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Viewing cable 08BUENOSAIRES1158, ARGENTINA: AMBASSADOR HOSTS BUENOS AIRES MAYOR MACRI AND

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Reference ID Created Released Classification Origin
08BUENOSAIRES1158 2008-08-15 20:29 2011-08-25 00:00 UNCLASSIFIED Embassy Buenos Aires
VZCZCXYZ0000
RR RUEHWEB

DE RUEHBU #1158/01 2282029
ZNR UUUUU ZZH
R 152029Z AUG 08
FM AMEMBASSY BUENOS AIRES
TO RUCPDOC/USDOC WASHDC
RUEHC/SECSTATE WASHDC 1797
UNCLAS BUENOS AIRES 001158 
 
SIPDIS 
 
USDOC FOR 4322/ITA/MAC/OCAC/APEACHER 
USDOC FOR 3134/USFCS/OIO/WH/RD/BBRISSON 
STATE FOR ECON WHA/BSC 
 
E.O. 12958: N/A 
TAGS: OVIP BEXP EINV AR
SUBJECT: ARGENTINA: AMBASSADOR HOSTS BUENOS AIRES MAYOR MACRI AND 
U.S. IT COMPANIES TO DISCUSS TECH PARK 
 
1.  Summary:  On August 8, Ambassador hosted a roundtable for Buenos 
Aires Mayor Mauricio Macri to present his plans for developing a 
technological park in the southern suburbs of Buenos Aires.  Present 
at the roundtable were country representatives of major U.S. IT 
companies IBM, Cognizant, EDS, Hewlett Packard, Intel, AMD, Cisco, 
Motorola, Nextel, Travelocity, Oracle, and Sun Microsystems.  Macri 
acknowledged challenges for investment in Argentina but stressed his 
city's determination to press forward.  He noted an unprecedented 
one billion dollars in private investment in the city this year, 
double the average over the past four years.  He also highlighted 
accomplishments of his 8-month-old administration, including 
infrastructure improvements, new financing options for SMEs, 
educational institutions, and public hospitals.  End Summary. 
 
------------------------------------------- 
Buenos Aires as the Epicenter of Technology 
------------------------------------------- 
 
2.  Mayor and staff presented a proposal for an IT Park in Buenos 
Aires to facilitate continued high growth and investment in the IT 
sector.  The multi-faceted district, to be located in the Parque 
Patricios neighborhood on the south side of the city, would be a 
stimulating high-tech environment for private IT companies, trade 
associations, and technical universities, where one could work, 
research, have fun, and live. 
 
3.  Macri's goal is to make Buenos Aires the epicenter of technology 
in South America.  The park would encompass 200 hectares of publicly 
accessible space, including office buildings, a government 
development office and a "clubhouse" to host various activities and 
serve as a convention/learning center.  The presentation stressed 
that the district is not a "city project," but rather a joint 
venture with significant private sector participation.  The Mayor 
mentioned the idea of a Presidents Club Table, modeled after IT 
parks in China and Spain, to facilitate and encourage ongoing 
company input in the park's development and operation. 
 
-------------------------------- 
With Incentives, Will They Come? 
-------------------------------- 
 
4.  Draft legislation to create a regulatory framework for the 
district is currently being reviewed by the City Congress 
Commissions and is expected to pass by November 2008.  Development 
of the park will be promoted through low rent for participating 
companies and several tax incentives, including waving taxes on 
"rubberstamping" and contracting for the companies, a 10-year waiver 
on city services taxes, a 10-year waiver on gross income taxes, and 
short-term preferential lines of credit for construction. The 
benefits of locating in Parque Patricios were also highlighted, 
including inexpensive real estate and easy access to public 
transport and to other important areas of the city.  Basic 
infrastructure, including closed buildings and warehouses, is 
already in place as well. 
 
------------------------------- 
Safety, Marketing, and Promotion 
------------------------------- 
 
5.  The company representatives expressed significant interest in 
the project, as evidenced by the questions they asked after the 
presentation.  They questioned the Mayor about future security plans 
for the district.  The Mayor and staff said that they were working 
closely with the federal police to implement a comprehensive 
security plan, noting that the development of the neighborhood into 
a high-tech park would inherently improve quality of life and 
therefore safety in the area. 
 
6.  Companies also asked whether the City had produced a copy of the 
plans and presentation in English, so that they may transmit the 
idea to their U.S. headquarters.  Macri responded that an English 
version would be available by the end of August.  The Mayor also 
asked the Embassy to help organize a trip to the U.S. to present the 
project in relevant cities for various companies, and to receive 
feedback from similar ventures in the U.S. 
 
--------------------------------------------- --- 
Comment: Investment Climate Will Bear on Project 
--------------------------------------------- --- 
 
7.  Mayor Macri's proposal is ambitious and his team seems 
well-versed on the development of tech parks, as their presentation 
was thorough and well thought-out.  After the meeting, company 
officials also seemed genuinely interested in learning more about 
the project.  It will be important to see if the mayor's bill is 
actually passed by the city legislative by November 2008, and how 
helpful the national government will be in assisting in the 
development of this tech park.  While the City Government is willing 
 
to offer many incentives for future investors, the current national 
investment climate could preclude many multinational IT companies 
from securing the necessary commitments to invest in this tech park. 
 The Commercial Service is following-up with the Mayor's office on 
opportunities to assist in the promotion of this idea in the U.S., 
as requested.  End Comment. 
 
WAYNE