Peru, Bolivia, Colombia and Ecuador

Opportunities for Finnish companies in the water sector in the Andean Region

Energy cooperation between Finland and Andean region

• Finnish Ministry of Foreign Affairs will launch a renewable energy and energy efficiency program for the Andean countries (Peru, Bolivia, Colombia and Ecuador)

• The program offers good opportunities for Finnish know-how and technology providers

• Budget of the program is 6,2 million EUR for 3 years• The Andean energy project will be launched on 7th of March, 2011

Basic facts - Peru

• GDP: 129 Billion USD • GDP growth: 0,9 % (2009) and 3,4 % (2010)• Population: 30 Million• GDP (PPP) per capita: 8,500 USD• Ease of doing business: 36 (2010) (2nd in Latin America after Mexico)• Inflation: 2,9 %• FDI: 5 Billion USD (2009)• Exports: 34 Billion USD (2008)• Imports: 22 Billion USD (2008)• Main export goods: minerals, petroleum, fish, agricultural products, textile, wood,

furniture• Main export countries: USA, China, Switzerland, Canada, Japan, Germany• Main import countries: USA, China, Brazil• Finnish exports to Peru: 93 Million USD (2008)

Source: Finnish Customs, CEPAL, World Bank, CIA World Factbook

• Water has been a priority for the Peruvian government since 2006• All water treatment companies are public, but autonomous and under civil

law• Peru has 50 companies that provide water and sewage services

• These serve approx. 17.1 Million Peruvians (urban: 81%, total: 60%) • The companies provide drinking water to 14,7% of the people and sanitation

system to 13,2 Million inhabitants. • In the country there 143 wastewater treatment plants• Wastewater treatment level has risen a lot in the past years. Some 10 years

ago the level was 10% on national level, and today it is 32%.• Upgrade projects

• There are several upgrading projects being made in the water companies

Source: Business News Americas, Peru’s Ministry of Sanitation

Water sector sector in Peru

• 300,000 new water connections have been made in the past three years• Investment of 3.2 Billion USD is required to carry out the country's major

water programmes, according to Peru's national water authority (ANA)• Meanwhile, according to ANA officials Peru's total required investment for water

projects could be more than double the 3.2 Billion USD figure. • The investments are expected to come primarily from the private sector. • Funding

• The base for funding is good, the state guarantees the water tariffs and also external funding is available

• The waterworks initiatives include irrigation, hydro-power generation, seawater desalination services, and potable water and sewage services.

• Millennium Development Goals by 2015• Water coverage in national level should rise to 82% (63% in 1990)• Sanitation to 77% (54% in 1990). • Coverage of wastewater collected by the sanitation system must reach 100% in

urban areas. • Water for All People- program

• The goal is to provide clean water access to 100% of the Peruvians

Source: ANA, Business News Americas

Peruvian water sector

Investments in the water sector in Peru

Source: Sedapal

Source: Sedapal

Investments in the water sector in Peru

Investments in the water sector in Peru

Source: Sedapal

Basic facts - Bolivia

• GDP: 17,6 Billion USD (2009) • GDP growth: 2,8 % (2009) and 3,4 % % (2010)• Population: 9,8 Million• GDP (PPP) per capita: 4,700 USD (2009)• Ease of doing business: 149• Inflation: 3,3%• FDI: 500 Million USD (2008)• Exports: 6,448 Billion USD (2008)• Imports: 4,641 Billion USD (2008)• Main export goods: natural gas, soybeans and soy products, crude petroleum,

zinc ore, tin• Main export countries: Brazil, US, Japan, Colombia, South Korea, Peru• Main import countries: Brazil, Argentina, US, Chile, Peru (2009)• Finnish exports to Bolivia:

Source: Finnish Customs, CEPAL, World Bank, CIA World Factbook

Bolivian water sector

• National Plan for Basic Sanitation 2009-2015

• Goals for coverage and additional population served:

• 90% coverage the potable water (2,9 Million more inhabitants)

• 80% coverage in sanitation (4,4 Million more inhabitants)

• 80% coverage in Wastewater Treatment Plants (2,6 Million more inhabitants)

• Wastewater treatment• 30% of wastewater collected in sewage

systems, receive any treatment before disposal.

• In 2009 Bolivia had a total population of 9,827.522 (urban: 65%, rural: 35%)

Source: National Plan of Bolivia for Basic Sanitation 2009-2015

• Coverage and the number of people who have water and sanitation services (2007):

Bolivian water sector

Metropolitan: Cities of La Paz, El Alto, Santa Cruz and Cochabamba. Large: Cities with more than 100.000 inhabitants. Medium: Cities with 10.000 to 100.000 inhabitants. Small: Urbanic centers with 2.000 to 10.000 inhabitants

Source: National Plan of Bolivia for Basic Sanitation 2009-2015

• Total investment required in the sector to fullfill the goals of National Plan for Basic Sanitation by 2015 (Million USD)

Investments in the Bolivian water sector

Source: National Plan of Bolivia for Basic Sanitation 2009-2015

Basic facts - Colombia

• GDP: 232.4 Billion USD (2009)• GDP growth: 0.8% (2009)• Population: 45,6 Million• GDP (PPP) per capita: 9,300 USD (2009)• Ease of doing business: 39• Inflation: 4.2% (2009)• FDI: 10 Billion USD (2008)• Exports: 38.54 Billion USD (2008)• Imports: 37.56 Billion USD (2008)• Main export goods: petroleum, coffee, coal, nickel, emeralds, apparel, bananas,

cut flowers• Main export countries: US, Venezuela, Netherlands (2009)• Main import countries: US, China, Mexico, Brazil, France, Germany (2009)• Finnish exports to Colombia:

Source: Finnish Customs, CEPAL, World Bank, CIA World Factbook

• Access to safe water and sanitation services has increased significantly over the last decade

• Challenges• Insufficient coverage of services, especially in rural areas• Inadequate quality of water and sanitation services

• The water sector is expected to grow substantially in the next years. • There are significant differences between urban and rural areas.

• Water supply coverage (2005)• Total 83.2%• Urban 94.3% • Rural 47.1%

• sewage coverage (2005)• Total 73.1% • Urban 89.7%. • Rural 17.8%

Source: UNICEF, water authorities in Colombia

Colombian water sector

Investments in water sector in Colombia

Source: Business news Americas, Colombian water authorities

Investments in water sector in Colombia

Source: Business news Americas, Colombian water authorities.

Basic facts - Ecuador

• GDP: 110,4 billion USD (2009)• GDP growth: 7.2% (2008)• Population: 14,6 Million• GDP per capita: 7,600 USD (2009)• Ease of doing business: 130• Inflation: 8.4% (2008)• FDI: 1 Billion USD (2008)• Exports: 19.15 Billion USD (2008)• Imports: 17.78 Billion USD (2008)• Main export goods: petroleum, bananas, cut flowers, shrimp, cacao, coffee,

hemp, wood, fish• Main export countries: US, Peru, Chile, Panama, Colombia, Russia (2009)• Main import countries:US, Venezuela, Colombia, China, Brazil (2009)• Finnish exports to Bolivia:

Source: Finnish Customs, CEPAL, World Bank, CIA World Factbook

Ecuadorian water sector

• Drinking water• 95% of Ecuador's population

had access to improved drinking water (2006).

• Urban population (63% of the inhabitants): 98%

• Rural population: 91%. • Sanitation services

• 84% of the total population has an access to improved sanitation

• Urban population: 91% • Rural population: 72% 

Investments in the water sector Ecuador

Source: BMI View.

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Opportunities for Finnish companies

• The Andean market offers the opportunities for Finnish companies in • Piping• Engineering & consulting• Chemicals• Pumps• Biogas & energy generation from water sludge• Small waste water treatment plants for rural areas• Aereation• Steel structures• Sludge treatment and mechanization

Finpro at your service

Finpro is ready to partner up with you and make your landing soft and to discover all the business opportunities in the market:

• Market access consulting, market studies and local partnering• In depth site selection for production• Subcontracting and local supplier search (local sourcing)• Establishment services for sales and service offices/ subsidiaries• Regional strategy development for Latin America• Analysis of import / export programs• Assistance in negotiations• Reputation analysis of potential partners• Tailor made programs / assignments

Finpro MéxicoOficina Comercial de FinlandiaMonte Pelvoux 111, 4 PisoCol. Lomas de Chapultepec11000 México D.F. MexicoPhone +52 55 5520 3397Fax +52 55 5202 6567

Heidi VirtaConsultantheidi.virta@finpro.fiMobile: +52 1 55 5072 4432