July 7, 2008

Mexico needs Canadian construction expertise, says EDC

VINCE VERSACE

staff writer

Mexico and Latin America can be a major resource for work for Canadian construction companies looking to export their expertise, says Export Development Canada (EDC).

“Latin America has to spend seven per cent of its GDP to invest in infrastructure simply to support economic growth and employment,” said Marie-Claude Erian, sector advisor, infrastructure and environment, EDC.

Erian recently updated the Canadian Construction Association’s International Business Committee about the current needs and opportunities in countries like Mexico, Costa Rica and Panama.

In Costa Rica, the total investment in the construction sector in 2007 reached $2 billion and is estimated to grow between 15 and 20 per cent. The Costa Rican government has identified the need to award at least $6.6 billion in new contracts over the next few years, reports the EDC.

Canadian companies of all sizes have already entered Panama to capitalize on work opportunities, Erian said. Panama has an estimated need of US$20 to US$30 billion for new infrastructure over the next five to 10 years.

Mexico launched a five-year national infrastructure program in 2007 that will entail spending a record US$226 billion. The program aims to build and modernize over 17,000 kilometres of highways and country roads, airports, ports, water supply and sanitation and telecommunications infrastructure.

To meet this need, both private and public projects will be necessary because governments in this region “cannot do it alone,” adds Erian.

To illustrate the breakdown between private and public in some project sectors, Erian noted the following:

• For highway work, the Mexican government will spend US$15 billion and the private sector US$11 billion between now and 2012.

• For telecommunications work, the government will spend US$2 billion and the private sector US$23 billion.

• For water supply and sanitation work, the government will spend US$10 billion and the private sector US$4 billion.

• For ports improvements, the government will spend US$1 billion and the private sector US$5 billion.

The working partnerships between Canada and Mexico have already extended to labour needs, the CCA International Business Committee recently reported.

In 2007, Canada and Mexico established a labour-mobility working group that agreed to launch three pilot projects to improve labour mobility between the two countries. The three projects would facilitate the hiring of approximately 2,000 Mexican workers in the construction, tourism and hospitality and financial services sectors.

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