Key insights: Shaping Latin America's development through infrastructure

Key players discussed investment strategies, energy transition and technological advances in Latin America’s infrastructure

July 8, 2024Infrastructure
Written by Belén Palkovsky

The Latin American region has been facing several structural changes in both political and economic spheres. This scenario, coupled with the imminent energy transition and the consequences of global conflicts, creates an unusual landscape for investments in infrastructure projects. 

The Latam GRI Infra & Energy 2024 conference, held in May in New York, brought together over 170 senior executives, investors, public sector representatives, and other infrastructure players to engage in 19 high-level debates about the region's future, presenting current data and projections.

Key discussions addressed the impact of rising interest rates on infrastructure financing, revealing how increased debt costs are pushing projects towards equity financing and short-term funding strategies. The regulatory environment's role in shaping project viability was also explored, emphasizing the challenges of inflation rates and the global cost of capital. 

The conference also discussed energy transition, examining the decreasing levelized cost of energy (LCOE) for renewables and the challenges posed by decentralized generation. The significant potential for green and blue bonds was highlighted, showcasing their growing importance in sustainable investments. 

There is a critical need for cross-sector collaborations, particularly with the energy and telecom sectors, to provide necessary infrastructure such as fiber optics and charging stations for electric vehicles. 

The integration of AI-driven tools to enhance efficiency in various sectors was a transversal topic of the conference. 

This report provides a complete overview of the main discussions, aimed at understanding the evolving landscape of infrastructure and energy in Latin America, highlighting the key insights and projections that will shape the region's development in the coming years.