Mexico: Government Introduces a Bill Aimed at Boosting Public-Private Investment in Infrastructure

On March 19, 2026, the initiative was submitted as a draft decree issuing the Law for the Promotion of Investment in Strategic Infrastructure for Development with Well-Being, along with various amendments to the Federal Budget and Fiscal Responsibility Law (LFPRH). The most relevant elements from the perspective of administrative and environmental law are highlighted below.

Purpose

The initiative aims to regulate the investment mechanisms intended to promote the development and execution of strategic public infrastructure projects that contribute to national development with well-being, through the coordinated participation of the public, private, and social sectors. It is a regulation of public order and general applicability throughout the national territory.

It is important to note that the law does not, by itself, constitute an autonomous source of budgetary allocation or authorization of spending, financing, guarantees, or financial obligations, all of which must at all times be subject to applicable regulations.

Strategic infrastructure

The support provided under the law will be directed at projects in key sectors such as communications, transportation, water, environment and sustainability, energy, health, education, urban development, tourism, industrial parks, technology, and competitiveness, among others, always aligned with the National Development Plan.

The initiative defines strategic infrastructure as that whose construction, operation, or modernization is essential for economic development, territorial integration, and the efficient functioning of the country, as well as for ensuring energy and water security and strengthening productive resilience. This category includes, among others, logistics, energy, hydraulic, and social infrastructure projects.

Coordination vehicles for investment

One of the pillars of the law is the creation of special purpose vehicles (SPVs), which may be structured as trusts, mandates, or various corporate forms, including corporations and securities vehicles. These instruments will have the exclusive purpose of investing in or financing strategic projects, under criteria of economic and financial efficiency. They may also access capital markets through the issuance of debt instruments, in accordance with applicable regulations.

Mixed participation schemes

The law contemplates various mixed participation schemes in which the public sector may collaborate with the private or social sector at different stages of a project, including financing, design, construction, operation, and maintenance, sharing risks and benefits. Public participation may take various forms—majority, minority, or equal—and may materialize through:

• Long-term contracts.
• Mixed investment schemes.
• Mechanisms provided for in sector-specific legislation.
• Other schemes defined in regulatory provisions.

Environmental implications

From an environmental perspective, the initiative incorporates relevant obligations that reinforce regulatory compliance:

• Projects must include analyses of environmental impact, climate change, urban development, and effects on natural areas, without such analyses replacing the corresponding environmental authorizations.
• The Strategic Planning Council must verify the consistency of such analyses with applicable environmental regulations, including legislation on ecological balance and climate change.
• Environmental protection is expressly recognized as a ground for contract modification.
• Administrative priority is established for the processing of projects, without implying any exemption from compliance with environmental requirements.

This approach confirms that the acceleration of projects is not intended to relax regulatory standards, but rather to optimize their management.

Strategic planning council

The law creates the Strategic Planning Council for Investment in Infrastructure as a permanent advisory body responsible for issuing guidelines, technical criteria, and recommendations. Its membership includes the main economic, energy, environmental, and infrastructure agencies, as well as public financial institutions. It must be established within 120 calendar days following the law's entry into force.

Procurement regime

A special procurement regime is established that applies exclusively to strategic projects, supplemented on a subsidiary basis by existing legislation on public procurement and public works. Proceedings must be governed by the principles of legality, competition, transparency, and efficiency. Contracts may have a duration of between four and forty years, with specific grounds for exception to public bidding being contemplated.

Amendments to the LFPRH

The initiative introduces significant changes to the budgetary framework, including:

• The incorporation of the concept of development-with-well-being projects.
• New reporting obligations on liabilities and financial commitments.
• Greater transparency in multi-year commitments.
• The exceptional possibility of initiating procurement proceedings without prior budgetary sufficiency (conditional).
• Express recognition of multi-year contracts in strategic infrastructure.

Transparency and oversight

The law strengthens transparency and accountability mechanisms, establishing the principle of maximum publicity and information obligations for developers and contractors. It also provides for detailed monitoring in quarterly public finance reports, including physical and financial progress and long-term commitments.

Transitional regime

Among the main points:

• The law will enter into force the day after its publication.
• The implementing regulations must be issued within 180 days.
• The guidelines of the Ministry of Finance will be published within the same period.
• Prior projects may be incorporated into the new framework, subject to approval.

Practical considerations

The initiative represents a structural shift in the infrastructure development model in Mexico, by establishing a comprehensive investment system with strong public-private participation and a centralized governance framework.

From an environmental perspective, it is positive that regulatory compliance requirements are maintained, preventing administrative streamlining mechanisms from resulting in regulatory relaxation.

However, the effectiveness of the model will largely depend on the content of the implementing regulations and the guidelines issued by the Ministry of Finance, which will define the key operational aspects.

It will also be essential to analyze its interaction with the existing legal framework on public-private partnerships, public works, and sector-specific regulation, particularly in the energy and water sectors. In this context, close monitoring of the legislative process and its implementation will be crucial in identifying opportunities and risks for developers and investors.