Private Financing of Public Infrastructure through PPPs in Latin America and the Caribbean
Financing public infrastructure is an important challenge in the growth agenda of the Latin America and the Caribbean (LAC) region. Subject to fiscal constraints, many countries in the LAC region have been looking at private sector financing as an...
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| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/632411492665324317/Private-financing-of-public-infrastructure-through-PPPs-in-Latin-America-and-the-Caribbean http://hdl.handle.net/10986/26406 |
| Summary: | Financing public infrastructure is an
important challenge in the growth agenda of the Latin
America and the Caribbean (LAC) region. Subject to fiscal
constraints, many countries in the LAC region have been
looking at private sector financing as an alternative for
financing public investment. With different degrees of
success, countries in the region have been using
Public-Private Partnerships (PPPs) since the late 1980s.
Although the needs of investments in public infrastructure
vary by country and by sector, it is clear that public
resources might not be enough. While public infrastructure
will continue to be largely financed by the public sector in
the LAC region, significant room still exist for private
sector financing of public infrastructure. In Advanced
Economies (AEs), such as Australia, and the United Kingdom,
PPP projects account for 10 to 15 percent of overall
infrastructure investments. This report analyzes the
challenges and policy options to increase private sector
financing in public infrastructure in the LAC region through
PPPs. Given the diversity of LAC countries, the report takes
a conceptual approach and analyzes the different
alternatives of private sector financing of public
investments that different groups of countries can utilize.
This approach also takes stock of the different status and
degree of institutional and financial development in LAC
countries in light of ongoing promising legal reforms and
financial innovations for infrastructure finance in the LAC
region, as well as in AEs and other regions. |
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