The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Kim Yong-hwan, ‘Korea Eximbank’) announced on September 3 that it held successive meetings with Mexico’s Secretary of Agriculture, Livestock, Rural Development, Fisheries and Food (SAGARPA), and Secretary of Communications and Transportation (SCT) at the Mexican government complex to discuss practical ways of facilitating the entry of Korean companies to Mexico.

Mexico is emerging as a new land of opportunity for Korean companies as the Mexican government prepares to spend 4 trillion pesos (approx. USD 310 billion) for energy and infrastructure projects.

Korea Eximbank’s meeting with senior Mexican government officials comes as a pre-emptive move to secure a foothold for Korean companies to participate in the coming Mexican infrastructure boom.

Chairman Kim of Korea Eximbank met with SAGARPA’s Secretary Enrique Martinez on September 2 (local time) and requested the Mexican government’s support for the participation of Korean companies in sectors including water supply and drainage, hydroelectric power, and fertilizer plants, in which synergies can be generated through bilateral economic cooperation.

Chairman Kim pledged to “offer ready and full financial support to large-scale infrastructure projects that hire Korean contractors, as part of efforts to reinforce economic cooperation between the two countries.”

In his subsequent meeting with Secretary of Communications and Transportation Ruiz Esparza, Chairman Kim requested that Mexico’s Government Procurement Scheme* be amended to allow Korean companies to participate in projects launched by state-owned enterprises like PEMEX or CFE.
* Under the current scheme, companies based in countries that didn’t sign FTAs with Mexico are barred from independently entering bids for public procurement contracts.

Secretary Ruiz Esparza replied, “The participation of globally competitive companies such as those from Korea is a prerequisite for the success of Mexico’s Infrastructure Development Plan. Since Korea Eximbank has signaled a strong interest in providing financing at a moment when Mexico needs to attract large volumes of foreign investment, our government will strive to create more room for Korean participation in Mexican projects through continual institutional reforms.”

Mexican President Enrique Pena Nieto is pursuing an ambitious plan to upgrade the nation’s infrastructure base, with a goal of investing a total of USD 310 billion in infrastructure projects over the next six years.

Included in the plan are projects to build and upgrade power plants (worth USD 50 billion), highway networks (USD 25 billion), ports (USD 1 billion), high-speed railways and airports (USD 7 billion).

Some Korean companies are already preparing to bid for several power plant projects including the Baja California Power Plant Project (USD 350 million) and Norte 3 Power Plant Project (USD 1.1 billion); others are bracing for entry into Mexico’s high-speed railway and airport construction sectors, in which they are globally competitive.