Lessons From Mexico - Funding Energy And Infrastructure Projects

Funding has become harder to find for large energy and infrastructure projects over the past two years in Latin America. This is mainly due to weaker commodity prices, government budget cuts and institutional weakness in some Latin American countries. In response to these difficulties, new financing instruments are beginning to emerge, while others that are already operating in the market are being modified, with the aim of reducing risks and attracting investment funds and other investors to finance infrastructure, energy and mining projects in Mexico, Brazil, Peru, Colombia and other countries in the region.

We have outlined below some of the ways that Mexico is dealing with these issues to finance its plans for the future. In the last couple of years it has created several new finance tools that could possibly be replicated in other countries.