Pacific Alliance advances infrastructure fund
September 10, 2018 |
Peru's finance minister says the PA has about $86bn in projects to be offered as PPPs and has signed a contract with the IDB to select a management unit
The Pacific Alliance (PA) has advanced talks among one another regarding a potential infrastructure fund that would help the four countries facilitate around $86bn in projects, Peru's Finance Minister Carlos Oliva told LatinFinance.
A potential fund between the PA members - Chile, Colombia, Mexico and Peru - is also expected to feature a contract with the IDB, enabling the multilateral to select a management unit for the proposed fund.
"The fund would be 100% private," Oliva said in an interview. "The management group would be in charge of marketing projects and managing the fund."
Once each country has a viable project opportunity, it will present the initiative to the managing fund before moving to financing stages.
"In the case of Peru, the new National Infrastructure Plan will be very important to present projects and secure financing," Oliva added.
Peru, like several countries across the region, was scarred by Brazilian construction firm Odebrecht's graft scandal, which left the country's project pipeline at a standstill. But Oliva said parts of the Odebrecht effect had calmed down, giving way for infrastructure opportunities.
"I think a large part of the noise has quieted down," he said. "There are still issues on the table because many cases are now in the judiciary, but I think the market has recognized that there are channels in place to resolve cases."
For the full interview, look out for LatinFinance's September/October edition.