Overseas Business Insights In this Issue: Colombia – Air Quality Concerns...... 1 Summer 2019 – Investment Opportunities ...... 1 Uruguay and Argentina– Hydroelectricity .. 6 U.S. Department of State Resource Links ...... 7 Bureau of Western Hemisphere Affairs

Colombia's Growing Concern for Air Quality

Air quality in Colombia’s any significant improve- population exposure is Air Quality Database plac- major cities, while on par ments over the past 19 the average concentration es it among the top 11 with many cities of simi- years. (The concentration of a given contaminant in most polluted cities in the lar size in Latin America, of PM2.5, particulate mat- a given area as weighted Americas. Medellín’s loca- is moderately to signifi- ter with a diameter less by population densi- tion in a narrow valley, cantly worse than the than 2.5 micrometers, is ty.) Compared to other similar to the geography of World Health Organiza- widely used to assess air large cities in Latin Amer- Santiago, plays a large fac- tion (WHO) guideline pollution be- ica, Medellín, tor in limiting the disper- level of 10µg/m3. Co- cause of the Colombia’s sec- sion of pollutants. lombia’s mean population particles’ ond largest city, Colombia’s first regulation exposure to PM2.5 was prevalence has particularly setting standards for at- 16.9 micrograms per cu- and variety of poor air quality, mospheric contaminants bic meter (µg/m3) in harmful ef- which according 2018 and has not seen fects. Mean to the WHO’s (continued on page 4 ) Guyana: Investment Opportunities Abound for U.S. Companies The Ministry of Public goods and services, includ- in early 2020, starting the gic focus is to link the vast Infrastructure (MoPI) has ing engineering, dredging, flow of oil revenues to the interior of Guyana with publicized a vision to cre- concrete, steel, geographic Government of Guyana the more densely populat- ate a modern Guyana, an- information systems (GoG). ed coast. Under the chored in a green econo- (GIS), solar panels, hydro The MoPI wants to sup- MoPI strategy, there are my. With an estimated $1 plants, and excavation port the movement of five proposed key infra- billion in anticipated infra- equipment. Guyana esti- people, goods, and ser- structure projects includ- structure projects, U.S. mates it has over 5.5 bil- vices while reducing the ing an upgrade to the Lin- companies have the op- lion barrels of recoverable cost of transportation and den-Lethem Highway, portunity to provide the oil. Initial oil production protecting the environ- rehabilitation of the MoPI with a wide range of is expected to commence ment. The MoPI’s strate- Soesdyke-Linden High- Page 2 Guyana: Investment Opportunities (continued) way, a road linkage be- Linden to Mabura Hill (78 and bridges from Linden Georgetown, to Goshen in tween the East Bank and miles), which is currently to Soesdyke, a town locat- the South. This project will East Coast , a in progress, funded by the ed near Georgetown’s help the interior mining op- to road, United Kingdom Caribbe- Cheddi Jagan International erations, forestry conces- and a new Demerara Riv- an Infrastructure Fund Airport (CJIA), to im- sions, and eco- er Bridge. In addition to (UKCIF) and the Caribbe- prove safety and accom- tourism. Phase Two will shifting to renewable en- an Development Bank modate higher traffic vol- continue the road south to ergies, the MoPI is also (CDB). Phase Two will umes. The GOG spon- Monkey Jump, where the responsible for protect- run from Mabura Hill to sored feasibility study and water is narrow enough to ing the coastlands from Lethem. The GoG is preparation of detailed justify building a bridge flooding, each goal looking to a public-private designs have already be- across the Riv- providing contractor/ partnership for fund- gun. This project will es- er. Phase Three will build a subcontractor and sup- ing. This project is linked sentially augment a new 2,000 foot bridge over the plier opportunities. to the construction of a Linden-Lethem Highway, river, followed by a road The 282-mile stretch of new deepwater port, bringing goods from the continuing north to Bartica, road from Linden to Le- which will allow larger car- hinterland further up the known as the “gateway to them is a high priority go ships to navigate Guy- Essequibo River towards the interior” and Guyana’s project for the govern- ana’s shallow coastal area the likely new deepwater gold mines. The estimated ment of Guyana (GoG) and transport goods from port. cost of all three phases is because it will connect Guyana’s hinterland and over $200 million. Brazil. The MoPI is work- the capital Georgetown The East Bank - East The new ing with the Inter- to Guyana’s vast hinter- Coast Demerara road link- bridge project will build a American Development land, as well as the land- age will commence at Ogle new, four-lane bridge span- Bank (IDB) via a Tech- locked Brazilian states of Airport in the north, along ning 1.3 miles over the nical Cooperation Agree- Amazonas and Rorai- the Atlantic Coast. Phase Demerara River, which es- ment to select the best ma. This road will open One will create a 12-mile sentially divides greater location for this port. up the flow of goods to link from the coast to the Georgetown in half and is and from several key East Bank of the Deme- heavily congested with com- mining areas within Guy- rara River, bypassing the muters living west of the ana and allow much fast- capital’s congested down- river. The proposed bridge er transit of goods from town. Phase Two will link will be a fixed, reinforced, Brazil, both of which are Guyana’s two international concrete high-level expected to grow Guy- airports, Ogle and CJIA. bridge. The current bridge ana’s economy and in- The Parika to Bartica road is only two lanes and re- crease local employ- link project is divided into quires a drawbridge to allow ment. The project is de- three phases. Phase One ships to pass through. This The Soesdyke-Linden signed in two phas- will run along the Essequi- new bridge will accomplish highway project will reha- es. Phase One will build bo River from Parika, a two main objectives. First, bilitate 45 miles of road an all-weather road from 1.5 hour drive west of it will greatly reduce traffic Page 3 Guyana: Investment Opportunities (continued) congestion for people main aging and in need of and is installing a 10.4 commuting into repairs and/or replace- MW wind-power electrici- Georgetown from the ment. ty system as a pilot project West. Second, it will al- at Hope Beach, a coastal low the continuous flow Guyana’s numerous water- town east of of ships and automobile falls and high solar levels Georgetown. Based on traffic. The GoG esti- make create promising the success of this pilot mates this project at $170 conditions for renewable program, more wind pow- million. energy projects. Current- er projects may follow. The coastal region of ly, Guyana has 67 poten- Guyana, where 90 per- tial hydropower sites cent of the population throughout the country, lives, lies below sea level which create the oppor- and is prone to flood- tunity for the development ing. The MoPI utilizes a of small hydro projects to series of sea walls, rock supply rural communi- armor revetments, and ties. Presently, the GoG- mangroves to protect funded feasibility studies Guyana’s 264 miles of are underway for a num- shoreline. The MoPI ber of sites to evaluate prefers to utilize rock such potential. Similarly, armor revetments, which as Guyana receives an av- cost approximately erage of 1800 kWh/m2 $1,000 per foot, com- annually, most locations pared to more expensive across the country are ide- concrete sea walls, which al for solar photovoltaic cost approximately generation. The use of $1,700 per foot. The solar power serves as a MoPI constructs approx- viable energy solution for imately three miles of remote areas, saving mon- new sea and river de- ey on expensive fuel and fense structures annually large-scale power grid in- and rehabilitates 12 miles frastructure, and creating a of structures annual- sustainable living environ- ly. Despite these efforts, ment for residents. The many sections of the sea MoPI is also interested in walls and revetments re- harnessing wind power Page 4 Colombia (continued from page 1) was issued in 1982 and 2030. For PM2.5, the technology in industry, Rather than improving the applied only to stationary current allowable limit is greening of public spaces efficiency of heavy-duty sources. The Constitu- 25µg/m3 as an annual and reforestation, and diesel vehicles, in several tion of 1991 enshrined average, and 50µg/m3 in measures to control the re- cities including Bogotá and the right to a clean envi- any 24-hour period. suspension of road Medellín, local authorities ronment and the Gov- dust. With over 70 percent restrict private vehicle To measure adherence to ernment’s responsibility of emissions in Colombia’s use. In Bogotá, a system these limits, Colombia’s to protect, plan, and largest cities coming from known as “pico y placa” regional environmental manage environmental vehicles, a consistent weak- prohibits private vehicles authorities and large mu- quality. Since then, Co- ness is enforcement of with either odd or even nicipal governments must lombia has issued new emissions standards. Bo- numbered license plates on establish air quality moni- decrees and resolutions gota’s local environmental alternate weekdays from toring systems and submit at an accelerated pace to authority states that diesel operating during morning their data to the national regulate additional con- vehicles, which include car- commute and evening Air Quality Information taminants, set fuel quality go trucks and buses, gener- hours, or face a $130 fi- System (SISAIRE) man- standards, establish mon- ate over 80 percent of the ne. The system also limits aged by IDEAM. Reso- itoring protocols, and air pollution generated by the circulation of about 20 lution 2254 of 2017 in- create a publicly accessi- vehicles, and a study by Me- percent of taxis, buses, and structs environmental ble air quality data- dellin’s public transporta- large trucks. On February authorities to gradually base. The Ministry of tion authority found that 80 16, projections of poor air incorporate automatic, Environment sets over- percent of heavy-duty quality conditions led mu- real-time air-quality moni- arching regulations and trucks in Medellin have en- nicipal authorities in Bogo- toring equipment into maximum permissible gines ranging from below tá to declare an environ- their monitoring systems, limits for pollutants, and Euro I to Euro III stand- mental emergency and ex- with the goal of having all receives scientific and ards, with only 20 percent tend the restrictions on pri- critical air quality zones in technical support from meeting the Euro IV stand- vate vehicles to apply to the country monitored by Colombia’s Institute of ard. A truck with a Euro I additional weekday hours as December 2022. Hydrology, Meteorology, heavy-duty diesel engine well as the weekend. The and Environmental Stud- Local environmental au- produces as much PM as 30 environmental emergency ies (IDEAM). Resolu- thorities in areas with air Euro IV-rated engines, lasted four days and gener- tion 2254 of 2017 estab- quality consistently worse while a Euro III engine pro- ated significant media cov- lished maximum permis- than allowable limits must duces PM as much as 5 Eu- erage. Although authorities sible concentrations for have plans in place to im- ro IV engines. Municipal say the emergency particulate matter, sulfur prove air quality. These authorities face challenges measures were effective, as dioxide, nitrogen dioxide, plans can include incen- in enforcing emissions PM2.5 concentrations ozone, and carbon mon- tives for electric vehicles standards on cargo trucks, dropped from 72µg/m3 to oxide, and set even strict- and vehicle maintenance, as they are typically regis- 32µg/m3, the public uproar er limits to be reached by incorporation of clean tered elsewhere. regarding the measures has Page 5 Colombia (continued) also placed pressure on ing public outcries that the an area where U.S. busi- try’s use of compressed nat- the authorities to address city missed its chance to nesses could benefit from ural gas and liquefied natural the pollution generated by acquire an electric bus regulatory changes. Colom- gas, which have fewer SO2, cargo trucks and buses to fleet, the Mayor of Bogotá bia has tended to be lenient NOX, and PM emissions combat the perception announced on June 10 that on regulating the sulfur than regular diesel fuel. In that only regular citizens Bogotá would start a bid- content of diesel fuels, giv- addition to cleaner fuels, must inconvenience ding process to acquire en the relatively high con- promoting the use of newer, themselves while the 594 electric buses by 2020, centration of sulfur in Co- more efficient vehicles worst polluters go unpun- which would represent the lombian (“sour”) oil. In would also help Colombia ished. largest electric bus fleet in July 2018, however, Colom- control air pollution. Latin America. Other cit- bia’s National Planning De- Colombia’s increased in- ies are also increasing their terest in monitoring and partment released public bus fleets. On January 4, policy document CONPES reducing air pollution cre- 2019, a Chinese company 3943, which adopts a sched- ates opportunities for won a $23 million contract U.S. companies. One of ule of progressively reduc- to supply 64 electric buses these opportunities is in ing permissible levels of in Medellín. The city of procurement for public sulfur content in fuels from Cali intends to purchase transportation, particular- 2020 to 2025. In the ab- 309 buses in 2019, of ly low-emission buses. In sence of strict regulatory which at least 92 will be November 2018, Bogotá’s limits, Colombia’s state- electric. Adding to the 26 public bus system award- owned oil company began electric buses already oper- ed a 10-year contract for in 2018 to voluntarily deliv- ating in Cali, this new pur- $1.02 billion to a French- er lower-sulfur fuels to the chase will give Cali Latin Medellin metro-area. In- based company and its America’s largest electric local partner, which will creasing the permissible lev- bus fleet, surpassing Santi- operate a fleet of bus- els of biodiesel in fuel ago in Chile. The Council es. The winning company blends would create enor- of Bogota, the city’s high- highlights that its buses mous opportunities for U.S. est administrative body, set meet Euro V standards businesses; however Co- a goal in December 2018 lombia has a history of pro- and thus will reduce par- for Bogotá to have an en- ticulate emissions by 96 tecting its own sugar indus- tirely zero-emission car percent compared to the try, which could create bar- fleet by 2040, which current fleet of Euro II riers for U.S. corn-based should foster a number of buses. Of the six compa- ethanol. Colombia’s Natu- policies to incentivize elec- nies that submitted bids ral Gas Association is also tric vehicles. in the auction, none were advocating for Colombia to embrace the trucking indus- U.S. companies. Follow- Fuel quality standards are Page 6 Uruguay and Argentina Aim to Refurbish Hydroelectric Facility

On May 8, the joint Ar- damage caused by turbines with a total pow- project. Two tenders have gentina-Uruguay Salto flooding. The Salto er generation capacity of been published already. Grande Technical Com- Grande Dam is a piece 1,890 Megawatts. More information is on this mission announced plans of Uruguay’s critical website: https:// to update and refurbish infrastructure meeting The renovation effort will www.saltogrande.org/ the Salto Grande Hydro- over 43 percent of elec- include the modernization licitaciones.php. electric Dam on the Uru- tricity demand for Uru- of the turbine speed regu- guay River, located on guay and five percent lators; replacement of the A critical piece of Uruguay’s the border between the for Argentina. The hydro-mechanical sys- energy infrastructure, the two countries. The Salto bilateral Salto Grande tems; strengthening of project represents a busi- Grande is a large hydroe- Joint Technical Com- spillway gates; replace- ness opportunity for U.S. lectric dam on the Uru- mission completed the ment of heavy lifting sys- commercial interests. Inter- guay River, located be- original project in 1979 tems; upgrading of the ested parties may contact tween Concordia, Argen- and recently secured auxiliary electrical and the U.S. Embassy at Of- tina, and Salto, Uruguay, $80 million in Inter- control systems; and re- [email protected]. and shared by the two American Develop- placement of the main countries. The dam gen- ment Bank (IDB) fund- transformers and commu- erates electricity for 17.2 ing to modernize and nications systems. The million consumers span- prolong the life of the joint commission will is- ning both countries. The aging infrastruc- sue approximately 43 dif- dam also helps to regu- ture. The dam current- ferent tenders for all as- late the flow of the Uru- ly powers 14 propeller- pects of the renovation guay River, minimizing type water (Kaplan) Other resources for anyone interested in overseas business news:

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