Private sector pressure builds on López Obrador to present third package of infra projects

Mexican President Andrés Manuel López Obrador is coming under more pressure from the private sector to present the third package of infrastructure projects under the country’s national infrastructure program, originally expected in 2021. 

José Abugaber Andonie (pictured), head of one of Mexico’s biggest private sector associations Concamin, urged the president to release the package as soon as possible to maintain the sector’s interest in investing in the country.

Although the content of the package is still unknown, Abugaber said it involves investments focused on the Tehuantepec isthmus region, where López Obrador is building the 20bn-peso (some US$1bn) interoceanic corridor that will require new terminals at Oaxaca state’s Salina Cruz port on the Pacific and Veracruz state’s Coatzacoalcos port on the Gulf, in addition to 10 industrial parks along the 300km rail line. 

“We urgently need it to be announced, we understand that the president did not want to announce it before the elections, but the [mid-term] elections are over. We want it to be announced so that it helps the productive chains, this is going to generate development and growth,” Abugaber said during a press conference. 

Little by little, private sector leaders have unveiled some details of the third package, and what is known at the moment is that it will have at least 15 waterworks projects and 15 communications and transportation projects. It is also expected to include some energy proposals, all with private sector participation of at least 50%. 

“Finance minister Rogelio Ramírez de la O said it was going to be announced. We were with him a month and a half ago, I don’t understand the reasons why [it has not been announced]. The only thing we respectfully ask is that this package is announced for the good and development of the country,” Abugaber said. 

Francisco Cervantes Diaz, head of private sector association CCE, said he did not know the reasons for delaying the announcement further. He said he would ask López Obrador himself during the opening of the first stage of the Olmeca oil refinery on Friday. 

The first and second PNI packages, requiring private investments above 50% of the total, were presented in October and December 2020, respectively. Package one included 39 projects and the second 29 for a total of 526bn pesos (US$25.7bn).