Infrastructure Projects Should Be Attractive

Infrastructure projects should be attractive

26/10/2010 21:04



Mexico. Due to the limited indebtedness capacity of Mexican construction companies and lack of funding, the federal government should reduce the size of public works projects so national companies can participate more.

During the 2010 Business Summit, held in Toluca, State of Mexico, Carlos Hank Gonzalez, general director of Grupo Interacciones said that 'big projects limit the number of Mexican participants.

As a country we should look to smaller pieces for a larger number of players not only to build, but also for the access to financing.'

Recently, the Mexican Institute of Finance Executives (IMEF) warned in a voice of its president that the lag that exists in the infrastructure program in the country could lead to the collapse of the construction industry.

He even added that there is a high risk of starting to see major construction companies that could go bankrupt.

Following the international financial crisis, which began in September 2008, international financial markets made access to financing more expensive, so large projects like Punta Colonet, which would become the major infrastructure project of this administration, has been stuck because the lack of funding has complicated the participation of national and international companies.

Therefore, the federal government, through Banobras, has come to promote the agenda of infrastructure projects in Mexico to various countries during 2010, such as Spain and Germany, among others, to promote foreign investment in the sector.

This lack of resources for the sector has contributed that over 2010, the construction of civil engineering work or heavy work reported a negative growth rate of -2.2% during the first eight months of this year, unlike the overall economy growing at an annual rate above 5% to the same period.

Mexico Presents 100 Infrastructure Projects In China

Mexico presents 100 infrastructure projects in China

01/09/2010 11:00



Shanghai, China, August 3rd, 2010. The government of Mexico presented in the Shanghai Expo pavilion 100 infrastructure projects to be tendered between this year and 2011, investing more than 50 billion dollars in order to attract foreign investment to develop projects of the National Infrastructure Plan 2007-2012.

The plan, created to impulse construction has attracted between 40 and 45% of planned investment, so there is still more than half of the program to the rest of the Administration, with 75% of public funding and 25% that must come from private capital.

Chinese firms can participate in more than 70 infrastructure projects that are in the bidding process in Mexico, among which some outstand such as the so-called 'Southern Arc' of highways around the capital city, with a length of 235 kilometers.

They are also attractive the future aqueduct Falcon-Matamoros, with 260 kilometers to carry water to several cities in northern Mexico, in the U.S. border, and the creation of a combined cycle power plant of 585 megawatts, among others.

'Chinese companies (builders and promoters of industry) have made very substantial investments and have a very extensive experience in infrastructure development,' said to EFE Alonso Garcia Tames, General Director of Banobras (National Bank of Works and Utilities).

Investment In Water Infrastructure Doubles

Investment in water infrastructure doubles

28/10/2010 23:44



Mexico. In the last four years were spent, per year, $21’103,000 pesos which means a record number in the application of resources.

In particular the general director of the National Water Commission (Conagua), Jose Luis Luege Tamargo said that during 2010 it will invest $24,032 billion pesos, amounts that exceeds the $10,485 billion pesos invested in the last six years as annual average, but acknowledged that more resources are needed.

The total of the resources in question represent about half of total investment, which get to be duplicates with the participation of private sector investment, 'so it is important to involve businessmen,' he said in the Infrastructure Congress and Expo 2010.

The current investment is to supply 108 million people who need drinking water, drains and sewers, although this is a record of capital to the sector, to cover the total backlog of needs.

Only 8% of the resources comprising the 2007-2012 National Infrastructure Plan are earmarked for water infrastructure development.

Luege Tamargo said this sector faces three major problems: the overexploitation of aquifers, pollution of all types of water bodies, along with 'anarchy' in the growth of rural and urban populations.
Infrastructure