Mirage Energy Corp (MRGE)

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2/6/2020 General Info Regarding Energy Projects Announcement:

Mexican infrastructure would rise due to large investments, experts say

By Luis Rojas

Infrastructure projects in Mexico, with high expectations in the plans in the area of energy, are in the prelude to being recipients of an important flow of investments, which could give some relief to the Economy, according to experts.

The administration of the Mexican president, Andrés Manuel López Obrador, launched in November last year the National Infrastructure Agreement, an alliance between the public and private sectors that commits some 859,000 million Mexican pesos (about 43,000 million dollars).

The measure includes 147 projects in the transport, telecommunications, basic services and tourism sectors, but there is still a second chapter in the area of energy, which could be more attractive for investment once it is announced.

"The interesting thing will be to see what are the projects in the energy sector that are going to be included, both of electric energy and hydrocarbons or clean energy, that is where we would have the possibility of having very important investment for our country," said the director General of the Bursamétrica firm, Ernesto O'Farrill.

The expert added, in statements to Xinhua, that "there are other countries that only by setting the goal in terms of clean energy, already generate an investment boom, an economic boom."

He described as "essential" for Mexico to have infrastructure plans, given that national and foreign investment could accelerate local economic growth, which has stagnated at an annual average of 2.3 percent in the last 30 years.

Mexican economic growth, O'Farrill said, could rise to at least an annual average of 3.5 percent, with the acceleration of the infrastructure plan.

"The Mexican economy is equivalent to 25 billion pesos, so the fact that almost one billion pesos goes to these projects because it is of great relevance, but it could be double," he said.

On the expected energy plan, which could be announced in the coming weeks, he said "China is willing to participate, along with other economies such as Singapore, Norway and even some countries in the Middle East."

The López Obrador administration plans to begin in February the first tender phase of the "Mayan Train" project, one of the main infrastructure works of its government.

The ambitious work integrates 1,500 kilometers of rail logistics, from the archaeological zone of Palenque, in the state of Chiapas (southeast), to the popular Mexican resort of Cancun, in the Yucatan Peninsula.

In addition, the Mexican government integrated on January 29 a special cabinet to stimulate economic growth and the arrival of investments, which could be accelerated with the launch in the future of the Mexico-United States-Canada Treaty (T-MEC) of free trade.

The head of the cabinet, Alfonso Romo, who is also the head of the office of the Presidency and liaison of the president with the national business, said that at least 137 energy projects are prepared, up to 100,000 million dollars.

The Government National Bank of Public Works and Services (Banobras) has another 227 new projects to be developed in infrastructure, and open to the participation of the private sector, both local and foreign.

"We have plans in different sectors but also in different stages of the project life cycle, we usually classify them in four stages," said Mauricio Vázquez, director of project information for Banobras, one of the government's financial support institutions.

"It is not necessary the participation of us as a development bank to be in the projects, the percentage of what we finance is even up to less than 5 percent," the official added to Xinhua.

Banobras even has a section on "sustainable infrastructure" together with the Inter-American Development Bank (IDB) and with Gesellschaft für Internationale Zusammenarbeit (GIZ), the German government agency specializing in technical cooperation for sustainable development worldwide.

The Mexican government enabled the platform "www.proyectosmexico.gob.mx" where interested investors can track the projects to decide their participation, with information that seeks to facilitate compression to foreign participants.

"This, for Chinese companies or Chinese financial institutions that are not familiar, for example, with the issue of health in Mexico, can find more detail in English of the prospectus in the portal," said the Deputy Director of Investor Relations at Banobras, Luis Ampudia.

Meanwhile, the commercial director in Mexico of the Bank of China, Liu Yuxuan, explained that the Asian institution is "monitoring" the various infrastructure plans that are developed in the country, to consider their participation together with other Chinese partners and even Mexicans

"The Bank of China wants to be an investment bridge between Chinese and Mexican companies, we hope that with our efforts we can promote the realization of projects between teams," said the director on the sidelines of a public investment promotion event.

http://spanish.peopledaily.com.cn/n3/2020/0206/c31617-9654806.html