The law stipulates that any public project requiring more than 30 million pesos (US$3.28mn) must first have a detailed report about its engineering, design (such as plans and specifications) and environmental and safety features submitted and approved by an independent auditor.
Critics say the requirements will slow down the concession and construction process for planned investments this year, and that the amount of detail required for the projects' approval is unreasonable.
A spokesperson from Mexico's National Cement Chamber was pessimistic about the legislation: "This will almost certainly affect sales for this year, but we can't say by how much yet," he said.
"The [new] law demands a very detailed analysis of projects, to the point where various consultants and studies will be required," Cesar Conde, a director of Mexico's Canacintra industrial chamber, was quoted as saying in local newspapers.
Eduardo Andrade, president of Mexico's Electrical Energy Association, added: "It appears that Congress did not understand the effects that this new law they authorized would have. It demands a level of analysis before approval more precise than that required in any other part of the world."
Spokespeople from major Mexican companies, including state oil firm Pemex, also came out against the new law, saying it will result in less investment in critical sectors this year and the delay of new energy generation sources.
However, Congressman Mauricio Candiani, from the ruling PAN party, defended the new measures. "The reasoning behind the law is to improve the efficiency of government spending on major projects, [and] to avoid hurried concessions and contracts," he said.
The publication of the new law coincided with official data showing that a number of key public sectors spent considerably less than their allotted budgets in 2001, creating a shortfall in new projects and investment.
The Health Ministry was the most frugal, spending only 54.3% of its allotted funds, followed by the Federal District's state energy company Luz y Fuerza (79.8%), and the National Water Commission (82%). Both the Federal Highways and Bridges Commission and the Transport and Communications Ministry failed to allocate 10% of their budgets in last year.
Source: BNamericas.com
