"PPP was managing nearly 100 projects, surpassing our institutional and financial capacity. We have agreed to clean up the portfolio and define which initiatives we will concentrate on," Mexican foreign minister Patricia Espinosa was quoted as saying.
The five large-scale projects that survived the cuts are in the health, road, power, telecommunications and IT.
Diario de Xalapa reported that the decision will be officially announced at the next presidential summit in Tabasco state's Villahermosa on June 28.
PPP is an international initiative formally initiated in 2001, which is designed to accelerate integration and boost sustainable development between Mexico's nine southern and south-eastern states, which border Guatemala and Belize, and Central America.
Member countries in Central America include Colombia, Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama.
The initiative also includes Mexico's nine southern and southeastern states, which border Guatemala and Belize.