First Summit of the Americas:
HEMISPHERIC INFRASTRUCTURE
The Miami summit placed great importance on
hemispheric integration. It emphasized the role of the
public and private sectors in funding and creating economically and
environmentally sound projects. The Miami Plan of Action, therefore,
encouraged multilateral development banks to work with governments
and, when appropriate, private groups to develop mechanisms that
deal with topics such as loans and investments. It also encouraged
governments to draw on other regional and sub-regional experiences
and support infrastructure development.
Major infrastructure projects have been initiated
in a wide range of areas since the Miami Summit. The Inter-American
Development Bank (IDB), with the support of the Multilateral
Investment Fund (MIF) and the Inter-American Investment Corporation
(IIC), has attempted to improve national infrastructures through
Bank financing. 1995 through 1997 saw the IDB provide an average of
$1.6 billion financing annually. Both the IDB and the MIF have been
instrumental in providing private loans and guarantees for private
infrastructure without government counter guarantees.
Pollution prevention, energy conservation, transportation
improvements, water filtration, sanitation, and the strengthening of
regulatory entities and frameworks are some of the areas of concern
they have addressed. The IDB has also organized several
ministerial meetings, held many public conferences, and published
papers on infrastructure matters.
As noted above, the World Bank Group has not been
the only group active in improving hemispheric infrastructure.
The International Finance Corporation (IFC) and the
Multilateral
Investment Guarantee Agency (MIGA) have also assisted. Nonetheless,
the former now finances over $300 million of activities
annually. It created the Private Participation in
Infrastructure Group to deal specifically with infrastructure
financing.
The private sector has also increased its
interest in infrastructure projects, spurring the creation of
numerous equity and quasi-equity funds, valuing several billion
dollars. These include the Latin Infrastructure Fund and Trust
Company for the West. An ever-growing number of infrastructure
projects have also obtained their funding from bond and pension fund
resources.
It should also be noted that the Border
Environment Cooperation Commission, a U.S.-Mexican body which grew
out of the North American Free Trade Agreement (NAFTA), has approved
water and wastewater projects valuing over $260 million. The North
American Development Bank, the bilateral International Boundary and
Water Commission, and the U.S. Environmental Protection Agency have
also funded similar large projects. Canada and the U.S. began the
implementation of the Accord on Our Shared Border in 1995. It
includes bilateral cooperation objectives on a number of customs
transactions, harmonization of border processes, and more efficient
delivery of public services. Energy infrastructure projects,
including approvals for new petroleum and natural gas pipelines
between the US and Mexico, have also resulted in cross-border
initiatives since the summit. Other initiatives to increase
cross-border trade resulting from the NAFTA accord include the
construction of new bridges and border posts.
In Central America, Ministerial meetings have
resulted in significant regional accords aimed at implementing
freight controls, traffic regulation and roadway preservation.
Salvadoran and Honduran private sector foundations even assisted in
the construction, financing and administration of a dry canal
between ports on the Pacific and Atlantic coasts. The Government of
El Salvador, with the help of the Central American Bank for Economic
Integration (CABEI) and the IDB, has also been successful in
resurfacing several highways.
Between Miami and Santiago, responsible
coordinators hoped to more clearly define
"infrastructure," for the general nature of the term
covers a wide range of efforts. They recommended that efforts be
made to implement various projects that are already planned, to
indentify priorities, and to possibly establish a Summit mechanism
for monitoring major infrastructure projects.
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