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The public procurement systems of Costa Rica and Guatemala offer Colombian entrepreneurs in the metal working sector opportunities to take advantage of the Central American market.
Following an exploratory mission organized by PROCOLOMBIA, with 10 national companies and ANDI's Camara Fedemetal (Metal Industries Association), opportunities were identified not only to participate in government bids, but also to potentially win them.
According to Maria Claudia Lacouture, the visit led to the conclusion that " in Central America, they do not have a local industry capable of satisfying their needs. There are opportunities to take advantage of the trade agreement already in force with the Northern Triangle, and the recently signed agreements with Costa Rica and Panama, which will go into effect in the coming months." Among these opportunities, she highlighted the possibilities of bidding for the electricity sector, highways, sewage systems and garbage collection centers.
Meanwhile, Juan Manuel Lesmes, Director of ANDI's Camara Fedemetal, explained that the mission provided several lessons for taking advantage of the business possibilities. " It's important to think in terms of strategic alliances, both among ourselves, to provide volume and diversification, and with some local companies that are familiar with the internal modus operandi," he said.
As well as infrastructure needs, available resources also need to be taken into account. Guatemala plans to expand its electrical system with 23 hydroelectric power plants. In addition, construction will increase by 5% in 2014, according to a study by the Guatemalan Construction Association. Moreover, Costa Rica announced the need to double its energy generation capacity by 2021.
According to data from the Costa Rican Construction Chamber, the Costa Rican government has approved USD 1,500 for infrastructure works, of which USD 850 have already been disbursed by the Inter-American Development Bank on the condition that the bidding be international.
In view of this new development, the industrial conglomerate, Fanalca, will participate in the solid waste system management of five municipalities in southern Guatemala. " This consists of designing, building and operating a landfill and all its operating equipment. It also includes the collection process, with collection and compaction fleet, to manage the solid waste of five municipalities to the south of Guatemala city, where a population of 1.5 million inhabitants will be serviced," stated Andres Solano Forero, the company's Business Development Director.
Fanalca already has wide-ranging experience in the management of solid domestic waste and landfills in Latin America. The conglomerate was created in 1958 in Cali and currently has operations in eight countries and 20,100 employees. " Garbage is a critical issue in Guatemala, and as such, there is an imminent need. It's important to highlight the work of the recyclers there, and thus we saw an opportunity to participate in the government's public-private initiative. We also identified possibilities with the mass transport system, with which we also have a lot of experience. Specifically, it would be with Transmetro, to create two new major thoroughfares," Solano added.
There is also the case of Matrimol, a company from Bogota that is dedicated to manufacturing and commercializing electric insulators. " We see ourselves more as a solution to the concrete needs of the Central American market. For example, so that they don't have to change a whole power line because they are missing a part that we can make for them," stated Andres Sanchez, Sales Manager.
For the company, which already exports to Costa Rica, Trinidad and Tobago, El Salvador, Nicaragua, Venezuela, Ecuador and Chile, the Central American market " is interested in growing, and that's where we can all grow. The business deals are ripe for development."
" One important piece of advice for the Colombian companies participating in this process is to have patience and persistence, since Central American countries take their time in making these types of decisions. They have to go through a lot of approval processes," stated the PROCOLOMBIA president.
Opportunities Identified by PROCOLOMBIA in Central America
- Costa Rica: tools, iron and steel manufacturing, agricultural and industrial machinery, and metal working.
- El Salvador: tools, iron and steel manufacturing, and industrial machinery.
- Guatemala: tools, iron and steel manufacturing, agricultural and industrial machinery, and metal working.
- Honduras: tools, iron and steel manufacturing, agricultural and industrial machinery.
- Nicaragua: tools, iron and steel manufacturing, and industrial machinery.
- Panama: tools, iron and steel manufacturing, agricultural and industrial machinery, and metal working.
Information Regarding Tenders and Public Procurement
Costa Rica: www.mer-link.co.cr
Guatemala: www.guatecompras.gt/
