BANOBRAS Will Inject Resources Into Lecheria-AIFA Rail Link

As the deadline for completing the Suburban Train rail link to the Felipe Angeles International Airport (AIFA) draws near, the National Bank for Works and Public Services (BANOBRAS) aims to inject more than MX$5 billion (US$271.2 million) into the construction project, as it scrambles to ensure the project's successful continuation.

In an interview with Forbes, Jorge Mendoza, Director General, BANOBRAS said the financial institution is planning to give a non-repayable grant for the construction of the Lechería-AIFA rail link to ensure works continue in the next six months. The bank is also working with the railway operator, Ferrocarriles Suburbanos, to ensure the railroad is operated properly. The loan is expected to be ready in the coming three months.

In a first stage, the institution will grant MX$1.4 billion (US$76 million). BANOBRAS is also looking to hand over MX$5 billion (US$271.2 million) to the project via the National Fund for Infrastructure (FONADIN). “The important issue here is that from now on and for the next six months, FONADIN will supply the resources,” Mendoza added. 

According to Mendoza, BANOBRAS could provide MX$7 billion (MX$380 million) for the project, but such a high amount would not be necessary as the private sector is also going to fund it.

Ensuring the project meets its deadline is a priority for BANOBRAS and the Ministry of Infrastructure, Communications and Transportation (SICT), as the link will ensure connectivity with Mexico City. “We must finish this project because it will help AIFA. If users take this train, they could get to AIFA in 40 minutes, no matter where in Mexico City they are traveling from,” Mendoza said.

On Jan. 25, 2022, the federal government announced three projects to improve AIFA’s connectivity: upgrading the San Jeronimo highway, which connects AIFA with the Mexico-Pachuca highway, the CT highway, and the rail link via the Suburban Train. The first two projects are now completed, the Suburban Train expansion is still under construction with 39% progress, according to SICT’s latest update.

BANOBRAS has recently become Mexico’s fifth-largest financial institution owing to its participation in key infrastructure projects like the Mayan Train. The transportation sector accounts for 29% of the institution’s project portfolio, meaning the federal government considers BANOBRAS to be the financial arm of its infrastructure projects.