As a contingency plan to curb immigration, the Mexican government unveiled the first two U.S. investment projects in the south of the country. The $800 million granted for the region would be for the construction of a natural gas plant and a wind energy plant.
The projects agreed by both governments in December hope to receive financial support from the U.S. development agency Overseas Private Investment Corporation (OPIC). The implementation of these projects in the southern part of the country and in northern Central America seeks to reduce poverty rates in the region in order to reduce economic migrants.
Marcelo Ebrard, secretary of foreign affairs of Mexico, and Ryan Brennan, vice president of OPIC, were in charge of endorsing the financing of the projects through the signing of two letters of interest.
According to The Mazatlan Post, the first letter, for 250 million dollars, would generate an additional investment of 150 million dollars for the construction of a natural gas liquefaction plant, while the second letter, for 240 million dollars, would activate the additional investment of 80 million dollars to be invested in the creation of a wind power plant.
The financing also expects to extend the costs by $52 million that would be used to finance micro, small, and medium enterprises in southern Mexico, plus an additional $28 million, for a total of $80 million.
“In total, this would represent an investment of 800 million dollars for the development of the south of the country, a priority of this administration. This investment is the first result of a series of collaborative development actions between the two countries,” said Secretary Ebrard.
Ebrard said, “For us it means that the U.S. government is taking that commitment seriously.”
Brennan said at the press conference that “by supporting U.S. investment in high-impact sectors such as financial services and energy, these projects will create new economic opportunities in southern Mexico that will empower people and build communities.”
The investments are part of the agreements announced by the United States in December, valued at $10.6 billion, of which $4.8 billion would be allocated to the south of the country, according to The Independent.
Mexico News Daily points out that there are currently 12 projects pending review for financing which reach a value of 2.5 billion dollars that are intended to be destined for the south and southeast of the country, mainly in energy, sanitation, agricultural, and maritime industries.