Mexican Government Announces "National Program of Investment in Infrastructure and Communications"
On July 15, Mexico's president, Enrique Peña Nieto, announced the National Program of Investment in Infrastructure and Communications (the "Infrastructure Program"), which states that during the period of 2013 to 2018, the Mexican government will invest $320 billion in infrastructure projects, which will be focused on building new roads, railroads, ports, and airports and on improving the telecommunications industry in the country.
The Mexican president emphasized that this program is designed to turn Mexico into a real emerging economic leader for this century. The program was prepared according to the National Development Plan (Plan Nacional de Desarrollo 2013 – 2018), along with the commitments made by the president during his presidential campaign and the results obtained through extensive consultation with specialists in the field.
The Infrastructure Program will set in motion public and private investment in the country for an amount of up to $104 billion, from which $46.5 billion will be destined to improve the current transportation system and to develop new infrastructure projects. This investment will create efficient connections that will make transportation easier and more profitable, leading to considerable improvements in ports and railroads.
The execution of the program will result in dynamic, secure, and comfortable airports that will offer better service to national and international passengers, improving the cost and frequency of air transportation and helping to resolve Mexico City International Airport's overcapacity issues by promoting regional connections.
As stated by the Mexican president, "High quality in infrastructure is fundamental to achieve a modern and developed country and is the key to accelerate the economic activity and social development in Mexico."
Objectives of the Program
Roads
- Achieve a complete, well-maintained, and safe road network that connects the strategic regions of the country, reducing costs and time of transportation.
- Complete with high standards the three main corridors in Mexico (Mexico–Nogales, Mexico–Nuevo Laredo, and Mexico–Altiplano).
- Bring remote communities closer to strategic regions by the construction and renewal of country roads.
- Support public transportation renewal (main source of passenger and cargo transportation), through tax stimulus and credit-granting schemes, in order to modernize the public transportation fleet.
Railroad Transportation
- Reduce transportation costs, improving safety and travel time.
- Build strategic railroads that increase the efficiency of cargo trains.
- Reorganize railroad passenger transportation to improve the population's quality of life.
Ports
- Maintain four world-class ports and increase the ports' capacity to support the strategic economic industries of the country.
- Promote the development of a merchant navy.
Airports
- Solve the problem of overcapacity and operative saturation in the Mexico City International Airport.
- Improve passenger service and flight frequency.
- Promote regional connections.
Telecom
- Expand the coverage and capability of the networks, increasing public access to broadband services.
- Encourage competition, reducing costs and improving access to telecom services.
- Contribute to the proper implementation of the Constitutional Amendment in Telecommunications matter.
The Investment
- Transportation Infrastructure: $46.5 billion
- Telecom: $56 billion
- Total: $102.4 billion
Strategic Projects
| Governmental Commitments | Other Projects | |||
| Roads and Highways |
|
76 | 73 |
|
| Passenger Train and Massive Transportation |
|
10 | ||
| Cargo Train |
|
4 | 5 | |
| Ports |
|
7 | 14 |
|
| Airports |
|
7 | 14 |
|
| Telecom |
|
1 | 5 |
|
| 105 + 111 = 116 Projects | ||||
| Projects | Number of Projects | Km | Amount(Million US)* |
| Highways | 34 | 1,792 | 8,106 |
| Roads | 49 | 2,734 | 3,645 |
| Freeways | 33 | 884 | 4,028 |
| Junction and bridges | 22 | N/A | 926 |
| Rural roads commitments | 9 | 655 | 338 |
| Road maintenance program | 1 | 40,710 | 8,240 |
| Rural roads program | 1 | 12,600 | 5,616 |
| Road infrastructure | 149 | 5,410 | 30,900 |
| Passenger trains | 3 | 567 | 3,932 |
| Massive transportation | 6 | 95 | 1,690 |
| Bus terminals | 1 | N/A | N/A |
| Cargo railroads | 8 | 322 | 1,253 |
| Railroad signs | 1 | N/A | 160 |
| Massive transportation and railroads | 19 | 956 | 7,847 |
| New ports | 3 | N/A | 2,381 |
| Improvements | 5 | N/A | 1,200 |
| Specialized terminals | 12 | N/A | 1,409 |
| Reduce rates | 1 | N/A | N/A |
| Ports | 21 | N/A | 4,990 |
| Improvements | 19 | N/A | 1,812 |
| Strengthen connectivity | 1 | N/A | N/A |
| Conclude airport construction | 1 | N/A | 16 |
| Airports | 21 | N/A | 2,803 |
| TOTAL | 210 | N/A | 46,542 |
Lawyer Contact
For further information, please contact your principal Firm representative or the lawyer listed below. General email messages may be sent using our "Contact Us" form, which can be found at www.jonesday.com.
Alberto de la Parra
Mexico City
+52.553.000.4087
adelaparra@jonesday.com
Arturo de la Parra, an associate in the Mexico City Office, assisted in the preparation of this Commentary.
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