Paraguay Land of opportunities Novem ber Novem ber - 2 0 1 3 2 0 - PowerPoint PPT Presentation

Paraguay Land of opportunities Novem ber Novem ber - 2 0 1 3 2 0 1 3

General Information General Information

Paraguay, in the center of South America Cancer Tropic Equator line Capricorn Tropic Greenwich Meridian +4 +3 +2 +1 0

Facts and figures Area (Km.2): 406,752 Official lenguages: Spanish & Guaraní Currency: Guaraní (Since 1943) Exchange rate (US Dollar – Guarani) 1 USD = 4,070 Gs. (2012): Population (2012*): 6,672,631 Nominal Gross Domestic Product GDP** 18.2 (Bill. USD) –Yr. 2012: Nominal Gross Domestic Product 3,770 GDP Per Capita** (USD) –Yr. 2012: Country`s Capital: Asunción Other cities and major economic areas Ciudad del Este, Central Metropolitan Area Encarnación, Salto del Asunción ASU-CDE-ENC-ASU conexion Guairá, Coronel Central Chaco / NE Zona Oviedo, Concepción, Santa Rita Working Age Population –WAP (2012): 3,215,510 60.7% of Pop. Rate of unemployment (2012): 5.7% of the WAP Sources: Central Bank of Paraguay – BCP (www.bcp.gov.py) *STP/DGEEC. Paraguay: Forecasts 2012 **Yr. Base 1.994

Regions of Paraguay Western Region or Chaco 60% Of the total area 40% 40% 2,7% Of total Of total area area Of total population 97,3% 97,3% Of total Of total Total Area (km2) Population population population 406,752 6,672,631 Eastern Region Source: Dirección Nacional de Estadísticas, Encuestas y Censos (www.dgeec.gov.py) *STP/DGEEC. Paraguay: Forecasts 2012

Access to attractive markets Guyana Guyana Venezuela Venezuela Suriname Suriname  Paraguay is located in the center French Guyana French Guyana Colombia Colombia of the region with the highest income of South America. Ecuador Ecuador Brazil Brazil Peru Peru South South South South Paraguay + Paraguay + Paraguay + Paraguay + MERCOSUR MERCOSUR MERCOSUR MERCOSUR America America America America (70%) (70%) (70%) (70%) 1.300 km 1.300 km 1.300 km 1.300 km Bolivia Bolivia Bolivia Bolivia (100%) (100%) (100%) (100%) Population 360 250 120 (Mill. people) Paraguay Paraguay 2.875 1.948 927 GDP Billion US$ Chile Chile GDP per capita 7.986 7.792 7.725 Uruguay Uruguay (US$) Argentina Argentina 33% of South America ´ s GDP  33% of South America`s Pop.  96% of South America's average per  capita Income Source: 2009 Latin American Statistic Yearbook - ECLAC www.eclac.org

Lower Risk of Natural Disasters Tectonic plaques Earthquake risk Volcano eruption risk Severe weather conditions risk Tsunami risk Source: US Geological Survey (www.usgs.org)

Structural Resources Structural Resources

Ideal natural conditions – A big water reserve Average yearly temperature: 28 Cº Paraguay River Average yearly rainfall: 1.200 mm. Pilcomayo Pilcomayo River River Parana River Paraguay is located in the center of the GuaraniAquifer. Source: Instituto Geográfico Militar – IGM & DGEEC

Comparative low cost Electric Service RESIDENTIAL: INDUSTRIALIST: 200 KWh/mes 50 MWh/mes 82 57 PARAGUAY PARAGUAY 111 72 COSTA RICA PERU 112 105 MÉXICO CHILE 129 129 135 135 PERU PERU MÉXICO 147 139 CHILE URUGUAY 163 156 BRASIL COLOMBIA 186 183 COLOMBIA BRASIL 187 192 EL SALVADOR EL SALVADOR 205 204 GUATEMALA COSTA RICA 213 213 URUGUAY GUATEMALA 0 50 100 150 200 250 0 50 100 150 200 250 $/MWh $/MWh Fuente: CIER Report about Electric Tariff in Distribution January / 2012

Young and trainable laborforce Population younger than 34 years old (%) 73,7 73,4 80 67,4 65,7 70 60,1 59,9 54,8 60 50 40 30 20 20 10 0  Paraguay has the youngest population in America. Sources: Dirección Nacional de Estadísticas, Encuestas y Censos (www.dgeec.gov.py) Worldmapper (www.worldmapper.net)

Regional Logistics Regional Logistics

An important waterway in the Region. Paraguay – Parana. Santacruz Santacruz Corumbá Corumbá Rio Paraguay Rio Paraguay Rio Paraguay Rio Paraguay Conchas Conchas Conchas Conchas Mejillones Mejillones Sao Paulo Sao Paulo Santos Santos Lenght CDE CDE Waterways Conexions (miles) Antofagasta Antofagasta ASU ASU Paranagua Paranagua Paraguay- Paraná - Bolivia-Paraguay- 1,721 Uruguay Argentina-Uruguay- Tietê – Paraná 1.491 Brazil-Paraguay Rosario Rosario Nueva Palmira Nueva Palmira Main Commercial Centers Montevideo Montevideo Santiago Santiago Paraguayan free ports Buenos Aires Buenos Aires Important regional ports Barges Transatlantic Ships Source: Rediex

Energy for the future Energy for the future

Hidroelectrical Energy I TAI PU BI NACI ONAL POW ER: 7 .0 0 0 MW ENERGY: 3 7 .5 0 0 GW h/ YEAR PARTI CI PATI ON: 8 5 % PARTI CI PATI ON: 8 5 % ENTI DAD BI NACI ONAL YACYRETA FI NAL POW ER: 1 .5 5 0 MW FI NAL ENERGY: 1 0 .5 0 0 GW h/ AÑO PARTI CI PATI ON: 1 0 % CENTRAL ACARAY FI NAL POW ER: 2 5 2 MW ENERGY: 9 5 0 GW h/ YEAR PARTI CI PATI ON: 5 % Source: Administración Nacional de Electricidad (www.ande.gov.py)

Low Costs of Electric Service  Electro Intensive Industrial.  No Electro Intensive Industrial ( Reglamentado por el Decreto 7.406/11) Fajas de Consumo Precio 1 – 50 MWh 225,18 G/MW/h Zonas Franja de Precio 51 – 500 MWh 252,87 G/MW/h Modulación Más de 500 MWh 296,56 G/MW/h Este y Sur Este y Sur 0 a 25 % 0 a 25 % 33,01 33,01 US$/MWh US$/MWh Este y Sur 26 a 50 % 37,70 US$/MWh  Residential Central 0 a 25 % 35,50 US$/MWh Fajas de Consumo Precio Central 26 a 50 % 40,78 US$/MWh 1 – 50 MWh 311,55 G/KWh Metropolitana 0 a 25 % 37,00 US$/MWh 51- 150 MWh 349,89 G/KWh Metropolitana 26 a 50 % 42,85 Mas de 150 MWh 365,45 G/KWh US$/MWh Fuente: Elaboración propia con datos proveídos por técnicos de la ANDE

Business Climate Business Climate

Corporate Income Tax Rate 40% 35% 34% 34% 35% 30% 30% 25% 25% 25% 20% 20% 15% 10% 10% 5% 0% Argentina Colombia Brasil Perú Uruguay Ecuador Chile Paraguay  This tax has been lowered 66% from 30% to 10% in 2004 Source: Ministry of Finance – www.hacienda.gov.py

Personal Income Tax 40% 40% Averiguar Uruguay 35% 35% 35% 30% 30% 27,50% 25% 25% 25% 20% 15% 10% 10% 5% 0% Chile Argentina Colombia Perú Brasil Ecuador Uruguay Paraguay Source: Ministry of Finance – www.hacienda.gov.py

Value Added Tax (VAT) 25% 25% 23% 21% 19% 19% 20% 16% 15% 12% 10% 10% 5% 0% Brasil Uruguay Argentina Chile Perú Colombia Ecuador Paraguay Source: Ministry of Finance – www.hacienda.gov.py

Business Climate According to “World According to “World Energy Energy Council”, Paraguay Paraguay is the country’s number Council”, is the country’s number one environmental mitigation of global one environmental mitigation of global energy production. energy production. Source: Energy Sustainability Index 2012 Asunción , is the 3th. Capital with lower cost of life in South America. Source: Mercer Consulting Group 2012 Source: Riskmap Report 2013, Mercer Consulting Group 2012 & Energy Sustainability Index 2013

Business Climate BEI – October/2013  Favorable Business Environment Favorable Business Environment for Investments for Investments 4,5 Mexico 5,7 Colombia 1,0 Venezuela 5,0 Ecuador Ecuador 4,8 6,0 Brazil Peru 5,4 Paraguay ranks First in the economic climate 6,4 Bolivia Paraguay evaluation, the Business Environment Index (BEI) 5,2 4,8 Chile Uruguay ranks 6,4 points , over the Latin American average: 4,4 points, according to the report from the Getulio 3,9 Argentina Vargas Foundation (GVF). *Source: Getulio Vargas Foundation of Brazil (FGV) & University of Munich, Germany

Macroeconomic Stability Macroeconomic Stability

Economic Activity 14,0 13,1 13,0 12,0 Forecasts from the Central Growth by decades Bank of Paraguay 10,0 8,3 8,0 Growth in the Growth in the IMF Forecasts IMF Forecasts last years 6,0 5,1 4,7 4,7 4,7 4,6 4,3 3,9 4,0 3,0 2,4 2,0 0,0 1960 1970 1980 1990 2000 2010 2011 2012 2013 2014 2015 2016 2017 -1,2 (2,0) Source: Banco Central del Paraguay - www.bcp.gov.py & IMF

GDP Share by sectors – Yr. 2012 Primary Sector 20,1% Secondary Sector 14,3% Tertiary Sector 46,8% Others 18,8% Source: Banco Central del Paraguay - www.bcp.gov.py

Inflation Rate Paraguay Inflation Rate 16,0 14,6 14,0 12,5 12,0 9,9 10,0 9,3 7,5 8,0 7,2 Inflation % 6,0 6,0 5,0 4,9 4,0 2,8 4,0 1,9 2,0 0,0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* Source: Banco Central del Paraguay - www.bcp.gov.py *Projection for 2013 according BCP Preliminary Balance