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Latin America Investment News on Viva Tropical

Guatemala to Invest $1.5 Billion in Road Infrastructure

Article Summary:

Guatemala will invest $1.5 billion in road infrastructure this year. Among the projects announced are two cross country roads, one linking the Pacific with the Atlantic and another linking Mexico with El Salvador.

Photo Credit: El Periodico

Original Article Text From El Periodico via Google Translate :

Government Wants To Invest U.S. $ 1,525 Billion On Bridges And Highways

President Otto Perez announced at the opening of the Ninth International Fair of Construction, a number of major road infrastructure projects, among which there are two roads, a port to port (the Santo Tomas de Castilla, Izabal, the Quetzal, Escuintla) and a border to border (from Mexico to El Salvador).

“We can not speak of a country willing to compete regionally if we have the conditions of ports, airports and roads in good condition,” said Perez.

Communications Minister, Alejandro Sinibaldi, explained that the U.S. $ 1,525 billion will be distributed as follows: U.S. $ 650 million to build the road from the border to Pedro de Alvarado Tecum Uman via the CA-12 and expand to 4 lanes. The continuation of the CA-9 north of El Rancho, El Progreso, Santo Tomas de Castilla, Izabal, which would link port to port, would cost $ 450 million.

Besides the construction of a new bridge to the capital income (in addition to the Belize Bridge), which cost $ 65 million. For new alternate routes in the city would be allocated $ 135 million, and to pave local roads that includes the Zero Hunger program, U.S. $ 225 million.

“The program seeks to leverage infrastructure master the geographical position of our country. In the next 15 days we will be evaluating the financing that we have available, “said Sinibaldi.

Where will the money? Need more debt or higher taxes?
Sinibaldi not rule apply foreign financing, public-private partnerships or other mechanisms that enable them to carry out the works, such as creating a new tax.

“We have set a goal for the next five months we start with the project,” he said.

Economist Miguel Gutierrez describes as “spectacular” project, however, wonders ˘ Where will the money to run it? Recommended to be “somewhat conservative” with public-private partnerships because there are many studies that give private returns to the road.

“The issue of debt you first have to order it and it will take time, today Guatemala is a country that is borrowing from the most expensive in the world,” said Gutierrez.

One of the concerns is that economists have borrowed Guatemala rapidly during the past government, and affordability (ratio of public debt and tax revenue) approaches the critical level, so to continue borrowing could become unsustainable.

We attempted to interview Pavel Centeno, Finance Minister on mechanisms to finance the works, but did not answer your phone calls.

Link to Original Article:

From El Periodico

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