You are on page 1of 28

Economic Development Strategy

El Salvador
3 new Territorial Development Zones

 Create 3 new Territorial Development Zones that require low security costs, and because

they are places geared towards economic growth activities, the maintenance of the quality
of security can rest on private entities. The increase in the demand for work in these three
new zones, would decentralize the 3 main cities and the social problems will be reduced
proportionally.
3 new Cities

 Each project plans for the eventual development of a


41,300-acre (167 km2) property to include 88,000 to
100,000 residential units for a population of 200,000 to
250,000 residents. Initial plans, scheduled to begin in
2019, call for up to 10,000 residential units and
7,000,000 square feet (650,000 m2) of business
use. The proposed infrastructure is based on a large-
scale "climate positive" community entirely supported
through sustainable energy. Sources of energy would
include a 30MW solar array, a waste management
system for extracting methane, and an energy farm for
the production of Straight Vegetable Oil SVO.
Public Safety Cost vs. Employment Generation
Base of the Pyramid Food Platform
Integrated Low Cost Strategy
Base of the Pyramid
BOP Market Distribution
Central America BOP : $36 B

 CA Density map
BOP Food Group Structure

BOP Food Group Structure

BOP Food Distribution BOP Food Agribusiness BOP Food Processing

• Domestic and Import Sourcing • Backward Integration • Forward Integration


• 100-200 SKUs • Frijol • Private Labels
• Bulk purchasing • Maiz • Pastas
• Private Labels • Arroz • Noodles
• Efficient Logistics • Palm Oil • Galletas
• Warehousing and Packaging • Papas Yuca • Harina de Maiz
• Regional Hubs Warehouses • Ajo Cebolla • Frijoles molidos
• Network Local Distributors • Harina de Papa y Yuca
• Web-centric ASP operations
BOP Food Agribusiness Crops – Palm Oil

100,000 Kwh generator


US$30,000
Forward Integration – BOP Food Processing

Suppliers
Food

Agribusiness

BOP Distribution
Platform

Food
Processing

Suppliers
Non-Food
BOP Food Processing – Private Labels
BOP Food Processing – Cooperatives

• Founded 1947, 60 years


• 1,300 productores
asociados
• 85% Costa Rica dairy
sector
• 300 products dairy and
BOP Strategic Positioning

Broad
Product Line Cost Leadership Differentiation

Competitive
Scope

Narrow Focus
Product Line Cost Focus Differentiation

Lower Cost Differentiation

Competitive Advantage
BOP Products Stores Network
Distributed Network Strategy
BOP Products

Non-Perishable Basic Products


Non-Prescription Basic Medicines

Arroz
Non-Prescription
Frijoles
Generics
Maiz
Efermedades Respiratorias
Harina de Maiz
Enfermedades Intestinales
Harina de Trigo
Antibioticos
Productos de Soya
Desinfectantes
Pastas
Productos de Niños
Azucar Sal
Productos de Aseo Personal
Condimentos
Atun enlatado
Sardinas enlatadas
Café Less than 50 SKUs
Aceites
Ajo Cebolla
Papa Yuca
Baterias
Focos
Jabones
Candelas Cerillos
Productos de Limpieza

Less than 100 SKUs


Hub and Spoke Logistics
Spoke Logistics – Local Distribution Franchises

Regional Distribution
Center

Radius of distribution
less than 1 Km

Local Distribution
Franchise
Local Distribution
Franchise

Approximately 100 stores

Stores
BOP Products Distribution
Distributors Franchise System – Cloud Hosted
Spoke Logistics – Local Distribution Franchises

Radius of distribution
less than 10 Km

Local Distribution
Franchise

Approximately 100 stores


Tax Strategy

Proposal to reduce tax rates on


Income and VAT, increasing the tax
base to achieve greater tax
collection.
Request of USA Foreign Security Assistance

La Unión Port in the Gulf of Fonseca for


US Naval Base.

Offer to the Government of the


United States of La Unión Port in
the Gulf of Fonseca for establishing
a new naval base for the Southern
Command, generating conditions of
stability and regional security.
La Unión Port in the Gulf of Fonseca
Gulf of Fonseca
HSV2 in La Union
Oil Exploration in Nicaragua