Mexico announces new transportation and telecommunications investment program

by DLA Piper

Gerardo Ruiz Esparza, the Mexican Minister of Communications and Transportation, has announced a new Investment Program for Transportation and Telecommunication for fiscal years 2013-2018.

The total amount of investment projected for this program is M$1.3 trillion (at this writing, about US$100 billion).

The program, announced on July 15, 2013, will include both public investment and public-private partnership (PPP) projects. The Mexican Federal Government intends to attract private capital from domestic and foreign sources through a PPP model.

The program will include 15 highways, 29 roads, 16 road bypasses, seven bridges, three passenger train systems, six BRTs (urban bus rapid transport systems), four cargo train systems, seven seaports and seven airports, as well as projects aiming to providing higher quality, lower cost telecommunication services in Mexico.

The government plans to build about 5,410 kilometers of new highways and roadways. Among the planned construction projects  are the Siglo XXI project (a toll road connecting Morelos-Puebla); toll roads connecting Guanajuato-San Miguel de Allende in Guanajuato, Tuxtla-Villaflores in Chiapas, Tuxpan-Tampico in Veracruz and Tamaulipas, Cardel-Poza Rica in Veracruz, and Atizapán-Atlacomulco in the State of Mexico; and, in the southern part of the country, roads connecting Pachuca with Huejutla and Comitán to the Mexico-Guatemala border. 

The Mexican Federal Government also plans to provide funding for the Indios Verdes-Santa Clara elevated highway. 

In all, the government plans to construct and modernize around 19,000 kilometers of highways and roadways.

Also part of the new investment program are the México-Querétaro, México-Toluca and Mérida-Riviera Maya railroad projects; expansion of the Monterrey and Mexico City subway systems; and construction of a light rail system in Guadalajara.  In total, the government intends to build and modernize more than 350 kilometers of railroad tracks.

Port expansion is another aspect of the program, with plans for the ports of Veracruz, Altamira, Manzanillo and Lázaro Cárdenas.  In total, the government plans to build nine cargo specialized terminals and one cruise terminal.

With respect to air transportation, the program includes the modernization of 6 airports throughout the country and the construction of a new Mexico City airport. The specifics of that project have not yet been decided.

In the area of telecommunications, the government has committed to providing higher quality, lower cost telecommunication services throughout Mexico. The government plans to install a shared network on the 700 Mhz band and to launch two new telecommunications satellites.  In addition, the program will include a public bid process for two nationwide free television  channels and a public television network.

Construction on the new projects is expected to begin in early 2014.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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