Infrastructure Projects Remain DebatableBy Lorenzo Núñez | Mon, 09/27/2021 - 15:39
Rogelio Ramirez de la O, Head of the Secretary of Finance and Public Credit, has stated that the big infrastructure projects will represent an economic multiplier effect for the country and that if future administrations ever manage to halt landmark projects such as the Mayan Train and the New Airport of Santa Lucia, this cancellation will cause problems for the country's public finances.
Some of the concerns from the opposition, such as that of Congressman Roberto Rubio of Partido Verde, stated that these projects "will not be reflected in greater economic development for the region, nor will they have a significant impact on the well-being of its residents”. Congressman Sergio Barrera Sepúlveda, said “we want truthful answers, and we also need a government that is empathetic with the citizens and with what happens every day in our country.”
However, Rogelio Ramírez de la O responded by stating that projects will represent an economic multiplier effect for the region in which the projects are implemented, in addition to benefiting the country in the development of goods, services, jobs and infrastructure.
“These are projects in process, if a scenario were to exist where the cancellation of the investment projects was proposed, the cost would be very high, as it would imply the cancellation of the direct and indirect jobs already existing, as well as the legal costs involved, contracts pending settlement, lawsuits and claims that would be generated. It would bring with it relevant problems to public finances”, he stated. "A key element to achieve the sustainability of Mexico's economic recovery is investment. That is why this Economic Package considers public investment spending of around US$50 billion (MX$1 trillion), standing at 3.1 percent of GDP.”
He also reinforced the current administration’s goal of not leaving any project unfinished and went over of 2022’s plans to financially continue supporting the Mexico-Toluca Intercity Train, with a cost of US$350 million (MX$7 billion). As stated by former Minister of Communications and Transportation, Javier Jiménez Espriú, the Mexico City-Toluca intercity passenger train will be ready to enter commercial operations by the end of 2022. In addition, Ramírez also added that US$2.2 billion (MX$45 billion) will be used for the Dos Bocas refinery, which is also expected to be concluded by 2022, along with all its necessary testing and equipment checks. An additional US1.1 billion (MX$24 billion) will also be allocated for priority construction projects and maintenance of communications and transportation routes.