In compliance with the mandate conferred at the First Meeting of South American Presidents held in Brasilia on August 31 and September 1st, 2000, the Ministers of Transport, Energy and Telecommunications of the twelve countries prepared an Action Plan for the Integration of Regional Infrastructure in South America, with a prevalence of the EID approach, supplemented by actions within the Sectoral Integration Processes (PSIs - Procesos Sectoriales de Integración), to improve competitiveness and promote the region’s sustainable growth.

On the basis of the Guiding Principles and with the purpose of building a shared vision among the countries, IIRSA was created to foster South American economic development with social equity. Since its creation, the activities undertaken have focused on identifying the physical, regulatory and institutional requirements for planning and implementing basic infrastructure to attain South American integration, for which purpose three distinct fields were taken into account: coordinating plans and investments; ensuring the compatibility and harmonization of related regulatory and institutional aspects; and creating innovative public and private funding mechanisms.

Under this context, nine basic lines of action were defined:

1. To design a more comprehensive vision of infrastructure

In line with the Guiding Principles, the vision of infrastructure for integration purposes focuses on the synergetic development of transport, energy and communications. Furthermore, it also considers the interrelation with the social infrastructure, the environmental aspects, and knowledge-based information technologies. This vision should be consistent with the actual funding and investment possibilities.

2. To frame projects within a strategic planning based on the identification of regional EIDs

Thus, an attempt is made to achieve greater efficiency in investments, by coordinating work plans to be carried out in the different countries and framing them within a strategic vision of integration, which prioritizes actions in large regional EIDs.

3. To streamline and update the national regulatory and institutional systems that regulate the use of infrastructure

Greater emphasis is placed on the regulatory and institutional aspects, which very frequently do not allow a proper use of existing infrastructure, particularly at the border crossings, in multimodal transport systems and in air transportation. Attempts are also made to harmonize rules and regulations to contribute to the development of new investments and the optimization of the use of existing ones. Furthermore, the aim is to further modernize public agencies, their procedures, technologies and human resources, taking into account the promotion and protection of competition, the regulation based on technical and economic criteria, and the preparation and availability of relevant information.

4. To harmonize policies, plans and regulatory and institutional frameworks among the States

With the aim of achieving regional integration objectives, progress should be made in harmonizing criteria for the design and comprehensive technical, economic and environmental evaluation of regional infrastructure projects so as to ensure their sustainability and minimize the risks of arbitrary decisions in their selection and support. Mechanisms must be created to reinforce the synergetic effects of those integration projects which are complementary and to ensure that alternative projects are validated according to their own merits.

5. To appraise the environmental and social dimension of projects

A proactive approach is adopted when considering the environmental and social implications of infrastructure projects, establishing germane criteria and common standards, and coordinating actions. By deepening the already rich experience of our countries in the design of national and regional infrastructure projects, the environment is considered from the very beginning of the works, deeming this as an opportunity for the comprehensive use and enrichment of projects and not only as a possibility of mitigating their undesired impacts

6. To improve the quality of life and opportunities of local populations in the regional integration hubs

The aim is to ensure that infrastructure works generate the greatest amount possible of local development impacts, so that they do not become mere corridors between the main markets.

7. To incorporate participation and consultation mechanisms

In order to define and select projects, mechanisms are sought to ensure an effective participation and active contribution of stakeholder communities and the private sector interested in the funding, building and operation of such projects.

8. To develop new regional mechanisms for project programming, execution and management

Based on the Presidential Mandate in Brasilia to the Inter-American Development Bank (IDB), to the Andean Development Corporation (CAF - Corporación Andina de Fomento) and to the Financial Fund for the Development of the River Plate Basin (FONPLATA - Fondo Financiero para el Desarrollo de la Cuenca del Plata), as well as on the experiences of the past decade, mechanisms are created for the sharedmanagement and funding of physical integration projects.

9. To structure financial schemes adapted to the specific risks of each project

This effort includes the search for innovative solutions between Governments and the multilateral financial agencies to foster the inflow of private capital, through common strategies and creative solutions and instruments. These innovative solutions should be designed so as to consider the characteristics and preferences of capital markets and the funding of projects that entail business opportunities, as well as to provide an appropriate distribution of risks and benefits between the public and private sectors involved.