Best Practices in Public-Private Partnerships Financing in Latin America: the role of subsidy mechanisms

Countries in Latin America that want to improve their economic condition need to have
high quality physical and social infrastructure. To close current infrastructure deficits, Latin
American countries are increasingly turning to the private sector. Engaging the private
sector to finance, build, and operate infrastructure assets can increase the efficiency and
quality of services and mobilize additional financial resources to get more infrastructure
built. Typically, the private sector is engaged to deliver public infrastructure through a
public private partnership (PPP).