ICA is Mexico’s largest engineering, procurement and construction company. Founded in 1947, initially it was focused on the construction of public sector infrastructure. ICA is a wholly-owned subsidiary of Empresas ICA, S.A. de C.V., ICA Group´s holding company. ICA is involved in a wide variety of construction activities including infrastructure (highways, tunnels), water treatment plants, power plants and housing. The company provides a full range of services comprising feasibility studies, conceptual design, engineering, construction management and construction of complex works.

Total project costs are estimated at MX$760 million (equivalent to $72 million). The proposed IFC investment consists of an A-Loan of up to MX$190 million (equivalent to $18.1 million).

13.81 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	13.81
Loan
Equity

* These investment figures are indicative

The project is located in the State of Guanajuato, in the central part of Mexico. The road covers a distance of 74.3 km. Up to 83% of the terrain is relatively flat.

Demonstration effect and replicability of the scheme. The project is the first investment in the road sector where the PPS model of concessions will be tested. As such, the Project is expected to create a positive demonstration effect of the PPS program for future concessions, both in the highway sector and other sectors. Regional development. The road is part of the East-West corridor linking the Bajío Region (State of Guanajuato) in the center part of the country, with the cities of Guadalajara (second largest city in Mexico) in the West, and Querétaro and Mexico City in the East and Center-South, respectively. The road is located in a zone of rich agricultural production, and is connected with the important Bajío industrial corridor. As such, it is an important road for the transportation of agricultural and industrial products to several major cities in the country and to the United States. The expansion and upgrading of the road would contribute to promote the regional exchange of products and regional economic growth. Increased safety and traffic conditions. The project will contribute to improve traffic conditions along the road, reduce congestion and increase safety. IFC’s role in this project primarily lies in: - supporting the GOM in implementing the first infrastructure project under the new PPS scheme; - political risk mitigation given the absence of track record of the GOM in implementing projects under the PPS scheme; and - providing a signal to the market on the bankability of such new and innovative projects.

This is a category B project according to IFC’s environmental and social review procedure. The review consisted of appraising technical, environmental and social information provided by ICA and field visits by IFC staff to the existing roadway. Environmental and social issues associated with this project include: environmental, health and safety management systems; land use and licensing; construction impacts; road safety; and land acquisition for right-of-way;

ICA has presented plans to address these issues to ensure that the project complies with applicable Mexican laws and regulations administered by the Secretaría de Medio Ambiente y Recursos Naturales (SEMARNAT), the Comisión Nacional del Agua, and the Instituto Nacional de Antropología e Historia, as well as the World Bank Group environmental and social policies.
Location of environmental documents in locally affected community
Environmental documentation will be made available at the following location: Calle Las Rosas, #19 Colonia La Loma Pénjamo, Guanajuato Attention: Felipe de Jesús Cardona Tel: (469) 692-7162, (469) 692-7831