Fundamental Principles in PPP Laws: A Review of Latin America and The Caribbean
Investment in infrastructure is, admittedly, one of the main forms of economic development. Traditionally, the Public Administration implements infrastructure projects committing taxpayers’ money to finance them. For the past decades, demand for infrastructure has been growing steadily, but public funds for current and future needs are limited and the public finances of many governments have increasingly reached a point where long-term borrowing is not a ready option. In a recent study, GI Hub estimated the cumulative ‘global infrastructure need’ from 2015 to 2040, and the ‘investment gap’ for the period. US$ 94 trillion would be needed in investment and the gap is US$ 15 trillion . This has led the government to accept the growing importance of the private sector participation in the financing and management of infrastructure projects, so it began seeking alternative methods of procurement.