Introduction of the New Legislation
The President of the Mexican Construction Industry Chamber (CMIC), Luis Méndez, has been actively engaged in discussions with Banobras Director Jorge Mendoza regarding a new mixed investment law. This legislation aims to complement public infrastructure investments by attracting private sector participation.
Replacing the Public-Private Partnership Law
The proposed mixed investment law will replace the existing Public-Private Partnership (PPP) law. This change is crucial to initiate mixed investments in the road sector, including significant projects like:
- Córdoba-Orizaba highway (45 km)
- Cardel-La Tinaja road (86 km)
- Ramal Puerto de Veracruz (8 km)
- Nuevo Laredo international bridge (8 km)
Importance of the New Legislation
Méndez emphasized that creating a new law is strategic and essential to attract more private investments across various sectors. In the coming weeks, he plans to sign a collaboration agreement with Banobras and engage with legislators to advocate for this measure due to its anticipated benefits.
Infrastructure Investment Goals
Méndez explained that increasing public resources is vital. He expects a 0.2% rise in public investment as a percentage of GDP (from 2.3% to 2.5%) between 2025 and 2026, totaling approximately 80 billion pesos. The additional 1.5% private investment would bring the total to 4%, potentially generating nine pesos in private investment for every peso spent on infrastructure.
Ideally, Méndez aims for a gradual increase in infrastructure investment to 6% of GDP (4% public, 2% private) by 2030.
Expanding Public-Private Coinvestment
Méndez believes that public-private coinvestment should extend beyond infrastructure to logistics, transportation, hydrological systems, urban mobility, schools, and hospitals.
Railway Projects
Regarding passenger train development projects, Méndez mentioned that, currently, private sector involvement is comparable to the distances constructed by the Mexican Army Secretariat (México-Pachuca and México-Querétaro) and those under public tender (sub-routes of Querétaro-Irapuato and Saltillo-Nuevo Laredo).
When asked about not participating in previous tender announcements, which could have allowed more SMEs to join and benefit, Méndez clarified that CMIC advocates for both large and small businesses.
“We are implementing an internal program to enhance the maturity level of SMEs and micro-enterprises, enabling them to form consortiums and access large tenders requiring specialized skills and diverse cash flows,” he added.
Key Questions and Answers
- What is the purpose of the new mixed investment law? The new legislation aims to complement public infrastructure investments by attracting private sector participation.
- Which projects will benefit from this new law? Significant road sector projects, including the Córdoba-Orizaba highway, Cardel-La Tinaja road, Ramal Puerto de Veracruz, and Nuevo Laredo international bridge.
- What are Méndez’s goals for infrastructure investment? Méndez aims to increase public resources and gradually raise infrastructure investment to 6% of GDP by 2030.
- In which sectors does Méndez advocate for public-private coinvestment? Méndez believes in extending public-private coinvestment beyond infrastructure to logistics, transportation, hydrological systems, urban mobility, schools, and hospitals.
- What is CMIC’s stance on SME participation in large tenders? CMIC, under Méndez’s leadership, is committed to advocating for both large and small businesses, helping SMEs access large tenders requiring specialized skills and diverse cash flows.
