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THEY EXPECT 6 TRILLION PESOS IN PRIVATE INVESTMENT FOR INFRASTRUCTURE

For 2025, the federal government allocated a public works budget of 542.328 billion pesos, a 10% decrease compared to the approved budget for 2024.

T21 Media by T21 Media
21 November, 2024
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During the current six-year term, private investment in infrastructure could reach six billion pesos, although it will depend on economic stability and the rule of law , the Mexican Chamber of the Construction Industry (CMIC)announced .

Luis Méndez, president of the organization, considered the participation of private initiative to be important for the construction of certain works, even through joint ventures .

He pointed out that of the total of these resources, 65% would be for construction, 20% for private civil engineering works and 15% for specialized works.

“We are estimating that we may be investing six billion pesos, one billion pesos per year, during this six-year period. It is important to say that of this billion, the percentage of this investment has a lot to do with civil works and construction,” he said at a press conference.

He said that in recent years, the injection of resources for infrastructure fluctuates between 61% private and 39% public.

He highlighted that the 2025 Budget Project of the government of Claudia Sheinbaum, President of Mexico, proposes a reduction of 18.1% in infrastructure investment compared to the last year of the previous six-year term.

“When we see a reduction, we could say that things are going badly. Although there is a good message when the SICT (Secretariat of Infrastructure, Communications and Transport) regains weight and important administration,” he said.

He mentioned that the federal government allocated a Public Works expenditure of 542 thousand 328 million pesos , which represents a decrease of 10% with respect to the budget approved in 2024.

Source: CMIC

He stressed that Petróleos Mexicanos (Pemex) continues to have the largest budget allocated, while in the Ministries of Health, Energy and Environment “more investment must be made.”

He mentioned that there are priority projects headed by SICT where only the priority projects have 140 billion pesos.

Source: CMIC

He said that spending for next year is based on social welfare with equity, strategic public investment, fiscal discipline with republican authority and simplification measures with greater operational efficiency.

However, Luis Méndez said that there is uncertainty about the economic issue , as well as the tax reform and the new United States government.

“We believe that the uncertainty generated by the reform of the Judicial Branch should be such a reform, only the allocation should be taken care of, so that the most capable people are there. Where there is no certainty and the economic levels are not positive, investment would definitely not arrive,” he said.

Comment and follow us on X: @evandeltoro / @GrupoT21

Tags: BUDGET 2025CMICGOVERNMENT OF MEXICOPublic WorksSICT

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