The Mexican government has announced two coker plants and rail infrastructure as part of new public-private infrastructure investment.
The US$14.2 billion (MX$300 billion) infrastructure investment plan, a positive signal for private investors, will explore additional infrastructure packages to be launched by the federal government since the overall investment for this announcement remains far from the 2019 total investment numbers (MX$5 trillion).
While some projects already have been awarded, others will be subject to government procurement procedures whose legal regimes are yet to be announced.
Development includes the two Coker plants (planta coquizadora) in Tula (Hidalgo) and Salina Cruz (Oaxaca), a high-speed train connecting Mexico City and Querétaro and a railway connecting Monterrey's airport with six municipalities in the State of Nuevo León.
The announcement was a follow-up to the broader national infrastructure plan announced in November 2019 and part of this year's Economic Recovery Agreement (Acuerdo para la Recuperación Económica) amid the COVID-19 pandemic.
Projects are distributed in 20 states nationwide. Seven projects are already in construction and 32 are expected to break ground in 2021. The Ministry of Finance (Secretaría de Hacienda y Crédito Público) said that two subsequent project clusters will be announced for 2022 and 2023 and that the investment goal is to achieve 25 percent of the national gross domestic product (GDP).
Most of the other projects are focused on the construction and rehabilitation of regional highways and toll roads (20 in total).
All projects to be developed have diverse characteristics and different impacts across sectors, so it is important to keep track of the development and how it can benefit specific business or region.
Below is a summary of the projects.
For the energy sector, the portfolio has two natural gas projects: a Liquefied Natural Gas (LNG) Terminal in Baja California to be developed by IEnova, and the transistmic pipeline of the Federal Electricity Commission (Comisión Federal de Electricidad or CFE) to be integrated into the Tehuantepec Isthmus Interoceanic Corridor (CIIT). In the electricity sector, CFE will develop six Combined Cycle Power Plan (CCPP) Baja California, Tuxpan Phase I, Merida, San Luis Rio Colorado, Valladolid and González Ortega, and a compression station in Tecolutla Lerdo.
For the roads sectors, 16 projects will start works in 2020 and 2021 for enabling communications of municipalities and regions located in the State of Mexico, Colima, Puebla, Tamaulipas, Sonora, Baja California, Sinaloa, Veracruz, Michoacán, Nuevo Léon, Guanajuato and Chihuahua.
In ports, a manufacturing facility for heavy components will be installed in Altamira Port, and in logistics, the T-MEC Logistic Park is set to take advantage of the new United States-Mexico-Canada Agreement (USMCA). Finally, two water desalinization and management facilities will be installed in Baja California Sur.