The need for massive investments -- $320 billion, or more over the next five years -- in infrastructure to support the 8-10% growth envisaged for the economy is no longer a matter of debate. If we assume that all our public agencies are able to quickly prepare properly structured and designed infrastructure investments of this magnitude (and that is indeed a big assumption, as the capacity required to prepare many projects -- particularly of the PPP type -- is indeed a major constraint within the public sector), one of the big concerns is the ability to finance such massive investment.
The massive financing of infrastructure projects assumes an extra dimension since a significant part of it (perhaps $75-100 billion) is to be executed through public partnerships. Even in public investment projects, financing issues need to be critically examined as the government has accepted a fiscal responsibility framework.
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