Colombia's Gradualist Approach to Private Participation in Infrastructure
Author: Philip Gray Date: 5/1/1997 (PDF, 200KB)
Colombia has taken a more gradual approach to private participation in infrastructure than such other Latin American countries as Argentina, Bolivia, and Chile. Its approach is closer to that in many Asian countries: existing assets remain in state hands, and new infrastructure is financed by the private sector through project finance--but with government guarantees. The approach has attracted much private capital. But it can complicate reform, and the lack of clarity surrounding public and private roles in regulation, operation, and investment can make reform less sustainable. Philip Gray explains the approach and the conflicts that can and do arise.