Background on the Project and Its Significance
The Secretaría de Infraestructura, Comunicaciones y Transportes (SICT) in Mexico has temporarily halted the first mixed investment project of the current administration. This project, valued at 5,000 million pesos, aimed to modernize, maintain, and operate the Córdoba-Orizaba-Ciudad Mendoza highway, a 45.3 km stretch in Veracruz.
This highway is currently under the management of SICT, leased to the Fondo Nacional de Infraestructura (Fonadin), and operated by Caminos y Puentes Federales de Ingresos y Servicios Conexos (Capufe). The project was classified as a Public-Private Partnership (APP) Mixto, and all related information was made public on the CompraMX platform.
The M-MRO Concept
Under the current Public-Private Partnership Law (LAPP), Cal y Mayor y Asociados submitted an unsolicited proposal to Banobras in March. The proposal, after thorough analysis and acceptance, set the stage for launching the final bidding process. However, this process has now been canceled.
The winning company or consortium would have recovered their investment through toll collection over a 10-year contract. The proposal included an innovative component compared to previous projects, focusing on performance standards for construction, maintenance-rehabilitation-operation (C-MRO), and maintenance-rehabilitation-operation (MRO).
Impact of the Suspension
The suspension came in response to the urgent need to address damages caused by extraordinary rains and flooding in Veracruz on October 9th and 10th. The federal government deemed it necessary to prioritize immediate relief efforts and allocate human, material, and financial resources for the reconstruction and recovery of roads and other affected areas in Veracruz.
Mixed Investment Projects Overview
SICT views mixed investment schemes as a strategic tool to drive the modernization of Mexico’s road infrastructure. Among the 21 projects planned with this approach are:
- Sonoyta-Puerto Peñasco, in Sonora
- Tijuana-Ensenada Bypass, in Baja California
- Las Varas-Platanitos, in Nayarit
- Corredor de Tamaulipas, in Tamaulipas
- Puente Internacional Nuevo Laredo 4/5, in Tamaulipas
- Tulancingo-Nuevo Necaxa, in Hidalgo and Puebla
- Conexión Libramiento de Reynosa, in Tamaulipas and Nuevo León
- Lázaro Cárdenas-Nueva Italia, in Michoacán
- Cardel-La Tinaja and Ramal al Puerto de Veracruz, in Veracruz
- La Pitahaya-Libramiento Noreste de Querétaro, in Guanajuato and Querétaro
Key Questions and Answers
- What was the project that SICT suspended? The first mixed investment project of the current administration, valued at 5,000 million pesos, aimed to modernize, maintain, and operate the Córdoba-Orizaba-Ciudad Mendoza highway in Veracruz.
- Why was the project suspended? The suspension was due to the urgent need to address damages caused by extraordinary rains and flooding in Veracruz on October 9th and 10th, requiring immediate relief efforts and resource allocation for reconstruction.
- What is the M-MRO concept? The M-MRO (Modernization, Maintenance-Rehabilitation-Operation) concept is an innovative approach where the winning company or consortium recovers its investment through toll collection over a 10-year contract, focusing on performance standards for construction, maintenance, and operation.
- What other mixed investment projects does SICT plan? SICT plans 21 mixed investment projects, including Sonoyta-Puerto Peñasco in Sonora, Tijuana-Ensenada Bypass in Baja California, Las Varas-Platanitos in Nayarit, Corredor de Tamaulipas in Tamaulipas, Puente Internacional Nuevo Laredo 4/5 in Tamaulipas, Tulancingo-Nuevo Necaxa in Hidalgo and Puebla, Conexión Libramiento de Reynosa in Tamaulipas and Nuevo León, Lázaro Cárdenas-Nueva Italia in Michoacán, Cardel-La Tinaja and Ramal al Puerto de Veracruz in Veracruz, and La Pitahaya-Libramiento Noreste de Querétaro in Guanajuato and Querétaro.