Farac III to Feature Less Greenfield

The second road concession from Mexico’s Fonadin infrastructure fund – commonly known in the market as the Farac III package – will feature a smaller portion of greenfield roads than its predecessor. “The third [Farac, or second Foandin] package will be in between the first two,” in terms of the amount of new build required, Fonadin director Federico Patino tells LatinFinance. He declined to estimate the exact percentage. The government expects to officially announce the concession, containing roads in the northeastern states of Tamaulipas and Nuevo Leon, in the fourth quarter. The official says the amount of greenfield versus brownfield for the approximately six concessions was planned in advance, and the third package’s total was not influenced by the success of the first two. The second “Pacific” package incorporates three existing roads and five new projects to be constructed.