USA will invest in natural gas and wind power infrastructure in southern Mexico

Ryan Brennan, Director of Operations of OPIC and Marcelo Ebrard, Secretary of Foreign Affairs, during the signing of the Letter of Intent with the Cooperation of Private Investments Abroad, which took place in Mexico City, on Wednesday, July 10 2019. - (NOTIMEX / PHOTO / JAVIER LIRA / JLO / POL / DURÁN / GDH / SC /)

The Mexican government announced that the first two US investment projects in the south of the country will be for a natural gas plant and wind power mega farm. These two projects are part of the more than 10 billion US dollars promised in December for the region.

The objective of US investments in southern Mexico and northern Central America is to create development to discourage migration to the north and the projects will be carried out through the Overseas Private Investment Corporation (OPIC), US development agency, which combines public and private investments.

The Mexican Foreign Ministry explained in a statement on Wednesday July 10, that the two projects completed are the construction of a natural gas liquefaction plant and the creation of a wind power plant, which represent a direct investment of almost 500 million US dollars. It was not stated where exactly will these plants be located.

OPIC’s director of operations, Ryan Brennan, met with Foreign Minister Marcelo Ebrard on Wednesday July 10, and announced that the office will extend financing for $ 52 million USD for micro, small and medium-sized companies in southern Mexico through local banks and institutions, in the form of microcredits, giving priority to projects headed by women.

“By supporting US investment in high-impact sectors such as financial services and energy, these projects will create new economic opportunities in southern Mexico that will empower citizens and build communities,” Brennan said, according to the ministry’s note.

These investments are part of the 10.6 billion US dollars pledged by the United States in December, of which 4.8 will be allocated for the south of the country.

The government of Andrés Manuel López Obrador believes that the investment for the development of Central America is a fundamental point to stop the flow of migrants to the north, which has increased exponentially since the end of last year, and the AMLO administration has not only asked for support to Washington but to other countries and several United Nations agencies as well.

In parallel, the Mexican government has reinforced the actions of detention and deportation of immigrants who crossed illegally through the southern border.

The Yucatan Times Newsroom



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