Guadalajara, Jalisco, Mexico – The State of Jalisco will invest 6.2bn pesos (US$278mn) in infrastructure this year and the next to jump start its economy, which is affected by the COVID-19 crisis. The funds come from a loan the state’s congress approved on May 22.
Jalisco will have up to 20 years to pay it back, but interest will add 6.5bn pesos, leading to a total debt of 12.7bn pesos, according to the government.
When governor Enrique Alfaro Ramírez’s administration sent the loan proposal to congress, it said the funds will go to health, education, sport, mobility and water works projects, among others.
Jalisco’s private sector has welcomed the loan, which was also backed by academics.
Carlos del Río Madrigal, president of the local construction industry chamber (CMIC) told a radio station that “it is clear that investing in construction helps directly and indirectly the recovery of other economic activities, and especially the generation of employment and better living conditions for our citizens.”
LOGISTICS
Although details are still lacking, Miguel Ángel Landeros, president of the council for foreign trade (Comce), told daily El Economista earlier that 100mn pesos from the loan would go to logistics infrastructure to turn the state into a hub.
“Quality of infrastructure is also required in a state that particularly needs to rejuvenate its logistics platform due to its vocation for trade,” he said.
Comce also proposed funds go to a cold chain shipping solution for Jalisco’s top food producers and infrastructure for trucks.
Jalisco is a member of the Centro-Bajío-Occidente Alliance (ACBO), formed by the manufacturing states of Querétaro, Jalisco, Guanajuato, San Luis Potosí and Aguascalientes that seeks to boost economic development.
ACBO already has an infrastructure agenda, and the loan could benefit all members.
ONGOING WORKS
In capital Guadalajara two major mobility works are underway.
First is the US$2bn third line of a light train system, financed with federal funds and part of President Andrés Manuel López Obrador’s (AMLO) priority projects. The government plans to start operations this year.
Second is the conclusion of the 9.4bn-peso Mi Macro Periférico bus system, developed by Jalisco’s infrastructure and public works ministry (SIOP).
The ministry told El Economista in April that paving was finished for 70% of the 60km beltway where the system will operate, and works on the final stage would start in May.
The system will connect the municipalities of Zapopan, Guadalajara, Tonalá and Tlaquepaque. Other public transport services will be completed in 2021.
Also, in March, the state increased funds for its highway infrastructure program to 11.5bn pesos from 8.3bn pesos. Under the program, 228km of highway will be built and 449km will be restored over four years.
It is still unclear if any of these works will benefit from the loan.
