Mexico’s Yucatan Seeks PPPs

Mexico’s Yucatan is looking for investment after a law passed in August approving public private partnerships (PPPs), the state’s head of public works Francisco Torres tells LatinFinance. A high-speed train in the Yucatan Peninsula, 2 hospitals and 2 museums are some of the proposed PPPs. The high-speed train would be funded by the Fonadin national infrastructure fund, federal and state money, as well as private investment. “This will make a huge economic, social and touristic impact on the region,” adds Torres. He estimates the cost at MXP18bn, and says studies that it is a financially viable project have already been done, with contracts out to tender in Q2 2011. The line will join Merida to Progreso, Merida to Valladolid, Izamal and Chichen Itza, and Valladolid to Calica. It is estimated that one of the museums will cost MXP3.5bn-MXP4.0bn, and by the end of the year contracts will be out to tender, with the project expected to be completed by the end of 2011. The 2 hospitals will cost MXP3.5bn in total, with contracts out to tender in Q1 of 2011, and the project is expected to start in August 2011. “This private investment will allow projects to be finished in one phase,” says Torres. “It will allow projects to be completed that we would otherwise not have the resources for and this will also create better infrastructure and jobs,” he adds. Public projects currently underway, which have had federal and state investment, include motorways, which Torres expects to be completed by 2012. He adds that they do not have major financing needs. A new ministry of public security is also planned. This has already had MXP400m of investment and a further MXP105m, with completion expected in 2011.