Guatemala-Mexico gas pipeline bid launch set for 2016

Friday, May 16, 2014

The bidding round for a natural gas pipeline linking Mexico and Guatemala will be launched in 2016, the latter nation's government said in a statement.

The two countries signed an agreement in April to build a US$600mn-700mn, 600km pipeline that will run from Salina Cruz in Mexico to Escuintla in Guatemala, BNamericas reported at the time.

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Mexico will contribute 60% of the financing and Guatemala 40%. Construction is expected to take four years.

The pipeline is one of 10 large infrastructure projects the Guatemalan government is planning, which include a dry dock on the country's border with Mexico and a suburban rail line in Guatemala City. Total investment of US$7.4bn will come from public and private funds, and the infrastructure will pass into state hands after 25 years.

The projects will make Guatemala a center of logistics and investment in the short and long term, vice president Roxana Bladetti said in a press conference.