Client Alert: EPC in the Mexican Energy Market

Due to the effects of the Long-Term Power Auctions, the Oil Bidding Processes and opportunities for transporters, developers and producers to build new conventional and renewable power plants, and rigs and pipelines to supply the demands of new projects, the current trend in Mexico is the construction of the infrastructure needed to supply new markets and fulfill obligations under agreements and awarded licenses. As evidence of this trend, the Mexican government plans to arrange for the construction of 18 new projects in the power generation sector alone (two wind, two geothermal, two hydro, and 12 combined-cycle), likely through engineering, procurement, and construction (“EPC”) contracts.