These days, everybody is talking about Latin America. Whether it is because of the growing strength of the markets, the massive investment programs announced by many governments, or simply because of the impending FIFA World Cup and 2016 Summer Olympics, Latin America has captured the attention of infrastructure investors, developers and operators around the world.
As the Special Report on Latin America illustrates, there is much activity underway across the region. Brazil’s recent flurry of investment announcements and regulatory changes have perhaps been the most visible programs in the region, thanks – in part – to the government’s innovative investor ‘road show’ (see A new plan for Brazil), but other major investment initiatives have also recently been announced and initiated by many of the other markets in the region including Mexico, Chile and Colombia.
At the same time, Latin American governments have started to dramatically evolve their approach to infrastructure investment and delivery. Many have become keen supporters of Public Private Partnership (PPP) models, and almost all have recognized the importance that infrastructure plays in addressing economic growth and social disparity. As a result, the region is rapidly becoming one of the most hospitable to foreign infrastructure investment.
What is clear from the Special Report is that now is the time for those seeking to enter this rapidly emerging market. The reality is that market entry takes time – to build up a reputation, to develop relationships and to set up operations – and local partners will almost certainly be required at the outset.