For the current federal administration in Mexico, infrastructure is an essential component for economic development and the promotion of well-being among the Mexican population.
For this reason, the federal government has recently presented various infrastructure investment plans and programs, including:
- The Strategy for Equitable and Sustainable Economic Development for Shared Prosperity, known as "Plan Mexico", presented on January 13, 2025, whose objective is to orient national economic policy toward strengthening the domestic market, strategic import substitution, and balanced regional development, and which includes, among its actions, the tendering of projects through strategic investment schemes; and
- The Infrastructure Investment Plan for Development with Well-being 2026-2030, presented on February 3, 2026, which provides for the creation of financial schemes to increase public investment in infrastructure with the coordinated participation of the public, private and social sectors.
The Initiative and Its Key Aspects
In this context, on March 19, 2026, the Bill to Promote Investment in Strategic Infrastructure for Development with Well-being (Ley para el Fomento de la Inversión en Infraestructura Estratégica para el Desarrollo con Bienestar, the "Bill") was presented, the purpose of which is to regulate new investment mechanisms designed to promote the development and execution of strategic public infrastructure projects that contribute to national development, through the participation of the public, private and social sectors.
The projects for development with well-being (Proyectos para el desarrollo con bienestar, the "Projects") are defined as strategic infrastructure projects, the provision of services, or the acquisition of goods and equipment in the sectors indicated in Section 2 below, which are aligned with economic development plans or programs for the benefit of the Nation, and whose eligibility is determined by a new Strategic Planning Council for Infrastructure Investment (the "Council").
The key aspects of the Initiative are summarized below.
1. Investment Coordination Vehicles.
The Initiative provides for three types of coordination vehicles for investment in Projects: (i) Special Purpose Vehicles; (ii) public funds and trusts; and (iii) Public-Private Partnership Schemes. These mechanisms aim to foster effective coordination among the public, private and social sectors for the development of strategic infrastructure, subject to the constitutional framework and applicable budgetary, financial and public debt provisions.
1.1. Special Purpose Vehicles.
The Ministry of Finance and Public Credit may implement the creation of Special Purpose Vehicles ("SPVs") to coordinate the participation of the private and social sectors in the development of Projects. SPVs may be established as public or private trusts, mandates, or similar entities, as well as in the form of a Corporation, an Investment Promotion Corporation, a Stock Market Investment Promotion Corporation, or a Stock Market Corporation. The public, private, or social sectors may participate jointly or separately in their establishment, and states and municipalities may also participate, provided they allocate locally sourced resources and have the corresponding authorizations. SPVs shall have as their sole purpose the investment in or financing of Projects and may issue trust-based securities or similar debt instruments to finance themselves.
1.2. Public Funds and Trusts.
Public funds or trusts created by law or by decree of the Federal Executive Branch whose purpose is the execution of Projects may participate in the investment mechanisms provided for in the Initiative, provided that such actions are carried out in accordance with their purposes, operating rules, and applicable legal framework.
1.3. Mixed Participation Schemes.
Mixed Participation Schemes are mechanisms through which Government Agencies, Entities and Public Entities participate directly or indirectly, jointly with the private or social sector, or both, in the financing, design, development, construction, operation, conservation, maintenance, rehabilitation, operation, or provision of services related to Projects, sharing risks, costs, investments, benefits, or returns.
In these schemes, the public sector's participation may be a majority, minority, or equal stake, and may take the form of cash contributions, contributions in kind, rights of use, concessions, permits, assets, or any other form permitted by applicable law. The participation of government agencies, entities and public bodies in these schemes must be approved in advance by the Council, without such approval constituting, in and of itself, budgetary authorization or implying any obligation to spend, incur debt, or provide a guarantee.
The Initiative provides for the following types of mixed investment schemes:
- Long-Term Contracting. Under this scheme, the private or social sector, or both, participates in the financing, design, construction, equipping, operation, upkeep, maintenance, rehabilitation, modernization, or provision of services related to the Projects, for a specified term, in exchange for periodic payments, consideration, fees, revenues, or any other mechanism for recovering the investment. Payments may be linked to compliance with previously established performance standards, service levels, availability, quality, or results. Contracts must provide for, among other elements, the allocation of risks among the parties, performance indicators, conditions for early termination, asset reversion, and dispute resolution mechanisms. Upon expiration of the contract, the transfer of assets to the relevant Agency, Entity, or Public Body shall be mandatory, unless otherwise provided by special legal provision.
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Joint Investment. Under this scheme, government agencies, entities, and public bodies, together with the private or social sector — or both — jointly participate in the financing, development, construction, operation, maintenance, rehabilitation, or provision of services related to Projects, sharing risks, costs, investments and benefits in accordance with each party's share of participation.
The relevant Agencies, Entities and Public Bodies must maintain a direct or indirect stake in the share capital, trust assets, or equivalent structure of the vehicle established for the project, and may participate through the contribution of capital, rights, or other assets, or through a partnership with the private or social sector.
In such cases, a mixed-investment contract must be entered into, which must include, among other elements, each party's equity interest, the contribution structure, the distribution of profits and losses, the allocation of risks, governance rules, performance standards, the payment structure — which may not increase in real terms — the conditions for termination and asset reversion, and dispute resolution procedures. The infrastructure and other assets associated with the Project may be pledged as collateral to secure financing related to its development, operation, or maintenance.
- Specific Schemes (e.g., Electricity and Hydrocarbons). The Initiative provides for the possibility of utilizing the schemes set forth in the specific laws of the relevant sectors, including those of the energy sector. In particular, projects related to the energy sector will continue to be governed by the Electricity Sector Law and the Hydrocarbons Sector Law.
- Others. The Initiative provides that any other mixed-ownership schemes determined by the regulations of the law or the guidelines issued by the Ministry may be used.
2. Sectors and Project Eligibility
2.1. Sectors.
The support and benefits provided for in the Initiative may be granted to Projects focused on the sectors of communications, transportation, water, environment and sustainability, energy, health, education, urban development, tourism, industrial parks, technologies and national competitiveness, as well as any other sector that is consistent with the National Development Plan and the programs arising therefrom.
2.2. Project Eligibility Requirements.
Projects seeking to access the investment mechanisms provided for in the Initiative must be submitted to the Council for consideration to determine their eligibility. To do so, they must: (i) be aligned with the National Development Plan and the programs derived therefrom or any program or strategy related to economic development; (ii) in the case of projects under development, have feasibility studies demonstrating their technical, legal, economic and financial viability; and (iii) have an economic, financial and equity valuation of the infrastructure assets and associated rights.
3. Support and Benefits
3.1. Support.
Eligible Projects — that is, those whose eligibility and suitability have been determined by the Council — may access the VPE to optimize their financial structure, obtain liquidity, or improve financing conditions for their implementation, always seeking the best economic and financial terms. Support may include contributions of resources, access to financing schemes channeled through the VPE, and even the granting of Federal Government guarantees in certain cases.
3.2. Benefits.
The Initiative provides for two types of incentives to promote Projects: (i) the signing of cooperation agreements between the relevant federal authorities and the states and municipalities; and (ii) the granting of tax incentives by the Federal Executive. These benefits aim to create a favorable environment — for attracting investment and fostering coordinated participation by the various levels of government in the development of strategic infrastructure.
4. Award
Generally, the Government Agencies and Entities intending to develop an Eligible Project must issue a call for bids, in which domestic or foreign legal entities that meet the requirements of the call may participate, including consortia that agree to form a legal entity should they be selected as winners. The Project will be awarded to the participant who submits the most viable proposal that ensures the best economic terms for the State. In some cases, Eligible Projects may be awarded through invitation procedures involving at least three parties or through direct award.
5. Strategic Investment Contracts
Projects may be carried out through strategic investment contracts. These contracts must contain, at a minimum, the purpose, source, and cost of capital; the rights and obligations of the parties; technical specifications and performance levels; execution deadlines; risk allocation; grounds for rescission and early termination; the regime of contractual penalties; and dispute resolution procedures. Contract terms may not be less than four years nor exceed, including extensions, 40 years.
Additionally, contracts must provide for, among other aspects: (i) guarantees; (ii) accounting and budgetary records consistent with the associated payments within the timeframes established in the contracts themselves; (iii) the specific grounds for contract modification, including the restoration of economic balance; (iv) the possibility of total or partial assignment of rights; (v) the terms and conditions for reimbursement to the contractor in the event of early termination; and (vi) the means of dispute resolution.
6. Final Considerations
6.1. Status of the Initiative.
As of the date of this note, the Initiative is pending review and, if applicable, approval by the Legislative Branch. If approved, the Law will enter into force on the day following its publication in the Official Gazette of the Federation, and there will be a period of 180 calendar days for the issuance of the corresponding Regulation and for the Ministry of Finance and Public Credit to issue the corresponding guidelines, which will establish the requirements, the limits on resources and their source, as well as the performance indicators, timeframes and factors to be considered, so that a Project may be eligible to participate in the investment mechanisms covered by the Initiative.
6.2. Amendments to the Federal Budget and Fiscal Responsibility Law.
The Initiative includes various reforms and additions to the Federal Budget and Fiscal Responsibility Law, among which the following stand out: (i) the incorporation of the definition of "Projects for Development with Well-being"; (ii) the obligation to present, in the General Economic Policy Criteria, the multi-year spending commitments for the budgeted fiscal year and the following five years; (iii) the addition of Article 35 Bis, which empowers the Ministry of Finance and Credit Public to authorize, on an exceptional basis, the initiation of procurement procedures without sufficient budgetary funds, provided that the necessary budgetary adjustments are processed prior to the award or contract execution; and (iv) the express inclusion of strategic investment contracts among the multi-year contracts that may be entered into by spending agencies.
6.3. Considerations Regarding the Public-Private Partnerships Act.
The Initiative does not expressly repeal or amend the Public-Private Partnerships Act. However, the explanatory memorandum notes that current regulatory provisions on public procurement — including the Public-Private Partnerships Act — do not comprehensively cover the investment, co-investment, or financing models that the Initiative aims to regulate. Therefore, it is reasonable to expect that, upon the Initiative's entry into force, the federal government will prioritize infrastructure development through the mechanisms established in the Initiative.
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