Mexico’s Government Announces $44 Billion National Infrastructure Investment Plan
On November 26, 2019, President Andrés Manuel López Obrador unveiled Mexico's first ambitious infrastructure plan, backed by key players in the private sector. The government of Mexico announced a National Infrastructure Investment Plan to help boost the economy in the next four years with an initial package of 147 projects. The main sectors covered by the plan are:
- tourism (15 projects totaling $12 billion)
- transportation (101 projects totaling another $12 billion)
- telecommunications (four projects with a cost of $5.9 billion)
The government teamed up with major guilds of Mexico's private sector and devised an investment mechanism to optimize the identification, design, financing and bidding processes for these projects, which are spread nationwide. The mechanism will be triggered by the private sector that will propose pre-screened projects to the government following feasibility, cost-benefit and financing analyses. The president's office will green light the projects that meet the plan's criteria and, subsequently, the competent government ministries and agencies will launch bidding processes. The mechanism will seek to add new projects to the initial package, particularly in the power generation, water desalination and urban transportation sectors.
Holland & Knight attorneys will continue to monitor updates on Mexico's National Infrastructure Investment Plan as additional information becomes available.