IFC, the private sector arm of the World Bank Group, has approved an equity investment of up to US$50mn in Infrainvest, an infrastructure company in Mexico, to support private sector investment in infrastructure, specifically transportation and water. This operation will give IFC a 19% participation in Infrainvest.
Jose Luis Guerrero, CEO of ICA, notes, “The participation of IFC in Infrainvest projects provides strong support for the joint venture, and will contribute to our ability to develop the basic infrastructure that Mexico needs, taking advantage of the knowledge and experience of both ICA and IFC.”
Atul Mehta, IFC’s director for Latin America and the Caribbean, says, “IFC is partnering with ICA in Infrainvest through this equity investment in order to enhance the company’s ability to respond to Mexico’s growing infrastructure investment needs.”
This operation is part of IFC’s integrated strategy for Mexico’s infrastructure sector, which includes advice on developing the necessary framework for public-private partnerships in Mexico. The programme aims to create new financing sources from the private sector for development of productive infrastructure, including an efficient risk allocation of resources between the government and the private sector.
In September 2006, IFC financed the expansion, upgrade, and launch of operations for the Irapuato-La Piedad road in central Mexico, the first project offered in concession to the private sector under the new PPP framework.
Infrainvest is owned by Controladora de Operaciones de Infraestructura (Conoisa), a wholly-owned subsidiary of Empresas ICA, Mexico’s largest engineering, procurement, and construction company.