GENERAL POLICIES OF PROJECT SELECTION AND CLASSIFICATION
Last update: June 29th, 2018
Mexico Projects Hub is an initiative of the Federal Government operated by Banco Nacional de Obras y Servicios Públicos (BANOBRAS), with the collaboration of several federal entities in order to provide information to the general public on investment opportunities in infrastructure in Mexico. For that purpose, the following policies are considered:
1 ELIGIBLE PROJECTS. Mexico Projects Hub includes infrastructure and energy projects in Mexico that: (i) require private sector financing, including, without limitation, equity or debt; (ii) include a public-private partnership model, or are susceptible to be structured under such model, including concessions, partial assignment of rights, public-private partnerships, public financed works, etc.; or (iii) in exceptional cases, traditional public works, that exclusively in the opinion of Banobras, are considered as flagship with relevant investment amounts.
2 COLLABORATION OF INFORMATION. Several agencies and entities of the federal public sector, state owned productive companies, and state governments provide support regarding information and follow-up of the projects included in Mexico Projects Hub. Consequently, the contents thereof are subject to the accuracy and update, if any, provided by such entities. As part of a continuous effort, the collaboration of entities and agencies of the Federal Government and state government entities that to date have not collaborated will be pursued.
Mexico Projects Hub seeks to include the most important infrastructure and energy projects in Mexico that require the participation of the private sector that the federal or state governments want to disclose. However, the inclusion of all projects is not guaranteed.
3 INCLUSION AND REMOVAL OF PROJECTS. The projects are reviewed by a working group formed by executives of BANOBRAS Infrastructure Promotion Office, who review the consistency of the information for the inclusion in or removal from Mexico Projects Hub. Some of the projects removed from the platform may be developed under some other scheme; however, they no longer represent a concrete investment opportunity for long-term private equity or debt.
Those state or municipal projects that have federal funds or that require a federal authorization, should be delivered to Mexico Projects Hub through the corresponding federal government entities or agencies.
Banobras reserves de right to publish in Mexico Projects Hub those infrastructure and energy projects that, in its opinion, do not comply with the current policies.
4 PROJECTS CLASSIFICATION. Projects are classified according to their actual stage: (i) New Projects and (ii) Projects in Operation:
• New Projects consider projects in the pre-investment (preparation), biding and execution/construction stages. Likewise, in this section are included projects that are in the operation stage, but that require rehabilitation or asset divestitures, with a long term recovery mechanism (“Brownfields”).
• Projects in Operation consider those projects that are in operation.
5 BROWNFIELD INVENTORY. Projects in operation were obtained based on the information available from public sector entities websites, their concessionaires and / or feedback received. To date, neither all sectors nor all projects are included. This section will be expanded based on: (i) available public information, (ii) information provided by the institutions, and (iii) greenfields that change their classification to brownfields.
6 PROJECTS SUB-CLASSIFICATION. Mexico Projects Hub uses sub-classifications that help identify projects based on their general characteristics, which include, but are not limited to:
• Sector: Is the division of the economic activity to which the project belongs, based on the eight categories that are expected to remain stable over time. This list of sectors is aligned with sectorial classifications used worldwide.
• Subsector: Is the sub-division of the economic activity to which the project belongs.
• Green Project. There is no standardized classification of green projects worldwide. Mexico Projects Hub performs classification according to internal parameters aligned with international best practices. In this regard, the Sustainable Bond Framework is used. This framework was developed to have specific criteria to provide financing to those eligible projects that fulfill certain sustainable characteristics that are subdivided in Social Projects and Green Projects. Only those Green Projects are as well classified as such in Mexico Projects Hub. Social Projects do not receive such classification, however, we will look for ways to incorporate this criterion soon.
As a consequence, projects that fall under the following categories are considered as Green Projects in Mexico Projects Hub: (i) Renewable Energy; (ii) Energy Efficiency; (iii) Water Efficiency and Wastewater Management; and, (iv) Prevention and Control of Pollution.
Those projects that do not fall under such eligible classifications are analyzed case by case and, if they are required to have some type of certification, such as a LEED Certification according to the tender guidelines, they could be classified as Green Projects in Mexico Projects Hub.
• Type of project. Projects are classified in public, public / private or private. Public are considered those traditional public works or concessions granted to public entities.
• Type of contract. It is the legal model or agreement that supports the project.
• Selection process. It is the legal mechanism to choose the company, consortium or group responsible for carrying out the project.
• Stage. It is one of the four development periods in which the project is located: (i) pre-investment, which extends from the conceptual stage to the moment prior to the announcement of the selection process; (ii) bidding, which runs from the publication of the call for bids to the contract signing for the project implementation; (iii) execution, which extends from the execution of the contract to the start of operations (in case of asset rehabilitation of projects in operation, the stage is updated once the rehabilitation is delivered); and (iv) operation, which extends until the contract termination date.
• Sub-stage. It is the development or operation sub-period in which the project is located.
7 UPDATING OF THE POLICIES. These Policies are updated from time to time by BANOBRAS according to its experience and the prevailing conditions, while its disclosure is made through Mexico Projects Hub.