- Issuance of the National Infrastructure Program by the Mexico Federal Government
- May 9, 2014 | Authors: Juan Manuel González Bernal; Cecilia Quintanilla; Pedro Javier Reséndez Bocanegra; Rodrigo Piñeiro Villanueva
- Law Firm: Greenberg Traurig, S.C. - Mexico, D.F. Office
This GT Alert describes some of the most relevant aspects concerning Mexico's National Infrastructure Program published in the Federal Official Gazette on April 29, 2014 (the PNI).
According to the National Democratic Planning System and the National Development Plan published on May 20, 2013, the Federal Government created the National Infrastructure Plan (PNI) which contains the infrastructure development plan and a long term vision based on three axis: i) equilibrated regional development, ii) urban development and iii) logistics connectivity. The aforementioned focuses on three principal national infrastructure sectors; telecomm and transportation, energy, hydraulic infrastructure health and housing.
For more information about the PNI please click the following link:
Below is a summary and the most important projects included in the PNI:
1. Telecomm and Transportation
Consolidation of main highway networks with an average speed of a least 90 km/hr. Build railroad bypasses aimed to increase the efficiency of loading trains, have two complementary systems with four international class ports to strengthen the port system’s capacity and foster merchant fleet’s development, shipping along national ports and short sea shipping.
46 new high speed highways will be built and will add a total of 2,772 km to the Federal Toll Highways Network. The most relevant highway projects that have already started or will begin shortly include; Atizapán-Atlacomulco ($5,860 MM MXN, 2014-2016), Tenango-Malinalco-Alpuyeca ($3,294 MM MXN, 2015-2018), Nuevo Necaxa-Tihuatlán ($2,730 MM MXN, 2008-2014), Tuxpan-Tampico ($8,070 MM MXN, 2013-2018), Acayucan-La Ventosa ($1,456 MM MXN, 2007-2016), Cardel-Poza Rica ($4,068 MM MXN, 2014-2017), Oaxaca-Istmo ($9,180 MM MXN, 2013-2016), Oaxaca-Puerto Escondido ($4,531 MM MXN, 2012-2015) and Jala-Compostela-Bahía de Banderas ($2,616 MM MXN, 2011-2017).
1.2 Ports and Maritime Terminals
On Ports, the operation and extension of wharfs or maritime container terminals will be carried out, the most relevant include the following: Public wharf for containers and cargo in Tuxpan ($4,938 MM MXN, 2013-2018), Altamira Port Extension ($10,700 MM MXN, 2013-2018), Specialized Container Terminal II in Manzanillo ($2,587 MM MXN), Specialized Container Terminal II in Lázaro Cárdenas ($5,795 MM MXN) and modernization of the Mazatlán Port ($10,667 MM MXN, 2013-2018).
1.3 Trains and Railways
In trains and railways, the following projects are included; Express train Querétaro-Cd. De México ($43,580 MM MXN, 2014-2017); Interurban Train México-Toluca first stage ($38,608 MM MXN, 2014-2017); Transpeninsular Train first stage ($17,954 MM MXN, 2014-2017); and Electric Urban Train extension in Guadalajara’s Metropolitan zone ($17,954 MM MXN).
The actions of the telecommunications sector include the full coverage of broadband, construction of space launch platforms of Mexican technology which will reduce the space access costs for Mexico. The main telecomm projects are: Expansion of the fiber optic backbone ($9,750 MM MXN, 2014), Installation of the shared mobile services network ($130,000 MM MXN, 2014-2018), “Connected Mexico Project” which promotes the universal access to Internet ($18,600 MM MXN, 2013-2018), Satellite System “Mexsat” ($8,217 MM MXN, 2013-2018), Cross-Strategy “South-Southeast”, aimed to bring access to remote communities to markets and services and facilitate moving of goods by region ($163,324 MM MXN).
One of the objectives of the PNI is to have an optimal infrastructure development in order to have enough energy, quality and competitive prices. The aforementioned, expands and develops existing infrastructure for the exploration and extraction of hydrocarbons, implements best practices for managing the decline of fields, develops seismic studies and conducting bidding rounds for the allocation of areas for exploration and extraction.
In terms of hydrocarbons, the principal investment projects are: Cantarell, construction of gas capturing infrastructure ($233,179.1 MM MXN, 2013-2018), Ku-Maloop-Zaap, operation and maintenance of production wells and drilling of new wells ($247,945.5 MM MXN, 2013-2018), Cuenca de Burgos, exploration and maintenance of wells to increase the gas reserves, construction of gas pipelines ($50, 870 MM MXN 2013-2018), Antonio J. Bermúdez, wells operation and maintenance project and modernization of the existent infrastructure (77,290 MM MXN 2002-2032), Chuc, wells operation and maintenance of crude oil producers ($100,984 MM MXN, 2013-2018), Tsimin-Xux, drilling and recovery of exploratory wells ($102,725 MM MXN, 2013-2018), Crudo Ligero Marino, operation and maintenance of producing wells ($69,572 MM MXN, 2014-2018), Área de Perdido, exploration and drilling ($64,769 MM MXN, 2013-2017) y Aceite Terciario del Golfo, operation and maintenance of producing wells and drilling and development of new wells ($78,070 MM MXN, 2013-2018).
2.2 Electric Power
In regards to electric power generation, the most relevant projects are the following natural gas-fired, hydro-power, solar-power, wind-power and geothermal:
i) gas pipelines construction: Mérida-Cancún 300km ($5,999 MM MXN), Jaltipan-Salina Cruz 247 km (8,333 MM MXN), Lázaro Cardenas-Acapulco 300km (5,908 MM MXN), Salina Cruz-Tapachula 440 km ($5,728 MM MXN); ii) combined-cycle power plants construction: CC Escobedo 1,006 MW ($18,629 MM MXN 2015-2017), Norte IV Lerdo 957 MW ($11,000 MM MXN, 2015-2018), Topolobambo II 820 MW ($13,655 MM MXN, 2015-2018), Norte III 928 MW ($12,985 MM MXN); iii) hydro-power plants construction: Nuevo Guerrero 455 MW ($14,227 MM MXN), Paso de la Reina 543 MW ($15,408 MM MXN), Las Cruces 240 MW ($10,250 MM MXN); iv) wind-power plants construction: Sureste II, III, IVand V which together account for 1,169 MW ($25,955 MM MXN); v) solar-power plants construction: 14 new solar-power plants in North Mexico which together account for 420 MW ($12,378 MM MXN); and vi) geothermal plants construction: Los Azufres Phase I and II and Cerrito Colorado Phase I, which together account for 80MW (1,943 MM MXN).
3. Hydraulic Infrastructure
The infrastructure hydraulic works can be summarized in three branches, drinking water infrastructure, sewage and waste-water treatment. While the first two are within acceptable standards, the waste-water treatment has major challenges. Additionally, there are substantial differences between the urban and rural coverage within these three branches. The most important hydraulic infrastructure works to be carried out are; Túnel General Central Region, 8km ($1,381 MM MXN, 2014-2017); Parallel Aqueduct Guadalupe Victoria North Region, 55 km and construction of a water treatment facility ($1,222 MM MXN, 2014-2016); Túnel Emisor Poniente II Center Region, 5.5 km ($2,228 MM MXN, 2014-2017); Purgatorio-Arcediano System Center Region, consisting in construction of a dam, a pumping station and a conducting line of 18.7 km ($6,788 MM MXN, 2013-2016); Túnel Emisor Oriente Center Region, construction of a 7 m diameter tunnel for rain water and residual water drainage 62 km ($37,465 MM MXN, 2008-2018); construction of “Centenario Nayarit” Central, consisting in the construction of a 58.6 km canal and secondary canal network of 319.7 km ($6,874 MM MXN, 2014-2017); and Waste-Water Treatment Plant Atotonilco Center Region, with a total capacity of m³/s (dry season) and 35 m³/s (rainy season) ($9,564 MM MXN, 2009-2015).
Health Sector challenges focus on the better use of resources between health providers and broaden the health services coverage, integral project financing (construction, operation, update and maintenance). The main changes in terms of health infrastructure consist in the following: foster investment in infrastructure maintenance and rehabilitation programs of health equipment. The main investment projects in health include: New Hospitalization Facility at the National Institute of Cancerology located in Mexico City ($2,378 MM MXN 2011-2014); General Hospital of Mexico located in Mexico City, maintenance of the existing infrastructure ($2,153 MM MXN, 2011-2015); New Institute of Epidemiological Diagnosis Reference (InDRE), construction of two buildings, plaza and parking lot ($1,311 MM MXN, 2008-2013); and New ISSSTE’s secondary level General Hospital located in Mexico City ($1,808.3 MM MXN, 2015-2017). Concerning the Cross-Strategy South-Southeast, the Federal Government has as a main goal to build five general hospitals, four specialty hospitals, two hospital-clinics and two clinics in Guerrero, Oaxaca, Chiapas, Veracruz, Quintana Roo and Yucatán, representing a total investment of $7000 MM MXN.