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News Article

MX$297.3 Billion Public-Private Investment Plan

By Ricardo Guzman | Mon, 10/05/2020 - 11:08

MX$297.3 billion investment plan announced. President López Obrador announced a joint public-private investment plan to carry out 39 infrastructure projects worth MX$297.3 billion (US$13.9 billion) in energy, communications, transportation, water and environment. “We are signing an agreement with the national private sector, which will also mean investment, jobs and well-being,” he said. Carlos Salazar (CCE), Antonio del Valle (CMN), Carlos Slim Domit (Grupo Carso), Rogelio Zambrano (Cemex), Luis Niño de Rivera (ABM), Daniel Becker (Mifel), José Manuel López (Conaco), Francisco Cervantes (Concamin) and Héctor Ovalle (Coconal) joined the president in today’s daily briefing at the National Palace. López Obrador noted that the public sector couldn’t handle the whole recovery effort alone and highlighted the effort carried out to face the economic and health crises. The announced investment is estimated to generate over 185,190 jobs and will represent just over 1 percent of Mexico’s GDP.

Five energy projects included in plan. Five energy projects worth MX$98.9 billion (US$4.63 billion) will be included in the investment package, Business Coordinating Council (CCE) head Carlos Salazar said. Finance Minister (SHCP) Arturo Herrera highlighted that more projects will be added for the sector as they are analyzed jointly with the Ministry of Energy. The biggest project included in energy is a new coke plant at the Tula refinery worth MX$54.7 billion (US$2.56 billion). A liquefaction coke plant in Salina Cruz MX$25.2 billion (US$1.18 billion), the Cadereyta refinery coke rehabilitation MX$15.4 billion (US$720), an ethane terminal in the Pajaritos plant MX$2.5 billion (US$120 million) and a fertilizer plant in Camargo worth MX$1.1 billion (US$52 million) complete the list. Herrera said those and further investments to be announced will boost the Mexican economy.

Private sector is “the vaccine.” Head of the Presidential Office Alfonso Romo said that private investment “is the hope that will get us out of the crisis,” since it represents 87 percent of the total investment in the Mexican economy. “It is vital for growth and well-being. Just as we need a vaccine for the coronavirus, the best vaccine that Mexicans have to fight the economic crisis is private investment,” he said. Romo said infrastructure investment plans should favor hiring of Mexican companies and that a further growth opportunity might be ahead. “The world has not stopped; it is mutating toward regionalization. This is a great opportunity for Mexico to strengthen its medium and small companies, as well as to boost our domestic market,” Romo said.

Two railway projects included. After it was canceled over corruption allegations, the railway project to link Mexico City with Queretaro will be resumed, Finance Minister (SHCP) Arturo Herrera announced. The MX$51.3 billion (US$2.4 billion) project is included in the investment plan presented today and work will start in June 2021. The project was abruptly canceled at the start of former President Enrique Peña Nieto’s administration. The federal administration will also expand the Suburban Train to connect Lecheria Station in the State of Mexico with the new Santa Lucia International Airport, according to the plan unveiled today by Herrera. An investment of MX$12.5 billion (US$590 million) is expected for this project and work will start in March next year.  

Guatemala and Honduras convinced migrants. President López Obrador said the governments of Honduras and Guatemala helped convince migrants in a caravan to return to their countries, since the conditions now are not right in the face of the COVID-19 pandemic. “Fortunately, the caravan that was coming from Honduras is no longer coming because both the Honduran and Guatemalan governments helped convince them,”  López Obrador noted. The president said his administration will continue to observe the situation.

 

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Click HERE for full transcript in Spanish

Ricardo Guzman Ricardo Guzman Editor