Government to Invest US$24.4 Billion in Energy, Water

The Mexican government plans to allocate approximately US$24.4 billion to enhance the country’s energy and water infrastructure, a move aimed at propelling Mexico into the Top 10 global economies, according to a document accessed by Milenio. President Claudia Sheinbaum is expected to unveil this initiative, part of her broader "Plan México," in January.

A significant portion of this investment, about US$23.4 billion, is earmarked for the energy sector, focusing on the generation, transmission, and distribution of electricity nationwide. Of this, US$13.6 billion will be directed toward the construction of new power plants. However, details of whether these plants will be exclusively managed by the state-owned CFE or through public-private partnerships remain unspecified.

President Sheinbaum’s administration aims for 45% of the country’s energy generation capacity to come from renewable sources. This target reflects ongoing pressure from the national industry for a sustainable energy policy. "It is fundamental to have an efficient energy policy that guarantees the security of electricity generation, transmission, and distribution, and the availability of hydrocarbons across the entire national territory, aspects that companies highly value in the process of productive investment," stated Centro de Estudios Económicos del Sector Privado (Ceesp) in November.

Additionally, the plan envisions enhancing water availability, particularly in regions identified as "welfare hubs," which are poised to develop key industries such as automotive, semiconductors, and logistics.

President Sheinbaum’s administration has set ambitious goals beyond infrastructure investment. These include attracting US$100 billion annually in foreign direct investment, creating 1.5 million additional jobs in manufacturing and strategic sectors, ensuring that 50% of supplies in textiles, footwear, furniture, and toys are sourced domestically, and integrating 15% of global supply chains in the automotive, aerospace, and semiconductor industries to be based in Mexico.