Negotiations for US$1 billion in Caraballeda, Venezuela

With the attendance of 200 private business leaders from Europe, North America, Asia and the Andean Group, a meeting will be held in Caraballeda, Venezuela, to promote foreign investments in Bolivia, Colombia, Ecuador, Peru and Venezuela. The meeting will take place from November 20 to 22 in the Hotel Macuto Sheraton.

The event is part of the Investment Promotion Program which is being promoted jointly with the UNIDO, UNDP, and with the cooperation of the European Economic Community.

The purpose of the seminar is to promote international investments in projects of interest for the five countries, and negotiate joint ventures and other forms of business association. The most important aspect is that the meeting will facilitate direct contact between the Andean business sector and its European, Asian and North American counterparts. Participants will analyze 139 projects whose study and viability have been accepted after prior promotion through the offices of the UNIDO Investment Promotion Services in Cologne, Milan, Paris, Salem, Tokyo, Vienna, Warsaw, Washington and Zürich.

Finding foreign partners to invest in developing countries is not easy. It requires a process of identification of projects through direct relations with the companies, followed by standardizing preparation of projects through access to databanks on technology, market profiles and industrial information. Lastly - and this is the purpose of the Caraballeda meeting - direct meetings are held between the business executives of both countries to negotiate execution of the promoted investments.

On this occasion, projects will be negotiated in the industrial, agro-industrial and tourism sectors for an investment amount of approximately US$1 billion. Venezuela will present 46 projects (investment amount: US$510 million); Bolivia, 28 (US$83 million); Colombia 21 (US$105 million); Ecuador 16 (US$183 million); and Peru 16 projects (US$83 million).

The industrialized countries will be represented by 65 companies and 15 financial and promotion institutions from the following countries: Germany, Austria, Canada, Colombia, Spain, United States, France, Holland, Italy and Japan. European business leaders will predominate at the event, especially French, German, Italian and Spanish. Japan will have six representatives.

For the Andean Group, 46 companies and 19 financial institutions will attend. Venezuela will have the most numerous delegation with 48 representatives.

The task of promoting investment requires countries to offer clear and stable ground rules, as well as the institutional aspects. The Andean Group has taken the necessary steps to generate confidence, which both local and developed country investors require, by applying similar macroeconomic policies which include opening to foreign capital, tariff advantages and fiscal policies in line with the free market economy.