We have a strong track record in getting solar and wind projects off the ground in Latin American and Caribbean countries, and continue to back such ventures in places the market is not yet serving efficiently. Other areas of interest to us include geothermal energy, energy-efficient street lighting, smart grids, battery storage for solar power and off-grid distributed power generation for remote areas. We also support natural gas projects to provide energy alternatives that are cleaner than other fossil fuels such as diesel.
The need for better urban mobility creates a demand for long-term private investment in major physical infrastructure projects such as airports, seaports, subways, roads and bridges. We are also promoting investment in fuel-efficient bus fleets and other environmentally friendly public transit options. The transportation sector typically accounts for a high percentage of a country’s greenhouse gas emissions, so governments want to find cleaner alternatives to meet their commitments under the Paris Agreement.
Water and Sanitation
About 80 percent of households in the region have ready access to potable water, but only 35-40 percent are connected to a sewage system. We believe that private capital is needed to improve those numbers, so we are looking at ways to incentivize and support greater investment in water and waste management. One potential area for investment involves waste-to-energy systems that produce fuel from trash and other solid waste.
We are also working on attracting private capital to invest in public infrastructure projects that address social needs, including hospitals and schools. Although this type of arrangement is still unusual in Latin America and the Caribbean, in some parts of the world public-private partnerships are created in which a private company not only designs and builds the school or clinic but also manages ongoing “soft” services such as catering and maintenance.