Debt for the modernization of the Puebla airport is out

Governor Alejandro Armenta Mier rejected the idea of taking on debt or using the Public-Private Partnership (PPP) financing model for the local airport modernization projects and the construction of the cable bus system.

At a press conference, he reported that, following the assessment, there is no need to resort to lines of credit, and that the administration will carry out the projects using its own funds.

Last week, José Luis García Parra, coordinator of the state cabinet, announced the possibility of applying for a short-term loan to cover the US$86.6 million debt inherited from previous administrations. The debt originated from the construction of facilities such as the Audi plant and the Comprehensive Services Center (CIS) through Public-Private Partnership (PPP) and Service Provision Projects (PPS) schemes.

Similarly, he said that there are no plans to take on any debt, as was done previously with the projects built through the PPS program. Of the US$57.7 million investment for the modernization of the airport, located in the municipality of Huejotzingo, US$23.1 million comes from state funds.

Armenta Mier has stated that there is a financial discipline in place that helps Puebla generate savings for project investments, such as the Puebla airport, which had not undergone any renovations for 40 years since its inauguration.

To manage the funds, a trust was established with Banca Mifel, from which annual contributions will be made to carry out the project; to date, US$2.5 billion has been allocated, representing 37.2% of the total cost.

Furthermore, it is emphasized that, in budgetary and fiduciary terms, the role of the Secretariat of Finance is limited to its capacity as the sole settlor and to the management of transfers of funds to the trust and the payment of fiduciary fees.