The Pacific Alliant – comprising Mexico, Colombia, Peru and Chile – has agreed to set up an infrastructure investment fund.
Intended to improve connectivity in the region, the fund will receive investments both from private entities and from institutions from within the bloc and globally. These include the Inter-American Development Bank (IDB) and the Development Bank of Latin America (CAF), according to Chile’s finance minister Rodrigo Valdés.
Martín Vizcarra, president pro tempore of the alliance, said that the primary objective now is to decide what structure the fund will have. It remains to be established how investors will be matched to projects, the type of corporate governance the fund will have, and each Pacific Alliance country’s share in it.
Speaking at the XIII Summit of the Pacific Alliance, Vizcarra said, “This fund will attract private investment to reduce our infrastructure gap and boost competitiveness.”
Authorities have estimated that the initiative could mobilise more than US$100 billion.