Mexican President Proposes Road Privatization

Despite a crumbling toll road that many call a failure, Mexican President Felipe Calderón is pushing measures that would create numerous toll roads in the country. With little money to invest in infrastructure, his plans rely on privatization.

1 minute read

April 30, 2007, 8:00 AM PDT

By Nate Berg


"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."

Friday, April 27, 2007 in Los Angeles Times via The Seattle Times

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