Nov. 10 (Bloomberg) -- Macquarie Group Ltd., the Australian investment bank, will join with the Mexican government to create a $1 billion infrastructure fund to invest in the country’s roads, ports and water works, said a Mexican official.

Macquarie and Mexico’s National Infrastructure Fund, known as Fonadin, will “soon” start a risk-capital fund with $500 million and increase it to $1 billion about six months later, Fonadin director Federico Patino said today in an interview.

Fonadin expects to attract four more infrastructure funds in coming months that will raise a total of $2 billion to invest in Mexico, Patino said during the Mexico Business Summit in Monterrey. He declined to identify the investment banks interested in starting the funds.

“We’re already investing in a fund with Macquarie and we’re bringing other private equity funds to Mexico to invest in infrastructure,” Patino said.

A spokeswoman for Macquarie in New York, Paula Chirhart, said the bank expects to start the fund in the fourth quarter with international and Mexican investors. The fund aims to eventually raise 15 billion pesos ($1.1 billion), Chirhart said.

Mexico is counting on an increase in infrastructure spending to help create jobs and make transportation more efficient. The country is seeking investment from private companies in toll highways, ports, water and urban transportation.

In the next four months, projects worth more than 60 billion pesos will be put out for bid, Patino said. The projects include a package of highways in northern Mexico and a waste- water treatment plant near Mexico City.

Fonadin has spent 2 billion pesos on feasibility studies to help quicken the pace of project awards, Patino said. Mexico’s pension funds now can invest in infrastructure projects, which will boost funding, he said.

To contact the reporters on this story: Thomas Black in Monterrey at tblack@bloomberg.net;

Last Updated: November 10, 2009 17:33 EST