Latin America infrastructure industry set to reach US$175.8bn by 2020, says GlobalData

22 November 2018 -- The total value of infrastructure spending in Latin America will reach US$142.5bn in 2019 and US$175.8bn in 2020, based on the current pipeline of 1,711 large-scale projects with a combined value of US$829.2bn, according to  GlobalData, a leading data and analytics company.

GlobalData’s latest report: ‘ Infrastructure Insight: Latin America’ reveals that a wide range of infrastructure investment opportunities are being created for investors throughout the region by a combination of favorable demographic trends and the implementation of a number of legislative reforms.

Dariana Tani, Economist at GlobalData, comments:  “Brazil, Chile, Mexico and Peru are set to drive overall investment between 2018 and 2022 with an expected annual average spend of US$36.3bn, US$17bn, US$13bn and US$12.4bn respectively. Projects will include the US$2.7bn SP-99 Tamoios Highway Duplication in São Paulo; the US$6.5bn Lima Metro Line 2 in Peru; and Chile’s US$3bn Alto Maipo Hydroelectric Complex 531MW.

“In Mexico, infrastructure project spending will be fueled by the US$2.7bn Mexico-Toluca Interurban Train, the US$1.5bn 887MW Noreste Combined Cycle Power Plant and the US$848m Jala-Compostela-Las Varas-Puerto Vallarta Highway.”

However, deteriorating external conditions such as global trade tensions, higher US interest rates and slowing global growth could negatively impact the outlook. Further increases in US interest rates, for instance, could pull more capital away from the region, and push up the cost of borrowing to build infrastructure.

Meanwhile, political uncertainty over next years elections in the region and a larger-than-expected recession in Argentina, which could spread to neighboring countries with strong trade exposures, are other important risks of note.

Tani continues: “In addition, the potential cancellation of Mexico City’s New International Airport (NAIM) Project totaling US$13bn, Mexico’s largest infrastructure project, could hold back much-needed infrastructure investment in the country over the coming years. Following the results of a recent referendum regarding the future of NAIM, there are now serious doubts as to whether construction will continue, putting into doubt billions in investment and undermining investors’ confidence.”

With a total of 421 projects valued at US$241.5bn, Brazil has the highest number of infrastructure projects in the pipeline. This is followed by Chile with 309 projects (US$117.1bn); Peru with 230 projects (US$83.1bn) and Mexico with 209 projects (US$98bn). Colombia and Argentina also have a large number of projects, with 114 (US$66.8bn) and 92 (US$58bn) respectively. Among the smaller markets, Bolivia and Panama have pipeline values of US$43bn and US$32.7bn, respectively.

The electricity and power sector has the highest value of projects in the pipeline, with US$381.9bn, while rail projects valued at US$204.3bn account for the second largest sector. Roads recorded the third-largest share, with US$129.3bn; followed by airport and other projects with US$91.7bn and water and sewerage projects with US$22.1bn.

Furthermore, of the total infrastructure construction pipeline, 56% of projects by value are in the pre-planning and planning stages, while 44% are in the pre-execution and execution stages. Moreover, the public sector is expected to directly finance 40% of the total value of projects while a mix of public and private sources will finance 33% of the total value. The remaining 28% will be financed by the private sector, the majority of which are electricity and power projects.

About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors. PR3247



Contacts:

GlobalData
Email Contact

EMEA & Americas:
+44 (0)207 832 4399

Asia-Pacific:
+91 40 6616 6809




Review Article Be the first to review this article


Featured Video
Jobs
GIS Analyst for Union County NC at Monroe, California
Manager, Remote Sensing Sales for One-Compass Suite of Companies at Denver, Colorado
GIS Manager for Union County NC at Monroe, California
GIS Supervisor for Sanborn at Colorado Springs, Colorado
Assistant Engineer. for Alameda County CA at Oakland, California
Regional Sales Manager for Teledyne Optech at Vaughan, Canada
Upcoming Events
GEO Business at ExCel London United Kingdom - May 19 - 20, 2021
FOSSGIS-Konferenz 2021 at OST - Ostschweizer Fachhochschule Campus Rapperswil Oberseestrasse 10 Rapperswil Switzerland - Jun 6 - 9, 2021
GI_Forum 2021 | re.connecting spatially at Salzburg Austria - Jul 5 - 9, 2021
InterDrone 2021 at Hyatt Regency Dallas TX - Aug 10 - 12, 2021
University of Denver GIS Masters Degree Online
UAV Expo2021 -Register   & save



© 2021 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation TechJobsCafe - Technical Jobs and Resumes  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise