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

Day 1 - SECOND SESSION
pension funds had US$ 17 trillion. This greater participation
of pension Funds materializes with changes in the regulatory
framework, allowing for a certain flexibility and adjustment in
investment strategies.
Situation of Infrastructure Investment
Traditionally, exposure of institutional investors in the
infrastructure sector has been of an indirect nature. That is
to say, investments were made through the acquisition of
shares (for example utilities), debt (bonds), or through real
estate portfolios. The first funds to finance infrastructure were
established in Australia, in the mid 90’s. In the 2000’s, low
cost debt availability encouraged the taking of funds assigned
to infrastructure.
Institutional investment in the infrastructure sector is not
significant. Pension funds in Australia and Canada are the
ones that have made more investments in infrastructure, but
in Europe, infrastructure market and investment in such assets
has been limited. In the United States, there is little investment
in infrastructure, while, in recent years, public pension funds
in Korea have aggressively invested in other countries.
The LAC Region case
David Tuesta noted that while the LAC region has been
experiencing significant growth in recent years, this has
not been accompanied by a significant expansion of
infrastructure investment. In comparative terms, the figures
are substantially lower than those of emerging Asian
countries. In fact, in the last ten years, while the average
growth rate of GDP per capita was 3.5%, investment in
infrastructure accounted for 1% of GDP. Countries like
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