Monterrey VI Conagua Infrastructure ProjectMultiple media sources in Mexico have reported that the newly elected governor of Nuevo Leon, Jaime Rodriguez “El Bronco” has formally requested the suspension of Monterrey VI as a viable project due to the preconceived notion of cost overruns and risk of state indebtedness beyond project estimates.

Although the mainstream press is quick to portray this significant infrastructure project as indefinitely terminated, the reality is that El Bronco’s transition team needs to quickly get up to speed on their own understanding of the viability and economic feasibility.  The new government will take a very close look at this project that has been under the media and political microscope.  Many groups are for the project while many are against it.

Interestingly though is the legal state and whether the signed contract is actually enforceable by ICA or what the penalties would be for dissolution.

In an interview with CNNExpansion, ICA expressed interest in openly discussing the project with the new government of Nuevo Leon and remained confident that the project would move forward.

If constructed, the water pipeline would reach 372 kilometers in length and cross through San Luis Potosi, Veracruz and Tamaulipas and is estimated to cost approximately $3 billion dollars.

Mexico Infrastructure Projects Forum 2015 in Monterrey Nuevo Leon