CAF-AM highlights the role of private capital in the development of infrastructure in Latin America and the Caribbean

CAF-Asset Management Corporation (CAF-AM), CAF -development bank of Latin America and the Caribbean- and the Financial Times organized the 'Infrastructure Investment in Latin America and the Caribbean' event, where investors, asset managers, regulators, and experts gathered to discuss the role of private capital in the sustainable and inclusive development of the region.

Alberto Ñecco, CEO of CAF-AM, was one of the main speakers at the event, participating in the panel 'Fireside Chat: Making the Case for Debt Funds in Infrastructure Investment'. Ñecco highlighted the significant infrastructure gap in Latin America and the need to increase the use of Public-Private Partnership (PPP) mechanisms to finance essential projects.

"As we have already heard, the infrastructure gap in the region is large, and fiscal positions often push countries to increase the use of PPP mechanisms," said Ñecco. He explained how CAF-AM is acting as a bridge between local savings, such as pension funds, and the financing of long-term infrastructure projects that require private sector involvement. "Our loans are very well protected, and our investors are well taken care of. There are very good opportunities in the region, and it is essential to partner with those who really know the market, like CAF-AM," he added.

During his remarks, Ñecco also highlighted the work of CAF-AM in countries such as Colombia, Uruguay, and Costa Rica, where it has launched and invested in several funds, attracting private financing for critical infrastructure projects. He also noted how the institution is raising capital and expanding its operations to other countries in the region to support sustainable project development. In the case of Peru, Ñecco pointed out that the country has awarded twelve infrastructure projects worth six billion dollars so far this year, highlighting the continued progress in countries like Chile and Colombia.

"Governments are realizing the importance of institutional strength and the need for technical and financial assistance to make these structures financially optimal", said Ñecco. He also emphasized that private sector participation, through PPPs, is one of the preferred mechanisms to overcome fiscal constraints and advance infrastructure development.

This event also featured the presence of the President of the Dominican Republic, Luis Abinader, who opened the session by highlighting the favorable economic context of the country and how macroeconomic stability has helped attract foreign direct investment. Among the key sectors discussed, emphasis was placed on the development of the energy sector and the infrastructure required to transform the Dominican Republic into a world-class logistics hub.

The meeting in New York was a key opportunity to explore innovative financing models and opportunities in the region, highlight the importance of private capital in closing the infrastructure gap, and demonstrate how CAF-AM, along with other stakeholders, is leading the way in attracting long-term, sustainable investment in Latin America and the Caribbean.