situation report

Mexico: Lopez Obrador Plans Referendum on $628 Million Power Plant

1 MIN READFeb 8, 2019 | 22:35 GMT

What Happened: Mexican President Andres Manuel Lopez Obrador is planning to hold a referendum on Feb. 23-24 on the construction of a $628 million power plant in Morelos state, Natural Gas Intel reported Feb. 8. Although construction on the plant is complete, it has not yet started operations. The referendum will only include residents of 32 towns along a 171-kilometer (106-mile) pipeline supplying the plant.

Why It Matters: Holding the referendum would significantly erode investor confidence in Mexico as the plant has already attracted considerable funding and halting the project would be a sign of increasing regulatory risk despite previous assurances.

Background: Lopez Obrador's government has already held informal referendums, including a vote on the construction of a new airport in Mexico City in 2018.

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