2022 Perspectives for the Public Sector

34 A Balance Sheet Approach Can Help Tackle Latin America’s Debt Challenges • 5G auction in Chile The benefits of having a better network infrastructure for businesses and consumers are already proven in major developed economies and could have a strong impact in Emerging Economies. 8 However, 5G deployment has only just started in Latin America. Chile was the first major economy in the region to complete a 5G auction in February 2021. With this swift network upgrade, the government expects to further stimulate the economy through improved digital tools, products and services while obtaining valuable fiscal resources. The total amount collected by the Government was $453.5mm and, they are expecting that the future development of the 5G network will bring $3 billion in additional investments over the next 5 years. 9 • Madden-Colon highway project in Panama The Madden-Colon Highway connects the provinces of Panama and Colon, two of the most important economic centers in the Republic of Panama. It extends over 47km, has 19 overpasses, five viaducts, five bridges, three interchanges and two tolling plazas. This $216 million project was a major funding challenge for most operators locally and for the government in 2007. 10 To solve this problem, the government allowed the use of future cash flows from tolls to back the financing of the project. In addition, the government provided a guarantee to substantially boost the financing options. With all these enhancements, the project got access to 2 different facilities, the first one for 14.5 years and the second one for 13 years. 8 “Artificial Intelligence and 5G Mobile Technology Can Drive Investment Opportunities in Emerging Markets”, Peter Mockel and Baloko Makala. EM Compass, Emerging Markets, Note 76, December 2019. www.ifc.org/thoughtleadership . 9 CNN Chile, 31/07/2020. 10 Source: https://www.gacetaoficial.gob.pa/pdfTemp/25949/8245.pdf