A promising year ahead for LatAm's infrastructure sector

By
Thursday, December 13, 2018

Next year will be positive for infrastructure investments in Latin America, with interesting opportunities in most of the region, according to BNamericas' Outlook 2019 intelligence series report.

The 2019 investment climate will brighten because elected governments will consolidate in major countries like Chile, Colombia, Peru, Argentina, Ecuador, Paraguay, and Costa Rica, removing the uncertainty seen in 2018, the report notes.

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Even in countries such as Brazil and Mexico, where politicians running on anti-system platforms won, infrastructure investments will continue to grow to spur economic growth.

Although most countries' investment plans prioritize roadworks, opportunities also arise in railway, metro, and airport projects.

And although most of the investments will come from the public sector, private sector players will find ample opportunity via public-private partnerships (PPP), particularly in countries such as Chile and Argentina. Both countries presented this year ambitious plans for transport infrastructure PPPs.

Most of the planned infrastructure projects include highways, which turned out to be particularly attractive for investments under PPP models.

Not only national governments are expected to implement more infrastructure PPPs, but also local and regional administrations in urgent need of financing.

Reducing corruption in in the sector, however, will remain a challenge despite the optimistic scenario. Especially various Odebrecht bribe scandals have rattled the sector throughout the region.