José Moya
Sacromonte Ganuc de México
View from the Top

Disruption and Flexibility for Sustainable Projects

Fri, 02/01/2019 - 14:04

Q: What impact does Sacromonte Ganuc want to have in Mexico?

A: We want to help Mexico become more sustainable. To do that, Sacromonte Ganuc offers consultancy services that support the entrance of companies into Mexico to develop green and sustainable infrastructure projects. Green financing is a strong tool that is in use around the world, and we believe it can be used to introduce these kinds of projects in Mexico.
Q: How is the company fostering the development of sustainable infrastructure projects in Mexico?

A: We foster sustainable projects by serving as a shelter and consultancy for international players, small or large, that have activities in some part of the energy value chain and are looking to enter Mexico. Our objective in that sense is to help these companies to find an attractive market in Mexico. Doing so is no easy task, but we developed a clear understanding of the Energy Reform and the opportunities it opened. We also have strong expertise in due diligence, making us the perfect partner capable of lining up their processes and, if need be, tropicalize them so they adhere to Mexican regulation.
Q: Why should foreign companies choose your services over those of major consultancies?

A: Big consultancies can help big international companies make their entry into a new market like Mexico’s, but it is hard for them to adapt their business models to the concepts of sustainability and disruption, as well as to the Mexican culture and way of doing things. As a matter of fact, we met with one of those consultancies to evaluate a project, which was focused on sustainable development goals, and to decide whether the project was a viable business opportunity in Mexico. The conclusion of this firm, which is one of the Big Four, was that there was no viable way to make this project work. However, we did see an opportunity. In Mexico, we need to be more disruptive and flexible in terms of how to work sustainable projects, but traditional consultancy is rigid and structured, meaning that it is hard for such companies to adapt to the new business models needed in the new energy market. Sacromonte Ganuc offers disruption and flexibility as a core value for the benefit of the companies that want to enter the Mexican market.
Q: What challenges are foreign companies finding when venturing into Mexico? A: Dealing with the government is complicated for them. That is where most of the obstacles arise when providing our shelter services. One challenge in that area is that sometimes public officials want to work for their personal benefit, therefore hindering the development of a project if it does not follow that pattern.
The fact that regulation is evolving and changing also makes it hard for companies to follow up on all the requirements. Here is an example: We were contacted by a UK company in 2006 to help it manage what would have been the first contract for distributed generation in Mexico. The talks were going in the right direction but as the Mexican Congress could not reach an agreement on the way it would process distributed generation permits at that time, the project had to be stopped. We are happy to see more consistency and more opportunity for the development of these kinds of projects now that the Energy Reform is maturing. Companies are constantly calling us to inquire about the country and to define the right time to enter.
Q: Is Mexican human capital up to the challenges arising from the projects coming to Mexico? A: We are lagging behind the requirements of the industry. When the Energy Reform was implemented, study programs did not change accordingly to prepare college students for the future labor market. Although we as a country let this opportunity pass, it is encouraging to see educational institutions stepping up to the challenge and undertaking talks with foreign universities and companies to offer their students the best opportunities. It is all about creating the right synergies among these parties to create a better opportunity for the country.