EXECUTIVE SUMMARY

April 2010
this month ’ s series :

Meet the cast

Italian multinationals are making continuous
progress in Latin America, with revenue
totaling 6.4 billion euros in 2008, according
Latin American infrastructure:
to a 2009 survey conducted by Italian
consulting firm Ance covering 30 Italian The Italian connection
multinational contractors.

Una bella donna

Latin America is highly attractive to Italian
firms, firstly because of the region’s extensive
natural riches, but also because of a long-
lasting history of immigration and involvement
in business, which puts Italian firms in a
privileged position compared to other groups
that have less of a connection with the Latin A year and a half has passed since US completion in 2014, or Colombia’s La Línea
culture. investment bank Lehman Brothers collapsed tunnel, budgeted at US$270 million.
in September of 2008, dragging the entire
PPPs save the day world into the greatest financial crisis As the regional economy shapes up, Italian
Disparate regulatory frameworks across the on record since the Great Depression of infrastructure operators are definitely
region pose difficulties for foreign investors
the 1920s. However, it looks like Italian looking to take full advantage of the
including Italian operators. But Latin American
multinational infrastructure operators will opportunities that lie ahead. However,
governments are increasingly turning to the
public-private partnership (PPP) model, which is surely have a busy 2010 in Latin America, they are treading very lightly in the
more developed in this region than anywhere now that the region is showing clear signs process because, according to Eclac, it
else in the world. of economic recuperation. is not clear whether this growth will be
sustainable over time, as there is still
New challenges for In its latest Preliminary Balance of Latin sufficient uncertainty to put regional
multilaterals American and Caribbean Economies, growth expectations in jeopardy.
When it came to financing, infrastructure published on December 10 last year, the
projects were traditionally the turf of
United Nations Economic Commission for In this IS report, BNamericas
commercial banks. However, the economic
Latin America and the Caribbean (Eclac), looks at the involvement of Italian
crisis forced them to retreat, and multilateral
agencies and development banks were quick said it expects the region’s economy infrastructure operators –represented
to fill the void. to expand 4.1% in 2010. Latin America by two prominent firms, Ghella and
currently boasts massive infrastructure Astaldi – in the regional market and
They came from the Far East undertakings – and impressive budgets their perspectives for 2010, as well as
Firms like Ghella and Astaldi are facing – such as the US$5.25 billion project the conditions they will likely encounter
increasing competition from China, whose to expand the Panama Canal – due for in the beginning of this new decade.
multinational firms are generally state-run and
have access to significant financial backing by
their government.

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 Infrastructure Daily Written and researched by
Renzo Dasso

Content Development & Analysis

At the beginning of 2008, Mexico’s government created a Editor

Raúl Ferro
US$3.9 billion National Infrastructure Fund to finance projects
Executive editor
worth a total of US$25 billion in this sector over the next 5 Henriette Iraçabal
years. In Brazil, a federal plan to accelerate economic growth
Financial services analyst
includes investments in the order of US$30 billion in roads María Alejandra Moreno

and highways between 2007 and 2010, and in Peru, the road Mining analyst
Laura Superneau
infrastructure deficit is some US$7 billion.
Telecom analyst
Phil Anderson
From whichever angle, infrastructure investment requirements
Energy analyst
(and plans) come to billions of dollars. While this is nothing Michael LaGiglia
new, this time round the possibilities of these investments
Financial data analyst
being made are higher than they’ve ever been before. María José Arredondo

Researchers

T his means that in the next few among the projects and regulations Gonzalo Vergara
Carlos Montoya
years, business opportunities upon which this growing and
are as numerous as they are attractive sector of Latin American BNamericas Infrastructure Group
lucrative. business is based.
This is the context in which The Infrastructure Intelligence Editor
Series will focus on topics such as: Greta Bourke
BNamericas is launching a new
product, the Infrastructure · Concessions Santiago, Chile
Intelligence Series, which every · Privatizations Eva Medalla
month will focus on the biggest · Port development Catherine Setterfield
trends and topics within the region · Logistical integration projects Indiana Corrales
in order for you and your company · Airports
Sao Paulo, Brasil
to have all the information and · Railways Daniel Bland
analysis necessary to find your way · Urban transport
· Water and waste treatment Designed by
Tamara Lorca

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