AMLO calls for $4 billion of investment for road infrastructure

AMLO calls for $4 billion of investment for road infrastructure

Funds Project & Infrastructure Finance Loans Mexico

The Mexican government wants to invest MXN78bn ($4bn) in public and private funds for road infrastructure in 2019. 

During a presentation of the country’s 2018-2024 road infrastructure program, President Andres Manuel Lopez Obrador, along with other officials, outlined the new administration’s plans to improve the connectivity and quality of the nation’s roads. 

The government will spend MXN19.6bn to improve highways operated by the federal government, which represent 50,000km of the 400,000 km of roads in Mexico. The administration says that is the double the investments in federal roads made in the last two or three years compared to the previous administrations. 

Highway maintenance will be a priority under the new program. The project also calls for finishing projects already underway, such as the Oaxaca-Mitla-Istmo de Tehuantepec and Oaxaca-Puerto Escondido roads, as well as the pavement program in Oaxaca. 

Officials didn’t provide an exact breakdown of the exact amount of investment expected to come from the private sector. Also uncertain is how many additional service contracts or concessions will be made to the private sector. Out of the remaining 350,000km of roads, 310,000km are operated through concessions to private parties. 

Under an infrastructure push that began last year, the Mexican government increased the use of public-private partnerships (PPPs) in the road transport, hospital and prison industries. 

All the funds the government has earmarked for PPPs in 2019 will go towards the road transport sector, highlighting the priority the administration is giving to roads this year. Currently, 11 of the 23 PPPs that exist in Mexico involve road transport.