What does it finance?

- Human Resources: salaries of employees and of other professionals associated with the project’s activities, and others.
- Operational expenses directly associated to the project execution: administrative and office expenses, supplies, housing, insurances, promotion, flight tickets, and others.
- Investments: acquisition of fixed assets, technological equipment, computers, investments directly related with the project, and others.

Results show that the 13 cities evaluated in 2008 have since improved in at least one of the areas measured. The eight cities benchmarked for the first time also show good practices. Neiva was the fastest reformer. Thanks to reforms in business start-up and property registration, it jumped from the bottom ranking in 2008 to 11th among the 21 cities. Manizales and Pereira continue to rank high on the ease of doing business by simplifying commercial regulations across the board.

“Colombia’s progress in regulatory reform at the local level is an important step toward expanding business opportunities throughout the country, advancing our shared goal of creating jobs and alleviating poverty. IFC will continue to help local governments implement further reforms,” said Rachel Kyte, IFC Vice President of Business Advisory Services.

Doing business is easiest in Manizales, Ibagué, and Pereira; more difficult in Cali and Cartagena. So there is still room for reform. But the good news is that cities wanting to improve their practices need not look far: the country has good, practical models to draw on.

Some changes are easy to implement. For example, six of the 21 cities still require the certificate of land use to start a business, even though it was abolished by a national decree in 2008. Other changes may be more challenging. While civil courts have reduced their case backlogs, enforcing a contract in Colombia still takes 833 days on average, twice as long as in Peru or Mexico.

Doing Business in Colombia 2010 studies business regulation from the perspective of a small to midsize domestic firm. The report covers 21 cities—Armenia, Barranquilla, Bogotá, Bucaramanga, Cali, Cartagena, Cúcuta, Ibagué, Manizales, Medellín, Montería, Neiva, Pasto, Pereira, Popayán, Riohacha, Santa Marta, Sincelejo, Tunja, Valledupar, and Villavicencio. It benchmarks six regulatory areas—starting a business, dealing with construction permits, registering property, paying taxes, trading across borders, and enforcing contracts.

The report was produced by the World Bank Group in partnership with Universidad de los Andes and the Private Council on Competitiveness. To ensure sustainability, the methodology is being transferred to a local strategic partner. The project was sponsored by the National Planning Department; the Ministry of Trade, Industry, and Tourism; the Colombian Confederation of Chambers of Commerce; the U.S. Agency for International Development; and the Swiss State Secretariat for Economic Affairs.

For more information, please visit www.doingbusiness.org/colombia and www.doingbusiness.org.

Industry forums will be held by invitation only on July 19th in Orlando, FL, July 26th in Tampa, FL and August 19th in Miami, FL. “South America, more specifically Brazil is experiencing an economic boom currently,” states Danna Olivo. “Partnership opportunities are needed and welcomed for AEC services, products and technology solutions throughout the entire continent.”

Ms Olivo, stated that the work in South America extends to more than just Brazil for the upcoming International events. Chile is gearing up for more than $36 billion in reconstruction work as a direct result of the recent earthquake encountered. This work will include hospitals and clinics, schools and infrastructure repairs. DAVNA will be traveling to Chile to meet with industry representatives and key decision-makers in June to identify specific needs. If interested in reconstruction opportunities in Chile, firms should contact Ms Olivo at 407-405-6410.

Firms interested in more information on work in South America should contact Ms. Olivo at 407-405-6410 or dolivo(at)davna.com.

Overall deal volume remained fairly stable in 2009, with 369 deals slightly topping the 350 seen in 2008. Deal value dropped to US$18.7bn in 2009 from 2008’s US$21.3bn. Private equity activity was also down, accounting for only 11% of deal values, compared to an average of 27% over the previous five years.

PwC’s ‘Branching Out 2009 Annual Review’, which studies mergers and acquisitions (M&A) in the FPP sectors showed that continued tight credit conditions and low valuations cast an overall damper on FPP transaction activity, particularly in North America, where deal values dipped to around US$1bn and the focus shifted to restructuring high debt levels with a total face value reaching US$17.5bn.

Already-modest deal values in Asia-Pacific were slightly down in 2009, although deal volume stayed solid, largely due to interest in timberlands. The notable bright spot globally was Latin America, where pent-up demand and a quicker recovery helped spur an unprecedented level of deal activity, accounting for around two-thirds of global deal value, up from 5% in 2008. Two of the regions’ biggest players, Votorantim Celulose e Papel (VCP) and Aracruz, merged in a deal value at close to US$8bn to form Fibria, the world’s largest pulp company by some margin.

Read the PricewaterhouseCoopers report here.

The white paper, Entrepreneurship and innovation: the path to growth in Latin America, found that entrepreneurs are an especially powerful and growing force in regional business.  In particular, Colombia, Peru and Chile have some of the top rates of high-growth-potential entrepreneurs in the world.  Drawing on academic research, leading business minds in the area and real-world experience, the report explores the strides Latin America has made and continues to make with respect to innovation.  The full report can be downloaded at http://www.ey.com.

“In tough economic times, entrepreneurship and innovation are more important than ever, especially in Latin America,” said Turley. “In some respects, it’s the best time to launch or grow a business in the region.  These new businesses will further cement Latin America’s status as a significant source of growth in the global economy.”

Latin America emerged relatively unscathed from the recent economic crash, despite the collapse of so many commodity prices and the global credit freeze. Part of this performance was a reflection of Latin America’s newfound sophistication, gained from its experiences over the past 15 to 20 years. Trade relationships have diversified as well, and now include most of the world, particularly China.

The region’s performance during the economic crisis, with just a few exceptions, marked a coming of age, nearly as much as it did for Asia. Increasingly, this market of 550 million is getting the respectful attention it deserves.  One in particular – Brazil – is increasingly seen as a power in its own right.

To create more high-growth entrepreneurs, however, reforms are needed in many markets that tackle not only regulation and taxation, but reinvention of financial support systems for entrepreneurs that don’t create long-term dependency.  Among these recommended reforms:

• Provide less government money
• Consider simplified and more effective regulation
• Publicize entrepreneurial role models
• Create deeper “ecosystems,” allowing companies a greater ability to subcontract various parts of the business
• Encourage women entrepreneurs

The white paper includes an in-depth Q&A with noted economist and author C. Fred Bergsten, Director of the Peterson Institute for International Economics, as well as interviews with other exceptional entrepreneurs in the region.

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Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

This news release has been issued by Ernst & Young LLP and Ernst & Young Audit Ltda., member firms of Ernst & Young Global Limited that provide services to clients in the US and Colombia, respectively.

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Gap Adventures and Planeterra will now promote to its customers those Costa Rican tourism businesses that have either achieved a Tourism Sustainability Certificate awarded by ICT (the Costa Rican Tourism Board) or that are part of the Rainforest Alliance’s Sustainable Tourism program.
With this agreement, Gap Adventures and Planeterra join 40 other international tour operators in Europe and North America that are now working with the Rainforest Alliance (http://www.rainforest-alliance.org).
Founded in 2003 by Gap Adventures, Planeterra (http://www.planeterra.org/) is a nonprofit organization dedicated to sustainable community development through travel. It has been charged with coordinating the implementation of new and existing Gap Adventures sustainability initiatives, including this significant step toward formalizing the program designed to further green the Gap Adventures supply chain, including hotels and local suppliers used on Gap Adventures trips.
This agreement with Gap Adventures and Planeterra will have a major impact, as Gap Adventures is considered to be the largest independent adventure travel company in the world. It will help us increase the number of travelers who will become aware of Costa Rica’s conservation efforts. It will also increase business opportunities for those hotels that are truly committed to achieving sustainability, said Cristina Suhr, Marketing Manager for the Rainforest Alliance.
As part of this partnership, Gap Adventures and Planeterra guarantee that at least half of the businesses included in their tourism packages to Costa Rica are working toward sustainability goals. In addition, the two companies will survey tour guests upon their return from vacation to evaluate their overall experience. The information obtained will be analyzed and then forwarded to the Rainforest Alliance.
The Gap Adventures website (http://www.gapadventures.com/) will soon feature a statement about its commitment to sustainability as well as stories and testimonials from clients who have visited sustainable tourism businesses in Costa Rica.
As we continue to grow, it is increasingly important to work with the Rainforest Alliance to keep the focus on our original goal of offering innovative ways of showing people a sustainable world. It is even more relevant to continuously assess how we can do things better. Working with the Rainforest Alliance is a big step in that direction, explained Bruce Poon Tip, CEO of Gap Adventures.
As part of the agreement, the Rainforest Alliance will provide the tour operator with contacts for all of its colleagues in Costa Rica who have signed commitments to sustainability as well as a list of certified tourism businesses or those that are implementing good sustainable management practices. In addition, the Rainforest Alliance will periodically organize research trips to Costa Rica for trip development representatives from Gap Adventures and Planeterra so that they can familiarize themselves with new destinations and businesses that might become part of future travel packages and community voluntourism projects the companies offer.

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Rainforest Alliance works to conserve biodiversity and ensure sustainable livelihoods by transforming land-use practices, business practices and consumer behavior. For more information, visit http://www.rainforest-alliance.org.

Gap Adventures is a world leader in adventure travel offering small group adventures on all seven continents and beyond serving more than 100,000 travelers annually. The award-winning trips, which focus on culture, nature and active travel, are ideal for those with a sense of exploration people who want to leave the beaten path and authentically immerse themselves in a local culture or environment to experience the real world in a sustainable manner. For more information, visit: http://www.gapadventures.com or call 1-800-708-7761.
Planeterra is a global non-profit dedicated to sustainable community development through travel. Founded in 2003 by Gap Adventures, Planeterra evolved out of a long history of travelers committed to finding ways to give back to the people and places they visit. Planeterra selects the projects and works with them to arrange voluntour travel programs worldwide.

For information on Planeterra’s year-round voluntour programs visit:
http://www.planeterra.org/pages/voluntours/4.php or call 1-416-260-0999.