Image credits: Christian Wiediger
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News Article

Development Banks to Support Major Infrastructure Projects: SHCP

By Fernando Mares | Tue, 09/20/2022 - 19:42

The Ministry of Finance (SHCP) announced that the federal government will lean on national development banks to boost the construction of key national infrastructure projects with financing options and other means like factoring. 

After the presentation of the General Criteria for Economic Policy for 2023, SHCP stated that key infrastructure projects like the Mayan Train, the Felipe Angeles International Airport (AIFA) and the Interoceanic Corridor would be backed by the national development banks, which would also support other projects related to agriculture. The Ministry pointed out that the banks that will back the projects will be Nacional Financiera (NAFIN), the National Bank of Foreign Trade (BANCOMEXT) and the National Banks for Public Works and Services (BANOBRAS).

SHCP mentioned that the projects that will receive resources will be the Interoceanic Corridor, the Interurban Train Mexico-Toluca, AIFA, the Dos Bocas Refinery, the realignment of the Tula Refinery, the Internet para Todos network and the revamping of Mexico City’s Line 1 of the Metro system. 

SHCP also announced that NAFIN will support other areas considered of great economic, social and environmental importance. In this sense, NAFIN will support PEMEX’s suppliers through factoring operations.  “We will impulse financing for operations and projects… though support for production, acquisition of raw materials in the country and outside, inventory control, equipment for industrial plants and credit for projects during the construction, operation and maintenance phases,” SHCP stated. 

Among other projects, the ministry will focus on projects to make agriculture more resilient to climate change effects through Agricultural Trust Funds (FIRA) which will be aimed to support small producers that struggle to adapt. “The strategy to promote sustainable projects will be strengthened, this will allow to mitigate the effects of climate change on agriculture and at the same time contribute to the international compromises acquired by Mexico,” SHCP stated. 

SHCP has labored to ensure the success of federal infrastructure projects. On July 13, 2022, MBN reported that SHCP collaborated with the Interamerican Development Bank (IDB) to launch financing and tax stimulus packages for companies that wanted to move their operations to the Interoceanic Corridor. IDB is to grant up to US$2.8 billion of private financing to companies that want to settle along the project, an amount in addition to the US$200 million that SHCP had previously granted for micro, small and medium-sized companies channeled via NAFIN and the Ministry of Economy (SE).
 
 

The data used in this article was sourced from:  
MBN, La Jornada
Photo by:   Christian Wiediger
Fernando Mares Fernando Mares Junior Journalist and Industry Analyst