Mercury Rising 鳯女

Politics, life, and other things that matter

Mexico, 3/30/07: Public-Pirate Partnership

Posted by Charles II on March 30, 2007

From the MSN newsletter 

As part of the flurry of activity in the first hundred days of his presidency, Felipe Calderon announced the privatization of hundreds of miles of highway and private investment in new highway construction.  Many of the proposed highways were originally constructed with government funds, then privatized in the 1990s, only to be taken back by the government in 1997 at a cost of US$5.2 billion when private companies abandoned them.  Calderon will also award construction/management contracts for new highways.  The total package includes 2,900 miles of highway, with a total investment of US$320 million dollars.  Only a few national companies can invest at this level, which will open the door to foreign ownership of Mexico’s highways.  The highest tolls per mile in the world are found in Mexico, about four or five times typical tolls in the US.

In related news, the Inter-American Development Bank (BID) announced new loans worth US$2.5 billion for public/private partnerships dedicated to infrastructure development.  Some of the money will likely fund the construction of expensive highway projects, such as the proposed US$1.7 billion Durango-Mazatlan highway.  And some may fund a temporary work program announced by Calderon that will improve roads in rural communities.  The program is expected to generate 150,000 temporary jobs.

2 Responses to “Mexico, 3/30/07: Public-Pirate Partnership”

  1. Piratization, indeed.

  2. shrimplate said

    You guys know I’m on peak oil like wet paint on a bench. So I think this is such a great idea: build a bunch of highways just as oil starts its way down the depletion curve. The timing is just perfect.

    Perfectly bad. What, Mexico thinks it’s China?

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