Existing concession revenues will mitigate post-election slowdown - ICA CFO

- Friday, October 28, 2011

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Mexican construction firm ICA (BMV, NYSE: ICA) expects a slowdown in new infrastructure projects following the country's 2012 presidential election but should avoid any major financial impact as the last of its outstanding concessions start operations by the fourth quarter, according to CFO Víctor Bravo.

While the incoming president assembles a team and maps outs a plan for the new administration, there is typically a decrease in government investment in infrastructure and large-scale water projects, Bravo said in a conference call.

ICA expects its revenues to be bolstered by its portfolio of concession projects such as the Atotonilco wastewater treatment plant, the El Realito water transfer line and the US$136mn La Piedad bypass in Michoacán state, all due to start operations by the end of next year, said the CFO.

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The company expects the tender market to start moving again in Q2 and Q3 of 2013, Bravo said.

Mexico's presidential elections are set to take place on July 1 next year. President Felipe Calderón is ineligible to stand for reelection under the current constitution.