Subject category:
Ethics and Social Responsibility
Published by:
Harvard Kennedy School
Length: 15 pages
Share a link:
https://casecent.re/p/7801
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Abstract
The combination of growing infrastructure needs and limited ability to finance them publicly has led governments in developing nations to turn to private investors. Highways, in particular, have been built as toll roads and operated as private concessions. No nation in the 1990s pursued this strategy more aggressively than Mexico, which, between 1989 and 1993, awarded 52 concessions for some 550 kilometres of highway. But when the country is forced to devalue its currency, and projects of highway use fall short, financial problems hit toll road operators and the government is forced to take over operations from 25 concessionaires. This case describes Mexico''s approach and experience, implicitly inviting critique and asking what countries considering similar projects should learn from Mexico experience.
About
Abstract
The combination of growing infrastructure needs and limited ability to finance them publicly has led governments in developing nations to turn to private investors. Highways, in particular, have been built as toll roads and operated as private concessions. No nation in the 1990s pursued this strategy more aggressively than Mexico, which, between 1989 and 1993, awarded 52 concessions for some 550 kilometres of highway. But when the country is forced to devalue its currency, and projects of highway use fall short, financial problems hit toll road operators and the government is forced to take over operations from 25 concessionaires. This case describes Mexico''s approach and experience, implicitly inviting critique and asking what countries considering similar projects should learn from Mexico experience.