Mexican President Proposes Road Privatization

"President Felipe Calderón is touting toll roads as a solution to Mexico's infrastructure woes. His administration is moving aggressively to award contracts to private companies to finance, build and maintain highways — and charge motorists to use them."

"Proponents cite a variety of advantages to involving the private sector. Structured correctly, long-term concessions can shift risks of cost overruns and faulty construction to private operators. For-profit companies have pioneered innovations such as electronic billing and congestion pricing."

"But mostly, Mexico's motivation boils down to a lack of money in government coffers."

"The Calderón administration is planning to convert as many as 16 public freeways into toll roads to be managed by private companies."