COSTA RICA NEWS – Modifications to the Regulation on Infrastructure Financing and Securitization (Reglamento sobre financiamiento de Infraestructura y al Reglamento) now allows for the creation of investment vehicles to finance public works projects.
These investment vehicles can be used for two purposes: to develop the work or to securitize its use or exploitation. With the amendment to the regulations, sustainable infrastructure works can be developed self sufficiently without government intervention.
Patricia Mata, Director of Public Offerings at the Securities Superintendency (Sugeval), told Nacion.com that “… projects may be carried out by a ‘direct funding, separate from the sponsor’, taking the sponsor to be the entity interested in the work. Funding then would based on the cash flow and assets, and the projects would be funded through trusts, partnerships and special purpose real estate development funds. ”
Carlos Arias, Superintendent of Securities, commented that “…You can not aim for all public development projects to have a state guarantee … He said the new regulation also standardizes the regulation along the lines of success stories for this type of project in the region, such as those seen in Colombia and Chile. ”
Source: Nacion.com; Central American Data