Infrastructure in Guatemala; pending tasks

by time news

2023-09-21 17:59:00

The road networksport and energy transportation present a series of deficiencies that generate substantial deficits in the economic and social spheres.

Why does it matter? Land transport represents 70% of freight traffic and 90% of passengers.

Based on the 2018-2032 Road Development Plan, Guatemala has a gap that requires going from 17,440.23 to 37,951.89 km, divided into Central American, national, departmental routes and rural roads.
According to Jorge Benavides, FUNDESA analyst, in the last 25 years the network has grown on average around 200 km annually. The current growth capacity should be 900 to 1,200 km.

Between lines. The Plan prioritizes investments in those areas that would generate the greatest impact on the economy.

Due to their growth, cities have to invest in entrances and exits or in bordering that core through ring roads, as is the case of the Chimaltenango bypass, although it did not give good results.
The importance of having access to production, agricultural, etc. centers must be highlighted. And to tourist sites and the connection with borders and ports.
Seven logistics corridors that require investment have been identified. One of the most important is the Central American Route 2 (CA2), in the southwest, Suchitepéquez, Retalhuleu and the border with Mexico. The other is the one that connects the Pacific and Atlantic ports.

What to highlight. For every US$1M, around 82 jobs are generated (52 direct and 30 indirect).

FUNDESA, through the “Guatemala does not stop” initiative, maintains that around US$12,000M would be required to generate one million jobs.

Regional echoes. According to the IMF, a 1% of GDP increase in public investment in roads could reduce extreme poverty by 5%.

According to the World Economic Forum, poor road quality and low road connectivity places Guatemala in 132nd place out of 139 countries evaluated in the latest report of the Global Competitiveness Index.
The IMF updated the transit speed in 160 countries in 2022. Guatemala was among the bottom 20 with 53 kmh on the main routes. The world average is 70.
The standard number of meters of road network per inhabitant is three. The country has only one meter (Central America, two, with the exception of Costa Rica, which has eight meters).

You. In the port sector, the nation does not have a civil authority to establish the rules. This does exist in other countries. Port infrastructure is one of the elements that most affects the cost of imports and exports, possibilities of specialization and economic growth.

Some of the limitations that operators and users suffer are related to extraordinary expenses, loading capacity, waiting time and yard infrastructure, among others. Facts that produce both economic and competitive losses.
According to AmCham, user complaints are related to download times and import clearance times. There have been delays of four days and in high season, eight. The delays paid to shipping companies as a penalty for not returning containers on time are about US$150 per unit per day.
For the Institute of Economic Competitiveness, it is urgent to develop new investments, expansion of commercial docks and specialized bulk cargo terminals. If efficiency is doubled, the volume of foreign trade could increase by 32%.

The essential. The transportation of energy is a crucial aspect, that is, taking it from production centers to places of consumption.

Financing capital-intensive electricity generation projects requires large long-term investments. Reliable sources developing robust models are necessary to ensure viability.
The lack of efficient and safe infrastructure represents a challenge for companies not present in urban centers to expand operations. Investment must be made in generation, transmission and distribution, according to the Association of Generators with Renewable Energy.
Since 1996, Guatemala has had the General Electricity Law and since 2008 has had an Energy Policy. The country has more than 90% electricity coverage. The remaining 10% is concentrated in Huehuetenango, Quiché and most of Verapaces.
#Infrastructure #Guatemala #pending #tasks

You may also like

Leave a Comment