New Decree Establishes Projects As Matters of National Security

A new decree that establishes federal projects as matters of public interest and national security,  such as the Maya train, are expected to protect them from scrutiny and legal challenges, as well as speed up legal and administrative procedures. BBVA’s Chief Economist claims Mexico must develop an infrastructure plan similar to the US to modernize the country. In addition, as Mexico fights to reactivate its economy, public transportation systems continue to receive more passengers.

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New Decree Establishes Federal Projects as Matters of National Security

The Federal Executive published a decree that declared the government’s construction projects as matters of national security, also allowing information related to the development of these projects to be shielded. Moreover, the issuance of provisional permits or licenses can be delivered in less than five days. President López Obrador explained that the government decree on federal works was meant to speed up procedures and ensure that construction of these projects continue. “It is an agreement to streamline the procedures and guarantee that these projects are not halted due to bureaucratic procedures. The institutions and companies that are working on the Mayan Train can have confidence and speed up the procedures."

Mexico Must Replicate US Infrastructure Plan: BBVA

Mexico must develop an infrastructure plan such as the one proposed by US President Joe Biden’s administration to improve its existing infrastructure, said Carlos Serrano Herrera, Chief Economist at BBVA Mexico. To achieve well-developed infrastructure, the country needs a portfolio of projects with feasibility studies and clear financial and social returns ready to be implemented based on technical and non-political criteria, said Serrano.

Urban Transport Traffic Continues to Grow in 2021

Urban transport traffic continued its upward trends in Sep. 2021, with Mexico City, Guadalajara and Pachuca reporting an increase in passengers, according to a report by the National Institute of Statistics and Geography (INEGI).

In Sep. 2021, 109.2 million passengers used Mexico City's urban passenger transport systems, a 3.8 percent increase from Aug. 2021, according to INEGI’s Monthly Statistics on Urban Transport of Passengers (ETUP). Meanwhile, Guadalajara showed a much larger month-to-month increase in passengers in Sep. 2021, registering an 8.8 percent growth with 14.4 million passengers. Pachuca, increased its passenger activity 2.2 percent from the previous month and 3.6 percent year to year.

Mexico Bets on Hydropower to Drive Clean Power Production

President Andrés Manuel López Obrador, once again touted hydroelectric power production as the basis on which Mexico will reach its clean energy goals. The existing capacity provides perspective for state utility CFE, but experts doubt whether hydroelectric energy can stretch as far as the government expects.

Mexico, Canada, US Boost Indigenous Community Energy Transition

Following a trilateral agreement between Mexico, Canada and the US signed at COP26, the countries are launching an initiative that aims to support the clean energy transition for remote indigenous communities. The countries are collaborating with the International Renewable Energy Agency (IRENA) through the Commission for Environmental Cooperation (CEC).