CG/LA Infrastructure, an organization that supports the public and private sectors in developing strategic infrastructure globally, has released its 2014 report on the top 100 infrastructure projects in Latin America. The report is available for download on the CG/LA website.
The Strategic Top 100 Latin American Infrastructure 2014 Report was sponsored by Aconex, Boston Consulting Group, CNF Development Bank of Latin America, IDB, and GVIP. Its publication anticipates CG/LA’s 12th Latin American Infrastructure Leadership Forum, scheduled for June 10-12 in Cartagena, Colombia.
Infrastructure Growth Potential
The top 100 Latin American infrastructure projects covered in the report total US$138.7 billion in value. The sectors represented by these projects are:
- Electricity – Generation
- Electricity – Transmission
- Highways and Bridges
- Internet Communications Technology
- Oil and Gas
- Ports and Logistics
- Urban Mass Transit
- Water and Wastewater.
The projects are located in 20 different countries. In terms of geographic distribution, 21 projects valued at $48 billion are in Brazil, 15 projects at $17 billion are in Colombia, eight projects at $20 billion are in Chile, seven projects at $12 billion are in Mexico, and five projects at $5 billion are in the Caribbean. CG/LA estimates that these projects have the potential to create 2.1 million new jobs either directly or indirectly.
Increased Investment in Infrastructure
According to CG/LA, Latin America currently spends approximately 1.7% of gross domestic product (GDP) on infrastructure development. This is less than any other region of the world except Africa. CG/LA estimates that the regional infrastructure market stands at approximately $98 billion in 2014 and will grow to $114 billion by 2018.
CG/LA recently commissioned a study by the London School of Economics which shows that increasing infrastructure investment by 250% in the next five years – with a higher rate of investment in certain types of infrastructure projects in certain countries – would drive the Latin American market to $250 billion or more annually by 2018. As a result of the increased infrastructure investment and associated job creation, GDP across the region would grow by at least 3% above current expectations.
With its infrastructure project research, networking events and awards programs, CG/LA helps public and private sector leaders identify and rapidly develop infrastructure opportunities. CG/LA’s stated objective is to double infrastructure investment in Latin America by 2020.
In the Strategic Top 100 report, Norman Anderson, CEO of CG/LA, states that the public and private sectors in Latin America are moving toward a more strategic vision of infrastructure investment. This vision requires the identification of goals and the definition of success metrics – e.g., increased income per capita, higher GDP, new opportunities for businesses and individuals, job growth, etc. Sustainable infrastructure growth also requires a sense of urgency and clear criteria for prioritizing projects.
According to Anderson, improved project funding from institutional investors and equity partners would also help Latin America reach its potential. Successfully attracting and engaging these sources of capital may require government policy innovations that help mitigate investor risk. Another enabling factor would be a liquid market – “so that operating investors can exit once they have overseen a project’s close, construction and commissioning.”
From the Aconex perspective, infrastructure project risk is a challenge not only for investors, but also for governments, contractors, engineers, and the entire project team across different organizations. Also, for investors to oversee a project’s close, construction and commissioning, project-wide visibility must be available – not only to investors, but to all stakeholders and participants.
Aconex Construction Management Software for Infrastructure
Aconex construction management software has been deployed for project information and process management in Central and South America for several years. The key project sectors are mining, commercial and residential construction, and infrastructure. Major infrastructure projects served by Aconex include the Panama Canal expansion (third set of locks); the El Dorado International Airport redevelopment in Bogotá, Colombia; and the Tocumen International Airport expansion near Panama City.
The value delivered to the project teams includes risk mitigation and project-wide visibility. These are standard benefits of the Aconex platform – a secure, central collaboration engine that processes all project documents, communications and other data in one place, according to client-defined workflows which roll up into a permanent audit trail.
The respective project managers tell the story in their own words:
“Our projects typically involve hundreds of team members based across several countries, so we required a central platform for storing and distributing our design and construction-related information. Aconex is a great system that rapidly becomes the information backbone of any project. It gives immediate access to the latest versions of our documents from anywhere in the world, and provides us with a full document history and ultra-transparent companywide correspondence.”
Project Information Manager
Aéroports de Paris Ingénierie (ADPI)
Project: El Dorado International Airport
“We’re able to upload bid packages and other project documents to the system just once and then update them with addenda as needed – rather than assembling and reloading them with each new request. Our client appreciates receiving project updates immediately on the system rather than on CDs delivered by mail, and we have confirmation that the updates were transmitted. All information is safe in the cloud, so there’s no risk of losing data from a hard drive on a PC.”
Mauricio Mejia Restrepo
Infrastructure Engineering Manager
Norberto Odebrecht Construction
Project: Tocumen International Airport
If you’re currently involved or interested in getting involved in the Latin American infrastructure market, we recommend that you do two things:
- Read CG/LA’s Strategic Top 100 report and attend its Latin American Infrastructure Leadership Forum in June.
- Contact Aconex for a demo and see for yourself how our cloud-based construction management software mitigates risk and provides project-wide visibility.
Images: CG/LA Infrastructure
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