Infrastructure Projects Now Total US$26.11 billionBy Pedro Alcalá | Tue, 12/01/2020 - 17:59
President López Obrador has unveiled the second major agreement for the development of national infrastructure between the government and the private sector. The plan contemplates an investment of US$11.34 billion. SHCP head Arturo Herrera said 29 projects are included in this agreement. The first of these plans was announced back in the beginning of October and now the sum of both totals US$26.11 billion in infrastructure investments spread out over 68 projects. According to El Financiero, 10 of the 39 projects listed in the first agreement have already been launched. Meanwhile, Milenio reported that anonymous sources close to the negotiations of this agreement claim that the figure invested amounts to little more than 2 percent of the country’s GDP.
Reactions to the plan have already taken the media by storm. An article in La Razón collects a number of them, starting with that of energy sector analyst Ramsés Pech, who criticized the plan for only contemplating nine energy projects, none of which concerned renewable energy generation. One of these nine projects represented the single largest investment out of all 29: additional investment in the Energía Costa Azul LNG terminal worth US$2.3, billion located near Ensenada, Baja California. For a more detailed breakdown of the plan’s energy outlook, check out our piece on the subject here. Other reactions included that of Ricardo Trejo, director of consultancy Forecastim, who commented that this plan was very similar to analog investment initiatives by the previous Enrique Peña Nieto presidential administration. Javier Nuño, head of the investment unit at SHCP, said the next infrastructure investment package was already being put together and would most likely be announced in January 2021. Seven of these projects have already been accounted for and the package will likely involve a more active participation from both CFE and PEMEX. Reactions also focused on the geographical distribution of these investments, with one piece from El Informador lamenting that none of them were directed towards the state of Jalisco, while a piece of Uniradio Noticias celebrated that two of the projects were happening in the state of Sonora.
The complete list of the projects, along with the companies and invested amounts involved, was made available by El Economista here. Eight of the projects are built for the connectivity of the new Mexico City Felipe Ángeles Airport in Santa Lucia. During the presentation, the private sector was represented by CCE and its leader Carlos Salazar, who said this agreement would generate over 400,000 jobs. The president expressed his optimism as well, when he said that Mexico will have a full economic recovery from the events of 2020 by the end of 1Q21. “In the first three months of next year, we will go back to the situation in which we found ourselves before the pandemic. We will be able to recover and we will start to achieve greater economic growth,” he said.