Jul 10, 2012
By Dennis Blumenfeld
On June 26, Chinese Premier Wen Jiabao concluded his tour of Latin America by offering a US$10 billion loan program for infrastructure projects in the region. A commitment of this size will undoubtedly have wide ranging benefits for productivity and growth, although when one compares the size of the pledge to the region’s estimated $200 to $250 billion infrastructure gap, it’s clear that even more needs to be done to meet peoples’ needs.
One way to fill the gap is through public-private partnerships or “PPPs,” long-term contracts between a public-sector body and a private-sector entity for the design, construction operation and maintenance of public infrastructure.