Private Activity in Latin America Declined Sharply But Became More Dispersed in 2010
In 2010, 54 infrastructure projects with private participation reached financial or contractual closure in 11 low and middle-income countries in Latin America and the Caribbean, involving investment commitments (hereafter, investment) of US$12.3 bi...
| Main Author: | |
|---|---|
| Language: | English |
| Published: |
Washington, DC
2012
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2011/08/15664816/private-activity-latin-america-declined-sharply-more-dispersed-2010 http://hdl.handle.net/10986/10877 |
| Summary: | In 2010, 54 infrastructure projects with
private participation reached financial or contractual
closure in 11 low and middle-income countries in Latin
America and the Caribbean, involving investment commitments
(hereafter, investment) of US$12.3 billion. Infrastructure
projects implemented in the 1990-2009 period attracted new
investment of US$21.9 billion, bringing total investment in
infrastructure to US$34.2 billion in 2010. Such level of
activity represents a 37 percent drop by investment and a 24
percent decline by the number of projects from 2009. The
decline in regional activity was driven by the slowdown in
new projects which saw their investment drop by 62 percent
from 2009. Most of the decline in new projects occurred
among large projects (US$500 million or more) which saw
their investment fall by 76 percent in 2010 compared with
2009. By contrast, additional investment in projects
implemented in 1990-2009 remained stable compared with 2009.
Regional investment was less concentrated on Brazil and more
widespread across other countries than in the previous year.
Brazil saw its share in regional investment decrease from 81
percent in 2009 to 53 percent in 2010 due to a 59 percent
decline in investment in the country. Certainly, Brazil
accounted for the decline in regional investment. If Brazil
were excluded, investment in the region would have grown by
50 percent in 2010 compared with 2009. The 11 countries with
new projects in 2010 represented a larger geographic scope
for new activity than in 2009 and 2008 when only eight
countries implemented new projects each year. In 2010 Brazil
had 18 new projects, Argentina and Mexico followed with
eight and seven new projects, respectively. Chile, Colombia
and Peru each had five new projects. Nicaragua had two
projects while Guatemala, Honduras, Jamaica, and Panama each
implemented one new project. |
|---|