The new federal PPP law gives infrastructure investors and contractors a more certain environment, Mexico's government plans to invest US$316 billion in infrastructure projects by 2018.
Mexico enacted its new federal public-private partnership (PPP) law, Ley de Asociaciones Público Privadas (Law on Public-Private Partnerships), in January 2012. The accompanying regulations were published in November 2012.
Most Latin American countries – including Brazil, Chile and Colombia – have a PPP-specific law and an infrastructure program that aims to attract investors' funds.
So if Mexico isn't unique, is it unusual? We think it is. It has three features that will make it an important infrastructure market in the next five years:
• The political will. President Enrique Peña Nieto took office in 2012 and announced a range of reforms aimed at lifting economic growth, including the recently approved opening of the energy sector to private investment.
• A US$316 billion infrastructure budget, including US$48 billion for transport. Peña announced his 2013 – 2018 development plan – and infrastructure spend 35 percent higher than his predecessor's – in July 2012.
• A new federal PPP law. The law reflects best practice from other jurisdictions and is aimed at attracting private investors.
In this briefing we set the context of the new law and summarize the key points. We hope you find it useful.
To read the full report please click here.
This publication is provided for your convenience and does not constitute legal advice. This publication is protected by copyright.
© 2014 White & Case LLP