CAF present in the first edition of the congress on energy and infrastructure in Uruguay

CAF, Development Bank of Latin America, participated in the first edition of "Uruguay Energy & Infrastructure Summit", which brought together international organizations and companies, and authorities from different governmental areas and companies, to discuss and exchange ideas about the projects and challenges that the country faces with respect to these subjects.

The event included the participation of Victor Rossi, Minister of Transportation and Public Works, Daniel Martínez, Mayor of Montevideo, and Alvaro García, Director of the Office of Planning and Budget, in addition to top officials from institutions that plan to invest in infrastructure.  

In the panel regarding the role of multilateral organizations, Gladis Genua, CAF's Director Representative in Uruguay, presented the state of affairs if Latin American infrastructure and the role of CAF in supporting its development. 

She stated, "When we define support strategies for our shareholder countries, infrastructure is an essential subject because its economic and social benefits make a significant contribution to help countries give a qualitative jump in their development levels. It is a factor that supports the growth and competitiveness of companies, and facilitates the integration of the regional and national territory through the different means of communications, allowing access to basic services to different actors, thus strengthening the inclusion of people and improving their quality of life".   

During her intervention, Genua  presented a report on the trends and challenges that Latin American infrastructure will face in coming years. Among the most important issues, she highlighted "the increase in demand as a result of the growth experienced by the region in the past decade, and the increasing urbanization of its inhabitants", and continued ot explain, "the countries in the region are still lagging in terms of quality compared to other regions, so there is a need to invest in infrastructure with higher quality standards". 

With respect to CAF's role in financing projects, the Director highlighted the Institution's comprehensive support throughout the process to provide infrastructure, from the generation of knowledge to institutional strengthening, including project financing. With respect to the latter, she highlighted the creation of new instruments such as senior debt funds, which the institution is developing in several countries. She stated, "They allow us to make up for the lack of connection between the available resources and infrastructure projects. Countries that have a mixed pension system, where there are agencies that manage the population's pension funds, generally have significant levels of savings that need to be invested and have few safe and profitable options".  

She explained that in the case of Uruguay, this is a trust for USD 300 million, where the main contributors will be Pension Fund Administrators, which will be managed, from a professional point of view, by a CAF subsidiary, called CAF-Asset Management; "The objective is that we may generate the conditions to ensure that projects are structured, that financing is available, and that they are implemented in good time and in an appropriate manner", she stated. 

During his presentation, Álvaro García, Director of the Office of Planning and Budget (OPP, for its acronym in Spanish), also referred to CAF's initiative as an example of support for the country's development. He stated, "It will undoubtedly help those companies that have the technical capacity but that need financing. I mention the fund because it is a mechanism that will have good results". The official also informed that the government will create a National System for Productive Transformation and Competitiveness within which the development of infrastructure will be one of the essential factors. 

The Under-Secretary of Economy and Finance, Pablo Ferreri, was in charge of closing the event. Ferreri referred to the strategic line stated by the government regarding the subject, and enumerated the achievements of past governments as well as of the current National Infrastructure Plan. In addition, he highlighted the strengths that Uruguay offers when inviting the private sector to participate.  

He concluded, "In Uruguay, during this period we will be investing close to 5 percent of GDP in infrastructure. This cannot be financed solely with the current public finances, so private participation is absolutely relevant. Approximately one third of the infrastructure plan is to be financed by the private sector. In addition, we need their experience, their management and innovation capacity, and their capacity to assume risks, because it is the essential driver of the economic development in any society".