Fiscal reform and PPP law will spur Mexican infrastructure market - Cemex

Friday, February 15, 2013

The Mexican infrastructure market will see a surge in activity during 2014, following fiscal reform expected during the second half of this year, said the president of Cemex's (NYSE: CX) Mexican operation Juan Romero during Cemex Day.

"The new administration is committed to the structural reforms necessary to secure growth and is committed to continued infrastructure spending," said Romero.

Fiscal reforms promised by president Enrique Peña Nieto are expected to "free up more cash" for infrastructure investment ,while "we hope to start seeing results of the public-private partnership law at the beginning of 2014," said the president.

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Cemex expects to see up to 6% annual growth in GDP as a result of reforms.

During 2012, Cemex completed 22 turnkey projects in the Mexican infrastructure sector, including 18 highways and four bus rapid transit systems. Some 23% of all Cemex sales are in the infrastructure sector, said Romero.

By 2016, Cemex Mexico plans to increase the share of alternative fuels to 40% and reach an Ebitda of US$1.6bn, up from the current US$1.2bn, according to the president.