Surprising as the Bolivarian Games are sort of a fourth tier games any fourth rate city can host.
Bust as you said, maybe is the cost and difficulty of traveling in the American Continent in general, which is even geographically impossible to do so by road.
Now talking about the roads I can attest that the ones in Chile and Uruguay were in better shape than those of Mexico 8 years ago, and same can be said of the streets in Buenos Aires compared to almost every city in country.
As for Peru, outside the nice parts in Lima (which is easily the place with the worst transit in Latin America), the rest of the roads were indeed crappy.