PUEBLAPANAMA PLAN

1
Inter-American Development Bank Regional
Operations Department II
PUEBLA-PANAMA PLAN
Presentation by Marcelo Antinori
2
Inter-American Development Bank PLAN
PUEBLA-PANAMA

• Population approx. 64 millon
• Combined GDP approx. 143 billion

The Mesoamerican Region comprises the
Southern and Southeastern states of Mexico
(Campeche, Chiapas, Guerrero, Oaxaca, Puebla,
Quintana Roo, Tabasco, Veracruz and Yucatan)
plus the seven countries in the Central American
Isthmus Belize, Costa Rica, El Salvador,
Guatemala, Honduras, Nicaragua and Panama.
3
Inter-American Development Bank PLAN
PUEBLA-PANAMA

• Milestones in the PPP process
•  
• November 2000 Mexican President Vicente Fox
  invites Central American presidents to work
  together on an ambitious regional integration
  plan.
• June 2001 Plan Puebla-Panama is launched at a
  Mesoamerican presidential summit meeting in San
  Salvador.
• June 2002 At a presidential summit meeting in
  Merida, the Mesoamerican presidents set a course
  towards regional action plans in key social areas.

4
Inter-American Development Bank PLAN
PUEBLA-PANAMA

• Mesoamerican Initiatives
•  
• Energy Interconnection
• Highway Interconnection
• Telecommunications Interconnection
• Trade Facilitation and Competitiveness
• Human Development
• Sustainable Development
• Natural Disaster Prevention and Mitigation
• Tourism

5
Inter-American Development Bank PLAN
PUEBLA-PANAMA

• PPP has proven to be
• an efficient coordination mechanism to implement
  joint projects
• an agile and flexible institutional framework
• a forum to promote consensus on strategic issues

6
Inter-American Development Bank PLAN
PUEBLA-PANAMA

• Integration of Physical Infrastructure
• Energy
• Transport
• Telecommunications 

7
Plan Puebla-Panama

• Electrical Interconnection System of the Central
  American Countries (SIEPAC)
• Mexico-Guatemala Connection
• Guatemala-Belize Connection
• Rural Electrification
• Renewable energy

Mesoamerican Energy Initiative
Objective To unify the Mesoamerican energy
markets in order to reduce electricity costs for
users and to improve business competitiveness

8
Mesoamerican Initiative for Energy Interconnection
Inter-American Development Bank PLAN
PUEBLA-PANAMA

• Integrate Energy
• Markets
• Reduce energy costs

• SIEPAC Fully
• Financed
• Total Cost
• US 320 millon

• ME-GU Project Fully Financed
• Total Cost US 44 million

9
Mesoamerican Initiative for Energy Interconnection
Inter-American Development Bank PLAN
PUEBLA-PANAMA

• Main Challenge for the near future
• Interconnecting Central America (Panama) with
  South America (Colombia)
• Expand rural electrification
• Promote renewable energy

10
Plan Puebla-Panama

• Pacific Corridor
• Atlantic Corridor
• Regional complementary roads and connections
• Customs modernization
• Harmonization of regulations and technical
  norms
• Ports and airports modernization

Mesoamerican Transport Initiative
Objective To increase internal and external
connectivity for regional economies

11
Mesoamerican Transport Initiative
The memorandum of understanding signed on June,
2002 defines the legal, institutional, regulatory
and operational framework for the road initiative
which includes the definition of the corridors of
the PPP (RICAM).

12
Mesoamerican Highway Interconnection (RICAM)
Tampico
Tuxpan
Coatzacoalcos
Chetumal
Puebla
Villa Hermosa
BELMOPAN
Flores
Ocozocoautla
Oxaca
Arriaga
Puerto Cortés
San Pedro Sula
Tapachula
Cd. GUATEMALA
Cd. Hidalgo
TEGUCIGALPA
SAN SALVADOR
Tecún Uman
Escuintla
El Amatillo
Hachadura
Jícaro Galan
La Libertad
San Luis
El Espino
La Unión
San Isidro
MANAGUA
Chinandega
Leon
Masaya
Nandaime
Pacific Corridor
Peñas Blancas
SAN JOSÉ
Atlantic Corridor
Punta Arenas
Puerto Limon
Cartago
Puerto Quepos
Sixaola
Colón
Complementary Roads and Connections
Palmar Sur
PANAMÁ
Additional roads under study
David
Santiago
13
Mesoamerican Highway Interconnection (RICAM)
RICAM Costs and Financing

• Virtually all main corridors are fully financed
  

14
Mesoamerican Highway Interconnection
(RICAM)Atlantic Corridor
15
Mesoamerican Highway Interconnection (RICAM)
Atlantic Corridor Honduras and El Salvador (the
dry canal project) 2003/2004
Objective To improve the access of exports
from El Salvador, Nicaragua and Honduras to the
international markets
16
Mesoamerican Highway Interconnection (RICAM)
Atlantic Corridor Honduras and El Salvador (the
dry canal project)

• Distance 175 Km
• Total Investment 90 million
• Financed by Concession
• Rehabilitation and improvement (2004)

Puerto Cortés

• Distance 43 Km
• Total Investment 45 million
• Financed BCIE Nordic Funds
• Rehabilitation and improvement (2003)

San Pedro Sula
Villa San Antonio
TEGUCIGALPA

• Distance 100 Km
• Total Investment 93 million
• To be financed BCIE Japan Funds
• Rehabilitation and improvement (2005)

SAN SALVADOR
Goascarán
Sirama

• Distance 12 Km
• Total Investment 20 million
• Financed BCIE
• Rehabilitation (2003)

Cutuco
17
Mesoamerican Highway Interconnection (RICAM)
Atlantic Corridor Honduras and El Salvador (the
dry canal project)

• Cutuco Port
• Cutuco Port - El Amatillo
• El Amatillo bridge
• El Amatillo Goascaran Villa San Antonio
• Villa San Antonio Comayagua San Pedro de Sula
• San Pedro de Sula Cortes Port
• Cortes Port

18
Mesoamerican Highway Interconnection (RICAM)
Complementary Roads Nicaragua and Costa
Rica 2004/2005
Objective To facilitate the access of
Nicaraguan exports to the Atlantic port of Puerto
Limon
19
Mesoamerican Highway Interconnection (RICAM)
Complementary Roads Nicaragua and Costa Rica

• Distance 153 Km
• Total Investment 70 million
• Required financing
• Rehabilitation (2005)

Caribbean
Acoyapa

• Distance 178 Km
• Total Investment 70 million
• Required financing
• Rehabilitation (2005)

MANAGUA
Los Chiles

• Distance 108 Km
• Total Investment 259 million
• Required financing -Concession
• Rehabilitation (2005)

San Carlos
Bajos de Chilamate
Vuelta Kooper
Sta Clara
SAN JOSÉ
Puerto Limon
20
Plan Puebla-Panama

• Mesoamerican Information Highway (AMI)
• Regional Regulatory Framework

Telecommunication Service Integration Initiative
Objective To increase access to information for
citizens and regional businesses by developing a
telecommunication infrastructure, promoting
universal access and developing a policy and
regulatory framework which will foster public and
private investment.

21
Initiative Integration for Telecommunications
Services
Mesoamerican Information Highway (AMI)

• Significant progress in forging a regional
  consensus
• A Regional Technical Group has been formed by
  representatives from the national companies, as
  well from the government agencies.
• Agreement to invite the private sector to
  construct telecommunication infrastructure (AMI)
  using SIEPAC infrastructure.
• Cost of the project US 60.000.000
• Actual status Consultants hired to prepare the
  project

22
Inter-American Development Bank
Merida Presidential Summit (June 2002 )

• Human Development
• The priority 

23
Inter-American Development Bank PLAN
PUEBLA-PANAMA
PPP The New Challenge Merida Presidential
Summit (June 2002 )

• New priorities and more ambitious goals work
  towards a range of regional action plans in key
  social areas
• Health
• Education
• Sustainable development
• Rural development
• Indigenous peoples development
• Prevention and mitigation of natural disasters

24
Inter-American Development Bank PLAN
PUEBLA-PANAMA
Human Development Initiative
Health

• A Memorandum of Understanding was signed in
  September 2003 to implement a regional health
  program in Mesoamerica.
• Main areas to be covered
• An action plan which includes special attention
  to 1) Tuberculosis and vector-transmitted
  diseases (malaria and dengue) control and
  prevention and 2) Health in mobile and migrant
  populations
• Definition of an action plan for Nutrition
• Epidemiological surveillance

25
Inter-American Development Bank PLAN
PUEBLA-PANAMA
Human Development Initiative
Health

• Main challenges in the short term
• A regional information system for epidemiological
  surveillance.
• Two reference public health laboratories, one in
  Mexico and the other in Central America

26
Inter-American Development Bank PLAN
PUEBLA-PANAMA
Human Development Initiative
Education

• Ministers of Education and PPP Commissioners
  signed a Memorandum of Understanding
  establishing an Education Project Accreditation
  and Promotion Committee. (November 2002).
• The Committee provides a framework to identify
  and promote regional projects in education.

27
Sustainable Development Initiative
Inter-American Development Bank PLAN
PUEBLA-PANAMA

• A Memorandum of Understanding was signed in June
  2003 to promote the conservation and sustainable
  management of natural resources through active
  community participation in environmental
  programs.
• Next Steps
• Implementation of the action plan for
  Sustainable Development with emphasis on
  environmental management and sustainable
  development of Border Areas

28

Inter-American Development Bank PLAN
PUEBLA-PANAMA
Sustainable Development Initiative
Rural Development

• An action plan and a Memorandum of Understanding
  is being prepared by the Ministers of
  Agriculture. (for ratification in November 2003)
• Main areas
• Security of the food supply
• Integration of regional agribusiness markets
• Fisheries regulation
• Promotion of new farming technologies
• Improvement of animal and plant health measures

29
Natural Disaster Prevention and Mitigation
Inter-American Development Bank PLAN
PUEBLA-PANAMA

• A Memorandum of Understanding will be signed
  reflecting a strategic vision for the
  Initiative, with country commitments for action
  in two areas
• Adoption of risk reduction measures as a core
  element of regional development strategy and
  sectoral projects
• Implementation of prevention and mitigation
  projects

30
Tourism
Inter-American Development Bank PLAN
PUEBLA-PANAMA

• PPP Tourism Initiative promotes sustainable,
  low-impact tourism to generate economic growth
  and employment, capitalizing on the Mesoamerican
  regions competitive advantages, its natural
  attractions and its cultural heritage.
• Projects
• Development of integral tourism circuits (Mundo
  Maya)
• Ethno-tourism
• Certification of sustainable tourism
• Airport security strengthening

31
Inter-American Development Bank

• Integration and Competitiveness
• The new challenge 

32
Inter-American Development Bank PLAN
PUEBLA-PANAMA
Trade Facilitation and Competitiveness

• Builds on a framework of free trade agreements to
  promote regional competitiveness
• Technical assistance projects approved to
  promote customs and border crossings
  modernization and reduce non-tariff trade
  barriers.
• Regional technical assistance is being prepared
  to promote joint ventures and SME participation
  in regional trade.

33
Inter-American Development Bank PLAN
PUEBLA-PANAMA
Next Steps

• Creation of the Mesoamerican Competitiveness
  Commission (CMC)
• Development of a Regional Competitiveness Plan
• Creation of the Mesoamerican Common Market

34
INITIATIVE FOR REGIONAL INFRASTRUCTURE
INTEGRATION IN SOUTH AMERICA IIRSA
35

• Introduction
• Institutional Framework
• IIRSAs Foundation
• Recent Developments of the Initiative
• Next Steps

36
Inter-American Development Bank REGIONAL
INFRASTRUCTURE INTEGRATION IN SOUTH AMERICA
Introduction
What is IIRSA

• IIRSA initiative seeks to integrate the physical
  infrastructure to promote logistic and commercial
  integration within the South American Region and
  between the Region and the rest of the global
  economy.

37
Inter-American Development Bank REGIONAL
INFRASTRUCTURE INTEGRATION IN SOUTH AMERICA
Introduction
The integration of physical infrastructure
(transportation, energy and telecommunications)
in the countries of the region will

• Increase international commerce.
• Facilitate the integration of production chains.
• Create a more competitive insertion of the
  countries of the region in the global markets.
• Contribute to sustainable development.

38
Introduction
The Initiative has committed political support
from the countries authorities

• Presidential Meetings
• First South American Presidential Summit,
  Brasilia, September 2000
• Second South American Presidential Summit,
  Guayaquil, July 2002
• XXIII MERCOSUR Presidents Meeting Brasilia,
  December 2002
• Rio Group Presidents Meeting, Cusco, May 2003
• XIV Consejo Presidencial Andino, Quirama, Junio
  de 2003
• Ministerial Meetings
• Montevideo, December 2000
• I Executive Steering Committee Meeting (CDE),
  Santa Cruz de la Sierra, April 2001
• II CDE Meeting , Buenos Aires, December 2001

39
Introduction
Increased Regional Trade
2000
40
Inter-American Development Bank REGIONAL
INFRASTRUCTURE INTEGRATION IN SOUTH AMERICA
Introduction

• High intensity trade flows will foster demands on
  infrastructure in the integration hubs

Trade Flows 2010
Most Dynamic Pairs

• More than US 10 billion
• per year
• US 4 to US 10 billion per year
• US 2 to US 4 billion per year
• US 1 to US 2 billion per year
• US 500 million to US 1 billion per year

41
Institutional Framework
Executive Steering Committee ESC
Ministers of South American Governments Focus
Strategic direction and political decision
Technical Coordination Committee TCC
Executive Technical Groups ETGs
National Commissions (Coordination)
ETGs Mangers and National Coordinators Mandate
Analysis of specific Integration and Development
Hubs and Sectoral Processes
Mandate Provide Technical and Financial
Assistance
TCC Secretariat Buenos Aires, AR
42
IIRSAs Foundation
Action Plan for Integration of Regional
Infrastructure under two complementary approaches
Integration and development Hubs
Sectoral Integration Processes
43
Integration and DevelopmentHubs
44
Inter-American Development Bank REGIONAL
INFRASTRUCTURE INTEGRATION IN SOUTH AMERICA
Integration and Development Hubs
Geo-economic reference for planning and
management of regional sustainable development

• Infrastructure network coverage and population
  concentration under a regional vision.
• Present and future trade flows
• Spatial characterization according to the
  consolidation of trade flows and growth
  potential.
• Emerging spaces
• Consolidated spaces
• Spaces with growth potential
• Social and environmental sustainability

45
?
Integration and Development Hubs (1) Mercosur
Chile (2) Andean (3) Bioceanic Central
Hub (PerúChileBolivia-ParaguayBrasil) (4)
Central Amazon ( Amazons Multimodal Hub) (5)
Guayanes Shield Hub (VenezuelaBrasilGuyanaSurin
am) (6) South Amazon (PerúBrasilBolivia) (7)
Bioceanic Capricorn Hub ( Porto
AlegreAsunciónJujuyAntofagasta) (8) Southern
Bioceanic Hub (Eje TalcahuanoConcepciónNeuquénB
ahía Blanca) (9) Plate Basin Hub (
Orinoco-Amazonas-Plata)
?
?
?
?
?
?
?
?
46
Inter-American Development Bank REGIONAL
INFRASTRUCTURE INTEGRATION IN SOUTH AMERICA
Sectoral Processes

• Identification of regulatory, institutional and
  operative bottlenecks that hinder infrastructure
  integration and courses of action to solve them.
• Identification of potential areas for normative
  convergence.

47
Inter-American Development Bank REGIONAL
INFRASTRUCTURE INTEGRATION IN SOUTH AMERICA
Sectoral Processes

• Energy Markets Integration
• Telecommunications and Information Technology
• Border Crossing Facilitation
• Maritime Transport Operating Systems
• Multimodal Transport Operating Systems
• Air transport Operating Systems
• Financial Instruments for Regional Physical
  Integration Projects

48
Inter-American Development Bank REGIONAL
INFRASTRUCTURE INTEGRATION IN SOUTH AMERICA
Recent Developments of the Initiative
Conceptualization and development of the Business
Vision of the Development Hubs

• Spatial characterization of current and
  prospective productive activities and its
  relationship with infrastructure
• Identification of main bottlenecks and missing
  links
• Identification of a portfolio of projects and its
  relationship with productive activities
• Identification of strategic projects within the
  Hub

49
Inter-American Development Bank REGIONAL
INFRASTRUCTURE INTEGRATION IN SOUTH AMERICA
Recent Developments of the Initiative
Implementation of a methodology for project
grouping in Regional Integration Projects in four
Integration Hubs

• Identification of the main groups of projects in
  each Hub
• Discussion and interchange of project synergies
  under a transnational context.
• Broader technical discussion among the countries
• Steps toward the construction of a regional
  integration and development vision

50
Inter-American Development Bank REGIONAL
INFRASTRUCTURE INTEGRATION IN SOUTH AMERICA
Recent Developments of the Initiative
Conceptualization and development of the Sectoral
Integration Processes

• Diagnostic studies for the seven sectoral
  processes are culminated and a corresponding
  action plan has been proposed.

Next Steps
Sectoral Processes Action Plans

• Discussion and agreement on action plans of the
  sectoral integration processes
• Carry out actions to implement the agreed Action
  Plans for each process

51
Inter-American Development Bank REGIONAL
INFRASTRUCTURE INTEGRATION IN SOUTH AMERICA
Recent Developments of the Initiative
Conceptualization and development of the Sectoral
Integration Processes

• A working plan for Telecommunications and
  Information Technology has been agreed with the
  countries of the region.
• Development of a regulatory agendas for
  connectivity and a telecenters network
• Development of regional models to extend
  connectivity to remote areas
• Support to the regional network of educational
  portals
• Development of content and on line services for
  micro, small and medium micro enterprises.

52
Inter-American Development Bank REGIONAL
INFRASTRUCTURE INTEGRATION IN SOUTH AMERICA
Recent Developments of the Initiative
Development of a working tool for the formulation
of a Strategic Vision for South America 2020

• A proposal was presented in the Ministerial
  Executive Steering Committee Meeting for
  discussion with IIRSA members
• A process of validation and integration with the
  Integration and Development Hubs and Sectoral
  Integration processes is being carried out

53
Inter-American Development Bank REGIONAL
INFRASTRUCTURE INTEGRATION IN SOUTH AMERICA
Challenges

• Involve the private sector in financing,
  construction and operation of infrastructure
  projects
• Promote Public Private Partnerships (PPP) for the
  development of infrastructure projects
• Concentrate investments in key projects in the
  corridors
• Strengthen environmental and social awareness in
  the design and development of projects

54

• Visit our Web Page
• Plan Puebla Panama
• www.iadb.org/ppp
• IIRSA
• www.iirsa.org