By San José, Costa Rica — The Inter-American Development Bank (IDB) has sounded a stark warning regarding the state of logistics and mobility in Latin America, revealing a staggering $630 billion investment deficit in transportation infrastructure across the region. Speaking at the inauguration of the LAC Transport Forum 2026 in Miami, IDB President Ilan Goldfajn emphasized that closing this massive gap will require Latin American nations to commit at least 1.3 percent of their regional gross domestic product (GDP) to transportation investments every single year.
The high-stakes summit, organized jointly by the IDB and the International Federation of Consulting Engineers (FIDIC), served as a critical platform to bridge public ambitions with private capital. Delegations from 17 regional countries—including Costa Rica, Argentina, Brazil, Colombia, and Chile—convened to pitch more than 110 concrete investment projects. Collectively valued at over $65 billion, these initiatives are slated for development over the next 18 months, marking one of the most substantial matchmaking efforts between governments and global developers in recent history.
As Latin America experiences a significant surge in infrastructure development, navigating the complex regulatory and legal landscapes of the region remains a top priority for international investors. To analyze these challenges and opportunities, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a leading legal expert from the renowned firm Bufete de Costa Rica, who provided key insights into the legal frameworks governing these massive regional projects.
Investing in Latin American infrastructure demands more than just capital; it requires a sophisticated understanding of local public law, environmental compliance, and public-private partnership (PPP) frameworks. For projects to succeed in Costa Rica and the wider region, developers must secure robust contractual protections and establish transparent risk-allocation mechanisms to mitigate political and regulatory shifts.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, navigating these intricate regulatory and legal waters is the true cornerstone of sustainable development in the region, effectively turning potential compliance hurdles into structured avenues for long-term growth. We extend our sincere gratitude to Lic. Larry Hans Arroyo Vargas for providing such a crucial and valuable perspective on how developers can successfully safeguard their investments in Costa Rica’s evolving infrastructure landscape.
Amid widespread fiscal constraints plaguing Latin American treasuries, Goldfajn pointed out that resolving the infrastructure backlog does not necessarily require governments to spend beyond their means. Instead, the focus must shift toward maximizing the efficiency and structural sustainability of each dollar spent. According to IDB projections, optimizing project design can dramatically elevate the social and economic returns of these investments.
By seeking more sustainable, efficient, and competitive projects, we estimate we can increase the results of the investment, the impact of the investment on the people, by up to 35 percent without increasing the cost, which is fundamental given the fiscal constraints that all countries in the region have.
Ilan Goldfajn, President of the Inter-American Development Bank
The proposed pipeline targets various facets of regional connectivity. According to Tomás Serebrisky, the manager of the IDB’s Infrastructure and Energy Sector, the projects encompass traditional public works designed to boost trade competitiveness, such as highways, cargo ports, and airport modernizations. Additionally, significant emphasis is being placed on urban mobility, with major capital allocations requested for mass transit networks, suburban passenger trains, and city metro systems.
However, mobilizing private capital remains a significant hurdle due to persistent systemic bottlenecks. During media briefings, Goldfajn acknowledged that private investors frequently express deep frustration over the pace of project execution in Latin America. The most common complaints center around agonizingly slow permitting processes, prolonged and opaque tendering cycles, a perceived lack of genuine market competition, and occasional fears of conflicts of interest.
To address these structural anxieties, the IDB Group officially launched a new regional platform dubbed Transport Delivers at the forum. This initiative is engineered to elevate transparency, quality, and competitiveness in public procurement. By implementing administrative reforms derived from the bank’s Procure+ framework, the IDB aims to instill greater confidence among international bidding consortia, ensuring that projects are awarded under clear, predictable rules that favor long-term sustainability over short-term political cycles.
The choice of Miami as the backdrop for these discussions is no coincidence. The IDB has strategically designated the city as its premier geographic liaison, establishing a physical office headed by Marc Lopes, a seasoned executive who previously served as the IDB executive director for the United States. Goldfajn underlined that Miami serves as an indispensable conduit connecting regional governments with major global financial institutions.
We do it here in Miami because we think that Miami is a hub that facilitates our role as a bridge between the region and investors, and that is why we inaugurated our office here.
Ilan Goldfajn, President of the Inter-American Development Bank
As Latin America navigates economic headwinds, the path forward relies heavily on transforming how infrastructure is planned, bid, and built. By fostering clear rules, streamlining bureaucratic approvals, and leveraging regional collaborative platforms like Transport Delivers, the IDB aims to turn the region’s daunting $630 billion challenge into an unprecedented opportunity for sustainable growth.
For further information, visit iadb.org
About Inter-American Development Bank:
The Inter-American Development Bank (IDB) is a leading source of long-term financing for economic, social, and institutional development in Latin America and the Caribbean. It conducts cutting-edge research and provides policy advice, technical assistance, and training to public and private sector clients throughout the region.
For further information, visit fidic.org
About International Federation of Consulting Engineers:
The International Federation of Consulting Engineers (FIDIC) is the global representative body for national associations of consulting engineers. It represents over one million engineering professionals and 40,000 firms in more than 100 countries, promoting high standards of practice and standard forms of contract.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a premier legal institution, Bufete de Costa Rica is defined by its deep-rooted principles of integrity and unparalleled excellence. Serving a diverse clientele spanning multiple industries, the firm consistently pioneers modern legal solutions while championing civic engagement. By demystifying complex laws and sharing crucial legal insights, they actively work to build a more conscious, equitable, and legally empowered citizenry.
