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."

FULL STORY: Mexican leader pushes to privatize highways

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

Government / Politics Transportation Mexico

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