Government to Revive Energy Infrastructure PlanBy Cas Biekmann | Wed, 08/19/2020 - 15:03
As a part of its new economic-reactivation initiative, the government is planning to restart the energy infrastructure plan, which had been put on hold since December 2019, reported El Financiero. The main focus of the initiative is on infrastructure projects, where the energy sector will also participate. “A joint infrastructure construction plan will be presented to promote the construction industry, including the energy sector,” said the president, even though he did not elaborate on any details.
The general initiative is considered a mechanism to spur economic recovery, as well as combating the economic slump that the COVID-19 pandemic has brought. López Obrador noted that the government is in talks with various entrepreneurs, business organizations and the Business Coordinating Council (CCE). The original plan considered an investment of about US$100 billion.
El Financiero reports that the private sector had been paying close attention to the president’s calls to discuss the reactivation of the infrastructure plans and projects. CCE said it will issue a five-point plan for an effective economic recovery. The five points consider the reactivation of domestic consumption of goods and how to responsibly and healthily co-exist with the virus while maintaining productivity, providing financing to companies, stimulating Mexico’s economy with an energy infrastructure plan and involving companies in supply chains.
Manuel Molano, Chief Economist of the Mexican Institute for Competitiveness (IMCO), argued that if the initiative aims to spur economic recovery, it would need to feature projects fully invested in and operated by private companies in the energy sector. He notes that the state perhaps does not realize that it could have made more money from the energy reform by not attempting to involve itself as a main player and instead leave that to private companies.