Institutional Activity CMIC Presentation to the North American Construction Federation Conference Sun River Resort- Bend, Oregon United States August 12-14, 2010 CMIC CMIC INSTITUTIONALINSTITUTIONALCMIC CMIC INSTITUTIONALINSTITUTIONAL

2 CMIC Institutional CONTENTS 1.Organizational Structure 1.1. Commissions and Work Groups 1.2. National Coverage 1.3. CMIC Institutions 2. Key Points for Action Plan

1.1 Commissions and Work Groups CMIC Institutional Commissions and Work Groups 1. National Secretary 2. National Treasurer 3. Housing and Urban Development 4. Communications and Transportation 5. Institutions 6. Building and Tourism 7. Regulations and Arbitration 8. Responsible Companies and International Affairs 9. Social Security and Employer issues 10. Hydraulic 11. Federal District 12. Energy 13. Financing 14. SMEs and Marketing 15. Health 16. Strategic Planning and Member Services The guidelines for organizational structure that provide functionality to the key action points, are based on committees and working groups, which together with the structure of the Chamber give sustainability to the work plan. National President 3

4 1.2 National Coverage CMIC Institutional Southeast Region West Central Region Northeast Region Northwest Region CMIC is the business chamber with the most important infrastructure at a national level. Central Region Tijuana Baja California Baja California Sur Sonora Ciudad Juárez Chihuahua Campeche Yucatán ChiapasOaxaca Q. Roo Durango Coahuila Mazatlán Tabasco Guerrero Colima Sinaloa Nte. Sinaloa Sur Nvo. León Tamaulipas Cd. Victoria San Luis Potosí Nayarit Zacatecas Aguascalientes Jalisco Michoacán Guanajuato Veracruz Lázaro Cárdenas Xalapa Comarca Lagunera Saltillo Puebla Morelos Coatzacolacos Hidalgo Querétaro D.F Edo. Mex. Tlaxcala Poza Rica

5 1.3 CMIC Institutions CMIC Institutional REPRESENTATION AND MANAGEMENT FOR THE STRENGTHENING OF CONSTRUCTION COMPANIES TRAINING AND UPDATING FOR INTEGRAL DEVELOPMENT OF INDUSTRY STAFF ICIC (Institute for Training in the Construction Industry) A.C. PROFESSIONAL FORMATION OF HUMAN RESOURCES IN THE CONSTRUCTION SECTOR ITC ( Tecnological Institute for Construction) A.C. APPLIED RESEARCH AND TECHNOLOGICAL DEVELOPMENT TO INCREASE PRODUCTIVITY FIC (Foundation for the Construction Industry) A.C.

6 2. Key Points of the National President’s Action Plan CMIC Institutional Judicial security for our affiliates, before the Mexican Institute of Social Security (IMSS). Strengthen CMIC’s relationship with executive branch to push for profound regulatory reforms to facilitate the participation of construction companies in public projects. Strengthen CMIC’s relationship with executive branch to push for profound regulatory reforms to facilitate the participation of construction companies in public projects. Permanent campaign to increase membership in CMIC. Promote the mechanism of arbitration to resolve disputes. Promote the mechanism of arbitration to resolve disputes. Lobby the Secretariat of Civil Services and Audits for the swift approval of the Regulation to the Law of Public Works and Related Services, to obtain the benefits of these recent reforms. Lobby the Secretariat of Civil Services and Audits for the swift approval of the Regulation to the Law of Public Works and Related Services, to obtain the benefits of these recent reforms. Judicial security for our affiliates, before the Mexican Institute of Social Security (IMSS). Strengthen CMIC’s relationship with executive branch to push for profound regulatory reforms to facilitate the participation of construction companies in public projects. Strengthen CMIC’s relationship with executive branch to push for profound regulatory reforms to facilitate the participation of construction companies in public projects. Permanent campaign to increase membership in CMIC. Promote the mechanism of arbitration to resolve disputes. Promote the mechanism of arbitration to resolve disputes. Lobby the Secretariat of Civil Services and Audits for the swift approval of the Regulation to the Law of Public Works and Related Services, to obtain the benefits of these recent reforms. Lobby the Secretariat of Civil Services and Audits for the swift approval of the Regulation to the Law of Public Works and Related Services, to obtain the benefits of these recent reforms.

7 Consolidate a dialogue with the legislative branch. Ongoing exchange with the Infrastructure Commission of the National Governor’s Conference (CONAGO). Promote and fortify Small and Medium Size companies. Close communication to and with members to strengthen and resolve sector problems. Build relations with federal entities. Consolidate a dialogue with the legislative branch. Ongoing exchange with the Infrastructure Commission of the National Governor’s Conference (CONAGO). Promote and fortify Small and Medium Size companies. Close communication to and with members to strengthen and resolve sector problems. Build relations with federal entities. 2. Key Points of the National President’s Action Plan CMIC Institutional

Institutional Activity CMIC Presentation to the North American Construction Federation Conference Sun River Resort- Bend, Oregon United States August 12-14, 2010 CMIC CMIC INSTITUTIONALINSTITUTIONALCMIC CMIC INSTITUTIONALINSTITUTIONAL

9 CMIC is working with the IMSS to modernize the regulatory framework to guarantee financing for the social security system for the benefit of IMSS and construction companies. To clarify the real cost of social security for construction workers and facilitate compliance with employer obligations. CMIC is working with the IMSS to modernize the regulatory framework to guarantee financing for the social security system for the benefit of IMSS and construction companies. To clarify the real cost of social security for construction workers and facilitate compliance with employer obligations. Mixed Commissions and Work Groups with IMSS CMIC Activities The IMSS is an autonomous and tripartite (federal government, employers and employees) government institution, whose function is to offer health and social security services to the affiliated poplulation.

10 New Products and Servicies New products for Small and Medium Size companies have been introduced such as: financing, technologies, training, consulting, etc. CMIC Activities

11 The CMIC is promoting this center with the objective of offering an alternative mechanism for dispute resolution; this is generally used as a way to resolve complex and onerous problems in a more rapid and efficient manner than the common mechanism of litigation. Aribtration Center for the Construction Industry Aribtration Center for the Construction Industry CMIC Activities

12 A close relationship has been established and maintained with the Mexican Congress to bring to the forefront concerns and proposals of the business sector. Working relationship with legislative branch CMIC Activities

13 In this context, along with CONAGO’s Infrastructure Commission a proposal is being made to generate reserves for Master Projects by allocating 0.5% of the budgeted investment,solely for a fund to finance these projects. Working relationship with the National Governor’s Conference (CONAGO) CONAGO is an organization that brings together all the governors of Mexico with the objective of creating projects and carrying out political, economic, social and judicial studies to deliberate, agree on, propose and evaluate joint solutions to strengthen Federal Institutions and design public policies to drive federalism and decentralization processes. CONAGO is an organization that brings together all the governors of Mexico with the objective of creating projects and carrying out political, economic, social and judicial studies to deliberate, agree on, propose and evaluate joint solutions to strengthen Federal Institutions and design public policies to drive federalism and decentralization processes. CMIC Activities

14 With the Secretariat of Economy, CMIC is working to address the challenges faced by Micro, Small and Medium Size companies (MIPYMES) in the construction industry, in different federal entities. The agenda items are: Mixed Commission of the Ministry of Economy-CMIC (MIPYMES): Working Group to address issues related toMIPYMES. Mixed Commission of the Ministry of Economy-CMIC (MIPYMES): Working Group to address issues related to MIPYMES. Liquid Guarantees: Creation of a fund that would offer liquid guarantees to construction MIPYMES when they participate in government bids, to strengthen their capacity to respond when lacking financing (Initial fund of 100 million pesos). Public Trust to promote the development of National Suppliers and Contractors for the government run petroleum industry: Review mechanisms through which MIPYMES can take advantage of the resoucrses of this trust. Training: Establish an integral training program for MIPYMES, encourage special courses for these types of companies, using the infrastructure of the Centro México Emprende and design a specific fund for this purpose. CMIC Activities

15 Fuente: Gerencia de Economía y Financiamiento CMIC. The agenda items are: Comply with the 35% stipulated in the Law for the Development of Competitiveness of Micro, Small and Medium Business: Establish the necessary mechanisms to ensure compliance with the provisions of the Law and its Regulations. Establishment of State Councils: Promote the creation of State Councils for the Competitiviness of Micro, Small and Medium Business and through this promote the development and participation of MIPYMES in all the states in the republic. CMIC Activities

16 The Mixed Commissions and Work Groups are the most adequate instruments to channel the concerns and needs of CMIC affiliates and to bring about the appropriate coordination with public institutions and regulatory entities for public works. Mixed Comissions and Work Groups CMIC Activities