MIAMI - Public-private partnerships (PPPs) have arrived in Mexico and players at Euromoney's Securitization in Latin American Summit said they will provide fodder for ABS.
PPPs are expected to cover a broad range of infrastructure projects, including hospitals, prisons, and universities. The financing strategy envisioned by Empresas ICA is a case in point, according to Alonso Quintana, director of administration and finance at the construction and engineering behemoth. A year ago, ICA snagged a concession under the PPP scheme - the first of its kind - to make improvements to a 73-kilometer road between two cities in the states Guanajuato and Michoacan, northwest of Mexico City. So far, total investment of slightly over $70 million has been funded with a mix of 80% debt from Banco Santander and 20% equity.