Abstract: Infrastructure investment is an area with vast demand in Latin America and distinct competitive advantages for China, drawing increasing attention in recent years. Looking at the historical development of the infrastructure sector in Latin America, economic fluctuations driven by commodity prices, the capacity and actions of governments, and the participation of the private sector have been key driving factors, while also posing significant risks for investors. The Public-Private Partnership (PPP) model is a major approach to infrastructure development in Latin America. The presence of numerous investors from both within and outside the region reflects the attractiveness of infrastructure investment in Latin America. However, differences in the ability of Latin American governments to manage the PPP model and their pursuit of diversified goals in infrastructure investment contribute to the considerable complexity of the region's infrastructure market. For China, although Chinese infrastructure enterprises have accumulated extensive construction experience, technical capabilities, and a certain level of international business acumen through rapid domestic infrastructure development and international operations, achieving remarkable success in overseas engineering contracting, they still face shortcomings in the PPP model. Therefore, Chinese infrastructure enterprises investing in Latin America must accurately assess the situation, identify potential opportunities and risks in infrastructure investment, adapt to local conditions, leverage their existing strengths, and actively learn the operational methods of the local PPP model to achieve mutually beneficial development with the region.

Authors: Chen Taotao, Xu Run, Jin Ying, Gu Lingjun

Published in: Latin American Studies, 2017, 39(3): 19-37