Mexican funding access
By Steve Skinner22 June 2009
Banobras, the Mexican Development Bank, plans to grant MXN 65 billion (US$ 5 billion) in loans and financial guarantees for infrastructure projects. This additional funding is over and above the MXN 1.6 trillion (US$ 125 billion) already committed by the National Infrastructure programme for the period 2007 to 2012.
The funds will be available for all Mexican states and municipalities as well as for Public Private Partnership projects. Access to funds will be through regular Banobras banking operations or via the National Infrastructure Fund that was formed in 2008.
"The goal is to guarantee that the country's infrastructure plans are not delayed as a result of the global financial crisis," said Mario Beauregard of Banobras.
Mexico's National Infrastructure Fund aims to increase the funding for projects that either have a high social return but low financial returns or are perceived too risky by the private sector. "In combination with the fund, Banobras will guarantee financing for the winners of public tenders in cases where financing from commercial banks is insufficient," confirmed Mr Beauregard.