The Infrastructure Master Plan

As part of our MEXICO’S MUSCLE: REVEALING THE STRENGTH project,

Country Strategic will host the first in a series of forums with media partner Foreign Affairs in the second half of January 2014 in New York. The one-day forum, Needs and Opportunities in Infrastructure 2014. will feature presentations—focusing on the ambitious projects and goals in Mexico’s transportation and telecoms sectors—

from high-level government officials, bankers, and leaders in the business community. With an exclusive networking luncheon and the opportunity to meet government representatives and private sector leaders one-on-one, there is no better way to find out more about the myriad opportunities for investment and involvement in Mexico’s infrastructure master plan.

For more go to www.countrystrategic.com.

oreign investors already know all about Mexico’s en-viable geographic location, but to make the most of

its strategic advantages and meet economic growth goals, the nation now needs to develop modern infrastructure with the capacity to efficiently handle domestic demand and enable Mexico to compete on the global stage.

According to the Economic Commission for Latin America and the Caribbean (ECLAC), improving economic develop-ment and competitiveness depends on investment in human capital, infrastructure, machinery, and technology. Recog-nizing the importance of these factors, on July 15, Presi-dent Enrique Peña Nieto launched the Transport and Communications Infrastruc-ture Investment Program 2013–2018, which aims to secure the financing for his ambitious master plan to transform Mexico into a hub for value-added logistics and transportation.

Gerardo Ruiz Esparza, head of Mexico’s Secretar-iat of Communications and Transport (SCT), and his staff are responsible for the fulfillment of more than 100 of the government’s commitments, in addition to a raft of other strategic projects: “The SCT’s job is to provide transport in-

frastructure that makes the movement of products, services, and people easier, in a fast, efficient, and low-cost manner,” he explains.

The administration’s wide-ranging program involves the development of an enhanced national network of highways and roads, in addition to several other transportation and telecommunication projects, set to turn Mexico into a global logistics platform. Most of this investment is expected to come from public-private partnerships (PPPs), worth in ex-cess of US$100 billion.

The roster of projects for development includes 60 new roads (15 toll roads, 29 freeways, and 16 rural roads); three passenger railroads; seven ports; seven airports; and major improvements to the telecommunications system, boosted by the launch of two new satellites. Raúl Murrieta Cummings, the SCT’s under-secretary for infrastructure confirms that the roads budget over the six years of the administration, will be 36

percent higher than under the previous government: “It is one of the most important levers of the economy,” he insists.

Although the full scope of Mexico’s National Infrastructure

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MEXICO'S MUSCLEREVEALING THE

STRENGTH

The Peña Nieto administration’s 2013–2018 NIP is

expected to include some 500 projects nation-wide,

whereas the former government’s plan covered around 300

The Needs and Opportunities in Infrastructure forum, organized by Country Strategic in January

2014, includes two panels of particular relevance to all those interested in playing a part in the development of Mexico’s transportation networks: “Projects and Challenges in Infrastructure, Transport, and Logistics” and “Objectives Achieved and Goals to be Developed in the Field of Motorway Infrastructure”.Officials from the Secretariat of Communications and Transport will be joined by Mexican experts and representatives from the Council on Foreign Relations to discuss the country’s flagship projects and where the country’s motorway plans lead next.

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Program (NIP) has yet to be revealed, it aims to encompass every infrastructure sector, including oil and gas, water, and energy networks. The government’s energy reform proposal is currently pending approval, but is expected to generate a new surge in foreign investment. Meanwhile, telecoms reforms, approved in June, have already laid the way for a more liberal, competitive framework, opening up opportunities for foreign and national firms.

Projects envisaged by the NIP will be funded via a variety of financial providers, including Fondo Nacional de Infraestructura (FONADIN, Mexico’s National Infrastructure Fund) and Banco Nacional de Obras y Servicios Públicos (BANOBRAS, the National Works and Public Services Bank), as well as through PPPs and other sources.

To date, in terms of volume and value, highways have been Mexico’s most successful infrastructure developments. Ports, airports, public transportation, water networks, and rural access were among the areas where the previous government focused its efforts, while interest in the rail sector is expected to increase in the coming years. Mexico’s goal for 2030 is to rank in the top 20 percent of the World Economic Forum’s Infrastructure Competitiveness Index.

A measure of the Peña Nieto administration’s ambitions is that the 2013-18 NIP is expected to include some 500 projects nationwide, whereas the former government’s plan covered around 300. Aside from the hardware required to improve transportation and sanitation networks, the new program also encompasses projects aimed at preserving Mexico’s natural environment and biodiversity.

The sectors with the greatest potential for growth and investment are energy, including electricity, oil, gas, geothermal and biomass; telecoms, including cellular and broadband networks; transportation and aviation, including roads, railroads, port infrastructure, public transportation, and logistics services at the nation’s airports; and environmental technology, especially in water and sanitation.

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uring the six-year adminis-tration of Mexico’s previ-

ous president, Felipe Calderón, public and private-sector investment in the country’s transportation infrastruc-ture grew significantly. For example, more than 12,000 miles of the national road system, including freeways, toll ways, and rural roads, were upgraded, expanded, and overhauled, taking the percentage of those that meet interna-tional standards to 90 percent.

Numerous large-scale projects, how-ever, still need to be developed to carry people and products across the country, filling in gaps in Mexi-co’s transporta-tion networks and making new connections to overseas markets. States such as Jalisco, Michoacán, Oaxaca, Puebla, Querétaro, Tlax-cala, Veracruz, and the State of Mexico (known as Edomex) are well positioned to receive a sizable share of the capital expenditure slated to take place during the coming years, under Enrique Peña Nieto’s management.

Over the last decade, Mexico’s ports underwent a comprehensive moderniza-tion process that has enabled them to significantly increase cargo movements. Although many were affected by the global economic crisis, Mexico’s econom-ic recovery has already restarted devel-opment at some flagship projects.

The federal government continues to promote port development as an inte-gral part of its effort to improve logis-tics efficiency and respond to increas-ing demand from international trade. Among the major projects scheduled for development in the next few years are the expansion of the Port of Vera-cruz and the construction of new fa-cilities at Lázaro Cárdenas, Manzanillo,

Altamira, Dos Bocas, and Tampico.In April 2013, Mexico’s Secretariat

of Communications and Transport an-nounced an investment of more than US$860 million at Lázaro Cárdenas Port, in Michoacán, where it expects an addi-tional 9,800 jobs to be created. The goal is to transform Lázaro Cárdenas into a world-class facility that contributes to the government’s objective to develop a second port on the Pacific that rivals Manzanillo, the nation’s busiest.

According to Secretary Gerardo Ruiz

Esparza, Mexico has to develop ports that can compete globally. To manage the demands of modern transportation, products need to be handled efficiently and cost-effectively from production centers in the hinterland to maritime terminals and, from there, to their point of consumption.

For Guillermo Ruiz de Teresa, the general coordinator of the nation’s ports and merchant marinas, “[ongoing] investments are the result of private companies’ confidence in Mexico’s legal guarantees.”

Mexico’s railroads have fast become a focus for international interest, with network expansion of close to 900 miles on the drawing board and plans to develop new, suburban rail projects near the capital, Mexico City. According to the Mexican Railroads Association, the Peña Nieto administration will invest in infrastructure to increase cargo traffic and promote passenger rail networks to help

relieve traffic congestion in major cities.New lines are planned throughout

Mexico, with three to be developed around the capital’s metropolitan area, as well as passenger services to Gua-dalajara from Jalisco to Aguascalientes. The government’s plans also call for the addition of new, multimodal corridors across the network and for upgrading work at U.S.-Mexico border crossings.

The Kansas City Southern Mexico (KCSM) company is well positioned to participate in the proposed Mexico

City-Querétaro and Mexico City-Toluca high-speed passenger rail projects. KCSM already manages more than 2,260 miles of railroad, transporting al-most a third of the country’s cargo by train, according to the General Di-rectorate of Rail and Multimodal Transport (DGT-

FM, in Spanish), which falls under the pur-view of the SCT.

To make the most of Mexico’s loca-tion and develop a world-class logistics platform, all infrastructure sectors have to work harmoniously, José Zozaya Delano, president of KSCM, believes: “The capacity of the country’s ports not only depends on the number of containers they can handle, but also on the efficiency of roads and rail-ways that allow onward movement of that cargo,” he insists.

Public mass-transportation projects in Mexico are overseen by the federal government when routes cross state borders or use national, inter-city roads, although urban transportation projects are the responsibility of each of the 31 states and the federal district, respectively. Many states are currently hard at work modernizing their transportation systems, creating multiple opportunities for product and service suppliers from overseas.

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exico’s aviation industry has undergone a transformation

over the last couple of years. The fortunes of Aeroméxico, the national flag carrier, and low-cost airlines like Interjet and Volaris have soared, as they made the most of Mexicana de Aviación’s demise to open up new routes and respond to increasing demand. Last year was one of consolidation for the sector, bolstered by strong tourism results, and hopes are high for postive results in 2013, in both the passenger and cargo transportation segments.

In terms of infrastructure on the ground, the Peña Nieto administration has announced plans to undertake seven airport projects during its six-year ad-ministration. Details have yet to be final-ized, meaning previous projects, such as a new international airport for Mexico City, could also be included. At the same time, private-sector concession holders, including ASUR, GAP, and OMA, work-ing with the state Airports and Auxiliary Services (ASA, in Spanish) agency, have developed programs to upgrade ground-support systems and technology.

Javier García Bejos, the CEO of Toluca International Airport (TIA), which currently serves the capital and acts as a hub for national low-cost carriers, is a firm supporter of President Peña Nieto’s aggressive development program: “Infrastructure will move Mexico in the next few years,” he notes. “Growth and

development will be the only good strategy to fight against poverty and inequality.”

García Bejos believes the federal gov-ernment’s strategic vision is the right one and, as a result, expects a positive outcome in the short term. He under-lines the importance of pursuing growth across all transportation sectors, including railroads and ports as well as aerial connectivity. The challenge of effectively implement-ing the strategy, he maintains, will depend on how it is put into prac-

tice, in terms of securing financing, for example.

In this sense, García Bejos main-tains legislation concerning public-private partnerships will be vital to achieve more sustainable growth, as it aligns the government’s and investors’ goals. He suggests the government not limit its planning to the next six years, but have “a vision for the next fifteen or, even, one hundred years,” taking into ac-count what the country needs in the long term.

Regarding the public debate about whether the over-saturated Mexico City International Airport needs replacing, García Bejos, un-surprisingly, advocates for making more use of existing infrastructure. Improvements may be required to comply with safety regulations, but

TIA’s CEO insists that Toluca is up to the task of dealing with saturation problems. A public-private partnership, Toluca’s short-term challenge is now to become a world-class airport and a “good, viable and efficient option” for airlines and pas-sengers, he concludes.

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RE�UNCHING AVIATION

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n June 10, 2013, Enrique Peña Nieto’s government passed

Mexico’s sweeping Telecommunications and Economic Competition Reform (TECR), having secured approval from Congress, the Senate, and the majority of the states. The vision behind the reform dates to the early 1990s, when the authorities began to open the sector up to private investment. Now, two decades on, the TECR has reinforced regulation of the telecoms and broad-casting industries, and aims to boost compe-tition with a new wave of foreign investment. Branded the most am-bitious economic re-form agenda in a gen-eration, it puts an end to the private-sector telecom monopoly headed by mogul Carlos Slim and Tele-visa, the broadcasting titan. Slim’s America Movil controlled 70 percent of the cellular market and Televisa, reigned over more than 60 percent of free-to-air broadcasting.

Gerardo Ruíz Esparza, Mexico’s secre-tary of Communications and Transport, considers the reform one of the most im-portant accomplishments, to date, of the Pact for Mexico, the multi-party agreement on national objectives signed on the first day of President Peña Nieto’s administra-tion: “The TECR will bring about economic

progress and increase competitiveness, reflected in reduced rates, quality services, and better content,” he insists.

Thus far, the sector’s reaction has been very encouraging. According to José Igna-cio Peralta Sánchez, under-secretary of communications at the SCT: “The con-stitutional reform opens up expectations and interest for national and foreign in-

vestment to the value of US$52.5 billion.”The transition to terrestrial digital

television (TDT) is also expected to draw investment of over US$1.4 billion, with the government contributing 50 percent and the remainder coming from public-private partnerships. Following the launch of the Investment Program for Transport and Communications 2013–2018, this July, Peralta Sánchez noted that the reform sought to create conditions

to stimulate investment in Mexico.Mexico has identified information and

communications technologies (ICT) as key to its transition to a knowledge-based economy. During the former government, beginning in 2007, the telecoms plan pro-moted strategies to boost investment in the sector, enhance competition, and increase access. Numerous concessions

have been awarded for basic and public telephony (mostly for national and interna-tional long-distance services), satellite communications, di-rect-to-home (DTH) television, and triple-play services, among others. At the same time, on the radio-electric spectrum, new radio, TV, and TDT licenses have been granted.

Social programs have targeted rural, low-income commu-

nities, improving access to voice and data services. The national satellite system has expanded, thanks to two new cellular com-munications satellites, another for landlines, and two control centers, built under a deal between the SCT and Boeing Satellite Sys-tems International. President Peña Nieto’s administration is committed to bridging the digital gap to benefit all of Mexico’s people via enhanced communications and universal broadband access.

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Some of the most in-demand sessions at Country Strategic’s forum on the Needs and Opportunities

in Infrastructure 2014 will be the presentation of some of Mexico’s flagship infrastructure projects for the next few years, including major developments in the aviation, maritime, and land transportation sectors.Among the projects to be showcased at the forum are the Peña Nieto government’s ambitious plans for a private rail consortium Ferromex; Toluca International Airport; Yucatán Transpeninsular Transports (TTY); and the port development programs at Guay-mas, Lázaro Cárdenas, Manzanillo, and Veracruz; as well as the administration’s program for the nation’s roads and highways.

The “Importance of the Telecommunications Re-form and Its National Implications” panel, will focus

on the transition to digital communications, innovation, and leadership in the Mexican communications marketplace.Top communications representatives from the Secretar-iat of Communications and Transport (SCT), will pres-ent regional projects set to change the role of states and municipalities, and representatives from major players, such as Telefónica México, Axtel, Megacable, Nextel, and Alestra, will all be participating.

Don’t miss a unique opportunity to make new connections in Mexico’s telecoms sector.

Telefónica México is part of the mul-tinational Telefónica group that serves 317 million customers worldwide, with nearly 215 million in Latin America and more than 20.5 million in Mexico as of June 2013. A truly global telco, Telefóni-ca is Europe’s first-ranked integrated operator and provides consumers and businesses with class-leading communi-cations, information, and entertainment services under its Movistar brand.

To date, Telefónica business in Mexico has focused on wireless operations, ac-cording to Paco Gil Díaz, Telefónica México’s chairman, and it is soon plan-ning to introduce a joint-venture, low-cost smartphone, with Firefox, to the national market. At the same time, the company has begun to roll out fixed-line services and cutting-edge Internet connections, offering “extremely high” speeds without the need for cabling, in anticipation of a more liberal market-place in the near future.

Regarding the recent changes in the industry, Gil Díaz is resolutely positive about prospects and believes “the Tele-communications and Economic Com-petition Reform (TECR) touches all the elements needed to break up non-competitive practices in the market, thus challenging the problems created by unfair competition and which are im-perative to bring about change.”

In addition, Gil Díaz applauds the cre-ation of two new regulatory bodies: the Federal Telecommunications Institute (IFETEL)—which will be formed by three independent institutions (Mex-ico’s Educational Institute, National Institute of Statistics and Geography [INEGI], and the Central Bank)—and the Federal Commission on Economic Competition.

For Gil Díaz, the TECR will help pro-vide “better physical access [and] better competitive conditions in general. All the existing firms will benefit and, natu-rally, we will expect to welcome new-comers to the market.”

A 100-percent Mexican-owned company, Alestra has been involved in the telecoms in-dustry for over a decade and a half and, since 2007, has evolved to become an innovative player in the information technology sector. It invests over US$75 million annually in its latest-generation solutions, providing business clients with a variety of value-added services via its 10,500-mile fiber-optic network. Its CEO, Rolando Zubirán Shetler, welcomes the new TECR with open arms: “We are coming from a law that was obsolete and that had been shown to be uncompetitive,” he notes. For Alestra, the new framework represents “an effective telecommunications and media law that will foster competition. It will take time, but with trust and good ex-amples, it will work in the medium term.”

AXTEL is Mexico’s second largest fixed-line telecom provider, with a 10-percent mar-ket share. It operates the country’s fastest broadband and most advanced pay-television services, via its 200MB symmetric fiber-optic offer to residential customers. For business and government customers, AXTEL offers the most advanced suit of ICT solutions, like infrastructure as a service, cloud collaboration, managed services, security solutions, and tra-ditional telecom services supported by a car-rier-class infrastructure and certified field and remote services. Its state-of-the-art network offers its clients tailor-made solutions.Over the last three years, AXTEL reinvested 25 percent of its earnings into network and technology improvements, 10 points above the industry average, positioning itself as a global leader in research and development. Its founder and CEO, Tomás Milmo San-tos, believes the Telecommunications and Competition Reform (“TECR”) will level the playing field in the industry, but, in light of its lengthy gestation, it could take some time to see the benefits for consumers and the

industry itself that the government expects. He, nevertheless, is optimistic about the work done, to date, by the new government and political parties represented in Congress, noting they are “determined to retake con-trol of the legal framework to make a much more balanced industry.”

The changes to the law also mean Mexican operators can be controlled by international investors to accelerate development and competition in the industry.

AXTEL’s CEO highlights the government’s intention to stimulate competition and insists IFETEL will be free from the influence of spe-cial interests: “We expect its members to be independent to bring benefits for Mexico and the majority of consumers,” he mentioned. “If the reforms in the Pact for Mexico happen as planned, you will have a hard time finding a country as attractive to invest in as Mexico.”

With more than 30 years of experience, Megacable has grown to become Mexico’s largest cable operator and a fast-expanding data and voice service provider. Today, it provides television to 2.1 million subscrib-ers, Internet to 880,000, and telephony to 570,000 customers in 280 locations across 25 states. Driven by competitive pricing and market-leading speeds, its Internet business has grown quickly, registering a 21 percent annual jump in Q1 2013. Enrique Yamuni, Megacable’s general director, confirms that “for a medium-size telecommu-nications player, like us, [and] the country as a whole, the benefits of TECR are consider-able.” Among these, he identifies aspects such as the “must carry, must offer” rule and new opportunities for content development. In a country like Mexico, with huge players includ-ing América Móvil, Televisa, and Azteca, “reg-ulations that level the field concerning compe-tition are always a good thing,” he says. For Yamuni, measures to limit market share will lead to growth for companies like Mega-cable, while the entry of virtual telephony operators represents a significant opportu-nity: “The law will consolidate local service areas and allow a proliferation of virtual op-erators in the mobile niche,” he foresees.

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exico has an historic opportunity to carry out a profound national transformation that triggers

[our] development during the next few decades,” President En-rique Peña Nieto said this July, at the launch of the Investment Program for Transports and Communications 2013–2018. “Qual-ity infrastructure in the communications and transport sectors is fundamental to a modern, sustain-able Mexico.”

The key to making his admin-istration’s ambi-tious infrastruc-ture plans a reality depends on the nation’s ability to secure more than US$160 billion in financing during his six-year term in office. The good news is that, following the gov-ernment’s reform drive in its first 12 months in power, 2013 could be the year Mexico leaps ahead of other emerging markets to fulfill its potential as a global invest-ment destination.

Traditionally, the funding required for infrastructure development came from state-owned institutions like Banobras, the National Bank of Public Works and Services. Having served as Mexico’s de-velopment bank for more than 75 years, Banobras will continue to play an important role in the future, according to its managing director, Alfredo del Mazo Maza.

“The bank’s objective is to work together with the commercial banking sector in infrastructure projects and provide support to federal entities,” Del Mazo Maza explains. With a loan portfolio worth over US$17 billion, Banobras is Mexico’s fifth-largest financial institution and is participating in 185 of the 266 commitments made by President Peña Nieto during his election campaign.

Banobras leads Mexico’s development banking system, which is providing some of the financial muscle to fund the administra-tion’s planned infrastructure developments, along with the top-six commercial banks: BBVA-Bancomer, Banamex (Citigroup), Banorte-Ixe, Santander México, HSBC México, and Inbursa.

Also paving the way for a new wave of investment is Mexico’s revised private-public partnership law; the legislation was first passed in January 2012 and regulated last November. President Peña Nieto’s Government is confident Mexico will see a surge

in PPPs to develop major infrastructure projects, funded by a mix of domestic and foreign capital.

Speaking at the Investment Program launch, Mexico’s secretary of communications and transport, Gerardo Ruíz Esparza, stressed the importance of private-sector participation in the program. To that end, the SCT signed an institutional cooperation understand-

ing with the Mexi-can Chamber of the Construction Industry (CMIC), a sector funda-mental to the gov-ernment achieving its goals.

The SCT’s under-secretary of infrastructure, Raúl Murrieta Cummings, con-curred: “With joint ventures, the use of available resources will be improved to carry out more and bet-

ter projects,” he said, calling on society, investors, and institutions to get involved in the plans to extend and improve Mexico’s in-frastructure network.

Meanwhile, the Mexican Stock Exchange (BMV, in Spanish) has also launched innovative instruments to enable private pension funds, known as Afores, and other investors to finance infrastructure and real-estate projects. Due to Basel III regula-tory changes that could put pressure on banks’ balance sheets, markets look set to take on a more prominent role in infra-structure financing.

This April, at the Mexican Banking Association’s (ABM, in Span-ish) 76th Banking Convention, Luis Videgaray Caso, the secretary of finance and the treasury said further modifications would be made to deliver greater flexibility to markets to provide funding to private-sector companies, as per the ABM’s recommendations. Videgaray Caso also outlined the government’s forthcoming plans for wide-ranging financial reforms to boost the economy.

“For the first time in many years, we have the opportunity to [undertake] financial reform, not as a result of a crisis,” the secretary said. He believes Mexico’s robust, well-capitalized, and well-managed banking sector will become an engine of growth, generating accessible credit to create jobs and wealth. “Credit and interest rates are not managed by decree, but through a competitive market,” he noted.

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art of the ACE Group, a global insurance and reinsur-ance giant with presence in 53 nations, ACE Fianzas

Monterrey has been providing clients at home and abroad with high-quality, value-added surety for over seven decades. With a domestic market share of more than 20 percent, ACE Fian-zas holds a Baa1 credit rating from Moody’s and maintains a national network of 25 branches, more than 300 employees, and more than 600 agents and brokers.

“Mexico is the third-largest surety market in the world, after the United States and Italy,” says Arturo Martínez, ACE Fianzas Monterrey’s managing director. “That is one reason why we are a hub for surety. But the only company, at the present time, to have its hub in Mexico is ACE Fianzas Monter-rey. We manage all of Latin America from Mexico.”

The company issues a range of bonds, protecting lenders against losses incurred by principals, including administrative, credit, fidelity, judicial, and trust instruments, and is authorized by the Secretariat of Finance and the Treasury (SCHP, in Spanish). Its commitment to “zero-loss” discipline, based on quality underwriting, has helped make it one of the most prestigious and profitable surety firms in the market.

“In Mexico, not every insurance company can handle surety,” Martínez explains, noting only around 15 of the 117 insurance firms nationwide are authorized to do so. “Our core business is administrative sureties. The most important are performance, advance payments, and tax bonds. They represent 80 percent of the market and, in that segment, we have around a 25 percent share.”

ACE Fianzas relies on state-of-the-art technology to support its operations, using its proprietary Confianza 10 platform. Its also includes a cellular application, called Confianza Movil, to provide best-in-class service not only to in-house personnel, but also to agents, brokers, and clients. It enables the firm to issue bonds and invoices electronically, at distance, while automating payments and commissions, thus ensuring transparency.

“We are a paperless company,” Martínez insists. “All our processes [are on] the system. Another important differentiation is that we have been part of an international company for the last twelve years, and that means we have to follow international rules, including compliance and anti-money laundering.”

After a decade of consolidated growth, ACE Fianzas Monter-rey is looking forward to facilitating new investment in infra-structure, and its gen-eral manager is bullish about prospects: “We can support business in over fifty countries and, for that reason, have the opportunity to at-tract global companies to Mexico,” Martínez says. “Most of our cli-ents are international, but now we [can] re-inforce this. I think we are a very good solu-tion for them.”

CEO: Stephen de Vasconcellos-SharpeEditorial / Conferences Director: Raquel PicornellProject Director: Juliette Frey Project Assistant: Kimi YoshimuraCreative Directors: Anastasia Caramanis, Lisette FloresFor more information contact: svs@countrystrategic.com

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The “Initiatives and Financial Instruments for the Promotion of Infrastructure in Mexico: Public-Private Partnerships and Alternative Investment” panel, organized as part of Country Strategic’s Needs and Op-portunities in Infrastructure 2014 forum, will reveal the innovative ways through which the federal administration hopes to source funding for its wide-ranging plans.Officials from the Secretariat of Finance and the Treasury (SHCP), directors of state and commercial banks, and representatives from multilateral institutions, will all be on hand to explore the full scope of recently introduced measures to attract increased levels of private-sector in-vestment in major projects for Mexico’s future.

Reserve your seat at the table and take part in the debate.

rotagonist infrastructure company ICA celebrat-ed 65 years of commitment to the development

of modern Mexico in 2012 and continues to promote the country as an excellent infrastructure invest-ment destination in the short, medium and long term.

A leader in providing integrated infrastruc-ture solutions, Empre-sas ICA is expanding its footprint outside of Mexico with an increas-ing portfolio of projects in other major coun-tries of the Americas.

Since its founda-tion in 1947, ICA has been the preeminent company in the con-struction of Mexico’s modern infrastructure. ICA’s projects have served to build, pro-vide power, and tie together with roads, railways, ports and airports an entire nation. In the oil and gas sector, its ICA Fluor joint venture has been a key con-tractor in the development of refineries and gas processing

plants, offshore platforms, and other energy infrastructure.The company’s portfolio of completed projects includes

more than 10,000 km of highways and high-specification ex-pressways, 300 km of tunnels, 66 dams, 27 hydroelectric plants, and more than 220 km of subway lines. The portfolio also features more than 1,800 buildings, in-cluding housing com-plexes, hotels, public buildings, and sports stadiums.

ICA’s proven abil-ity to mobilize men, machinery, and mate-rials, in the most chal-lenging environments and under demanding budgets and timeta-bles is the company’s biggest competitive advantage, winning the confidence of public and private

sector clients. ICA solves challenges as they arise with persis-tence and creativity, and does so with a commitment to safety and sustainability.

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>> Mexico’s largest infrastructure developer looks forward to the new challenges

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More than seven years ago, ICA began a new era of expan-sion, taking advantage of a renewed commitment by the Mexi-can government to make the investments to keep the country globally competitive in the 21st century. ICA also expanded its business scope by building a portfolio of 30 long-term con-cessions in the high-way, airport, water, social infrastructure, and port sectors. The combination of infrastructure oper-ation with construc-tion enables ICA to create value at all points of the infra-structure lifecycle: promotion, financing, construction, opera-tion, and portfolio management.

ICA has also made a new push in the international arena—taking ad-vantage of major infrastructure pro-grams elsewhere in the Americas—and expanded into the mining services sector.

A new Executive Committee, led by CEO Alonso Quin-tana, has set a course to deepen ICA’s engineering capa-bilities—already the largest engineering team in Mexico—, adopt new technologies for increasing efficiency and quality, and deepen its engagement with the communities where the company operates.

“ICA’s greatest motivation comes from the social impact of our projects,” said Mr. Quintana. “The infrastructure that we build and operate helps reduce the gap between the globally-integrated segments of society and those that have benefitted less. By providing new transportation links for isolated communities, providing clean drinking water and sustainable energy, and improving the ability of people and goods to move around, we generate economic opportunity. Our projects are designed to protect vulnerable plants, ani-mals and ecosystems. We are also proud to be one of the biggest job creators in the country,” he added.

ICA was the first construction company in Latin America to list its shares on both the Mexican and New York Stock Ex-

changes in 1992. The company adheres to international stan-dards of corporate governance, and has built strategic part-nerships with major international and domestic companies for channelling long-term infrastructure investments. ICA is a

charter member of the Mexican Stock Exchange’s Sustain-ability Index, and this year was select-ed for inclusion in the Dow Jones Sus-tainability Indices.

“Our business strategy of creating value throughout the infrastructure life cycle, close re-lationships with our clients, investment in human capital and new technolo-gies, safety culture, and commitment to sustainability are the elements for secur-ing ICA’s future and creating value for our investors,” con-cluded Quintana.

Through this all, ICA has emerged as the partner of choice for complex infrastructure projects in Mexico and elsewhere in the Americas.

A leader in infrastructure development. A sustainable company. Excellence in client service. Partner of choice for infrastructure development.

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“For ICA, the key elements in our strategy are leveraging

capacities, transparency, and generating values, and these

elements positively impact on investor trust and confidence.”

Alonso Quintana, CEO of ICA

The Role of Mexico as a Global Player will as-sess Mexico’s positioning in diplomacy, compet-

itiveness, innovation, education and security issues. Don´t miss the unique opportunity to liaise directly with the Mexican Secretaries of Foreign Affairs, Econ-omy and Education. The forum will take place at the Council on Foreign Relations in New York on May 28/29, 2014.

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For more information visit: http://countrystrategic.com/mexico