PPP Americas 2025: A Landmark Event for Public-Private Partnerships in Latin America

Vice President Schwartz, in his opening remarks, underscored the strategic importance of PPPs in spurring investment and improving living standards in Latin America and the Caribbean.

The 12th edition of PPP Americas, a prestigious gathering of leaders from both the public and private sectors, kicked off yesterday, bringing together more than 850 influential figures from across the globe. The event, held in Peru, serves as a key platform to explore and address the challenges and opportunities of Public-Private Partnerships (PPPs) in Latin America and the Caribbean. Focused on attracting private investment to help bridge critical infrastructure gaps, this event is organized by the Inter-American Development Bank (IDB) and its private-sector arm, IDB Invest, in close collaboration with the Ministry of Economy and Finance of Peru and ProInversión, Peru’s national investment promotion agency.

The annual conference provides a space for dialogue between investors, international experts, government officials, and industry leaders, with a particular emphasis on PPPs' transformative potential for infrastructure development across the region. This year's edition is particularly significant as it highlights the growing role of PPPs in fostering economic and social development, creating job opportunities, and improving essential public services like water, energy, transportation, health, and education.

A Global Gathering of Leaders

Key figures from both the IDB and the Peruvian government are attending, including IDB’s Executive Vice President Jordan Schwartz, IDB Invest CEO James P. Scriven, Infrastructure and Energy Manager Tomás Serebrisky, and the IDB’s representative in Peru, Tomás Lopes-Texeira. On the Peruvian side, the event features the participation of Minister of Economy and Finance José Salardi, ProInversión Executive Director Luis Del Carpio, and ministers from key sectors such as housing, energy, and transportation.

Vice President Schwartz, in his opening remarks, underscored the strategic importance of PPPs in spurring investment and improving living standards in Latin America and the Caribbean. He emphasized, "Public-private partnerships are a powerful tool to boost investment, create jobs, and improve the quality of life in Latin America and the Caribbean. When structured correctly, they expand access to essential services such as water, energy, transportation, health, and education, strengthening the economic and social development of our countries."

Minister Salardi echoed this sentiment, adding, "It is very important for Peru to host this edition of PPP Americas and to welcome authorities from the region to discuss and share experiences in public-private-partnership processes and investment portfolios from different countries. Peru has a strong track record of more than 22 years and 139 PPP projects valued at $36 billion. Currently, the country anticipates a portfolio of $70 billion in projects in sanitation, health, transportation, irrigation, hydrocarbons, and education, among other areas."

Latin America’s Leadership in Infrastructure Investment

Latin America and the Caribbean have emerged as leaders in the developing world in terms of attracting private participation in infrastructure projects. In the last 30 years, the region has seen approximately $770 billion in private sector investment for infrastructure, marking a 25% higher investment rate compared to East Asia and the Pacific.

Investments in infrastructure are not only vital for improving physical structures but also for boosting long-term economic growth. For instance, every dollar invested in quality infrastructure is projected to generate up to four dollars in economic returns, making it a powerful lever for sustainable development.

The latest findings from the Infrascope, a diagnostic tool developed by Economist Impact and commissioned by the IDB, reveal that between 2022 and 2024, the number of PPP projects in the region has increased by 25%, while total investment in these projects has grown by 15%. These trends highlight the expanding role of PPPs in addressing critical infrastructure needs, offering promising opportunities for economic development.

The Efficiency of PPPs in Infrastructure Management

The evidence of PPPs’ effectiveness continues to grow. Recent international and regional experiences show that developing and maintaining infrastructure through the PPP model significantly enhances efficiency and encourages innovation. These partnerships optimize the use of public resources and maximize the economic and social impacts of projects.

Notably, in countries like Peru and Brazil, road operation and maintenance contracts executed under the PPP model have achieved cost-efficiencies of up to 25%, underscoring the value of PPPs in ensuring better management and long-term sustainability of infrastructure projects. These efficiencies are critical as countries in the region work to modernize their infrastructure to meet growing demands.

The Role of IDB in Advancing PPPs

The IDB has played a key role in supporting the development of PPP projects throughout Latin America and the Caribbean. Since 2020, IDB Invest has been involved in more than 25 major PPP projects in the region, amounting to an impressive portfolio of $25.319 billion in investments.

In 2024 alone, the IDB contributed to closing $2.95 billion in financing for five crucial infrastructure projects and began contracting processes worth $1.9 billion to modernize infrastructure services across multiple countries. These projects cover a broad spectrum of sectors, including transportation, energy, and sanitation, all of which are vital for enhancing quality of life in the region.

By working closely with local governments, private investors, and international partners, the IDB is helping to catalyze high-impact investments that will lead to long-term improvements in the region’s infrastructure and overall economic competitiveness.

Looking Ahead: The Future of PPPs in the Region

As PPP Americas 2025 unfolds, the discussions and agreements formed during the event are set to shape the future of infrastructure development across Latin America and the Caribbean. With a burgeoning portfolio of over $70 billion in potential infrastructure projects in Peru alone, the momentum behind PPPs is stronger than ever. These projects hold the promise of addressing critical gaps in infrastructure while fostering sustainable growth in the region.

The event also signals a pivotal moment for PPPs in the region, showcasing the substantial progress made in the past few decades and setting the stage for even more robust collaboration between the public and private sectors in the years to come.