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The governor of Mendoza province in Argentina, Alfredo Cornejo, is supporting a draft bill to modernize the country's public-private partnership (PPP) law.
Cornejo told senators it was important to share the risk associated with projects with the private sector which would, in turn, enjoy performance-based returns.
"There is a long list of provincial and national works in Mendoza that could be implemented via this model," he said in a Mendoza province press release.
An overhauled PPP law would provide an opportunity to increase and diversify infrastructure investment, the release said.
"We Argentines should take risks on projects from a strategic point of view, with returns in 20 or 30 years if we want quality infrastructure," he said.
The governor noted several projects which could benefit from an amended PPP law. These include the following:
He added the city of Mendoza has 1.6mn residents for which a subway or railway would be needed in the future.
"If we want a greater number of projects and of the best quality, we must share the risk with the private sector," he stressed.
According to the PPP Knowledge Lab, a collaborative online resource created with funding from the World Bank Group and other multilateral lenders, Argentina has had the legal and institutional capacity to implement PPPs since the late 1980s and early 1990s, and has had a PPP law in place since 2001. However, public procurement is cited as the primary means of investment in the country.
Countries such as Chile, Brazil, Mexico, Colombia and Peru, on the other hand, are described as having developed more modern PPP models in recent years.