CONSTRUCTION ACTIVITIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00926A000500030005-0
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 15
• Document Creation Date: December 14, 2016
• Document Release Date: April 23, 2001
• Sequence Number: 5
• Publication Date: August 4, 1948
• Content Type: REPORT

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
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 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:
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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
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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
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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:
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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
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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
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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
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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.
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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.
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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
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Dredging Catarina R., Monterrey 6
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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
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= (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:
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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
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