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

Day 2 - PANEL I
have been developed in Mexico since 2005. The experience of
Acciona with the approach to these projects is that financial
entities are more interested in federal projects, because they
have the guarantee of the federal government.
Navarro noted that for state projects, additional guarantees
are required as an alternate payment source, either through
federal participation or state tax allocation. The states are
sometimes reluctant to structure these guarantees, even
though their legal framework is well structured. Creating a
federal guarantee fund to support these PPS projects would be
useful, as well as creating an adequate legal framework.
He concluded by noting that projects with high technological
risk are more difficult to finance. In these cases, it is helpful
to set up limits for penalties and to state specifications that
correctly transfer risks to the investor.
Carmen Pérez de Muniain took up again the subject of
pension fund financing. She pointed out that infrastructure
investment returns are generally correlated with a country’s
nominal GDP growth, aligned to the objective of the funds
for attaining sufficient pension/salary replacement rates at
the moment of retirement. The returns on investments in
infrastructure diversify the returns on other assets, improving
the profitability/risk relation of the portfolio.
She presented the instruments through which investments
of Pension Funds could be materialized, highlighting, among
others:
• The most senior bonds issued by the party investing in
infrastructure, qualified by a rating agency, are an ideal
option for direct investment of Pension Funds.
• The most junior bonds issued by the operator, qualified by
a rating agency, are an ideal option for direct investment
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