Page 136 - STRATEGY Magazine (G)

Boasting the largest economy in the Central American region, Guatemala is preparing for expansive growth with an ambi- tious list of infrastructure projects. The country has widened the opportunities for international investors through pub- lic-private partnerships (PPP).
GUATEMALA: INFRASTRUCTURE
Opening Doors for Shore to Shore
EXPANSION
Guatemala is open for business and wants the world to know. The country is looking to woo foreign investors as it works its way through a number of infrastructure projects and planned improvements. It is considered to be one of the most economically stable nations in the region and represents the most reliable and diverse market in Central America. Foreign direct investments in 2014 totaled approximately US $2.3 billion.
Guatemala’s economy has been bolstered of late by a number of sectors, including con- struction. Licenses issued in the first eight months of 2014 were close to the number is- sued in all of 2013. Construction in 2015 grew 5.8 percent in the first six months of the year. The elimination of the tax on cement, which was declared unconstitutional in August, will likely give construction another boost. Pelayo Llarena Cobos, president of the Guatemalan Chamber of Construction, said that even before the tax was eliminated, the construc- tion sector was buoyant from real estate and shopping center projects.
“Not since before the 2008–2009 crisis have projects of such magnitude been seen. Licens- es for very large projects have been given that has made the amount of square meters soar,” said Oscar Sequeira, coordinator of the Statis- tical Commission of the Guatemalan Chamber of Construction.
READYING THE WELCOME MAT
The Guatemalan government is committed
to growing the country by attracting interna- tional investment and has changed a number of laws to make the country more business friendly. The country will need partners
as it embarks on an ambitious program of infrastructure expansion and renovation. An estimated US $10 billion will be invested in infrastructure through 2020, according to Julio Hector Estrada, executive director of the National Partnerships Agency for Economic and Infrastructure Development (ANADIE).
A portfolio of seven projects approved by ANADIE aims to attract more than US $1.305 billion in investment, but only one, the State Administrative Center, is actually underway so far. Construction companies are unsure, under the new ad- ministration, what funding will be available for public works.
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