AMLO’s Latest Plan to Regain Investor Confidence Is Almost Ready
(Bloomberg) -- Mexican President Andres Manuel Lopez Obrador’s latest plan to regain investor confidence after a drop last year will be ready to present publicly by the end of the month, his chief of staff said.
Alfonso Romo said that while negotiations are ongoing, the Energy Ministry is evaluating $100 billion of projects presented by the private sector to see which ones can fit the national development plan.
“This energy plan is going to be key, very important, to gain the confidence of a sector that we’ve been in disputes with in recent months,” Romo said at a conference in Mexico City on Thursday.
It remains to be seen how much investors will be enticed by the plans. Companies would like a return to oil-field auctions started under his predecessor. They brought in billions of dollars in foreign investment before Lopez Obrador stopped them after taking office in December 2018. But people familiar with the thinking of Lopez Obrador, popularly known AMLO, say that isn’t going to happen.
The energy projects originally were supposed to be presented as part of a larger package announced in November but were pulled at the last minute. The plan unveiled then, for 859 billion pesos ($46 billion) worth of infrastructure including roads, rail, ports, airports and telecommunications, underwhelmed investors, with stocks falling the most in eight weeks after the announcement.
To contact the reporters on this story: Michael O'Boyle in Mexico City at moboyle7@bloomberg.net;Eric Martin in Mexico City at emartin21@bloomberg.net
To contact the editors responsible for this story: Juan Pablo Spinetto at jspinetto@bloomberg.net, Robert Jameson
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