Natural gas pipeline will spur economic growth and create opportunity
Mexico City, November 8, 2019 – Adam Boehler, Chief Executive Officer of the U.S. International Development Finance Corporation (DFC), today visited Mexico, where he signed a letter of interest to finance a natural gas pipeline developed by Rassini S.A.B. de C.V. in the country’s southern states. The signing ceremony was witnessed by Mexican Foreign Minister Marcelo Ebrard and U.S. Ambassador to Mexico Christopher Landau.
The announcement follows a joint declaration by the United States and Mexico in December 2018 strengthening bilateral cooperation to support private sector investment and foster development in southern Mexico.
Boehler is leading a delegation, also including DFC Senior Advisor for the Western Hemisphere Kristie Pellecchia and National Security Council Senior Director for the Western Hemisphere Mauricio Claver-Carone, to explore private sector investment opportunities and strengthen cooperation with key partners in support of shared goals in the region.
The Rassini pipeline, a $632 million investment, will serve southern Mexico, with the potential to serve other markets in the region in the future. The project will spur economic growth in this region by responding to growing energy needs and supporting the development of the private oil and gas sector.
DFC’s support for part of the project is subject to the agency’s comprehensive review process and the establishment of commercially viable offtake agreements with Mexican utility providers.
“Private sector investment is essential to promoting the development of prosperous, stable, and secure communities across Mexico,” said Boehler. “This pipeline will foster development in the south of Mexico while strengthening energy security and facilitating trade. These advancements will accelerate economic growth and create transformative opportunities in southern Mexico to improve quality of life.”
During the visit, the delegation met with the finance ministers of Mexico, El Salvador, Guatemala, and Honduras. These discussions follow a recent meeting between the ministers, Boehler, U.S.Treasury Secretary Steven Mnuchin, and National Economic Council Director Larry Kudlow in Washington, D.C., in October. The delegation also held meetings with Mexican Foreign Minister Marcelo Ebrard, Chief of Staff to the President of Mexico Alfonso Romo, and private sector leaders.
DFC is a new U.S. government agency that modernizes the Overseas Private Investment Corporation (OPIC). After more than doubling its investment cap to $60 billion and equipped with new financial tools, DFC has more resources and flexibility to invest in priority regions such as Latin America. Boehler was confirmed as the agency’s first CEO on September 26.
As the U.S. government’s development finance institution, DFC supports development through investment. The agency provides financial tools, including loans and political risk insurance, to private sector investors unable to raise sufficient capital due to the risks associated with investment in emerging markets. In doing so, DFC mobilizes private sector capital to projects that advance economic development and foster stability in regions of the world where it is needed most.
The U.S. International Development Finance Corporation (DFC) is financing solutions to the most critical challenges facing the developing world today. Working together with businesses, we mobilize private capital to invest in projects that create jobs and opportunity in emerging markets, including building critical infrastructure, expanding access to telecommunications, and providing small business financing, notably for women entrepreneurs. DFC helps to advance America’s foreign policy by partnering on projects that create economic stability, protect sovereignty, and ensure transparency. DFC investments adhere to high U.S. business standards and respect the environment, human, and worker rights.