Following Mexico’s announcement in mid-2013 that it will invest more than $316 billion to transform its national infrastructure over the next six years,there has been a flurry of new investment activity and a variety of specific projects have already been targeted for development in 2014.
Recent investments in public infrastructure in Mexico’s Yucatan region,for example,will reportedly exceed $225 million,which is up 1.6 percent from the previous year. Projects will include updating ports and small harbors,developing community tourism site installations and updating local highways. In addition,Mexico will invest more than $55 million to develop its telecom sector,providing higher quality,lower cost services,along with two nationwide free TV channels,a public TV network and the expansion of fiber-optic technology in state-owned utility company Comision Federal de Electricidad (CFE).
“Financing the huge upheaval of Mexico’s infrastructure network will provide international investors with plenty of opportunities,” writes World Finance. “There is serious demand from investors for opportunities in Mexico. Funds currently seeking capital are reported to be targeting as much as $825 million.”
To maximize its economic potential for the future,Mexico is taking time to thoroughly evaluate the best infrastructure projects from a logistical standpoint and aims to strategically interconnect its land and sea transportation routes,turning Mexico into a logistics platform with even stronger links to North America,Asia and Europe. The new plan will upgrade existing infrastructure and build strategic new links wherever necessary to create the most efficient connection of airports to highways,railways and seaports,which will in turn promote tourism and allow for the more efficient mobility of people and goods.
“The government’s funding of new infrastructure projects will no doubt stir further interest from institutional investors keen to benefit from an expanding economy,” writes World Finance. “Many infrastructure funds specifically focused on Mexico have raised considerable amounts of capital in the last few years.”