Mexico says in talks with China to form infrastructure fund

By Rodrigo Campos

NEW YORK Tue Feb 11, 2014 
reuters.com 

Mexico's Deputy Finance Minister Fernando Aportela gestures during an interview with Reuters at the annual Inter-American Development Bank (IDB) meeting in Panama City March 16, 2013.

Credit: Reuters/ Eduardo Grimaldo

NEW YORK (Reuters) - Mexico and China are discussing creating a joint fund for investments in infrastructure projects in Latin America's No.2 economy, Mexican deputy finance minister Fernando Aportela said on Tuesday during a visit to New York.
Mexican President Enrique Pena Nieto 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, around a third of it in telecoms and transport.

The forecast spending was aimed at complementing a wider economic reform drive spanning energy to telecoms that Pena Nieto pushed through Congress last year and which is aimed at boosting long-lagging economic growth.

Mexican newspaper Excelsior said on Tuesday Mexico and China were negotiating creating a $2.5 billion fund for infrastructure spending, but gave no sourcing.

Aportela told Reuters the size of the fund was still being negotiated.

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

A broad range of Mexican companies will likely benefit.

Mexican billionaire Carlos Slim's conglomerate Grupo Carso (GCARSOA1.MX), miner Grupo Mexico (GMEXICOB.MX), cement giant Cemex (CMXCPO.MX), chemical producer Mexichem (MEXCHEM.MX) and airport operators Gap (GAPB.MX), OMA (OMAB.MX) and Asur (ASURB.MX) are all potential winners.


(Reporting by Rodrigo Campos; Editing by Simon Gardner, Bernard Orr)