Bogota Mayor Sees City as Investor-Friendly Haven in Petro’s Colombia

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(Bloomberg) — Colombia’s second-most powerful elected official, Carlos Fernando Galan, is trying to turn its capital into an investor-friendly oasis in a nation governed by the radical left. 

Since taking office in January, the Bogota mayor has repeatedly clashed with President Gustavo Petro over their rival visions for the chaotic city of 8 million, which sprawls across a plateau 8,500 feet (2,600 meters) above sea level.  

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“We are going to create the conditions so that the private sector sees Bogota as a place where they will find opportunities and support for investment,” Galan said, in an interview in City Hall. 

If Galan can revive Bogota’s economy, which accounts for about a quarter of national output, keep its $6 billion metro project on track, and restore order to its crime-ridden streets, he’ll be a strong contender for a future run for the presidency. Petro himself served as mayor of Bogota from 2012 to 2016. 

Galan comes from a well-known political dynasty. His father was the frontrunner to become president when he was gunned down by Pablo Escobar’s Medellin cartel in 1989, and his elder brother Juan Manuel is a former senator who heads the Nuevo Liberalismo party. Several of his other relatives are also active in politics. 

Galan was elected with the highest vote in Bogota’s recent history, but his popularity has since dipped, falling to 47% in June, down 12 percentage points from three months earlier. Crime is by far residents’ biggest concern: 86% of people surveyed in an Invamer poll said they feel “insecure” or “very insecure”, higher than comparable figures for the nation’s other major cities. 

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The mayor recognized that crime is a significant problem that needs addressing, and said that the city plans to invest in more cameras to help police react faster to robberies and homicides.

Rival Visions

To boost Bogota’s economy, Galan said the city will grant tax breaks to new businesses. His administration also wants to help construction by accelerating the process of awarding building licenses, he said. 

Medical equipment, pharmaceuticals and data centers are among the sectors with strong growth potential, he said.  

“We want to be a kind of oasis in the sense that people know that if they come to Bogota, this government will try to protect those investments,” he said. 

His business-friendly approach puts him at odds with Petro, who has hiked taxes on companies and wealthy Colombians to fund social programs as he tries to overhaul Colombia’s economic model. Galan and other mayors are aware that most major investment decisions depend more on policies taken at a national level.

Tense Relationship

During the mayor’s race campaign, Galan clashed with Petro over Bogota’s elevated metro project, which the president said should be shelved and replaced with a bigger one underground. The mayor has also ordered city workers to ignore so-called Civic Days declared by Petro, during which public employees don’t need to work. 

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They also disagree over the extension of a highway that seeks to eliminate traffic bottlenecks in north Bogota. Petro opposes the project, saying it’ll cause environmental damage. 

Candidates allied to Petro lost in the nation’s five biggest cities, setting up tense relationships between local leaders and the central government. 

Many regions are anxious to improve the poor transport links that have held back their industry and agriculture for centuries. Colombia ranked 102 out of 140 nations in road infrastructure quality, behind Bolivia and Sierra Leone, according to a 2018 study by the World Economic Forum. 

However, Petro won the presidency on the pledge to phase out fossil fuel use, and has argued that projects to improve drinking water quality, the environment and education do more for the poor than highway construction.

Underperforming Company 

Another pillar of Galan’s economic platform consists of trying to revive its underperforming telecommunications company, Empresa de Telecomunicaciones de Bogota SA, or ETB. The city is looking at possible “alliances” for the company after tough competition wiped out four-fifths of its value. He didn’t elaborate on what such a deal might involve. 

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ETB market capitalization slumped to 284 billion pesos ($70 million) this year, down 84% from a decade earlier. 

“We haven’t thought about selling ETB, but I believe we must look for alternatives that allow the investment that is there to continue producing or being an advantage for Bogota,” Galan said. 

Galan said the city will protect its “crown jewel,” Grupo Energia Bogota SA, or GEB, by keeping it free of political interference. Bogota has a 65.7% stake in the power and natural gas utility, which is the nation’s fourth-most valuable publicly-traded company. 

GEB will continue to expand across Latin America, and invest in more renewable energy projects, Galan said. 

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