IP will have preference in cash flows with new mixed investment law in infrastructure: Édgar Amador
The new mixed investment law in Mexico will give private investors preferential treatment in cash flows, according to Édgar Amador.
In Mexico, a new initiative proposed by President Sheinbaum aims to encourage private investment in strategic infrastructure, notably through a mixed investment model. Édgar Amador, the Secretary of Finance, highlighted that this legislation will create an attractive environment for private investors by granting them preferred access to cash flows. This approach allows private firms to work alongside the public sector, alleviating some uncertainties associated with financing and partnership dynamics in large-scale projects.
During an interview, Amador expounded on the benefits for private companies, stating that while they will hold a minority stake in the capital, they would enjoy preferential treatment regarding the flow of revenues generated from these public-private partnerships. This preferential relationship with the public sector not only aids in simplifying the process of acquiring necessary permits but also boosts demand, thereby enhancing the overall feasibility of the infrastructure projects.
Additionally, Amador indicated that the collaboration with the government could potentially allow private firms to consolidate these projects into their financial statements, mitigating some of the financial risks typically involved in such investments. The initiative represents a strategic shift towards fostering a more symbiotic relationship between private investors and the government, with significant implications for future infrastructure development in Mexico.