Latin America and the Caribbean

IFC's Public-Private Partnerships Transaction Advisory Department provides technical assistance directly to national, state and municipal governments seeking public-private partnerships to improve infrastructure. Our approach balances the interests of investors with those of policy makers and community members, thus stimulating private sector investment, achieving public policy objectives, and ensuring long-lasting economic and social benefits. 

Established in 1989, the Department has completed over 165 transactions in more than 60 countries, supporting projects across transportation, energy, water, telecommunications, and social sectors (health and education). With experienced staff located throughout Latin America and the Caribbean, our decentralized approach allows us to be closer to our clients and better address their needs.

Recent Projects 

The Caribbean

Télécommunications d’Haiti, TELECO - This is the Haiti’s largest foreign direct investment after the earthquake suffered in January. IFC helped the government structure the international bidding process for TELECO, the national telecommunication company, which was awarded to Viettel -Vietnam’s largest mobile telephone operator. Under a public-private partnership, Viettel will initially invest $100 million to upgrade services offered by TELECO. The investment is expected to make a significant contribution to the country’s recovery by rebuilding much-needed infrastructure and increasing Haitian’s access to fixed, mobile telephone services, as well as high-speed Internet. This project was supported by DEVCO and the US Treasury.

Air Jamaica - The privatization of Air Jamaica was successfully completed with the transferring of Air Jamaica’s operations to Caribbean Airlines, the national airline of Trinidad and Tobago. This privatization will ensure long term sustainable airline services to Jamaica; contribute to stabilize the country’s public finances and free up government resources to support critical infrastructure and social services. Caribbean Airlines is expected to invest $50 million in its new Jamaican operations. This project was structured by IFC with the support of the Canadian International Development Agency, US Treasury and US Trade and Development Agency.

Mexico and Central America

Mexico Hospitals PPP - We advised the government of Mexico State via the State’s Social Security Institute, in the structuring and implementation of two 25 year public-private partnership contracts for two new 120-bed secondary hospitals in the municipalities of Toluca and Tlalnepantla. These facilities will replace obsolete existing facilities, serving a population of about one million. The partnership will also deliver enhanced medical services for 6,000 inpatients and 20,000 outpatients annually. The projects were successfully tendered at the end of 2010, and awarded to the Mexican firms Prodelmex and Marhnos. This project was supported by Catalonia IFC Trust Fund.

Mexico Road Study - In 2008 IFC was engaged by the Mexican government to carry out a study that involved reviewing and providing recommendations on the Mexican road concession scheme. The study was completed in 2010, some of its recommendations were included in the new concession law as well as in the future concession structures. The project was executed with the collaboration of the World Bank.

Andean Region

Ruta del Sol Sectors 1, 2 and 3 - In July 2010, we assisted the Government of Colombia in the concession of Sector 3 of Ruta del Sol – a 464km highway - to a consortium comprised of Impregilo (Italy), Bancolombia and Infracon/Tecnivial/Grodco (Colombia). This concession – in addition to the two sectors awarded late 2009 to international and Colombian investors – completes the awarding of Ruta del Sol, a 1,070 km highway with estimated investment of $2.6 million.

 

Brazil

Hospital do Suburbio - The first health public-private partnership in Brazil and the first emergency hospital built in Salvador’s metropolitan area in 20 years. The hospital will dramatically improve access to high-quality emergency hospital services in an area of one million people in Salvador, while before the population had to cross the city to get emergency care. The project was awarded to Promedica, a leading healthcare company in the Northeast of Brazil, and Dalkia, a French company specialized in facilities management and non-medical services. The concessionaire will be responsible for equipping, maintaining and operating the hospital for a term of 10 years, and is expected to invest approximately $32 million over the life of the concession. The project was implemented through a partnership between IFC, BNDES and the Inter American Development Bank.

BA093 - IFC, through its partnership with BNDES and the Inter American Development Bank in Brazil, advised the State Government of Bahia in the first concession of a metropolitan road network of 126km. The concession, with investments of $800 million Brazilian Reais (US$ 400 million), will foster the economic and social development of Salvador by connecting the main industrial and logistics centers of the region. The contract was signed with the Invepar-Odebrecht consortium on August 2010.

Bahia Federal Highways BR116/324 - In 2009 the government of Brazil signed a 25 year concession contract with the Spanish-Brazilian consortium Rodobahia to upgrade and expand nearly 700 kilometers of federal roads in the State of Bahia, mobilizing approximately $615 million in private investment. IFC and BNDES - the Brazilian Development Bank, acted as joint financial advisors to the government and developed a concession model which will serve as a template for future road projects in Brazil due to the innovative features included in the concession contract as well as to the transparency and depth of its bidding process which resulted in strong international interest. The auction model developed for this project has been used by the government to auction seven other federal road concessions.