NO

ASPECTS

DESCRIPTION

4.

Available Sectors

• Economic Infrastructure Projects for the provision of services to the public sector or final user.

• Social Infrastructure Projects for the provision of services to the public sector or final user.

• Governmental Infrastructure Projects for the provision of services to the public sector or final user.

• Buildings projects for administrative offices.

• Productive Investment Projects, applied research and technological innovation.

Mexican Constitution reserve to the State economic activities in the energy sector, such as the provision of electricity and activities in oil and gas. Also, the Foreign Investment Law restricts foreign participation in specific sectors to certain percentages of ownership or, to the approval of the Foreign Investment Committee (airports, ports, etc.).

5.

Eligible Tender Participants / Project Initiator

• Any Mexican corporationwith the singular purpose of developing a public-private partnership project (Special Purpose Vehicle/Entity SPV/SPE), with whom held the respective agreement and granted the correspondent authorizations.

6.

Types of PPP Structures/Contract Types

• BOT (Build, Operate and Transfer)

• TBOT (Transfer, Built, Operate and Transfer)

• DBFO (Design, Built, Finance and Operate), in minor scale.

7.

Types of Project

• Pure Project: when the resources to pay for the provision of services to the public sector or final user and the investment, operation, and infrastructure maintenance, come entirely from federal budget.

• Combined Project: when the resources to pay for the provision of services to the public sector or final user and the investment, operation, and infrastructure maintenance, come from federal budget and at least another different source.

• Self-sustainable Project: when the resources for development and project execution come entirely from contributions other than federal budget; private resources, or revenues generated by the project itself.

8.

Project Stages and Implementation for Solicited Proposals

1. Call Publication (Request for Proposals), even through electronic means.

2. The federal entitycould make the participants' registration as well as preliminary revisions to the documentation other than that referred to the financial offer.

3. The bidders will have one or more stages for consultation and clarification, in which the federal entityshould officially answer any questions the participants have submitted.

4. The deadline for proposals submission shall not be less than twenty days from the date of the Request for Proposals.

5. Once the proposals have been evaluated, the project will be awarded to the bidder who submitted the solvent proposal, which is the proposal that meet the legal, technical and economic requirements, in accordance with the criteria set.

6. The decision will be announced at a public meeting at which the contestants could freely attend and will be published in the webpage"CompraNet".

9.

Project Stages and Implementation for Unsolicited Proposals

The Article 26 of the Law on Public Private Partnershipestablishesthat any corporation interested in a public-private partnership project may submit its proposal to the agency or entity competent.

Requirements:

1. To present a preliminary feasibility study that includes:

a. Project Description.

b. Technical, legal, economic and financial feasibility studies.

c. Social profitability cost, under "reasonable assumptions" (Art. 44 Regulation Public Private Partnership Law).

d. Authorizations description

e. Investment estimations and their sources (building and operation stages) and income and expenses estimated flows.

f. Essential agreement characteristics including the proposed scheme of risk distribution between the parties.

2. The competent agency that receives the proposal will have a term up to three months for testing and evaluation. This period may be extended for an additional three months, when the complexity of the project requires.

10.

Mechanisms to Engage Private Sector at Project Development Stages

• The outsourcing of the execution of the work or the provision of services may only be made in the terms and conditions set forth in the rules and expressly agreed upon by the parties and after approval by the contracting agency. In any case, the developer will be solely responsible to the contracting entity.

• The developer may assign contract rights, as a whole or in stages, prior authorization of the contracting agency.

• In public-private partnership projects, the developer will be responsible for the provision of services to agreed performance levels and, where appropriate, construction, equipment, maintenance, and repair-minor and major-, of the infrastructure necessary for the provision of these services.

• Those works and services provided by private corporations under a PPP scheme will not be subject to the Law of Public Works and Services Related neither the Law of Acquisitions, Leases and Services.

11.

Project Appraisal and Selection Process

• To determine whether an infrastructure project may be develop in any specific PPP form, a Cost-Benefit Analysis should be carried out.

• Subsequently, the Eligibility check for PPP Projects method aims to assess the potential of a project to be implemented in the public-private partnership mode. The methodology is mainly based on the factors and variables identification, which an interdisciplinary group of experts should analyze and evaluate, assigning each a rating or value according to a predetermined scale. Based on the values assigned to each of these variables, the method calculates an index (a value), which measures the potential of a project to be developed in PPP mode.

• For PPP projects of the Pure or Combined form resulting on a eligibility index method of 3.1 or more, the federal agencies will be in a position to continue with the implementation of public-private comparator ("Value for Money").