Research - APRIL 24, 2014

Mexican reforms attract private infrastructure investors

by Drew Campbell

Recent reforms in Mexico should invite more private investment into the country’s energy and infrastructure markets, according to the report Spotlight on Reforms in Mexico by international law firm White & Case.

Government has been the traditional investor in many of Mexico’s industries, and even Mexican nationals have been kept out of the market, leading to “significant underinvestment in infrastructure,” White & Case notes. “Such demonstrable need, combined with proposed legislation allowing private investors to have a more prominent role in previously restricted sectors, have positioned these sectors as prime targets for international investment.”

The report highlights the Etileno XXI project — a $4.5 billion oil and gas plant with investment from the International Finance Corp. as well as six other multilateral and domestic financial institutions — as an example of the country’s new focus on embracing foreign investors.

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