Latin America to Boost Investment in Infrastructure, Demand for Talent Intensifies
Latin America’s commodity boom is helping drive the growth in infrastructure. “Anything related to commodities is driving projects, and driving opportunities. Latin America has grown at an average rate of nearly 5% for five years in a row, and we believe that the region is ready to - and must - triple its investment in infrastructure over the next few years,” says Norman F. Anderson, President & CEO of CG/LA Infrastructure as reported by publicworks.com. Anderson contends that, “As the world globalizes, these are the projects that are going to make Latin America ever-more successful in the global economy.”
Global investors on the hunt for opportunities in infrastructure are increasingly looking to Latin America. In fact, more infrastructure deals could enter the market as infrastructure matures as an asset class and as governments become more comfortable with privatizing, according to Pensions & Investments. As a result, executive search firm, A.E. Feldman, says infrastructure finance jobs are opening up for candidates with backgrounds in investment banking as well as experience in analyzing and executing structured financings. The most sought after candidates are those with experience in infrastructure transactions and environmental engineering.
Latin America invests on average roughly 1.5% of GDP in infrastructure, according to the Latin Business Chronicle. Currently, there are at least 50 strategic infrastructure projects from 17 countries in Latin America with a total value of between $40 billion and $50 billion, including the São Paulo ring road, the Panama Canal, Colombia’s port of Buenaventura and Valparaiso in Chile.
Other major projects include the $7 billion Baja California multimodal project, the $4.5 billion Madeira Hydro Complex in Brazil, the $2.5 billion Valley of Mexico Wastewater project, the $2 billion Linea 12 Metro Project in Mexico, the $1.5 billion Cedae 2020 Water Project in Brazil, the $1.5 billion development of the Cap Cana tourism resort in the Dominican Republic, the $950 million Americo Vespucio East Highway in Chile and the $600 million metro in Dominican capital Santo Domingo.
“Anything related to commodities is driving projects, and driving opportunities,” the Latin Business Chronicle quotes Anderson as saying. “Latin America is in its fifth year of an unparalleled economic expansion. This expansion is primarily driven by global commodity prices, but with average growth in the 5% range there is enormous significant investment in ports and logistics, electricity generation, highways and continued investment in digital infrastructure. ”
Anderson also sees great potential in wastewater treatment, specifically a series of major wastewater treatment projects in the Valley of Mexico. Other areas for growth include electricity, urban mass transit, and alternative fuels, specifically the $500 Million Azua Bio-diesel project in the Dominican Republic, and a series of wind farm projects in Mexico.
