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“Transport Infrastructure. Experience in Public-Private Partnerships (PPPs). ”
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The firm has achieved a high specialization in the successful Public-Private Partnerships projects, representing accordingly, the private sector or public sector at different government’s levels. The firm is recognized in the community as a leading firm in this activity, both in its creative capacity and innovation schemes, known as problem-solvers with quality work involved, resolving potential conflicts, as well as developing a large number of projects carried out, as mentioned below.
As an example of the firm’s creative work, for their importance in Mexico and innovative features to encourage public-private partnerships, we enumerate the following new schemes successful in the area of transport infrastructure, where the firm was responsible and provided legal advice in their design, conceptualization, documents, bidding rules, supervision and implementation, as follows.
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The "New Scheme for Toll Highway Concessions", by which the Federal Government has awarded various toll road projects. The firm participated in its legal design and structure and it has been applied in the implementation of 10 projects, totaling 715 km in length, with a private investment of approximately $14,930 million pesos. |
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“Projects for Rendering Long-Term Services (PPS)”, known as "Toll Free" and "Combined System". The firm has participated in designing the legal and financial model. It has coordinated 4 out of the 7 projects implemented by the Federal Government (included document design and bidding process), which was first time implemented in Mexico, totaling 443 km, with an investment of $ 4,906 million pesos. Additionally, other project known as highway 1 PPS comprises a package of 10 toll-free installments of state jurisdiction, 813 km, in the State of Durango. |
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By applying the two models described above, the Federal Government has awarded, started operation, under construction and pending for bidding process 28 PPPs´ projects, with a total length of about 1,600 km
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“System 1, 2 and 3 of the Suburban Railway in the Metropolitan Zone of the Valley of Mexico”The firm has participated in the design of legal and financial framework for public procurement and development projects for the public service of passenger rail transport, including the development at an early stage of 78 km of journey and daily transportation of 760,000 passengers and investments of
$2,000 million dollars.
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1. Highways:
a) Carrying out projects of Toll Roads:
In year 2001, the firm was engaged to provide legal advice in the development of the legal financial model known as "New Toll Highway Scheme", under which the Federal Government has, since then, used the international competitive bidding for awarded projects, which have been successfully executed.
Since that year, the firm has participated in 10 projects tendered under the scheme, with 715 km length, to advise the Federal Government or private sector companies, which together represent the largest project of its kind in Mexico conducted by the same law firm.
Using the principles of this model developed by the Federal Government, the firm has provided legal advice to various states in Mexico, for their application to state projects
b) Executing Projects for Rendering Long-Term Services (PPS):
In year 2004, the firm was engaged to provide legal advice to this new model. Implemented in Mexico since then, to upgrade free of toll roads and contributed to the creation of the Combined PPS Scheme (toll-free and fee), which the Federal Government has implemented in international bidding processes that are currently running successfully.
The firm has been retained as legal counsel for a total of 4 out of 7 PPS projects, totaling 443Km., developed by the Federal Government.
Likewise, based on the model developed by the Federal Government, the firm has been retained by various state governments in developing plans for projects within their jurisdiction, such as the PPS 1 comprising a package of 10 toll-free sections, state jurisdiction, 370 Km, in the State of Durango.
The Projects for Rendering Long-Term Services as above- mentioned, represent the largest number of PPS highway projects in Mexico, conducted under the advice of the same law firm, as described later in detail.
c) Distressing Assets:
The model for Distressing Assets as a PPS, which has shown interest by multiple national and international investors, includes the following:
The Ministry of Communications and Transport (SCT) and the Ministry of Finance and Public Credit agree on disestablishing assets of the Trust to Support Rescue Toll Highways (FARAC), against payment of compensation.
• The Ministry of Communications and Transport integrates packages shaped by the network of highways of the Trust to Support Rescue Toll Highways and new toll highways.
• The Ministry of Communications and Transport grants the concession of these packages to the private sector through public tenders and obtains recourses to pay out the Trust to Support Rescue Toll Highways.
• The concessionaire is responsible to operate, maintain and administrate the assets in question and to build and subsequently administrate the new highways that are part of the package. |
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The advantage of the scheme “Distressing Assets” has come to complement successfully the “New Program for the Concession of Toll Highways and the Project for Providing Services (PPS) to attract private investment in highways.
In year 2008, the firm was retained to develop the "Package Center", Distressing Assets which included the concession for the development of 5 new toll roads projects, as well as granting concessions for toll roads in 4 other projects, as described below.
In general, the legal advice provided by the firm to the Federal Government to develop public-private partnerships under the models: Toll Highways; PPS Projects for Rendering Services for Roads and Distressing Assets, consisted as follows:
Conceptualization, design and review, as appropriate, of the New Scheme of Toll Roads and models for Projects for Rendering of Services (traditional or combined scheme) to tender.
• Definition of the applicable legal framework.
• Participation in the identification, allocation and quantification of risks.
• Analysis on the legal feasibility.
• Description of the legal characteristics of the project.
• Design, development and review of basic legal documents: Call and General Bases of the Bidding Contest and the appendices of the bidding processes.
• Design, development and review of the Title Concession and its annexes.
• Design, development and review of the PPS Projects for Rendering of Services for Highway contracts and its annexes.
• Update of a cost/benefit analysis from a legal standpoint.
• Preparation of the files for the clarifications of the contracting client.
• Possible provision of additional information.
• Participation in the bidding process: Call, Boards Information, Prequalification, Explanatory Notes amending the basic documents, among other steps.
• Presentation, review and evaluation of the proposals of the bidder.
• Review of post-operative documents, including guarantees, and signature of the Concession Agreement, and where appropriate, legal implementation of the Contract.
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Legal advice provided by the firm for the development of Public-Private Partnership, as follows:
a) Toll Roads:
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| FIRM’S PARTICIPATION ON PROJECTS UNDER THE NEW SCHEME OF TOLL ROADS |
LENGTH (km) |
INVESTMENT (mdp) |
YEAR AWARD |
| Matehuala’s Libramiento |
14.2 |
$428 |
2003 |
| Amozoc-Perote and Amozoc’s Libramiento |
103 |
$1,857 |
2003 |
| Mexicali’s Libramiento |
41 |
$793 |
2004 |
| Morelia-Salamanca |
83 |
$1,751 |
2005 |
| North Mexico City’s Libramiento |
222 |
$5,880 |
2005 |
| Monterrey-Saltillo and Northwest of Saltillo’s Libramiento |
92 |
$2,770 |
2006 |
| East of the City of Chihuahua’s Libramiento |
41 |
$1,451 |
2008 |
| Irapuato’s Libramiento |
29 |
N/A |
2008 |
| La Piedad’s Libramiento |
39 |
N/A |
2008 |
| Ciudad Valles’ Libramiento |
51 |
N/A |
2009 |
| Totals |
715 |
$14,930 |
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mdp: means millions of pesos
b) PPS Roads: |
| FIRM’S PARTICIPATION IN PROJECTS FOR THE PROVISON OF LONG-TERM SERVICES (PPS) UNDER THE “TOLL FREE” SCHEME |
LENGTH (km)
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PRIVATE INVESTMENT (mdp) |
YEAR OF GRANT AND CONTRACT (PPS) |
| Irapuato-La Piedad |
75 |
$639 |
2005 |
| Querétaro-Irapuato |
93 |
$1,172 |
2006 |
| Ríoverde-Ciudad Valles |
112 |
$3,096 |
2007 |
| Mitla-Entronque Tehuantepec |
163 |
En proceso de licitación |
2009 |
| Package of 10 toll-free spans of state jurisdiction in the State of Durango |
370 |
En proceso de realización |
N/A |
| Totals: |
813 |
$4,906.00 |
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c) Participation in projects under the firm under the Distressing Asset model.
“Package Center”: |
| TOLL ROADS IN OPERATION |
LENGTH (km)
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| Libramiento de Querétaro |
37 |
| Atlacomulco-Maravatío |
64 |
| Chamapa-Lechería |
27 |
| San Martín Texmelucan-Tlaxcala-El Molinito |
25 |
| Totals: |
153 |
| DEVELOPMENT OF NEW TOLL ROADS |
LENGTH (km) |
| Apaseo El Grande-Palmillas |
90 |
| Atizapán-Atlacomulco |
80 |
| La Venta-Topilejo-Chalco |
50 |
| Chalco-Ramal a Atlixco |
100 |
| Panotla-Tlaxco |
40 |
| Indios Verdes-Santa Clara |
6 |
| Totals: |
366 |
| 2. Legal supervision in the implementation of various road projects in Public-Private Partnerships: : |
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The firm has rendered professional legal services with respect to the supervision during the execution of the construction, modernization and expansion, as appropriate, corresponding to various highways, as well as models of PPS roads (under the schemes "Toll Free or Combined "). Currently it performs the following tasks in this regard: |
| MONITORING IMPLEMENTATION OF THE LEGAL TOLL ROADS |
LENGTH(km) |
YEAR AWARD |
Amozoc-Perote, Perote’s Libramiento |
103 |
2003 |
| North Mexico City’s Libramiento |
222 |
2005 |
| Morelia-Salamanca |
83 |
2005 |
| Tepic-Villa Unión |
237 |
2005 |
Northwest Saltillo’s Libramiento and Saltillo-Monterrey Highway |
92 |
2006 |
| Tecpan´s Libramiento |
4.4 |
2006 |
| Totals: |
741.4 |
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| LEGAL ADVICE ON THE ENFORCEMENT OF CONTRACTS FOR SERVICES (PPS) |
LENGTH (km) |
YEAR OF GRANT AND CONTRACT (PPS) |
Querétaro-Irapuato |
93 |
2006 |
| Tapachula-Talismán |
45.1 |
2006 |
| Ríoverde-Ciudad Valles |
112 |
2007 |
| Tepic-Villa Unión |
237 |
2005 |
Totals |
250.1 |
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3. Mass Transportation:
Suburban railway DEL VALLE DE MEXICO: System 1
The firm provided legal advice in connection with the Suburban Railway, which forms part of a Federal Government program that takes 240 km of existing railways in three systems, each with a lead line and lower density lines.
The project is the first of its kind in Mexico and includes a first phase of the stretch to Buenavista Cuautitlán approximately 27 km. long, with an investment of $ 706 million dollars, and for the second stage the stretch Cuautitlán-Huehuetoca, with 20 additional kms.
The suburban railway on the route Buenavista-Cuautitlán-Huehuetoca, has a wide catchment’s area in the north of the MCMA. This would include an immediate 11 municipalities of the State of Mexico and 3 political delegations of the Federal District. The project was awarded in competitive bidding, through the Concession Agreement for 30 years to provide the public rail transport services on the route Suburban Cuautitlán-Buenavista, as well as for the use and exploitation of property, which includes licenses for providing ancillary services as needed.
To develop this important project, the firm provided advice to the Ministry of Transport and Communication with respect to the legal framework for implementing the project Tender Suburban Railway in the Metropolitan Zone of the Valley of Mexico Cuautitlán-Buenavista, as well as conducting negotiations and legal activities for the release of the right of way.
Suburban railway DEL VALLE DE MEXICO: Systems 2 and 3
With the same characteristics of the legal advice that was provided for the System 1, the firm currently is involved in the development and implementation of systems 2 and 3 of the Suburban Railway in the Metropolitan Zone of the Valley of Mexico.
Bicentennial Transmexiquense System
The firm participated in the development of various activities for the development and structuring of the law and financial model applicable to the Bicentennial Transmexiquense System which consists of mass transit corridors passengers being confined by articulated buses.
Legal services rendered by the firm included: the scheme for implementing the infrastructure required to provide this public service; developing a financial and law model to be applied in the various lines of mass transport of passengers in the State of Mexico, on routes with enough passenger demand; the proposed legal amendments to make feasible the application of the model and ensure the removal of barriers, as well as an adequate legal basis for regulating the service that includes the creation of a Mass Transport Regulatory Commission; the development of the business plan on its legal and institutional approaches; the preparation of the Concession Agreement, trust agreement concentrator system revenue, contract fees and access control and the decree to establish the Mass Transport Regulatory Commission; development of the manual operation of the regulatory body of the Mass Transit System of the State of Mexico, declared a need for the establishment of the Bicentennial Transmexiquense System; approval of specific corridors; preparation of the proposed reforms for the legal framework of the State of Mexico for the implementation of the system.
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4. Ports:
a) Commercial Ports
The firm has extensive experience in the commercial ports where it has provided professional services to both the public sector (Federal Government, through the Integrated Port Management companies in various ports, as well as to the General Coordination of Ports and Marine Merchant) and the private sector (domestic and foreign firms operating terminals, providing port services, transferee, licensee and licensees.).
Currently the firm provides legal advice and coordinates the process of international competitive bidding of a partial assignment of contract rights for the design, construction, equipping and operating the new terminal for containers at the port of Manzanillo, which is currently working at the stage of public bidding and it is estimated to be awarded this year 2009.
b) Marines
The firm has participated in audits in which they have reviewed all aspects that affect their operation. Recently there was an audit conducted on 10 marines of private use subject from a grant or any agreements with the Integral Port Administration which should identify the factors that may hinder the sale of the assets that comprise the marine and other legal restrictions. This study involved the review of contracts for operation, for granting the use, exploitation and use of public property, deeds, contracts, and franchise agreements with PEMEX to operate service stations and to supply fuel for boats; demonstrations of impact environmental licenses and municipal and state permits, among other things.
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5. Airports:
In terms of airports, we have provided legal services for negotiating, structuring and drafting the contract for the provision of management services, operation and exploitation of airports, such as the new International Airport Angel Albino Corzo in the State of Chiapas, México.
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