The Public-Private Partnership Law Review: Mexico
Mexico is a federal republic composed of 32 states and several municipalities within each state. As such, federal and local statutes apply to public-private partnerships (PPPs).
The development of PPPs in Mexico began in 2004 under the scheme known as projects for the provision of services (PPS), although the enactment of the Law on Public-Private Partnerships (PPP Law) and its Regulations continued until 2012. In Mexico, however, different types of public-private investment schemes have been used since the early 1990s to implement infrastructure projects, such as concessions, financed public works and investment projects with deferred expenditure registration. These schemes served as direct precedents of PPPs as understood at the time of writing of the PPP Law.
PPPs constitute a long-term contractual relationship between the public and private sectors for the provision of services to the public sector or the end user, in which the private developer provides, partially or totally, the infrastructure required for such services and, generally, the public entity pays a monetary consideration to the private developer.2 PPPs have been used for government policy reasons to increase social welfare, offer more and better infrastructure and foster investment in the country.
Since the enactment of the PPP Law in 2012, there have been more than 100 public biddings for the implementation of projects through the PPP model focused primarily on the health, transportation, telecommunications, social and hydraulic infrastructure sectors. The energy and environmental sectors have also shown an increasing participation in PPPs, which translates into more projects ranging from solar photovoltaic power plants to waste management and waste-to-energy projects.
To ensure transparency and access to information, the federal government has created two websites known as CompraNet and Mexico Projects Hub. CompraNet is a digital platform that provides public information on projects, bidding processes, procurements, leases, public works and other related services; while Mexico Projects Hub contains updated detailed information of the most relevant energy and infrastructure projects that require private investment. The Hub is part of the government's initiative to create an investor-relations office to link investment projects with domestic and foreign potential investors, encouraging long-term financing for infrastructure.
In future years, the PPP agenda in Mexico may increase, particularly in the transportation and telecommunications sectors, since the administration for 2018 to 2024 has shown particular interest in developing railways, highways and airports, as well as an extensive telecommunications network project to provide internet access and digital services across the country. Other projects may include the development of hospitals and clinics to cover the public health sector requirements created by the covid-19 pandemic that has affected the world throughout 2020 and into 2021.3
The year in review
Although the covid-19 pandemic caused the government to concentrate the expenses of the 2020 federal budget in an attempt to control the number of cases and treat infected patients, eight bidding procedures under the PPP Law were initiated in 2020 awarding one project, cancelling two projects and directly adjudicating one project, while the remaining procedures, two of them tendered by the state of Baja California Sur for the construction and operation of a desalination plant and improvement of water state-owned operating agency, are still in development. One project was awarded in the state of Mexico through its State PPP Law for the conservation and maintenance of 82 roads equivalent to 1,637.8km in the State of Mexico. Moreover, several PPP projects were tendered by other states, including the refurbishment of Mexico City Subway's Line 1, which was awarded in November 2020.
Two of the initiated bidding procedures comprised ambitious modernising, operation, maintenance and conservation projects for highways denominated as the Northeast Package, which was awarded for an estimated investment of US$111,674,199, and the Southeast Package, both tendered by the National Bank of Public Works and Services (Banobras).
Of the cancelled procedures, the Tulum-Cancun project, which intended to modernise, rehabilitate, operate, conserve and maintain Federal Highway 307, was cancelled following a statement by President Andres Manuel Lopez Obrador, two days prior to the cancellation of the procedure, that he would not accept the terms provided in the offer of the only participant.
More than 14 PPP projects are still operating in the country in the health, telecommunications and transport sectors.
The covid-19 pandemic has also brought about a need to implement health protection measures in public bidding procedures, which until 2020 were developed under an on-site modality.4 The PPP Law allows contracting authorities to develop bidding processes through electronic means with technologies that guarantee the authenticity, confidentiality and safekeeping of the information within the procedure.5 The first electronic procedure for an infrastructure project under the PPP Law was the cancelled Tulum-Cancun project, which opens a new road for electronic procedures in Mexico under the PPP Law, benefitting sponsors by providing further simplicity to the procedures and reducing the costs of participating in bidding processes, which involved travel expenditures, as well as financial, legal and technical advisers' expenses for attending on-site acts.
Electronic bidding procedures are developed through CompraNet and allow for participants to use valid electronic signatures to electronically submit their proposals on such website.
i Types of public-private partnership
There are different structures to develop PPP projects (lato sensu), including the following:
- concessions, in which the private sector – concessionaire – builds and operates the project owned by the public sector and the investment is recovered through the fees or tariffs paid by the project's end users;
- financed public works, in which the private developer invests in a project, and once it is constructed and operating, the public entity repays the total investment;
- joint ventures, involving particular risk-sharing models; and
- PPP contracts (stricto sensu), which regulatory framework consists of the PPP Law and its Regulations. For projects that are not regulated by the PPP Law, there is a specific legal framework for each infrastructure sector (i.e., oil and gas, power, among others).
Regarding PPP contracts in particular, the PPP Law and its Regulations set forth a classification related to the funding used for the project:
- pure PPP projects completely funded with public resources, either:
- provided in the annual federal budget; or
- resources different from budgetary funds, including those granted by Fonadin, the government agency responsible for coordinating the financing and development of infrastructure;
- combined PPP projects, using both public funds and any other source of funding; and
- self-financed PPP projects funded exclusively with private funds, other non-financial resources or with the cash flow generated by the project itself.
In October 2020, the Head of the Investment Unit of the Ministry of Finance and Public Credit announced that the government would not approve pure PPP projects to avoid any budgetary pressure in following years. Notwithstanding, he confirmed that the Ministry of Finance and Public Credit would favour PPP projects with a self-financed structure. This follows a recent trend initiated by the former administration in 2018 by structuring self-financed PPP projects for the first time and provides for further opportunities for these types of projects, mainly in the energy sector.
ii The authorities
The process of structuring, bidding for and entering into a PPP contract is subject to the control of the public entity acting as contracting party in the relevant jurisdiction. As mentioned before, PPP matters are subject to federal and local statutes; therefore, the contracting party could be any federal, state or municipal authority developing a PPP project, whether state-owned companies, agencies, public trusts or any other governmental entity.
At the federal level, the PPP Law applies to federal public agencies and entities, federal public entities regulated by federal laws with autonomy derived from the Constitution, federal public trusts not considered state-owned entities, and any other governmental entities (state or municipal) that allocate federal resources to PPP projects.
The Ministry of Finance and Public Credit is one of the central authorities for PPPs in Mexico. It has jurisdiction to interpret the PPP Law for administrative purposes and to enact complex rules to prepare the viability studies required to structure a PPP. Another relevant authority for PPPs is the Inter-Ministerial Commission on Public Expense, Financing and Disincorporation, which approves those projects previously analysed and authorised by the Ministry of Finance and Public Credit to be developed under the PPP scheme and that have complied with the regulatory requirements provided for in the PPP Law and its Regulations. Once the Inter-Ministerial Commission's authorisation has been granted, the projects are submitted to the Budget and Public Account Commission of the House of Representatives (in Congress) for the authorisation of the allocation of budgetary federal funds.
The Ministry of Public Affairs also plays an important role in PPPs as it is in charge of investigating public officials' responsibilities. The PPP Law also provides for the Ministry of Public Affairs' responsibility to provide information related to PPP projects and the bidding processes through CompraNet, including supervision of projects and the enforcement of PPP contracts.
The Ministry of Environment and Natural Resources also participates by authorising environmental impact assessments for PPP projects, intended to protect the environment, as well as to preserve and restore ecosystems for the purpose of avoiding or minimising the adverse effects on the environment of works and activities caused by the development of projects.
Other authorities at the federal, state and municipal levels may also be involved in the implementation of PPPs, for instance, to grant the specific permits, licences or authorisations required to develop a project (i.e., land-use licences, water supply and wastewater discharge permits, civil protection and municipal operating licences, among others).
iii General requirements for PPP contracts
A public entity interested in developing a PPP must first complete a structuring phase for a project according to the following considerations:
- if the PPP project involves budgetary funds provided in the annual federal budget, the public entity must prepare and obtain:
- the viability studies of the project;
- the registry in the Investment Portfolio of the Ministry of Finance and Public Credit;
- the authorisation of the Inter-Ministerial Commission on Public Expense, Financing and Disincorporation; and
- the authorisation of the budget and Public Account Commission of the House of Representatives;6
- if the PPP project involves federal resources different from budgetary funds, the public entity must prepare and obtain:
- the viability studies of the project; and
- the registry in the Investments Portfolio of the Ministry of Finance and Public Credit; and
- if the PPP project involves other non-budgetary funds or other non-financial resources (such as self-financed PPPs), the public entity must only prepare the viability studies for the project.
Moreover, the viability studies that the PPP Law provides for must include:
- a general description of the project, including the term of the contract, which may not exceed 40 years;
- the necessary goods and assets (including real property) for developing the project;
- the necessary permits, licences and authorisations for developing the project;
- a social, legal, economic, financial and environmental feasibility; and
- a financial analysis on the convenience of developing the project through the PPP scheme compared to other models of project financing.7
Bidding and award procedure
i Expressions of interest
After the project is structured and approved by the corresponding authorities, the public entity publishes a tender notice or call inviting the private sector to participate in a bidding process. The tender notice shall be published on the contracting entity's website, in the Official Federal Gazette, on CompraNet and in a newspaper of major distribution. The PPP Law establishes that PPPs are subject to transparent and publicly available bidding processes.
Along with the tender notice, the contracting entity publishes bidding rules containing, among others, the:
- identity of the contracting entity;
- requirements for the participants to prepare and submit their proposals;
- term for the services to be provided;
- characteristics and technical aspects for the construction of infrastructure works and services to be provided;
- PPP contract model containing the rights and obligations of the parties and the distribution of risks;
- evaluation method;
- guarantees that participants must deliver; and
- ancillary documents that participants must submit together with their proposals.
After the tender notice and bidding rules are published, the contracting entity grants a period for Q&A with the participants (the PPP procedure shall have at least one Q&A meeting to clarify doubts and concerns that participants may have). Once that period is concluded, participants prepare and submit their technical and economic proposals. At the end of the bidding process, the project is awarded to the bidder that offers the best terms regarding price, quality, financing, opportunity and other circumstances as determined by the contracting party in the bidding rules.
Any person is allowed to attend the events of the bidding process as a public observer. Likewise, the bidding process shall have a social witness to verify that the procedures follow the principles of legality, free participation and competition, objectivity, impartiality, transparency and publicity.
The entire bidding process may be developed electronically, as provided in Section II. The first electronic processes are being developed through CompraNet.
ii Requests for proposals and unsolicited proposals
Any individual or entity that fulfils the requirements established in the bidding rules is allowed to participate in the bidding process, whether individually or as a consortium. The term for the submission of proposals is at least 20 business days after the last Q&A meeting or event as provided for in the bidding process calendar. Bidders must submit a technical and an economic proposal for the project in separate and sealed envelopes, which are opened in a public session for evaluation.
The technical proposals shall contain, among other things, technical aspects to carry out the project, including the development of the infrastructure and the provision of the services referred to in the bidding rules, as well as the commitment to create a special purpose vehicle (SPV) to develop the project. On the other hand, the economic proposals shall contain, among other things, the minimum financial requirements, the project's financial model, investment amounts committed for the project and the price of the services to be provided.
Additionally, the PPP Law sets forth terms and conditions for the submission of unsolicited proposals by private sector entities interested in implementing a PPP project. An unsolicited proposal begins with a request for an expression of interest by the private sector to the public entity; the public entity shall respond within 30 business days regarding whether it is interested in developing the project. Once the private sector obtains a favourable expression of interest from the public entity, it must prepare the unsolicited proposal with the following documentation: the viability studies, including the description and characteristics of the project; the legal, technical, economic and financial feasibility of the project as a PPP; the essential elements of the PPP contract; and the financial requirements and estimated investments.
Furthermore, public entities can request for proposals of PPP projects they are willing to accept, specifying the sectors, subsectors, geographical matters, type of projects, estimated goals, relationship between the proposal and the purposes described in the National Development Plan, as well as the expected benefits. Interested parties take into consideration this information to prepare more accurate unsolicited proposals that could be admitted for public bidding.
The public entity receiving an unsolicited proposal has three months to conclude the analysis and evaluation of the proposal. This term may be extended for an additional three-month period if the complexity of the project requires so. In addition, the public entity may also transfer the proposal to other authorities or invite federal, state or municipal entities to participate in the project, if applicable.
After the analysis and evaluation period, the public entity issues an opinion on the feasibility of the unsolicited proposal. If the proposal is considered feasible, the public entity has the right to call for a bidding process inviting private sector participants, which is conducted under the general rules of bidding procedures as provided for in the PPP Law. Still, if the promoting party that submitted the unsolicited proposal is the only participant in the bidding, the PPP contract may be directly awarded if it fulfils the corresponding requirements.
The promoting party of an unsolicited proposal is entitled to obtain an incentive in the evaluation of its offer during the bidding process, which shall be no greater than 10 per cent of the evaluation method over other bidders. It also has the obligation to convey the necessary information, documents and studies to the public entity to ensure fairness in the bidding. If the promoting party does not win the bidding, it has the right to receive the amounts expended to carry out the studies for the unsolicited proposal.
iii Evaluation and grant
When evaluating the technical and economic proposals submitted by the bidders, the public entity is required to verify their compliance with all the requirements set forth in the bidding rules and the integration of every element contained in each proposal.
The PPP Law emphasises the importance of objectiveness in the evaluation of the proposals so that no participant is favoured over the others. For such purposes, the public entity may use an evaluation matrix that could consist of percentage points, cost-benefit criteria, point-rated criteria or any other quantifiable method that allows an objective and impartial evaluation. The evaluation criteria shall be clearly determined in the bidding rules so that every participant knows the method that the public entity will use to award the contract. The evaluation criteria, by constitutional mandate, must also ensure the best conditions for the contracting authority as well as conditions of fairness and integrity.8
The public entity must evaluate the technical proposals of each bidder and, only if these proposals fulfil the necessary requirements provided for in the bidding rules, it continues with the evaluation of the economic proposals. The bidding rules provide for cases in which a proposal is considered insolvent, being the most common in the following cases: if the proposal is incomplete or its evaluation is impossible; if the proposal fails to comply with the legal, technical or economic provisions contained in the bidding rules; and if the provided information is misleading or false.
After the evaluation of proposals, the public entity awards the PPP contract to the bidder whose proposal is considered solvent for fulfilling all legal, technical and economic requirements in accordance with the evaluation criteria detailed in the bidding rules. If two or more proposals are considered solvent, the contract is awarded to the proposal that provides the best economic conditions for Mexico; and if two or more proposals are still in equal condition, then the contract is awarded to the proposal that considers the greater generation of national employment, as well as the use of national or regional goods and services.
To support the public entity's decision, it must issue a detailed opinion explaining the analysis of the proposals, the reasons for their admitting or discarding, a comparison between them and the elements by which the winning proposal is considered to offer the best conditions for the project. The award is then notified to all participants in a public meeting and published on the entity's website and on CompraNet.
One of the main elements that the PPP contract model includes is the form of payment to the private party for the infrastructure and services provided during the project. Participants in the bidding process pay special attention to the rules regarding consideration and the payment procedure to prepare and submit their proposals.
The payment mechanism depends on the specific nature of every project and the allocation of risks established in the contract. A variety of payment models have been implemented in Mexico; however, the typical form of remuneration in projects awarded in the past couple of years consists of monthly payments that are subject to deductions or withholdings depending on performance indicators set forth in the contract to ensure that the services are being rendered effectively according to the agreed-upon technical specifications.
For a PPP project to be attractive for financing parties in Mexico (mainly financial institutions), the payment mechanism usually considers a percentage of the monthly payment not subject to any deduction or withholding to guarantee the payment of the credit obligations by the sponsor.
Under the self-financed PPP scheme, the payment method includes solely the collection of fees by the private party from the end users of the infrastructure (e.g., highway tolls, waste to energy and water tariffs).
ii State guarantees
In general, federal PPPs do not offer state guarantees to secure payment by the public entity to the private developer. Approval of the required funds for the project and their provision in the annual federal budget as multi-annual expenditure commitments may suffice to prove the government's solvency to comply with its payment obligations under the PPP contract.
Nonetheless, some guarantees to the private party could be contractually based, such as assuring a minimum level of revenue or usage of the project's infrastructure. For instance, if the revenues generated by the project fall below the amount set forth in the PPP contract, the public entity may be responsible for the difference, and this type of contractual provision is frequently used to enhance the bankability of the project.
On the other hand, sub-national PPPs must include mechanisms to guarantee payment obligations undertaken by state and municipal public entities in PPP contracts to be successful. Financial institutions are reluctant to finance state or municipal PPPs if they fail to provide an alternative source of payment different from the state or municipality budget allocation authorised for the project. Usually, these guarantees include the creation of special funds with federal contributions that states and municipalities are entitled to receive from the federal government or the pledge of revenues collected from local taxes. Thus, the type of guarantees will depend on the availability of funds by the relevant state or municipality. The desalination plant for the municipality of Los Cabos, tendered last October and expected to be awarded in early 2021, provides an alternate source of payment to achieve its success.
iii Distribution of risk
Risk evaluation and allocation represents a key factor for the project's success. Project risks analysis is based on a due diligence process intended to ensure that all necessary information about the project is available, the identification of project risks and the distribution of such risks to the appropriate parties that can bear them efficiently through provisions in the PPP contract.
The main risks to be considered and shared among the parties depend widely on the specific nature of each project, but the most common risks that are constantly considered in the structuring of a PPP project in Mexico are:
- commercial risks: those inherent in the project itself, or the industry or market in which it operates (e.g., commercial viability, construction, revenue, operating and environmental risks);
- macroeconomic risks: not directly related to the project, but to external economic conditions of the country or region;
- regulatory and political risks: relating to the effects of government action or political events, such as changes in law, war or civil disturbance, or unilateral termination by the government;
- financial risks: relating to the funding of the project (including capital and debt requirements); and
- force majeure: unpredictable events that do not allow the ordinary course and development of the project.
Considering the above, the usual measures adopted to manage, prevent and mitigate project risks include the following:
- contract provisions: the PPP Law provides that the contract must contain among its provisions the efficient distribution of risks between the public and private parties, which must be properly balanced and, in any case, the contracting entities cannot guarantee any payment or indemnity for risks that are not established in the contract, the PPP Law or its Regulations;
- SPV: the SPV or project company is the entity responsible for hiring financing for the project, entering into the necessary agreements (i.e., EPC and O&M) and being held liable in the case of default;
- insurance: the PPP Law also provides that the private party must take out insurance to cover, at least, the risks that the infrastructure, end users, assets and goods are exposed to during the term of the contract;
- guarantees: the private party must grant guarantees for the completion, operation and performance level of the services as established in the bidding rules; and guarantees in favour of third parties by the nature of the SPV itself and with respect to the project;
- debt-to-equity ratio: although not a mitigation measure, the relation of debt to equity for the sponsor in the project is used by the contracting authority and private party to manage the amount of financial risk the project company can bear and to align the sponsor's incentives with those of the contracting authority; and
- financial terms: lenders are usually willing to bear limited risk provided that they are adequately compensated through interest rates or other financial terms and conditions of the project loan.
iv Adjustment and revision
Any adjustment to the PPP contract may be formalised in an amendment agreement and, when applicable, the necessary authorisations for the project shall be also modified. However, in emergency cases or when the security of the end users is at risk, the public entity may request the private developer to carry out the corresponding actions and changes in the operation of the project without entering into the relevant amendment agreement.
The adjustment of the PPP contract may only have the following objectives:
- to improve infrastructure features, which may include additional works;
- to increase the services or their performance level;
- to deal with aspects related to environmental protection, as well as to the preservation and conservation of natural resources;
- to adjust the project in the case of unpredictable events during the structuring, award or development of the project; and
- to restore the economic balance of the project.
To restore the economic balance of the project, the private party has the right to request the amendment of the PPP contract if an act of authority causes a substantial increase in the developer's obligations or a substantial reduction in the benefits. A substantial variation generally means any change that is long-lasting and puts the financial viability of the project at risk. However, specific requirements must be met depending on the causes and effects of the adjustment to the parties' obligations.
v Ownership of underlying assets
The responsibility to acquire the necessary assets for the development of the project may rest with the public entity or with the private developer, as established in the bidding rules and agreed upon in the PPP contract. The acquisition may be achieved through conventional means (observing civil law property transfer rules) or through taking of eminent domain proceedings. Nonetheless, in Mexico, the public entity generally has ownership and control of the underlying assets, since projects are mostly implemented over state-owned real property. In such cases, a concession permit is sufficient to authorise the developer to use, exploit and operate the assets provided that, upon termination of the contract, the underlying assets of the project's infrastructure and the ones that were essential to provide the services will remain under the public entity's ownership and control, subject to the state-owned property regime. The public entity is also entitled to acquire from the private developer the remaining assets that are not strictly necessary for the project.
vi Early termination
The public entity has the right to terminate the PPP contract before the specified term for reasons of public interest or if the need for the contracted services or infrastructure no longer exists, and if the performance of the contract would cause an injury or damage to the state. The early termination decision must be accompanied by an opinion issued by the public entity stating the reasons for the termination.
If the contract is terminated for causes that are proven different to the private party's fault, developers are entitled to receive a termination payment in the form of reimbursement of the expenses and investments that could not be recovered and have not been fully redeemed. The termination payment also covers the financial obligations assumed by the private developer in the project's financing.
The PPP Law provides that the contract shall address termination causes for public entity default, for private party default, for extended force majeure events and for convenience of the public entity as explained herein.
In Mexico, PPPs are financed through a combination of equity and project finance-based debt, either public or private. The PPP Law requires that an SPV is formed by the sponsor upon the award of a contract. This structure requires the private sector sponsor to fund the project (at least partially) with equity. Public funds are also usually allocated to PPP projects mainly from Fonadin. The debt-to-equity ratio depends on the particular circumstances of each project, such as the participants' desired leverage, borrowing costs and the risks involved in the project.
Among other funding programmes, and as both public and private interest is growing regarding waste management and waste-to-energy projects in Mexico, Fonadin is focusing on its Proresol programme, which is designed to finance large infrastructure municipal waste management projects.
The most common lenders include commercial banks, multilateral agencies and development banks. In the public sector, the main players in project finance transactions in Mexico are Fonadin and Banobras and, when publicly financed, projects must meet additional legal requirements to ensure the proper repayment of debt in favour of lenders.
Whether through equity or debt (public or private), foreign entities are frequently involved in the financing of projects in cross-border transactions. Most of these transactions are funded in a foreign currency and, in such cases, participants have to deal with exchange risks. Project sponsors engage in hedging or swap instruments to reduce a project's sensitivity to changes in the foreign exchange rate. On the other hand, project sponsors may resort to local currency loans in Mexico if the market can offer the amount and term of financing to eliminate any long-term currency risk.
Although there is no jurisprudence related to PPPs in Mexico yet, and there have been no relevant administrative or judicial procedures in past years, in 2017, the Supreme Court upheld, in an amparo procedure, Article 130 of the PPP Law, providing for sanctions to individuals and entities that are in default of their obligations under PPP contracts for reasons attributable to the private party and that may, therefore, cause serious damage to the public entity. Other similar judicial decisions have been made regarding early termination rights and termination payments. These rulings strengthen the application of the PPP Law as they seek a balanced protection of the parties' interests and the principles of the bidding process to award PPP projects.
Both the covid-19 pandemic and the announcements and decisions of President Lopez Obrador's administration have brough a considerable amount of uncertainty to the PPP outlook in Mexico. Recent cancellations based on the President's unilateral decisions include the Cancun-Tulum project, the Trunk Network project, the New Mexican International Airport and the Constellation Brands beverage plant. Notwithstanding, the government is still committed to promoting PPP projects, which may be a helpful path to job creation and the fostering of foreign investment lost because of the current health and economic crisis.
The federal budget for 2021 includes a maximum amount of 42,735.6 million pesos for PPP projects, which represents a 6.63 per cent increase against 2020's budget approval for PPPs. The budget focuses mostly on transport and public health projects, mainly the construction of hospitals to cope with the covid-19 crisis. Transport projects to be tendered in upcoming months are expected to include the development of new railways, highways and ports.
Through its Proresol programme, Fonadin is also expected to boost waste management and waste-to-energy projects in Mexico City and different states of the country.
The energy sector has experienced changes as the open policy under former administrations was being slowed down by the current administration; notwithstanding, with the United States-Mexico-Canada Agreement (USMCA), the country's power supply, as well as oil and natural gas activities, remain open to foreign investment and are protected as a covered sector under Chapter 14 subject to national treatment, minimum standard of treatment and an investment dispute resolution procedure.
The USMCA might also provide further confidence to foreign investors in other sectors, which, along with the recent assurances of the federal government regarding PPP projects, may drive the development of self-financed PPPs in Mexico as a means to increase foreign investment in the country.
1 Alejandro Rojas V is a partner and Benjamin Torrero G is an associate at Nader, Hayaux y Goebel, SC.
2 See PPP Law, Article 2.
3 For more information on the projects agenda refer to the following link: http://www.diputados.gob.mx/LeyesBiblio/pdf/PEF_2021_301120.pdf.
4 Before 2020, of the few PPP bidding processes developed on an electronic modality, most projects consisted in consulting services and there were no electronic bidding processes for infrastructure projects.
5 See PPP Law, Article 40.
6 See the previous section for information about the authorities involved in the structuring of PPPs.
7 Article 14 of the PPP Law and Articles 21 to 31 of its Regulations provide for the preparation and submission of the viability studies for a PPP project.
8 See Article 134 of the Political Constitution of the United Mexican States.