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

EXECUTIVE SUMMARY
The conference dealt with recent efforts, made by the
governments of Latin American and Caribbean (LAC) countries, to
support the financing of their Public - Private Partnerships (PPPs)
programs, and with the lessons learned from such efforts.
Between 2005 and 2009, the region maintained a growing
trend in investments made through PPP schemes. In comparison
to other regions, LAC was not affected by the global financial
crisis to the same degree. In particular, projects in Brazil (energy
sector) and Panama (Panama Canal expansion) mitigated the
negative effects of the global financial crisis.
Following that line, the sectors that have concentrated
higher levels of investment are energy and transport, while
telecommunications, water and sanitation have not witnessed
significant levels of investment. It should be noted, however,
that more investment in ports, water and sanitation is needed.
After the crisis, there has been decreased debt participation,
an increase in risk aversion, as well as higher contributions, in
the form of subsidies or payments, from governments to PPPs.
Although the recent trend in investments in infrastructure
can be considered positive, there are still obstacles that limit
further developments and PPP financing. In this sense, the
participation of pension funds can be important. Among
the factors limiting greater participation of pension funds in
infrastructure projects are the delays in PPP process, the lack
of technical analysis to define the project costs, the existence
of other more attractive assets and more guarantees. The
political commitment on regulatory stability and the provision
of a clearer commitment for investment, as well as capital
market development, play important roles in promoting
infrastructure funding.
The participation of pension funds can be facilitated by a
regulatory framework incorporating standart evaluation
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