Brazil & Southern Cone - November 2010 (ISSN 1741-4431)

Uruguay's state-owned enterprises are expected to invest US$3.6bn on infrastructure projects during the administration of President José Mujica. This sum represents a 110% increase in public sector investment when compared to the administration of Mujica's predecessor, Tabaré Vásquez (2005-2010), when the state spent US$1.735bn on infrastructure works.

The Usinas y Terminales Eléctricas (Ute), the state-owned power company, will lead the way, with an investment of US$1.35bn towards the establishment of a 50mw interconnection with neighbouring Brazil; improved transmission and distribution networks and the development of alternative renewable energy sources. Ute's investment is followed by that of the Administración Nacional de Combustibles, Alcoholes y Portland (Ancap), with an investment of US$800m. Other state companies awarded increased investment budgets include the Administración Nacional de Telecomunicaciones (Antel), with US$800m; the Obras Sanitarias del Estado (Ose), with US$500m; and the Administración Nacional de Puertos, with US$200m.

Salary agreements: As we went to print in early November, only 25% of the 320,000-strong workforce whose salary agreements expired on 30 June last had agreed new accords. The government position was that negotiations had formally concluded as the deadline of 29 October went without a resolution. Another 120 collective agreements for the largest sectors in the economy expire on 31 December.