Jalisco Will Not Take on Debt to Build Light Rail

Jalisco Governor, Enrique Alfaro announced the state will not go into debt to cover the MX$2 billion (US$102.16 million) the state will invest to build the Light Rail’s Line 4 in Tlajomulco de Zuñiga, a project valued at MX$9.72 billion (US$496.3 million). According to state authorities, its share would come from the 2022, 2023 and 2024 budgets. 

Alfaro said that according to technical and financial studies, the total required investment will be divided among the federal government, the state government and the private sector. “We sent the amount to the local Congress as an unsolicited proposal for analysis… The government of Jalisco will not contract debt for the construction of Line 4, we will be able to meet the challenge of funding those US$100 million. Of course, we must adjust our budget, but it will not affect the objectives we have set,” Alfaro added. 

The governor stated that the private sector will contribute around US$290 million and that this private participation will not increase the prices for users of the system: Alfaro had committed to a price of US$0.5 per use of the Light Rail, similar terms to the state’s existing public transportation system.

Alfaro said he will monitor the millions that the federal government is to invest closely and announced a public tender to select the private party that will participate in the project.

In May 2022, president López Obrador committed to investing US$400 million in Line 4 and the El Zapotillo storage dam. He signed a letter of commitment where he specified that around US$100 million would go to the construction of the light rail project and the resources would be channeled through the National Fund for Infrastructure (FONADIN). “FONADIN will program the resources, but the [local] Congress has to authorize the unsolicited tender process, which is the financing mechanism we agreed to with the federal government,” said Alfaro. 

Line 4 is expected to move over 200,000 people a day. It will connect the municipality of Tlajomulco de Zuñiga with the city of Guadalajara, and will have eight stations: Periférico Sur, which will have a connection with Mi Macro Periferico project, Adolf B. Horn, Concepcion del Valle, San Sebastian, La Fortuna, Centro Universitario, Tlajomulco Centro and Las Juntas.

Line 4 will be a ground-level project and will travel in parallel with a Ferromex railway, which last year partially transferred its Right of Way to the project as part of an agreement with the Ministry of Infrastructure, Communications and Transportation (SICT).