The Federal Government will present an infrastructure plan jointly with the private sector

At the press conference held on September 7, the President of Mexico, Andrés Manuel López Obrador, stated that the Infrastructure Plan, in which the Federal Government and the private sector are involved, will be presented before September 15 at its usual morning conference.

It is important to mention that in November 2019, the President of Mexico presented the National Infrastructure Agreement, which sets forth an alliance between the public and private sectors that foresees an investment of 859 billion pesos, so the presentation of the Infrastructure Plan in the next few days will consider all the works planned for the country.

The objective of the Infrastructure Plan is for the government to facilitate and accelerate the implementation of projects that contribute to the growth and development of the country, in order to achieve an annual investment in infrastructure equivalent to 5% of the Gross Domestic Product (GDP).

On August 27, 2020, the Ministry of Finance and Public Credit issued a document identified as “Infrastructure Projects financed by private capital” which contains those projects in which the private sector intends to invest and execute in order to promote the economic development of the country. Based on said document, the Federal Government will select the projects that will make up the Infrastructure Project based on the following criteria: (i) projects whose private participation is greater than 50% of the project’s cost; (ii) the projects must belong to the energy, road, railroad, airport, passenger transportation, communications, tourism, environment, potable water and sanitation sectors; and (iii) have a defined scope, cost and time and the mechanism under which the private initiative will participate in the project.

The document considers a total of 227 projects, of which only 7 are in execution, 10 are authorized, 20 in initial evaluation and 22 in final evaluation. The remaining 168 projects are in a contingent stage, that is, they are visualized opportunities.

Among the projects considered in the document called “Infrastructure Projects financed by private capital”, the following stand out:

1. In execution stage: Autopista Urbana Siervo de la Nación, Estado de México; viaducto Santa Catarina, Nuevo León; highway Mitla-Tehuantepec II; among others.

2. Authorized: Modernization of the Tulum-Cancun highway, Quintana Roo; expansion of the Tuxtla Gutierrez-San Cristobal highway; Tepic Villa Union highway; construction of the Ciudad Juarez highway bypass; construction of the Real del Monte-Entronque Huasca highway; among others.

3. With definitive evaluation: Construction of the Topolobampo port terminal; construction of the Cozumel cruise ship dock; construction of the Tepic-Compostela highway; construction of the Riviera Maya international airport; among others.

4. With initial evaluation: Salamanca-León highway; XXI century highway; Obregón highway bypass; Atizapán-Atlacomulco highway; Silao-San Miguel de Allende highway; construction of the Mexico-Querétaro train; among others.

5. In a contingent stage: construction of the Querétaro-Irapuato train; construction of a hotel tower and a tourism university in Guerrero; natural gas transport pipeline in Chiapas; Jáltipan-Salina Cruz gas pipeline; Baja California coastal train; construction of the second floor of the indios verdes tolls to the Mexico-Pachuca highway tolls; modernization of the Guadalajara airport; among others.

Finally, it is worth mentioning that the most favored sector with the projects included in the aforementioned document is the communications and transportation sector, since 87 of the 227 considered projects are roads.

In case you have any doubt or require advice in relation to the above mentioned, please do not hesitate to contact any of our partners or associates.

Yours sincerely,

Cannizzo, Ortiz y Asociados, S.C.