Progress in the development of the infrastructure favours the establishment of new land prices in property for some of the ten areas of Sector A of the Special Development Zone located in the province of Artemisa
The minimum land values owned by Sector A of the Special Mariel Development Zone (ZEDM) were recently updated by the Ministry of Finance and Prices (MFP). The renewal of the price list responds to the advances in the development of the infrastructure of the Zone.
Sector A is divided into ten areas (Graph-1). The update maintains the price previously established for five of these and raises the minimum values of the square meter in the rest: high technology industrial park, oil activity, logistic activities, and agricultural development and agro-food processing zones ( Table 1).
The decision is contained in Resolution No. 7 of 2017, of the MFP holder, published in the Extraordinary Official Gazette No. 4 of last January 20 (digital version: www.gacetaoficial.cu).
The legislation repeals the previous one: Resolution No. 149 of March 18, 2014 (Extraordinary Official Gazette No. 23 of May 7, 2014), the first to set for Sector A "the minimum values of land owned , as well as the correction coefficient that determines in each case its value in surface rights or usufruct, in correspondence with the level of development and urbanization existing at that moment and according to the time of validity of each business.
As before, resolution 7/2017 of the MFP determines that the minimum values now regulated "will be modified by a correction coefficient that determines in each case its value in surface right or usufruct" according to the time of validity of every business.
The coefficients according to the duration of the enterprise go from one to one hundred years and maintain the same values of the initial regulation. They are contained in Annex No. 2 of the current resolution. As a matter of space in the printed edition, we place this information (Table-2) only in our digital edition (www.juventudrebelde.cu).
The MFP provision also mandates that "approved minimum land values are mandatory benchmarks for the calculation of land value in surface or usufruct rights in each negotiation".
The MFP is the Central State Administration (ACE) body responsible for directing and controlling the implementation of the policy on the control, valuation and use of state assets, according to the Agreement No. 7334 of the Council of Ministers of December 19, 2012.
Growing, growing, and growing
The Mariel Special Development Zone is the most relevant, promising, prosperous and sustainable economic area of the nation in recent decades. What is happening there and what is to come is a guarantee of our future. To visit the place is to know, on a small scale, what is expected and what the 21st century Cuba has to offer.
Located in the province of Artemisa, it covers an area of 465.4 square kilometres of six municipalities. As explained in the presentation of the Zone in the Foreign Investment Opportunities Portfolio 2016-2017, it has its own regulatory framework, contained in Decree Law 313/2013 and its complementary rules.
Decree Law 313 grants the ZEDM "a set of special regimes, which form a more attractive scenario for the investment of Cuban and foreign companies". Their tax incentives "benefit equally all enterprises established in the Area".
The document cited, authored by the Ministry of Overseas Trade and Foreign Investment and presented at the last Havana Fair, shows that the development of the Zone "has been started by Sector A, 43.7 km², located in the The western margin of the port of Mariel '.
The Master Plan for the urbanization of Sector A "was in the hands of the French company Bouygues Bâtiment International, which has applied the highest standards and concepts of environmental quality.
"The Cuban State - added the Portfolio - has invested over USD 1 billion in basic and auxiliary infrastructure development, ensuring multimodal air, sea and land connection, electricity supply, water supply, sewage systems, treatment of waste and info-communication, among others, which are already available to investors.
Zone A, the first
A report in the digital publication Cubadebate of January 24 (Is the zone in the Zone? Looks at the ZEDM) remembers that the first stage of this project (2011-2014) included the culmination of the initial phase of the Container Terminal Of Mariel (TCM), the access road connecting the La Habana-Pinar del Río Highway with the TCM, stage one of the Logistics Activities Zone (ZAL), the rail link with Havana, and the first dredging operations .
Between 2014 and 2016, according to journalists Oscar Figueredo Reinaldo and Ladyrene Pérez, infrastructure works were undertaken for an investment of 510,000,000 pesos.
Among those executed are 11 kilometres of highways and the same number of network of aqueducts; 1.5 km of sewage network; 8 km fibre optic network; 6.6 km of public lighting; the parcelling of 70 hectares and the manufacture of a waste treatment plant.
As of November 2016, 19 users in the ZEDM had been approved. Their names and characteristics have been well publicized by the press. From then to January 2017," said Cubadebate, three new users were authorized.
One is Fidas do Brasil S.A., a wholly foreign capital company. Another, Logistics Hotelera del Caribe S.A., a joint venture of the Spanish company Iberostar Hotels & Resorts and the Cuban AT Comercial (the first wholesaler with foreign capital that will operate here and that will specialize in hotel logistics). And the third, is the Spanish group TOT Color S.A., one hundred per cent foreign capital and will work with metallic paints.
Regardless of the national origin of capital, we must clarify that all companies founded and established in the Mariel ZED are legally Cuban entities. Cubadebate also indicated that the investment amount of the 22 users in the Zone (all in Sector A) amounts to 956 940 300 dollars and generate 3,961 direct jobs.
One of the Cuban sources who spoke to the journalists of the digital site also reported that Sector A, which occupies only 9.3 per cent of the area of the ZEDM, has a potential employment in its period of full maturity of 70,000 a 120,000 workers.