CONSTRUCTION OF THE MAYAN RAILROAD
On December 16, 2018, Mexican President, Andrés Manuel López Obrador began activities related to the construction of one of the biggest infrastructure projects he has announced to be developed during his administration, the 1,525km (950-mile) Mayan Railroad, same that will link key tourism cities in the Yucatan peninsula such as Palenque and Cancún among others and expected to be completed in four years.
As announced by Mexico´s President, most of the investment to carry out this project is expected to come from private companies.
Tender calls to develop the first four sections are expected to be released within the following 2 months. Each section with an approximately cost of between $15.0 and $18.0 billion pesos (approximately USD $737.8 million and USD $885.3 million).
The total investment for this project is estimated in between $120 billion pesos and $150 billion pesos Additionally, federal government expects to grant three different types of concessions for this project, specifically for three different types of trains, touristic, load and passengers.
Mr. López Obrador has formally call the private sector for its participation in this project, one of the most important ones expected to be developed during his administration.
The Federal Government expects to grant an incentive to private parties developing the project per constructed kilometer.
Withthis project Mexican President seeks to promote and strengthen the developmentof the southeast Mexican region since such project would include the MexicanStates of Tabasco, Chiapas, Campeche, Yucatán and Quintana Roo.
The lawyers of the energy, mining and infrastructure area as well as the transportationone at firm are available for any questions or comments on the above.
SINCERELY
Juan Carlos Serra
serra@basham.com.mx
Jorge Eduardo Escobedo Montaño
Jorge Cobos Franco
Jorge Campuzano
Ricardo Lan
Mexico City, December 18th, 2018
