The Best Kept Secret The Best Kept Secret Ministry of Foreign Affairs

Colombia

ColombiColombiaa

With coastlines on both the With coastlines on both the Pacific and Atlantic oceans, Pacific and Atlantic oceans, Colombia is an important Colombia is an important platform for the region platform for the region

46.269.12746.269.127

Colombia holds close to 14% of the Colombia holds close to 14% of the world's flora and faunaworld's flora and fauna and 7% of and 7% of the Amazon rainforest, even the Amazon rainforest, even though our territory represents only though our territory represents only 0.7% of the world's continental 0.7% of the world's continental surface. surface.

Globally it is third in Globally it is third in terms of water resourcesterms of water resources

Colombia has 1,860 identified Colombia has 1,860 identified bird species, representing 19% of bird species, representing 19% of all world's population, and 60% of all world's population, and 60% of the birds of South Americathe birds of South America

It is home to the largest diversity of It is home to the largest diversity of butterflies in the world (3,000 families butterflies in the world (3,000 families and 14 species)and 14 species)

56% of the territory is covered with forests, 56% of the territory is covered with forests, representing 1.5% of the world's surface. representing 1.5% of the world's surface.

We are a destination to explore: The We are a destination to explore: The hidden treasury of the Americashidden treasury of the Americas.

Colombia has the 3rd largest population in Latin America and the Colombia has the 3rd largest population in Latin America and the 24th largest population in the world24th largest population in the world

ColombiColombiaa

A successfulA successfuldevelopment strategydevelopment strategy

Trust and Business

Colombia becomes the New Star of the South

Stable, booming, and democratic, Colombia has increasingly become “a bright star in the Latin American constellation,” according to emerging-market analyst Walter Molano of BCP Securities.

Source: World Economic Outlook (International Monetary Fund)

Colombia Vs. the World: GDP US$ –2011 Estimated

During the second quarter of 2011, GDP grew by 5.2% versus 4.7% the same period last year.

Source: DANE

GNP per capita 2009-I – 2011-II (USD$)

The World Bank recognized that in 2010 Colombia was one of the countries that most improved its business environment. It was also

highlighted as the country with the best business atmosphere in South America.

Business ClimateBusiness Climate

Source: Top Reformers Report, World Bank*Positive figures show improvements in business environment

Doing Business Ranking Variation, 2007-2012 (Change in positions)

-20-15-14-12-10

-6911

2645

Costa RicaChile

ArgentinaBrasil

VenezuelaEcuador

MéxicoPanamá

PerúColombia

In terms of globalization, Colombia is ranked 3rd among Latin America countries, comparing to world economies such as

Japan, Brazil, Russia and Indonesia

Source: Ernest and Young – The Globalization index 2010, Ranking among 60 countries

PERU

JAPAN

TURKEY

RUSSIA

SOUTH AFRIC

A

CIVETS, an opportunity for diversification

Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa will take over as the new BRICs (Brazil, Russia, India

and China).

HSBC CEO Michael Geoghegan: "Each has a very bright future“; "Each has

large, young, growing population. Each has a diverse and dynamic economy.”

“The CIVETS economies are emerging  as attractive destinations for investors and they will

report an increase in Gross Domestic Product (GDP) of 4.5% in the next 20 years. Even

above the estimates growth for the G7 countries, that would be 1.8%”

May 24th, 2010

Colombia

South Africa

IndonesiaVietnam

EgyptTurkey

CIVETS ECONOMIC INDICATORSComparative CIVETS Indicators

INDICATORS COLOMBIA INDONESIA VIETNAM EGYPT TURKEY SOUTH AFRICA

Area - sq km 1.138.914 1.904.569 331.21 1.001.450 783.562 1.219.090Capital Bogotá Jakarta Hanoi Cairo Ankara Pretoria

Population (millions) 44.725 245.613 90.549 82.079 78.785 49.004

Population under age 15 29% 27% 26% 32% 27% 31%

GDP - purchasing power parity (2010 est.)

USD $431.9 billionUSD $1.033

trillion

USD $278.1 billion

USD $500.9 billion

USD $958.3 billion

USD $527.5 billion

GDP per capita (PPP 2010 est.) USD $9,800 USD $4,300 USD $3,100 USD $6,200 USD

$12,300USD

$10,700GDP real growth rate (2010 est.) 4.4% 6% 6.8% 5.3% 7.3% 3%

Inflation rate (consumer prices

2010 est.) 3.1% 5.1% 11.8% 12.8% 8.7% 4.5%

Unemployment rate (2010 est.) 11.8% 7.1% 2.9% 9.7% 12.4% 23.3%

Exports - (2010 est.) in billion USD$40.24 USD$146.3 USD$72.03 USD$25.34 USD$117.4 USD$76.86

Imports - (2010 est.) in bilion USD$36.26 USD$111.1 USD$84.3 USD$46.52 USD$166.3 USD$77.04

Financial Development Index 2010

3.02 -Rank 47 2.9 -Rank 51 3.03 -Rank 46 3.24 -Rank 38

3.18 -Rank 42

3.53 -Rank 31

Public Debt % of GDP (2010 est.) 44.8% 26.4% 56.7% 80.5% 48.1% 33.2%

Colombia has 9 free trade agreements (FTAs) in force with 14 countries

21 double taxation agreements (ADT) with 22 countries : Bilateral Investment Treaties(BITS):3 in force (Peru, Switzerland andSpain)5 signed (UK, South Korea, India,Belgium, China)3 in negotiations (Kuwait, Japan and the UAE)

Exports, Imports and Trade Balance

January – September 2007 – 2011 (US$ Millions)

Source: Ministry of Trade, Industry and Tourism

ExportsImportsTrade Balance

expo

rtsex

ports

In the first nine months of 2011, the export value (U.S. $ 41,521 million) was the greatest historical

value achieved by Colombia in a period of nine months.

Exports: US$ Millions (January - September 2007 – 2011)

Source: Ministry of Trade, Industry and Tourism

Main Destinations of Colombian exportsJan - Sep 2011 (%)

Source: Ministry of Trade, Industry, and Tourism

Colombian exports by product Participation (% - Jan-Sep 2011)

Source: Ministry of Trade, Industry and Tourism

inve

stm

ent

inve

stm

ent “Colombia has a sustained record of sound

economic policies, very strong economic fundamentals and institutional and policy frameworks.

The Colombian authorities have responded appropriately to the global financial crisis, and have demonstrated a commitment to maintaining this solid record.”

IMF Managing Director Dominique Strauss-Kahn,

2009.

Benefits for Special IndustriesIncome tax exemptions for limited terms:

Hotel construction and remodeling (30 years).

Eco-tourism services (20 years).

New software (10 years)

Publishing companies (20 years).

Wind or bio-mass electric generation (15 years).

River transport (15 years).

Forestry plantations (permanent).

New medical products.

Income Tax

Deductions

Reasons to invest in ColombiaTax Benefits

Tax Benefits in Science and Technology

1. Income Tax Deduction

Deduction of investments in Research and Development and Innovation (125% of the value of the project, provided it does no exceed 20% of the taxable income).

Deduction for donations (125% of its value, provided it does not exceed 20% of the taxable income).

2. Income Tax Exemption for profits in software developments and natural medicines (applies from January, 2003 until December, 2011). Natural Medicines must show their new patents.

3. VAT Tax Exemption on imported machinery and raw materials used by universities or research centers (with approval from Colciencias) in scientific research projects.

Reasons to invest in ColombiaTax Benefits

Roads Airports Ports Railways Urban Transportatio

nElectricity Fuels &

Mining Water UtilitiesCommunication

s

Infrastructure in Colombia

Project Portfolio 2010 - 2011

Roadways for competitiveness “Ruta del Sol”“Transversal de las Américas”“Autopistas de la Montaña”Roadway “Buenaventura – Bogotá - Cúcuta”

AirportsAirports granted in concession Northeast Airports“Eje Cafetero” Airports

Ports

RailwaysCentral Railway System Atlantic Railway“Altiplano” Train“Carare” TrainPacific Railway

Ports

Infrastructure Project Portfoliofor competitiveness

Map Source: INCOMap Source: INCO

North ZoneNorth Zone

Central ZoneCentral Zone

2010 - 2018

• NPD and the Ministry of Transport led a planning exercise in the transportation sector for the short, medium and long term, which resulted in an inventory of the projects needed for the country's competitiveness.

• Within the next two years, the studies required for the development of each project will be undertaken, in order to define the scope and procurement scheme.

• Proposed Scope:

Scope Km.New Construction 1.478

Improvement of specifications 4.824Paving 3.547

Projects - TransportationTransportation Master PlanTransportation Master Plan

South ZoneSouth Zone

Amoyá(78 MW) 2012

Cucuana(60 MW) 2014

Quimbo(395 MW) 2014

Miel II(135 MW) 2014

Sogamoso(800 MW) 2014

Porce IV(400 MW) 2015

Termocol(201.6 MW) 2012

Gecelca 3(150 MW) 2012

Pescadero Ituango(1200 MW) 2018

Electricity Generation Potential

• Current Capacity: 13.455 MW

• The Electricity Generation projects underway and planned will provide for the installation of 1.896 MW before 2013.

• New capacity of 3.419 MW through 9 projects.

• Estimated Investment (2009-2018): USD $ 6,500 million.

Thermal utilities

Hydro utilities

Source: XM-CREG

Projects – ElectricityElectric Generation Electric Generation

Map Source: INCOMap Source: INCO

The exploration and production of mining fields in Colombia allows local, as well as international players to invest in the industry.

To request a Mining License, interested parties must have the coordinates of the desired area, the technical information of the activity schedule during production and the layout of the mines.

Once this information is given to Ingeominas, the evaluation process begins. Requests are served on a First-in-First-out basis.

Precious Metals: Gold, Silver, PlatinumCoking CoalCoal

Mining Exploration and Production Licenses

Mining districts

Projects – Fuels & MiningMiningMining

Colombia: “best new destination”

for tourists

In February 2010, Colombia was recognized as the “best new destination” at Europe's most

prestigious tourism fair, The Times Destinations Travel Show in London. For four days visitors to

the Fair and readers of Wanderlust magazine voted to elect Colombia as the hottest new

destination for 2009, giving it a score of 97%. to

uris

mto

uris

m

International tourism to Colombia grows faster than the world’s

average

Source: WTO – DAS. Proexport

Average growth 2000 - 2009

TourismArrival of international

tourists*January-September 2010 y 2011

The number of passengers on cruise ships entered the country between January and September 2011 was

247,579, a growth of 4.3% over the same period in 2010.

*DASSource: DAS; Ministry of Trade, Industry and Tourism; Ports of Cartagena, Santa Marta, and San Andrés.

The Best Places to Go in 2011

January, 3rd 2011.

Colombia ranked second, after Istanbul and out of 1700 tourism destinations, in the list of

most interesting places to visit in 2011 according to the NYT.

World TravellerWorld TravellerSeptember 15th, 2010.

“Cartagena, Colombia: a long wait of 53 years, 7

months and 11 days”

“Colombia: Journal of the cities Bogotá, Medellín and Quindío, a country with no

risk"

By Zhou Wenting

ColombiaColombiaFull of wonders and diversityFull of wonders and diversity