Andrea Navarro, Bloomberg News

MEXICO CITY
EnergiuesNet.com 07 27 2022

Mexico President Andres Manuel Lopez Obrador’s flagship Maya Train project will cost up to $20 billion, his second mega infrastructure project to be running wildly over-budget amid setbacks and soaring inflation.

Lopez Obrador announced the new $15 billion to $20 billion price tag at a press conference Tuesday, which is as much as 70% higher than the $11.9 billion budget the government had previously announced.

The train’s budget has increased in part because prices for shipping and raw materials have risen steeply. The original route has also undergone several changes and court suspensions amid concerns over the environmental impact from the project, while Lopez Obrador has insisted it be inaugurated by the end of 2023, adding pressure for builders to finish the train at all costs.  

The president’s other key project, the Dos Bocas oil refinery, has also seen its cost spiral out of control to reach as much as $18 billion, more than double its original price tag.

On Monday, Lopez Obrador said Grupo Mexico SAB will no longer be in charge of building the south part of the train’s fifth section, apparently ending a contract with the company worth 15.4 billion pesos ($752 million).

bloomberg.com 07 26 2022