Infrastructure Insight: Latin America

Infrastructure Insight: Latin America

Summary

With a total of 421 projects valued at US$241.5 billion, Brazil has the highest number of infrastructure projects in the pipeline. This is followed by Chile with 309 projects (US$117.1 billion); Peru with 230 projects (US$83.1 billion) and Mexico with 209 projects (US$98 billion). Colombia and Argentina also have a large number of projects, with 114 (US$66.8 billion) and 92 (US$58 billion) each. Among the smaller markets, Bolivia and Panama have pipeline values of US$43 billion and US$32.7 billion, respectively.

Investment in infrastructure is at the core of discussion for the development of Latin America. During the CAF Conference: Infrastructure for the Integration of Latin America, which took place in Madrid in July 2018, ministers of economy, finance and planning, representatives of the private sector and experts from Latin America and Spain analyzed and identified opportunities for infrastructure development in Latin America over the next decade amounting to US$4.5 trillion, in strategic sectors such as roads, ports, airports, telecommunications, energy, water and sewerage.

A combination of favorable demographic trends and the implementation of a number of legislative reforms throughout the region are generating a wide range of infrastructure investment opportunities for investors. It is projected that the total value of infrastructure spending will reach US$142.5 billion in 2019 and US$175.8 billion in 2020, based on the current pipeline of 1,711 large-scale projects with a combined value of US$829.2 billion. This includes all projects from announcement stage to execution. Brazil, Chile, Mexico and Peru are set to drive overall investment between 2018 and 2022 with an expected annual average spend of US$36.3bn, US$17bn, US$13bn and US$12.4bn respectively.

The electricity and power sector has the highest value of projects in the pipeline, with US$381.9 billion, while rail projects valued at US$204.3 billion account for the second largest sector. Roads recorded the third-largest share, with US$129.3 billion; followed by airport and other projects with US$91.7 billion and water and sewerage projects with US$22.1 billion.

In addition, of the total infrastructure construction pipeline, 56% of projects by value are in the pre-planning and planning stages, while 44% are in the pre-execution and execution stages. Moreover, the public sector is expected to directly finance 40% of the total value of projects while a mix of public and private sources will finance 33% of the total value. The remaining 28% will be financed by private sector, the majority of which are electricity and power projects.

The report "Infrastructure Insight: Latin America", provides a detailed analysis of the infrastructure sector in Latin America, including the state of current infrastructure, the regulatory and financing landscapes, forecast spending across all key sectors and the major projects in the construction pipeline.

The report covers all key infrastructure sectors: roads, railways, electricity and power, water and sewerage, telecommunications, and airports and ports.

Scope

• A concise analysis of the economic and political context for infrastructure in Latin America.


• An in-depth assessment of the current state of infrastructure in Latin America, including roads, railways, electricity and power, water and sewerage, telecommunications, airports and ports.


• Five-year forecasts of construction output for each sector, and an analysis of the project pipelines, with details on all major projects, their funding mechanisms and leading contractors.


• A focus on main political and financial institutions involved in the infrastructure market, as well as the competitive and regulatory environment.

Reasons to buy

• Assess the current state of Latin America infrastructure, and the main drivers of investment, including the key institutions and financing methods.


• Investigate forecasts and gain an understanding of key trends in each of the main infrastructure sectors.


• Analyze the main project participants operating in each sector, to better understand the competitive environment.


• Identify top projects by sector, development stage and start date, to inform your expansion strategy.