ICA Seeks $800Mln From Investors for Road, Water Projects
Empresas ICA SAB (ICA*), Mexico’s largest construction company, is targeting as much as $800 million from private investors this year for road and water concession projects, Chief Executive Officer Alonso Quintana said.
The company, based in Mexico City, plans to get funding from investors including pension funds instead of holding initial public offerings for the units and concessions involved in the projects, Quintana said in an interview in Davos, Switzerland, where he’s attending the World Economic Forum.
“We want to bring in private investment to our concessions, somewhere in between $500 million and $800 million,” he said. “It’s a lot less complicated than an IPO.”
Investment in infrastructure should begin to pick up as President Enrique Pena Nieto settles into office, he said. Changes to the energy industry promised by the new president, who took office Dec. 1, would allow state-owned oil company Petroleos Mexicanos to double capital investment to as much as $45 billion a year, Quintana said.
A bigger budget for the company known as Pemex is in line with Pena Nieto’s plan to promote an energy bill to boost investment in the company without privatizing it, the state- owned producer said in an e-mailed response to questions.
ICA Fluor, a joint venture between ICA and Irving, Texas- based Fluor Corp. (FLR), has a $150 million engineering contract to help design Pemex’s new refinery in Hidalgo state, Quintana said.
The government is close to beginning the process to build an airport near Mexico City, he said. ICA would be interested in bidding on the project, he said.
ICA was unchanged at 36.87 pesos at the close in Mexico City. Shares have risen 94 percent over the last year.
To contact the reporter on this story: Andres R. Martinez in Davos, Switzerland at email@example.com