Mexico’s current President,Enrique Peña Nieto,is pushing to break up the state monopoly on PEMEX in 2013,which would open up the nation’s oil and gas exploration and production. This will also allow foreign corporations to invest in the nation’s energy sector and would spark a major boom in Mexico’s already strong economic growth. Since the oil fields were seized by the state more than 70 years ago,foreign investment has been very limited and as a result Pemex has not received the necessary funds to tap into the significant but as yet undeveloped oil reserves and shale gas deposits of Mexico.
“Peña Nieto says his administration will send the energy bill to Congress by September,when regular sessions resume,” writes Bloomberg Businessweek. “There’s political momentum to pass more reforms after the approval of new education and telecommunications laws that opened up both sectors to more competition.”
To facilitate the energy reform bill’s passing through Congress,Peña Nieto has fostered a political climate of understanding and agreement among the nation’s three main political parties. They have promised to work with one another to pass the reform agenda. Congress has already passed new education and telecommunications laws to reduce corruption,break up monopolies,open these key sectors to more competition and create an outside body to assess Mexico’s schools and improve their performance.
Also of note,outside investment in Mexico’s energy sector has already begun in the Yucatan Peninsula,where GE Energy Financial Services has provided more than $44 million and owns a 32.5 percent stake in the Mayakan gas pipeline. The investment will be used to fuel the region’s power plants with natural gas,which is cleaner and less expensive than diesel or fuel oil. The Yucatan Peninsula also happens to be home to the Riviera Maya and Mexican Caribbean,which is one of the world’s most popular vacation and ex-pat destinations. Here,visitors and residents alike come from all over the globe to enjoy everything the region has to offer and often wind up purchasing property in Cancun,Tulum and Playa del Carmen real estate.
In addition,Mexico has just announced a new,$20 billion infrastructure-spending plan that will improve the nation’s roads,railways and seaports,according to Reuters. In fact,work on many of the projects has already begun and six major ventures are planned for completion by 2018. For example,investors and developers are involved in a plan to create a high-speed rail connection between Mexico City and the industrial hubs that are located more than 125 miles north of the nation’s capital. Bombardier,which is the world’s largest train manufacturing company,expects to begin bidding on at least six new passenger rail projects in 2013.
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