Infrastructure Investment: The Big Shortfall
As LatAm stares down a growing list of infrastructure needs, builders and governments hope private lenders return. The only certainty is multilateral and state lending.
LatAm has woeful roads and dreadful ports, even by emerging
markets standards. Mexico’s creaking ports and
airports leave it dependent on exports to the US, while
Brazilian growth is thwarted by poor networks. Other countries
face similar challenges in getting their goods out and
fulfilling the economic potential touted by so many this
by Ben Miller
Brazil’s 2014 World Cup and 2016 Olympics grab
headlines, as do multibillion dollar national infrastructure
investment plans. However, most of the deals that have to
happen are still only being talked about and the actual flow of
committed capital is relatively small.
Funds are available. A lack of bankable projects and
incentives for the private sector has kept investment away,
leaving much of the heavy lifting to government sources such as
Mexico’s Banobras and Brazil’s BNDES.
Ambitious infrastructure plans have been revised, as the
continent risks falling short of its goals...
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