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  REPORT - MEXICO Part one
 

CONCESSIONARY PROJECTS
Diversifying in Mexico

Aerial view of Phase 1 Mexico City Beltway

The new National Infrastructure Plan requires project development of which OHL is a proud protagonist

Mexico finds itself now in a unique but paradoxical moment. Only ten years ago there was a backlog of infrastructure projects to be undertaken but there were no funds to be found. Nowadays, cash abounds, but there is a noticeable shortage of projects. By projects, Alonso García Tamés, general manager of BANOBRAS, means “the identification of the problems and a solution that is bankable, fundable by the financial market.” Private companies like OHL are now stepping in to take full advantage and complement the new investment opportunities available. OHL is a Spanish-based concessionary firm whose core business is franchising basic infrastructure, transportation, and water treatment and desalination plants. The group is present in many countries around the world, but lately has focused mainly on the Brazilian and Mexican markets. Mexico is where OHL has diversified the most, opening its portfolio to new ventures in real estate and tourism.

2007 saw the opening of Mexico's first desalination plant in Baja California through OHL's subsidiary INIMA. More plants are in the pipeline for the extremely arid northern regions. This year also witnessed the first ever PGA tournament south of the U.S. border at the stylish Mayakobá Resort, which is OHL's first project outside of their core area. Along more traditional lines, the group is playing an important role in roads, airports and suburban public transport. OHL currently holds two concessions for major highways near the capital. Works on the Mexico City Beltway were started in 2004. Its total 142 kilometers are being built in four stages, of which the first has been completed. The 123 kilometers of the new Amozoc-Perote highway will pass through Puebla, Tlaxcala and Veracruz. OHL announced that they would like to eventually have a portfolio totaling 1,000 kilometers of roads in Mexico. Regarding airports, OHL is a major shareholder of the Toluca Airport and of the real estate company Fumisa that built the International Terminal at the Mexico City Airport. Toluca's airport, part of the Mexico City Metropolitan Airport System, is well-connected and is located just 30 minutes west from Mexico's newest business district, Santa Fe. As the capital's airport edges towards saturation, Toluca is one of the contenders to handle spillover air traffic.

“A country that has no modern infrastructure can never be adequately competitive”

OHL has also invested in Mexico's first suburban train. The 27-kilometer line with seven stations cost $500 million and will serve 100 million passengers yearly. OHL Mexico's CEO, José Andrés de Oteyza, is enthusiastic about these projects and asserts that they will help Mexico progress economically. "A country that has no modern infrastructure can never be adequately competitive," he states.

The Mexican Secretary of Communications and Transportation, Luis Téllez, said the newly elected administration plans to build 9,000 kilometers of highways, of which 89% will be privately funded. "What is making the road networks grow in Mexico is demand... as well as a needed increase in efficiency for exports and for the internal market," explains Dr. Téllez. Furthermore, airports around the country are being upgraded in an ongoing effort to modernize the system and raise the capacities to be able to handle the increase in air traffic. Other objectives the Secretary mentions as high-priority during the six-year term are fully connecting the country digitally.