CMIC Presentation to the North American Construction

Federation Conference

Oaxaca, OaxacaMexico

August 17-20, 2011

The Political Situation in Mexico

Contents

1. Political Forces

2. Proposal for APP´s Law

3. Liaison with Legislators

2

Political Situation

Political Forces

In 2010, the PRI goverened 19 states, the PAN 5, the PRD 5 and ALIANZA (PAN-PRD) 3 states.

After the elections on 2011, the PRI is governing in 18 states, the PAN in 6, the PRD in 4 states y ALIANZAS (PAN-PRD 3 and PRI-PVEM 1 state).

2010 2011

Source: Federal Electoral Institute of each state.

3

Political Situation

Political Forces

Election Results for Governor in 6 states on 2011

State Election

Day2011

Ruling Party 2010

Elected Party 2011

Guerrero January PRD PRD

Baja California Sur February PRD PAN

Coahuila July PRI PRI

Estado de México July PRI PRI

Hidalgo July PRI PRI

Nayarit July PRI PRI-PVEM-NA

Note: The Governors are elected by direct citizens vote. The term is for six years . There is no re-election. There are 32 states (EF).

Source: Federal Electoral Institute of each state.

4

2010 2011

5

PAN 18.2 PAN 18.5

PRD 20.9 PRD 18.2

PRI 49.9 PRI 51.3

ALIANZA 11.0 ALIANZA 11.9

PAN 17.2 PAN 20.6

PRD 24.5 PRD 24.2

PRI 51.2 PRI 51.3

ALIANZA 7.1 ALIANZA 3.9

PAN 16.7 PAN 19.3PRD 16.2 PRD 14.9

PRI 60.7 PRI 61.2

ALIANZA 6.4 ALIANZA 4.6

Political ForcesAccording to the state governments

Total Population (until first quarter

of 2011:115 millions of

people )

Total GDP (until first quarter

of 2011:1,126 billions of

dollars)

GDP Construction

(until first quarter of 2011:

76 billions of dollars)

Source: Management of Economy and Finance CMIC with IFE and INEGI data.

Political Situation

(Percentage %)

(Percentage %)

(Percentage %)

Political Situation

ConceptHouse of

Representatives 1/ %

Total 500 100.0

PAN 206 41.2

PRD 127 25.4

PRI 106 21.2

PVEM 17 3.4

Otros 44 8.8

ConceptHouse of

Representatives 1/ %

Total 500 100.0PRI 237 47.4PAN 143 28.6PRD 71 14.2PVEM 22 4.4Otros 27 5.4

Senate 2/ %

Total 128 100.0

PAN 52 40.6

PRI 32 25.0

PRD 26 20.3

PVEM 6 4.7

Otros 12 9.4

Senate 2/ %

Total 128 100.0

PAN 52 40.6

PRI 32 25.0

PRD 26 20.3

PVEM 6 4.7

Otros 12 9.4

2007-2012

2006-2009

2006-2009

2007-2012

(Without changes)

Source: Management of Economy and Finance CMIC with IFE and INEGI data.

6

No party has a relative majority, they all require some type of alliance or votes from other parties to approve initiatives.

Required Votes: 50%+1 of the representatives, except in some cases when a qualified majority is required. (two thirds of the votes) 66.6% = 329 votes. For example, Constitutional reforms or naming an interim president. In the Senate: 50% +1 or 66.6% =85 votes.

Political Forces

Proposal of a law APP´s

Political Situation

The CMIC supports the proposal of a law PPP´s

● There is currently a Public Works Law in Mexico, but not a law of PPPs.

● There is the need for a legal regime to regulate PPPs.

● Guarantees are required for the proper distribution of risks between the public and private sectors.

7

Link to legislators

Link to Legislators

• Open dialogue with the committees for the House and Senate

• Regular meetings on the agenda of infrastructure and solutions to their problems..

8

Political Situation

Link to legislators

Link to Legislators

9

Political Situation

CMIC signed a collaboration agreement with the House of Representatives

House of Representatives

10

1. Expenditure´s Budget of Federal Government: 2012

2. Security Social Law

3. Federal Labor Law

4. APP´s Law

5. Bank of Development Law

Political Situation

Link to legislators

Proposed Legislative Issues in 2012

CMIC Presentation to the North American Construction

Federation Conference

Oaxaca, OaxacaMexico

August 17-20, 2011

The Political Situation in Mexico