Financing Trends for Private Infrastructure in Latin America and the Caribbean

Abstract:     
Recent trends indicate that the private sector will play a growing role in the provision of infrastructure services in Latin America and the Caribbean. In the near term, the private sector could provide as much as 25% of the $40 billion to $50 billion in annual infrastructure investment needs. So far, the relatively high returns on equity investments have attracted a significant amount of capital, while long-term debt has been the main constraint on the amount of private infrastructure investment. These trends are documented, and their implications for financing infrastructure and the potential role of domestic capital markets are examined.

Number of Pages in PDF File: 11

Keywords: Infrastructure, Finance, Latin American and Caribbean

JEL Classification: H54

Accepted Paper Series