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.