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Mexico: After 75-Year Absence, Peña Nieto Sets in Motion Private Investment in Energy Market

By: PanAm Post Staff - May 2, 2014, 9:00 am

EspañolThis Wednesday, Mexican President Enrique Peña Nieto sent his reform refinements to the Senate to open the energy sector to private and foreign investment through public bidding. The companies that offer the best economic conditions for the Mexican state will obtain the contracts.

Energy Secretary Pedro Joaquín Coldwell detailed in a press conference the points of the presidential proposal, which modifies 13 laws and creates eight. Although it introduces free competition into the exploration, transformation, distribution, and storage sectors, the hydrocarbons will continue to be considered property of the state.

The president’s major reform received approval in December of 2013, and this new set of proposed legislation determines the rules of investment that will allow for private businesses to enter Mexico’s energy market for the first time in more than 75 years. These secondary laws also establish a minimum 25 percent of national firm participation and their preference over foreigners in the bidding.

The executive branch introduced the legislative proposal on the last day of regular sessions in Congress; therefore the energy initiative will be discussed during a special session that to be convened in the two chambers of the legislative body.

Source: El País.