The path towards development
The Bolivian government has recognized the importance of providing the country with the best possible infrastructure to create the conditions for economic growth and to reach out to its neighbors Brazil, Argentina and Peru. One focus is to build new bridges, which cost between USD 30 million and USD 40 million each, due to the magnitude of the country’s rivers, especially in the Beni region. Beni and Pando, which previously tended to be forgotten, hold vast amounts of natural resources and these regions are now being integrated through a new network of roads which is currently under construction. Over the next five years, around USD 11.000 million are earmarked for roads, which Bolivian as well as Spanish, Italian and possibly North American companies will be building. Railways are another focus, one major initiative being the “bi-oceanic railway” in which German and Chinese companies are showing great interest. It seems to be the continent’s only viable railway, since 95% of tracks already exist, whereas other projects imply starting from scratch. Bolivia is showing itself to be central, not only to the continent, but also to the perspectives for publicprivate partnerships in the region. Improving existing airports and possibly building new ones is another focal point, with the one in Uyuni already operating, the one in Copacabana soon to be finished, and the one in Sucre pinpointed for expansion. Once more, the city of Santa Cruz stands out from the point of view of infrastructure, being situated less than three hours’ flight away from the most important Latin American capitals and 6 hours from Miami. It boasts the lowest costs in the region in terms of energy, transport, fuel and labor. It can also be considered as Bolivia’s industrial and economic capital. On 33% of the country’s surface, it produces 28% of all exports and contributes almost 30% to GDP. A study by CAINCO (the Santa Cruz Chamber of Commerce), evaluating the city’s competitive advantages, revealed that simply in terms of the price of electricity and gas it is more competitive than any other department of Bolivia and other countries in the region. The cost of labor and the fiscal pressure are equally low. There is also a culture of excellent relations between entrepreneurs and the local government. Santa Cruz is ten minutes away from Viru Viru international airport, has a railway, a gas network, good telecommunications and lies in the “bi-oceanic corridor” linking the country’s three main cities Santa Cruz, Cochabamba and La Paz. Property development has been one of the pillars of economic growth in Santa Cruz. There has been a remarkable expansion of residential estates and housing projects. Grupo
Lafuente’s industrial complex Parque Latinoamericano Industrial (PILAT) is leading this trend. The group’s two present projects, the PILAT complex and the Nueva Ciudad, are high-intensity investments. PILAT and the group’s other projects consolidate the concept of a productive and self-sustaining city. PILAT offers plots for 1.500 industrial companies, with several plot-sizes available, from 1.750 square meters to 150.000 square meters for small, medium and large enterprises. Altogether this project represents an investment of around USD 180 million.