A recently passed investment law for PPPs in Mexico should drive the infrastructure sector, and help it grow the country's economy.
Despite significant and ongoing gains in the past decade, the quality of Latin America’s infrastructure remains a serious challenge to achieving lasting growth. The region as a whole suffers from an infrastructure deficit that hampers it from taking advantage of its full potential.
Part of the challenge of developing the region’s infrastructure comes from the massive cost of the projects, a difficult burden for the budgets of developing economies. In recent years, public-private partnerships (PPPs), in which the government partners with the private sector to build up these projects have shown particular success.
One of the stars of PPPs has been Mexico, which passed a legal framework for PPPs in 2012, and which was the topic of a recent report by law firm White & Case: “Open for investment: How Mexico is paving the way for infrastructure investors.” The firm holds up Mexico’s PPP law as a model for the region, as it incorporates worldwide best practices, and shows particular excitement for its use in the wake of revolutionary reforms by the Enrique Peña Nieto administration, especially in the telecoms and energy sectors.
LBC spoke with two of the report’s authors – Someera Khokhar and Vicente Corta Fernández, both partners at the firm, about their enthusiasm for the reform, and to explore deeper insight on the new legislation’s ins and outs.
If the topic of infrastructure is of interest to you, be sure not to miss Latin Trade Group’s Trade Américas & ConnectAmericas Expo in Miami on September 3 and 4.