Photo: Investing in Latin America
Chile, Brazil, Peru, Mexico and Colombia are the countries in Latin America and the Caribbean most able to carry out sustainable public-private partnerships (PPPs) to develop infrastructure and increase access to basic services, according to the third edition of the Infrascope.
The report analyzes national environments for PPPs in the Latin American and Caribbean region. It was produced by the Economist Intelligence Unit (EIU) and commissioned by the Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank Group.
The environment for PPPs is improving in the region as rising demand for infrastructure prompts countries to redouble efforts to attract greater private investment. The gap between emerging and developed PPP readiness is narrowing. As a result, the report shows that a cluster of countries have improved their capacity and readiness for PPP investments. The top refomrer group is led by Colombia, Uruguay, Guatemala, Costa Rica, El Salvador, all of which have accelerated regulatory change and capacity building.
Moreover, the continued demand for infrastructure has contributed to the rise of PPP units and specialized agencies to promote and implement PPP investment over the past two years. Since 2010, three countries— Guatemala, Honduras and Uruguay—have added new PPP units or agencies, with four more underway. Strong institutional frameworks and a positive investment climate prove to be fundamental to managing PPP investments.