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Can Mexico's Farac programme survive?
02 March 2009
Mexico has introduced a raft of inducements to maintain
sponsor interest in the Farac roads programme. But matching the success of the first package will be difficult. By John Rumsey.
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[Editor's note: Shortly after this article was published, on 27 February, the Mexican transport and communications ministry decided to halt the Farac II sale. It said that neither of the two bids it received matched its minimum price expectations. However, its also said that the SCT, Fonadin and Banobras would continue to work on measures to increase bidder interest in the programme. The following article lists the issues that bidders have with the Farac sale process, their suggested improvements, not all of which the SCT has acted upon, and some of the structures that the SCT, Banobras and Fonadin might offer to refloat the sale process]
President Felipe Calderón has met Mexico's looming downturn with a western-style spending spree, promising to push Mexico's outlay on infrastructure development to 1.8% of GDP, with spending on roads, airports and sea ports of Ps570 billion ($39.5 billion) this year.
For 2009,...
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