The Infrastructure Paradox: Latin America’s Arbitration Boom vs. The Expert Shortage

Latin America is currently experiencing a profound metamorphosis in its infrastructure landscape. Driven by a surge in capital from multilateral development banks (MDBs) and a persistent, long-term regional infrastructure gap, the continent has cemented its position as one of the world’s most dynamic hubs for international construction arbitration. Yet, as the financial pipeline for regional development swells toward a projected US$500 billion over the next decade, a silent, structural crisis is brewing beneath the surface: a critical shortage of locally based, internationally recognized construction experts.

While the region is successfully importing capital, it is struggling to export expertise. As the demand for sophisticated delay and quantum assessment grows, the scarcity of professionals capable of navigating the complex architecture of FIDIC-governed contracts threatens to create a bottleneck in the resolution of the very projects intended to drive the region’s economic growth.

The Financial Surge: A Catalyst for Legal Activity

The current infrastructure boom is not merely a product of local market forces; it is being aggressively bankrolled by a coalition of global and regional financial institutions. In 2025 alone, the Inter-American Development Bank (IDB) Group posted a record-shattering US$35 billion in financing. This is not a temporary spike but a strategic commitment, with the IDB forecasting its financing capacity to reach an unprecedented US$500 billion over the next ten years.

This influx of capital is bolstered by parallel commitments from the World Bank, the Development Bank of Latin America and the Caribbean (CAF), and the Central American Bank for Economic Integration (CABEI). These institutions, which typically mandate the use of FIDIC (International Federation of Consulting Engineers) contract forms for their projects, have effectively institutionalized a standard, highly sophisticated dispute resolution framework across the continent.

Chronology of a Regional Arbitration Hub

The escalation in legal activity has been swift and measurable:

  • 2020–2022: As the post-pandemic recovery took hold, regional construction projects began hitting significant milestones, leading to a surge in contractual disputes related to supply chain disruptions and inflationary pressures on materials.
  • 2023: Data from the ICC Dispute Resolution Statistics confirmed that Latin America had solidified its status as a global powerhouse. The region ranked second worldwide by both party origin and chosen seat, and third by law applicable to the merits.
  • 2024: Industry analysts observed that construction, infrastructure, and transportation projects accounted for nearly a quarter (24%) of all publicly reported international arbitrations in the Americas, signaling that large-scale infrastructure disputes had become the "new normal" for regional legal practice.
  • 2025–2026: The current period marks a transition from reactive dispute resolution to a realization that the existing pool of qualified adjudicators and experts is insufficient to meet the volume of upcoming mega-projects.

Supporting Data: The Recognition Gap

Despite the region’s growing dominance in arbitration volume, the visibility of its local experts remains disproportionately low. The "thin roster" problem is corroborated by several industry benchmarks:

  1. Lexology Index Deficit: Out of more than 600 construction consulting experts recognized globally, fewer than 20 are based in Latin America. This represents a significant disconnect between the volume of disputes being heard in the region and the origin of the experts being appointed to resolve them.
  2. FIDIC Adjudicator Shortage: FIDIC’s certified list of adjudicators—the essential professionals required to sit on Dispute Boards—includes over one hundred entries globally. A review of this roster reveals that only two are currently based in Latin America.
  3. Specialization Hurdles: The crisis is not one of general engineering or legal talent, but of "niche" expertise. The region possesses high-level civil engineers and litigators, but there is a profound lack of professionals specializing in the specific intersections of FIDIC contract administration, forensic delay analysis, and quantum assessment—the three pillars of construction dispute resolution.

Implications for MDB-Financed Projects

The scarcity of experts is not an abstract issue; it has tangible consequences for the cost and timeline of infrastructure projects. MDB-financed contracts are rigid in their dispute resolution architecture. They typically mandate a standing Dispute Board (DB) that must be active throughout the life of the project.

These Boards are expected to be the first line of defense against litigation, requiring members who possess the technical credibility to adjudicate complex claims in real-time. When local expertise is unavailable, parties are forced to import experts from Europe, North America, or Asia. This adds immense logistical costs, cultural friction, and significant delays to the dispute resolution process.

Furthermore, the "expert-making" timeline is unforgiving. A practitioner capable of defending a complex delay opinion under aggressive cross-examination or serving on a high-stakes Dispute Board is not created through short-term training. Typically, such professionals require decades of experience: years of hands-on technical management, followed by years of immersion in the claims and arbitration process. The region currently faces a "lost decade" of professional development that it must scramble to address.

Building a Market That Runs in Both Directions

There is a growing consensus that the infrastructure for recognition already exists; it simply requires greater adoption. FIDIC’s certification programs, which cover everything from contract management to adjudicator training, are designed to be portable. A credential earned in Mexico or Colombia carries the same weight as one earned in London or Geneva.

Recent trends suggest that the market is beginning to respond. For instance, in June 2026, a prominent Mexico-based construction firm successfully secured its second FIDIC Certified Trainer credential. By July 2026, those same professionals were being tapped to serve as arbitrators across the region. This indicates that the talent exists, but the "certification-to-appointment" pipeline remains too narrow.

To build a truly sustainable market, the region must focus on three strategic pillars:

  1. Institutionalized Mentorship: Large regional firms must incentivize senior practitioners to mentor mid-level engineers and lawyers specifically in the methodology of international arbitration and FIDIC dispute resolution.
  2. Harmonized Certification: Regional arbitral institutions, such as those in São Paulo, Bogota, and Mexico City, should actively encourage and subsidize their members’ participation in international certification programs like those offered by FIDIC and the CIArb.
  3. Proactive Dispute Management: Owners and contractors should be encouraged to include "local-preference" clauses in tender documents for dispute resolution personnel, provided those individuals hold internationally recognized certifications, thereby creating a built-in incentive for professional growth.

Conclusion: The Urgency of Now

The infrastructure projects currently in the development phase will define the economic trajectory of Latin America for the next half-century. However, they will also inevitably generate the next wave of disputes. If the region continues to rely on external talent to resolve its internal contractual challenges, it will lose both the opportunity to build local capacity and the economic efficiency required for sustainable development.

The transition from a region that simply "hosts" arbitration to one that "provides" the experts to manage it is a necessity, not an aspiration. By bridging the gap between local talent and international recognition, Latin America can ensure that its infrastructure boom is supported by a robust, home-grown legal and technical framework. The time for the next generation of Latin American experts to step into the global spotlight is now—before the next wave of multi-billion dollar disputes reaches the tribunal table.


Disclaimer: The content of this article may not reflect the official views of the International Chamber of Commerce. The opinions expressed are solely those of the authors and other contributors.