PPPs to Improve Connection Between Latin American Cities

CAF—development bank of Latin America—presented in Bogota the book “Public-private Partnerships in Latin America: Facing the challenge of connecting and improving cities,” which analyzes the opportunities and advantages of PPPs to boost infrastructure in the region.

The publication presents several case studies that produce three key challenges in terms of PPPs: New infrastructure to adapt the model to the field of telecommunications and water; the need to transform institutional governance; and the application of the PPP model in cities.

The event was attended by CAF representative in Colombia, Carolina España, Colombian government delegates and private sector representatives.

España highlighted the case studies which produced opportunities, learning experiences and innovations for Latin America. “This publication seeks to generate knowledge, and for national and local governments that wish to use this model to benefit from the experiences of other countries,” he said.

The director of Infrastructure of the National Planning Department, Luis Felipe Lotta, noted the importance of taking stock of private initiatives and synergies with the public sector. “We have been working strenuously since the 1990s. We have grown and matured, but we still have a long road ahead, not only in infrastructure but in other sectors as well,” said Lotta.

The publication is one contribution to the literature on this type of partnerships, which have been studied by CAF since 2010 with the book “Public infrastructure and private participation: Concepts and experiences in the Americas and Spain.” This edition was followed in 2015 by “Public-private Partnership in Latin America: Learning from experience.” This new issue is the third book in the series.

The most prominent cases in the book include the institutional change that led Colombia to transform its procurement scheme through concessions with a PPP model that allowed the nation to develop an ambitious program for the construction of fourth-generation highways. This edition ends with a chapter on cities and how their sustainable growth can be leveraged with a correct implementation of the model.