VIEW FROM THE TOP
BREAKING NEW GROUND IN INFRASTRUCTURE FINANCING MANUEL RODRÍGUEZ Director General at Ainda Energía e Infraestructura
Q: What are the most significant challenges fund
benefit greatly from having a local team that knows how
managers face when choosing projects?
to identify and manage potential projects.
A: In Mexico, even though toll roads appear to be a
330
mature business, revenues are not efficiently managed.
Q: Why is it important to establish a formal investment
Businesses that are elastic to prices and that cannot store
process for potential projects?
capacity must apply price discrimination and establish
A: It is necessary because we believe the fiduciary
various pricing structures to ensure adequate revenue
responsibility
management. There are several toll roads in Mexico that
administrator must be well defined from the outset.
have the ability to generate larger cash flows but lack
Establishing
revenue management. Companies cannot re-establish
ensures the investor is well aware of the fund manager’s
their pricing because they have structured bonds that
responsibilities. Ainda was the first fund manager in Mexico
do not permit new price structures and thus they must
to join the United Nations Principles for Responsible
prepay debt to implement revenue management. Private
Investment and implement a code of conduct and ethics.
equity funds can play an important role in the transition
These components were put in place as a way to establish
until previous leverage is refinanced.
a more transparent relationship between investors and
between the
detail
the of
investor the
and
the
investment
fund
process
fund managers for how activities would be carried out. Q:
What
patterns
have
emerged
in
energy
and
The role the government plays in ensuring that these
infrastructure that make it optimal for investment?
types of measures are put in place by investment funds is
A: The new legal environment will produce opportunities
as important as sectoral cooperation.
not only in oil and gas but also in power. With the new PPP law, there are opportunities for many new projects
Q: How will financial vehicles and project partnerships
such as the relocation of existing infrastructure, large rail,
impact the development of Mexican infrastructure?
multimodal developments and airports. The government’s
A: Fibra E is an excellent financial instrument but there are
weaker financial situation is caused by accounting for
very few potential assets that can actually be transferred
cash flow liabilities instead of assets. It is optimal for
into a Fibra E. There are many physical assets that have
the government to monetize brownfield assets and then
yet to produce cash flow under the new legal system and
use the proceeds to build new infrastructure. The last
thus have no proven track record. Although those assets
administration carried out the privatization of the FARAC
may be old, they should not be considered mature. Fibra E
toll roads and it is likely that these actions will continue
and CKDs are not mutually exclusive but complementary,
with airports as well as toll roads.
and in the future CKD investors could divest into a Fibra E. These financial vehicles are far more effective when used
Q: What strategic alliances is Ainda creating as it positions
together to invest in diverse infrastructure projects.
itself in the energy and infrastructure markets? A: Ainda has joined forces with Goldman Sachs Merchant
Joint ventures and USPs are generating a presence in the
Banking Division and we are preparing a package of CKDs
Mexican infrastructure market and will increase the number
for energy and infrastructure valued at over MX$21 billion
of projects in the country. If an investor proposes a joint
(US$1.1 billion). We formed this strategic alliance with
venture to PEMEX or CFE, the project can go forward without
Goldman Sachs to meet our fiduciary responsibility to
a bidding process as long as the company’s board approves
our investors and as a way to embrace the opportunities
the project. When carrying out a project with the Ministry
that present themselves. The countless prospects that
of Transport, the project could fall under a PPP scheme as a
are developing in Mexico will create demand for our
USP and the company that took the initiative could have an
expertise in the Mexican market and Goldman Sachs will
advantage in the bidding process.