Mexico- infrastructure sector trends and opportunities

In our sixth series of blog posts, we are introducing infrastructure sector trends and opportunities, continuing with Mexico.

Infrastructure is one of the main elements of the so-called Commitments (Compromisos), which were policies announced by the current President Peña Nieto during his presidential campaign in 2012. From the total of approximately 255 commitments, 140 are related with infrastructure. In the so-called Pact for Mexico (Pacto por México) 10 out of 95 specific agreements are related to infrastructure according to PwC Mexico. In terms of global ranking, according to World Economic Forum’s Global Competitiveness Index of 2015-2016 Mexico ranks 59th  out of 140 economies in terms of infrastructure.

The National Infrastructure Plan (PNI) 2014-2018 with a planned investment of 7,7 billion Mexican pesos  covers 743 projects with 223 of them directed to improving transportation connections mainly roads according to the Presidents’ office.  Other transportation projects include airports, ports as well as railroads. According to Journal of Commerce, the volume of cargo passing through Mexican ports is expected to increase 80% from 2014 levels by the end of 2018.

This infrastructure plan also covers agricultural development, energy, health and tourism in order to attract more investment and generate more employment and improve the livelihoods of the citizens through improved infrastructure.  Therefore, the plan includes renewable energy projects to provide improved energy access as well as ICT to provide improved internet access, with a focus on some of the poorest regions of the South and Southeast Mexico. In addition, Fund for Support of Social Infrastructure (FAIS) has budgeted c. 324 million Mexican pesos for education, health, housing and development of agricultural and community infrastructure directed for the most vulnerable.

Though it still remains to be seen how these plans are implemented, Mexico does offer many opportunities in infrastructure investment which can also benefit the rural communities.

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