March 27, 2019
The decision by Mexican President Andrés Manuel López Obrador to cancel the $13-billion Mexico City airport project was an initial shock to investors, sparking concerns that the important role of the private sector in infrastructure development wasn’t fully appreciated. But López Obrador’s subsequent willingness to reach a settlement with holders of the airport’s $6 billion in bonds seems to have calmed investors — for the moment.
Despite such fits and starts, Latin America’s infrastructure procurement programs have largely been successful over the past decade. The region’s strong economic growth, coupled with growing demand for infrastructure improvements, have provided a wide menu of pote
Governments must preserve attractive fundamentals and investor-friendly policies to attract capital