The U.S. Commercial Service’s Mexico offices released the following new reports on Mexico in June and July, 2009. Copies are available at the links below:
In the wake of TSD Loreto Partners, S. en C. por A. de C.V.’s June 6, 2009 announcement that it had suspended all operating and construction activities on the Loreto Bay project, I decided to perform an informal internet-based investigation on the companies involved in the development of the project.
At the top level appears to be The Trust for Sustainable Development, a Canadian non-profit corporation. According to its website, the Trust first identifies and provides seed financing for sustainable projects. It then creates a for-profit company to develop each project. The Trust has developed (or commenced the development of) projects in Canada, the U.S., and, of course, Loreto Bay, Mexico. We did not investigate the projects the website says were developed in connection with the Trust.
The Trust created several affiliated for-profit entities to develop the Loreto Bay project. TSD Loreto Partners, S. en C. por A. de C.V., a Mexican partnership, is the principal Mexican development entity.
The Loreto Bay Company, an Arizona corporation, appears to have initially been the principal U.S. sales and marketing arm for the project. Based on public records obtained from the Arizona Secretary of State, Mr. David Butterfield (who is discussed below) served as Chairman of the Board of the Loreto Bay Company, Mr. James Grogan served as Director and President & CEO, and Mr. David J. Shreene served as Senior Vice President and Secretary.
In January 2007, the Loreto Bay Company was merged into Baja Developments, LLC, a New York limited liability company, the Manager of which is The Trust for Sustainable Development. Upon the merger, Baja Developments, LLC likely became the principal U.S. sales and marketing entity for the Loreto Bay project.
Another entity indirectly involved in the project was a British Columbia entity named Baja Developments Limited Partnership, which was probably Mr. Butterfield’s holding company for his investment in TSD Loreto Partners and/or Baja Developments, LLC.
One or more of Baja Developments, LLC, Baja Developments Limited Partnership, and the Loreto Bay Company likely controls a portion of TSD Loreto Partners, but there is no public document by which we could confirm the ownership structure of TSD. The formation documents of TSD filed in the Public Registry of Commerce in Mexico located in its state of organization would show only the initial partners of TSD and not any subsequent changes in ownership structure (we have not sought to obtain copies of TSD’s Public Registry documents).
Based on the press release discussing the formation of a joint venture between the Loreto Bay Company and Citi Property Investors to develop the Loreto Bay project, we speculate that the remaining portion of TSD is owned by Citi and other persons. However, we would have expected that Citi would have preferred to make its equity investment in the Loreto Bay project through a U.S. joint venture entity, such as Baja Developments, LLC, in order to avoid the difficulty of enforcing joint venture obligations under Mexican law.
The Trust for Sustainable Development is led by Mr. Butterfield, whose LinkedIn profile is available here. The profile indicates that Mr. Butterfield is a Director at Arizona State University’s Global Institute of Sustainability and the President of ICC Power, Inc., which the profile says was formerly International Composting Corporation. The Institute’s website no longer names Mr. Butterfield as a Director and ICC Power, Inc.’s website is under construction. International Composting Corporation has a website, which may or may not be the same International Composting Corporation that Mr. Butterfield is referencing on his LinkedIn profile, but we did not find any mention of Mr. Butterfield on that site. Mr. Butterfield probably has not recently updated his LinkedIn profile.
(Note: Loreto Bay’s developers have taken down the original project website, which may now be viewed via the Wayback Machine.)
Mexico will postpone construction of its planned Punta Colonet port project on the Pacific Coast, and may scrap the project entirely, for lack of financing, according to a Bloomberg report.
The project was the biggest portion of President Felipe Calderon’s pledge to spend 570 billion pesos (US$41.2 billion) in public and private money on infrastructure projects in Mexico through 2012, the report said.
Mexico Law Blog previously reported on the project, the most detailed of which are available here and here.
Cemex, S.A.B. (NYSE: CX), the world’s third largest cement maker, has hired five international financial institutions to help it obtain new credit lines and negotiate amendments to its existing credit facilities, according to a Sentido Comun report.
The banks retained are Banco Bilbao Vizcaya Argentaria (BBVA), HSBC, RBD and Banco Santander.
The announcment forms part of the company’s efforts to extend the maturity dates on its credit lines and buy time to restructure its operations as revenues decrease amid a possible global recession. Cemex is also hoping to exchange approximately US$429 million in peso denominated bonds that mature in the next few months for bonds that mature in September 2011.
Grupo Aeroportuario del Sureste (Asur), S.A.B. de C.V. (NYSE: ASR) has acquired approximately 321 acres of land in Huatulco Bay, Oaxaca state, for approximately US$21.6 million, according to a report in Business News Americas (BNA).
Asur acquired the land on October 20, 2008 from Mexico’s National Trust for Tourism Development (FONATUR). The Mexican government has sought to make Huatulco a new pacific coast tourist hub.
The terms of the acquisition require Asur to build 1,300 hotel rooms on the property over a four-year period, the BNA report said.
Mexican President Felipe Calderon and the National Trust for Tourism Development (FONATUR) have announced the development of a major tourism infrastructure project to be located in the southern part of the Sinaloa State, according to an article at mexicorealestateinvestment.org.
The development plans include four golf courses, two marinas, 44,200 hotel rooms, a five-mile beachfront boardwalk, a light rail, and possibly a new airport. Work is scheduled to begin in 2009 and to be completed by 2025, the article said.
The U.S. Commercial Service has released a report targeted to U.S. businesses on the Punta Colonet port development project. A copy is available here.
Mexico Law Blog has also written several posts on the proposed project, which include a link to the official call for bids.
The bidding for a concession to construct and operate a new airport to be located near the coastal hamlet of Tulum, Quintana Roo, is expected to open before October 31, 2008, according to a Ministry of Communications and Transportation (Secretaria de Comunicaciones y Transportes) official who was quoted in a report in today’s El Financiero.
The report said that the airport will be capable of handling 3 million passengers annually and the concession will be awarded to the company that offers lowest construction and operational costs. The government is expected to announce the winner of the concession in 2009. Construction should be completed by 2012.
Companies expected to submit bids include Mexico’s three major airport operators (which were created in 2005 upon the privatization of the airport management entity): Aeropuertos del Sureste de Mexico, S.A.B. de C.V. (ASUR), Grupo Aeroportuario del Pacifico, S.A.B. de C.V. (PAC), and Grupo Aeroportuario Centro Norte, S.A. de C.V. (OMAB).
Tulum, located in the southern portion of the Mayan Riviera, is home to significant Mayan ruins.
The Diario Oficial de la Federacion (Official Federal Daily) today issued the official call for bids for the Punta Colonet port development project, a copy of which is available here.
The concessions to be granted simultaneously pursuant to the call for bids are:
A concession for the construction, operation and expoitation of a general rail communication line that includes routes originating at Colonet Bay, Ensenada, Baja California with one or two destination points at the U.S.-Mexico border and the provision of public rail cargo service and the permits to provide services relating to such routes;
A concession for management of the port and for the exploitation, use and enjoyment of public property of the federal government that forms part of the port area located in Colonet Bay, Ensenda, Baja California; and
A concession for the exploitation, use and enjoyment of public property of the federal government in the port area located in Colonet Bay, Ensenda, Baja California, and the construction, operation and exploitation of a public use commercial container terminal and the provision of related port services.
Important dates for prospective bidders are September 8, 2008, which is the deadline for requesting admission to the bid orientation meeting, and October 2, 2008, which is the deadline to request paperwork for registration of interested bidders.
Additional information on the Punta Colonet port development is available in Mexico Law Blog posts dated August 28, 2008 and July 31, 2008.
The Export-Import Bank of the United States announced on August 27, 2008 that it had approved a US$80 million medium-term credit guarantee facility to provide financing for up to 85% of purchases of equipment and services by Mexico’s national electricity provider, the Federal Electricity Commission (Comision Federal de Electricidad – CFE), from to be selected U.S. suppliers.
The guarantee provides a great opportunity to U.S. exporters of electric plant equipment and services, which may wish to take a sales trip to Mexico to visit CFE officials and market their wares and services as soon as possible.
More information about the Ex-Im guaranty to the CFE and how it benefits U.S. exporters is available here.
Copyright © 2008 by John Dorsey
Twitter
Feeds (RSS)
Loading ...