Privatization - Mexico - Lower house calls for implementation of PPP regulations

By Rebecca Conan?/?Business News Americas

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Jos? Ram?n Martel, a lower house lawmaker from Mexico's PRI party, has called on the government to issue enabling regulations for the national public-private partnership (PPP) law, according to a PRI party release.

The PPP law was approved on January 16 and, according to its terms, enabling regulations must be passed within one year. Now, over seven months on, the regulations are nowhere in sight.

The "strange delay" in implementing the regulations is "having a high cost in terms of lost opportunities for the country," states the release.

Martel is not alone in this opinion. Luis Z?rate, president of the national construction chamber, CMIC, recently said that the delay in implementation could lead to a loss of 350bn pesos (US$26.7bn) in private sector investment this year.

Once the regulations are implemented, some 80% of projects are expected to be carried out under the PPP model, according to the release.

While this estimation is well above the 30% estimated by construction firm ICA's CEO Alonso Quintana, industry experts agree on the future importance of the law.

The PPP law is "the touchstone for the development of new infrastructure projects, an incentive for investment, creation of employment and economic growth," said Martel, but "a law without an enabling act helps nobody," Z?rate said.

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