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News Article

Third Infrastructure Package Has Just Arrived

By Lorenzo Núñez | Fri, 07/23/2021 - 16:05

The Ministry of Communications and Transportation (SCT) is preparing between 10 and 15 projects totaling US$3.4 billion (MX$70 billion), which are considered as part of the third infrastructure package to be presented and promoted by the federal government and the private sector, reported Rogelio Rivero Márquez, general director of Highway Development for SCT.

In a conference hosted by the College of Civil Engineers of Mexico, Márquez detailed that these projects will be added to the other 30 projects where the SCT is currently participating in, these derived from the first two infrastructure programs launched in October 5 and November 30 of last year. As previously reported by MBN, the first package was released back in November 2019, made up of 147 projects with an investment totaling US$43 billion (MX$859 billion pesos). While the second package was released in November of last year, which brought together 29 projects with a combined investment of US$11.4 billion (MX$228 billion pesos), according to the president’s website.

Márquez added that one third of the 30 projects belonging to the third package announced last year, are currently being developed. The objective for the rest of the package of projects to be put out to bid, they are expected to be completed before the current administration ends. Márquez did not give a date for the presentation of the rest of the projects; however, the Mexican Confederation of Employers has said the presentation will be sometime this month. He stressed that it is necessary to promote projects with the private sector because the agency´s budget is coming to an end. The US$9.5 billion (MX$192 billion) investment designated for the 30 projects already announced, represents 4.5 times SCT´s fiscal income in one year. "We can no longer depend so much on the Federal Expenditure Budget. We have to look for projects whose own demand pays for the investment, operation and maintenance, generates profitability for the concessionaire and the country", said Márquez.

President López Obrador had previously mentioned that the country’s development cannot rest solely on public investment. “We reaffirm the desire, the will to work together and promote private investment, which is fundamental. The country cannot be developed with public investment alone, private investment is required, and a very good agreement was reached, it was a friendly meeting, there was no difference, no confrontation.”

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Lorenzo Núñez Lorenzo Núñez Junior Journalist & Industry Analyst