Por: Miguel Carrillo Naranjo - Hamkke Consulting
According to the 2013 IDB infrastructure strategy, the fund needs in Latin America to bridge the infrastructure gap by year is around US$100 billion. But the big picture is, that between 2013 and 2030 USD$57 trillion in infrastructure investment will be globally required.
Most of the governments do not have an ample budget surplus to undertake all infrastructure needs in their countries, so here is where PPPs appears as a main tool to develop country´s infrastructure. The World Bank defines PPPs as “a way of contracting for developing and maintaining infrastructure services, using private sector innovation and skills to manage operations that often leverage private finance.”
Colombia in the last decade have committed to start closing the infrastructure gap. A huge task where many of the infrastructure services are of poor quality, unreliable or just doesn’t exist. Because the country was isolated for many years given the internal problems, in the last decade was necessary to look up for more commercial partners, and the FTAs fever begun. But with a huge concern about the competitiveness of the country in infrastructure mainly in, roads, airports and ports that are not ready to add value to be competitive worldwide.
In 2012 Colombia launched a new law called “The PPP Law” (Ley 1508), which contains new tender procedures to make them more transparent and equitable. This law gives birth to the Fourth Generation (4G) roads project , the most visible and well structured PPP framework by now in the country, lead by ANI (National Infrastructure Agency). The PPP road initiative ANI has designed involves about 5,000 kilometres of roads, which needs about USD$5 billion funding.
The PPP Law is transversal. It means that it is not only focus on roads, it also applies to other social and productive infrastructure projects, starting from USD$1.5 million and a maximum term of 30 years.
The challenge for Colombia is huge, not only the funding needs for infrastructure projects, competing with the whole world for it. It also needs a sound and stable framework for doing business in the country, in order to attract foreign direct investments. Hence successful experiences and experts advise are main pillars for these projects. For example the IFC (International Finance Corporation) concluded from the results of looking at 60 projects in 35 developing countries, that PPPs in order to be successful need to be designed based in three main ingredients:
In Hamkke we strongly believe in win-win situations, and PPPs must be conceived with this approach. We can support public and private organisations in all the preparation, feasibility studies and strategy design for the entire project cycle as it is described as follows from both approaches, public and private: