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Multi-dimensional Review of Uruguay

Volume 2. In-depth Analysis and Recommendations

image of Multi-dimensional Review of Uruguay

This series helps countries to identify and overcome binding constraints to achieving higher levels of well-being and more equitable and sustainable growth. The Development Pathways are based on Multi-dimensional Country Reviews, which take into account policy interactions and the country-specific policy environment through three phases. The first phase comprises an initial assessment of the constraints to development. The second phase involves an in-depth analysis of the main issues resulting in detailed policy recommendations. The third phase is designed to move from paper to action and to support government efforts in developing strategies and implementing policy recommendations.

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Transport infrastructure for development in Uruguay

OECD Development Centre

Uruguay has an infrastructure gap in the condition and management of its transport sector. In terms of planning, the country lacks a clear strategy, such as a National Transport Plan. Accordingly, project programming is difficult as there is no clear agreement on prioritisation. In terms of infrastructure delivery and operations, the country appears to be focusing on PPPs to close the gap. Due to prudential constraints, Uruguay needs first to adopt a holistic view on how its infrastructure sector should be planned and organised before considering private participation. Infrastructure projects developed as PPPs need to be aligned with a National Transport Plan. Also, the prioritisation and procurement decisions should be carried out by separate entities to avoid potential bias. Uruguay should enforce and strengthen the current regulations, avoiding off balance sheet PPP execution. Clearer regulations should be set for PPPs’ contract renegotiation. At present, PPPs should only be considered where there is a critical and clear present need.

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