CARIBBEAN-LAC region leads developing countries in attracting PPPs

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LIMA, Peru, CMC -The 12th edition of the Public-Private Partnerships (PPP) Americas has started here. Delegates were told that Latin America and the Caribbean lead the world’s developing regions in attracting private participation in infrastructure projects.

According to information released by the event’s organizers—the Inter-American Development Bank (IDB) and Peru’s Ministry of Economy and Finance—in the past 30 years, the region has received an estimated US$770 billion from the private sector, almost 25 percent more than the countries of East Asia and the Pacific.

According to the data, investing in resilient infrastructure directly impacts economic growth and long-term competitiveness, with every dollar invested in quality infrastructure generating up to four dollars in financial return.

According to the latest Infrascope, the diagnostic tool commissioned by the IDB and developed by Economist Impact, the number of PPP projects in the region has grown by 25 percent between 2022 and 2024, and total investment has increased by 15 percent.

“International and regional experience both show that developing and maintaining infrastructure under the PPP model brings significant improvements in efficiency and innovation, optimizes the use of public resources, and maximizes the economic and social impact of projects.”

In recent years, the IDB said it had supported more than 50 PPP projects in the region, with the potential to mobilize US$18 billion in high-impact investment.

In 2024, the IDB contributed to closing US$2.95 billion in five key infrastructure projects and initiated contracting processes worth US$1.9 billion to modernize infrastructure services in several countries.

In 2020-2024, IDB Invest invested US$25.319 billion in 25 PPP projects in the region.

More than 850 leaders from the public and private sectors, investors, and international experts will attend the meeting, which is described as the foremost event on PPPs in Latin America and the Caribbean.

The meeting will address the challenges and opportunities that PPPs provide to attract private investment and help close infrastructure gaps.

IDB Executive Vice President Jordan Schwartz told the conference that public-private partnerships are a powerful tool for boosting investment, creating jobs, and improving the quality of life in Latin America and the Caribbean.

“When structured correctly, they expand access to essential services such as water, energy, transportation, health, and education, strengthening our countries’ economic and social development,” Schwartz added.

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