According to the World Bank, project finance is the most common, and usually the most efficient, financing arrangement for PPP projects. Mexico’s various budget cuts have forced the government to explore new ways to finance the construction of the infrastructure the country requires. But participating in a PPP is no walk in the park. It requires in-depth studies, risk allocation, bankability and mitigation of numerous risks. As the government unveils new PPP projects for the development and maintenance of roads, airports, ports and railways, it is important to find the right structure that properly distributes the risk.
This chapter gathers the country’s most experienced consulting and law firms to discuss the main challenges both national and international companies face when participating in PPPs, while also addressing the key areas of opportunity.