Best Practices in PPP Financing Latin America - e-Institute - World ...

Best practices in Public-Private Partnerships financing in Latin America
efficiencies along the whole project cycle and establish a
project history that reduces future costs of financing.
In general, three main lessons in PPPs can be drawn:
(i) there are some sectors that are easier than others:
telecommunications is the sector with more private financing
(receiving almost 50% of the investment, even though
merely as private financing and not through PPPs) whereas
the hardest sector has been water. In between, we find
the transport and energy sectors; (ii) investment has been
concentrated in a few countries, perhaps associated with the
rapid growth experienced in these countries. Conditions need
to be fulfilled in order to make these projects more attractive
to private investment through PPPs. Perhaps it is associated
with the rapid growth experienced in these countries; (iii) the
vulnerability revealed by the crisis. Investors now want to
invest in safer projects, from a legal and regulatory point of
view. In this respect, projects receiving local financing faced
the crisis better.
Likewise, the WB is interested in having its loans leveraged
with other funds, particularly in a world where capital flow is
going to be restricted. He pointed out that the problem is not
necessarily associated to the lack of financing, but that a worse
deficiency is not to have well structured investment projects.
Lastly he metioned that the WB has internally organized a
team that includes all competencies and skills related to a
projects’ life cycle: structuring, financing, management and
supervision of the project, and for that purpose, there is now
more interaction with the IFC. However, the development of
competencies and skills is still a very significant aspect in the
WB agenda and in the agenda of its technical team.