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

Best practices in Public-Private Partnerships financing in Latin America
The legal framework allows pension funds to invest only in
instruments expressly authorized by law or by the investment
regulation. Investment regulation establishes that such funds
can only be invested in financial assets of public offer due
to liquidity issues and the relative ease of the assessment.
Investment in structured debt can reach 95% of the portfolio
(depending on the type of fund).
Colombia
Investment in infrastructure has developed mainly indirectly
through corporate bonds and shares (9,591 million USD
– 3, 5% of GDP). The electricity sector takes the larger
participation of the infrastructure investment (84% of the
total infrastructure investment). Investment in private equity
funds (PEF) has significantly increased since 2007, when the
Investment Regime was established according to Decree 2175.
Presently, investment takes place in 35 PEFs, of which the
main funds are mainly associated with the energy sector, for
example, PEF Interbolsa energético, FCP CPVAL and FCP Tribeca
Fund I.
Beyond the energy sector and PEF, other areas have witnessed
much less participation of pension fund’s portfolio (1, 7%).
In this context, it is equivalent to 14.5% of the debt bonds
placement of local companies in the year 2010 or equivalent to
30% of private investment in transport and communications.
Concerning the present legal framework, Act 1328 of 2010,
as well as regulatory decrees, allow for greater diversification,
and depending on the opportunities of the projects that have
been presented and the existing investment plan, it would be
possible to add room for indirect investments in infrastructure
projects (for example, from a 30% limit of the bonds portfolio,
today the limit extends to 60%).
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