1. Mexican Road Reprivatization:
A new attempt to Attract Private Investment to the Road Network
Luis Calzada
Alberto Gomez
Isabelle Niño
Mary Rachide
Steve Smith

2. Agenda Background Current Situation Issues Discussion Conclusions
Questions

3. Background Mexico Reform process during late 1980’s and early 1990’s
The Mexican Peso crisis
First Toll Road concessions
CAPUFE and FARAC

4. Current Situation Government objectives Proposed plan
Description of roads

6. Current Situation Mexico-Queretaro 222 km 24.5 million vehicles
US$210 million

7. Current Situation Mexico-Puebla 125 km 33.6 million vehicles
US$132 million
Longitude of toll road is 125 km or 78 miles. Runs from Mexico City (Country Capital) to Puebla (State capital)
2001 traffic was 33.6 million vehicles, that represented 20% of the total traffic of the network
The revenues generated represented 19% of the total.

8. Current Situation Queretaro-Irapuato 99 km 12.5 million vehicles
US$78 million

9. Issues Risks Forecasts Possible options Operating Risks
Political Risks/ Creeping
Financial Risks/ Currency issues
Forecasts
Possible options

10. Operating Risks Revenue: Major and Minor maintenance
Traffic Volume- accurateness of the forecast and reliability of the government figures
Traffic Volume- GDP Growth
Toll rate (flexible but with limitations)
Major and Minor maintenance
Force Majeure (flood, earthquake…)

11. Political Risks Creeping expropriation, fees and restrictions
Direct expropriation- end of concessions
Performance of Legal System
Trade restrictions
Force Majeure (sabotage, insurrection…)

12. Financial Risks Exchange Risk Senior Debt Service and Interest Rates
Cash Control

13. Discussion

14. Questions