Mexicans choose to cancel mega airport

A majority of Mexicans who participated in the four-day referendum organized by the transition team of president-elect Andrés Manuel López Obrador (AMLO) to decide how to deal with under capacity at Mexico City's Benito Juárez international airport (AICM) voted in favor of cancelling the 285bn-peso (US$14.3bn) project currently under construction in Texcoco.

Some 747,000 people or 69.9% of the 1.06mn voters chose the option of upgrading AICM and the international airport serving Mexico state capital Toluca, as well as building two runways at the neighboring Santa Lucía military air base.

Another 310,463 people supported the option of continuing construction of the new international airport and the resulting closure of AICM. Another 2,722 people spoiled their ballot papers.

AMLO PLEDGES TO HONOR RESULTS

AMLO has announced that his government "will obey the citizens' mandate" and will opt for the Santa Lucía option once he takes office on December 1.

"The decision that the citizens made yesterday is a rational, democratic and efficient one," he told a press conference Monday in Mexico City.

"Since we began analyzing this topic, we made clear that the interests of companies and investors would be safe. There are funds in the existing [airport] trust to back up all the contracts and investment-related commitments," the president-elect said.

AMLO unveiled a recent study prepared by French flight operations and air traffic management solutions firm NAVBLUE, which was commissioned to confirm the feasibility of maintaining simultaneous operations at AICM and the Santa Lucía base and received support from the French government.

"We asked for the French government's help so that a prestigious company could prepare an opinion on this case," AMLO said.

In a letter delivered in person by French foreign minister Jean-Yves Le Drian on Saturday, President Emmanuel Macron said that his government's quick response to help the team of the president-elect was "to show how much we want to prioritize the strengthening of French-Mexican relations," AMLO said.

Among the benefits of cancelling the mega airport, the veteran politician cited the fact that the government will save 100bn pesos, and that the Nabor Carrillo lake will not have to be dried up, saving thousands of birds that nest there.

Works on the chosen alternative will be implemented "right away" to solve the saturation problems "for good, and in a very short time," he said.

Construction of the two runways will be completed and operating in three years, López Obrador said. In addition, the incoming government will build a road to connect Santa Lucía to AICM.

The completion and launch of operations of the rail line connecting Mexico City to Toluca will also help facilitate passenger transport between the three airports, AMLO said.

He said previously he will try to negotiate with the contract holders for the new airport the option of carrying out similar works at Santa Lucía.

The winning airport project will not be put out to concession as "no additional funds are needed given that it will only cost 70bn pesos to build the two runways and the road between AICM and Santa Lucía."

WHAT NEXT?

Also speaking at the press conference, transport minister-designate Javier Jiménez Espriú said that the Santa Lucía-AICM-Toluca airport system will have capacity to handle 60-70mn passengers a year once fully operating.

The incoming minister said that the effects of upgrading the two existing airports will be "immediate," while his team will begin the required studies and planning procedures for Santa Lucía - including environmental and urban impacts.

"We will immediately begin carrying out the detailed study to redesign Mexico City's airspace," Jiménez Espriú said.

He has been designated by AMLO to carry out negotiations with current authorities and contractors to halt ongoing works at the new airport "immediately and in an orderly manner."

Jiménez Espriú said that the rights of the holders of bonds issued for the new airport will be respected, while his team will review the commitments with those who invested in the Fibra E securities issued this year to finance the project.

The current government had only secured 197bn of the 285bn pesos to build the airport, with 60bn pesos already spent in completing 20% of the works. The non-recoverable expenses that still need to be paid amount to 40bn pesos, Jiménez said.

"However, in addition to the [100bn pesos in] savings, we will recoup all the investments made to date in the Benito Juárez airport, which is greater than those amounts," he added.

"The investment in Santa Lucía will be less than 100bn pesos and will be made with absolute transparency, responsibility, and honesty."

The president-elect and his team will now organize discussion sessions with various experts to analyze the best options for the site where the new airport is being constructed to make use of already built infrastructure. The measures to be undertaken will be announced after December 1, when the new government takes office.

The incoming government will also look at ways to compensate "those who have been affected" by construction of the international airport.

In photo: AMLO and members of his transition team attend a press conference on Monday to present the results of the referendum.