Economist Intelligence Unit has introduced a new index – Infrascope – that applies a microscope to the region’s infrastructure environment. It focuses specifically on the readiness of countries to implement PPPs in the water, sanitation and transport sectors.
The Infrascope is based on an evaluation of five broad factors: 1) a country’s legal and regulatory framework for concession projects; 2) the capacity of institutions that prepare, award and oversee projects; 3) the government’s ability to enforce laws and regulations for concessions, as well as the success rate of past projects; 4) the business, political and social environment for investment, and 5) the financial facilities for funding infrastructure.
Chile, Peru and Brazil were top rated among the 19 countries evaluated in the report. The study shows that although Latin American and Caribbean governments are turning to private firms to help fund essential infrastructure, but few countries have the legal and regulatory skills to partner effectively with businesses. The study can be accessed from here.