Just over a month ago, on March 24, the Special Meeting of Governors of the Inter-American Development Bank (IDB) took place in the city of Mendoza, Argentina. At the time, the Minister of Planning, Development, and Management, Dyogo Oliveira, defended the increase of private investments in infrastructure projects in Brazil. He stressed the importance of creating financial guarantee mechanisms capable of leveraging private investments in infrastructure projects for Latin America, reports Infrastructure Projects expert Felipe Montoro Jens. Read this article at odiario.com about Felipe Montoro Jens
“I propose that the IDB promote studies that point to more efficient solutions for project risk management and facilitate the leverage of private investments in the region,” Dyogo Oliveira suggested.
Argentina’s finance minister and chairman of the Bank’s Board of Governors, Luis Caputo, agreed with the minister of Planning’s proposal that the IDB should work to leverage private investment in Latin America. The Secretary of State for Economy and Business Support of Spain, Garrido, highlighted the dynamism of the markets of the region and highlighted Brazil as the priority country for Spanish investment, reports Felipe Montoro Jens.
According to Minister Oliveira, the need for new investments from the countries, with the support of the IDB, is necessary to face the Industry 4.0 revolution, which he says is already coming. “The challenge that was to build roads and sanitation to provide water now, at the same time, we must also invest in a more modern infrastructure to promote the fourth industrial revolution,” said Dyogo Oliveira.
Felipe Montoro Jens reports that, according to the president of the Inter-American Development Bank, Luis Alberto Moreno, the Latin American challenge refers to the convergence of infrastructure, as well as to improved connectivity between countries – since investments are below what is necessary. For the Bank’s president, the region will not be able to achieve the necessary development to overcome obstacles to growth without this. Moreno also emphasized that the IDB has adapted to the new social demands and, as a result, has reinforced policies of gender equality, as well as environmental sustainability in the execution of projects.
Minister Dyogo Oliveira also pointed out that Brazil has made several Public-Private Partnerships (PPPs) for public works, emphasizes Felipe Montoro Jens. “The actions that the Brazilian government has been taking in the area of infrastructure and financing for development are well aligned with the best practices of the countries of the region and are very much in line with the guidelines and actions of the IDB and other multilateral agencies of which Brazil participates, “said Oliveira.
According to the news portal of the Ministry of Planning, Development, and Management, PPPs are up in Latin America and the Caribbean. “Over the past decade, there have been about 1,000 infrastructure PPP projects valued at $ 360 billion,” wrote the March 24 story about the IDB Special Governors’ Meeting. However, according to the Ministry of Planning’s assessment, despite the historic gain, many projects are unable to mobilize private capital, the report added.
According to the Ministry of Planning, Development, and Management last year, IDB loans to Brazil totaled about the US $ 12.9 billion – 20% more than in 2016, concludes the expert Felipe Montoro Jens. Follow: https://twitter.com/felipemontoroj