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

Day 1 - SECOND SESSION
Project Infrastructure Tipe Months
Olmos Water diversion Co-financed 89
Red Vial 5 Road Self-financed 59
Red Vial 6 Road Self-financed 90
Lima Airport Airport Self-financed 29
IIRSA Norte Road Co-financed 58
Emfapa Tumbes Sanitation Co-financed 59
Source: Payet. Prepared by: Author.
Table N.2
Processing time
in six concession
processes
development of PPPs and the participation of different players;
entities fragmented into different sectors and government
levels (duplicity); administrative and judicial restrictions that
limit decision-making process of key players in concessions
(those who make decisions must review several times the
documents signed in order to avoid taking judicial risks);
limitations in the authority responsible for process decisions
and risks that are not duly allocated and evaluated; and the
desire to accelerate infrastructure development based on
Pension Funds can generate inappropriate incentives.
For example, in the case of Peru, Tuesta mentioned that the
infrastructure investment system features some weaknesses.
The main weakness is the bureaucratic process that halts PPPs.
Faults in social risk contracts and unfavorable framework for
supervision are also present. Moreover, delays in PPP process
affect the duration of projects and add uncertainty to the
process. In a six-project sample, the average time is of almost
six years.
Proposals to improve Pension Funds
participation in Infrastructure
In order to increase pension fund participation in the
infrastructure sector, Della Croce recommended that
governments support long-term investments. In this sense, he
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