, October 12, 2025
News Summary
Major regional investments are advancing across Latin America and the Atlantic: the Development Bank of Latin America and the Caribbean (CAF) approved a US$96 million loan for Cabo de Santo Agostinho to fund sanitation, drainage, roads, social infrastructure and a new Women’s Hospital benefiting over 200,000 residents. In Los Cabos, rapid population growth is prompting airport expansion, new roads and desalination projects to address water and housing pressures. Cape Verde unveiled a national 5G strategy to boost connectivity, smart tourism and digital services. Together these initiatives aim to strengthen resilience, public services and long-term economic growth.
Three infrastructure moves reshape regional planning: US$96 million loan for a Brazilian city, major upgrades and strains in Los Cabos, and a national 5G push in Cape Verde
US$96 million loan approved for Cabo de Santo Agostinho, Brazil; Los Cabos faces rapid growth with big airport, road and desalination projects underway; Cape Verde launches a national plan to roll out 5G and boost digital services.
Top line: CAF backs urban upgrade in Pernambuco
On October 10, 2025, the board of a regional development bank approved a US$96 million loan for the municipality of Cabo de Santo Agostinho in the state of Pernambuco, Brazil. The amount is part of a larger US$120 million operation intended to support an Infrastructure and Urban Development Program for the city. The program is expected to directly benefit more than 200,000 residents and focuses on sanitation, drainage, mobility, social infrastructure, tourism adaptation and climate resilience.
Planned works include urban drainage systems, paving and road redevelopment, bicycle lanes, containment of risk areas, environmental recovery, and upgrades to public recreation, culture, health and education facilities. A central element of the program is construction of a dedicated women’s hospital to expand access to specialized care and address gender equity in health services. The operation also targets improvements in solid waste management and measures to strengthen sustainable tourism along the coastal strip.
Los Cabos: growth, pressure and big projects
Los Cabos has grown rapidly over recent decades. From about 44,000 residents in 1990, the municipality exceeded 350,000 by 2020. Current growth models project the population could nearly double again by 2035, reaching 600,000–650,000 if current trends continue. The area now makes up roughly 44% of the state’s population and is expected to account for half by 2035.
Airport expansion and passenger surge
The international airport has seen a sharp rise in traffic, with more than 7.5 million passengers using two terminals in 2024 — a roughly 40% increase from 2021. A master development by the airport group will invest widely across airports it runs; for Los Cabos the work represents about 7 billion pesos (approximately US$370 million). Plans call for consolidating to one terminal by 2029 by expanding Terminal 2 to handle both international and domestic flights. Changes include three new gates, nearly 20 new self-service kiosks, a 33% increase in baggage area and about a dozen new immigration checkpoints. The terminal is expected to be about 40% larger when finished.
Roads, traffic and the Interurban Axis
Road upgrades are meant to keep up with growing passenger and resident numbers but are also causing short-term disruption. A major roundabout and underpass project at a key junction handles over 60,000 vehicles daily and was reported as about 25% complete in late August 2025, with hoped-for completion by summer 2026. A planned third arterial route — the Eje Interurbano — would link El Tezal to near the airport toll booth over about 20.3 kilometers and is intended to take some traffic off older routes. The Interurban Axis has a projected budget of 5 billion pesos; land agreements were reached in August 2025, but federal approval and funding are still needed and construction has not yet begun.
Water deficit and desalination plans
Water supply is a pressing concern. The municipality currently runs at an estimated deficit of about 600 liters per second. Two desalination plants — the first built in 2006 and the second under construction — combined are projected to produce around 650 liters per second. The second plant, a public-private partnership involving local and international firms, had reached roughly 41% completion after earlier slowdowns and targets an October 2026 finish. Investment reported so far totals about 1.145 billion pesos. Even with this added capacity, further population growth could outpace supply and leave communities vulnerable. Local protests over water shortages have occurred in multiple neighborhoods, and national leaders have been involved in efforts to expedite plant work.
Housing, tourism and socioeconomics
Demand for housing far outstrips supply. High-end coastal developments and luxury resorts continue to claim prime land, while affordable housing and rentals remain scarce. Large resort projects and branded residences are planned or underway in the East Cape and other areas, pushing land prices higher and raising concerns about environmental impacts and access for long-time residents. Plans to manage growth date back to a 1999 plan and a 2013 update focused on sustainable growth through 2040; a third edition with public participation is expected soon.
Cape Verde moves to adopt 5G as a national platform
Cape Verde has launched a national strategy to bring 5G technology into the country as part of a broader digital project financed by an international lender. The plan aims to make the islands a regional hub for telecoms, innovation and entrepreneurship by 2030. Targets include raising internet penetration to 90% by 2026, improving connection quality and speed, and expanding digital services for health, education, tourism and agriculture. The strategy emphasizes collaboration among regulators, operators, companies, academia, international partners and the diaspora and is grounded in feasibility studies that frame 5G as critical infrastructure for the coming decade.
Overall view
Across these stories the common theme is fast change and the gap between long-term benefit and short-term strain. New funding and big projects promise better services and economic gains, but they come with construction impacts, planning risks and urgent social needs — especially water and housing in rapidly growing coastal destinations.
Frequently Asked Questions
What will the US$96 million loan for Cabo de Santo Agostinho fund?
The loan will support an infrastructure and urban development program covering sanitation, drainage, mobility, social facilities, sustainable tourism adaptation, environmental recovery and a new women’s hospital, among other works.
How many people will benefit from the Brazilian program?
The program is designed to directly benefit the city’s more than 200,000 inhabitants through improved services and public facilities.
Why is Los Cabos expanding its airport and roads?
Passenger traffic has grown strongly and the airport and road upgrades aim to handle higher volume, new routes and the projected rise in residents and visitors while reducing congestion.
Will the desalination plants solve Los Cabos’ water problems?
The planned desalination capacity should cover the current shortfall of about 600 liters per second, but rapid population growth could create new gaps. Further investment and careful water management will be needed.
What are Cape Verde’s goals with 5G?
The strategy aims to raise internet access, improve speed and quality, enable digital services across sectors, and position the country as a regional digital hub by 2030, with wider economic effects expected by 2036.
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Key project features at a glance
Project / Location | Funding / Cost | Primary elements | Timeline / Status | Main beneficiaries |
---|---|---|---|---|
Cabo de Santo Agostinho (Brazil) | US$96 million (part of US$120M operation) | Sanitation, drainage, mobility, women’s hospital, tourism adaptation, parks | Approved Oct 10, 2025; program rollout to follow | ~200,000 residents, visitors, local services |
Los Cabos (Mexico) — Airport | ~7 billion pesos (airport share) | Terminal consolidation, new gates, kiosks, expanded baggage & immigration | Expansion phased; Terminal 2 to absorb Terminal 1 by 2029 | Passengers, airlines, tourism sector |
Los Cabos — Roads & Interurban Axis | Interurban Axis: ~5 billion pesos | New 20.3 km arterial route, roundabout/underpass upgrades | Land agreements reached Aug 2025; construction pending federal approval | Local commuters, freight, tourists |
Los Cabos — Desalination | ~1.145 billion pesos invested so far in Plant 2 | Second desalination plant (public-private partnership) | ~41% complete; target completion Oct 2026 | Households, hotels, businesses |
Cape Verde — National 5G Strategy | Funded under a World Bank-backed digital project | 5G rollout, digital services for health, education, agriculture, tourism | Strategy launched; targets include 90% internet penetration by 2026 | Nationwide population, businesses, regional partners |
Deeper Dive: News & Info About This Topic
Additional Resources
- Mexico News Daily: What Will Los Cabos Look Like in 10 Years?
- Wikipedia: Los Cabos
- Mexico News Daily: Local major infrastructure projects reflect growing pains in Los Cabos
- Google Search: Los Cabos infrastructure projects
- TechAfricaNews: Cabo Verde launches national 5G strategy
- Google Scholar: Cape Verde 5G strategy
- Dry Cargo Magazine: Laying the groundwork for infrastructure investment in Cabo Verde
- Encyclopedia Britannica: Cape Verde
- Vallarta Daily: Los Cabos water shortage — San Lázaro plant
- Google News: Los Cabos desalination San Lázaro plant

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