Development in Latin America and the Caribbean (LAC) faces significant challenges; one of the most critical is to increase investment in infrastructure projects.
In this regard, data from the Inter-American Development Bank (IDB) and other institutions suggest that there is a significant gap: around a 5% investment of regional gross domestic product (GDP) is needed to reach the development levels of countries such as South Korea or Japan.
Challenges and Opportunities
LAC governments do not have the financial resources needed to bridge this investment gap. It is therefore essential to increase private participation in the construction, operation, and maintenance of projects in various sectors including highways, renewable energy, water and sanitation, solid waste, hospitals, and schools.
Public-Private Partnerships (PPP) are an alternative for the development of strategic infrastructure projects. In order to successfully implement PPPs, it is necessary to take a series of actions to bolster the structuring process. These range from the creation of a regulatory framework to appealing contractual clauses for the private sector. This will improve the probability of success in infrastructure development and fulfillment of the goals set by governments and companies.
Our Strategy
Our innovative solution to support PPP development draws on IDB Invest’s experience and leadership in financing this type of project and developing sustainable infrastructure to improve the prospects for success of PPPs in the region. With this in mind, we offer two kinds of support:
• For LAC governments, we advise on the design and implementation of bankable bidding processes, including the financial, legal, and socio-environmental structure of tender documents and PPP contracts. We provide support during the bidding processes, during the definition process of winning bidders, as well as during the development and implementation of global- scale bid promotion.
• For the private sector, we support the presentation of Private Initiatives, aiming to create projects that have an impact on the development and mobilization of private capital.
We seek to implement sustainable solutions in our support of PPP development, including climate change mitigation and adaptation actions; gender, inclusion, and diversity factors; as well as mixed financing based on the needs of each initiative to improve the bankability of projects and the quality of regional infrastructure.
Publications
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July 2019Report: Building BIG - Brazil's challenges and opportunities in infrastructure. A public-private perspective
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March 2019DEBrief: Public-Private Partnerships (PPPs) for Infrastructure: Spotlight on Colombia
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July 2019DEBrief - Building BIG: Brazil’s Challenges and Opportunities in Infrastructure. A Public-Private Perspective
Ricardo De Vecchi works in Investment Management at BID Invest, based in Washington, D.C., where he heads 'ad interim' the consultancy department in Public-Private Partnerships in Latin America and the Caribbean. Ricardo has more than 15 years of experience in the development of infrastructure projects.
Previously, he was Coordinator of Mexico and Peru for the Program of Emerging and Sustainable Cities, of the Inter-American Development Bank; Vice President of Latin America, of the firm CG / LA Infrastructure, and member of the Mexican Foreign Service.
Ricardo has two master's degrees, in International Relations from Georgetown University, and in Diplomatic Studies from the Mexican Diplomatic Academy, as well as a Bachelor's Degree in International Trade from the Monterrey Institute of Technology.
Contact: ricardod@idbinvest.org