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The Political Situation in Mexico CMIC Presentation to the North American Construction Federation Conference Sun River

POL ITICAL SITUATION. The Political Situation in Mexico CMIC Presentation to the North American Construction Federation Conference Sun River Resort- Bend, Oregon United States August 12-14, 2010. Political Outlook. CONTENTS. Political Forces Proposal for APP Law

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The Political Situation in Mexico CMIC Presentation to the North American Construction Federation Conference Sun River

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  1. POL ITICAL SITUATION The Political Situation in Mexico CMIC Presentation to the North American Construction Federation Conference Sun River Resort- Bend, OregonUnited States August 12-14, 2010

  2. Political Outlook CONTENTS • PoliticalForces • ProposalforAPP Law • Liaison withLegislators 2

  3. Political Situation 1. Political Forces 2009 2010 In 2009, the PRI goverened 19 states, the PAN 7 and the PRD 6. After the elections on July 4, 2010, the PRI is governing in 19 states, the PAN in 5, the PRD in 5 and ALIANZA (PAN-PRD) in 3 states. 3 Source: Federal Electoral Institute of each state.

  4. Political Situation 1. Political Forces ElectionResultsforGovernor in 12 states: July 4, 2010 Note: TheGovernors are electedbydirectcitizens vote. Thetermisforsixyears . Thereis no re-election. There are 32 states (EF). 4 Source: Federal Electoral Institute of each state.

  5. Political Situation 1. PoliticalForces 2009 2010 21,689,536 11,889,672 19,537,085 63,463,191 Total Population(People) 55,609,546 22,398,704 21,047,149 154,471 154,451 65,760 Total GDP (Millions of Pesos) 516,705 511,104 210,201 226,016 10,773 Construction GDP (Millions of Pesos) 9,620 38,354 9,878 3,583 37,069 10,273 5 5 Source: Management of Economy and Finance CMIC with IFE and INEGI data.

  6. Political Situation 1. Political Forces 2006-2009 2007-2012 2006-2009 2007-2012 (Without changes) PAN PAN PRI PRI PRD PRD PVEM PVEM OTROS OTROS 1 / There can be no immediatereelection of a Deputy. Thetermisfor 3 years, calledLegislature. InstalledonSeptember 1 and endsonAugust 31 threeyearslater. 2 / There can be no immediate re-election of a Senator. The term lasts 6 years. 6 6 Source: Management of Economy and Finance CMIC with IFE and INEGI data.

  7. Political Situation 2. ProposalforAPP Law The CMIC supportstheproposal of an APP (Public-PrivatePartnership) Law ● Currently there is a Public Works Law in Mexico, but not an APP Law. ● There is need for a legal regimen that would regulate the APP’s. ● It is neccessary an adequate distribution of risks between the private and public sector. 7

  8. Political Situation 2. ProposalforAPP Law Attempt to incorporateexistingbestpracticesfromothercountries: ● Use of theseschemes ● Lowercosts ● Reduction of time 8

  9. Political Situation 2. APP Law Benefits of the APP Law: ● Judicial certainty ● Flexibility for the investors and Federal Public Administration (APF) ● Efficient use of public resources ● Promote initiatives in the private sector 9

  10. Political Situation 3. Liaison with Legislators ● Open dialogue withCommissions in boththeHouse and Senate ● Periodicmeetingsregardingtheinfrastructure agenda and seeking solutions to problems 10

  11. Political Situation 3. Liaison with Legislators 3.1. Regulatory Reform ForumonRegulatoryReforms(Federal government and OCDE): ● InstitutionalCoordination ● Facilitateprojectassignments ● Access to financing ● Simplification of theregulatoryframework ● Expedite contractprocedures 11

  12. Political Situation 3. Liaison with Legislators 3.2. Fiscal Reform Federal representativeswereinvited to talkaboutthe2010 Fiscal Code. Theproposalscoveredthefollowingthemes: ● FiscalConsolidation ● Fiscal Responsibility● TaxReceipts ● Access to information and precautionarymeasures ● AdditionalDeclarations ● ActiononAdministrativeProceduresforImplementation ● Limitation of Criminal Action ● TaxCrimes ● Reparation of Damages ● TaxAddress 12

  13. Political Situation 3. Liaison with Legislators 3.3. Promotion of Micro, Small and Medium size construction companies CMIC encouragestheparticipation of Mipymesin theconstruction sector Work Groupswereintegrated to discussthefollowingtopics: ● Regulatoryframeworkto acceleratepublicworks ● Public Trust to promotethedevelopment of nationalsuppliers and contractors ● StaterunPetroleumcompany ● Project Bureau ● GovernmentPurchasingProgram ● FundforconstructionMipymes ● Liquidguarantees ● Training ● Mipymesparticipation in publicworks. 13

  14. POLITICAL OUTLOOK The Political Situation in Mexico CMIC Presentation to the North American Construction Federation Conference Sun River Resort- Bend, OregonUnited States August 12-14, 2010

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