Mexico's transport and communication ministry (SCT) has launched its first ever road maintenance tender using a PPP model.

The historic move comes amid large budget cuts by the Mexican government this year.

The announcement was made by SCT head Gerardo Ruiz Esparza during the inauguration of the Ciudad Valles-Tamuín highway in San Luis Potosí state.

The maintenance work is for the Querétaro-San Luis Potosí section of federal road 57. This the main road used to transport products to the US border and it is also the main road between San Luis Potosí state and Mexico City.

The minister did not disclose the tender's investment amount or any additional details.

With the PPP financing scheme, federal road 57 will continue to be free of charge for users and maintenance services are guaranteed for 10 years, SCT said in a release announcing the historic tender model.

BUDGET CUTS

The government announced on June 24 its second 2016 budget cut of 31.7bn pesos (US$1.7bn) to achieve its deficit reduction target. The decision came amid strong volatility on international financial markets due to the result in the so-called Brexit referendum.

The first budget cut in February was to the tune of 132bn pesos,which affected various infrastructure and water projects.

Combined the budget cuts will impact no less than 1,607 infrastructure projects, of which some are road works, according figures from the finance ministry.

 

Source: BNamericas

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