Mexico and China in talks to form infrastructure fund

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Mexico and China in talks to form infrastructure fund

Mexican deputy finance minister Fernando Aportela said on Tuesday during a visit to New York that Mexico and China are discussing creating a joint fund for investments in infrastructure projects in Mexico.

Mexican newspaper Excelsior said on Tuesday Mexico and China were negotiating creating a $2.5 billion fund for infrastructure spending, but it didn't reveal sources. According to Reuters, the size of the fund was still being negotiated.

Mexican President last year announced his government expected to see more than $300 billion in public and private spending on infrastructure in Mexico between 2013 and 2018.

Beyond investments by state-run energy and water companies, Pena Nieto's infrastructure drive unveiled in July 2013 included putting two new satellites into orbit, tendering two new national television networks and building 15 new highways.

It is clear that the Chinese investors will not be able to behave in Mexico as they do, for example, in Africa, where they fund 100% of a project and at the same time provide labor required on site. Contrary to most of the African countries in question which lack the engineering skills, Mexico has plenty of engineers and technicians to do the work and will therefore rather seek a balanced partnership with China.

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