The Infrastructure

Master Plan
As part of our MEXICOS 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
Mexicos 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
Mexicos infrastructure master plan.
For more go to www.countrystrategic.com.
oreign investors already know all about Mexicos 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 efciently 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 Pea Nieto
launched the Transport and
Communications Infrastruc-
ture Investment Program
20132018, which aims to
secure the nancing for his
ambitious master plan to
transform Mexico into a hub
for value-added logistics and
transportation.
Gerardo Ruiz Esparza,
head of Mexicos Secretar-
iat of Communications and
Transport (SCT), and his
staff are responsible for the fulllment of more than 100 of
the governments commitments, in addition to a raft of other
strategic projects: The SCTs job is to provide transport in-
frastructure that makes the movement of products, services,
and people easier, in a fast, efcient, and low-cost manner,
he explains.
The administrations 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.
Ral Murrieta Cummings,
the SCTs under-secretary
for infrastructure conrms
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 Mexicos National Infrastructure
1
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SponsoredSection
MEXICO'S MUSCLE
REVEALING THE
STRENGTH
ThePeaNietoadministrations20132018NIPis
expectedtoincludesome500projectsnation-wide,
whereastheformergovernmentsplancoveredaround300
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 Mexicos 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 countrys flagship projects and where the
countrys motorway plans lead next.
MAKE SURE YOURE ON BOARD!
Program (NIP) has yet to be revealed, it aims to encompass
every infrastructure sector, including oil and gas, water, and
energy networks. The governments 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 rms.
Projects envisaged by the NIP will be funded via a variety of
nancial providers, including Fondo Nacional de Infraestructura
(FONADIN, Mexicos National Infrastructure Fund) and Banco
Nacional de Obras y Servicios Pblicos (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
Mexicos 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. Mexicos goal for 2030 is to
rank in the top 20 percent of the World Economic Forums
Infrastructure Competitiveness Index.
A measure of the Pea Nieto administrations ambitions is
that the 2013-18 NIP is expected to include some 500 projects
nationwide, whereas the former governments plan covered
around 300. Aside from the hardware required to improve
transportation and sanitation networks, the new program also
encompasses projects aimed at preserving Mexicos 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 nations airports; and environmental
technology, especially in water and sanitation.
2
SponsoredSection
uring the six-year adminis-
tration of Mexicos previ-
ous president, Felipe Caldern, public
and private-sector investment in the
countrys 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, lling
in gaps in Mexi-
cos transporta-
tion networks
and making new
connections to
overseas markets.
States such as
Jalisco, Michoacn,
Oaxaca, Puebla,
Quertaro, 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 Pea Nietos management.
Over the last decade, Mexicos ports
underwent a comprehensive moderniza-
tion process that has enabled them to
signicantly increase cargo movements.
Although many were affected by the
global economic crisis, Mexicos econom-
ic recovery has already restarted devel-
opment at some agship 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 Lzaro Crdenas, Manzanillo,
Altamira, Dos Bocas, and Tampico.
In April 2013, Mexicos Secretariat
of Communications and Transport an-
nounced an investment of more than
US$860 million at Lzaro Crdenas Port,
in Michoacn, where it expects an addi-
tional 9,800 jobs to be created. The goal
is to transform Lzaro Crdenas into a
world-class facility that contributes to
the governments objective to develop
a second port on the Pacic that rivals
Manzanillo, the nations 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 nations ports and
merchant marinas, [ongoing] investments
are the result of private companies
condence in Mexicos legal guarantees.
Mexicos 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
Pea Nieto administration will invest in
infrastructure to increase cargo trafc and
promote passenger rail networks to help
relieve trafc congestion in major cities.
New lines are planned throughout
Mexico, with three to be developed
around the capitals metropolitan area,
as well as passenger services to Gua-
dalajara from Jalisco to Aguascalientes.
The governments 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
Ci ty-Quertaro
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
countrys 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 Mexicos loca-
tion and develop a world-class logistics
platform, all infrastructure sectors have to
work harmoniously, Jos Zozaya Delano,
president of KSCM, believes: The capacity
of the countrys ports not only depends on
the number of containers they can handle,
but also on the efciency 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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MODERNIZING TRANSPORTATION
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exicos aviation industry has
undergone a transformation
over the last couple of years. The fortunes
of Aeromxico, the national ag carrier, and
low-cost airlines like Interjet and Volaris
have soared, as they made the most of
Mexicana de Aviacins 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 Pea Nieto administration
has announced plans to undertake seven
airport projects during its six-year ad-
ministration. Details have yet to be nal-
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 Garca 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 rm supporter of President Pea
Nietos aggressive development program:
Infrastructure will move Mexico in the
next few years, he notes. Growth and
development will be the only good strategy
to ght against poverty and inequality.
Garca Bejos believes the federal gov-
ernments 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 nancing,
for example.
In this sense, Garca Bejos main-
tains legislation concerning public-
private partnerships will be vital to
achieve more sustainable growth,
as it aligns the governments and
investors goals. He suggests the
government not limit its planning
to the next six years, but have a
vision for the next fteen 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, Garca Bejos, un-
surprisingly, advocates for making
more use of existing infrastructure.
Improvements may be required to
comply with safety regulations, but
TIAs CEO insists that Toluca is up to the
task of dealing with saturation problems.
A public-private partnership, Tolucas
short-term challenge is now to become
a world-class airport and a good, viable
and efcient option for airlines and pas-
sengers, he concludes.
>>Readyfortakeoff
REUNCHING AVIATION
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5
n June 10, 2013, Enrique Pea
Nietos government passed
Mexicos 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. Slims America
Movil controlled 70
percent of the cellular market and Televisa,
reigned over more than 60 percent of free-
to-air broadcasting.
Gerardo Ruz Esparza, Mexicos 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 rst
day of President Pea Nietos administra-
tion: The TECR will bring about economic
progress and increase competitiveness,
reected in reduced rates, quality services,
and better content, he insists.
Thus far, the sectors reaction has been
very encouraging. According to Jos Igna-
cio Peralta Snchez, 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 Snchez noted that
the reform sought to create conditions
to stimulate investment in Mexico.
Mexico has identied 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 Pea Nietos
administration is committed to bridging
the digital gap to benet all of Mexicos
people via enhanced communications and
universal broadband access.
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TELECOMS REVOLUTION TO CLOSE DIGITAL GAP
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Some of the most in-demand sessions at Country
Strategics forum on the Needs and Opportunities
in Infrastructure 2014 will be the presentation of some of
Mexicos 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 Pea
Nieto governments ambitious plans for a private rail consortium
Ferromex; Toluca International Airport; Yucatn Transpeninsular
Transports (TTY); and the port development programs at Guay-
mas, Lzaro Crdenas, Manzanillo, and Veracruz; as well as the
administrations program for the nations 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 Telefnica Mxico, Axtel, Megacable, Nextel,
and Alestra, will all be participating.
Dontmissauniqueopportunitytomakenew
connectionsinMexicostelecomssector.
Telefnica Mxico is part of the mul-
tinational Telefnica 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, Telefni-
ca is Europes first-ranked integrated
operator and provides consumers and
businesses with class-leading communi-
cations, information, and entertainment
services under its Movistar brand.
To date, Telefnica business in Mexico
has focused on wireless operations, ac-
cording to Paco Gil Daz, Telefnica
Mxicos 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 Daz 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 Daz applauds the cre-
ation of two new regulatory bodies: the
Federal Telecommunications Institute
(IFETEL)which will be formed by
three independent institutions (Mex-
icos Educational Institute, National
Institute of Statistics and Geography
[INEGI], and the Central Bank)and
the Federal Commission on Economic
Competition.
For Gil Daz, 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 Zubirn 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 Mexicos second largest fixed-line
telecom provider, with a 10-percent mar-
ket share. It operates the countrys 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, Toms 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.
AXTELs CEO highlights the governments
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 Mexicos
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, Megacables 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 Amrica Mvil, 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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7
exico has an historic opportunity to carry out a
profound national transformation that triggers
[our] development during the next few decades, President En-
rique Pea Nieto said this July, at the launch of the Investment
Program for Transports and Communications 20132018. Qual-
ity infrastructure in the communications and transport sectors
is fundamental to
a modern, sustain-
able Mexico.
The key to
making his admin-
istrations ambi-
tious infrastruc-
ture plans a reality
depends on the
nations ability to
secure more than
US$160 billion in
nancing during
his six-year term
in ofce. The
good news is that,
following the gov-
ernments reform
drive in its rst 12
months in power, 2013 could be the year Mexico leaps ahead of
other emerging markets to fulll 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 Mexicos 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 banks 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 Mexicos fth-largest nancial
institution and is participating in 185 of the 266 commitments made
by President Pea Nieto during his election campaign.
Banobras leads Mexicos development banking system, which
is providing some of the nancial muscle to fund the administra-
tions planned infrastructure developments, along with the top-
six commercial banks: BBVA-Bancomer, Banamex (Citigroup),
Banorte-Ixe, Santander Mxico, HSBC Mxico, and Inbursa.
Also paving the way for a new wave of investment is Mexicos
revised private-public partnership law; the legislation was rst
passed in January 2012 and regulated last November. President
Pea Nietos Government is condent 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, Mexicos secretary
of communications and transport, Gerardo Ruz 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 SCTs
under-secretary
of infrastructure,
Ral 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 Mexicos 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 nance
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 nancing.
This April, at the Mexican Banking Associations (ABM, in Span-
ish) 76th Banking Convention, Luis Videgaray Caso, the secretary
of nance and the treasury said further modications would be
made to deliver greater exibility to markets to provide funding
to private-sector companies, as per the ABMs recommendations.
Videgaray Caso also outlined the governments forthcoming plans
for wide-ranging nancial reforms to boost the economy.
For the rst time in many years, we have the opportunity
to [undertake] nancial reform, not as a result of a crisis, the
secretary said. He believes Mexicos 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.
10
SOURCING FINANCING
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art of the ACE Group, a global insurance and reinsur-
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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 Moodys 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
Martnez, ACE Fianzas
Monterreys 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, Martnez 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, Martnez 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 fty countries and,
for that reason, have
the opportunity to at-
tract global companies
to Mexico, Martnez
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-Sharpe
Editorial / Conferences Director: Raquel Picornell
Project Director: Juliette Frey Project Assistant: Kimi Yoshimura
Creative Directors: Anastasia Caramanis, Lisette Flores
For more information contact: svs@countrystrategic.com
Country Strategic Sponsored Section
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FINANCIAL TOOLS FOR INVESTORS
>>Guaranteeingtheprojectssuccess
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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 Strategics 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 Mexicos future.
Reserveyourseatatthetableandtake
partinthedebate.
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 Mexicos
modern infrastructure.
ICAs 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 companys portfolio of completed projects includes
more than 10,000 km of highways and high-specication 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.
ICAs 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 companys
biggest competitive
advantage, winning
the condence 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.
14
GLOBAL AND SOCIAL EXPANSION
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>>Mexicoslargestinfrastructuredeveloperlooksforwardtothenewchallenges
ofexpandingoperationsintheAmericasandreachingsustainabilitygoals.
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ICAsol veschal l engesastheyari sewi th
persi stenceandcreati vi ty, anddoessowi tha
commi tmenttosafetyandsustai nabi l i ty.
P
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, nancing,
construction, opera-
tion, and portfolio
management.
ICA has also
made a new push
in the international
arenataking ad-
vantage of major
infrastructure pro-
grams elsewhere in
the Americasand expanded into the mining services sector.
A new Executive Committee, led by CEO Alonso Quin-
tana, has set a course to deepen ICAs engineering capa-
bilitiesalready 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.
ICAs 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 rst 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
Exchanges 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 ICAs 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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15 15
ForICA,thekeyelementsinourstrategyareleveraging
capacities,transparency,andgeneratingvalues,andthese
elementspositivelyimpactoninvestortrustandconfidence.
AlonsoQuintana,CEO of ICA
The Role of Mexico as a Global Player will as-
sess Mexicos positioning in diplomacy, compet-
itiveness, innovation, education and security issues.
Dont 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.
SAVE THE DATE!
For more information visit:
http://countrystrategic.com/mexico