PPPs, transportation, transmission, and logistics development
Infrastructure is the critical enabler for all other sectors in LATAM South. The region faces significant investment gaps: Peru estimates a USD 110-160 billion deficit across transportation, sanitation, and energy. Chile is tendering USD 11.7 billion in new projects. Colombia's 4G and 5G programs cover over 15,000 km of roads plus rail, ports, and airports. Argentina requires massive transmission expansion to unlock its renewable and mining potential.
For European investors, infrastructure in LATAM South represents both direct investment opportunities through Public-Private Partnerships (PPPs) and essential risk mitigation for mining, energy, and agricultural assets. Projects that lack adequate transport, energy transmission, or port access face elevated delivery risk. Understanding and monitoring infrastructure readiness is a core part of Montis Silva's on-the-ground advisory approach.
Peru faces one of the largest infrastructure investment gaps in the region, estimated at USD 110-160 billion spanning transportation (44%), sanitation (20%), healthcare (16%), water (9%), and telecommunications (6%). ProInversion, Peru's investment promotion agency, released a 2025-2026 PPP portfolio of 102 projects valued at approximately USD 41 billion, with an additional USD 19 billion under structuring. Projects include railway and metro lines, large-scale irrigation, and energy infrastructure.
Major projects in progress include Lima metro line construction, Jorge Chavez International Airport expansion, and multiple energy transmission projects. The government has launched a "deregulatory shock" comprising over 400 measures to reduce bureaucracy, including a "deemed approval" system for certain environmental permits. Peru's open investment environment grants national treatment to foreign investors, supported by the U.S.-Peru Trade Promotion Agreement (PTPA) and bilateral investment treaties with EU member states.
Sources: U.S. State Department Investment Climate Statement 2025; U.S. Trade.gov Peru Infrastructure; ProInversion; European CEO/ProInversion Interview.
Chile is significantly scaling infrastructure investment, with plans to tender 22 new contracts worth USD 11.7 billion in 2024-2025, complementing 40 ongoing projects (USD 9.67 billion) and 10 projects in tender (USD 6.31 billion). The Ministry of Public Works has a record 2025 budget of 3.8 trillion Chilean pesos. Key transportation projects include multiple Route 5 highway sections (USD 310-931 million each), the Santiago-Valparaiso railway (USD 3.28 billion), and the Santiago North-West Orbital Highway (USD 987 million).
Energy transmission is a critical investment area. The National Energy Commission approved 34 expansion works totaling approximately USD 2.26 billion, including a major HVDC line (Lo Aguirre - Entre Rios, USD 1.3-1.5 billion) essential for connecting renewable generation in the north to demand centers. Other projects include desalination plants (Coquimbo, USD 286 million), airport modernization (Southern Airport Network, USD 273 million), and public transportation corridors. Chile's established PPP concession model continues to attract international investors.
Sources: AX Legal Chile Infrastructure Pipeline; InvestChile Infrastructure Concessions; Legalink Investment Opportunities; Fresh Fruit Portal Logistics.
Colombia's infrastructure is being transformed through the Fifth Generation (5G) program, managed by the National Infrastructure Agency (ANI). Building on the 4G program (USD 25 billion, 8,000 km of roads, 66% complete), the 5G initiative integrates roads, rail, airports, and waterways with a focus on sustainability and rural inclusion. The 5G road portfolio alone covers over 7,000 km. Key road projects include Pasto-Popayan (USD 2.83 billion), Buga-Buenaventura (128 km with IDB financing of USD 315 million), and Villeta-Guaduas (USD 3.5 billion equivalent).
The airport sector is undergoing USD 2.7 billion in expansion, including El Dorado International Airport upgrade (70+ million passengers capacity) and the new Bayunca Airport near Cartagena (USD 950 million private PPP). Rail is being revived through the National Railway Plan, with the La Dorada-Chiriguana corridor (526 km, USD 843 million PPP) and Bogota Metro Line 1 (50% complete by March 2025). The Canal del Dique environmental project (USD 721 million) and Puerto Antioquia deep-water terminal (USD 650-800 million) further expand port and waterway infrastructure.
Sources: U.S. Trade.gov Colombia Infrastructure; IDB Invest; Financial Times; Infrastructure Brief; ANI.
Argentina's infrastructure needs are driven by two converging forces: the mining boom requiring transport and energy corridors for remote projects in the Andes and Patagonia, and the renewable energy expansion requiring massive transmission capacity. The lack of transmission infrastructure is identified as the primary bottleneck hindering both renewable generation distribution and mining project development across the country.
The National Hydrogen Development Strategy alone requires 30 GW of electrolysis and 55 GW of renewable capacity, necessitating extensive grid and port infrastructure. The RIGI framework is designed to attract large-scale infrastructure investment alongside mining and energy projects. Key corridors include Patagonian wind-to-port infrastructure for green hydrogen export, lithium corridor logistics in the northwest (Salta, Catamarca, Jujuy), and copper project access roads and energy supply in San Juan and Catamarca provinces. Argentina's government reforms, including reduced regulation and the RIGI incentive regime, aim to unlock private investment in strategic infrastructure.
Sources: U.S. Trade.gov Argentina; Net Zero Circle Argentina; PTX Hub Patagonia; Mining.com Argentina Infrastructure.
Infrastructure investment opportunities across LATAM South include:
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