Transcript Slide 1
Plenary 6 Making the Best of Business Opportunities PhD. Reyes Juarez President of Fepac Content 1. PPPs worldwide overview 2. PPPs in Latin America 3. Why our countries require PPPs? 4. Towards best practices - do more with less 5. The role of Consulting Organizations 1. PPPs Worldwide Overview More than 6,000 projects have been developed as worldwide PPPs in the last twenty years. Latin America is the leading region with 30% of the number of projects and 38% in investment (more than 845 billion dollars). The most dominant worldwide projects are in energy sector; however telecommunications have the highest investments. Number of projects and amount of investment in PPPs by Sector, 1990-2013 Number of projects and amount of investment by Region, 19902013 100% 6,146 $2´199,403 100% 80% Middle East and North Africa 80% 60% Sub-Saharan Africa 60% Europe Central and Asia 40% Water and sewerage Telecom 40% Transport South Asia 20% East Asia and Pacific 0% Latin America and Caribbean Number of projects Investment (millions USD) 20% Energy 0% Number of projects Investment (millions USD) Source: Private Participation in Infrastructure Projects Database, © 2014 The World Bank Group. 2. PPPs in Latin America 1990-2013 Investment by Country Three Latin American countries are among those that received the highest investment in PPPs during the last 20 years. (Brazil, Mexico and Argentina). Main Countries by Investment Amount and Number of PPPs Projects, 1990-2013 $500,000 1,400 1,200 $400,000 1,000 $300,000 800 $200,000 600 400 $100,000 200 $- Brazil India Russia China Investment (millions USD) Mexico Turkey Argentina Number of projects Source: Private Participation in Infrastructure Projects Database, © 2014 The World Bank Group. Annual Investment by Sector and Country Private Brazilian PPP investments have focused mainly on energy and telecommunications. In Mexico the restrictions on private participation in energy had limited the possibilities to develop PPPs (no longer the case because of recent reforms); therefore, the main sector has been telecommunications, while transportation has gotten around 1.4 billion dollars per year on private investment to develop PPPs. Million USD per year Mean Annual Investment by Sector for Selected Countries, 1990-2013 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - 7,624 7,070 3,826 3,132 1,578 679 537 129 Mexico 1,705 1,398 Brazil Energy 624 355 Argentina Transport Telecom 486 358 734 41 792 538 Colombia Water and sewerage Source: Private Participation in Infrastructure Projects Database, © 2014 The World Bank Group 194 316 Chile 571 290 625 Peru 23 3.- Why our countries require PPPs Latin American countries in general have been significantly lagging behind in global competitiveness. The countries of the region require to redouble investment efforts, particularly in infrastructure. The historical resources of governments to deal with the backlog are limited and it is urgent to advance development. In addition, there are delays in social issues that, if not addressed, endanger the social structure, to where it would be necessary to direct public budgets. Private investments in infrastructure projects, while facilitating appropriate risk distribution can be very attractive. Competitiveness according World Economic Forum - 2013 Competitiveness Global Index 6 United States Switzerland Alemania 5.5 United Kingdom Puntaje 5 China Chile Panama Brazil 4.5 Mexico 4 Argentina Guatemala 3.5 Nicaragua 3 Honduras El Salvador Paraguay 2.5 2006 2007 2008 2009 Source: The Global Competitiveness Report 2010 2011 2012 2013 Infrastructure/competitiveness Note the large gap between Latin American countries in comparison with South East Asia. Chile stands out in private investment because of (due to) retirement saving fund systems, which occupies a position similar to those of China and Thailand . Relationship Infrastructure/Competitiveness Position of infrastructure endowment 100 Peru India 90 80 Colombia Brazil Mexico 70 60 China 50 Thailand Chile 40 30 Unites States Taiwan Japan Germany 20 10 0 0 10 20 30 40 50 60 70 Competitiveness Position Source: The Global Competitiveness Report 2013-2014, WEF (2014). 80 LA Countries have assigned low in infrastructure investments as GDP%. Great Challenges • Latin American countries have faced the challenge of insufficient financial resources to expand its infrastructure and institutional weakness to design, prepare, implement and supervise projects. Great challenges to do more with less Infrastructure investment faces the great challenge of doing more with less - which can only be achieved by: Selecting projects better. Evaluating with improved methods of Cost-Benefit Analysis. Preparing projects better and in a sustainable environment. Choosing best methods of procurement (e.g. public vs. PPPs). Performing them with zero tolerance to corruption. What are LA countries doing well? Phase Planning of the project portfolio Evaluation & Prioritization Preparation Bidding Performing Follow up Supervision of PPPs Mexico Brazil Chile Colombia Peru Growth Expectations (2014): Selected Countries 3.0% The most important countries of Latin America are growing again. 4.5% 5.5 % 3.6% 0.5% Source: FMI (2014) 1.8% Panamerican Federation of Consultants Joins consulting associations in 14 countries of Latin America, including Spain and Portugal. More than 1 200 engineering firms About 90 000 employees FEPAC’s role Facilitate the exchange of skills and experiences Adopt best practices Spread market opportunities Quality selection mechanisms Stimulate and promote activity Working Commissions in FEPAC 2012-2014 Stimulate PPPs in the region (Colombia) Promote new activities and consultant roles (Spain) Strengthening capabilities and strategic alliances (Brazil) Statutes and fees (Argentina) Establishment of the General Secretariat in Lima (Peru) Pan American Federation of Consultants Federación Panamericana de Consultores Rua Ricardo Rivera Navarrete 762, piso 11, Distrito San Isidro, Lima, Peru. www.fepac.org