Infrastructure Insight: Mexico

Infrastructure Insight: Mexico

Infrastructure Insight: Mexico

Summary

Mexico’s infrastructure industry is expected to continue to grow over the forecast period (2018-2022), despite uncertainty about the upcoming presidential elections and the potential economic impact of renegotiations of the North American Free Trade Agreement (NAFTA). The total value of the infrastructure construction market reached MXN1.1 trillion (US$58.1 billion) in 2017, according to the Infrastructure Intelligence Center (IIC) - up from MXN962.4 billion (US$50.8 billion) in 2012 - and will rise to MXN1.7 trillion (US$89.8 billion) in 2022 (in nominal value terms).

This growth is based on the assumption that a number of the large-scale projects move ahead as planned, including Mexico City’s New International Airport (NAIM), the Veracruz Port Expansion, the Toluca-Mexico City Rail Line, the Guadalajara Light Rail Line 3 and the Ticul 1 Photovoltaic Power Plant.Synopsis

The report provides a detailed analysis of the infrastructure sector in Mexico, including the state of current infrastructure, the regulatory and financing landscapes, forecast spending across all key sectors and the major projects in the construction pipeline.

The report covers all key infrastructure sectors: roads, railways, electricity and power, water and sewerage, communication, and airports and ports.

Key Highlights

The IIC is currently tracking 221 large-scale infrastructure construction projects in Mexico, at all stages of development from announcement to execution, with a total investment value of US$99.5 billion.

The electricity and power sector accounts for the largest share of the project pipeline, with a total project value of US$47.7 billion; this is followed by airports and other infrastructure, with a pipeline value of US$22.8 billion. The pipeline for railways projects amounts to US$11.4 billion, while for road projects it stands at US$9.3 billion. For water and sewerage infrastructure projects, it totals US$8.3 billion.

The public sector will directly fund nearly 62% of the overall infrastructure construction project pipeline, according to the IIC, with a further 15.6% being a mix of public and private funding mechanisms. The private sector will fund the remaining 22.7% of the pipeline, with much of this being related to projects in electricity and power.

Scope

• A concise analysis of the administrative, economic and political context for infrastructure in Mexico.
• An in-depth assessment of the current state of infrastructure in Mexico, including roads, railways, electricity and power, water and sewerage, communications, airports and ports.
• Five-year forecasts of construction output for each sector, and an analysis of the project pipelines, with details on all major projects, their funding mechanisms and leading contractors.
• A focus on main political and financial institutions involved in the infrastructure market, as well as the competitive and regulatory environment.

• Assess the current state of Mexico infrastructure, and the main drivers of investment, including the key institutions and financing methods.
• Investigate forecasts and gain an understanding of key trends in each of the main infrastructure sectors.
• Analyze the main project participants operating in each sector, to better understand the competitive environment.
• Identify top projects by sector, development stage and start date, to inform your expansion strategy.