See this report at COLOMBIA worldfolio.co.uk Interview with Local companies Sustainable Tourism and President Santos go international development investment See page 2 See page 4 See page 8 See page 14

AN INDEPENDENT SUPPLEMENT TO THE MIAMI HERALD BY PANORAMA REPORTS Friday, April 27, 2012

The FTA era has arrived Colombia-U.S. Free Trade Agreement will boost business and strengthen relations

fter decades of internal conflict, polit- According to The Economist, real GDP is ical wrangling and security issues, expected to grow by 4.9% throughout 2012, AColombia is now regarded as one of supported by growing domestic demand, and Latin America’s most politically and econom- this expansion is forecast to continue at an av- ically stable countries. Overseen by President erage rate of 4.8% for the period 2013 to 2016, Juan Manuel Santos, the country is still en- following the ratification of the FTA. The gaged in an ongoing battle against drug lords good news continues with inflation figures, and the FARC, but in the areas of business and which currently stand at little over 2%. productivity the transformation has been lit- Following the investment grade ratings tle short of miraculous: Colombia is now one approved last year by the top three global rat- of Latin America’s top five economies. ing agencies – Standard & Poor’s, Moody’s, Since coming into power, one of the San- and Fitch – Colombia’s investment climate tos administration’s main goals was to diver- is thriving. Colombian government officials sify foreign relations – and the strengthening confidently expect a record-breaking $16 of economic links with its neighbors was vi- billion in FDI this year, while the World tal to achieving this objective. In April 2011, Bank’s Doing Business 2011 report classified Colombia, Peru, Chile and Mexico joined Colombia as the best country in Latin Amer- forces to form the Pacific Alliance, and a ica, and fifth-best in the world, for foreign month later an integrated stock market in- investor protection. volving Colombia, Peru and Chile was cre- In his State of the Union address earlier ated, resulting in increased cross-border this year, President Obama referred to investments. Colombia as an important export market Strengthening Colombia’s already robust bi- for the United States, which will contribute lateral relations with the United States was Signing the FTA will help us work tirelessly on the to America’s economic recovery, saying: another top priority for President Santos. “With the bipartisan trade agreements we U.S. policy toward Colombia has always areas of common interest such as the environment, signed into law, we are on track to meet that backed its battle against illegal rebel organi- technology transfer and education. goal ahead of schedule.” He also described zations such as the FARC, and its war against the agreement as “a major win for Ameri- drug proliferation. “We have been strategic can workers and businesses.” partners to the U.S. for many years in the JUAN MANUEL SANTOS, In turn, when signing the treaty President struggle against drug trafficking… And we Santos announced: “Today is a historic day still are,” says President Santos. President of Colombia for relations between Colombia and the Unit- The creation of a free trade agreement (FTA) ed States. The free trade agreement ends the that would encourage economic diversification Although‘ the U.S. economy is still recov- omy in Latin America; it was the fifth four uncertainty that has been discouraging long- and stimulate further growth was a goal that ering from the crunch that hit American and years ago. We are in the process of trans- term investment and it now guarantees to all Colombia had pursued for years. Initially sub- European markets in 2008, the FTA will cer- forming the country so that we can say we investors stability in the rules of the game.” mitted during the Bush era, Colombia’s FTA tainly bring positive impetus to both markets. are the largest economy in Latin America Where previously many Colombians had proposal was left to gather dust amidst con- The United States is Colombia’s largest trad- after Brazil and Mexico,” says Colombia’s felt emigration or even crime were their on- cerns over tariffs, overseas labor practices, and ing partner, accounting for over two fifths of Minister of Commerce, Industry and ly routes to a better future, the present situ- the effect increased competition might have on its exports and 29% of its imports, and it is Tourism, Sergio Díaz Granados. While ation is vastly different, and the FTA U.S. jobs. But the proposal was eventually picked the largest source of new foreign direct in- Venezuela and Argentina might argue with ratification – along with other positive indi- up by President Obama, who brought it before vestment (FDI), particularly in the areas of the above statement, Colombia certainly has cators – has presented the country’s citizens Congress for approval in October 2011, and the coal and petroleum. the potential to boost its position within the with genuine prospects for long-term growth FTA is on track to come into effect on May 15. “Today Colombia is the fourth largest econ- continent’s top five economies. and prosperity. Why Colombia?

Given the nod of approval from the world’s 2010 and 2011, FDI increased 113%, from ket experts have welcomed Colombia’s pro- STRATEGIC LOCATION most important credit rating agencies, Colom- $6.8 billion to $14.4 billion, according to the business government, which has been rein- Just over three hours away by plane from Mi- bia’s successful economic climate has made United Nations Conference on Trade and vesting oil revenues in infrastructure and other ami, Colombia is at an ideal point for access one particular institution a prime target for Development (UNCTAD). business areas to guarantee a wider and more to other markets on the continent, located foreign investors: Proexport Colombia . As the competitive economy. in the same time zone as global business official body responsible for promoting inter- THE C IN CIVETS hubs such as New York, Toronto and Mia- national tourism, foreign direct investment The CIVETS (Colombia, Indonesia, Vietnam, YOUNG WORKFORCE mi. Further afield, permanent contact is (FDI) and exports, Proexport is best positioned Egypt, Turkey, South Africa) have shown greater 67% of the nation’s population of 45 million is maintained with Europe, particularly Spain, to answer the question: Why Colombia? stock performances since 2009 and have re- in the 15 to 64 year old age range, constituting due to the workable six-hour time differ- placed the BRICs (Brazil, Russia, India and a young workforce within a thriving entrepre- ence and language affinity. A SAFE INVESTMENT China) as the next generation of rising neurial culture. It is also the world’s second most The World Bank rated Colombia as the most economies to track over the next decade. Mar- numerous Spanish-speaking population. PREMIER TOURIST DESTINATION business-friendly country in Latin America International visitors to Colombia in- (2010) and first on the continent for investor creased from 668,000 to 1.7 million dur- protection. Moreover, the country adheres to ing the 2003-2009 period. While tourism the Organization of Economic Cooperation in the world fell 4%, in Colombia it rose and Development’s (OECD) Declaration on 10.2% in 2009. Tour operators in the International Investment, guaranteeing for- country almost doubled in 2011 to cater eign investors the same treatment and priv- to demand. ileges as domestic businesses. FDI increased fourfold in the 2003-2009 period, growing For more information, visit from $1.7 billion to $7.2 billion. Between www.proexport.com.co 2 AN INDEPENDENT SUPPLEMENT TO THE MIAMI HERALD BY PANORAMA REPORTS

Photo courtesy of the Office of the President of Colombia

Interview with President Santos “Prosperity for all”

Colombian President Juan Manuel Santos discusses the country’s booming economy, and his government’s plans for diversification and wealth distribution

Colombia is currently enjoying one of the best nances guarantees the reliability of our policies. with the U.S. – which has already been approved economic periods in its history. What are your It is important to recall the recent announce- by the American Congress – and Venezuela. thoughts on this? ment of the Colombian Ministry of Finance, Our FTAs with Canada, Switzerland and Licht- Today, our economic indicators are positive and which revealed that, according to preliminary enstein were formalized last year. An agreement show that in 2011 the country’s economic growth calculations, last year the fiscal deficit of the is in progress with the EU and I trust that the was close to 6%, sustained by internal demand, public sector reached 2.2% of the GDP, lower European Parliament will approve it this year. and against a backdrop of global deceleration. than what had been predicted for 2011 (3.4%) We are advancing in our discussions with Turkey At the same time, investment in Colombia and registered in 2010 (3.2%). and South Korea, and we are initiating negoti- has been very dynamic. The investment rate Lowering ations with Japan and Israel. is at 28% of GDP, its highest level in history. How important is financial management? unemployment This has positive implications on the expan- Coherence in our macroeconomic manage- Which programs are you focusing on? sion of the country’s production capacity in ment has made it possible for Colombia to face rates, generating We have the satisfaction of having achieved or the medium term. the shocks of the international economy and started to achieve many of our objectives. All As a reference, I can tell you that Colombia’s quickly get back on track. quality employment are directed toward three fundamental goals: to rate of investment is the highest of the region A fiscal law was approved last year to have a ‘ maintain and improve the country’s security, and reducing after Argentina, and it increased almost 15 per- certain discipline in the government’s fiscal ac- create more and better jobs, and reduce pover- centage points of the GDP in less than 10 years. counts to avoid an excessive increase in our debt, poverty are still our ty. All within a concept we have named ‘Pros- This, together with the government’s strategy as is happening in many countries in Europe. perity for All’. to implement reforms that will stimulate the main challenges for In this sense, the main challenge of our gov- generation of formal employment, has been re- You have said it is important to work in every ernment is to reduce the enormous social gaps flected in the creation of 1.9 million jobs since sector to avoid catching the famous ‘Dutch Dis- the future. that exist in our country, which make Colom- August 2010. By December 2011, the unem- ease.’ [An increase in exploitation of natural re- bia one of the countries with higher levels of in- ployment rate had maintained a single-digit fig- sources leading to a decline in manufacturing PRESIDENT equality in the world. Our objective is to pull ure for four months. Formal employment and other sectors.] 350,000 families out of extreme poverty, which registered an increase of 6% in 2011. We have identified five key sectors of the econ- JUAN means 1.5 million Colombians who barely sur- This dynamism in the economy has been ac- omy that could help the country’s growth, which MANUEL vive with the minimum. companied by a strategy led by the government we call ‘locomotives’. They are: infrastructure, SANTOS Another objective that also translates into and businessmen to diversify exports, along housing, agriculture, mining and innovation. Our prosperity is the construction of at least 1 mil- with the signing of commercial agreements with new institutional fiscal frame is made to support lion homes, mainly social housing for those the United States, Canada, Mexico and the EU, precisely those sectors and promote the coun- Colombians who need it the most. among others. It is no coincidence that in 2011 try’s economic development. external sales of goods and services reached a This new institutional framework gives the What is being done in Colombia to continue record $60 billion. country a comparative advantage because it with high levels of growth while respecting the The best evidence of the confidence that for- lets us generate adequate economic invest- environment? eign investors have in us is the amount of for- ment in the regions associated with the ex- The creation of the Environment and Sustain- eign investment that is arriving into the country, ploitation of natural resources without able Development Ministry, our application to which in 2011 made Colombia second in the re- generating the Dutch Disease. become part of the Investment Committee of gion in terms of receipts of foreign resources for the OECD, and the FTA with the U.S. – in which long-term investments, and we had the fifth What is being done to expand Colombia’s environmental issues are crucial – show just greatest growth rate in the world last year. commercial operations? how committed the government is to achiev- Having a solid financial system, low inflation With our traditional partners we are consolidat- ing green growth, based on the preservation of rate and responsible management of public fi- ing free trade agreements (FTAs), as is the case the environment. Rise of a new Colombia

Prosperous future pass before Mr. Santos offers the rebels a ahead as nation chance to sit down at the peace table. says no to violence VICTIMS’ LAW Colombia’s Victims’ Law, officially referred to President Juan Manuel Santos, who was Min- as Law 1448 of 2011, was created to compen- ister of Defense under the Uribe administra- sate the millions of victims of violence com- tion, has made it one of his priorities to bring mitted by left-wing guerrillas and right-wing stability and peace to Colombia, and create a paramilitaries since 1985, as part of Colom- safe environment in which to live and invest, bia’s long-running armed conflict. by tackling the issue of guerrilla warfare and This law, signed by President Santos in drug-related violence which has blighted the June 2011, complies with the United Na- country for almost 50 years. tions’ guidelines on the Right to a Reme- As a response to nationwide protests earli- dy and Reparation for Victims of Gross er this year and increased government pres- Violations, and contemplates financial sure, the country’s largest left-wing rebel group, compensation for the victims. Former Min- the Revolutionary Armed Forces of Colom- ister of Interior Germán Vargas Lleras says: bia (FARC), which has been active since 1964, “The law is ambitious in the number of announced its intention to finish its practice Colombians to cover – about 4 million of kidnapping for ransom – which for decades people – as well as in the approach of the had brought cash into the group – claiming it land-restitution program and the provi- was no longer compatible with the organiza- sion of an integral service to victims of vi- tion’s activities. olence... To provide security to people This measure comes after President Santos going back to conflict areas as a result of made the release of all kidnapped victims, land restitution is a key concern.” some of which have been held captive for over In January 2012, the start of serious efforts a decade, a pre-condition to the possibility of at land reform was marked with the distrib- peace talks. ution among 304 families of the 4,255 hectare With the group’s leadership in disarray fol- country estate of Las Catas in northern lowing the deaths last year of FARC leader Al- Colombia. Each family received up to four fonso Cano in November and his head of Mass demonstrations reflect the people’s desire for peace and progress hectares of arable land accompanied by the security Alirio ‘The Grandfather’ Rojas Bo- government’s commitment to help increase canegra five months earlier, as well as contin- widely interpreted as a prelude toward formal extradited to the U.S. to face drug trafficking agricultural output. uous air strikes by the U.S.-backed Colombian talks, the Santos administration knows that the charges. Sorting out the rightful ownership of 10 mil- military impeding the group’s 8,000 fighters FARC will be extremely wary when negotiat- Former President Ernesto Samper, who held lion acres of land will be a monumental task from concentrating their forces, the ball cur- ing a settlement, given what happened be- office from 1994 to 1998, backs Santos’ deci- that will certainly take years, but strong ad- rently seems to be in the government’s court, tween 2003 and 2006, when right-wing sion, claiming that all of the FARC’s hostages vocates such as Mr. Vargas Lleras are confi- however the administration remains cautious paramilitaries of the United Self Defense Forces must be released before a political solution dent this process will go down in history as about proceeding with such talks. of Colombia (AUC) surrendered to the gov- can even be explored. an event as important to the country as the Although the FARC’s announcement was ernment: many members were subsequently Colombian analysts expect some time will end of apartheid was to South Africans. AN INDEPENDENT SUPPLEMENT TO THE MIAMI HERALD BY PANORAMA REPORTS 3 Forging new diplomatic Quoted “We have a great and trading links opportunity Colombia is proving to be dedicated to enriching global relations to promote the Pacific President Juan Manuel Santos is proving to be a breath of fresh Basin Alliance, which air for Colombian politics. It is is an agreement widely believed that the shifts in foreign relation policies im- between Colombia, plemented by the country’s leader will have positive im- Mexico, Chile and pacts on regional security and Peru, to strengthen strengthen cooperation across the South and North Ameri- their economies. The can continents. Neighboring countries are combined GDP of welcoming the President’s ini- tiative to broaden Colombian these four nations friendships. Proof of this was surpasses Brazil’s.” reflected shortly after he took office in 2010, with Ecuador resuming full diplomatic ties Sergio Díaz Granados, and a declared truce with Minister of Commerce, Venezuela, after the latter had Industry and Tourism been accused of collaborating with the Revolutionary Armed Forces of Colombia, or FARC. Regional powerhouse, “The Brazil, has particularly em- braced the President’s resolu- President Santos stands alongside Presidents Chinchilla (Costa Rica), Piñera (Chile) and ratification tion to counter narcotics. Obama (U.S.) at the Sixth Summit of the Americas, held in Cartagena, Colombia, earlier this of the FTA Brazilian assistance on this month. 33 heads of state and government heard President Obama highlight the progress front is a move that would un- Colombia has made and the importance of the country for the region with the U.S. doubtedly be well received in Washington, and one that could further strength- nearly 40% of Colombia’s exports and a quarter and submitted to Congress by former President will bring en ties between the two nations. of its imports. Oil constitutes two-thirds of these Bush in 2006. confidence to both exports, followed by coffee and other food pro- Now, finally ratified, experts believe that the FTA COLOMBIA-U.S. RELATIONS duce. will further unite the two countries and enhance American and Colombia and the United States have main- Close cooperation continues under the San- transparency in businesses. Colombia also enjoys tained excellent bilateral relations for many tos administration with U.S. policy supporting FTAs with Canada and Mexico, among others. Colombian investors years, with strong cooperation and high trade the government’s initiatives to promote securi- Colombia and the U.S. have also joined forces levels. The recently signed free trade agreement ty, strengthen respect for human rights, foster in agreements on asset sharing, chemical con- as the rules of the (FTA) is expected to further strengthen the re- socioeconomic development, and deal with trol, and environmental protection, including an game are clear and lationship. threats to democracy. understanding on clean energy signed in 2008 Since 2000, Colombia has received American The relationship between the two countries and a Science and Technology Agreement en- well defined.” aid to combat guerilla and drug-related issues. is comparable to other strategic American al- dorsed in 2010. While other countries in the region have shown liances, such as with the United Kingdom. U.S. assistance is also felt in Colombia’s alter- Ricardo Triana Soto, the cold shoulder to U.S. drug interdiction ef- native agricultural actions. Over the past decade, Executive Director of CEA forts, Colombia has embraced them. FTA AND OTHER PACTS more than 400,000 families in 18 Colombian During the previous Uribe administration, The strong relationship established between departments have benefited from the imple- more than 900 criminals were extradited to the Colombia’s former President Uribe and the Bush mentation of such programs that promote a U.S., including Cali cartel leader Gilberto Ro- administration was reinforced by numerous of- shift from the cultivation of illegal crops to le- driguez Orejuela and the FARC’s Juvenal Ovidio ficial visits between both countries. Mr. Uribe gal alternatives. “We Palmera Pineda and Omaira Rojas Cabrera. In travelled to the U.S. on numerous occasions, Other humanitarian collaboration includes 2008 alone, 208 people were surrendered to and Mr. Bush visited Colombia in 2007. a multi-year country assistance agreement, welcome the the U.S. In 2008, former U.S. Secretary of State Con- signed in 2009, which combines American ef- ratification Moreover, the U.S. is Colombia’s largest trad- doleezza Rice was in Colombia to support lob- forts in this area with those of Colombia’s pub- ing partner, with exports in 2011 representing bying efforts of the FTA, which had been signed lic and private sectors. of the FTA, it is vital in order to compete with neighboring countries Boosts for infrastructure that already had this Huge investments are being made in Colombia’s housing and kind of agreement infrastructure – two sectors identified by the President as key with the U.S.” to the country’s development Javier Díaz Molina, President of Analdex HOUSING ly ratified royalties ly country in South America that has ports on The administration’s ob- law are considered both the Pacific Ocean and the Caribbean Sea. jective is to build 1 mil- catalysts that will A plan is currently under investigation to lion homes for Colombia’s boost the much quintuple the shipping capacity of the Mag- poorer citizens. The needed infrastruc- dalena River – once Colombia’s main eco- “The FTA not Macro Projects Law of So- ture development of nomic artery, being easily accessible from only makes cial Housing, created for the country. both Bogota and Medellin. One large barge this purpose, considers as- could move the same amount of cargo as 75 all the sense sisting Colombia’s esti- ROADS articulated lorries, although 560 miles will mated 1.5 million Improving the road have to be dredged. in the world homeless people as a mat- network is another ter of national interest. project on the gov- RAIL with regard “This law simply stream- ernment’s infrastruc- Projects reviving the railways include China’s to exports, trade and lines procedures of rezon- ture agenda. Projects plans to finance and build a “dry canal” to link ing land and lifting building include connecting the Caribbean and Pacific coasts. Another investment, it also restrictions so that it can be Medellín to the Pa- project will link the Carare rail network with designated as building cific and Caribbean the Ferrocarril Central railway to increase makes sense from a land,” explains Beatriz ports and the ambi- coal transfer to an estimated 30 million tons political point of view.” Uribe Botero, Colombia’s tious Montaña high- per year. Colombia’s mining industry is not on- former Minister of Hous- way development. ly relevant financially, but it is also crucial in Camilo Reyes Rodríguez, The housing sector grew 8.8% ing, City and Territory. The developing infrastructure in remote areas to President of Amcham law will allow the country during the second quarter of 2011 AIRPORTS bring greater prosperity. to accelerate the current Colombia’s airports average of 150,000 homes built per year. play an active role not only in the transporta- Social housing projects are planned through- tion of people and goods, but also in the eco- out the country. “We have, for example, a pro- nomic development of the country. ject for 25,000 homes in Cartagena, one in In 2009, 15.6 million passengers travelled Barranquilla for 25,000, another in Soacha for through Colombia’s airports, nearly double 40,000, and one in Pereira for 10,000 homes,” the 8 million in 1991. By 2010 passenger traf- adds Ms. Uribe Botero. fic had exceeded the demand forecast for The housing sector grew 8.8% during the sec- 2014 and it is expected to continue rising, ond quarter of 2011, compared with the same according to Colombia’s Civil Aviation Agency period of 2010. The sector generated 54,000 (Aerocivil). direct jobs between last July and September, To meet the country’s needs, projects un- 8% of the 683,000 jobs created in Colombia dur- der way include the construction of two new ing that period. passenger terminals at Bogota’s El Dorado Air- Two of the largest construction companies port, a new concession for Barranquilla’s air- helping drive this forward are Amarilo and Pe- port and a new airport in Ipiales. dro Gómez, with projects such as La Felicidad and Ciudad Verde respectively, offering qual- WATERWAYS ity housing solutions to the lower classes. In collaboration with the Ministry of Trans- portation, Colombia’s Maritime Authority (Di- INFRASTRUCTURE mar) is currently working on improving the President Santos has allocated a sizeable 10- country’s ports in order to maximize the ben- year $55 billion transport and infrastructure efits of the free trade agreement (FTA). investment plan, of which $25 billion will be Colombia is strategically located at the heart spent during the next five years. of the Caribbean – one of the world’s busiest The decentralization process and the recent- spots for international trade. And it is the on-

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COLOMBIA TEAM: Gemma Gutierrez, Leandro Cabanillas, Iris Oliveros, Laia Marsal, Felipe Mattosian, and Rocio De Mingo, with special thanks to Henry Espino 4 AN INDEPENDENT SUPPLEMENT TO THE MIAMI HERALD BY PANORAMA REPORTS Colombian companies go international

Colombia has become one of the most to 11.9% in February, down from 20% and confidence to expand into over- promising emerging markets in the in 2000, and foreign direct invest- seas markets. Indeed, some feel an ur- world. The country’s decade-long ment (FDI) is expected to reach a gent need to do so, believing their transformation has produced favor- record-breaking $16 billion this year, survival and success cannot be guar- able growth across the board. Its GDP as major multinationals look to get a anteed by the domestic market alone. expanded from $100 billion in 2000 foothold in the country to access lo- Plus the raft of ratified free trade to $288 billion in 2010, and its econ- cal and Latin American and Caribbean agreements with Canada, Mexico, omy registered 5.9% growth for 2011. markets. Chile, Peru ,Costa Rica - and of course According to the government statis- In turn, many Colombian companies the U.S. – have set the scene for win- tics agency DANE, unemployment fell now have the experience, resources win partnerships. Familia territory Grupo Familia is ready to take on the American market

The figure of Paisa businessman John Gómez Today, Mr. Gomez’s five children head Grupo Restrepo – who established Grupo Familia – Familia, now international and present in over is well known and respected throughout Colom- 20 countries. “PQP has factories in Ecuador bia, so much so that in 2009 he received Ernst and the Dominican Republic. Brinsa also has a & Young’s Lifetime Entrepreneurship Achieve- factory there, and Familia does business through- ment Award. out Latin America, except Brazil,” explains Ál- The only son of five children, John Gómez varo Gómez, son of John Gómez and President Restrepo began working at the age of 14 and of PQP. founded his first company, Productos Familia, convinced that many products imported to PQP AND THE SECRET OF INNOVATION Colombia could be produced locally. PQP was founded in 1974 and today is a leader Mr. Gómez set up over 30 successful com- in the water treatment industry, producing and panies throughout his career before finally con- commercializing over 45 chemical products centrating his efforts on his group’s four major for industrial purposes. It is the largest alu- activities: Productos Familia (Familia), a con- minum sulfate producer in the Andean region, sumer goods and personal care manufacturer; and the company recently became a strong Brinsa S.A., a salt and bleach producer; Produc- competitor in the detergents market. tos Quimicos Panamericanos S.A. (PQP), a “We are seeing how in six years a Colombian manufacturer and marketer of chemical prod- company has acquired 20% of the domestic de- ucts; and a reforestation company. tergent market. Today we are the second man- ufacturing company and the only one that has two detergent towers, which is a guaranteed sup- ply, and two manufacturing plants in different parts of the country, which assures our clients that if anything happens in one place, it is un- likely to happen in the other,” says the compa- Colombia isn’t only ny’s president. going to be an He takes the disciplines of innovation, satis- faction and proximity to the client very serious- industrial and tourist ly. Passed on by his father, they are pillars that have been key to the company’s success. destination; we will be “Innovation is a corporate culture and it must the food suppliers for a radiate from within the presidency of the com- pany,” says Mr. Gómez. hungry world. He adds that distinguishing between “know how” and “know why” forms part of that cul- ture and is key to understanding the needs of ‘Álvaro Gómez, each client: “That is what we do here. Our chem- President of PQP ical products are made in reactors, cooked, cooled, crystallized and filtered. These are processes and we are masters in the process, and as such, we know how we can innovate.”

FTA AND THE AMERICAN MARKET “The Colombia-U.S. free trade agreement (FTA) is going to create a ‘be- fore and after’ in the eco- nomic history of Álvaro Gómez (left) with his father John Gómez, who received an Colombia,” as- Entrepreneurial Lifetime award in 2009 sures Mr. Gómez. It is The changes, as he envisions them, will be grad- FUTURE PLANS not so much ual with an initial influx of American products PQP is preparing to enter the stock market the FTA itself, sought after by the Colombian population, af- this year, with the group’s Brinsa and Famil- but more the ter which the inverse situation will materialize ia subsidiaries following suit later. fact that it has as Colombian enterprises penetrate the Amer- According to PQP’s president, this move been signed with ican market. For this reason, PQP is targeting will “ensure the growth and international- “a country like the Colombian and other Latin American com- ization of PQP, which is seeking to be a multi- United States, munities in Florida and Texas. “We will try to national company in this corner of the world, which represents bring products they have used in their child- one that has nothing to envy of Procter & 30% of the world’s hood or youth, products they want,” explains Gamble or Colgate. We will be seen as economy,” he adds. Mr. Gómez. equals.” A careful balance of risk and safety

A lively stock Banco de Crédito de Peru’s (BCP) acquisition, DIVERSIFYING PATHS exchange, and announced late last year, of 51% of shares of Colombia’s oil sector continues to attract Colombian stockbrokers Correval. exploration and mining to the country. Mr. private pension The presence of leading Colombian and Bojanini says: “We are aware that this can- funds based on the international companies listed in the BVC – not be our only attraction. It is very impor- such as Ecopetrol, Avianca, Davivienda, Pa- tant that the wealth generated from the Chilean model, cific Rubiales, and Sura – are indicators of the exploitation of natural resources be chan- showcase both the current strength of Colombia’s stock exchange. neled toward other products with higher Its President, Juan Pablo Cordoba, notes a added value, so that the day these mostly ambition and solidity positive change in attitude among local busi- non-renewable natural resources are gone, of Colombia’s ness leaders: “Businessmen have opened up our growth rate is maintained.” a lot more to the world, that is, companies have President Juan Manuel Santos has insti- economy become ambitious and talk about doubling gated a series of fiscal reforms regarding the or tripling within three to seven years.” redistribution of oil royalties. “You can see As of February this year, the Colombia Stock One such company, Grupo de Inversiones how the effect of economic growth is not Exchange (BVC) operates the same opening Suramericana (Sura) is listed on the BVC and running only in the areas of primary goods hours as the New York Stock Exchange registered with the American ADR-Level I or raw materials, but it is also going to oth- (NYSE). The change, announced in January, program, with strategic investments in the fi- er sectors of production,” says Mr. Bojanini. aims to internationalize the BVC and pro- nancial, insurance and social security sectors. Sura recently positioned itself as one of the vide foreign investors better access to the David Bojanini, President of Sura, is cer- leading providers of financial services in the Latin American markets. tain that Colombia’s future is safeguarded, region following the acquisition of Dutch The move also aids synchronization with unlike Europe’s, due in part to the pension group ING’s Latin American insurance and the Peruvian and Chilean markets, with fund systems. pension portfolio, a strategic business move which the BVC has an integrated platform “I have no doubt that much of the crisis which became the largest acquisition of a for- which started trading in May 2011. The plat- “It is very important that the in countries like Greece, Italy and Spain can eign company ever carried out by a Colom- form is referred to as the Integrated Latin be explained by the high cost of the pension bian business. The group’s increased market American Market (MILA). wealth generated from the system,” he says. “Pension systems based on presence within Latin America is expected MILA was created with the intention of exploitation of natural indefinite benefits or allowances are not easy to stiffen competition, more so with the rat- integrating the region’s capital markets and to finance. The system created in Chile in ification of the FTA. “We entrepreneurs need investment banking operations, to subse- resources be channeled.” the 80s – and which has been installed across to transform our businesses to become more quently enlarge businesses with an impor- Latin America – is based on pension funds competitive and efficient in the scenario of tant presence in any of the MILA markets. and defined contribution systems and actu- free trade agreements with the U.S., Cana- One such strategic move carried out to David Bojanini, ally appears to be a solution to this pension da, Europe and South Korea, among oth- further strengthen the regional market is President of Sura problem.” ers,” explains Mr. Bojanini.

6 AN INDEPENDENT SUPPLEMENT TO THE MIAMI HERALD BY PANORAMA REPORTS Serving Colombia, and beyond...

One of the country’s top banks moves into Panama and U.S.

Banco Davivienda – Colombia’s third-largest founded in 1972, when other banks had al- bank – works with both personal and business ready been incorporated, and our diversifica- clients, and is currently carrying out its plan tion process actually started in the year 2000. of expansion into the American market fol- Ever since then, we have managed to raise par- lowing an initial public offering (IPO) last year. ticipation from 4% to 12%,” says Mr. Forero. With a local long-term Fitch credit rating of Earlier this year, Banco Davivienda an- AAA, Banco Davivienda is also focused on nounced the purchase of banking giant HSBC’s bringing access to banking to a wider spec- operations in Costa Rica, El Salvador and Hon- trum of Colombians. duras for an estimated $801 million. The next Amidst a booming economy, Efraín Forero, step in the company’s expansion strategy is a President of Banco Davivienda, comments on seven-year term issuance of external subordi- the country’s improved investment grade and nated bonds amounting to $500 million dur- shares his views on what is making Colombia ing the first semester of 2012. such an enticing destination option for foreign This move is aimed at increasing capital while investors: “There are two factors that have at- simultaneously issuing local shares. “These sub- tracted investment. On the one hand, we have ordinate bonds will be placed on the interna- improved, surmounted, and consolidated our tional market with collaboration by JP Morgan security issue. On the other hand, we have ad- Bank and Credit Suisse in order to perform this equately managed our macro economy and taxes. Therefore, many investors who could not invest in the past are now able to join those who are already investing in the country.” Although he is certain that the difficulties which the American and European economies are experiencing will affect the country’s trade and growth capacity, he is also sure opportu- The human factor is nities are on the horizon for local businesses. essential at the bank. The country’s development has taken it from being catalogued as nonviable by the Organi- Our organization zation of the United States (OEA) and the Unit- ed Nations (UN) to becoming one of the top centers on people. 10 investment destinations favored by Fred Hochberg, President of the Export-Import Bank of the U.S. (Ex-Im Bank). Efraín Forero, Mr. Forero acknowledges the importance of President of ‘Banco Davivienda maintaining strong ties with developed economies, however he also recognizes the potential and significance of other emerging economies. “We must work a lot and more consistently in the long term to strengthen our relationships with Asia Pacific,” he says.

SUCCESSFULLY GROWING Banco Davivienda is growing alongside the coun- try’s prosperity. As part of Sociedades Bolívar, the bank successfully entered the capital market in 2010. “We became the principal issuer with most investors at that time; we had about 82,000 in- vestors, so we had to distribute shares in smaller amounts than expected in order to give each in- issue for about $350 million, which might of- Panama and Miami. “Our goal in the Miami vestor a small part of our early offer,” says Mr. fer that instrument, our country and Davivien- operation will be to empower and boost our Forero. da a great opportunity,” says Mr. Forero. entire commercial activity, namely, funding The bank is experiencing an extraordinary Colombian companies, but we also expect to process of growth and strengthening. It closed CONTINUED GROWTH create a branch to serve Colombians living in 2011 with assets of $4.8 billion and it is cur- Currently positioned as the third bank in Miami,” says Mr. Forero. rently preparing to list on Wall Street. Colombia, Banco Davivienda has crossed in- Last year, the Securities Exchange Commis- “We are quite a new institution, recently ternational borders and established itself in sion authorized Banco Davivienda to convert Feeding sustainability Leader in Colombian foods industry is ready to expand

Grupo Nutresa (Nutresa) is Colombia’s leading international competition), our companies processed foods conglomerate with a solid domes- were very proactive and seized the opportu- tic market share of 61.1% and a strong interna- nity to go global. We started building interna- tional presence in over 74 export destinations. tional teams, which are ideal for entering other The group comprises 44 different companies spe- markets and understanding the foreign con- cialized in meats, biscuits, chocolates, coffee, ice sumer,” says Mr. Piedrahita. cream and pastas. The company’s contribution to local agricul- The company has plants in eight countries, and tural farmers’ skills and productivity entrepre- distributes in 12. It is globally renowned for its dri- neurship, particularly in the cocoa and coffee ving principle of corporate sustainability, which sectors, is strongly felt within the local commu- it infuses throughout the group’s strategic objec- nities. Since the establishment of Nutresa’s pro- tives and processes. “We understand sustainabil- motion department in the 60s, its agronomists ity as something that is equally important have worked hand in hand with local farmers in economically, socially and environmentally,” says cocoa cultivation, sharing training and cultiva- Nutresa’s President Carlos Enrique Piedrahita. tion techniques so that they can become suppli- “We have been convinced for many years now that ers for the company. Similar programs also exist we have to be responsible in our actions, not on- for coffee, nuts and other produce. ly economically with our stockholders but also with The workforce now totals 30,000 people, all the other interested parties.” some 7,000 of which are outside Colombia. The Nutresa’s high achievements in corporate sus- group’s international branch directors rose tainability were globally recognized when it was through the ranks within the company, grow- listed as one of the eight companies in the 2011 ing with it and then making international ca- Dow Jones Sustainability World Index, alongside reers for themselves. American and European giants Kraft, Nestle, The new Colombian generation represents Danone, Campbell and Heinz. In this annual re- the future of the country and the changes it has vision of over 2,500 international companies in 57 gone through in the two decades since opening sectors, Nutresa figured in the listing as the only up its economy to the world. food sector company from an emerging country. “When we see young Colombian businessmen Moreover, the company is a member of the today, we can see they have a very global vision World Economic Forum (WEF) and for three from the beginning, and they think of their busi- years running has been invited to participate in nesses as connected to the rest of the world in the the annual Sustainable Asset Management (SAM) most natural way,” says Mr. Piedrahita. assessment, one of the world’s largest independent sustainable asset management companies spe- FTA RATIFICATION cialized in the development of sustainable finan- Nutresa’s presence in the American market con- cial indices. tinues to expand with business moves such as Nutresa was included in SAM’s 2011 Sustain- the 2010 acquisition of 100% of the stock of Fehr ability Yearbook and honored as the “Sector Holdings LLC, an American cookie producer and Mover” of the food industry, granted to a com- merchandiser, helping solidify its presence in pany for its achievements of sustainability. When we see young Colombian businessmen the country and contributing to increasing com- today, we can see they have a very global petitiveness in the market. INNOVATION Regarding the recently ratified free trade agree- One of Nutresa’s pillars pulling the company for- vision from the beginning, and they think of ment (FTA) between Colombia and the United ward through the times is based on a model Mr. States, a hot topic in all business sectors of the Piedrahita labels “Magic,” which is a method of their businesses as connected to the rest of country, Mr. Piedrahita is confident it will bring operation geared toward innovation in products, the world in the most natural way. positive competitive benefits to the market that processes and business programs, and awards the will boost the standard of services provided. successful implementation of initiatives through “A good part of the products that Colombia its Innovative Success program. “Last year, there Carlos Enrique Piedrahita, sells to the United States are already duty free, were almost 2,000 innovative successes in the 12 President of Nutresa for example, coffee, cookies and some chocolates. countries where we work,” says Mr. Piedrahita. ‘ On the other hand, the FTA will give us a clear- This culture of innovation is present in all of er access and equal conditions with the rest of Grupo Nutresa’s companies, and is promoted the competitors that supply the U.S., which has through its Vidarium Center of Research into Nu- traditional marketing techniques to identify its con- THE NUTRESA WORKFORCE a stable market, the biggest one in the world,” he trition, Health and Wellness. “Vidarium coordi- sumers’ needs. “What we really have to do is to Stimulating its workforce and preparing its says. “But the effect that will benefit us the most nates our research with that of other research understand the dreams of our consumers so that teams for international expansion is an ele- is that we will be able to buy raw material from centers and universities in Colombia and abroad,” we can offer them things that will surprise them, ment the company has nurtured for almost the U.S. – the most efficient raw material pro- explains Mr. Piedrahita. things that they hadn’t even imagined or ever two decades. “Since the 90s, at the beginning ducers in the world – under the same interna- In its tendency toward expansion and inter- wanted. That is where real innovation comes of what in Colombia was called the econom- tional price conditions as our competitors: before nationalization, Grupo Nutresa works beyond from,” explains Mr. Piedrahita. ic aperture (the opening up of the economy to the FTA we paid a surcharge.” AN INDEPENDENT SUPPLEMENT TO THE MIAMI HERALD BY PANORAMA REPORTS 7 In brief

tribute to these communities. “As the middle Booming hydrocarbons class rises, the banking industry will need to step up its game and offer innovative products Colombia’s hydrocarbons sector is one to cater their needs,” says Maria Mercedes Cuel- of the most successful in the world, lar, President of the Colombian banking asso- with both output and exploration ac- ciation Asobancaria. tivity on an upward trajectory. In Jan- SOCIAL INCLUSION uary this year, production reached Among of the sectors that have greatly con- 941,000 barrels per day, a 12% in- tributed to Colombia’s boom are mining and crease over the same time period a energy. Regarding revenues generated by these year before. In February, the Nation- industries, which President Santos has already al Agency of Hydrocarbons (ANH) announced will be directed into other sectors, launched a new round of bidding for the role of banking entities will undoubtedly 109 blocks. take on a pivotal role. “The main role of bank- ing will be the ability to act as a funding, struc- turing and linking institution toward capital Demographics markets,” says Mr. Forero. Strengthening sectors will require in- creasing the access of the population to bank- The population exceeds 46 million peo- ing services. “In this respect, Banco ple, and the country covers just over Davivienda has started a really revolutionary 400,000 square miles – slightly less initiative with an electronic wallet we call than twice the size of Texas. Bogota is DaviPlata. We launched it in February last year the capital, and other major cities in- and it is available for absolutely every Colom- clude Medellin, Cali and Barranquilla. bian,” says Mr. Forero. Spanish is the main language, although Free of charge, DaviPlata is the first mobile many other indigenous languages are money service in Colombia. Today more than also widely used. 460,000 people have accessed it, 250,000 of whom had had no previous contact with the banking sector. This mechanism is expected to facilitate the distribution of state subsidies to 3.5 million families across the country and could save on distribution costs, estimated at Head of State around 20% of the total amount of subsidies. Moreover, tracking of funds will be possible President Juan Manuel Santos is ex- through electronic means. pected to continue enjoying a con- Mr. Forero says, “Such information is ex- gressional majority as the economy tremely valuable for the state because it for- is forecast to perform at a steady malizes the cash economy. It is equally rate. Fiscal reforms were approved important for bank institutions since it will in 2011 to help reduce budget strin- help them to get to know those people and gencies. With oil exports accounting subsequently use that knowledge to offer them for around 40% of the country’s earn- savings services, as well as micro-insurance ings, real GDP is expected to grow and micro-credits, in a structured manner and 4.9% in 2012. based on a person’s background.” The bank’s social inclusion aims are further reflected in its other projects, which include social housing schemes. “Banking will play an essential role in President Santos’ development Investment climate plan in the areas of energy, infrastructure and housing. We hope to build more than 1 mil- Following the investment grades giv- lion houses, quite an ambitious goal. Therefore, en to Colombia by the world’s three this year we are spending twice the amount as main rating agencies, it has become a its Miami operation into an international last year, and the construction process has been target for foreign direct investors. Gross branch, and the entity is now concentrated on simply outstanding; this also includes great ini- fixed investment is expected to grow providing an even wider range of services to tiatives to fund and execute housing macro-pro- on average by 10.7% in the next four its clients, both at home and abroad. jects,” says Mr. Forero. years. Over two-fifths of Colombia’s Regional development plans include inter- Banco Davivienda is playing a key role in both exports are destined for the U.S., a fig- ests in Peru, Chile and Panama, where sus- funding and structuring the entire infrastruc- ure that is expected to grow following tained economic expansion and growing middle ture needed to perform these macro-projects, the FTA ratification. classes will offer the bank a chance to con- funding social housing and real estate locally. 8 AN INDEPENDENT SUPPLEMENT TO THE MIAMI HERALD BY PANORAMA REPORTS Working toward a better society Colombia’s third-biggest business group delivers on its commitment to enrich people’s lives

Optimism reigns throughout Colombia today, despite the financial crisis affecting other parts of the world. Having experienced its own be- tween 1998 and 2001, Colombian businesses are now taking measures to safeguard the coun- try’s future and ensure it does not return to doom and gloom. With this goal in mind, so- cial responsibility is of utmost importance and one company in particular has made this ob- jective its main priority: Sociedades Bolívar.

LOOKING BACK The group began its operations in 1939 with the creation of the insurance company Com- pañía de Seguros Bolívar S.A., specializing in family and individual life insurance. Over the years, the group has expanded through the cre- ation of new companies and acquisitions to be- come the third largest group of companies in Colombia, after Bancolombia and Aval. The company’s solid ethical, commercial and social principles earned its confidence among clients and within the sector. Miguel Cortés Kotal, President of Sociedades Bolívar, under- scores these driving principles that continue today and are a reflection of his personal belief that a country must grow together. “Today, private companies, and by private I mean non-governmental, need to work close- able to people that do not have bank accounts. ly with the government to improve society. So- If residents can’t live with dignity, our subsidized housing If DaviPlata is used, the user can pay his insur- cial inclusion is complex, but we have to be communities may become slums. By creating communities, ance premium, water charges or electricity bill able to do it. We are responsible to society at via a cell phone. large and ultimately we need help in improv- we can make better neighborhoods and better towns. ing the standards of living, education, housing, BOLÍVAR-DAVIVIENDA FOUNDATION etc.,” says Mr. Cortés. Sociedades Bolívar set up the Bolívar-Da- Despite the group’s aggressive business lines, Miguel Cortés Kotal, vivienda Foundation to be committed to long- which over time have made it one of the coun- President of Sociedades Bolívar term social sustainability. “Rather than simply try’s largest and most successful financial groups giving donations to charitable organizations, we specializing in the insurance, banking and con- have many other valuable goals,” says Mr. Cortés. struction sectors, Sociedades Bolívar’s social how to live as a community, to take pride in com- the population is also reflected in the group’s Those goals include providing courses for the commitments to the country remain one of the munity‘ property, and how to care for it,” adds development of banking products and services, managers of the Foundation’s beneficiary or- greatest priorities in its business development. Mr. Cortés. “We have six-month courses for for example through its creation of a new con- ganizations to ensure their lasting and respon- Initiatives by private companies such as So- community managers so they can learn how to cept of micro-credits that will make the prod- sible management, as well as providing company ciedades Bolívar have contributed to the gov- manage community property and become com- uct more accessible to a larger part of the talent who work as volunteers on the boards of ernment’s efforts of social integration and quelling munity leaders. We have educational and sports population. directors of small and medium companies, and violence across the country. “Community life in facilities. If the residents can’t live with digni- Although in Colombia interest rates for mi- teaching communities new activities that will the lowest levels of Colombian society is com- ty, our subsidized housing communities may be- cro-credit lending, which average 28%, are con- contribute to their self-sustainability. plex and can be violent,” says Mr. Cortés. come slums. By creating communities, we can siderably lower than those in other parts of make better neighborhoods and better towns.” Latin America, where they can reach 75%, ac- DEFINING PRINCIPLES BUILDING COMMUNITIES Mr. Cortés has witnessed the positive results cording to Mr. Cortés, the cost remains beyond The group is proud of its victories in Colom- The company is focused on the development these developments produce. “The residents’ most people’s reach. “We are coming up with bia’s Great Place to Work Awards, in which it of low-income housing oriented at creating desire to educate their children is growing a lighter and easier way of lending and collect- has participated the past two years. For Mr. communities and providing a better standard stronger than the temptation to make them ing via the use of the cell phone, whereby we Cortés, this sort of merit is a recognition of of living for those within it. In 2011, Sociedades start working at a very young age,” he says. can lend and collect via an e-wallet. We call the values – respect, honesty, transparency, Bolívar, through its construction company Con- our product DaviPlata,” explains Mr. Cortés. teamwork and discipline – which have cre- structora Bolívar, built 6,740 houses. “We teach INNOVATING FOR THE PEOPLE Similarly, the group is looking into offering ated a solid workforce that keeps the compa- those who purchase our low-income homes Providing opportunities for broader sectors of micro-insurance, which would also be avail- ny moving forward. Changing oil industry’s bad-boy image Working with local communities, Pacific Rubiales takes its eco-responsibilities seriously

Colombia is now the third largest exporter of oil (National Hydrocarbon Agency), is confident RESPONSIBLE DEVELOPMENT to the U.S. As the largest independent oil and gas that immediate production targets will be met, In just five years Pacific Rubiales has become one producer and explorer in Latin America, Pacif- saying: “Evidently, there has been a substantial im- of Latin America’s largest independent oil pro- ic Rubiales Energy Corporation’s (Pacific Ru- provement in recent years in every security in- ducers while firmly upholding corporate social biales) spread covers an area of nearly 7 million dicator, thus a better environment is perceived responsibility programs and sustainability poli- hectares. Pacific Rubiales was the first interna- and investors can feel it. Having a very favorable cies to fulfill its goals of creating economic, so- tional company to be listed in the Colombian contractual regime from an economic perspec- cial and environmental value. Stock Exchange (BVC), and is also present in the tive, Colombia offers competitiveness levels that Aware that the global energy sector is under Toronto and Brazilian stock exchange markets. attract investment to our sector; therefore, we are constant scrutiny due to the social and envi- Prior to co-founding Pacific Rubiales in 2008 confident that we will be able to surpass the 1 mil- ronmental impacts caused by disasters such as and becoming its CEO, Ronald Pantin had lion bpd mark this year.” the 2010 oil spill in the Gulf of Mexico, Pacific worked in the Venezuelan oil industry for 24 Pacific Rubiales relies on a technological ad- Rubiales’ sustainability policies are envisioned years. “We came here looking for the Orinoco vantage over competitors that could quadruple through a series of commitments that include Oil Belt and we found it. That belt doesn’t just Colombia’s reserves of 2 billion barrels, and help acting with consistency and transparency, pro- stay in Venezuela, it goes through Colombia, transform the country into a world leader for moting respect for human rights, and con- Ecuador and Peru,” he explains. heavy oil production. Moreover, it could enhance tributing to society by improving the quality of The knowledge and expertise of heavy oil the recovery rates that currently leave an aver- life in communities where the company oper- production Mr. Pantin brought to Colombia age of 85% of oil resources in the subsoil. ates, while ensuring the continued well-being of contributed greatly to optimizing its produc- “There are certain technologies with which all its stakeholders. tion in the country. “We went from produc- we have a lot of experience because we have been As part of its commitments, in January 2011 ing 14,000 barrels per day (bpd) to 245,000 using them in Venezuela since the 60s, especial- the company signed the United Nations’ Glob- bpd. That was achieved mainly by using bet- ly one that is the intellectual property of Pacific al Compact (UNGC), adopting its policies on hu- ter technology,” he adds. Rubiales called STAR (Synchronized Thermal man rights, labor, environment and Heavy oil represents the largest part of Colom- Additional Recording). We plan to use that tech- anti-corruption into the company guidelines. bia’s production – with current production av- nology to make recovery go from 15% to 50% or Sustainability initiatives include waste man- eraging 800,100 bpd – and it is expected to increase 70%,” says Mr. Pantin. “This technology is used agement activities, reutilizing industrial and do- to 2-3 million bpd during the next decade. all over the world but the way we do it, using syn- mestic wastewater, and monitoring the condition Orlando Cabrales Segovia, President of ANH chronization, is part of the Pacific Rubiales patent.” of flora and fauna within company fields. More The best way to change recent accomplishments include ongoing refor- the bad perception of estation and replanting of trees in areas affected by the company’s developments, and the instal- the oil industry is with lation of an incinerator to treat non-reusable do- reality, by showing mestic waste. In Colombia, Peru, Guatemala, and other ar- people what is really eas where Pacific Rubiales is present, the com- happening today at oil pany is committed to operating in collaboration with local communities and implementing their installations. right to prior consultation when projects are car- ‘ ried out within their territories, so as to ensure indigenous protection and integrity. Ronald Pantin, The company’s positive relationships with lo- CEO of cal communities are a vital part of its success, as Pacific Rubiales is maintaining a satisfied workforce. With this in mind, the Pacific Corporate University (PCU) was created to ensure that competitive market advantages are upheld. Furthermore, Pacific Rubiales is also working to clear the industry of the bad image it has been “We are also the biggest gold producers in tarnished with in the past. “The best way to change Colombia with Gran Colombia Gold. We are that perception is with reality, by showing peo- in the coal business with Pacific Coal, which ple what is really happening today at oil installa- has a production of about 2 million tons. tions,” points out the company’s CEO. “Today, the “Our new iron company, Pacific Iron, is go- world understands the importance of the envi- ing to produce iron minerals. We are going in- ronment, and it understands that things can be to the biodiesel area with 30,000 hectares of done the right way.” African palm. We also have important lime mines that we use as fertilizer for our palm plan- BRANCHING OUT tation,” explains Mr. Pantin. With a total of 40 blocks (35 in Colombia, two in Furthermore, the company has invested Guatemala and three in Peru), Pacific Rubiales is hundreds of millions of dollars in the con- the sole owner of Pacific Stratus and Meta Pe- struction of the Bicentenario pipeline, in which troleum Limited, which operate and own inter- it holds a 33% interest. The project is expect- ests in the Rubiales and Piriri oil fields of the ed to add 450,000 bpd to the existing capaci- Llanos Basin and La Creciente natural gas field, ty of the pipeline systems connecting the Llanos both in Colombia. Basin with export markets.

10 AN INDEPENDENT SUPPLEMENT TO THE MIAMI HERALD BY PANORAMA REPORTS Dramatic financial Sustainability is the

Bancolombia is turnaround beats prioritizing social and environmental initiatives the downturn In 1998 Grupo Bancolombia established its leadership position within Colombia’s finan- cial services industry with the fusion of Ban- Colombia’s prudent economic policies have co de Colombia and Banco Industrial Colombiano. Today, the institution has 7 mil- helped it return to investment-grade status lion clients and is the largest and most im- and enjoy a forecast of continued stability portant financial entity in the country. “We aim to contribute to an economically pros- perous, environmentally sound, and socially It is no wonder Colombia has responsible Colombia,” says Carlos Raúl Yepes, financial experts talking, par- President of Grupo Bancolombia. ticularly following its 2011 in- vestment-grade hat trick – an SUSTAINABLE COMMITMENT important milestone for the In the current era of transition to a low-car- country following decades of bon economy, Bancolombia’s commitment to social, political and economic sustaining the environment is even reflected struggles and disputes. Stan- in the company’s office and building structures. dard & Poor’s, Moody’s, and Its main offices in Medellín – one of the ar- Fitch all raised the South Amer- chitectural highlights of the city – was re- ican nation's debt rating to in- cently awarded for its environmentally friendly vestment grade. “Colombia is design, becoming the only building in Colom- the only Latin America coun- bia to receive the Leadership in Energy and try that has never defaulted on Environmental Design (LEED) certification, an external debt commitment,” and the second in all Latin America. CNN reported Alberto Bernal From a more commercial standpoint, Mr. of Bulltick Financial as saying Yepes highlights Bancolombia’s support for last June in its coverage of Fitch’s environmentally sympathetic schemes with upgrade. its distinguished product range designed After losing its investment specifically for green activities, saying: “We grade status in 1999, the coun- have special credit lines oriented at environ- try remained haunted by ghosts mental projects, with subsidized and longer of the economic crisis it had term interest rates.” experienced. Throughout the 1990s, Colombia grew at a healthy rate and followed Colombia’s economic crisis. Of par- INTERNATIONALIZATION was labeled one of the top emerging markets. ticular impact was the Andean Trade Prefer- With offices in Miami, Panama, Puerto Ri- At the end of the decade, however, it witnessed ence Act (ATPA), which was enacted as an co and Peru, expansion continues to be a key a turn of events: banks presented unhealthy American effort to help four Andean coun- priority in Bancolombia’s agenda. “There are balance sheets and required government in- tries, one of which was Colombia, in the fight many ways of being present, not just neces- tervention, the economy fell 4%, and by June against drug production by expanding the sarily by buying banks. It can also be by giv- 2000 unemployment surpassed 20%. countries’ economic alternatives. ing out loans, as we are doing in Guatemala,” Since then, prudent economic policies have In its pursuit of economic diversification, says Mr. Yepes. become the guiding philosophy to Colom- Colombia also signed a number of bilateral Bancolombia’s moves are strategically de- bia’s stability and sustainable growth, keeping trade and investment protection agreements signed to ensure the best development re- it off dramatic roller coaster booms and busts. with Canada, Mexico, Chile, Peru, the Andean sults for the company. Its focus is Coupled with an increased resiliency to in- Community of Nations, and Mercosur, among concentrated on leading institutions in their Latin America. ternal and external shocks, Colombia is be- others. Free trade zones were established in the respective markets, with good corporate The prosperity of Bancolombia is accentu- coming an example to follow on the path to country, 23 of which are permanent. Four of governance and transparency, in countries ated as the financial entity’s president recalls his financial sustainability. these are located in coastal territories and have with economic stability and a well-estab- beginnings within the company: “I started work- Between 2002 and 2007, the country’s eco- easy access to the main ports, including Bar- lished legal framework. ing in this organization in 1993, and I remem- nomic growth rate picked up, averaging over ranquilla, Cartagena and Santa Marta, while “A company like ours must have interna- ber that in 1995 we went to register the 5%, a result of a boost in foreign investments at- others have been placed at strategic points to tionalization included in its strategic agen- American Depository Receipts (ADRs) in New tracted by improvements in domestic security, meet the demands of individual sectors. Zona da. We have done so. We have had an office York. It was very difficult to register a small prudent monetary policy, and export-led growth. Franca de Bogotá is one such zone that proves in Panama for 40 years, our stock has been bank, called Banco Industrial Colombiano, A series of agreements and pacts contributed the success of the scheme. listed in the New York Stock Exchange Medellín, for $72 million. Today, 17 years lat- enormously to building the prosperity that In 2011, the year that the greater part of the (NYSE) for 17 years, and seven years ago we er, thanks to the coherence of our strategy and Western world protested its despair of the bought Banco Agrícola in El Salvador,” says its rigorous implementation, we are able to in- credit crunch, Colombia added to its list of the president. vest $1 billion in three hours, as we did on Jan- trade partners with its most important free uary 5, 2011.” Colombia is the only trade agreement (FTA) to date with the Unit- MAKING HISTORY Latin America country ed States, and continues in the process of ne- Mr. Yepes considers himself an optimist, and INCREASING COMPETITION gotiation with European Union. it is with this positive outlook and drive that With an increase in Colombia’s middle class, that has never defaulted Lured by the country’s economic reforms, Bancolombia has gone down in history books. the country is now being targeted as the desti- on an external debt investment became one of the key drivers of In 1995, it was the first Colombian compa- nation of choice of international banking enti- growth that contributed to Colombia’s recov- ny to enter the U.S. market and since listing ties. This trend will undoubtedly increase commitment. ery. From 2002 to 2009, private investment on the NYSE that year its stock prices grew competition and benefit consumers, who will ‘ grew by 25% annually. And although the coun- threefold and it is now 17 times larger. have a wider array of choices and products to CNN try’s growth slowed somewhat during the glob- Moreover, Bancolombia obtained $993 suit their needs. The influx, however, doesn’t reporting on Fitch’s al recession, Colombia performed better than million following an international stock is- seem to worry Mr. Yepes too much. “Compe- upgrade last June the combined average 3.6% of other Latin suance earlier this year. This move was the tition is welcome,” he says. “We are prepared American countries. first of its kind and dimensions ever in to receive it with open arms.” Ready to insure the future FTA era creates new expectations for Positiva insurance group

Colombia’s insurance sector has experienced trade agreement (FTA) comes at a good time. is an opportunity for Colombia to see if it will substantial growth in premiums in recent years The country is in good condition after having impact on job creation, to see if it will be a as the country’s income levels have risen and been in a delicate domestic situation for many strong stimulant to the economy and whether public security has improved. The presence of years. People are enthusiastic and the invest- or not foreign direct investment increases with foreign companies within the sector has in- ment climate is good.” a consequent increase in productivity,” he says. tensified competition, increasing over the years Dr. Quinche participated in the first nego- Dr. Quinche also hopes the health sector will the standard of services delivered. tiation rounds of the FTA as vice-president of benefit from the agreement: “The financial and Dr. Gilberto Quinche Toro, President of Pos- Positiva’s health area and knows the benefits health sectors are based on trust. And while the itiva Compañía de Seguros S.A. says: “The free that come with its ratification. “Today, the FTA financial sector right now is enjoying having the confidence, the health sector is not.” Positiva Seguros, established in 1965 to meet the demands of Colombia’s private sector, is to- day a leader of the domestic market and spe- cialized in occupational hazards and life insurance. It is currently set on international expansion and becoming the country’s leading insurer by 2013. With the onset of the FTA following new ac- tivity ignited in Colombia due to an increase in public infrastructure spending and private equity investments in 2009, Positiva is set to meet its objectives. In 2008 the insurance company had 1.7 mil- lion insured and by 2011 boasted a clientele of over 3.3 million. The company is prepared to continue growing with a robust financial back up set aside in reserves. Positiva’s president explains: “The company, in order to ensure its long-term payment oblig- The free trade ations (to pensioners or accident victims who die or are incapacitated), has reserves of near- agreement (FTA) comes ly $1.7 billion and a portfolio of over $2.24 bil- at a good time... People lion, which guarantees that our financial management allows us to cover our short, are enthusiastic and the medium and long-term commitments.” investment climate is Positiva offers a comprehensive range of ‘good. products for individuals and groups, including life, accident and health insurance, pensions, special insurance for drivers and builders. Moreover, Positiva Seguros is certified in Dr. Gilberto best practices having attained the ISO 9001 Quinche Toro, for quality, ISO 14001 for environmental man- President of Positiva agement, and the OHSAS 18001 in security and Compañía de Seguros health, as well as being rated AA+ by Value and Risk Rating S.A. AN INDEPENDENT SUPPLEMENT TO THE MIAMI HERALD BY PANORAMA REPORTS 11 name of the game TCC: Miami to

CLIENT PRIORITY Bancolombia created the Committee for Re- Colombia nonstop spect for the Client, which seeks to ensure higher management teams have the capaci- ty to anticipate the experiences and services FTA to move logistics sector up a gear clients expect to receive from the institution. “We need strong communication. We have to know that we owe our existence to our clients,” says Mr. Yepes. In the context of the global crisis, the 2010 Edelman Trust Barometer revealed that bank- ing entities went from being the third most to the third least trusted industry. After the market panic Colombia experienced during its own crunch during the mid-90s, Ban- colombia has “humanized the bank,” making client esteem its driving force. Proximity, respect, coher- ence and gratitude are just some elements that the bank’s presi- dent uses to describe the rela- tionship with its clients. “We are convinced that Grupo Bancolombia is ready for a transcendent transformation,” Josefina says Mr. Yepes. “That is why our Agudelo Trujillo, leadership is not just economic, it President of TCC is also a social leadership. We feel that if things are going well for Bancolom- bia, the country is also doing well. “Last year, we paid more than $422m in taxes, on profits of $844m – so about 50% of our profits went in taxes. And we like that, because if we are generating wealth within the organization, our commitment is to also generate wealth for the countries in which we are present.” It has been a lively year for Colombia’s logis- Colombia’s improved infrastructure and tics sector, with international courier giants technological advancements have helped set CORPORATE SOCIAL RESPONSIBILITY (CSR) such as UPS teaming up with national com- the country’s national standard of servicing Bancolombia’s CSR commitments are aimed panies, attracted by the country’s prosper- on a global competitive level. Vital to the at generating sustainable value for its stake- ous economy. country’s economy, the logistics sector plays holders and creating a more inclusive culture Growing alongside the country’s economy an important role in the import-export mar- through financial education programs. is national courier and logistics services en- ket chain, permitting a smooth forward and “In Bancolombia, we aspire to create a peo- terprise TCC. Set up 44 years ago in a garage reverse flow of goods within and beyond na- ple-based organization that is growing, sus- in Bogotá, TCC has developed through in- tional boundaries. tainable, profitable and efficient. We have to novation, commitment, and a family spirit to With offices in Colombia and Miami, TCC take care of what I call the five R’s: reputation, become one of Colombia’s leaders in services. is sure to benefit from the recently approved regulation, risks, respect for the client and re- The company is headed by its president free trade agreement (FTA) as it continues sponsibility for society,” says Mr. Yepes. Josefina Agudelo Trujillo, daughter of its expansion plans. “In addition to Miami, founders Jorge Agudelo Restrepo and Ros- we are looking into other capitals of South alba Trujillo Trujillo, who views the foreign- America, particularly Peru and Ecuador. We We told President Juan Manuel Santos that domestic equation as a positive interchange have now been in Miami for seven years, of know-how to further optimize the quali- convinced that the United States is the largest if he has five engines of growth, we are ty of services. market with the greatest opportunities,” ex- Though international companies contin- plains Ms. Agudelo. the fuel. ue to dominate the international market to The ratification of the FTA will undoubt- and from Colombia, “Our domestic market edly strengthen relationships between Colom- is very well supplied by world-class Colom- bia and the U.S., as well as open doors and Carlos Raúl Yepes, bian brands. When international operators increase export markets. TCC, for its part, is President of Grupo Bancolombia arrive and meet us, they are surprised by the prepared to take on the load and become a ‘ quality they encounter,” says Ms. Agudelo. major link between Miami and Colombia. 12 AN INDEPENDENT SUPPLEMENT TO THE MIAMI HERALD BY PANORAMA REPORTS International initiatives Generating valuable provide a cultural edge scientific know-how

A unique institution with a global vision New research programs at CES are a priority

Founded in 1977, Universidad CES is an in- new research programs is one of the uni- dependent non-profit education organiza- versity’s most ambitious objectives, and one The U.S. system has tion established in the heart of Medellín. which it hopes will advance further with With an international focus and education- the ratification of the free trade agreement been a pioneer and we al approach that facilitates the access to ed- with the U.S. ucation and information to students of all “Our strongest research group is the Trop- are committed to social levels, CES thrives on nurturing ical Medicine Institute because tropical dis- bringing that type of Colombia’s future. eases are a very big problem in some Dr. José María Maya Mejía, Rector of Uni- countries,” says Dr. Mejía. “We have worked education to our versidad CES, emphasizes the importance on diagnostics for tuberculosis and many of higher education for both personal and other diseases. Our plan is to start a com- country. social development: “Higher education is pany that can commercialize those diag- the one that really sends you out into the nostic methods.” ‘ world. Colombia’s higher education institu- With such developments under way to Dr. Rodrigo tions have understood, in the last 10 years, generate resources to sustain research, the Noguera that we are not only preparing students to university is currently the least enrollment Calderón, work in the country, but also to become fee-dependent institute in the country, hav- Rector of the Sergio competent on an international level.” ing reduced its dependency from 90% to Arboleda University As Medellín’s university of choice, the high 70% in 2010. standards of education at CES, particularly “We also have a program called Coverage in science, have been acknowledged by with Equity that helps students from lower The Sergio Arboleda University carries the guage of ancient cultures, as well as astrono- Colombia’s social and academic communi- social groups to get into our school. Today name of a distinguished figure of Colombia’s my and theology. The Faculty of Law was the ties: it became the first institution in the we have around 300 such students, which is literary history, considered a brilliant mind first constituted. Today, its Bogotá premises country to receive accreditation from the about 10% of the student body,” explains Dr. within circles of literature, and social and po- have grown substantially, extending to Santa Ministry of National Education for its med- Mejía. Similar to a scholarship-based pro- litical sciences. While working as a journal- Marta. An additional campus has opened in ical and dental programs. gram, this initiative exonerates students from ist, Sergio Arboleda strongly defended the Barranquilla. Thousands of students now par- With its 2011-2020 education plan ap- 50% of the enrollment fee and offers loans causes of order and justice, which are the pil- ticipate in the university’s undergraduate and proved and in place, the development of throughout their period of study. lars of the institute today. “Our university has postgraduate programs, which cover admin- been successful due to the academic pro- istrative and economic sciences, engineering, gram offered, which has the added value of and social and political sciences. teaching students not only the technicalities Dr. José María of the subjects but also about cultures around GLOBAL REACH the globe,” says Dr. Rodrigo Noguera Calderón, The university considers foreign exposure a Maya Mejía, Rector of the University. vital part of its academic program, much a Rector of Universidad CES response to the challenges poised by the in- AN ACADEMY APART creasingly competitive demands of a global- In 1984 the renowned Colombian journalist ized world. Rodrigo Noguera Laborde embarked on a Students are given the opportunity to par- journey to fulfill his greatest ambition: to cre- ticipate in internationalization programs in ate an academy unlike any other in Colombia, institutions abroad, such as the Florida At- a humanist school of thought and culture lantic University (FAU) and Florida Interna- whose verve would reach beyond established tional University (FIU). “We have to be principles and conventions. His objective was constantly following the global trends of high- to address questions of existence and make this er education,” says Dr. Noguera. “So double de- knowledge available to those interested and grees that are offered all over the world are now their environments. also being offered in Colombia.” In partnership with Álvaro Gómez Hurta- Ongoing research and innovation have at- do, a celebrated politician and journalist, the tributed the university with a competitive edge two men designed a new concept of teaching. in the preparation of its alumni, making it one They founded the academy that years later of Bogotá’s most renowned institutes, with would become the internationally respected scholarships available throughout the acade- Sergio Arboleda University in a house in Bo- mic year. “Internationalization is in our essence. gotá’s Calle 74, with six teachers and 36 stu- As we continue to consolidate our programs, dents who shared the vision that we will expand our international reach in the comprehensive education required the lan- U.S.,” adds Dr. Noguera. AN INDEPENDENT SUPPLEMENT TO THE MIAMI HERALD BY PANORAMA REPORTS 13 Clear view of a bright future At your service Colombian-based glass business group Colombia’s booming potential and vibrant workforce make it an ide- ranks among al platform for outsourcing, and it Florida’s leading has introduced policies to enable service exporters of the tourism, in- glass companies formation technology (IT), and medical sectors to benefit from du- In the context of an uncertain global econo- ty drawback on imported products. my, Colombia’s leading glass manufacturing Latin America is becoming the business group made up of Energía Solar-ES destination of choice over other Windows, Tecnoglass and Alutions is one of competitive markets, such as Asia, the few and fortunate enterprises that have due to its proximity to the United not felt the pressures of current economic States, its investor-friendly climate uncertainties. “On the contrary, we are ob- and the increasing levels of edu- serving a growing Colombian economy, dy- cation of its population. namic, with strong national and foreign Juan Carlos Giraldo, General Di- investments. And despite the revaluation, we rector of the Colombian Association are increasing our exports and national sales,” of Hospitals and Clinics (ACHC), says José Manuel Daes, President of Energía accurately defines the era Colom- Solar-ES Windows. bia is experiencing: “The export of Stalled for over five years in Washington, services is not something new here. the long-awaited approval of the free trade Our quality standards are becom- agreement (FTA), which liberated trade bar- ing stronger so that we can com- riers between Colombia and the United States, pete in the North American market is a factor that is not only expected to con- with two main groups in mind: one tribute to Colombia’s economic growth rate, is Colombians living there, which but finally relieve companies’ restraints on is a very large group. In New York planning long-term operations and invest- and Miami there are 1 million and ments. “With the free trade agreement our 1.5 million people. And secondly, products are considered fit for the ‘Buy Amer- Barranquilla has With the FTA our we also have in mind some insur- ican’ initiative, which allows us to bid on all gov- ers who see there are important ernment work,” explains José Manuel. changed radically products are considered possibilities here, because of prices Energía Solar-ES Windows, established in and easy conditions.” 1984, was the first of the group’s companies to with regard to its fit for the ‘Buy The new hospital built in Rio Ne- enter the market, after which Tecnoglass was willingness to host American’ initiative, gro by the Fundación San Vicente de set up in 1994 and Alutions in 2007. The group Paul is one such project that will established its glass manufacturing plants in new businesses and which allows us to bid boost the export of medical services. Colombia’s strategically located northern port Colombia ranks among Latin of Barranquilla, and is today one of the coun- industrial on all government work. America’s most favorable destina- try’s leading companies continuously expand- developments. tions for the business process out- ing throughout the United States having made ‘ ‘ sourcing (BPO) industry. The BPO its base in the south of Florida. José Manuel Association, led by Ana Karina Specializing in the manufacturing of glass and Christian Daes Daes Quessep, is responsible for the glass transformation, the company’s products President of President of Energía progress of the call center indus- even include those resistant to the impacts of Tecnoglass Solar-ES Windows try. Colombia’s human resources long-range missiles and Grade 6 hurricanes. gives it a competitive edge within the industry over other destina- BARRANQUILLA, OPENING A NEW WINDOW TO THE WORLD tions such as Ireland or India. Barranquilla, an industrial port city with an Barranquilla, Pereira and Man- active business culture, nationally and inter- izales have created thousands of nationally connected by air and sea, is not on- insulating glass lines, a screen printing line and ta Rica, Panama, Puerto Rico and the Do- jobs through call centers and BPO ly home to a strong and varied workforce but more, as well as the most efficient window and minican Republic, the group’s lauded projects companies. Minister of Information it also boasts one of Colombia’s lowest costs of façade manufacturing plant with the best mar- in the U.S. include the W Hotel in Miami, the Technologies and Communications living – a reason why many companies choose ket prices,” says José Manuel. South Miami Dade Cultural Arts Center and Diego Molano Vega has instigated to set up there. the Texan Wyly Theatre. a plan to promote the export of cre- “Barranquilla has changed radically with re- THE GROUP IN FOCUS Particularly close ties are maintained with ative industries, such as software gards to its willingness to host new business- The Daes brothers recall the group’s first ex- Miami, considered by the company as its FTA development. The ratification of the es and industrial developments. Thanks to our periences in the North American market: “Due hub. “Miami is undoubtedly the capital of the free trade agreement with the U.S. recent Mayors, we now have a full range of to the collapse of the Colombian market in south of America, and as such most Latin Amer- will make it Colombia’s main mar- public services, which was one of our greatest 1995, we began to seek external markets and ican businesses are set up there. Our companies ket for these services. weaknesses; our road network continues to that's how we entered the U.S., but as some lo- are very close to Miami and it is our intention improve, and our ports have improved their ca- cal suppliers failed to fulfill their duties or were to always grow in that city,” says Mr. Daes. pacity and services,” explains Christian Daes, of poor quality, it was difficult for us to con- President of Tecnoglass. vince them that a Colombian company could FUTURE VISION The ratification of the FTA has contributed meet demands of quality, time and complete Having worked for years to distinguish its brand greatly to changing the face of the city, and deliveries. So we established a strict program from competitors by maintaining standards businesses are now working to make their of quality and logistics to distinguish us from above those of the industry and competitors, town the busy hub it used to be before the the competition,” says José Manuel. the group’s focus remains on expansion and in- country’s political turmoil. The group is in- The group’s successful expansion across the novation, particularly in the American market tent on making Barranquilla the window cap- American market is acknowledged in the sec- and Brazil. The company sees the construction ital of the world. tor’s trade publications. Due to its significant sector becoming increasingly focused on en- “Barranquilla has the only fully integrated U.S. presence, it figures among the top six in ergy-saving products, and is concentrating ef- company to produce windows and facades, Glass Magazine’s “Top Glass Fabricators” (De- forts in this area. with our own extruded aluminum, two press cember 2011 issue), and is the only company “These are the areas on which the develop- machines with a third on the way, seven hori- in the list whose fabrication plants are located ment of our new products is based: high effi- zontal tempering furnaces, two curved tem- outside the U.S. or Canada. ciency, environmentally friendly and extremely pering furnaces, five lamination lines, two Present in Argentina, Aruba, Colombia, Cos- energy saving,” concludes Mr. Daes. Tuned for international TV productions

plans to propel the company into the future in- (SPT), a move vital to the company’s objectives Top Colombian clude expanding its content portfolio and in- of internationalization. “That is a very impor- broadcaster Caracol ternational presence. tant alliance for us. First of all because Sony Pic- As head of Caracol TV, it is Mr. Pérez’s duty tures owns Columbia Pictures and Columbia TV collaborates with to lead the company’s diversified lines of busi- Television, one of the great TV and movie pro- Sony Pictures ness, and one of the developments under way ducers in the world,” explains Mr. Pérez. is the modernization of its administrative struc- Amar y Temerand El Laberinto, sequel to the Television as part of ture. “We had a pyramidal structure where all successful 1990s Colombian soap La Mujer del its internationalization decisions flowed toward the top. That system Presidente have been the first two of these pro- worked very well because for the first 10 years ductions. of Colombian television we almost always ranked Furthermore, the deal with Sony will im- It is proving to be a promising year for Cara- among the highest in audience ratings and prof- pregnate international know-how into Caracol col Television, one of Colombia’s two leading itability,” he says. TV, fundamentally in aspects of story develop- TV stations with an international broadcast Other changes include attributing the com- ment and international marketing strategies, signal, as the company is successfully achiev- pany’s vice-presidents with more autonomy and while the Colombian company will become ing its strategic objectives of international ex- redefining responsibilities in their respective de- SPT’s gateway into the growing Colombian and pansion that will place the channel at the partments “so they can have more grounds to Latin American markets. forefront of the industry. make decisions,” adds Mr. Pérez. “These changes With the Latin American TV market being Its most recent triumphs include a deal with have raised the company’s spirits, employees see globally renowned for thriving on soap operas, Sony Pictures Television and they have more possibilities, more of a chance Mr. Pérez’s plans for Caracol TV include ex- late last year obtaining the to make decisions and they have undertaken pansion into new genre markets. “We have al- transmission rights for the the challenge and the responsibility.” ways been good at drama and soaps, but we are London 2012 Olympic “Our job is to find the stories that will be trying to get into humor now, without leaving Games, as well as for the the most interesting not only in Colom- the other two behind,” he says. terrestrial television and bia but also internationally. Right now, Exportation of content has become of key radio coverage of the first Colombia is Caracol’s most important importance to the Colombian company, as its Youth Olympic Winter market, but we understand that we president affirms: “We have a great team of Games held in Inns- will get more competition in the fu- people putting up our flag in every country in bruck in January 2012. ture so we need to the world: Europe, the Middle East and Asia. International devel- grow outside Carlos Alejandro What we are doing is very impressive and it is opments will contin- Colombia. That’s ex- Pérez Dávila, wonderful how many people are interested in ue to take place under actly what we are do- President of Caracol TV our products.” the visionary ambi- ing, and we are doing tion of Carlos Ale- it successfully,” says jandro Pérez Dávila, Mr. Pérez. a Harvard and The future for Cambridge grad- Caracol TV certain- uate and success- ly looks bright both ful businessman on the national and in Colombia, international fronts, who was ap- with the recent con- pointed as solidation of a three- president of year coproduction Caracol TV agreement with Sony in 2011. His Pictures Television 14 AN INDEPENDENT SUPPLEMENT TO THE MIAMI HERALD BY PANORAMA REPORTS You’ll want to stay forever...

A world of tranquil beaches, historic cities and unspoilt landscapes awaits

A country packed with superlatives and diversi- ty, Colombia’s rich mix of curiosities and culture is piquing the interest of international travelers ea- ger to discover a truly unique Latin American ex- perience. From kaleidoscope displays of brilliant colors underwater to the stimulating scent of cof- fee in the hills, and pulsating rhumba and salsa beats, as well as ancient towns, lavish rainforests, tropical beaches and snow-capped Andean moun- tains, it is a country that stimulates the senses. Colombia hosts a variety of major events that rank among the world’s largest flower pa- rades, salsa festivals, and outdoor horse shows, as well as the second biggest carnival celebra- tions on the planet. At the biannual Iberian- American Theater Festival in Bogotá, hundreds of spectacles from around the world transform the capital into an incredible 17-day stage for performance arts. Colombia ranked in sixth place in the 2009 Happy Place Index (HPI), which surveyed the av- erage happiness of the population and included the life expectancy and ecological footprint of 143 countries. In addition, environmental efforts in the capital have resulted in Bogotá having the most extensive network of cycle routes out of every city in Latin America. The only South American country lapped by both Pacific and Caribbean waters, Colombia’s spectacular beaches are complemented by mag- nificent greenery and imposing peaks. Rising 18,946 feet, the Sierra Nevada de Santa Marta is the highest seaside mountain in the world and draws hikers, mountain climbers, bird watchers and archeological tourists from around the globe. In 1980, the Colombian explorer and journal- ist Andrés Hurtado Garcia described the river at Cano Cristales (Crystal Canyon) in the Sierra de La Macarena National Park as being “the most beautiful river in the world”. At certain times of the year, the many varieties of algae and moss on the bottom of the river bloom in a resplendent display of color, leading it to be known as “the riv- er of five colors”.

CARTAGENA Considered by many one of the most beautiful Historically, Cartagena was imperial Spain’s Located on the equator, Cartagena boasts an The departments of Caldas, Quindío and Risar- places in the world, Cartagena is a breathtaking main port for the transportation of merchandise ideal climate all year round with an average tem- alda make up the region, interconnected by a net- port city on the Caribbean. Its pastel-tinted Span- and treasures from the New World back to Eu- perature of 28 degrees Celsius. work of well-maintained roads dotted with ish colonial architecture and quaint cobblestone rope. The city became a hub of political and eco- Visitors will lose track of time discovering the unrivalled views and distinctly colored villages. streets contrast with the imposing cathedrals and nomic activity, playing a key role in the city’s friendly culture. On foot or by Chivas (a Renowned for growing and producing much forts that line its coast to create a unique atmos- development of the region. It also became the folkloric bus), the Santo Domingo Temple, San of Colombia’s unbeatable coffee, UNESCO con- phere that makes the city stand out. To top it off, target of constant pirate raids, and was forced to Felipe de Barajas Castle, the city’s botanical gar- siders the region “an exceptional example of a sus- some of Colombia’s most inviting beaches are to build thick walls surrounding the old town and dens, and Plaza Bolívar are a must when explor- tainable and productive cultural landscape.” Coffee be found in the region. numerous forts that still stand today. ing Cartagena by day. Scuba diving and a dip in lovers can take pleasure in getting up close and El Totumo Mud Volcano are alternatives for the personal with the region’s agricultural practices more adventurous. that can be discovered in the many cultural ex- Nocturnal treats include a drink in Plaza San- peditions available to visitors; those interested in to Domingo, where slaves were once auctioned, the business side of the trade can also take tours horse-drawn carriage rides, dancing the night through large direct exporting operations. Visi- away to the irresistible rhythm of rhumba, and tak- tors can also enjoy blossoming wildlife and wax ing part in a Chiva tour, with a mandatory stop at palms, ecological trails, parks and adventure sports. Las Bóvedas, the city’s former dungeons. Jean-Claude Bessudo, CEO of Aviatur, the coun- try’s largest tourism agency, is himself a superb BIODIVERSITY advertisement for the region and the country. With more biodiversity per square mile than any- French-born Bessudo first arrived as a visitor, then where else on the planet, Colombia’s highly var- fell in love with Colombia, and confesses that now ied ecosystem is home to around 10% of the world’s he couldn’t live anywhere else in the world. species. More than 1,800 bird, 600 amphibian, 400 mammal, 500 reptile, and 3,200 fish species BOGOTÁ IS MORE inhabit its tropical rainforests, savannahs, and As part of recent efforts to convey a more up- coastal cloud forests – which together cover 58.5% to-date image of Bogotá both nationally and of the total land area. The country’s biodiversity around the world, Colombia’s capital has been also includes an impressive 51,220 plant species, rebranded as ‘Bogotá Is More’ and a new lo- of which 30% are endemic. The Malpelo Flora and go has been designed for the city, inspired by Fauna Sanctuary, an uninhabited plant and wildlife Bogotá being the sum of multiple attributes sanctuary located 235 miles off Colombia’s Pacific and strengths. coast, was declared a UNESCO World Heritage ‘Bogotá Is More’ not only aims to create a Site in 2006. Visitors to the island need a written common element in promotional campaigns permit from the Colombian Ministry of the En- for the city, but also to trigger a stronger iden- vironment and Sustainable Development. The tification in Bogotanos with their hometown. enormous congregations of silky sharks, which of- Last year, Colombia hosted the 2011 FIFA ten mix with hammerheads to form huge schools, Under-20 World Cup soccer competition. is just one example of the reserve’s unique appeal With 10 matches, including the final, being that is being protected by the non-governmental held in Bogotá, it was an ideal opportunity to and non-profit Malpelo Foundation. present the capital’s new emblem to a wide global audience. THE FLAVOR OF COLOMBIA Declared a UNESCO World Heritage Land- scape in 2011 for its “centennial tradition of coffee growing,” the Coffee Axis, or Eje Cafetero, is spread over 8,620 square miles.

The Coffee Axis is “an ex- ceptional example of a sus- tainable and productive cultural landscape.” AN INDEPENDENT SUPPLEMENT TO THE MIAMI HERALD BY PANORAMA REPORTS 15

The sky’s the limit for BD Bacatá A spectacular new cosmopolitan complex, BD Bacatá, includes Latin America’s tallest skyscraper and will transform downtown Bogotá BD Promotores is the company responsible tination for Latin American projects not just for the construction of BD Bacatá, Latin Amer- because of the prosperous times the country ica’s tallest skyscraper and due for completion is going through, but also because of its loca- in 2014. Made up of 66 floors, Bogotá’s new tion. Mr. Borrella sees it as “strategically best- landmark will forever change the face of the located for the real estate business.” city center, hosting offices, apartments, restau- The architectural design includes two main rants, a shopping center and a hotel. towers, one of which will become Colom- Those involved in the project are convinced bia’s tallest, and a total construction area of that a development of this size, estimated at 114,384 square meters. The hotel will be op- $120 million, will show the world that Colom- erated by Eurostars Hotels, part of the Ho- bia is ready and able to handle major interna- tusa Group, marking the arrival in Colombia tional investment projects and compete with of this international chain, which is already cities such as Miami and New York. present in Argentina, Peru and Mexico. The five-star hotel will have 323 rooms, a large con- BD BACATÁ IS BORN vention center, a world-class spa, and two The complex opens the way for a new scale types of restaurant. of development in the heart of Bogotá as part of the city’s transformation. “It should ALL INCLUSIVE be a building to make the citizens of Bogotá BD Bacatá will unquestionably be an all-inclusive proud. It will be on Bogotá’s postcards,” says destination for Colombians and foreigners Emilio Borrella, General Director of BD Pro- alike, and will mark a new concept for com- motores Colombia. petitive cosmopolitan development. Emilio This monumental project is the company’s This concept has been thought of as some- Borrella, vision now; the project however was not con- thing that will add to the city and not isolate General Director ceived as such. BD Promotores acquired an people from it. “We intend to create a pleas- old antique hotel in the city center, called Ba- ant life inside this complex without trying to of BD Promotores catá, with the more modest intention that their make an island inside the city; on the con- construction match the city and “generate a des- trary, the building must be open to the city tination, a city, and most important of all a his- and has to modify the entire downtown,” torical center,” says Mr. Borrella. says Mr. Borrella. With experience in historical city restora- And though some may have feared that lo- tion in other world capitals, including Madrid cal involvement would be beyond the reach of and Barcelona, BD Promotores wanted to many, Mr. Borrella suggests the contrary. “Any highlight the historical center of Bogotá. The average Colombian can purchase a small part project was handed over to Alonso Balaguer of BD Bacatá, a building I hope that will be- y Arquitectos Asociados for its development, come an emblem in the next 20 years,” he says. which resulted in the 240-meter skyscraper In early 2010, the sale of trust rights was initi- that now has the full support of Bogotá and ated and received a positively overwhelming its citizens. response from buyers. The vision now is to reinvent the city of Bo- While there is a large diaspora of Colombians gotá and contribute to Colombia’s CIVETS living in the U.S., mainly in New York and Mi- (Colombia, Indonesia, Vietnam, Egypt, Turkey, ami, which is quite active in the real estate busi- South Africa) status, and prepare it to become ness in Bogotá, Mr. Borrella states that “370 out a major global economic player for the next of the 396 residences of the project may have decade. It is expected to serve as an engine of been sold already to an entirely local market.” development for a reborn downtown Bogotá. Unlike other shopping centers in Bogotá and BD Promotores chose Colombia as its des- other cities around the country, in which lots are usually sold as shop premises, BD Bacatá will have an exclusive management team lead- ing the shopping center itself – “so there will be the chance to acquire more or less meters, We are facing many to change brands… which cannot happen when certain people own each shop as private prop- years of bonanza in erty,” says Mr. Borrella. “We decided to create another trust to be able to sell the shopping cen- Colombia. This ter trust rights in pieces, to rent premises, and country stands out to have central management.” The company has faith that BD Bacatá will from others in the contribute to the continued boom in Colom- bia. “It is very different from Ecuador, Peru and region. Brazil because Colombia is going through dif- ferent times… but right now Colombia is be- ‘ ginning a new era,” says Mr. Borrella. Emilio Borrella, General Director of BD Promotores Colombia

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The mixed-use BD Bacatá project raises the architectural bar in Colombia