Based on an analysis of key power sector indicators and economic factors, the top 5 countries for potential business opportunities in Latin America are Brazil, Mexico, Argentina, Chile, and Colombia. Brazil represents the largest opportunity due to its large economy and power sector, while Mexico, Argentina, Chile and Colombia also show strong growth potential based on factors like GDP, electricity consumption, existing infrastructure, and government investment priorities in expanding power generation and transmission capabilities.

1. TULS
Management
Business Opportunities in
Latin America

2. Our Values
To promote
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wealth sharing culture
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Bonding with every stakeholder to achieve goals,
y
based on Win-Win relationship.

3. We are for yoU
Power Sector

4. Our Competency in Construction Sector
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6. Latin America
Those countries in the Americas and the Carribean which speak Latin-derived
languages, mostly Spanish and Portuguese; Mexico, Central America ...
Countries in Latin America
Chile Mexico Argentina Venezuela
Uruguay Panama Costa Rica Brazil
Peru Dominican Republic Colombia Ecuador
El Salvador Gautemala Paraguay Bolivia
Honduras Nicargua Haiti Cuba

7. Korea/Japan
12.0%
US EU
28.0% 30.3%
Emerging
Asia
9.1%
China Latin am
5.0% 4.7%
Latin America’s share of the world output is small when compared to Asia

8. Brazil, Mexico, Argentina, Venezuela and Chile Lead the Growth

9. Projected growth in electricity demand of 4.8% p.a.
•100,000 MW needed in next ten years (current capacity:
250,000 MW)
•Annual investment of about US$20 billion required for related to
generation, transmission and distribution
•Investment requirements still large under lower demand scenarios
Concern over supply gap
•Load shedding in some countries
•Other countries face prospect of future supply deficit
Concern over increasing cost of power supply
•Capital costs (hydro, wind, etc.)
•Fuel costs (thermal, etc.)
Source - World Bank Presentation Dec 2008

10. Initial Screening
based on Power Sector Demand Indicators
Comparing
GDP - Economic Growth
with
Electricity Consumption

11. (Based on GDP and Economic Growth)
Countries GDP Per Capita Annual Economic
2008 (USD ) Growth 2007 (%)
Chile 14,688 5.1
Mexico 14,581 3.2
Argentina 14,354 8.7
Venezuela 12,933 8.4
Uruguay 12,707 7.4
Panama 11,255 11.5
Costa Rica 10,832 7.3
Brazil 10,298 5.4
Peru 8,584 8.9
Dominican Republic 8,558 8.5
Colombia 8,336 7.7
Ecuador 7,518 2.5

12. Top 12 Countries
(Based on Electricity Consumption)
Rank Country Electricity Consumption
(GWh)
1 Brazil 368500
2 Mexico 183300
3 Argentina 88980
4 Venezuela 73360
5 Chile 48310
6 Colombia 38910
7 Puerto Rico 23210
8 Peru 22590
9 Ecuador 8855
10 Dominican Republic 8791
11 Costa Rica 7776
12 Uruguay 7030
Source :- US Department of Commerce

13. Top 9 Countries
(Initial Screening Based on Common in both parameters)
Rank Country
1 Brazil
2 Mexico
3 Argentina
4 Venezuela
5 Chile
6 Colombia
7 Peru
8 Ecuador
9 Dominican Republic
Now, we shall analyze above Short listed countries ……

14. Brazil
Population 190 Million
Power Sector
Gen. Installed capacity (2006) 96,294 MW
Country is interconnected by 80,000 km of HV lines
40,000 km of HV circuits until 2012
Distribution losses (2005)14%
Key indicators 08 09 10 11 12 13
Real GDP growth (%) 5.3 2.7 3.9 4.1 4.0 4.1
Consumer price inflation 5.8 6.3 4.2 3.7 3.7 3.7
(av; %)

15. Major exports 2007 % of total Major imports 2007 % of total
Transport equip. & Part 12.5 Machinery & elec. equip. 26.1
Metallurgical products 11.6 Chemical products 15.4
Soybeans, meal &oils 8.2 Oil & derivatives 16.6
Chemical products 1.9 Transport equip. & parts 12.0
Leading markets 2007 % of total Leading suppliers 2007 % of total
US 15.8 US 15.7
Argentina 9.0 China 10.5
China 6.7 Argentina 8.6
Germany 4.5 Netherlands 0.0

16. Mexico
Population – 109 Million
Power Sector
Gen. Installed capacity(2006) – 49, 000 MW
Transmission -43,000 km high voltage lines
45,000 km medium voltage lines and
600,000 km Low voltage distribution lines
Distribution losses (2005)14%
Key indicators 2007 2008 2009 2010 2011 2012
Real GDP growth 3.3 2.3 1.6 3.4 3.8 3.6
(%)
Consumer price 4 5.2 5.2 3.6 3.4 3.3
inflation (%)

17. Major exports 2007 % of total Major imports 2007 % of total
Manufactures 80.7 Intermediate goods 72.9
Maquiladora 44.7 Maquiladora 34.2
Oil 15.8 Consumer goods 14.8
Agricultural products 2.8 Capital goods 12.3
Leading markets % of total Leading suppliers % of total
2007 2007
US 82.1 US 49.6
Canada 2.4 South Korea 10.5
Spain 1.5 China 5.8
Germany 1.3 Japan 4.5

18. Argentina
Population – 40 Million
Power Sector
Gen. Installed capacity(2006) – 24,000 MW
Transmission Lines
500 kV 9,100 km
220/132 kV 12,000 km
Distribution losses (2005)13.6%
Key indicators 2007 2008 2009 2010 2011 2012
Real GDP growth 8.7 6 3.5 3.8 4.7 4.5
(%)
Consumer price 8.8 9.3 10.4 8.7 7.7 7.4
inflation (av;
%)

19. Major exports 2007 % of total Major imports 2007 % of total
Processed 34.4 Intermediate goods 34.7
agricultural
products
Manufactures 31.1 Capital goods 24.2
Primary 22.3 Consumer goods 11.6
Fuels&energy 12.2 Fuels 6.3
Leading markets % of total Leading suppliers % of total
2007 2007
Brazil 17.4 Brazil 31.7
China 9.6 US 14.4
US 7.8 China 8.7

20. Venezuela
Population – 26 Million
Power Sector
Gen. Installed capacity(2005) – 22,100 MW
Distribution losses (2005)13.6%
Key indicators 2008 2009 2010 2011 2012 2013
Real GDP 5.4 2.7 1.9 2.7 3.3 1.8
growth (%)
Consumer price 31 35.7 33.3 28.8 27.9 25
inflation
(av; %)

21. Major exports 2007 % of total Major imports 2007 % of total
Oil & gas 90.4 Raw materials 44.5
&intermediate goods
Other 9.6 Consumer goods 24.5
Capital goods 31.0
Leading markets % of total Leading suppliers % of total
2006 2006
US 53.5 US 29.2
Netherlands Antilles 8.8 Colombia 9.6
China 3.7 Brazil 7.9

22. Chile
Population – 16.76 Million
Power Sector
Gen. Installed capacity(2005) – 11,980 MW
Distribution losses (2005)6.52%
Key indicators 08 09 10 11 12 13
Real GDP 3.9 2.8 3.8 5.1 5.4 5.5
growth (%)
Consumer price 8.8 6.4 3.6 3.1 3 3
inflation(a%)

23. Major exports 2007 % of total Major imports 2007 % of total
Copper 55.5 Intermediate goods 57.4
Cellulose 4.5 Capital goods 15.3
Fresh fruit 4.1 Consumer goods 19.2
Leading markets % of total Leading suppliers % of total
2007 2007
China 14.8 US 15.5
US 12.4 China 10.4
Japan 10.5 Brazil 9.6
Netherlands 5.8 Argentina 9.2

24. Colombia
Population – 44 Million
Power Sector
Gen. Installed capacity(2005) – 13,400 MW
Distribution losses (2005)16.00%
Key indicators 2008 2009 2010 2011 2012 2013
Real GDP 2.8 1.8 2.6 3.6 4 3.9
growth (%)
Consumer price 7.1 6.1 4.6 4.4 4.1 4
inflation
(av; %)

25. Major exports 2007 % of total Major imports 2007 % of total
Petroleum & products 24.4 Intermediate goods 43.1
Coal 11.7 Capital goods 36.3
Coffee 5.7 Consumer goods 20.7
Leading markets % of total Leading suppliers % of total
2007 2007
US 30.4 US 28.6
Venezuela 12.3 Brazil 8.6
Ecuador 5.4 Mexico 8.5

26. Peru
Population –29 Million
Power Sector
Gen. Installed capacity(2006) – 6,400 MW
Distribution losses (2005)11.00%
Key indicators 2007 2008 2009 2010 2011 2012
Real GDP growth 9 7.9 6.6 5.8 5.3 5
(%)
Consumer price 1.8 5.1 4 3.5 3.2 2.9
inflation (av;
%)

27. Major exports 2007 US$ m Major imports 2007 US$ m
Copper 7,241 Intermediate goods 10,416
Gold 4,157 Capital goods 5,885
Fishmeal 1,456 Consumer goods 3,191
Leading markets % of total Leading suppliers % of total
2007 2007
US 18.4 US 21.7
China 11.5 China 11.5
Switzerland 7.9 Brazil 10.4
Canada 6.8 Ecuador 6.3

28. Ecuador
Population –14 Million
Power Sector
Gen. Installed capacity(2006) – 12,000 MW
Distribution losses (2005)13.6%
Key indicators 2008 2009 2010 2011 2012 2013
Real GDP growth 4.2 1.6 1.8 2.2 2.6 3
(%)
Consumer price 8.4 5.6 4.5 4.4 3.4 3.4
inflation (av;
%)

29. Major exports 2007 % of total Major imports 2007 % of total
Oil&oil products 57.8 Raw materials 29.0
Banana&plantain 9.1 Capital goods 22.8
Shrimp 4.2 Consumer goods 20.1
Canned fish 4.2 Fuel & lubricants 18.8
Leading markets % of total Leading suppliers % of total
2006 2006
US 53.6 US 21.4
Peru 8.2 Colombia 12.3
Colombia 5.6 Brazil 6.8
Chile 4.4 China 0.0

30. Dominican Republic
Population – 9 Million
Power Sector
Gen. Installed capacity(2006) – 3,394 MW
Distribution losses (2005) 42.5%
Key indicators 2008 2009 2010 2011 2012 2013
Real GDP growth 5.5 3 4.5 4.8 4.8 4.8
(%)
Consumer price 12.2 9.6 7.2 5.6 5.5 5.5
inflation (av;
%)

31. Major exports 2007 % of total Major imports 2007 % of total
Free-trade zones 63.0 Fuels 23.6
Ferro nickel 15.7 Free-trade zones 20.0
Sugar&derivatives 1.8 Consumer goods 25.9
Cocoa&derivatives 1.3 Raw materials 17.9
Leading markets % of total Leading suppliers % of total
2007 2007
US 67.2 US 45.1
Belgium 3.8 Venezuela 8.1
Finland 3.4 Colombia 6.4
UK 2.7 Mexico 5.7

32. Screening of Top 5 Countries
based on
Power Equipment Demand Drivers & Business Factors
 Economic Factors of the Country
 Countries Investment in Power Sector
 Imports Potential for Targeted Product Group
 Distribution Losses (replacement demand of Old equipment)
 Ease of Doing Business

33. Economy Ease of Doing
Business Rank
Chile 40
Mexico 56
Peru 62
Dominican Republic 97
Argentina 113
Brazil 125
Ecuador 136
Venezuela 174
Source - The World Bank Group

34. Brazil Electric Power Sector
Electric Power Equipment and Services: Brazil plans to invest over $67
billion over the next 10 years.
The Brazilian Development Bank (BNDES) should invest at least 10 billion
Brazilian reals (US$ 4.3 billion) in the electric sector this year, although
the disbursements may rise as high as 12 billion (US$ 5.2 billion). (News
20th Jan 2009)
Other Key Figures
World's 7th largest consumer market
50% of South American territory
World’s 5th largest population (180 million)
50% of South America’s effective consumption
Gateway to Latin America

35. (In US$ Million)
2005 2006 2007
Total Market Size 1,610 1,878 2,554
Total Local Production 1,000 1,100 1,300
Total Exports 38 52 86
Total Imports 648 830 1,340
Argentina has the third-largest power market in Latin America
One of the most competitive, deregulated power sectors in Latin America
Unveiled 21 billion USD in infrastructure megaplan (Nov 2008)

36. Mexico Electric Power Sector
(In US$ Million)
CFE will add 14.0GW new capacity in 2008-17
LyFc will add 761MW bew capacity in 2008-17
Cogeneration and self-supply projects will add another 2.49GW

37. Venezuela's national power company, Corpolec, plans to invest
$13.8 billion
USD up to and including 2014
Generate Additional 8,635 MW

38. (In US$ Million)
Between 2008 and 2012, there will be a surge in power generation
and transmission investment that will require foreign direct
investment and supplies up to an estimated $17 billion.

39. Mercosur or Mercosul is a Regional Trade Agreement (RTA) among
Argentina, Brazil, Paraguay and Uruguay founded in 1991 by the
Treaty of Asunción. Its purpose is to promote free trade and the fluid
movement of goods, people, and currency.
Full members Associate members
Argentina Bolivia
Brazil Chile
Paraguay Colombia
Uruguay Ecuador
Becoming full members Peru
Venezuela Observers
Mexico

40. Based on above the top 5 Countries in Latin America for
EMCO are
1. BRAZIL
2. ARGENTINA
3. MEXICO
4. VENEZUALA
5. CHILE

41. TULS Advantage
Our differentiating factors are highlighted as follows
Young, dynamic, experienced and multidisciplinary team
Strategic, systematic , cost saving & result oriented
approach.
Customized and continued Support
Technical, financial and international expertise.
Abiding standards of trust, ethics & sustainable growth.

42. TULS MANAGEMENT
G-14, Vijay Apartment III, Opp Bank of Baroda,
Waghbil, GB Road, Thane (W) 400607.
Phone : +91 22 2597 1089, +91 9004016785
Email : info@tulsgroup.com