Organizations and Processes
Registration and Prioritization
INVESTMENTS UNIT – SECRETARÍA DE HACIENDA Y CRÉDITO PÚBLICO (MINISTRY OF FINANCE)
The Investments Unit (IU) is an administrative office of the Ministry of Finance that, among other attributions, is responsible for concentrating and managing the pipeline of programs and projects submitted by the entities of the Federal Public Administration, based on assessments, information and priorities. Additionally, this unit analyzes, proposes and promotes investment mechanisms with the participation of public, private and social sectors, in coordination with competent authorities.
These projects must be registered by the IU prior the initiation of the execution stage. To obtain such registration, the IU verifies the socioeconomic viability of those programs and projects that require federal funds by preparing a cost-benefit analysis[1].
In the case of Public Private Partnerships, a value for money determination (the convenience of implementing the project under a public-private partnership mechanism) and a public private comparator must be carried out. It is important to mention that those projects sponsored by state owned productive companies (Pemex and CFE) are not required to be registered by the IU.
[1] The type of analysis may vary accoring to applicable regulation
Types of programs and investment projects registered in the pipeline:
Projects
- Economic Infrastructure Projects
Fixed assets for the production of goods and sevices in water, communications and transport, electricity, hydrocarbons and tourism.
- Social Infrastructure Projects
Fixed assets needed to carry out activities related to education, science and technology, culture, sports, health, social security, urbanization, housing and social assistance.
- Government Infrastructure Projects
Fixed assets required to develop government functions.
- Real Estate Projects
Intended for administrative offices, including operations made under a financial leasing scheme
- Other Investment Projects
Programs
- Acquisition Programs
Acquisition of movable prperty, such as vehicles, office equipment, and IT equipment, among others.
- Maintenance Programs
Actions to keep existing assets in optimal operating conditions.
- Civil Protection Acquisition Programs
Acquisition of movable property, such as smoke detectors, fire extinguishers, and gas detectors, among others.
- Civil Maintenance Protection Programs
- Pre-investment studies
Studies required by an entity to decide the implementation of a program or investment project.
- Environmental Programs
Actions to preserve and protect natural resources and the ecosystem.
- Other Investment Projects
The pipeline of programs and projects of the Federal Government can be accessed through a digital platform developed by the IU.
The programs and projects included in the investment portfolio may be identified by a portfolio code, an application number, or by searching under specific criteria, such as sector (sponsor entity), unit (administrative area within the sponsor entity) and/or name of the federal entity (depending on the location of the program or project).
Public Investment Portfolio
Promotion Strategy for Public Private Partnerships in Mexico (PPP)
Secretaría de Hacienda y Crédito Público
The Ministry of Finance announced the “Promotion Strategy for Public Private Partnership in Mexico (PPP), that the objectives include: achieving a portfolio of high impact projects, promoting PPP projects of the Federal Government, ensuring that the projects are carried out under the principles of transparency and supervising PPP projects in their different stages.
Inter-Ministerial Commission for Public Eexpenditure, Financing and Disincorporation (Comisión Intersecretarial de Gasto Público Financiamiento y Desincorporación, CIGFD)
The CIGFD office coordinates interinstitutional actions to address specific issues that require federal expenditure, specifically investment and financing. These actions intend to contribute to sustainable national growth.
The CIGFD is responsible for making sure that the decisions that affect public expenditure are consistent with the planning of the national development, and for analyzing the impact of these decisions in the performance of the economic activity.
The programs and projects registered in the investment portfolio are fully analyzed by this commission. The CIGFD determines the priority for their inclusion in the Federal Expenditure Budget, as well as the order to be followed for the allocation of resources, seeking the maximization of the impact in social benefits. The criteria followed by the CIGFD is:
- Socioeconomic profitability
- Reduction of extreme poverty
- Regional development
- Concurrence with other programs and investment projects.
The CIGFD is conformed as follows:
Members of the Commission, representing:
- Secretaría de Hacienda y Crédito Público (Ministry of Finance)
- Secretaría de Desarrollo Social (Ministry of Social Development)
- Secretaría de Energía (Ministry of Energy)
- Secretaría de Economía (Ministry of Economy)
- Secretaría de Comunicaciones y Transportes (Ministry of Communications and Transportation)
- Secretaría de la Función Pública (Ministry of Public Administration)
- Secretaría del Trabajo y Previsión Social (Ministry of Labor and Social Security)
Permanent guests: Head of the President’s Office and the Governor of Banco of México (central bank)
Bidding Process
In Mexico, the bidding process of infrastructure projects is leaded by the sponsor of the each project.
At the national level, all tender processes are completely open. Transparency and access to information is provided through a digital online system called CompraNet. As a result of the Energy Reform, state-owned productive companies (Pemex and CFE) have their own information platforms to control their tender processes.
Types of tenders
According to the type of bidder, public tenders are classified as follows:
National tenders: are those were only Mexican companies and individuals can participate. The assets to be delivered should be manufactured in Mexico and must have at least 50% of Mexican content, considering labor cost, raw materials, and any other elements considered by the Ministry of Economy.
International tenders under commercial agreements: are those where only Mexican and foreign companies located in countries with whom Mexico has signed commercial agreements with a government procurement section, can participate.
Open international tenders: are those where any Mexican or foreign company can participate, regardless of the origin of the goods and/or services to be delivered.
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Guidelines to be met by any interested participant in a public tender. These guidelines are published in the CompraNet platform.
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Meetings held by the sponsor to clarify doubts, and answer questions related to the tender. Requests for clarification must be submitted in writing. Every meeting is supported by a minute containing the addressed issues.
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The deadline to submit proposals varies, depending on the type of tender. However, under no circumstances, the period between the request and submission of proposals will not be lesser than 15 working days. Delivery of proposals can be in person or via an encrypted file uploaded in CompraNet. All proposals must include a technical and an economic bid.
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The opening of proposals takes place publicly the date and time specified in the tender guidelines, with in the presence of the bidders. To validate the event, a minute containing the amount of each offer, as well as the contract award date is prepared.
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The sponsor verifies that the proposals meet the established guidelines, and analyzes that bid prices are within market values. Non complying proposals are dismissed.
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The sponsor takes a decision, backed on:
- A list of the bidders whose proposals were dismissed, including all legal, technical, or economic reasons supporting such decision.
- A bidders list, whose proposals were solvent.
- Name of the bidder to whom the contract is awarded, specifying the reasons for such decision.
- Date, time and place for the signature of the contract.
- Date, time and place for the submission of guarantees and advanced payments, when applicable.
- Name, position and signature of the public officer that prepared the minute.
Prior to the execution of any project that involves construction activities, an Environmental Impact Assessment (EIA) must be obtained, certifying that the project complies with the environment guidelines issued by the Ministry of Environment and Natural Resources (SEMARNAT). An EIA describes the environmental conditions prevailing prior to the execution of the project in order to determine the potential impact that the execution of such project might have in the environment. This document proposes required measures to prevent, mitigate or compensate such impact, and is issued by the Director of Environmental Impact and Risk of SEMARNAT.
CompraNet
CompraNet is an electronic system of governmental public information on acquisitions, leases, services, public works and services related to them, through which transparency and agility are given to the acquisitions of the public administration, allowing the monitoring of all interested parties since the publication of the announcement until the corresponding ruling.
Through CompraNet you can check current tenders, monitor tenders throughout the process, historical results of the tenders, consult the most relevant data of the contracts and consult the invitations and direct awards made by the various public bodies.
Access to the system is free and anyone can make inquiries related to current bidding processes, as well as awarded contracts. To express interest in any process, it is necessary to register on the platform, following the defined procedures.
Bidders that violate the applicable regulations can be sanctioned by the Ministry of Public Administración (SFP), either through the application of a fine and/or a temporary suspension to participate, directly or indirectly, in bidding processes. The SFP periodically updates the list of sanctioned companies.
CFE
The Federal Electricity Commission (CFE)has its own bidding website for all its investment projects, which can be consulted in the folliwng link:
PEMEX
Petróleos Mexicanos has its own bidding platform, which can be consulted in the following link:
Transparency and Access to Information
Mexico has been concerned in recent years to become a benchmark in terms of transparency and access to public information, an example of this has been the Regional Award for Open Government for the Open Expenditure initiative, within the framework of the Global Summit of the Open Government Partnership (OGP). Likewise, the public administration annually awards the Award for Innovation in Transparency, recognizing the best practices, experiences and/or innovations that the agencies and entities of the federal, state and municipal public administration, as well as legislative, judicial and autonomous agencies finished.
The data contained in the transparency and access to information platforms are linked to accountability and monitoring of processes. It should be noted that Mexico has a Transparency and Access to Public Information General Law.
Datos Abiertos
This is a Federal Government initiative that represents and additional mechanism to obtain and exploit public information. Its objectives are:
- Encourage economic growth.
- Strengthen competitiveness.
- Foster innovation.
- Enhance transparency and accountability.
- Promote citizen participation.
- Guarantee government efficiency.
- Improve public services.
This mechanism was created according to international best practices. Open Data is a free online service, and has sections related to infrastructure investment:
Transparencia Presupuestaria
Transparencia Presupuestaria (Budgetary Transparency) is a digital platform used to monitor public expenditure, as well as the execution of public works throughout the country. This platform was acknowledged by the Alliance for an Open Government with the “Regional Open Government Award”. Among other features, this platform allows the supervision of the exercise of the budget of the 32 states and of federal government entities.
The system includes a section of public works, providing access through an interactive map to those physical infrastructure projects to be located geographically by anyone interested in knowing them and following up once the resources being to be spent. Likewise, they will be able to consult all programs and investment projects, including those that due to their nature cannot be located on a map.
There is also the possibility of consulting the programs and investment projects proposed in the Expenditure Budget Project for the following year as well.
Likewise, all public programs and investment projects can be consulted, as well as those included in the Expenditure Budget Project.
Instituto Nacional de Transparencia, Acceso a la Información y Protección de Datos Personales (INAI)
All government and financial entities have the obligation to report to regulatory agencies for their public disclosure, the execution of tenders and agreements. The INAI is responsible for revealing the information originated by federal public entities, from administrative structures to service agreements, procedures, audits, and their legal framework, as well as for training public employees regarding transparency matters. Training courses are mandatory for all public officers.
INAI’s Plataforma Nacional de Transparencia (National Transparency Platform, PNT) reveals any information of the Federal Government related to contact directory, procurement processes, reports, salaries, normativity, subsidies, services, concessions and licenses, in compliance with the Transparency and Access to Government Information Federal Law.
