Opportunities for the establishment of public-private associations in Latin America

In order to compile the lessons learned in the structuring and management of public-private association models in Spain, Costa Rica, Colombia, Mexico and Chile, CAF, Development Bank of Latin America, prepared the publication Public-Private Association in Latin America: Learning from Experience.  

The event was inaugurated by Jose Icaza, Coordinating Minister (S) of Strategic Sectors, and CAF's Director Representative in Ecuador, Bernardo Requena. It also included the participation of José Manuel Vasallo, CAF consultant; Azhar Jaimurzina, ECLAC's Chief of the Infrastructure Unit; Lucía Meza, CAF's Director of North Projects; and Nathalie Cely, Coordinating Minister of Production, Employment, and Competitiveness.

Minister José Icaza stated that the position of Ecuador and the region on the competitiveness map depends on the modernization of the State and efficient work in all the territory with adequate infrastructure. In this respect, he highlighted that public-private alliances have become an important pillar for the growth of the economy. He also stated that the country is going through a transformation process by strengthening PPAs, which in turn strengthen the mixed capital operations that benefit the citizens.  

CAF's Director Representative in Ecuador also stated that the model has been understood by many countries of the region as an opportunity to continue promoting infrastructure. In this respect, Requena highlighted the importance of the publication, allowing an analysis of the experiences of the case studies presented. In addition, he also highlighted the institutional framework as a key factor in the implementation process of PPAs and the importance of having a good portfolio of projects. 

At the same time, José Manuel Vasallo pointed out that the system is a tool that governments have to promote investments in infrastructure.  During the presentation, he stated that the publication has an academic-practical nature, as it examines the evolution of Latin America with respect to investment in infrastructure through a global vision, and describes the future challenges that the region is facing to implement PPAs. Among the advantages, he highlighted the greater technical efficiency and the improvement in the quality of service. 

Nathalie Cely, Coordinating Minister of Production, Employment, and Competitiveness, pointed out the coincidence with the presentation of the law project prepared by the Ministry of Production, Employment, and Competitiveness, together with the other economic ministries, to strengthen and explain Ecuador's legal framework regarding PPAs. She added, "Although there is a legal framework for public-private alliances, this relationship must be strengthened. Therefore, the role of the state is important within this model to provide citizens with greater access to quality services ". 

The five case studies were selected based on criteria such as geographic coverage, type of project, and its singularity: an urban public transport interchange in Madrid, two highway concessions in Costa Rica, an airport in Colombia, a municipal administrative center in Mexico, and a prison program in Chile.  

Thus, for its shareholder countries, CAF is more than a bank, it is a strategic ally that provides not only financing but also support for the design of public policies.  

To see the complete publication, click on http://scioteca.caf.com/handle/123456789/758