Investments to Reduce Emigration
Friday, May 24, 2019
The execution of five energy and infrastructure projects in Southern Mexico and the Northern Triangle of Central America could boost the area's economic growth and slow migration.
The projects discussed now are not new, they have been part of the discussion of the region's businessmen and governments for years, but now they have come back into the discussion, as a possible response to the pressure exerted by the U.S. to solve the migration problems that mainly affect Guatemala, El Salvador and Honduras.

Among the investments needed to promote economic growth in the Northern Triangle of Central America are the construction of a natural gas terminal in Puerto Cortés, Honduras, and a 300 MW power plant, estimated to cost $1.2 billion.

See “Honduras to Join Mexico-Guatemala Pipeline

Another of the works that Cepal proposes to be carried out jointly with Mexico is the development of a line of electricity connection that will improve the transport of energy for the connection Mexico - Guatemala. Another project is the improvement of the border infrastructure between the North American country and Guatemala, in order to have a direct impact in the Petén area.

The other megaproject is the 710-kilometer railway connection from Ciudad Hidalgo, Chiapas, to the Salvadoran port of La Libertad, with 225 kilometers of railway branches connecting cities in Guatemala, Honduras and El Salvador. Finally, the construction of the gas pipeline between Mexico and Central America, which includes 600 kilometers of connections, which would lower energy costs.

Also see “Will Guatemala-Mexico Freight Train Be Reactivated?

Roberto Sagastume, director of Guatemala's National Agency for Development Alliances (Anadie), told that "... There is a logic that Central America can be incorporated into a whole dynamic of industrial development, competitiveness of Mexico and the United States, which are leading markets. The projects have been identified the different phases, as well as the management of demand risks, acquisition of real estate, and economic and financial risks."

Mariano Diaz, logistics consultant, explained that "... since 2000, initiatives have been proposed, such as the construction of a gas pipeline to connect with Central America, electrical interconnection and an intra-Central American railroad. More than 15 years later, these new projects represent a great opportunity for the countries involved."

The key factor that could give a boost to the execution of these projects is the pressure exerted by the Trump administration. Rubén Hidalgo, an analyst at the Central American Institute of Political Studies (Incep), said that "... in the current context there is great media, economic and security "pressure" from the United States on the immigration issue, especially since the arrival of President Trump."

See articles from "The 5 megaprojects proposed by Cepal that benefit Central America" and "Are AMLO's infrastructure projects viable for Guatemala and the region?”.

Request more information:
Last Name*
Telephone (choose your Country):*

Size of the Company:*
Yes, I want to receive a call from a salesperson*
this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423
More on this topic
Guatemala - Mexico Railway Interconnection
March 2016
Although the start date had been was agreed as December 2015, it has now been announced that construction of the roads that connect will Tecun Uman with Chiapas, Mexico, will start in April.
In October 2015 the company Ferrovías
announced that on December 15 it would start the interconnection with the Mexican Railway Company Chiapas-Mayab
, with the aim of "... activating that line so that in the next five years several sections in the country can be extended with profits generated from this first phase. "
Gas Pipeline from Mexico Just Starting Initial Stages
October 2014
At the First Meeting of the Working Group on Gas Interconnection between Mexico and Guatemala it was agreed to boost the studies that will support an eventual pipeline in the Southeast region of Mexico and its extension to Central America.
Although as early as May of this year the government of Guatemala announced the signing of an agreement containing the project details, it is only now that Mexico has officially announced agreements to provide "specific working groups for further analysis on the issues of quantification of current and future demand in Guatemala and in the regional market as well as on the regulatory, financial and commercial, budgetary, and natural gasnaspects."
Central America Gas Pipeline Project Resurfaces
January 2014
The Mexican government is considering constructing a pipeline and eventually a refinery to supply the region.
Miguel Hakim, Mexican Secretary for Latin America and the Caribbean, said his country is considering building a refinery and natural gas pipeline which would cross the isthmus and would be an alternative option for generating power at low cost. Petroleos Mexicanos (Pemex), has $2 billion to invest.
New Partners for Regional Electricity Market
August 2013
Mexico and Colombia could be the next countries to be incorporated into the Electrical Interconnection System for Central American Countries.
The issue will be discussed during a three-day meeting which Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama, countries associated with the Electric Interconnection System for Central American Countries, (Siepac), will have this week.
rail transportation
Key entities
Agencia Nacional de Alianzas para el Desarrollo de Infraestructura Económica Comisión Económica para América Latina y el Caribe (Cepal)
El Salvador Guatemala Honduras Mexico
pipeline Infrastructure productive infrastructureInfrastructure Investment railway interconnectionenergy energy investment Migration EnergyInfrastructure & Construction
Infrastructure Investment
energy investment
Agencia Nacional de Alianzas para el Desarrollo de Infraestructura Económica
Daily Update Government PurchasesDownload brochure (only in spanish)Trade Inteligence Subscriber Access NewsletterContact Us MarketDataMexico Español
2008-2021 ©
Trade InteligenceWho we areContact Us