AMLO approves financing model for US$7.7bn Maya train

The Maya train, a 1,525km rail service President Andrés Manuel López Obrador (AMLO) is proposing for southeastern Mexico, will be financed with public and private funds.

Around 10% of the 150bn-peso (US$7.7bn) investment will come from the federal government and the rest from the firms that win the contracts.

AMLO approved the model earlier this week at a meeting with Rogelio Jiménez Pons, director of national tourism fund Fonatur and responsible for developing the railway, Fonatur said in a release.

Both agreed that the winners of the contracts for each of the line's seven stretches will carry out detailed engineering, construction, and the startup of the project. The firms will also provide maintenance on their stretches for 30 years effective from the start of operations.

A separate contract will be awarded to supply the rolling stock.

The tenders will be open to the largest possible number of participants.

Authorities vowed to respect environmental regulations, especially in the preparation of an environmental impact assessment and the implementation of mitigation and contention measures.

The government is also promising a consultation processes with local groups based on the International Labor Organization's convention concerning indigenous and tribal peoples (C169).