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December 14, 2016
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April 23, 2001
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August 4, 1948
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CLASSIFICATION RZSTRI CT:' 'D N FOR MAT Approved FNT CE15f COUNTRY Latin America SUBJECT Construction Activities PLACE ACQUIRED DATE ACQUIRED .~-r- U. S. C.. 31 AND EE. AS AMENDED. ITS TRANSMIS510N OR THE REVELATION OF ITS CONTENTS IN ANY MANNER TO AN UNAUTHORIZED PERSON 15 PRO- HISITEO BY LAW. REPRODUCTION OF THIS FORM IS PROHIBITED. NOW- EVER. INFORMATION CONTAINED IN BODY OF THE FORA MAY BE UTILIZED AS DEEMED NECESSARY NY THE RECEIVING AGENCY. SOURCE DOCUMENTARY DATE DISTR. 4 August 190 NO. OF PAGES 1 NO. OF ENCLS. (LISTED DELOW) SUPPLEMENT TO REPORT NO. USE OF TRAINED INTELLIGENCE ANALYSTS On file in the CIA Library is a copy of tin Ameri~ andi a r ct lo?lt Froarra , a 12-page pamphlet published in English by Igge feria Intergaci C atruc on, a McGraw-Hill magazine. The pamphlet summarizes major public and private construction projects in Argentina, Brazil, Chile, Colombia, Cuba, Mexico, Peru, and Venezuela. CLASSIFICATION 17 RESTRICTED Approved For Release 2001/11/21 : CIA-RDP80-00926A000500030005-0 includes: major projects plans and budgets public works expend itur M:r i rary Eight countries buy 93 % of U. S. exports of construction machinery and equipment to Latin America The countries are: Argentina, Brazil, Chile, Colombia, Cuba, Mexico, Peru and Venezuela These same eight Latin countries will spend at least 830 million $ for public works this year This report outlines the expanding construction program in Latin America's "Big Eight" When the important agents and importers, buyers and users of U. S. -made construction machinery and equipment in Latin America want to know about the latest products, methods and standards ... they read Ingenieria Internacional Con: truetion Approved1CIA-RDP80-00926A000500030005-0 Latin Ama~ica'~ EXPANDING construction program A McGRAW-HILL INTERNATIONAL PUBLICATION 330 WEST 42nd STREET, NEW YORK 18, N.Y. Latin American Branch Offices: Mexico City ? Rio de Janeiro ? Buenos Aire: Approved For Release 2001/11/21 : CIA-RDP80-00926A000500030005-0 LATIN AMERICA'S EXPANDING CONSTRUCTION PROGRAM Major Projects Plans and Budgets Public Works Expenditures Eight countries buy 93% of U. S. exports of construction machinery and equip- ment to Latin America. The countries are t Argentina, Brazil, Chile, Colombia, Cuba, Mexico, Peru and Venezuela. Here is a report on the construction program of those eight countries. Public Works Expenditures in 1948 The eight countries will spend at least 830 million $ for public works this year. This does not include, for the most part, private outlays for construction, or construction projects stimulated by foreign loans. Significant comparision to pre- war expenditures for component parts of over-all construction costs, -- i.e., trans- portation, hydraulics, building construction, etc. -- are presented herein where data are available. Private Building Construction The trend is up! One of the largest projects is a chain of hotels to be erected in 11 of Latin America's largest cities at a cost of $75,000,000. Plant construction projects in Mexico alone in the next three years will total more than $100,000,000. Major Pro cots The extent and varied nature of building construction in Latin America is indicated in this small list of major projectst Valsequillo Dam, near Veracruz, Mexico -- $292,000,000 Creole Petroleum Refinery, Amuay Bay, Venezuela -- $100,000,000 Ezeiza Airport, Buenos Aires, Argentina -- $70,000,000--- Rio Doce, mining development, Brazil --- $61,000,000 Steel Mil, Concepcion, Chile -- $58,000,000 Chimbote Mining Development, Peru --- $33,000,000 Carretera Central (Central Highway) Cuba, -- $12,000,000 Street paving, other construction, Bogota, Colombia -- 08,000,000 A DETAILED ANALYSIS OF CONSTRUCTION ACTIVITY IN LATIN AMERICA'S Approved For Release 2001/11/21 : CIA-RDP80-00926A000500030005-0 Approved For Release 2001/11/21 : CIA-RDP80-00926A000500030005-0 ARGENTINA . cy? ace Funds for Five-Year Plan: Report from Buenos Aires in Pebrua ~y, 1948, stated that an advance of $174 million had been made to different departments on account of works to be done under the Five-Year Plan. This includes $lC6 million to the Y.P.F. (State Oil Fields) for constructions, purchases and various expenses; 053 million in '" ovatios toai Miitid $ n vrousnsres; an15 million for the National Gas Adminis- '... anxaac Annual Con:structian Ex nddtures: Important among planned, annual exper:di- tures under Peron's Five-Year Plan are $27.5 millions for highways; 50 million for extension and improvement of railways; $22.5 million for public buildings; 011.5 million for port facilities; and $52 million for development of power resources. Pt'a, or Projects: Some of the principal major projects planned or under construction are: ?ro set ,Qcaion Estimated Cost Remax s (millions of dollars) RAULTCS Water Supply, drainage and sewer systems Greater Buenos Aires 150 Coastal Canal Puerto Nuevo to Parana de las Palmas 100 Las Pirquitae Dam Catamarca Province 12.5 Hydroelectric Plant Salto Grande on Uruguay River 25 RANSPORTATION Ezeiza Airport Buenos Aires 70 Vehicular tunnel with 6-lane highway Under Riachuelo River, Buenos Aires 25 Port Facilities Buenos Aires 42 Highways From Entre RiostNaucay- Paraucito; Gua.leguayehu- Federacion; Parana-Vials; 5 Parana-Basavilbaso Tong term project; some parts started. $25 million for Canal & X75 million for aqueducts Bids have been re- quested Potential cap. 500,000 kw. Said to be at least 1 yr. from coast. Uruguay to contribute 20-25p of cost Inc. 16-mi. highway; entire project planned for completion in 1950 part for May or June 1948 Bids to start in early 1946. To be spent over 5 yrs. Funds authorized by executive decree 1/48 Approved For Release 2001/11/21 : CIA-RDP80-00926A000500030005-0 Approved For Release 2001/11/21 : CIA-RDP80-00926A000500030005-0 b7 t;fiN` INA (Continued) Electrification Province of Buenos Aires 75 In designing stage Gas Pipe Line (1200 miles) Commodore Rivadavia to Buenos Aires 90 Should be completed in 1949 Steel Plant San Nicolas 100 Unconfirmed reports; may never be built. I'ublio Works Bw et; The allotment for Public Works and Communications - largest under the 1948 budget - amounted to 0150 million, nearly one-fifth of entire esti- mated disbursements, and triple the corresponding item for 1946. Much of the increase is said to be due to the greater emphasis being placed on power development prof acts. P blic Wprk and Ea isrment Plans This plan calls for five annual appropriations of approximately $54 million each, or a total of $272 million. Implementation begun on January 1, 1944, it remains in force until December 31, 1948. All public works of the Federal Government are included in the plan. More than one- half of the amounts spent in 1944 and 1945 was devoted to projects under the Ministry of Transportation and Public Works, the greater part being allocated to railway con- struction: $12 million in 1944 and 16 million in 1945, and to highways: $6.5 million in 1944 and 6 million in 1945. Not to be confused with the Public Works budget allocation., this plan is financed by means of proceeds from exchange operations, dividends received by the Federal Govern- ment from mixed corporations and quasi-governmental organizations of an industrial or commercial nature, credit operations, etc. Major Pro:loote. Some of the major projects planned or under construction are: Approved For Release 2001/11/21 : CIA-RDP80-00926A000500030005-0 Approved For Release 2001/11/21 : CIA-RDP80-00926A000500030005-0 BRAZIL (Continued) Pro eot Location Estjwated Cost (millions of dollars) Remarkri g2BLUICS Electr. Power Plants City & State of Rio de Janeiro 160 I Iyd.roelectric and thermo-electr, plants State of Rio Grande do Sul 34.6 Hydroelectric plant; Irrigation Syst. Paulo Afonso Falls, Sao Francisco River 22 Itabira iron ore deposits, inc.. hydro- e.leotr, plants, trans- Rio Doce Valley 60..8 portation facilities, eto, National Alkali Plants and installations Oil Refinery Capuava, near 30 EWSPMTATION Santos Aviation Training Sao Jose dos Campos 15 Center Subway Rio do Janeiro 15 Airport Sao Paulo 5 Highways Rio-Porto Alegre, 20 Rio-Bahia, Porto Alegre-Uruguaina, Porto Alegre-Jaguarao Expected to be completed in 1950; negotiations for loan underway 6/47 Fed. Govt. to be re- sponsible for p1O Million Company capitalization 10/45; said not to be operating yet. Representing $20.5 millions from Exp-Impt. Bank & Brazilian Govt. and $40.3 million capitalization Representing 7.5 million from Exp. -Impt . Bank and $5.4 million oapitalization Expected to be under- way by March, 1948 Planned for completion in 'Si. Under study 9/47 Costs extend over period of 5 years Approved For Release 2001/11/21 : CIA-RDP80-00926A000500030005-0 Approved For Release 2001/11/21 : CIA-RDP80-00926AO00500030005-0 P_onstr gti,Qn pendi,turest McGraw-Hill World News correspondent in Santiago has reported that the 1948 outlay for new construction and maintenance on transportation, hydraulics and buildings will amount to approximately $136 million. Expenditures for transportation - comprising highways, railways (including street cars and sub- ways.) and port facilities - have been estimated at 37 million, or 16 times more than in 1938; for public building and housing construction, at $17 million, or 40% greater than in 1938. _tbly Woks Budgett Preliminary estimate on State expenditures alone for public works in 1.948 was fixed at $44 million, comparing with $25 million in 1945, $38 million in 1946 and $32 million in 1947. Principal increases in 1948 were in alloca- tions for the State Railways and for various public buildings.. 0 million. Projects under way will need a total estimated capital of Major Projeotsi Principal projects planned or under construction area o eat Location Estirna.ted st earl (millions of dollars) RSPO P TIU I Highway La Serena-Concepoibn 20-30 Railway Elec- trification Santiago-Rancagua Santiago-San Antonio 17 Highway tunnels .tJLIOS Between Santiago and Valparaiso 5 Hydroelectric Los Muelles, Los plants Girones and Guanehue 21 Hydroelectric plants 8S power Lines Sauzal 18 Water Supply System Valparaiso & Vicinity 25 Reportedly at least half oompleted. Equipment coat-under loan from Int. Bank Very rough estimate Of this amount, $7 million for imported equipment. Of this amount $34 million for imported equipment. First of 3 units planned for operation in June- other 2 by end of '48. In planning stage Approved For Release 2001/11/21 : CIA-RDP80-00926A000500030005-0 Approved For Release 2001/11/21 : CIA-RDP80-00926A000500030005-0 CHILE (Continued) I; USTRIAL PIS, Steel Mill Concepci6n 58-70 l yrs. for completion Cement Plant Polpaico L/ ; .2;, Rough estimate Petroleum Refinery Near Valparaiso 12 In planning stage COLOMBIA New Constructions Highway expenditures by the Government in 1948 are expected to total about $21.7 million, including $5.7 million for completion of trunk highways, $7.4 million for maintenance, and $8.6 million for paving, the latter being consi- dered as a separate item. Where will also be considerable construction activity on bridges, railways and ports. Prominent among the latter is dredging of the Bocas de Ceniza Canal and other facilities at Barranquilla costing an estimated $4.6 million. Public Works Budget: Latest available budget figures show that X49.5 million was spent by the Government for public works in 1946, more than double the corresponding figure for 1942. Private building construction, currently, is reported to be more extensive than public. Maior Proiectst Some of the major projects planned or under construction are: Qg ;on grtimated alll Remarks (millions of dollars) Anchicaya hydroelectr. Central Plateau 5 About j financed plant Rio Grenade hyd.roelectr. Medellin area not available Capacity 250,000 project kw; under construction [' ORTA ION Port facilities, inc. Barranquilla 4.6 In planning stage dredging of Bocas de Ceniza Canal Railway extension 870 miles between not available Sections have Bogota and Port of been surveyed Concha on south end but no work done, of Lake Maracaibo 2/48 Approved For Release 2001/11/21 : CIA-RDP80-00926A000500030005-0 Approved For Release 2001/11/21 : CIA-RDP80-00926A000500030005-0 LIA (Continued) pt M 2M ATI (conetd.) cot Paving and r public construction zum Caustic Soda and Ash Plant Location Fades Cost Remarks (millions of dollars) Bogota 8 Ines. 11 new streets and a I at. class avenue to Natl. Airport Betania 10 Under construction Rublic Works Programs Public works being effected under the present Administration have a total estimated cost of $210 million, of which $83.1 million, or approximately 40;x.,. represents expenditures up to October, 1947, and $128 million, remaining cred- its. This does not include coats of power development, nor projects being carried on by the National Development Commission which has been operating on a budget of 425 million, primarily for reconstruction of the Carretera Central and the construc- tion of modern slaughter houses. Expenditures under the overall plan are as follows: (In millions of dollars) Highways and bridges ................... 93.5 Streets Ina. sewage and drainage ....... 48.6 Rural and city schools 23.5 Aqueducts .............................. 16.4 Hospitals., dispensaries, etc .......... 11. Workers quarters ....................... 8.1 Public Buildings ....................... 5.9 Port and.. river works, parks,. museums, etc. 4.6 As of July 1, 1947, 582 projects had been completed under the Public Works plan and 448 were under construction. Of the latter, schools made up 264; highways and bridges 76, town street pavings 42, public buildings 26, hospitals 14, aqueducts 11, sewwee 8, and parks 7. During approximately 2 1/2 years, from October 10, 1944 to March It 1947, the Ministry of Public Works spent more than $5 million on purchases of equipment. New Construction Aetivit?rt McGraw-Hill World News Correspondent in Havana reportst "The biggest public improvement program is concentrated in the Havana area, including divided highways to relieve traffic jams, schools construction, a federally-financed housing project and a major water supply system. Approved For Release 2001/11/21 : CIA-RDP80-00926A000500030005-0 Approved For Release 2001/11/21 : CIA-RDP80-00926A000500030005-0 ggU (Continued.) "Outside the capital area, extensive new highway construction is under way, including resurfacing of a large part of the central highway, bisecting the entire island. Other work involves the construction of a new water supply for the City of Santa Clara and a considerable enlargement of Santa Clara's sewage treatment plant." Present construction costs are said to approximate 100% over prewar figures. M.r proieotss Some of the principal major projects planned or under construe- tion acre. Location Bsttii ted Cat Remarks RXBRAUBICS (millions of dollars) Expansion of power plants Havana, Camaguey, 25 Plus ordinaty const. Cardenas, Cienfuegos, budget which in '46 Santiago de Cuba, amounted to approx. Ciego de Avila, Guaso, 8 million. Increases Matagua, Manzanillo in cap. to be from 80,000 to 100,000 kw. Planned for completion in 1953. Highway reconstruction Carretera Central 11.8 Largely completed. Highway bridge Over Rio Caminaron Not Three-are concrete; Via Blanca available 311 metres long by 13 metres wide. Highway reconstruction Havana to Surgidero Not 56 kms. under via Managua available construction. Flour mill Havana 6 In planning stage ibrk Bea et; Estimate for public works expenditures for 1948 - including 085.5 million for transportation and, communication, $48.5 million for hydraulic resources and $9..5 million for industrial development - totals $143.5 million, a 300 rise over the corresponding figure for 1947. Approved For Release 2001/11/21 : CIA-RDP80-00926A000500030005-0 Approved For Release 2 - - 26A000500030005-0 Not to be overlooked are the considerable increases in other budgetary items which are believed to involve sizeable expenditures on construction enterprises: (1) "Additional Expenses" which jumped from $7 million to $47 million, (2) The "Public Debt" which increased from $48 million to $73 million and (3) "Education" which rose from $48 million to 74 million jew Corstrugtionz It has been recently reported that plans for the current year include spending $41 million in the construction of federal highways - double that of 1947 - and $10 million on railroad construction.. Projects for plant construction involving an estimated $100 million, said to be underway in June, 1947, will require 3 years for completion. A vast school construction program - including primary and secondary schools at an approximate cost of 033 million and a 05 million "University City" for the Federal District - is planned for 1948 and subsequent years.. Future Needs:: The 54% increase in the 1948 budget allocation for the Public Debt is largely a reflection of new loans acquired to improve the nation's economy. Still pending with the International Bank for Reconstruction and Development is a loan for approximately $209 million which Is to be used. by the Mexican. Government for the development of production facilities, including irrigation and hydroelectr2XlA projects, highway construction, pipe-lines, railways and harbor improvements. Mayor Brgieats: Some of the principal major projects planned or under construe- tion axe Pro3eot Location (millions of dollars); Valeequillo Irrigation Southern Vera Cruz 1 \291.6Under construction. Miguel Aleman, Federal District Reportedly 18 mo. Bydroeleotric Plants for completion (7/47) Irrigation Dam Rio Aguanaval 21 In planning stage. Obregon Dam 20 Bidding started 4/47 Irrigation Darn AAviacho Caidn Yaqui River 10-20 Bids started 4/47 Irrigation Siam Rio Grande R. betw. Laredo Sa Roma, Tex. 8 Under construction Electric Generating Guaymas, Sonora 5.6 In planning stage Station Approved For Release 2001/11/21 : CIA-RDP80-00926A000500030' Dredging Catarina R., Monterrey 6 Approved For Release 2001/11/21 : CIA-RDP80-00926A000500030005-0 SPORT. I06 Airport Port Facilities BUILDINGS AND P T'8 Ten Public Markets 51.8 In planning stage 11/47 State-owned Gas Plant 12 In planning stage 10/46 Hous 10 In planning stage 11/47 Ammonium Sulphate plant Recently announced. University Buildings Under construction (inc. sewage 8e water (1.6 million for facilities '48) Pulbl'o orks Program- In July, 1947, President Bustamente sent the Peruvian Congress a 77 million public works program calling for a yearly expenditure of about $19 million (luring the next four years to improve communications, and for irrigation and other national development projects Important among annual planned expenditures are 6.2 million for irrigation; 3.9 million for the Pan American highway and "feeder" roads; 2.5 million for railways, airports and dock facilities; and $1.5 million, each, for workers housing, and hospitals and national health. Major Projects: Major projects planned or under construction are: project Location Estimated Cost marks (millions of dollars) CHIMBOTB DB'PBLOPWRT Port works, railway construction, sanitary facilities, living quarters, etc. .........Town of a,imbote ..... Coal mines ............ 70 mi. inland from Chimbote .............. 16.5 Iron Ore Deposits .....260 mi. so. of Lima ... Peruvian Congress passed a law appro- priating 2 million yearly for these projects. Late in 1946 unused credits from Export-Import Bank amounted to Approved For Release 2001/11/21 : CIA-RDP80-00926A000500% Approved For Release 2001/11/21 : CIA-RDP80-00926A000500030005-0 = (Continued) CHID pOTE 1)1MQp 1' (cont'd.) Hydroelectric Plant & Hydroelectric on 3.5 irrigation works Santa River Coal, Iron and Steel Town of Chimbote 12.5 Estimated cap. Plant 125,000 kw planned for completion in r49 Hydroelectric Plant Chosica in Rimac 9.2-12.3 Construction was to Valley start in early 147 requiring 3j yrs. for completion. Hydroelectric Plant Urubamba River Preliminary Est, cap. 120,000 kw Mantaro River surveys made Est.cap. 740,000 kw Upper Maraft6n Est.cap.2,000,000 kw Model Industrial City Talara 10-12 Has been planned for conet. by '51 Pxbl:.ic Works Outlay. 1948: Estimated 1947-48 expenditures for public works, includ- ine budgetary allotments of 081 million, $21 million and $18 million for the Minis- tries of Public Works, Development and Communication, respectively, amounted to $120 million. Including 026 million, each, for the Ministries of Sanitation and Education - some portion, of which would normally be devoted to construction projects - this total would be increased to $172 million. In 1946, it was estimated public construction (concentrated particularly on port works, improvement, airfields, schools, hospitals, sewage and water systems and low cost housing) totaled 050 million, and private construction (residential homes and office buildings in larger cities) f15-20 million. New TannPort Plan: A complete plan for modernizing Venezuelan transport facilities - submitted by the National Transport Commission to the Ministry of Public Works in 1947 - envisaged construction of highways and stock trails at a cost of $106 million; 38 airports at $9..8 million; and 25 steamer ports and ooastwiee harbors at $28 million. In July., 1947, it was reported that $12 million worth of school buildings were being constructed. Kaj?or Projects: Some of the major projects planned or under construction are: Approved For Release 2001/11/21 : CIA-RDP80-00926A000500030005-0 Approved For Release 2001/11/21 : CIA-RDP80-00926AO00500030005-0 o eet Oil refinery Oil refinery Development iron mines TMSPOR!i~AT10N Location FUt1mated Cost Remarks (millions of dollars) Amuay Bay 100 For Creole Petroleum Col under construction Punto Carrion 100 For Shell 0111 Co.; under construction Eastern Venezuela not available Under construction on the Orinoco R. 200-mile highway El Sombrero in 9 Under construction Guarico to Port of Quanta Port facilities La Guaira Dredging and Northern outlet 30 Bids reported started construction of Lake Maracaibo 3/48 break ter channel to Lake Maracaibo BUILDING C'ON ' .Try University City Caracas 30 Hotel Tamanaco Caracas 6 Low Cost Housing Various 10 Under construction In planning stage Eet annual expend. 1947-1950 Approved For Release 2001/11/21 : CIA-RDP8O-00926AO00500030005-0 Approved For Release 2001/11/21 : CIA-RDP80-00926A000500030005-0 Approved For Release 2001/11/21 : CIA-RDP80-00926A000500030005-0