For examples of sophisticated infrastructure financings in
Latin America, look no further than Peru. In recent years the
Andean nation has served some of the region’s most
Infrastructure report: Peru: Stop and go
A number of large infrastructure projects are due to be financed in Peru this year. But they will first have to overcome a number of hurdles.
By Karen Schwartz
The Vía Parque Rímac road project is just one
example. The 1.4 billion sol ($527 million) deal for a
public-private partnership was one of the
country’s largest-ever project financings, and was
fully subscribed by local accounts. Similarly, the
country’s largest hydroelectric plant, Cerro del
Águila impressed when it closed a $534 million loan
financing in 2012.
Yet despite these successes and Peru’s pressing
need for more infrastructure, projects are coming to market at
a frustratingly slow pace.
The stakes are rising. AFÍN, a group of
concessionaires, estimates Peru needs projects worth some $88
billion between 2014 and 2018 to close an infrastructure
deficit. It says around two-thirds of that should be financed
Infrastructure finance bankers...
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