Mexico Unveils a Second Infrastructure Investment PackageBy Alessa Flores | Wed, 11/18/2020 - 13:17
As the year comes to an end, authorities are preparing a second infrastructure package to reactivate Mexico’s economy and attract FDI. "Like the first investment package presented on Oct. 5, the second package focuses on projects that will lead to further investments," said Arturo Herrera, Minister of Finance, during the forum, Mexico: Investment Opportunities and Economic Revival, organized by Americas Society/Council of the Americas. "We hope that the next package will have a little more energy focus and will begin to diversify. We may be able to make an announcement in three weeks at the earliest," Herrera said in a note by El Financiero.
In early October, the Mexican government presented the first infrastructure investment package with 39 projects to be carried out jointly with the private sector. The first package is part of the Agreement for Economic Recovery and represents an accumulated investment of MX$297.3 billion (US$14.6 billion) in the sectors of communications and transportation, energy, water and environment. Herrera said that thanks to this initiative and others taken by the government, there are already signs of economic recovery in Mexico, such as the creation of 7 million informal jobs and 447,000 formal jobs. In addition, Herrera said that 43 percent of the recovered jobs in October, were formal jobs.
The projects of the first investment package focus on the development of communications and transport, energy, water and environmental projects. Of the 39 projects, 20 are for the communications and transport sectors, five for the energy sector, two for the water and environmental sectors, while the rest of the investment will be destined to the continuation of past projects. Overall, the government has planned an investment of US$42 billion for 147 projects to be developed between 2018-2024, based on the National Infrastructure Plan.
Carlos Salazar Lomelin, Head of the Business Coordinating Council (CCE), said that although the second package is on its way, investors are still waiting for progress on the first investment package. "The first infrastructure package of almost MX$300 billion (US$14.8 billion) is progressing, but two of the four works scheduled to begin last October have only just begun and the other two have been delayed," Salazar said at the morning press conference. He also stressed that the delays are due to bureaucratic issues and institutional barriers.