asociacion publico

Public-Private Partnerships
for highways in Mexico
General Directorate of Road Development
Current situation
road infrastructure
 Public resources that the federal government in recent years has aimed at the
development of road infrastructure budgets have allowed major
 This investment is intended to maintenance programs, modernization and
construction of roads by the Ministry of Communication and Transportation
(SCT)
 In addition, the Scheme of Public-Private Partnerships has helped to finance
new highways
 SCT has put together three public-private partnership models that seek to
attract private capitals to highway investments
 The three models are:
 Highway concessions
 Private service contracts (PPP)
 Asset Utilization
Goals
road infrastructure
“Through its public-private partnership
scheme…
GROWTH
Optimize
operation and
maintenance
of toll roads
…SCT seeks!”
Better distribute
and manage
highway
project risks
GOALS
Development
road system
Increase
the amount
of investment
Add value
to services
Increase the
efficiency and
productivity
of public
service
Create new
opportunities
for the private
sector
Concessions Model
Public-Private Partnerships Scheme
“FOR HIGHWAYS IN MEXICO”
Main Characteristics
Concessions Model
 Concessions granted through public bids
 SCT provides final designs and rights of way
 SCT sets maximum average tolls and the rule for updating them
 The time of concession can be the maximum allowed by law (thirty years)
 The government provides an initial contribution of public funds paid through
National Infrastructure Fund (FNI), a trust in Banobras, a public development
bank
 The concession is awarded to the bidder who requests the lowest amount of
public funds, measured as the sum of the initial contribution and the net present
value of the minimum revenue guarantee
Main Characteristics
Concessions Model
 The government offers a minimum revenue guarantee to facilitate involvement
by private banks
 When projects do not require public funds, the concession is awarded to the
bidder who complies with the legal, technical and financial requirements of the
bid and offers the largest monetary amount to SCT
 Risk-sharing on issues of fortuitous events and force majeure through insurance
and a contingency fund established by FNI
 Ability to compensate the concessionaire invested capital in case of early
termination of the concession for reasons attributable to the concessionaire
“The current status, ... Under this model have been granted 18 concessions
with a length of 1,306 kilometers”
Private Service Contracts Model (ppp)
Public-Private Partnerships Scheme
“FOR HIGHWAYS IN MEXICO”
Main Characteristics
PPP Model
 A concession is awarded through a public bidding process which also grants to
the concessionaire the exclusive right to sign the service contract
 The duration of the service contract is fixed, from 15 to 30 years
 The contract establishes an association between the SCT and a private firm to
design, finance, build, maintain and operate a road
 The private firm provides services in exchange for periodic payments
 Periodic payments are based on availability of the road and its traffic levels
Main Characteristics
PPP Model
 Each bidder requests a periodic payment determined as a function of:
 Construction, maintenance and operating costs
 Rate of return on equity, including financial costs
 Estimated annual traffic
 Duration of contract
 The Net Present Value of periodic payments is the decision criterion used to
award the concession, provided that the winner complies with technical, legal
and financial requirements
 After construction, the modernized road continues operation as a toll-free road
 When the model is applied to a toll road, the periodic payment is made with a
combination of toll revenues and budgetary funds
“The current status, ... Under this model have been granted 7 concessions
with a length of 605 kilometers”
Asset Utilization Model
Public-Private Partnerships Scheme
“FOR HIGHWAYS IN MEXICO”
Main Characteristics
Asset Utilization Model
 The model considers the utilization of 23 highways of the Fonadin network to
support construction of 2,193.5 km of new roads, according to the following:
 SCT designs packages composed by existing toll roads in the Fonadin network and
roads to be built by the winning bidder
 SCT organizes public bids to transfer these packages to the private sector and
obtains resources to pay outstanding debts
 The winning bidder operates and maintains existing roads and builds, operates, and
maintains the new roads in the package
 The concessionaire is responsible to operate, maintain and operate the assets in
question and then build and operate new highways that are part of the package
“The current status, ... Under this model have been granted 3 packages
with a length of 1,200 kilometers”
Progress and Achievements
Public-Private Partnerships Scheme
“FOR HIGHWAYS IN MEXICO”
Awarded Concessions
Concessions Model
18 concessions, 7 ppp and 3 asset utilization
 Matehuala Bypass
 Mexicali Bypass
 Morelia-Salamanca
 Tepic-Villa Unión
 Tecpan Bypass
 Amozoc-Perote and Perote Bypass
 Northern Bypass of Mexico City
 Saltillo-Monterrey and Saltillo Bypass
 Arriaga-Ocozocoautla
 Reynosa-McAllen “Anzaldúas” International Bridge
 San Luís Río Colorado II International Bridge
 Río Bravo-Donna International Bridge
 Perote-Banderilla and Xalapa Bypass
 Irapuato Bypass
 Chihuahua Bypass
 Barranca Larga-Ventanilla
 La Piedad Bypass and
Access to Mexico-Guadalajara Highway
 Salamanca-Leon
PPP Model
 Irapuato-La Piedad
 Querétaro-Irapuato
 Tapachula-Talismán with branch to Ciudad Hidalgo
 Nuevo Necaxa-Tihuatlán
 Rioverde-Ciudad Valles
 Nueva Italia-Apatzingán
 Mitla-Junction Tehuantepec
Asset Utilization Model
 North Pacific (1 asset and 2 projects to development)
 Centre-West (4 assets and 4 projects to development)
 South Pacific (1 asset and 2 projects to development)
“28 awarded concessions…
investment of 6,819 million US dollars and 3,112 kilometers!”
Awarded Concessions
CONCEPT
28 concessions, 3,112 km and 6,819.6 million US dollars
TOTAL
CONCESSIONS
PPP
ASSET UTILIZATION
18
7
3
28
kilometers
1,306.7
605.1
1,200.9
3,112.7
investment
3,131.4
2,705.3
983.0
6,819.6
awarded
(million US dollars)
The offered in asset utilization…
has been of 4,133.7 million US dollars!
Bid in Progress
Public-Private Partnerships Scheme
“FOR HIGHWAYS IN MEXICO”
Bid in Progress Projects
1 asset utilization
Asset Utilization Model
 Michoacán Package
o
o
o
o
Pátzcuaro -Uruapan-Lázaro Cárdenas Highway,
Project Morelia Bypass,
Project Uruapan Bypass, and
Modernization Pátzcuaro -Uruapan
“1 package is bid in progress… with investment of
443.2 million US dollars and 417.5 kilometers!”
Bid in Progress Projects
CONCEPTO
1 bid in progress, 417 kilometers and 443 million US dollars
TOTAL
CONCESSIONS
PPP
ASSET UTILIZATION
bid in
progress
--
--
1
1
kilometers
--
--
417.5
417.5
Investment
--
--
443.2
443.2
(million US dollars)
Bid in Progress Projects
Package
MICHOACÁN
 Pátzcuaro-Uruapan-Lázaro Cárdenas Highway
of 272.2 km,
 Construction of Morelia Bypass
of 64.1 km and 182.4 million US dollars,
 Construction of Uruapan Bypass
25.2 km and 92.8 million US dollars
 Modernization Pátzcuaro-Uruapan
of 56 km and 168.0 million US dollars
asset utilization model
Conclusions
 Public-private partnerships are key to increase highway infrastructure
investment levels in Mexico
 The success of these partnerships is critical rigorous preparation and
implementation of projects
 SCT is convinced of the strategic importance of these schemes and invites
interested to maintain a dialogue on these
GENERAL DIRECTORATE OF ROAD DEVELOPMENT
www.sct.gob.mx/en/road-infrastructure/general-directorate-of-road-development/