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Mexico awards $7bn telecom PPP

A group including Morgan Stanley Infrastructure and the China-Mexico Fund has won a contract to build a network accessible to 92.2 percent of Mexico’s population.

Mexico has awarded a $7 billion telecoms project to a consortium including a Morgan Stanley Infrastructure fund and a joint China-Mexico venture.

Altán's Red Compartida group was announced as the winning bidder – as well as the only bidder after its rival was disqualified last week – for a public-private partnership to build a telecom network available to 92.2 percent of the Mexican population.

Altán is financed by a group of players, with the largest stakeholder being a fund managed by Morgan Stanley Infrastructure owning 33.18 percent. The China-Mexico Fund made its second investment since launching in 2014 to take the second largest stake at 23.36 percent. The vehicle is a joint venture that has raised $1.2 billion, $1 billion coming from China. CDPQ, through a joint venture with CKD-IM, purchased a 12.68 percent stake. Local telecom companies Axtel and Megacable each took a 4.01 percent stake.

“This has been a very demanding and transparent tender process, in which Altán proved that it had the most solid and trustworthy bid, surpassing all the minimum requirements by a wide margin,” Altán Consortium representative Eugenio Galdón said. “Red Compartida will soon be a reality that will positively impact the daily lives of millions of Mexicans.”

Construction is expected to begin on 31 March 2018. The contract is a 20-year concession with an option to extend it for an additional 20 years.