Governors of the Inter-American Development Bank had the Special Meeting in Mendoza, Argentina on March 24. Most importantly was the presence of Dyogo Oliveira (Minister of Planning, Development, and Management) who strongly supported the rise of the number of privately owned investments in Brazil that involve infrastructural projects.
In his report, Felipe Montoro Jens (an infrastructure Projects expert), noted Oliveira’s emphasis on his view of developing financial guarantee techniques that could positively influence private investments in Latin America. Oliveira proposed that the IDB should hold studies to facilitate the development of ideas that will be used to manage projects’ risk hence maximize returns.
Felipe Montor Jens report indicates that several other members of the Board of Governors support Oliveira’s suggestions. Luis Caputo, who is the chairman of the Bank’s Board of Governors, said that it would indeed be beneficial for the IDB in Latin America to leverage private investments. Garrido, Spanish Secretary of State and Business Support, named Brazil as the country that would receive benefit from Spain’s investment.
The report continues to show that though investment in a modernized infrastructure would facilitate the Industry 4.0 revolution, a challenge is likely to rise since the number of investments needed to influence this industrial revolution is not high or strong enough. This report also echoes IDB’s president, Luis Alberto Moreno, who continues to say that IDB is adjusting to meet the social requirements of gender equality and environmental management initiatives for the establishment of the projects. Read more about Felipe at mundodomarketing.com
Several establishments of Public-Private Partnerships (PPPs) that focus on public works have also been made in Brazil. According to Oliveira, the policies established in Brazil for the sake of development in infrastructure and other areas all fall in the boundaries set by the regional countries (which Brazil is part of) and also the standards set by the IDB.
Though an estimate of 1000 PPPs in the Latin America in the past one decade is of $360 billion worth, the Ministry of Planning, Development, and Management reports that majority of projects now are not able to work efficiently since they cannot get private capital quickly. Felipe’s report concludes with the mention of a $12.9 billion worth of loan that IDB gave to Brazil in 2017.