1. Plenary 6 Making the Best of Business Opportunities PhD. Reyes Juarez President of Fepac

2. 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

3. 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. Source: Private Participation in Infrastructure Projects Database, © 2014 The World Bank Group.

4. 2. PPPs in Latin America 1990-2013 Three Latin American countries are among those that received the highest investment in PPPs during the last 20 years. (Brazil, Mexico and Argentina). Source: Private Participation in Infrastructure Projects Database, © 2014 The World Bank Group. Investment by Country

5. Annual Investment by Sector and Country Source: Private Participation in Infrastructure Projects Database, © 2014 The World Bank Group 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.

6. 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.

7. Competitiveness according World Economic Forum - 2013 Source: The Global Competitiveness Report

8. 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. Source: The Global Competitiveness Report 2013-2014, WEF (2014).

9. LA Countries have assigned low in infrastructure investments as GDP%.

10. 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.

11. 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.

12. What are LA countries doing well? PhaseMexicoBrazilChileColombiaPeru Planning of the project portfolio Evaluation & Prioritization Preparation Bidding Performing Follow up Supervision of PPPs

13. Growth Expectations (2014): Selected Countries The most important countries of Latin America are growing again. 1.8% 3.0% 4.5% 0.5% 3.6% 5.5 % Source: FMI (2014)

14. 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

15. FEPAC’s role  Facilitate the exchange of skills and experiences  Adopt best practices  Spread market opportunities  Quality selection mechanisms  Stimulate and promote activity

16. 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)

17. Pan American Federation of Consultants Federación Panamericana de Consultores Rua Ricardo Rivera Navarrete 762, piso 11, Distrito San Isidro, Lima, Peru. www.fepac.org