Arup is a multinational company with 90 offices in 50 countries. They have all types of engineers and architects who work on the design of infrastructure projects and buildings.
The Americas South division of Arup covers work in the south of the United States and Latin America. Torres notes that, in Colombia, there has been a shift from the previous focus on road and rail projects to include renewable energy projects.
Colombia is viewed as an attractive destination for infrastructure investment and is receiving a lot of attention from investors outside the country. Companies from the US, UK and Spain have been traditionally involved in projects. China is also working in Colombia, most recently on the Bogotá metro rail project.
National funding is provided by the Financeria de Desarollo Nacional (FDN) which is primarily owned by the Ministry of Finance and other national financial institutions.
In addition, there are minority shareholders – Sumitomo-Mitsui of Japan, the International Finance Corporation (IFC) and CAF, a development bank focused on Latin America and the Caribbean.
Public-private partnerships have been the primary way of funding infrastructure projects in Colombia. External funding comes from many different sources, including local banks, global banks, pension funds and international lenders, such as the Inter- American Development Bank.
Much of the infrastructure focus in Colombia has been on rebuilding roads to new standards, thereby replacing infrastructure from the 1950s and 1960s. The Duque government planned projects for airports and rail and the current administration of President Gustavo Petro has continued this work.
Torres notes that the overriding goals for ESG and net zero are very important across the region and Arup has a team dedicated to this in Colombia. The concept of social licence is taken into account and considers communities and the environment. “ESG standards for financing are driven by the lenders and financiers. These are incorporated as the project requires.”
Inequality is high throughout the region so countries have varying needs in terms of social infrastructure. Torres says “Communities will eventually get to the same standards as the US and Europe. They are able to learn from best practices elsewhere and implement in their own projects and investments.”
As to the outlook for infrastructure investment in Latin America, Torres believes that transportation and energy will continue to be the highest priorities. Although digital connectivity is important and certainly desirable, it is less of an urgent need than many social infrastructure projects.
Read other interviews:
- Ada Cerne, Edmond de Rothschild Asset Management
- Alex Traube-Childs, InfraCo Africa
- Juan Carlos Quiñones Guzmán, Colombian Chamber for Infrastructure
- Cheryl Edleson Hanway, Regional Industry Director for Infrastructure, Energy & Mining; Europe, Latin America & the Caribbean, International Finance Corporation (IFC)
