El proyecto de las inversiones en Cuba.

De acuerdo a la firma Ernst Young, estas son las areas de inversiones
inmediatas en Cuba. El plan recorre una serie de sectores dentro de Cuba. La
firma Ernst Young esta asociada a la firma de Henry Kissinger en este proyecto.
Seguir la trayectoria de quienes estan en dicho proyecto es casi imposible, no
obstante tratare de conectar quienes estan de una forma u otra
involucrados. En subsecuentes postings hablaremos de Henry
Kissinger y las diferentes companias que representa. La informacion es extensa
por lo tanto me limito a copiarla en su lengua original que es ingles.

Juan Cuellar

Plan de inversiones de la firma Ernst Young para Cuba.

OIL and GAS

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Foreign investment opportunities in Cuba by sector
Text by Matthew Pickles (Nov 2007)
PRIORITY SECTOR—OPEN TO NEW FOREIGN INVESTMENT

Sherritt International has invested over US$ 500m in mostly on shore (or near to shore) exploration. Interest has increased recently in the 69 off-shore deep water blocks in the Mexican Gulf which hold much promise but are extremely costly to exploit. Oil companies from Spain (Repsol YPF), India (OLV), Malaysia (Petronas) Norway (Norsk-Hydro) and Sherritt now hold 16 blocks.Venezuelan PdVSA has established an office in Havana and announced its involvement in various infrastructural projects including the modernization of the Soviet built refinery in Cienfuegos (+US$ 100m) as well as the development of a supertanker port in Matanzas. Sherritt International is the minor shareholder in Energas S. A. which is developing gas fired electricity generation.
Attracting the investment necessary to exploit the off shore blocks is a key strategic priority for Cuba. Companies interested in this area can expect a quick expedition of any business proposals. Oil and gas service companies are welcome to present their services offered.
Agriculture (Including sugar)

PRIORITY SECTOR—OPEN TO NEW FOREIGN INVESTMENT
Foreign commercial involvement in the sugar sector has been limited to the purchase and distribution side where a number of international traders have traditionally purchased Cuban sugar which is not used as part of bilateral deals or for domestic consumption.The major foreign involvement in this sector is in citrus fruits which has waxes and waned over the past few years with the largest involvement being from an Israeli group which has recently reportedly reduced its interest. There are also a number of mostly relatively minor investments from overseas entities (including potato growing).
The development of ethanol plants is a major priority for the Cuban authorities. Bilateral discussions have been held with both Brazil and Venezuela which might complicate the entrance of a commercial third party—nonetheless this remains one of the more attractive areas for foreign investment.
Banking and finance
PRIORITY SECTOR—OPEN TO NEW FOREIGN INVESTMENT

CURRENT FOREIGN INVESTMENT A number of large European and Canadian banks have been involved in both project and trade finance deals since the early 1990’s. Heath Lambert and Lloyds of London have been involved in the re-insurance of certain Cuban insurance risks.
There is a massive need for project and infrastructural debt financing. This is a major strategic area for attracting foreign investment. The Cuban Central bank will facilitate visits from interested parties. During 2006/7 it was reported that both NCB and CariFin were withdrawing capital which had previously faciliated trade finance. This is an area which has generated high returns over the past 5-10 years and may present a good opportunity.
Tourism
OPEN TO NEW FOREIGN INVESTMENT

Foreign groups have operating contracts to manage approx 44% of total rooms in Cuba. They are also often involved in the building and refurbishment of the hotels they subsequently manage, generally making upfront payments to cover at least part of these expenses. Other foreign involvement in the sector includes many smaller travel agents and representatives who are based in Cuba as well as the major airlines that offer services to Cuba.
The Cuban tourism ministry is keen to attract further foreign investment for various hotel developments throughout the country. There has been some speculation that the US travel ban may be eased or lifted in the next 1-2 years which would generate significant additional visitor numbers and encourage the roll out of additional hotel capacity. In general Cuban authorities prefer to work with larger foreign companies and sometimes require that a group builds hotels outside of Havana / Varadero area first.
Investment funds
OPEN TO NEW FOREIGN INVESTMENT

CURRENT FOREIGN INVESTMENT There are a number of investment funds and other investment vehicles which invest in Cuban fixed income debt as well as equity investments. Funds which have existing operations in Cuba include Leisure Canada, Ceiba Finance (Guernsey registered) and Coral Capital (UK registered). Interest has also been reported by a German fund - Kuba Investments.
In principal new investment funds would be welcome to establish a presence within Cuba. There are various projects at different stages which are looking for financing / investment. As with any foreign direct investment made in Cuba there is a necessary approval process to go through with the Cuban authorities.
Light Industry
OPEN TO NEW FOREIGN INVESTMENT

There have been many JVs formed in this sector including Empresa Cubana de Gas (bottled LPG gas), Buscar S. A. (bus assembly), MCV Commercial S. A. (Mercedes dealership and facility), TEMBEC S. A. (paper production), Suchel-Lever (cosmetics), Los Portales (soft drinks), as well as many different co-operative production agreements.Investment from the foreign shareholder varies according to the particular project from US$ 2-20 million.
There are a number of smaller projects which are looking for investment in this area. Priorities include glass, paint and rubber (tyres). Some existing investors may also be looking at an exit route.
Biotechnology
OPEN TO NEW FOREIGN INVESTMENT

GlaxoSmithKline YMB and several other biotech firms have signed agreements to develop certain drugs with Cuban biotech entities (CIMAB S. A. and CIGB).Additionally Cuba has signed several agreements to manufacture different treatments internationally including in Iran, Brazil, China and most recently in India with India’s Biocon Biopharmaceuticals Ltd.
This is a priority area which has received a great deal of attention since the mid 1990’s. This sector remains very much open to new investors although the investment model developed by the Cuban institutions has been seen as too rigid by certain overseas pharmaceutical companies.
Software development
OPEN TO NEW FOREIGN INVESTMENT

A new software export industry was inaugurated in 2002, since this time several agreements have been signed with overseas companies.
This are is open to foreign investment and might offer an attractive opportunity for outsourcing software development which has a Spanish component.
Other mining
OPEN TO NEW FOREIGN INVESTMENT

There have been reports of a number of smaller mining projects which have received approvals recently and which are at various stages of development. These include gold, silver and lead projects.
Cuba does have some good mineral resources, although apart from nickel the deposits tend to be on a relatively small scale.
Representation offices
OPEN TO NEW FOREIGN INVESTMENT

There are hundreds of representation offices based in Cuba, which are registered with the Chamber of Commerce. These offices generally try and secure sales for the mother company and have varying levels of office infrastructure, personnel and investment. Some of the more significant investors include the holders of the Hyundai, Kia, Audi and Peugeot franchise.
It is relatively complicated and time consuming to establish a representation office within Cuba. In general the Cuban authorities are keen to attract branches of larger offices and have put in place certain minimum revenue turnovers to discourage very small enterprises.
Heavy Industry
PRIORITY SECTOR—LIMITED OPPORTUNITIES

Sherritt International has invested over US$ 500 million to develop the Pedro Soto AlbaMoa nickel mine. Several Chinese state-owned entities have expressed an interest in the development of other nickel projects requiring investment of US$ 500 million—US$ 1 billion. Early in 2007 it was reported that a Venezuelan company had taken over the interest in the development of the Las Camariocas nickel plant. Cementos Cienfuegos S. A. is a JV involved in cement production which has involved significant foreign investment.
There are some unexploited reserves existing in Cuba (which has one of the world’s largest nickel reserves), these would require a very large level of investment of several hundred million US$. There remain opportunities for foreign investment in both steel and cement plants.
Telecommunications
LIMITED OPPORTUNITIES

Telecom Italia is a shareholder in ETECSA, the national telecoms company which has a monopoly over fixed, mobile and internet communications in Cuba. Recently another (non Cuban) state owned entity has been reported as taking a participation in the company.
No new FDI sought.
Tobacco
LIMITED OPPORTUNITIES

CURRENT FOREIGN INVESTMENT In 2000 Altadis, a Spanish-French company purchased 50% of Habanos S. A. (which makes and distributes hand-rolled Cuban cigars).Brascuba S. A. is a JV with BAT and produces most Cuban cigarettes.
None at present in terms of manufacturing. Habanos / Altadis are always looking to develop the distribution and marketing side including the relationship with Casa del Habanos franchisees worldwide.
Brewing and Rum
LIMITED OPPORTUNITIES

Cervecería Bucanero S. A. is a JV which manufactures most Cuban beer. Investment from the foreign shareholder is +US$ 100 million. Havana Club S. A. is a JV with Pernod-Ricard group, which has the rights to manufacture and distribute this rum worldwide. (Although not in the US due to a legal dispute).
While the current foreign entities are involved no further investment opportunities are foreseen.
Real Estate
VERY LIMITED OPPORTUNITIES

Certain purpose-built new apartment buildings were opened to foreign investment and ownership in 1995. In April 2000, the opening of the sector was suspended and Cuban partners in existing projects in the capital, Havana, bought back unsold units. There are two primary JVs involved in commercial real estate. These are Inmobiliaria Monte Baretto S. A. and Inmobiliaria Aurea S. A. , both with foreign shareholders, which have built and refurbished respectively the MiramarTradecentre and La Lonja del Comercio for commercial rental of office space.
Opportunities in the residential market are extremely limited now to the purchase of properties purchased by other foreiegners. One of the shareholders in the largest commercial real estate project (Monte Baretto) recently consolidated its holding and is considered unlikely to sell this any time soon.

Cuban Economy (including Fdi)

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