Maintain, Repair, and Operate: Driving Road Sustainability in Latin America
In the extensive network of roads that interconnect Latin America, sustainability is more than a goal; it is an urgent necessity. Communication routes are the backbone of the regional economy, facilitating commerce, tourism, and socioeconomic development. However, the proper maintenance of these infrastructures presents a constant challenge for governments and responsible entities.
Public-Private Partnerships (PPP) have emerged as an efficient model to address these challenges, especially under the maintenance, repair, and operations (MRO) scheme. This collaborative strategy involves public and private actors in the comprehensive management of road infrastructure, ensuring operational continuity, extending its lifespan, and ensuring not only the comfort but also the safety of the users who travel on them.
Private Risk, Public Benefit
One of the main benefits of PPP-MRO is the transfer of risks to the private sector. Instead of relying exclusively on fluctuating government budgets, private companies take on the responsibility of guaranteeing the quality and safety of the roads in exchange for a predictable income stream over time through toll collection, which guarantees a percentage for state revenues.
This approach incentivizes efficiency and innovation, as companies seek to optimize their processes to maximize their long-term profitability while ensuring public revenue, not only with savings in infrastructure but also through the toll fee to the state.
Thus, the state greatly benefits from these schemes by being able to schedule a secure income derived from the operation of these projects. Along with budgetary resources saved on roads managed under PPP-MRO schemes, these funds can be allocated to projects with higher social returns in strategic sectors such as health, education, and public safety.
Necessary Sustainability
Additionally, PPP-MRO promotes the adoption of sustainable practices in road management. Private companies have an economic incentive to implement more effective technologies and environmentally friendly materials, thereby reducing the environmental impact of maintenance and repair operations. From using recycled pavements to implementing intelligent traffic management systems, these initiatives contribute to the conservation of natural resources and climate change mitigation.
In the particular case of Marhnos®, any investment made in infrastructure operation must comply with Environmental, Social, and Governance (ESG) criteria mandated by its investors and the model of the Alternative Capital Funds that finance its projects. Therefore, there is not only an economic motivation but also a social commitment to the environment.
Prevention and Safety
Another crucial aspect of PPP-MRO is their ability to improve operational efficiency and road safety through the implementation of preventive maintenance programs and rapid emergency response, reducing downtime and minimizing risks for road users.
This not only enhances the traveler's experience but also positively impacts the economy by reducing costs associated with accidents and delays.
Therefore, Public-Private Partnerships under the MRO scheme represent a comprehensive and sustainable approach to road infrastructure management in Latin America, which is being leveraged in Mexico, Guatemala, Peru, and Colombia. These partnerships are paving the way for a future where roads are safe, efficient, and environmentally friendly.