Building a modern highway from Colombia to Mexico would provide a big boost to the economic integration of the isthmus.
Unlike the hitherto unproven economic viability of various other inter-oceanic canal projects (wet and dry) announced in virtually every country of the region, a "dry canal", which would improve the current transit conditions of goods and people from Mexico to Colombia, does appear to be the best investment in infrastructure for the isthmus.
Resonant rubblization is the process of fracturing existing PCC pavement, in place, ready for a direct asphalt overlay.
Resonant rubblization was the method of choice on one of the busiest and most heavily traveled roads in Panama City, Panama, Avenida Domingo Diaz. Including multiple projects with various contractors throughout Central America that past 5 years, rubblization of Avenida Domingo Diaz was successfully performed in 2012 with the consortium ICA-MECO. Rubblization, with a hot mix asphalt overlay, is proven to have an initial design life of 22+ years, while being 65% less expensive and 5 times faster compared to total reconstruction.
The Central American Bank for Economic Integration is inviting bids for consulting services in two projects on a Pre-Investment Road Program for Honduras.
General Objectives of the consultancy:
To produce complete documentation, so the project can proceed to carry out the bidding processes for the execution and the supervision of the project of the same name.
Production and logistics inefficiencies arising from their small size means that small scale producers have profit margins that are 19% lower than those of large companies.
An article in Elfinancierocr.com, comments on the ECLAC study "Panorama of the integration of Latin America and the Caribbean 2011-2012",which states that "logistics is a key dimension that influences the competitiveness of enterprises and their inclusion in value chains. "
From 17 to 18 October 2012 there will be a meeting in Bogota for major infrastructure project developers, investors, employees and service providers.
Colombia is aiming to triple investment in infrastructure in order to modernize roads and railways, and through this optimize the implementation of trade agreements with global economies.
Latin America needs to double its investment in infrastructure, setting clear and long lasting rules in order to create strong and efficient public-private partnerships.
According to recent studies, on an international grading system the average grade for infrastructure in Latin America is 3.6 points out of 10, compared to the 5.4 average of the member countries of the Organization for Economic Cooperation and Development (OECD) , said the Spanish State secretary for Infrastructure, Rafael Catala.
At the First Central American Forum on Energy and Infrastructure Project Finance, participants highlighted the number of ventures taking place in Central America in these sectors.
The Panama Canal expansion is just one example that stands out of the many investment projects in energy and infrastructure, both public and private, going on in Central America, in contrast to the sluggishness in Europe, according to participants in the industry forum held in Panama.
The storms that have hit Central America in last ten days have affected the sector which makes up 8% of GDP in the region.
As well as the decline in tourist arrivals, there are also substantial damages to infrastructure with collapsed roads and bridges, making it impossible to achieve growth targets set for this year.
The Minister of Tourism in El Salvador, Jose Napoleon Duarte, said, "People who had trips scheduled this month have not traveled. No one has been thinking of traveling and this will completely overthrow all of the statistics at the end of the year. It is better to speak with sincerity. "
The Government of Belize awarded a $ 20 million contract to complete 37 km of highway connecting the south of the country with Guatemala.
The project is being financed by the Kuwaiti Fund for Economic Development and the Development Fund of the Organization of Petroleum Exporting Countries.
The Belizean Government said in a press release that the project will improve trade with neighbors in Central America and motivate the creation of a second border crossing with Guatemala."
The Inter-American Development Bank (IDB) has prioritized the project to construct a 3,200km road system from Mexico to Panama.
The IDB has targeted $1,800 million annually to developing its "Mesoamerican Project". This program includes the Pacific Corridor highway network as one of its top priorities.
"The bank estimates that these works will require investments of $125 million in Mexico, $66 million in Guatemala, $222 million in El Salvador, $89 million in Honduras, $177 million in Nicaragua, $345 million in Costa Rica and $46 million in Panamá," reports Sigloxxi.com.
Over the next 10 years Latin America should invest 4% of its Gross Domestic Product in infrastructure.
Norman Anderson, president of CG/LA, the consulting company behind the Latin American Leadership Forum, remarked that investing in “good projects” is crucial for Latin America to have a greater weight in the global economy.
The region’s 50 largest infrastructure projects will be showcased at this forum, in which over 500 executives from engineering and technology firms and authorities will participate. They will analyze the business opportunities created by these 50 projects, which could require around $76 billion in investment.
This donation will boost the Pacific Corridor project, a highway system connecting Mexico with Panama.
The initiative seeks to improve infrastructure and road safety, and to make trade easier by improving customs procedures and controls.
$1.1 million are earmarked to make it easier to cross the national borders, contributing to make vehicle and goods transit more efficient, fostering regional trade.
Latin America's weakness in infrastructure will be once again evident during the upcoming economic recovery.
"A study by the World Bank in 2003 warned of the low investment levels of the region, and stated that to reach infrastructure levels similar to those of South Korea, the region would have to invest between 4% and 6% of its GDP for 20 years. And the region is far, far away from achieving this".
Panamanian president Ricardo Martinelli proposed a new alternative for a highway linking the Americas, through Kuna Yala.
At the Tuxtla Summit, hosted by Costa Rica, the proposal of a highway linking Colombia with Panama was discussed again. This road would travel through the so called "Darién Gap".
"This proposal has been rejected by environmentalist groups, arguing that a road through Darién will affect the ecosystem.
Costa Rica (43 in the world) rank at the top in Central America, followed by Panama (53), El Salvador (56), Guatemala (58), Honduras (66), Nicaragua (77).
The Enabling Trade Index, featured in the report presented by the World Economic Forum, measures institutions, policies and services facilitating the free flow of goods over borders and to destination.