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The Infrascope—a tool designed to evaluate the capacity of countries to implement sustainable and efficient public-private partnerships (PPPs) in infrastructure—is intended to help countries achieve that essential improvement. The 2017 Latin American and Caribbean Infrascope measures a country’s ability to mobilise private investment in infrastructure through PPPs. This is the fifth edi -tion of the Infrascope for the region, and features a new methodology to reflect the latest industry developments for infrastructure PPPs. As part of this change, new topics have been incorporated such as environmental and social sustainability, fiscal control and budgeting, transparency and accountability, and new financing instruments.
Although past editions of the Infrascope are not comparable to the current one, the results of the Infrascope show that the environment for infrastructure PPPs in the region has been progressing, with countries striving to close the investment gap.
New legislation is being implemented in Argenti -na, El Salvador and Nicaragua, while other coun -tries with more PPP experience, such as Chile, Brazil and Mexico, have opened up the PPP scheme to new areas beyond traditional infra-structure, to include sports arenas, parks, and educational and prison facilities. Moreover, countries have begun to incorporate new factors into the PPP equation, including climate change and disaster risk management, while other social as-pects, such as community consultations and gender goals, are still a work in progress for a majority of LAC countries. Transparency and accountability are also high on the governments’ agenda although countries could improve in the use of online tools such as published reports and the existence of dedicated PPP registries. On the issue of financing, the region continues to rely on international financial institutions (IFIs) and multi -lateral lenders to fund infrastructure needs, while other instruments are in need of advancement: opening up markets to local institutional lenders (such as private pension funds), issuing impact development bonds and green bonds, and accessing project development funds.
Governments in the region have plenty of work ahead in terms of meeting their commitments to the UN, which has identified proper infrastructure as one of its Sustainable Development Goals (SDGs), stating that infrastructure investments are crucial to achieving sustainable development and empowering communities. 3 The Infrascope can be a useful guide to help policymakers, inves-tors, law firms, construction firms and other stake -holders bridge this divide.
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