Mexico reacts to mega airport's cancellation

In a non-binding referendum on October 25-28, of the just over 1mn Mexicans casting their ballot almost 750,000 voted in favor of cancelling the 285bn-peso (US$14.2bn) international airport currently under construction in Texcoco, east of Mexico City.

President-elect Andrés Manuel López Obrador (AMLO), whose transition team was in charge of organizing the vote, pledged to respect the result and halt works once he takes office on December 1.

The alternative consists of upgrading the existing Mexico City and Toluca airports and building two runways at the Santa Lucía military air base.

The result of the referendum and the accompanying announcement by AMLO caused a stir in Mexico.

BNamericas takes a look at some of the comments that followed the announcement of the cancellation.

POLITICIANS

Andrés Manuel López Obrador, president-elect

"The decision that the citizens made yesterday is a rational, democratic and efficient one," he told a press conference the morning after the results of the referendum were announced.

"Since we began analyzing this topic, we made clear that the interests of companies and investors would be safe. There are funds in the existing [airport] trust to back up all the contracts and investment-related commitments."

"The rule of law should not be subjected to financial markets. The predominance of a minority has ended."

President Enrique Peña Nieto, president

"In order not to affect or to fail to comply with pre-established conditions, such as the bonds issued for the financing of the project, from here until November 30 no modifications will be made to the concession or to the execution of the new airport project."

Vicente Fox, former president

"Cancelling the project is like spitting in Mexico's face."

Claudia Ruíz Massieu, leader of the ruling PRI party

"We think the consultation was a farce and defrauds a constitutional article."

Ildefonso Guajardo, economy minister

"To say that this [the cancellation] can be a factor that instills a crisis is a little bit of an exaggerated interpretation."

Marcelo Ebrard, foreign minister-designate and former Mexico City mayor

"[The cancellation] does have a political cost, but the mega airport was a factor of uncertainty. What we do know is that it was delayed and it was going to cost more than what was said."

PRIVATE SECTOR REPRESENTATIVES

Juan Pablo Castañon, president of business association CCE

"The message that they are giving to the citizens, international markets, companies and investors, is that you cannot trust that signed contracts will be respected."

Gustavo de Hoyos, president of Coparmex

"[The result of the consultation] is the product of a process lacking legitimacy and statistical validity."

Eduardo Ramírez, president of construction chamber CMIC

"We were estimating a growth rate of 2% this year, taking NAIM [the new airport] into account. Now we will possibly lose half of a percentage point."

BANKS

Citibanamex

"The decision implies a significant deterioration of the macroeconomic framework from here on out."

"What is perhaps more relevant, from a medium-term perspective, is the negative signal that this decision in particular sends to markets about the ways in which politics will be carried out under AMLO's government."

Eduardo Osuna, CEO of BBVA Bancomer

"We don't think it was a good decision. The currency rate increase, the effect of the total US$-denominated debt, and the increase in interest rates will offset any future savings that can come from replacing Texcoco with the other airports."

INTERNATIONAL ORGANIZATIONS

Alicia Bárcena, executive secretary of the Economic Commission for Latin America and the Caribbean (ECLAC)

"Mexico is becoming a very feasible country for investment; it is a country that welcomes the private sector. However, investors should have been prepared, as they knew that a change in government was going to take place and I think they should have taken that into account when assessing investment risks."

"We do not want things to continue as usual. We are against corruption and against those things that decrease confidence. I believe that saying that no more investments will be made in Mexico as a result of this decision is a little bit of an exaggeration."

THE PROJECT'S CONTRACTORS

None of the firms that have won contracts for the construction of the new airport released public statements immediately after AMLO's announcement.