World Bank: Brazil Tops Infrastructure Project Spending
Public-private financing for transportation, energy and water infrastructure projects in emerging economies rose 6% last year, to $107.5 billion, the World Bank has reported. But last year's total is down from 2012's level of $140.4 billion, in constant 2014 dollars.
The bank's latest update of its Private Participation in Infrastructure database, released on June 9, shows that, for 2014, Brazil ranked first among 139 "low- and middle-income" countries with $44.2 billion. The country is preparing to host the 2016 Summer Olympics.
Brazil's 2014 total jumped 80% from the previous year's level, sparked by four of the five largest projects in the Latin American-Caribbean region.
The biggest project is $10.5 billion for the Rio de Janeiro airport, whose control was transferred to a concessionaire last year. The amount includes an $8-billion payment to the government, according to the bank.
Other large Brazilian projects are a $3.8-billion São Paulo Metro transit line and two toll roads, totaling $6.4 billion.
Following Brazil were Turkey, Peru, Colombia and India with a combined $34 billion in public-private infrastructure financing, said Clive Harris, the bank's practice manager for public-private investments.
The sub-Saharan Africa region saw investment plunge 72% last year, to $2.6 billion, which the bank said is due to a falloff in energy-project volume.
Transportation led the sectors in the volume of investment, with $55.3 billion last year.
Airports accounted for the second-largest share of the transport sector, with $13.2 billion for five projects, led by the Rio de Janeiro airport.
The bank defines "investment" as commitments at the time of financial closings. The energy sector excludes oil and gas exploration projects.