Experts look beyond LatAm corruption issues

Exclusive: Regional experts have warned that issues related to the recent Odebrecht corruption scandal will need to be overcome if the region is to truly attract international investment.

Delegates at the P3 Hub LatAm in Miami outlined the issues facing the region, although expressed encouragement at the potential for growth in the coming years.

“You can’t have serious discussions with investors, when they are highly scrutinized on corruption issues and when there are major fundamental implications towards the leaders of these P3 programs,” said Carlos Viana, partner at White & Case.

“But, there are a lot of good things going on in the region, and there is a lot of room for investment if we put our needs into the right political context.”

Another investor told P3 Bulletin that despite “ongoing concern” among investors, there was a pipeline of deals in many countries that will continue to attract interest, providing the corruption issues are properly addressed.

The International Money Fund also spoke of the benefits P3s can play in the Latin American region, highlighting how the organization can assist with the development of new deals.

“P3s have grown a lot and this is a positive development,” said Izabel Karpowicz, senior economist at the IMF. “In these emerging countries, P3’s have stabilized a secular decline in public infrastructure investment. We need this investment to spur growth.”

P3 Bulletin will be publishing more news and information from the conference over the coming days.