New book on role of public-private partnerships in infrastructure development

(Caracas, June 28, 2012). The book “Public infrastructure and private participation: concepts and experiences in America and Spain” was presented at the headquarters of CAF- development bank of Latin America - in Caracas. The publication prepared by the institution features concepts and experiences in development of public infrastructure and private participation in Latin America with the aim of promoting these innovative schemes of State-private sector cooperation.

"Investment in infrastructure is one of the key factors in the development and integration of the region and, as such, one of the priorities in the integrated development model that CAF is proposing for Latin America," Antonio J. Sosa, CAF vice president of infrastructure, said.

Sosa added that the institution was promoting increased investment in infrastructure: "Latin America has a deficit in this area. The region invests less than 3% of its GDP while China invests 10% and advanced countries an average of 5% to 6%"

"The challenge requires substantial financial resources, a wide range of advanced technology, and enormous institutional and management capacity. There is a need for the private sector to join the State's efforts to create synergies that strengthen its development," the CAF vice president said.

Accompanying Antonio J. Sosa at the book launch were: Gilbert Dao Yanés, president of the Venezuelan Chamber of Construction; Ignacio Fombona, CAF director of Financial Advisory Services; and Juan Carlos Saavedra, chief executive of CAF Sectoral Analysis and Programming.

Public infrastructure and private participation: concepts and experiences in America and Spain

The new publication examines a wide range of management models in various social and economic contexts, and will be an important reference for all involved in design and implementation of public policies.

For several years the region has been successfully developing infrastructure projects with the joint participation of public and private sectors, leading to an improvement in their technical conditions, and modernization of the regulatory and institutional frameworks.

The study considers that infrastructure is also an important instrument for economic and social cohesion, territorial structuring, spatial integration and improved accessibility.

The book also discusses the backward linkage effect that infrastructure can have on the national economy through the multiplier effect. The sector can be used as a countercyclical policy instrument during times of crisis, very useful for speeding up the process of reactivating the economy.

More information in the online publication Public infrastructure and private participation: concepts and experiences in America and Spain