What Happened: Mexican citizens participating in an informal referendum sponsored by President Andres Manuel Lopez Obrador have voted to permit construction of the Huesca natural gas-fired power plant in Morelos state to proceed, El Financiero reported Feb. 25. According to the final results, 59.5 percent of voters supported the project.
Why It Matters: A cancellation of the infrastructure project would have significantly hampered investor confidence in Mexico. However, investment risk in Mexico will likely remain high as Lopez Obrador is moving ahead with additional public referendums on energy and public works projects.
Background: Lopez Obrador previously announced the referendum as part of a broader strategy to hold an increasing number of local votes on the fate of infrastructure projects and power plants.
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- Mexico: A Budget Proposal's New Plan for Energy (Dec. 17, 2018)