SAO PAULO – Brazil, Chile, Colombia and Peru, four of the major South American economies, offer infrastructure investment opportunities with an estimated total worth of $129.92 billion in projects managed until 2017, according to a study by the Brazilian bank Itau BBA released this week.
Roads are the primary focus of investments, though in Chile’s case there is also an opening in the airport sector in accordance with the detailed analysis of public information announced by the governments of the four countries and the market.
The Logistics Investment Program in Brazil for the period 2014-2017 includes projects involving roads, ports and railways, both through direct investment or public private partnerships.
The road sector represents 40.3 percent of the demand for investment in the four countries, with Colombia leading ($24.4 billion), followed by Brazil ($13.7 billion), Peru ($11 billion) and Chile ($3.25 billion).
Railroad projects are led by Brazil with $25.59 billion, followed by Peru with $8.3 billion, Chile with $4.45 billion and Colombia with $3.16 billion.
Airport works also need investment amounting to $4.18 billion in Brazil, $720 million in Chile, $500 million in Colombia and $450 million in Peru.
Port construction at the same time demands $24.82 billion in Brazil, $1.8 billion in Chile, $1.59 billion in Colombia and $300 million in Peru.
The Santiago International Airport in Chile, with a prediction of 19 million passengers per year from 2020, will require between $720 million and $800 million dollars for the construction of a new terminal and renovating the existing one.
Colombia has started the bidding process for the waterway of the Magdalena River that traverses almost the entire country.
The construction of lines 3 and 4 of the Lima Metro in Peru, over an area of 32 kilometers (20 miles) and 30 kilometers (18.5 miles) respectively, will be granted by concession, while the South Peru Gas Pipeline requires investments of $6.5 billion for its 1,000 kilometers (621 miles).
“There is no single reason for the increase in investment, but the main point is to improve the infrastructure and ensure the country’s competitiveness,” said Alberto Zoffmann, director of Project Finance of Itau BBA who highlighted the example of airport modernization and urban mobility in Brazil for World Cup 2014.