Investor Presentaiton
Ramp up in foreign direct investment and new tax incentives for
fixed capital formation underpin the construction sector
Strong increase in fixed capital investment of 18% in real terms is expected in 2021
UPM's Pulp Mill
☐
UPM will invest a total of US$ 3 billion (5.5% of
GDP) to build a 2.1 million-tonne greenfield
eucalyptus pulp mill in central Uruguay.
Proceeding according to schedule. More than
3,000 people are currently working at the
construction site.
New tax breaks for big-ticket construction projects and
social housing
✓ Recent changes to the General Investment
Promotion Regime (COMAP) providing more tax
incentives encouraging employment creation
(housing, offices and urbanization construction)
and clean technologies.
✓ Foreign investors
are granted the
same
incentives as local investors: there is no tax
discrimination or restrictions for transferring
profits abroad.
Investment projects presented under COMAP regime
(Cumulative)
Central Railway Project
▪US$ 1 billion investment in a Central Railway
that will run from the city of Paso de los Toros
to the port of Montevideo (273 km long).
■Public-Private-Partnership (PPP) modality.
Source: Ministry of Economy and Finance of Uruguay.
3,000
2,500
2,500
Total intended investment (in US$
million)
2,000
2,000
Number of projects (RHS)
1,500
1,500
1,000
1,000
500
500
Jan-19
Jul-19
Jan-20
Jul-20
Jan-21
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