than double the 2008 budget.

Focus on decentralisation Recent infrastructure projects have taken into account the government’s efforts towards decentralisation. As José Lopez points out, “It should be noted that almost all the projects which have been completed recently

Buenos Aires train station of Retiro

have been carried out in a decentralised manner. Provinces and individual municipalities have handled bids and development of the projects throughout the administrative process,” he says. In future projects, the Secretary of Public Works says, the focus will be on more job creation, better geographical distribution of projects, more local involvement, and the participation of more companies, particularly small and medium sized construction enterprises. At present, he says, Argentina has around 400,000 construction workers and more than 20,000 active construction companies. Explaining the government’s programme to diversify suppliers in order to employ more workers and companies, José Lopez says, “For example, if we launch a project to develop housing, instead of calling for a bid to complete 1,500 homes over a period of 30 months, we will ask for bids for completing 30 rows of homes, in which each row of 50 homes must be completed within 10 months, and no single company can be allowed to build more than two rows, or 50 to 100 houses.”

Energy & Infrastructure

Price cap system to keep costs under control Concerning awarding projects, the secretary says that the government will use a “price cap” system in which it sets the maximum price the state will pay for each project, and the company with the lowest bid which does not exceed this maximum price will be awarded the contract. He adds, “Adopting this system of price caps and setting the deadline for construction within the year will help us to ensure that projects are completed on time and that prices are kept under control. It is important to note that we have the necessary liquidity to achieve the plan’s goals within the set time limits.” Of the 57 billion pesos to be invested in 2009, the secretary says, around 33 billion pesos (5.8 billion) will come from the state’s 2009 budget, while 2.5 billion pesos (445.4 million) will involve new loans to multilateral agencies; 12 billion pesos (2.1 billion) will come from the Brazilian Development Bank (BNDES), the National Bank of Argentina, and the Administración Nacional de la Seguridad Social (ANSES, Argentina’s social security agency); 6 million pesos (1.06 million) will be from private financings; and 3.5 billion pesos (623.6 million) will come from savings achieved in the

state budget through the cancellation of some planned grant funding.

5,000 projects launched in 2009 “We will begin more than 5,000 projects in 2009 to add to the 4,000 projects already underway now,” said the secretary in his speech delivered in December 2008. He added, “The state has an obligation to look at the whole territory, seeking to include all Argentines and to balance our efforts so that all regions, provinces and municipalities participate. This plan, designed for all Argentines, is the result of close collaboration between the federal government and provincial and municipal authorities.” José Lopez concludes that “the role of our office is to transform political decisions into administrative decisions. To make this plan a success, we need the co-operation, commitment and efforts of the entire nation, of all our provinces, municipalities, construction workers and suppliers. This plan is for all Argentines and we need the support of all Argentines to make it a success.”

ARGENTINA

Construction Chamber Helping Industry Meet International Standards The Argentine Chamber of Construction (ACC) works to promote Argentina’s construction sector and has become the leading construction sector organisation in the country. Carlos Enrique Wagner, who is President of the ACC as well as head of construction enterprise Esuco, explains that the ACC has more than 1,000 member companies out of the 20,000 or so construction companies operating in Argentina today. He says, “The ACC represents the construction industry in meetings with the government, and works to improve working conditions for unions in the construction sector. We are in constant communication with government ministries and work closely with other state institutions involved in road projects.”

New public works plan means opportunities Argentina’s construction sector is experiencing a downturn related to the global financial crisis, but still offers significant opportunities for foreign companies over the next few years. “The government has just announced a major plan for major public works, including many road building projects, power plants, gas plants, and other projects for private companies to bid for. A lot of infrastructure projects are planned for the near future. For such projects, the big tenders typically go to multinationals, while national companies generally win the smaller tenders,” Carlos Enrique Wagner explains.

Types of construction projects with particularly strong potential for private companies, according to Carlos Enrique Wagner, include tourism, real estate, and energy projects, especially renewable energy. He says, “Of these, tourism still has the most potential for foreign private companies, especially concerning hotel construction.” When compared to its European and other international counterparts, Argentina’s construction sector scores well, Carlos Enrique Wagner points out. He says, “We are developing a benchmarking system to analyse the competitiveness of our companies within Argentina to compare our companies with European companies. We have found that we are quite competitive.” The ACC is doing its part to ensure that the sector meets international standards.

Focus on training Providing training for construction personnel is an important activity for ACC. “We offer training to members of the chamber, such as training in using new technologies, to make sure that construction workers in Argentina can perform at international standards,” Carlos Enrique Wagner says.

Although it is not set up to serve as a gateway to Argentina for foreign investors, the ACC welcomes contracts with foreign firms looking into opportunities in Argentina, and hopes that foreign construction firms operating in Argentina will join the chamber.

Energy & Infrastructure

Isolux-Corsán group

Energy Leader Demonstrating Potential of Public and Private Partnerships The Isolux-Corsán group, ranked Spain’s largest unlisted company in its sector, provides its clients with integrated solutions in its core areas of expertise: construction, engineering and industrial services, concessions, real estate development, manufacturing and renewable energies. IsoluxCorsán has activities in more than 30 countries, employs over 7,800 people, and achieved US$3.6 billion (2.4 billion) in revenues last year. The dynamic group was formed by the 2004 merger of Isolux Wat (founded in 1933) and CorsánCorvian (founded in 1928), a merger which brought together decades of expertise in related ﬁelds. Isolux has been present in Argentina since 2001 when it built a hospital there. Dr. Juan Carlos De Goycoechea, Chairman and CEO of Isolux-Corsán Argentina, says that Isolux has made a long-term commitment to the country. “In spite of the 2001 crisis and problems doing business in Argentina, which caused many companies to leave, Isolux stayed,” he says.

Potential of public private partnerships Today, Isolux has a 40% share of Argentina’s energy market. Isolux partners with the government, including public sector company Energia Argentina (ENARSA), demonstrating the potential of public private partnerships in the Argentinean market. Isolux has also worked with local leader INVAP – a technology based company – concerning nuclear energy initiatives. Isolux has also completed a wide range of major initiatives in Argentina, which embrace from a project to provide clean drinking water, to the US$1 billion (686.2 million) Rio Tubio power plant, throughout other projects regarding the installation of more than 660 km of power transmission lines. In 2002, Isolux acquired a 50% share of local oil and gas company Tecna Engineering and Studies S.A., which is an active and worldwide leader in energy programs.

Competitive edge Defining Isolux’s competitive edge, Dr. Juan Carlos De Goycoechea says, “Since we are based in Spain, we understand both the European and Argentinean markets. In addition, we have positive cash ﬂow and liquidity, as well as expertise and experience.”

Dr. Juan Carlos De Goycoechea, Chairman and CEO

Explaining what Isolux brings to the table in partnerships with the Argentine public and private sectors, Juan Carlos De Goycoechea says, “We interact a lot with local companies — which provide local resources — while Isolux provides know-how and technologies. This is how we contribute to the local economy.” Isolux believes that Argentina offers exceptional development potential, particularly in the energy sector. “Argentina needs to produce around 3 million MW more energy than its actual capacity. Isolux is contributing to this through our company, which produces — among other energy sources — solar panels and wind energy,” Juan Carlos De Goycoechea explains. He also adds, “Investors should target Argentina: Government assumed, finally, an open policy to work with the private sector.”

Florida 868 Piso 2 Buenos Aires Argentina Tel: +5411 4324-3051 Fax: +5411 4324-3000 info@isoluxcorsan.com www.isoluxcorsan.com

ARGENTINA

Odebrecht Construction

Dynamic Construction Firm Helping to Build Tomorrow’s Argentina Construtora Norberto Odebrecht (Odebrecht Construction), headquartered in Brazil, has a presence in 22 countries and has been operating in Argentina since 1987. Odebrecht is known for its decentralised structure which gives each company in the group autonomy, as well as for its support of community service projects. Odebrecht has made a long-term commitment to Argentina where it has been steadily expanding its range of activities. Odebrecht is a well-established leader in Argentina’s construction sector. As Flavio Faria, Managing Director, explains, “We have completed many types of projects, from a hydroelectric plant in Patagonia to major roads (including the western access road to Buenos Aires), gas pipelines, a water treatment plant north of Buenos Aires, and others.”

Long-term commitment to Argentina

Flavio Faria, Managing Director

Odebrecht completes projects for both the public and private sectors and has earned a strong reputation for quality and reliability. One recent project is the Southern and Northern Gas Pipelines, part of the Firm Gas Transportation Capacity Expansion Programme which involves installing a new network of gas pipelines running from north to south in Argentine territory by 2010. Odebrecht is responsible for installing a total of 1,665 km of pipelines and 15 Compression Plants, which will increase Argentina’s fuel transportation capacity by roughly 13 million cubic m per day. Another of Odebrecht’s recent projects in Argentina (as a joint venture with Iecsa, from Argentina; Ghella, from Italy; and Comsa, from Spain) is the retrofitting of an 11-km section of the Sarmiento railway – a US$1.2-billion (€861.3-million) contract. One of the most important in Buenos Aires, this surface railway will be moved underground to become a world-class mass transit link.

Odebrecht has proven its commitment to Argentina. Flavio Faria says, “We have had some very down periods here since 1987 but we have never left. In addition, in line with the policy of the Odebrecht group worldwide, we have launched many corporate social responsibility programmes in Argentina, including an information technology project for a local community. We touch a lot of communities through a lot of small projects, and we are also an active member of the Argentine Council for Sustainable Development.” The company also helps boost the Argentine economy through partnering with the government to generate jobs, solve energy problems, find solutions to water supply problems, and meet other challenges. “Our focus is to do business here in Argentina through working productively with the public and private sectors and with local communities,” Flavio Faria concludes.

Construtora Norberto Odebrecht S.A. Reconquista 1166, Piso 10 Capital Federal C1003ABX – Buenos Aires Argentina Phone: (+54 11) 4319 5300 Fax: (+54 11) 4319 5306 www.odebrecht.com

• One of World’s Top Food Producing Nations • Corn Industry Offers Significant Development Potential • Promoting Sustainable Development for Argentina’s Soybean Sector

Agriculture

One of World’s Top Food Producing Nations Argentina is one of the greatest food-producing and foodexporting countries of the world. Agriculture has long been a mainstay of the economy, accounting for 75% to 95% of total exports and 41% of exports by value. Argentina has an estimated 27 million hectares of arable and permanently cultivated farmland, primarily in its humid pampas region, although such crops as citrus fruits, tobacco, cotton and sugarcane are cultivated outside the pampas. The country has developed one of the most mechanised agricultural sectors in the world in order to ensure high productivity. Argentina’s agriculture and agro-industry activities focus on the production of cereals, oil grains and seeds, sugar, fruit, wine, tea, tobacco, and cotton. A devaluation of the peso in 2002 and a sustained rise in commodity prices has further encouraged the sector, leading to record production and exports.

Vineyard

Soybean production has been expanding rapidly, and wheat remains a leading crop. Argentina is also the fourth-largest corn-growing country in the world, and it has extensive crops of barley, rice and flaxseed. Sugarcane is grown in the province of Tucumán, cotton is grown mainly in Chaco province, tobacco is raised in several northern provinces, and sunflowers are extensively grown for oil. Fruit growing has developed rapidly since the 1940s. Grapes (mostly for the wine harvest), lemons, apples and pears are the most important fruit harvests, produced mainly in the Río Negro valleys of Río Negro Province and Neuquén Province, as well as Mendoza Province. Other important crops include peaches and other citrus fruits. Argentina produces around 8 million tonnes of fruit per year.

Unprocessed agricultural goods made up one-fifth of exports in 2007

The province of Mendoza is the center for the nation’s vineyards. Argentina is one of the world’s leading producers of wine, and is particularly known for its fine wines made from the Malbec grape. Argentina is also well known worldwide for its fine beef, and it also produces milk, eggs, cheese, vegetables, and fish.

In 2007, more than one fifth of Argentine exports of about e38.1 billion were composed of unprocessed agricultural primary goods, mainly soybeans, wheat and maize. A further one-third was composed of processed agricultural products, such as animal feed, ﬂour and vegetable oils.

The national governmental organisation in charge of overseeing agriculture is the Secretariat of Agriculture, Cattle Farming, Fishing and Food (Secretaría de Agricultura, Ganadería, Pesca y Alimentos, SAGPyA). Argentina welcomes foreign investment in its high potential agriculture sector.

Corn Industry Offers Signiﬁcant Development Potential Maizar promotes Argentina’s corn industry by bringing together everyone involved in the sector, from farmers to exporters. As Pablo Ogallar, President, explains, “Maizar is a chamber that includes all the actors in the value chain of corn. It includes farmers, scientists, industrial producers, exporters, producers of biofuels like ethanol from corn, and companies like Monsanto that supply seeds. In other words, Maizar involves the whole chain.”

Promoting crop rotation The organisation has a long-term vision of Argentina’s corn industry, which is one of the key industries in the country’s agricultural sector. One goal for Maizar is to promote crop rotation involving corn and soybean crops in order to ensure agricultural sustainability. Pablo Ogallar says, “The country’s farmers are planting a lot of soybeans, but we know that to ensure sustainable agriculture, it is necessary to rotate crops, and in this case to rotate soybeans and corn. Argentina currently grows a lot more soybeans than corn, and we created Maizar to explain to the government that producing more corn is necessary for agricultural sustainability.” In fact, lobbying concerning the corn sector is a key activity for Maizar, but the organisation also serves as

a source of information for the government as well as a representative for corn farmers. Pablo Ogallar explains, “We advise the government concerning all aspects of the value chain of the corn sector, and we also represent the farmers’ union. Our mission is to ensure a strong agricultural sector for Argentina.” Maizar hopes to improve conditions for Argentina’s farmers and for everyone involved in the corn sector. As Pablo Ogallar points out, “Argentina could have an incredible competitive advantage in agriculture, since we have the best land as well as well-developed technology and know how. The problems are with internal policies, particularly the lack of incentives and subsidies. Farmers do not have a voice.”

Value-added products Corn has particularly strong development potential for Argentina, Pablo Ogallar believes, because of the many value-added products that can be made from corn. He says, “We can produce medicine, fructose for coca, ethanol as fuel, feed stocks for the production of beef cattle and more. Argentina has a tremendous opportunity in its corn sector. We need our farmers to be more efficient and we need better policies to support the sector’s development. Our job is to make the government and farmers aware of opportunities on international markets.”

A combine collects soybeans during harvest

Promoting Sustainable Development for Argentina’s Soybean Sector The Asociación de la Cadena de la Soja Argentina (Argentine Soybean Association, ACSOJA) is an association of people and organisations involved in Argentina’s high potential soybean sector. As Rudolfo Rossi, President of ACSOJA, points out, the soybean industry accounts for 27% of Argentina’s export totals, and Argentina provides 60% of the soybeans consumed throughout the world in the form of soy protein and soy oil. “We formed ACSOJA to help ensure sustainable growth for the soybean sector, which is a crucial sector for Argentina,” he explains. ACSOJA represents Argentina’s soybean industry in Argentina and abroad, attending key events which have relevance for Argentina’s soy industry. This year an ACSOJA delegation attended the eighth World Soybean Research Conference held in Beijing in August. ACSOJA also represented the industry at a conference focused on minimising the environmental impact of agricultural production, among many other professional events in which ACSOJA participated this year.

A value chain Soybean farmers have been protesting the government’s 2008 decision to raise export taxes to include higher levies on soybeans (up from 27% to 40%) as well as on grains, oilseeds and vegetable oils. The government’s position is that the taxes were designed to curb domestic price rises, offset the effects of the devaluation of the Argentine peso, and protect food supplies at a time when it was more profitable for farmers to sell their crops abroad, but farmers say the taxes discourage the sale of crops on futures markets, and could lead to a decline in farm output. ACSOJA’s mission is to improve the competitiveness of all aspects of Argentina’s soy industry; to encourage the involvement of everyone in the industry to make the best use of human resources; to encourage research in scientific and technological advances concerning soybean cultivation, production and added value in order to help Argentina’s soybean industry enter new markets; to promote research in new uses of soy products; to work with the private and public sectors to improve the social impact of the industry; and to promote the further integration of Argentina’s soy industry into the Mercosur market.

Agriculture

Syngenta

Helping to Make Argentina a Powerhouse in Agriculture Syngenta is spearheading the growth of Argentina’s agriculture sector. Syngenta was launched in Argentina in 2001, and had already achieved turnover of US$70 million (48 million) by 2002. Today, it is ranked number one in Argentina’s agrochemicals sector, with over US$300 million (205.8 million) in turnover for its chemicals activities alone. “We are growing fast, and Argentina is the right country for us since it is devoted to agriculture. We hope to help generate a second green revolution in Argentina,” explains Horacio Busanello, President of Syngenta and CASAFE, the agrochemicals and fertilisers association Horacio Busanello, President of Argentina. Innovation is a guiding principle for Syngenta, which was the first company in Argentina to provide fungicides. Syngenta serves around 1,000 farmers directly in Argentina and also works with distributors. “We have one of the most sophisticated customer relationship management systems in the industry. More than 70% of our farmers receive their orders within 24 hours,” Horacio Busanello says proudly. Over the next five years, Syngenta expects to significantly increase its production of agrochemicals in Argentina and to expand the capacity of its warehouse facility through a US$8 million (5.4 million) upgrade. In addition to serving the agriculture sector, Syngenta actively supports a number of corporate social responsibility projects in Argentina, particularly involving health, the environment and education.

Public Private Partnerships in Agriculture Argentina’s agricultural sector is focusing on public private partnerships as a means to spur on research, enhance competitiveness on a global scale, and encourage the development of domestic agricultural enterprises. Over the past decade, many public institutions in the agricultural sector in Argentina and elsewhere have been cutting down on their research efforts as a cost cutting measure, leaving research and development largely to private enterprises. Yet the private sector, with its commercial focus, does not always concentrate on meeting the needs of a country’s population. Now Argentina aims to achieve a balance between public and private research efforts in agriculture. The Instituto Nacional de Tecnología Agropecuaria (the National Institute of Agricultural Technology) has forged new links with other public as well as with private players in research and seed production and will continue to focus on public private collaboration. In addition, the country’s Second Provincial Agricultural Development Project (PROSAP II), which is funded by the World Bank, includes what the World Bank describes as “pilot public private innovation networks to develop innovation transfer initiatives (ITI) to exchange knowledge regarding agricultural practices for purposes of improving the competitiveness and market access of small and medium size farmers, as well as for facilitating the link between knowledge institutions and said farmers.” Sheep in Chubut

Avenida del Libertador 1855 (B1638BGE) Vicente López, Buenos Aires, Argentina Tel: +54 11 4837 6500 - Fax: +54 11 4837 6501 agro.soluciones@syngenta.com www.syngenta.com.ar

â&#x20AC;˘ Unparalleled Natural and Cultural Attractions

Tourism

Feir’s Park Hotel

Exceptional Services at Family Run Five-Star Hotel The five-star Feir’s Park Hotel, which enjoys an ideal location in the heart of one of Buenos Aires’s most exclusive districts, reflects its owners’ talent for hospitality. Fernando Sfeir, President, explains that his late father built the hotel as an apartment property first. Later on, as they couldn’t sell even one apartment, they decided to convert it into a hotel, thanks to its ideal location. Although Feir’s Park was the family’s first hotel venture, it has proved to be an outstanding success. “Although I did not expect that our family would be operating a hotel, when we opened Feir’s Park I discovered I had found a vocation,” he says.

Range of luxurious amenities and special activities The hotel has 115 luxurious, very spacious rooms and suites and offers its guests a range of amenities, including a fully equipped business centre, meeting rooms, an outdoor pool and sun room, a cutting-edge fitness centre, a sauna, 24-hour room service, and much more. Guests can enjoy a sumptuous breakfast buffet, dine at the gourmet Cuisine du Park restaurant, or have a drink in the convivial St. Andrew’s Pub. The hotel’s staff organises special activities for guests every day, including tastings of Argentine wines and local cheeses, yoga classes, sessions with a personal trainer in

the fitness centre, tours of nearby art galleries, excursions to shop for antiques, and city tours. All these activities are free for hotel guests. High-speed Internet connections in all rooms along with valet parking and a range of other services make Feir’s Park a top choice among both Argentine and international travellers.

Ideal location near top landmarks The hotel is within walking distance of 22 art galleries, Plaza San Martín, Galerias Pacífico and Patio Bullrich shopping malls, the Teatro Colón, the Plaza de Mayo, the financial district, and many other of the city’s top sites. Feir’s Park Hotel serves both corporate and leisure travellers. “We have been low profile because of the clientele we have, but we are beginning to promote ourselves more,” Fernando Sfeir explains. He owns the hotel along with his sister, and one of his best friends, Thomas Williams, is the hotel’s manager. He says, “This is a true family-run company, and the service our staff provides is truly exceptional. Our staff exceeds our guests’ expectations with special wine tastings, tours and classes and much more. We make all our guests feel welcome.”

Cuisine du Park Excellent food and professional service – lunching or dining at Cuisine du Park restaurant is always a delicious experience, which includes the best Argentine meat.

Fernando Sfeir, President

Head Chef Ramiro Rodriguez Pardo, a celebrity in Argentina, has worked locally and internationally and owned “Catalinas”, one of the best restaurants in South America. Ramiro joined Feir’s Park Hotel from the start in 1995, as Chef Director. We pride ourselves on fresh, imaginative food prepared with quality, locally sourced ingredients. Ramiro has formed an ambitious and talented team who are producing some of the best food yet to herald from the kitchens of the Cuisine du Park.

Esmeralda 1366 BUENOS AIRES ARGENTINA Te: +54 11 4131-1900 Fax: +54 11 4131-1950 reservations@feirspark.com.ar feirspark@feirspark.com.ar Chat on-line and instant on-line reservations: www.feirspark.com.ar

ARGENTINA

Unparalleled Natural and Cultural Attractions Argentina enjoys unparalleled natural and cultural wonders and is becoming one of the world’s top tourism destinations. From Jujuy to Tierra del Fuego, Argentina offers stunning contrasts: the northwest plateaus, forests in Chaco, the fertile Pampas with its large plains, the lake region in the south, glaciers in Patagonia and forests in the northeast, and the highest peak in the Americas, Mont Aconcagua, reaching 6,959 metres in the Andes. The country’s rich cultural heritage matches its natural wonders. A land popular among Europeans for generations, Argentina today is a multicultural, multilingual society which also has its own special character.

Buenos Aires: the Paris of the southern hemisphere The country’s capital city, Buenos Aires, considered the ‘Paris of the Southern Hemisphere’, offers a broad range of cultural activities, from tango shows to turn-ofthe-century cafés, theatres, fine museums, all kinds of shopping,

Faro Ushuaïa

Beyond the capital: from estancias to ski resorts

Teatro Colón

music and art events, and opera -- the fabulous Teatro Colón is regarded as one of the greatest opera houses. The city is filled with monuments, and its San Telmo district has a particularly long history, with houses from colonial times and cobblestoned streets. Palermo, Recoleta and Puerto Madero are three upscale neighborhoods often in tourists’ itinerary for their architecture and variety of social, cultural and nightlife events as well as their fabulous shopping. Buenos Aires is also filled with restaurants, from traditional parillas (featuring fine grilled meats) to places featuring cuisines from all over the world. The city’s centre is the Plaza de Mayo, a large public square containing gardens, fountains and statues. On one side of the square is the only surviving government building from colonial times: the Cabildo, built in 1748; also overlooking the square is the presidential palace, the Casa Rosada. One famous neighbourhood is La Boca, best known for its football team, Boca Juniors, for whom the legendary Diego Maradona played, but also for its multi-coloured wooden and corrugated-iron houses.

Beyond Buenos Aires, one popular option for visitors is to stay at Estancias (traditional cattle ranches). Another “must” is a visit to stunning Iguazu Falls and the surrounding national park, which preserves a subtropical rainforest system. Sports loving visitors can travel to Las Leñas or Cerro Catedral ski resorts, or enjoy an array of other sports throughout the country. San Carlos de Bariloche, for example, is a city in Río Negro Province in the foothills of the Andes, famous for skiing but also for sight-seeing, water sports, trekking and climbing.

Paradise for eco-tourism Southern Argentina features Los Glaciares National Park, where glaciers that drain the Southern © Stockxpert

La Boca

Glacier P. Moreno

Patagonian Ice Field end in the Lago Argentino, blocking one of its bays until the pressure of the water blows the ice dam. Ushuaia, the southernmost city in the world, located in Tierra del Fuego, is a typical destination in southern Patagonia, known as a paradise for eco tourism. Peninsula Valdés is widely considered to be one of the best places in the world for the observation of wildlife, mainly sea mammals, and Santa Cruz Province is known for its remoteness and for landmarks like the Perito Moreno Glacier.

Quebrada Humahuaca

Beach lovers congregate in Mar del Plata, the main sea resort of Argentina, and in many other maritime resorts. Wine lovers will want to visit San Rafael and Mendoza, where the best wines of Argentina are made. Argentina also has seven UNESCO World Heritage Sites, ranging from Rio Pinturas with its prehistoric cave paintings to Quebrada de Humahuaca, ranked a World Cultural Landscape for its scenic natural beauty and historical sights.

Exciting investment potential With all these attractions, along with its multilingual population, Argentina is a natural for tourism development. The World Economic Forum estimated that, in 2006, Argentina’s tourism industry generated around e13.6 billion in turnover, while in 2007, according to the World Travel and Tourism Council (WTTC), Argentina’s tourism sector grew by 7.6%. The WTTC estimates that Argentina’s

tourism industry should average 4.4% annual growth over the coming decade, and that Latin American travel and tourism will be worth some e207.2 billion in revenues by 2017. WTTC also notes that Argentina has already positioned itself as the third most popular tourism destination in Latin America, after Mexico and Brazil Argentina is quickly positioning itself as a luxury destination for leisure and business travellers. International hotel chains such as Starwood Hotels & Resorts Worldwide Inc, Accor Group and Hilton Hotels are making large investments in the country, and in South America in general, as a way to diversify from the US, especially in a time of crisis. One of the most important focuses is on business travel. Most of these projects in Argentina are located in Buenos Aires, Patagonia and Mendoza, according to information from the Secretaria de Turismo de la Nacion (National Tourism Office).

With special thanks to:

SwissInvest

Dollar Rent a car

was founded in 1966 in the United States, more accurately in Los Angeles, California. Nowadays it operates in more than 26 countries, throughout the world: Australia, Canada, the European Union, the Caribbean and Latin America. Dollar has arrived in Argentina in the year 1989; creating a trajectory in the country of more than 15 years, oﬀering the best option to vehicle renting in the Argentinean territory.

Our Vision The corporative vision of Dollar expresses the collective aspirations of all the people working in our company, gathering this way to offer the best customer service, making a difference with other enterprises. Our main goal is to concentrate our efforts and energies to give the best service, assuring the full satisfaction of the customer.

Our Mission To lead the car renting market, offering a “differenced valued” service. To create a differenced value means to establish solid relationships with our costumers and to show an attitude aimed to offer solutions.

Our Values • To make good use of the diversity of our knowledge and experiences. • Compromise towards our costumers. • To maximize the value of our service to our costumers.

Our Logo The vision of Dollar as much as its goal of leadership are symbolized by a corporative logo. The logo establishes the name of Dollar as a “reliable brand” to all of our businesses. It transports our long heritage of integrity and reliability, and at the same time it conveys greater accessibility, dynamism and energy, that distinguishes the enterprise we are turning into.

HEAD OFFICE San Martín 945 3° of. 24 • Capital Federal - Argentina Tel.: +54 11 4315 8800 • ventas@dollar.com.ar • www.dollar.com.ar