Introduction
Mexico’s federal government has unveiled a new mixed investment plan for infrastructure development, projecting a total of 5.6 trillion pesos by 2030. This ambitious plan includes 1.6 trillion pesos (1.9% of the GDP) for this year, with 900 billion pesos already allocated for improvements in energy, transportation, roads, ports, healthcare, water, and education. The remaining 722 billion pesos will be sourced from both public and private sectors.
Understanding Mixed Investments
Claudia Sheinbaum Pardo, the president, clarified that mixed investments imply a collaboration between public and private sectors. This approach differs significantly from the previous Public-Private Partnerships (PPPs), which were often criticized for excessively relying on public resources.
Strategic Sectors and Planning
The investment will be channeled into eight strategic sectors: energy, transportation, roads, ports, healthcare, water, education, and airports. Edgar Abraham Amador Zamora, the Secretary of Finance and Public Credit (SHCP), mentioned that over 1,500 projects were individually analyzed across various governmental departments to arrive at this investment figure.
A Strategic Investment Planning Council, led by the President of Mexico and involving all relevant entities and departments, will prioritize projects and ensure timely attention to each project’s progress, both physically and financially.
Public Investment as a Development Catalyst
Amador Zamora emphasized that public investment is central to the strategy, acting as a catalyst for development. He stressed that economic growth should be complemented with income distribution and social well-being, rather than focusing solely on macroeconomic variables.
Transparency and Data Accessibility
A National Database will be established, allowing citizens to track the progress of each infrastructure project and providing planning elements for future projects. This database will also offer metrics to monitor the evolution of these projects, ensuring transparency and accessibility for investors and the general public.
Investment Models and Financing
Jorge Mendoza Sánchez, the Director of Banco Nacional de Obras y Servicios Públicos (Banobras), highlighted that mixed investments have been discussed and implemented in the previous administration, particularly in road construction, airports, and energy (acquisition of 13 plants from Iberdrola).
The aim is to share benefits, costs, and risks between the public and private sectors, ensuring that investments are complementary to the federal government’s strategy while safeguarding public finances.
Pillars of the New Plan
- Strategic Investment Planning Council: Directly coordinated by the President of Mexico, this council will prioritize projects and ensure timely follow-up.
- New Investment Vehicles: Specialized infrastructure schemes will be formulated, focusing on transparency and cost efficiency.
- Normative Update: The legal framework will be harmonized, and the mixed contract model will be incorporated into legislation.
- National Database: It will provide planning elements for new projects and offer metrics and indicators for investors and the public.
New Mixed Investment Law Proposal
The federal government’s infrastructure investment plan will be accompanied by a new law to harmonize the existing legal framework, incorporating the mixed contract model. This law will eventually consider unsolicited proposal tools (private-sector suggested projects) and provide a long-term vision for the country.
Uncertain Future of Legislative Initiatives
Two legislative initiatives from Morena party lawmakers, focusing on infrastructure development with a social well-being emphasis, remain uncertain. These initiatives aimed to establish a new legal framework for mixed investments through public-private collaboration, involving various stakeholders in the development process.
