During the Saturday tour of the Special Development Zone, focused on attracting foreign investment, the President stopped at the construction site of this important factory being built with 100% Cuban capital and set to begin operations in 2020.

Díaz-Canel likewise confirmed progress being made in preparing parcels for prospective users, guaranteeing infrastructure for the provision of water, electricity, communications, and waste water management.

He toured the Center for Food Preparation and Distribution (CEDA), completed in October of 2018, which predominately serves the Zone’s construction workforce; and visited the Spanish company ProFood’s facilities devoted to preparing and distributing foodstuffs and beverages to hotels, which is expanding to contribute to replacing imports with domestic products.

In context: Last year saw the greatest foreign investment to date in the Zone: 474 million; while at the close of 2018 agreements had been reached with a total of 43 users, 17 operating.

(Granma)

The corporation Viglacera, from the Socialist Republic of Vietnam, with extensive experience in the development and management of industrial parks, responded immediately to the invitation. After intensive talks and productive negotiations, February 28, 2018, the company was authorized to become the Zone’s first concessionaire via Decree 340.

ViMariel S.A. was officially inaugurated this past November 28, within the context of the 36th session of the Cuba-Vietnam inter-governmental group for economic and scientific-technical collaboration.

“The objective of this affiliate is to project, invest, construct, administer, and utilize the infrastructure of an industrial park in Zone 10 of the Special Development Zone’s Sector A,” explained Rodrigo Malmierca Díaz, Cuban minister of Foreign Trade and Investment.

It will attract not only Vietnamese companies interested in establishing operations in the area, but also potential investors from other nations, he added.

VIMARIEL S.A. – THE ZONE’S FIRST CONCESSIONAIRE

Creating a concessionaire in Mariel is not only an important step for the Zone as a project, but also for Cuba’s objectives regarding foreign investment in general.

Located on an area of 156 hectares, ViMariel S.A. is a subsidiary of the Vietnamese corporation Viglacera. The firm will undertake a program of investments to extend the work of the Office and Cuban entities charged with developing infrastructure in Mariel, and the attraction of direct foreign investment in production and services.

“The presence of ViMariel will add high standards in construction, technology, and management, essential to Cuba’s economic and social development. This industry will be focused on construction materials, heavy industry, packaging and wrapping, the production of articles for personal and domestic use, the bio-pharmaceutical industry, and logistics activity,” commented Ana Teresa Igarza, general director of the Special Development Zone, in previous statements to Granma International.

ViMariel is just beginning construction of its facilities, and has already signed a contract with EnPromoulds, a company that manufactures plastic molds and a future investor in the industrial park.

The new concession, awarded for a 50-year term, involves a scheduled series of projects funded with Vietnamese capital that will begin in 2019 and continue over the next five years, to build roads and communications networks, as well as water and electrical distribution systems.

Pham Hong Ha, Vietnamese minister of Construction, emphasized during the inauguration that the first portion of the project should be ready by the final months of 2019.

CUBA & VIETNAM

Vietnam is today among the countries with the greatest presence in the Mariel Special Development Zone.

“The creation of this first concessionaire will open a new stage in the development of the Special Zone and is a milestone for the opportunities it offers Vietnamese and other investors. In addition, it is an example of the intention of both governments to work to strengthen bilateral relations in the economic sphere,” Igarza stated.

Minister Malmierca said that the company will provide a successful example of construction projects undertaken with Vietnamese capital and a clear demonstration of the special nature of bilateral relations shared by the two countries.

He thanked the government and important Vietnamese companies for their interest in investing in Cuba, not only in Mariel, but in other parts of the country, as well. He added that these firms will have a significant impact on the country’s economic development and allow Cuban professionals to acquire experience from the Vietnamese in a priority sector like construction.

The establishment of ViMariel S.A. further strengthens relations between the two countries, united for years by ties of cooperation, solidarity, and brotherhood. The friendship between the two peoples, parties, and governments was initiated by

Comandante en Jefe Fidel Castro and Comrade Ho Chi Minh, and is today reflected in economic, commercial, and scientific cooperation that the two countries intend to expand.

(Granma)

Cuban President Miguel Díaz-Canel Bermúdez led a meeting of the Council of Ministers October 30, addressing issues related to economic and social affairs of the nation, including foreign investment, taxes, the state of accounts payable and receivable, progress of the Economic Plan, the Mariel Special Development Zone, Housing Policy, the Urban Management Plan for the cities of Havana, Guantánamo, and Baracoa, the 13th National Internal Control Audit, and the creation of an institution destined to perpetuate the memory of the historic leader of the Cuban Revolution, Fidel Castro Ruz.

As usual, Party and government authorities of different provinces and municipalities participated in the debates via videoconference.

FOREIGN INVESTMENT IN CONSTRUCTION
The contribution of foreign investment to construction, one of the sectors with the greatest impact on economic and social development, was described as strategic and offering great potential.

Minister of Foreign Trade and Investment, Rodrigo Malmierca Díaz, noted that though already present in the sector, foreign investment must play a more active role in order to substitute imports, increase the country’s constructive capacity, and export quality products and services.

Today, five businesses sponsored by the Ministry of Construction are in operation: two international economic association contracts, and three joint ventures. In addition, the latest Portfolio of Foreign Investment Opportunities includes 14 projects, four of them in the Mariel Special Development Zone.

Malmierca pointed out that shortcomings in the preparation of directives and technical-economic studies; the still insufficient capacity of specialist Cuban consultants to assume all the projects in the preparation phase; the repeated changes in investors in the conception of projects; and delays in the submission of legal documentation, are among the main obstacles to advancing in this area.

The Minister also referred to the negative effects of the country’s dual currency system, which distorts economic results. In addition, there are problems with supplies, both domestic and imported, and impediments to establishing productive chains.

As decisions already taken to address the difficulties, he mentioned the priority attention afforded projects that contribute to the substitution of imports, and make possible the increase of exports; as well as improving the training of managers and specialists of negotiating teams.

In this regard, Díaz-Canel explained the habitual checks he conducts on the development of foreign investment in the country, and the decision to regularly evaluate its impact on different sectors of the Cuban economy, as part of the Council of Ministers agenda, on this occasion focused on the construction sector.

The President reiterated the importance of foreign investment, particularly in the infrastructure the island requires for its development. He commented on problems that still persist with feasibility studies, and with investments that do not meet the expected returns in the planned timeframe.

It is necessary to plan from the beginning, he stressed, so that these investments are linked to the national industry, in order that they also facilitate the development of other branches of the economy.

ACCOUNTS PAYABLE AND RECEIVABLE

The state of outstanding accounts payable and receivable was also analyzed by members of the Council of Ministers, who stressed the urgent need to address manifestations of a lack of control that lead to the diversion of resources, as well as the failure to demand payments that has led to rising debts between enterprises.

In order to delve into the causes and liabilities, the situation of several chains of defaults that concentrate the largest amounts of debts between enterprises in various sectors was reported, a detailed analysis of which will be included in each meeting of this leading government body.

Deputy Minister of Finance and Prices, Meisi Bolaños Weiss, listed as the main causes of these non-payments: shortcomings in the records, control and reconciliation of accounts; indiscipline in the depositing and destination of cash for sales of goods and services in the retail and gastronomy sectors; the poor management of inventories; and the lack of demand in fulfilling economic contracts that do not always play the role established by the country’s norms.

As a result, a set of measures was unveiled to reverse the situation, which includes the presentation of a proposal to transform the financial status of retail commerce and gastronomy enterprises; as well as the undertaking of regular analyses of the debt chains in all business entities.

The Cuban President emphasized that things that are done badly must be addressed, with greater rigor demanded. Today, measures are taken and solutions sought that damage the State Budget and do not solve the decapitalization of companies with a lack of liquidity. We must solve the structural, organizational, and control problems, otherwise resources are wasted, he stressed.

We must delve into problems, he added, establish accountability on each Management and Administration board, in addition to advancing, among other issues, in extending access to the formal banking system, to reduce the use of cash.
TAXES: EVERYBODY’S BUSINESS

Since self-employed forms of work were expanded and made more flexible in 2011, the number of taxpayers in this sector has risen from 150,000 to 590,000, contributing to the tax system managed and controlled by the National Tax Administration Office (ONAT).

In the last five years, state income has grown between 1 and 8%. The income resulting from the application of taxes, fees, and contributions constitutes 74% of the total, which validates the tax system as the main source of income and redistribution of wealth. Income from the state sector is just over 85%.

However, Bolaños explained, indiscipline and tax evasion persist due to underreporting of income and irregularities in the justification of expenses in non-state management models, as well as the illegal undertaking of activities.

“There is no perception that the collection of taxes is a responsibility and also a duty to society, which involves citizens and institutions,” she stressed.

In legal entities, she reported, 98% of payments are made, while in the case of individuals it is 85%.

To counter tax evasion, the Council of Ministers approved several measures aimed, among other aspects, to increase the withdrawal of licenses and closure of establishments; apply fines more rigorously, with maximum importance placed on evasion and illegal activities; make cases of tax evasion and the corresponding sentences public; conduct systematic operations to identify illegal self-employment; and increase fiscal control measures to combat the underreporting of the values of sales and purchases of cars and homes.

At this point, Díaz-Canel noted that the approach encompasses a re-ordering in all areas, not only that of non-state management, and is part of the same struggle in terms of control and compliance with the law to ensure an organized society.

PROGRESS IN THE ECONOMIC PLAN

Minister of Economy and Planning, Alejandro Gil Fernández, presented a report on the estimated fulfillment of the 2018 Economic Plan, which maintains the projection that the growth rate will be slightly higher than 1%.

He explained that planned income levels in activities such as tourism, sugarcane harvesting, and mining were not met.

He reiterated that the drafting of the Plan for 2019 has as its premise the reduction of imports of products that can be obtained in the country, for which it is necessary to use all internal reserves.

“We need to adjust expenses to the revenue that we have available, and work to increase exports and ensure that adequate return on investments is achieved, the only way to develop through our own efforts,” he concluded.
HOUSING POLICY IN CUBA
Cuba’s Housing Policy was presented as part of the Council of Ministers meeting, based on the current situation of the country’s housing stock and aimed at shaping the strategy to stop further deterioration in the first place, and in the second, ensure total recovery and solutions.

Minister of Construction, René Mesa Villafaña, explained that recovery of the housing deficit is estimated to be achieved in ten years, with the first five years prioritizing housing exposed to climatic effects and in precarious conditions.

The policy envisages the largest number of actors possible participating in construction works, including families in need of housing, organized to resolve their situation through their own efforts with the support of state subsidies; professional state construction organizations; the agricultural and non-agricultural cooperative movement; work centers, with real possibilities of participation; and the country’s state enterprise system.

The Minister explained that the priority cases for housing and construction materials will be based on social and labor merit, taking into account first the victims of extreme weather events, and subsidies for the construction of basic housing for family units willing to undertake the work themselves.

Priority will be given to people living in precarious conditions and in coastal settlements, as well as those with more serious housing needs, regardless of the causes, starting with solving social cases, and those of families who have spent the longest periods living in shelters.

He added that different technologies and materials will be used for the construction of homes, such as the Gran Panel, Sandino, and Forsa systems, and other more traditional forms of construction using concrete blocks, bricks, masonry, and different types of wood, including palm tree timber.

The Policy establishes that the value of the homes will not be subsidized by the state, and that beneficiaries must assume the payment, which can be made in as many monthly installments as necessary, based on the per capita income of the family unit.
URBAN PLANNING

The General Urban Management Plans for the cities of Havana, Guantánamo, and Baracoa were also presented at the meeting by the President of the Physical Planning Institute, Samuel Rodiles Planas, who argued that these “have a time horizon through 2030, identify the problems and potentialities of the territory, propose urban planning models and their determining factors, formulate action programs and define urban regulations.”

The aim is to direct the development of cities that are more organized, environmentally friendly, sustainable, cleaner, and with better road infrastructure.
Díaz-Canel called for everything that is planned to be undertaken in accordance with these Urban Plans, and those that will be approved in the future.
MARIEL SPECIAL DEVELOPMENT ZONE
The Council of Ministers gave the green light to the Mariel Special Development Zone business and development program, which has among its strategic premises the creation of a business environment that offers all kinds of competitive services in terms of quality and prices.

This was presented by Ana Teresa Igarza Martínez, director of the Mariel Special Development Zone Office, who added that the Zone will attract “investment projects linked to information and communications technology, with the aim of increasing the portfolio of these services in quantity, quality, and at competitive prices.”

It will also favor the insertion of a qualified workforce, including young talent; the development of projects linked to the construction materials and systems industries, in any of the investment modalities; as well as those aimed at electricity generation from renewable energy sources.

Igarza noted that the Office also follows the State Plan to address climate change. Hence, the activities of concessionaires and users must be environmentally friendly.

Finally, she clarified that “all economic actors with their own legal capacity can participate in investment projects, under any modality provided by law.”
NATIONAL INTERNAL CONTROL AUDIT

The Comptroller General of the Republic of Cuba, Gladys Bejerano Portela, announced aspects of the 13th National Internal Control Audit, running November 1 through December 12.

The goal, she said, is to evaluate compliance with Cuban enterprise system regulations, as well as the control and use of inventories. Likewise, contracting will be investigated, as well as outstanding accounts receivable and payable, the use of fuel, and payments to self-employed workers.

Inspections, audits, and special checks will be made in 370 business groups, companies, basic enterprise units, hotel complexes and establishments.

The Audit envisages the participation of 2,442 auditors, including 230 supervisors, as well as more than 1,141 university students of different specialties, professors, and institutional experts.

The Comptroller explained that the auditing and verification programs that will be applied are available to all, because “our interest is to promote self-control and training.”
NEW INSTITUTION DEDICATED TO FIDEL
A historic building in the Havana neighborhood of El Vedado is being prepared to house a new institution with the mission of studying and spreading the thought, work, and example of Comandante en Jefe Fidel Castro Ruz.

The good news was presented by Alberto Alvariño Atiénzar, head of the Office for the Preservation of Documentary Heritage – Palace of the Revolution, who recalled that “The National Assembly of People’s Power approved Law No. 123 on the use of the name and figure of Comandante en Jefe Fidel Castro Ruz, where the use of his name is authorized as an exception to designate an institution constituted for the study and dissemination of his thought and work.”

To that end, a working group was set up – approved by Presidential Decree in February of this year – in charge of preparing the proposal and bringing the new institution into action.

Alvariño Atiénzar explained that it will be a public political institution, equipped with the latest technology, that stimulates interactive information and, given its purposes, will focus on children, adolescents, and young people, without excluding the rest of the public.

Among its main functions will be the promotion and development of outreach work, meetings, and competitions; the development of academic events, teaching, research projects, as well as the edition and production of books and other publications; working relationships with other national and international institutions linked to the figure of the Comandante en Jefe; and contributing to the confrontation of enemy campaigns aimed at distorting the life, work and figure of the historic leader of the Cuban Revolution.

At present, efforts are underway to get the institution ready by the end of next year.

The President of the Councils of State and Ministers highlighted the sense of ownership and dedication of all those involved in this beautiful project, which has made it possible to overcome any obstacle and advance in its establishment.

In offering conclusions on the meeting, Díaz-Canel referred to issues that have been subject to governmental analysis in recent months, including visits to provinces and the importance of solving the problems detected there; active participation in the commissions and debates of the National Assembly of People’s Power; the priority that foreign investment, exports, and import substitution must be afforded; the linking of the tourism sector with other sectors of the economy through productive chains; computerization and social communication processes; and the attention of agencies and entities to non-state management forms, as a complement to our economy.

This according to Rodrigo Malmierca Díaz, minister of Foreign Trade and Investment, who reported during a meeting of the Council of Ministers that, since a new policy in this arena was approved in 2014, increased participation of foreign capital in the economy has been noted, though its weight within total investment in the country remains low.

Although positive results were attained in 2017, the current level of foreign investment is not yet adequate to significantly advance development. Thus the promotion of commercial alliances and direct foreign investment remains a strategic priority, to be fomented and facilitated in all available environments.

The recent International Convention and Exposition Cubaindustria 2018, focused its third edition on consolidating ties already in place with important trade partners like Russia and China, as well as the establishment of new relations that will allow for diversification and generate economic activity in the short term. This continues to be a challenge.

The Investment Forum during the event, among the programs prioritized, allowed for the holding of more than 50 bilateral meetings and included presentations by authorities from the Mariel Special Development Zone and the Ministry of Foreign Trade and Investment, who reiterated the advantages Cuba offers investors and emphasized the potential of domestic industry, in need of expansion and dynamism.

Industry is basic to the development of the country, essential across all sectors of the economy, and what is accomplished or not in this arena impacts prospects for Cuba’s projected growth rate.

The updating and modernization of the economy with capital from abroad supposes taking risks, which is not the same as improvising, as government authorities have insisted, but rather fully in line with policy established setting the course for light industry, as well as the metallurgical, chemical, and electronic.

Ana Iris Cabrera Salomón, deputy director of Investment and Collaboration at the Ministry of Industry, noted that efforts are directed toward “promoting projects to modernize and create new capacity with the objective of meeting national demand, substituting imports, and generating exports.”

New companies must generate spill-over, favoring productive links between tourism and agriculture; strengthen the transfer of technology, including managerial methods; contribute to developing infrastructure and the use of renewable resources to generate electricity; and above all support the implementation of policies approved for each sector.

Reflecting these principles, the Portfolio of Opportunities for Foreign Investment contains 456 projects, including 10 promoted by the Ministry of Industry which are directed toward the production and sales of rigid tubes for individual cigars; flexible packaging; tin cans; prefabricated metal structures; electrical conductors; and the comprehensive management of urban solid waste.

The Mariel Special Development Zone is coordinating 14 projects, whose operations should contribute to the implementation of national policies focused on packaging, the use of renewable energy, and supplying the tourist industry.

Cabrera noted that beyond the will, realizing these goals requires strengthening negotiating teams, providing not only theoretical training, but also the tools needed during the interactive process of closing a deal.

Work is underway, she said, to “increase, via our enterprise groups, the regular checking of projects and their progress in accordance with timelines foreseen… to be more dexterous when it comes to handling permits and licenses to conclude the paperwork.

“In all of this, we must work in a rapid fashion, while keeping systems of technological and engineering vigilance active, and using all means to get to know our providers and identify a broad group of possible partners.”

She likewise commented on finding ways to provide incentives to negotiators, to encourage then to give this process the priority it requires, since many involved have multiple responsibilities, and at times this efforts gets less attention.

According to Cabrera, today the Ministry of Industry is sponsoring 20 projects with foreign investment, in the Special Development Zone and beyond, including those functioning as joint ventures, administration contracts, and international economic associations. Outstanding among partner countries are Spain, Italy, and Canada.

In light industry, she explained, projects include the production of toiletries, hygiene and cleaning products; the printing of fine labels and cases; textile garments; as well as mattresses and disposable baby diapers.

The four international economic associations in the chemical industry are devoted to the production of industrial gases, toilet paper, and paper napkins. In the latter case, the production facility was the object of a significant investment process, she reported.

In electronics, for its part, one joint venture offers telephone and networking services, and operating in the metallurgical industry are two entities: one devoted to producing structures for construction, currently being set up in Mariel, and the other to repair and maintain transportation equipment.

Cabrera also emphasized projects currently in the negotiations stage that look promising, mentioning two in particular to manufacture aluminum and glass containers, which would be located in Mariel, and another to produce and retread tires.

In closing she returns to efforts to work with more agility, eliminating delays and prejudices, sharpening our senses in the search for the “right” partners, with high quality productions and services as a maxim, to make foreign investment the “fundamental, active element” Cuba needs.

(Granma)

This year the Cuban Parliament approved the bases to elaborate the National Economic and Social Development Plan through 2030. The minister noted that this portfolio is more comprehensive than previous editions, divided according to sectors on the basis of the National Plan.

“Today foreign investment ceases to be a complement and has become an essential issue for the country. Work is centered on increasing the diversity of previous portfolios, in line with the general and sectoral policies that have been approved.

“We are transforming our economy, updating our model; we have defined the core ideas and the strategic sectors, and all this must be taken into account in the case of foreign capital investment. This portfolio is a reflection of the priorities identified in the bases for the elaboration of the (National) Plan,” the Minister of Foreign Trade and Investment insisted.

A total of 156 new projects have been incorporated into this edition of the Portfolio, representing investment of around three billion dollars, of which 29 are located in the Mariel Special Development Zone (ZEDM). Meanwhile, the investment amounts required for 22 projects have been adjusted, and others have been removed as they have already materialized, or are in the advanced stages of negotiations.

In the financial banking sector, projects aimed at insurance activities have been expanded and the sectoral policy has been updated with the aim of developing new products and services for the benefit of the Cuban market, which in turn can be exported. Likewise, the hydraulic sector policy has been broadened in response to the country’s drought situation.

Below we provide a summary of the different sectors and main projects to be developed:

Industrial sector – 33 projects: Production and commercialization of electrical conductors and metal structures. Production of LED lighting and disposable material for medical use. Production and manufacture of flat glass. Management of a comprehensive Solid Waste Management system in the ZEDM.

Agricultural, Forestry and Foods sector – 104 projects: Pork production for the commercialization of finished pork products. Development and production of fresh vegetables in protected crops destined for export and the hard currency domestic market. The creation of a center for the elaboration of foods and a catering service in the ZEDM. Comprehensive project to raise beef cattle in stables with capacity for 5,000 heads. Production and commercialization of high quality coffee.

Sugar industry sector – 7 projects: Management of sugar mills with bioelectrical power. The creation of an alcohol distillery with capacity to produce 200,000 liters per day. Expansion and modernization of rum distilleries. Modernization and increased scope of boiler factories.

Tourism sector – 152 projects: Building and marketing top-quality villas and hotels in various regions. Hotel management and commercialization contracts. Marina management agreements. Creation of a network of fishing and diving centers in protected areas, a water park, the Abra de Canasí nature and adventure park, and the establishment of an international equestrian club.

Energy sector – 13 projects: These are priorities and based on the development of renewable energy sources. Among them are wind farms, 11 bioelectrical plants, and 100MW photovoltaic solar farms, with 50MW accumulation.

Mining sector – 10 projects: Geological recognizance or investigation (prospecting/exploration) for precious metals (gold, silver), base metals (copper, lead, zinc) and other minerals of interest in various regions.

Transportation sector – 8 projects: Repair and maintenance services of naval vessels. Operation and management of Casa Blanca shipyards. Remodeling of the Bahía de Cabañas shipyard. Light vehicle rental services for ZEDM users.

Pharmaceutical industry and biotechnology sector – 15 projects: Production of vaccines for cancer treatment. Plants for blood-based products, biomaterials, cytostatics, oral contraceptive pills and hormones, and avian vaccines.

Health sector – 2 projects: Quality of life services. The creation of an international clinic for sports medicine, anti-doping control and education.

Construction sector – 14 projects: Modernization of engineering systems for construction and assembly. Capital repairs service for construction equipment. Rental, maintenance and repairs of construction and hauling equipment. Increasing the potential of marble. The last two projects are located in the ZEDM.

Business sector – 4 projects: Logistical operator to manage chains of refrigerated foods suppliers. Wholesale textiles, dry goods and accessories.

Hydraulic sector – 7 projects: Modernization of the production of spare parts, accessories and other plastic elements. Deep well drilling services. Production management of smooth or corrugated pipes. Hydro-geological services applied to the control of the water table.

Cultural sector – 2 projects: Linked to the promotion and commercialization of products and services in this field.

Audiovisual sector – 3 projects: Building and setting up of a forum for high-definition audiovisual productions and co-productions. Establishing a system of pay-per-view channels for Cuban TV. Informatics and educational audiovisual productions.

Oil sector – 78 projects: Risk oil exploration and shared production contracts in blocs of the Cuban Exclusive Economic Zone in the Gulf of Mexico. Secondary recovery contracts for deposits being exploited.

Real estate sector – 1 project: Building and management of standard warehouse facilities in the ZEDM.

Logistics sector – 1 project: Building and operating comprehensive logistical facilities and services in the ZEDM.

“In total this portfolio has 456 projects for a capital amount of 10.7 billion dollars. The projects are distributed throughout the country and reflect the bases of the National Development Plan through 2030,” Malmierca Díaz reported.

“Right now, there are 80 projects in the negotiation phase with real possibilities of materializing, of them, 15 are in a very advanced stage of negotiation and could be approved before the end of the year, for an investment amount of over one billion dollars,” he added.

Since the passing of the Foreign Investment Law in 2014, 22 reinvestments, 25 new businesses in the Mariel Special Development Zone, and 85 more outside it, have been approved, with companies from more than 20 countries.

The Minister for Foreign Trade and Investment explained the advantages of investing in Cuba. He noted the importance of having a well-defined general and sectoral policy, as well as a safe and transparent body of law, that fosters a stable climate for foreign personnel.

He also highlighted the relevance of Cuba’s strategic position, a government policy that prioritizes innovation and research, and the maintenance of basic infrastructure that allows any investor to develop in the Cuban market.

In order for the Cuban economy to dynamically grow, capital accumulation rates of over 20% are required, representing foreign investment inflows of about 2 billion dollars a year. This will not be achieved overnight, and it is necessary to create a business and commercial environment attractive to foreign investment, which is only possible by ensuring this sector is recognized as an essential source in Cuba’s future plans.

(Granma)

Julio González remembers well the beginnings of the plant. Aged just 17, he decided to undertake an operators training course and became one of the plant’s first workers.

“We started out with 101 young people, under the guidance of specialists from the former Soviet Union. We trained for a year and a half, we even practiced at plants in the capital,” he explains.

PUTTING KNOWLEDGE INTO PRACTICE

Julio is one of the three founding workers who remain at the plant. Over the past 26 years he has worked as a dynamic and diagnostic analysis specialist. He has always been driven and has completed two engineering degrees while at the plant.

“I’ve spent a lifetime in this place…I love what I do, despite so many years of work,” Julio, about to celebrate his 70th birthday, notes.

Five years ago he retired and has since been employed on a contract basis. “As long as my health and faculties allow me, I will continue working,” he says. Over the years, Julio has contributed to the training of many of the plant’s workers.

Training has also been essential for the young Yosvel Tartabull, who serves as an electrical protection specialist. He started out as a maintenance technician and a year ago became an electrical engineer. He is now focused on a master’s degree.

PREPARATION IS THE KEY

According to Roberto Manuel Pigueiras, the plant’s technical director, works began in 2012 on the plant’s power unit Block No.7, which underwent maintenance works over two years.

Since the end of 2012, the Máximo Gómez thermoelectric power plant has been immersed in an extensive maintenance process. Photo: Otoniel Márquez
Pigueiras notes that the secret to the process is good preparation, to ensure that power units are non-operational for the shortest time possible.

The works continued on Block No.5, due to be completed within the next two years, including an automatic system. Block No.8 followed, and the modernization works here were completed in record time, including a new combustion system, just as was the case with Block No.7.

As such, these three power units have recovered their maximum generation capacity of 90 megawatts (MW) each.

The results have been encouraging. For example, last year Block No.5 saw record generation of 590 gigawatts (GW) and by May, Block No. 8 had seen total generation of 64.8 GW, something a machine of this capacity had never before achieved at the plant.

Enterprises of the National Electrical Union and the Ministry of Construction have participated in the maintenance works.

LOOKING AHEAD

Máximo Gómez has assumed a new challenge. Workers are currently preparing for an investment project for Block No. 6, currently in the study phase and awaiting basic engineering approval. The project will be undertaken with a Slovak firm. “It will be the most complex project to be implemented up to 2020, as these are not major repairs, but a total renovation of the unit,” Pigueiras explains.

About a year ago, demolition of Block No. 6 began and civil works are scheduled to commence early next year.

Accreditation of the plant’s Metrology Laboratory is also planned for this year, which has seen investment of over half a million CUC. Meanwhile, in January 2017 a water treatment plant, to improve the quality of water discharged into the bay of Mariel, is scheduled to arrive in the country.

A new agreement with Russia will also see the installation of a 200 MW power unit. Workers are already preparing for the project and the implementation process should be completed in 2023.

In addition to thermal power generation, the plant also uses motor-generators which currently provide 110.4 MW.

Next year will see further investment, with maintenance of 36,000 working hours on seven of these motors, in order to improve efficiency.

All this as part of the efforts to ensure ongoing and increasingly efficient energy provision on the island.

(Granma)

The ceremony was led by Ana Teresa Igarza, director general of the ZEDM Office, and Lilianne Ploumen, minister for Foreign Trade and Development Cooperation of the Kingdom of the Netherlands, in addition to Pedro Fraga and Fabio Prado, presidents of Intersuchel S.A. and Unilever Mexico & Caribbean, respectively.

The Dutch company Unilever N.V. and the Cuban Intersuchel S.A., form the joint venture authorized to operate in the ZEDM, with total investment of over 35 million dollars.

The start of production is scheduled for the end of 2017, for which a modern plant will be built for the manufacture of cleaning, personal care and household products of the Sedal, Rexona, OMO, Lux and Close-Up brands.

The joint venture will also be responsible for marketing and wholesale distribution of these products in the domestic market, given the growing demand of the population, together with that generated by increased tourism.

Unilever Suchel S.A. will create some 300 new jobs and also advance the introduction of innovative management methods and the use of technological equipment, with high standards of safety and environmental protection.

Speaking to the press, Ploumen noted that the creation of this joint venture will encourage increased trade relations between Cuba and the Kingdom of the Netherlands.

The Dutch minister is currently on an official visit to the island, heading a delegation of 77 companies, as well as sports and cultural organizations.

The head of Unilever Mexico & Caribbean, Fabio Prado, expressed high expectations for the venture, considering that Unilever brands are recognized throughout Cuba given their former presence in the domestic market.

We hope to positively impact Cuban society and economic growth, he stressed, while reiterating the commitment to consumers and the preservation of the environment.

Founded over 120 years ago, Unilever is one of the world’s leading suppliers of food, household and personal care goods, operating in one hundred countries, with sales in over 190.

Unilever Suchel S.A., the first Dutch-financed venture approved to operate in the ZEDM, is the ninth company to be established there, together with others from Mexico, Spain, Belgium, Brazil and Cuba.

Created in November 2013, the ZEDMis intended to promote sustainable economic development in the nation by attracting foreign investment and technological innovation.

(AIN)

Luis Alberto González, President de Richmeat, is a Mexican meat processing company with a 15-year history in Cuba, explained that their factory in Mariel will process 1,000 tons a month and will hire 25-45 Cuban workers. The plant will begin operations with meat imported from Mexico, but the plan is to move toward acquiring it from Cuban ranchers.

The Spanish food processing company Profood, to supply hotels, has a similar plan, according to director Antonio Vicens, who said, “The goal is to reach 60% national raw materials. “

Also participating in the press conference were Devox, a Mexican paint company; and BDC Log, a Belgian entity which will handle logistics within the Zone; and BDC tec with plans to build an assembly plant for temperature sensors and electrical panels, among other products.

The joint Cuba-Brazil enterprise, Brascuba, which has successfully operated in the country for two decades, reported that it will build a cigarette plant in Mariel.

Wendy Miranda, a ZEDM official, added that the U.S. farm equipment company Cleber LLC, has been approved to establish a tractor assembly plant in Mariel.

Saul Berenthal, president of the company based in the state of Alabama, reported that the U.S. Office of Foreign Assets Control (OFAC) is still considering their license, and noted that the blockade continues to limit the ability of U.S. companies to take advantage of opportunities in Cuba.

(Granma)