p ublic- p rivate p artnerships for h ighways in m exico
DESCRIPTION
P UBLIC- P RIVATE P ARTNERSHIPS FOR H IGHWAYS IN M EXICO. May, 2007. THE NATIONAL HIGHWAY NETWORK. MAIN HIGHWAY CORRIDORS. INVESTMENT NEEDS IN THE HIGHWAY SECTOR. Each year, Mexico needs about 5 billion US dollars for investments in road construction and maintenance - PowerPoint PPT PresentationTRANSCRIPT
May, 2007
PUBLIC-PRIVATE PARTNERSHIPS
FOR HIGHWAYS IN MEXICO
THE NATIONAL HIGHWAY NETWORK
Secondary11,227 km
Toll5,501 km
Toll-free13,744 km
31 State Networks
Rural and StateRoads (159,545 km)
FederalNetwork
47,527 km
RegionalNetwork
68,189 km
Low-Volume Roads(66,920 km)
National
Highway
Network
342,181 km
RuralNetwork
226,465 km
Toll432 km
Toll-free 16,623 km
Basic36,300 km
In Corridors19,245 km
Outside Corridors17,055 km
MAIN HIGHWAY CORRIDORS
2. México - Nuevo Laredo withbranch to Piedras Negras
4. Acapulco - Tuxpan
7. Acapulco - Veracruz
11. Puebla - Progreso
14. Y ucatán Peninsula
1. México – Nogales withbranch to Tijuana
10. Highland
9. Transpeninsular de Baja California
8. Veracruz - Monterreywith branch to Matamoros
6. Manzanillo - Tampico withbranchs to Lázaro Cárdenasand Ecuandureo
12. Puebla - Oaxaca - Ciudad Hidalgo
3. Querétaro - Ciudad J uárez
5. Mazatlán - Matamoros
Ciudad Hidalgo
Salina Cruz
Cancún
Mexicali
La Paz
Guadalajara
Tepic
Tuxtla Gutiérrez
Chetumal
Mérida
Campeche
Culiacán
Durango
Saltillo
CiudadVictoria
Zacatecas
Aguascalientes
J alapa
San Luis Potosí
Querétaro
Monterrey
ChilpancingoOaxaca
ColimaVilla Hermosa
Hermosillo Chihuahua
México D.F.
PueblaCuernavaca
Tijuana
NogalesCiudad J uárez
Nuevo Laredo
Matamoros
Piedras Negras
Mazatlán
Manzanillo
Lázaro Cárdenas
Acapulco
Tampico
Progreso
Tuxpan
Veracruz
Atlacomulco
Huatulco
Ecuandureo
MoreliaToluca
Torreón
13. Transisthmic Circuit
2. México - Nuevo Laredo withbranch to Piedras Negras
4. Acapulco - Tuxpan
7. Acapulco - Veracruz
11. Puebla - Progreso
14. Y ucatán Peninsula
1. México – Nogales withbranch to Tijuana
10. Highland
9. Transpeninsular de Baja California
8. Veracruz - Monterreywith branch to Matamoros
6. Manzanillo - Tampico withbranchs to Lázaro Cárdenasand Ecuandureo
12. Puebla - Oaxaca - Ciudad Hidalgo
3. Querétaro - Ciudad J uárez
5. Mazatlán - Matamoros
Ciudad Hidalgo
Salina Cruz
Cancún
Mexicali
La Paz
Guadalajara
Tepic
Tuxtla Gutiérrez
Chetumal
Mérida
Campeche
Culiacán
Durango
Saltillo
CiudadVictoria
Zacatecas
Aguascalientes
J alapa
San Luis Potosí
Querétaro
Monterrey
ChilpancingoOaxaca
ColimaVilla Hermosa
Hermosillo Chihuahua
México D.F.
PueblaCuernavaca
Tijuana
NogalesCiudad J uárez
Nuevo Laredo
Matamoros
Piedras Negras
Mazatlán
Manzanillo
Lázaro Cárdenas
Acapulco
Tampico
Progreso
Tuxpan
Veracruz
Atlacomulco
Huatulco
Ecuandureo
MoreliaToluca
Torreón
Ciudad Hidalgo
Salina Cruz
Cancún
Mexicali
La Paz
Guadalajara
Tepic
Tuxtla Gutiérrez
Chetumal
Mérida
Campeche
Culiacán
Durango
Saltillo
CiudadVictoria
Zacatecas
Aguascalientes
J alapa
San Luis Potosí
Querétaro
Monterrey
ChilpancingoOaxaca
ColimaVilla Hermosa
Hermosillo Chihuahua
México D.F.
PueblaCuernavaca
TijuanaTijuana
NogalesNogalesCiudad J uárezCiudad J uárez
Nuevo Laredo
Matamoros
Piedras Negras
Mazatlán
Manzanillo
Lázaro Cárdenas
Acapulco
Tampico
Progreso
Tuxpan
Veracruz
Atlacomulco
Huatulco
Ecuandureo
MoreliaToluca
Torreón
13. Transisthmic Circuit
INVESTMENT NEEDS IN THE HIGHWAY SECTOR
Each year, Mexico needs about 5 billion US dollars for investments in road construction and maintenance
Public funds allow the federal government to annually invest less than half the required amounts
To close this gap, Mexico has put together two public-private partnership models that seek to attract private capitals to highway investments
The three models are: Highway concessions
Private service contracts (PPP)
Asset utilization
PUBLIC-PRIVATE PARTNERSHIPS FOR HIGHWAY DEVELOPMENT
Through its public-private partnership models, SCT seeks: To allow an earlier development of Mexico’s toll
and free roads
To increase the amount of highway investments with private participation
To add value to services offered to users
To create jobs in highway construction
To increase the efficiency and productivity of public service provision
To create new opportunities for the private sector
To take advantage of existing highways as a source of resources for new toll roads
MAIN CHARACTERISTICSOF THE NEW HIGHWAY CONCESSION MODEL
Concessions granted through public bids
SCT provides final designs and rights of way
SCT sets maximum average tolls and the rule for updating them
The time of concession can be the maximum allowed by law (thirty years)
The government provides an initial contribution of public funds paid through Finfra, a trust in Banobras, a public development bank
The government offers a minimum revenue guarantee (CAS) to facilitate involvement by private banks
MAIN CHARACTERISTICSOF THE NEW HIGHWAY CONCESSION MODEL
The concession is awarded to the bidder who requests the lowest amount of public funds, measured as the sum of the initial contribution and the net present value of the minimum revenue guarantee
When projects do not require public funds, the concession is awarded to the bidder who complies with the legal, technical and financial requirements of the bid and offers the largest monetary amount to SCT
HIGHWAY CONCESSION PROGRAMAWARDED CONCESSIONS AND BIDS IN PROGRESS
60.110.0 Reynosa-Anzaldúas International Bridge
16.34.0 Tecpan Bypass
247.360.0 Perote-Xalapa and Xalapa Bypass
199.093.0 Arriaga-Ocozocoautla
57.429.5 Irapuato Bypass
7.40.4 San Luis Río Colorado International Bridge
BIDS IN PROGRESS
256.192.0 Monterrey-Saltillo and Saltillo Bypass
AWARDED CONCESSIONS
543.5223.0 Northern Bypass of Mexico City
73.341.0 Mexicali Bypass
905.1
83.0
152.0
103.0
14.2
LENGTH(km)
39.6 Matehuala Bypass
171.6 Amozoc-Perote
AMOUNT(musd)
PROJECT
161.9 Morelia-Salamanca
2,114.6TOTAL
281.1 Tepic-Villa Unión
60.110.0 Reynosa-Anzaldúas International Bridge
16.34.0 Tecpan Bypass
247.360.0 Perote-Xalapa and Xalapa Bypass
199.093.0 Arriaga-Ocozocoautla
57.429.5 Irapuato Bypass
7.40.4 San Luis Río Colorado International Bridge
BIDS IN PROGRESS
256.192.0 Monterrey-Saltillo and Saltillo Bypass
AWARDED CONCESSIONS
543.5223.0 Northern Bypass of Mexico City
73.341.0 Mexicali Bypass
905.1
83.0
152.0
103.0
14.2
LENGTH(km)
39.6 Matehuala Bypass
171.6 Amozoc-Perote
AMOUNT(musd)
PROJECT
161.9 Morelia-Salamanca
2,114.6TOTAL
281.1 Tepic-Villa Unión
HIGHWAY CONCESSION PROGRAMBIDS IN PREPARATION
64.241.1 Chihuahua Bypass
148.0
89.0
18.0
LENGTH(km)
AMOUNT(musd)
PROJECT
68.0 La Piedad Bypass and Access to Mexico-Guadalajara Highway
329.4 Compostela-Las Varas-Puerto Vallarta
461.6TOTAL
64.241.1 Chihuahua Bypass
148.0
89.0
18.0
LENGTH(km)
AMOUNT(musd)
PROJECT
68.0 La Piedad Bypass and Access to Mexico-Guadalajara Highway
329.4 Compostela-Las Varas-Puerto Vallarta
461.6TOTAL
HIGHWAY CONCESSION PROGRAMOTHER PROJECTS UNDER STUDY
313.9111.0 Guadalajara Bypass
78.537.0 Hermosillo Bypass
83.126.5 Tlaxcala Bypass and Xoxtla-Tlaxcala
27.726.0 Encarnación de Díaz-San Juan de los Lagos
60.045.0 Ciudad Obregón Bypass
267.834.0 Cuernavaca Bypass
73.922.0 Acapulco Bypass
92.353.0 Morelia Bypass
717.5
238.0
22.0
12.0
91.0
LENGTH(km)
175.4 Laguna Verde-Gutiérrez Zamora
AMOUNT(musd)
PROJECT
369.3 La Venta-Colegio Militar
369.3 Tuxpam-Tampico and Tampico Bypass
2,049.8TOTAL
138.5 Santa Clara-Indios Verdes
313.9111.0 Guadalajara Bypass
78.537.0 Hermosillo Bypass
83.126.5 Tlaxcala Bypass and Xoxtla-Tlaxcala
27.726.0 Encarnación de Díaz-San Juan de los Lagos
60.045.0 Ciudad Obregón Bypass
267.834.0 Cuernavaca Bypass
73.922.0 Acapulco Bypass
92.353.0 Morelia Bypass
717.5
238.0
22.0
12.0
91.0
LENGTH(km)
175.4 Laguna Verde-Gutiérrez Zamora
AMOUNT(musd)
PROJECT
369.3 La Venta-Colegio Militar
369.3 Tuxpam-Tampico and Tampico Bypass
2,049.8TOTAL
138.5 Santa Clara-Indios Verdes
HIGHWAY CONCESSION PROGRAMPROJECTS AWARDED AND BIDS IN PROGRESS
MEXICALI BYPASS(IN OPERATION)
MATEHUALABYPASS
(IN OPERATION)
MORELIA-SALAMANCA(UNDER CONSTRUCTION)
NORTHERN BYPASS OF MEXICO CITY(UNDER CONSTRUCTION)
AMOZOC-PEROTE(UNDER CONSTRUCTION)
MONTERREY-SALTILLOAND SALTILLO BYPASS
(UNDER CONSTRUCTION)
TEPIC-VILLA UNIÓN(UNDER CONSTRUCTION)
TECPAN BYPASS(UNDER CONSTRUCTION)
SAN LUIS RÍO COLORADO IIINTERNATIONAL BRIDGE
(BID IN PROGRESS)
REYNOSA-ANZALDÚASINTERNATIONAL BRIDGE
(BID IN PROGRESS)
ARRIAGA-OCOZOCOAUTLA(BID IN PROGRESS)
PEROTE-XALAPA AND XALAPA BYPASS(BID IN PROGRESS)
IRAPUATO BYPASS(BID IN PROGRESS
HIGHWAY CONCESSION PROGRAMPROJECTS UNDER PREPARATION
LA PIEDAD BYPASS AND ACCESS TO MÉXICO-GUADALAJARA HIGHWAY
BOJÓRQUEZ BRIDGE
CHIHUAHUA BYPASS
IRAPUATO BYPASS
COMPOSTELA-LAS VARAS-PUERTO VALLARTA
PROGRAM RESULTS
After almost 10 years of not concessioning roads to the private sector, the model has reopened the possibility of involving private resources for highway development in Mexico
The results of the bidding process show that participants have reduced their risk perception and that they are willing to participate in highway projects
The participation of an increasing number of commercial banks also reveals greater confidence by the financial sector
The new model of concessions is a viable mechanism for toll road development in Mexico, and SCT will review and improve it permanently
CHARACTERISTICS OF PPP MODEL FOR HIGHWAYS
A concession is awarded through a public bidding process which also grants to the concessionaire the exclusive right to sign the service contract
The duration of the service contract is fixed, from 15 to 30 years
The contract establishes an association between the Ministry and a private firm to design, finance, build, maintain and operate a highway
The private firm provides services in exchange for periodic payments
Periodic payments are based on availability of the road and its traffic levels
CHARACTERISTICS OF PPP MODEL FOR HIGHWAYS
Each bidder requests a periodic payment determined as a function of: Construction, maintenance and operating costs
Rate of return on equity, including financial costs
Estimated annual traffic
Duration of contract
The Net Present Value of periodic payments is the decision criterion used to award the concession, provided that the winner complies with technical, legal and financial requirements
After construction, the modernized road continues operation as a toll-free road
When the model is applied to a toll road, the periodic payment is made with a combination of toll revenues and budgetary funds
PUBLIC-PRIVATE PARTNERSHIP PROJECTS AWARDED AND BIDS IN PROGRESS
117.8139.693 Querétaro-Irapuato
117.047.732 Nueva Italia-Apatzingán
171.3315.9112 Rioverde-Ciudad Valles
105.458.375 Irapuato-La Piedad
558.4582.985 Nuevo Necaxa-Tihuatlán
PRIVATE INVESTMENTLENGTH
(km)PROJECT
1,696.4
110.9
369.7
71.4
IMPROVEMENT(musd)
392.8213 Zacatecas-Saltillo
118.8163 Mitla-Tehuantepec Junction
140.745 Tapachula-Talismán with branch to Hidalgo City
818
AWARDED CONTRACTS
BIDS IN PROGRESS
MAINTENANCE(musd)
UPCOMING BIDS
1,722.2TOTAL
117.8139.693 Querétaro-Irapuato
117.047.732 Nueva Italia-Apatzingán
171.3315.9112 Rioverde-Ciudad Valles
105.458.375 Irapuato-La Piedad
558.4582.985 Nuevo Necaxa-Tihuatlán
PRIVATE INVESTMENTLENGTH
(km)PROJECT
1,696.4
110.9
369.7
71.4
IMPROVEMENT(musd)
392.8213 Zacatecas-Saltillo
118.8163 Mitla-Tehuantepec Junction
140.745 Tapachula-Talismán with branch to Hidalgo City
818
AWARDED CONTRACTS
BIDS IN PROGRESS
MAINTENANCE(musd)
UPCOMING BIDS
1,722.2TOTAL
EXAMPLE OF PPP SCOPE: QUERETARO-IRAPUATO ROAD
The private service contract for improving this federal toll-free road includes: Widening of 48 kilometers of roads to four lanes,
including the Salamanca bypass
Maintenance of the 93 kilometer road during 20 years
Construction of 7 interchanges
Construction of 4 overpasses
Emergency assistance for users
Construction of a 4.4 kilometer boulevard in Apaseo el Alto
To adequately specify the services to be provided, the road is divided in 16 sections, 8 in each direction
PUBLIC-PRIVATE PARTNERSHIP PROJECTSBIDS IN PREPARATION
PRIVATE INVESTMENTLENGTH
(km)PROJECT
712.8
184.7
203.1
83.1
131.1
110.8
IMPROVEMENT(musd)
263.7170 Acayucan-La Ventosa
80.351 Apizaco-Calpulalpan
938
146
137
434 144.3 Macuspana-State limit
Campeche/Quintana Roo
MAINTENANCE(musd)
108.1 Arriaga-La Ventosa
269.9 Salina Cruz-Huatulco
866.4TOTAL
PRIVATE INVESTMENTLENGTH
(km)PROJECT
712.8
184.7
203.1
83.1
131.1
110.8
IMPROVEMENT(musd)
263.7170 Acayucan-La Ventosa
80.351 Apizaco-Calpulalpan
938
146
137
434 144.3 Macuspana-State limit
Campeche/Quintana Roo
MAINTENANCE(musd)
108.1 Arriaga-La Ventosa
269.9 Salina Cruz-Huatulco
866.4TOTAL
PUBLIC-PRIVATE PARTNERSHIP PROJECTS(AWARDED, IN BIDDING PROCESS OR UNDER PREPARATION)
TAPACHULA-TALISMAN WITHBRANCH TO HIDALGO CITY(UNDER CONSTRUCTION)
NUEVA ITALIA-APATZINGÁN(BID IN PROGRESS)
QUERÉTARO-IRAPUATO(UNDER CONSTRUCTION)
ZACATECAS-SALTILLO(IN PREPARATION)
RIOVERDE-CIUDAD VALLES(BID IN PROGRESS)
NUEVO NECAXA-TIHUATLÁN(BID IN PROGRESS)
IRAPUATO-LA PIEDAD(UNDER CONSTRUCTION)
MITLA-TEHUANTEPEC JUNCTION(IN PREPARATION)
PUBLIC-PRIVATE PARTNERSHIP PROJECTS(UNDER PREPARATION)
APIZACO-CALPULALPAN(IN PREPARATION)
ARRIAGA-LA VENTOSA(IN PREPARATION)
SALINA CRUZ-HUATULCO(IN PREPARATION)
MACUSPANA-STATE LIMITCAMPECHE/QUINTANA ROO
(IN PREPARATION)
ACAYUCAN-LA VENTOSA(IN PREPARATION)
COMPARISON OF CONCESSION AND PPP MODELS
No minimums set A minimum is established Equity requirements
SCT provides conceptual design and list of requirements
Delivered by SCT Project design
A small part is transferred to the concessionaire
Totally transferred to concessionaire
Traffic risk
None Initial contribution and
revenue guarantee (CAS) Government support
SCT(annual budget)
Highway user Revenue source
PPP MODELNEW HIGHWAY
CONCESSION MODELITEM
No minimums set A minimum is established Equity requirements
SCT provides conceptual design and list of requirements
Delivered by SCT Project design
A small part is transferred to the concessionaire
Totally transferred to concessionaire
Traffic risk
None Initial contribution and
revenue guarantee (CAS) Government support
SCT(annual budget)
Highway user Revenue source
PPP MODELNEW HIGHWAY
CONCESSION MODELITEM
CHARACTERISTICS OF UTILIZATION OF HIGHWAYS ASSETS
SCT terminates the concession of highway assets to Farac in exchange for an indemnization
SCT prepares concessions formed by existing highways with more than 10 years of continuous operation, and new highways to be constructed
SCT grants the concessions to the private sector through public bids and pays Farac
The concessionaire is responsible to operate, maintain and exploit the existing toll roads, as well as to build and later operate the new highways in the concession
UTILIZATION OF HIGHWAYS ASSETS
The first bid is all already in progress; it includes a 30 year concession of the Maravatío-Zapotlanejo, Zapotlanejo-Lagos de Moreno, Guadalajara-Zapotlanejo and Leon-Lagos-Aguascalientes toll roads
LEÓN-LAGOS-AGUASCALIENTESlength 103 km; 4 lanes
MARAVATÍO-ZAPOTLANEJOlength 309 km; 4 lanes
ZAPOTLANEJO-LAGOS DE MORENOlength 118 km; 4 lanes
GUADALAJARA-ZAPOTLANEJO length 26 km; to widen 6 lanes
The resources obtained as a result of the bidding process will be allocated to build the Durango-Mazatlán highway
UTILIZATION OF HIGHWAYS ASSETSOTHER PROJECTS
10
9
8
7
6
5
4
3
2
1
2
1
23,350799.2UNDER PREPARATION
Cadereyta-Reynosa800.042.02 lanesAllende-Juárez
San Martín Texmelucan-Tlaxcala500.0450.0
15.012.04 lanes
Xoxtla-Tlaxcala andTlaxcala bypass
Cuernavaca-Acapulco2,800.0800.0
1,500.0
34.022.020.0
2 lanesCuernavaca bypass,Acapulco bypass andChilpancingo bypass
Querétaro bypass2,000.080.02 lanesPalmillas-Apaseo
Cárdenas-Agua Dulce550.028.02 lanesVillahermosa bypass
4,500.0
1,000.0
300.0
3,500.0
3,400.0600.0
800.0800.0
800.0130.0
1,880
INVESTMENT(mop)
2 lanes
2 lanes
2 lanes
4 lanes
2 lanes
2 lanes
2 lanes
TYPE OF WORK(construction)
Pátzcuaro-Uruapan53.0Morelia bypass
Gutiérrez Zamora-Tihuatlán238.0Tuxpam-Tampico and Tampico bypass
74.0UPCOMING BIDS
Chamapa-Lechería80.0Atizapán-Atlacomulco
Champotón Campeche13.2Champotón bypass
Guadalajara-Tepic111.025.0
Guadalajara bypass andTepic bypass
31.022.0
37.010.0
LENGTH(km)
Reynosa-Matamoros andReynosa-Pharr International Bridge
Reynosa bypass andRio Bravo Donna International Bridge and Access
EXISTINGHIGHWAY
PROJECT
Mazatlán-CuliacánMazatlán bypass andCuliacán bypass
10
9
8
7
6
5
4
3
2
1
2
1
23,350799.2UNDER PREPARATION
Cadereyta-Reynosa800.042.02 lanesAllende-Juárez
San Martín Texmelucan-Tlaxcala500.0450.0
15.012.04 lanes
Xoxtla-Tlaxcala andTlaxcala bypass
Cuernavaca-Acapulco2,800.0800.0
1,500.0
34.022.020.0
2 lanesCuernavaca bypass,Acapulco bypass andChilpancingo bypass
Querétaro bypass2,000.080.02 lanesPalmillas-Apaseo
Cárdenas-Agua Dulce550.028.02 lanesVillahermosa bypass
4,500.0
1,000.0
300.0
3,500.0
3,400.0600.0
800.0800.0
800.0130.0
1,880
INVESTMENT(mop)
2 lanes
2 lanes
2 lanes
4 lanes
2 lanes
2 lanes
2 lanes
TYPE OF WORK(construction)
Pátzcuaro-Uruapan53.0Morelia bypass
Gutiérrez Zamora-Tihuatlán238.0Tuxpam-Tampico and Tampico bypass
74.0UPCOMING BIDS
Chamapa-Lechería80.0Atizapán-Atlacomulco
Champotón Campeche13.2Champotón bypass
Guadalajara-Tepic111.025.0
Guadalajara bypass andTepic bypass
31.022.0
37.010.0
LENGTH(km)
Reynosa-Matamoros andReynosa-Pharr International Bridge
Reynosa bypass andRio Bravo Donna International Bridge and Access
EXISTINGHIGHWAY
PROJECT
Mazatlán-CuliacánMazatlán bypass andCuliacán bypass
EXAMPLE OF ADVANTAGE OF HIGHWAYS ASSETS SCOPE
Another upcoming bid is of the package formed by the Reynosa-Matamoros highway and the Reynosa-Pharr International Bridge (existing) and the Reynosa bypass and the Rio Bravo Donna International Bridge (to build)
REYNOSA-MATAMOROS 44 km; 4 lanes
REYNOSA-PHARR INTERNATIONAL BRIDGE 10 km; 2 lanes
REYNOSA BYPASS 37 km; 2 lanes
RIO BRAVO-DONNA INTERNATIONAL BRIDGE AND ACCESS 7.5 km; 4 lanes
CONCLUSION
Public-private partnerships are key to increase highway infrastructure investment levels in Mexico
Today, existing conditions are favorable for road development through public-private models in Mexico because of: A stable macroeconomic environment Models and projects that are attractive to the
market Key national and international players are
interested Existing highway assets can support new project
development
As a consequence, in Mexico there is a window of opportunity that can be seized to increase competitiveness, promote employment and contribute to regional development
FOR MORE INFORMATION
WEB ADDRESS http://dc.sct.gob.mx
For general information
José San Martín Romero [email protected]
tel.: +52 (55) 5482-4343
fax.: +52 (55) 5482-4392
For PPP projects
Amado Athié Rubio [email protected]
tel.: +52 (55) 5482-4344
fax.: +52 (55) 5482-4392