The dependencies federal they destined around five thousand 742 million pesos to repair infrastructure damaged by natural disasters in the first nine months of the year, according to reports from the Ministry of Finance and Public Credit (SHCP). This amount represented an increase of 1.8 percent, compared to the resources disbursed from January to September 2022.
The largest amount transferred was made by Secretariat of Infrastructure, Communications and Transportation (SICT) with a total of two thousand 23.8 million pesos for the reconstruction of roads due to disasters that occurred between 2020 and 2023. These resources meant an increase of 23.4 percent, compared to the reference period last year.
Join the El Sol de México channel on WhatsApp so you don’t miss the most important information
This dependency was followed by Ministry of Culture, that allocated one thousand 955.9 million pesos of its budget for a reconstruction program in archaeological, artistic and historical monuments nationwide due to events that occurred in the years 2017 and 2020.
The third government office with the largest amount transferred between January and September of this year was the SHCP. The office of Rogelio Ramírez de la O spent 1,173.9 million pesos to hire a catastrophic insurance, which would be in force between 2023 and 2024 and will serve to cover damages caused by phenomena natural in the country.
Just a couple of weeks ago, the agency reported that the country has a catastrophic bonus that offers a coverage of up to $485 million, which is activated depending on the category of hurricanes and the level of earthquakes. Additionally, there is a catastrophe insurance policy with an insured sum of five billion pesos to address damages to the health, road, educational, hydraulic, housing and urban sectors.
The bond coverage expires in March 2024 and the second will be valid until July 5 of next year.
Other agencies that made transfers natural disasters were the Navy Secretariats (Semar)that of Environment and Natural Resources (Semarnat)like that of Agrarian, Territorial and Urban Development (Sedatu).
The Semar moved 301.9 million of its budget authorized and added that the money will also be to attend to events that occurred this year, especially for the acquisition of relief supplies.
In the case of the Semarnat Transfers of 285.2 million pesos were recorded for forestry and nursery reconstruction due to events that occurred from 2019 to 2022, as well as “immediate partial support” for the hydraulic sector of state and federal jurisdiction for events observed in 2023.
The Sedatu just allocated 900 thousand pesos for the construction of households at the state level for disasters recorded in 2020 and 2021.
Insufficient resources
Despite the resources that public agencies have and the 61 billion pesos that the federal government will allocate for repairs in Guerrero, Citibanamex considered limited resources, which could imply a slow and partial recovery.
“In our opinion, the resources announced so far by the Governmentequivalent to barely 0.2 percent of GDPseem very far from those necessary for a total reconstruction of the affected area, so they could imply a very slow and partial recovery of Acapulco’s economy,” the bank indicated in an analysis.
In a preliminary estimate, the rating agency Fitch Ratings indicated that losses generated by Hurricane Otis could amount to 16 billion dollars. And although the government has insurance and the catastrophic bond, the rating agency foresees impacts on the banking and insurance sector.
“The agency estimates that the effect of the storm on the Mexican insurance industry is controlled and is within the expectations of the current ratings granted by Fitch,” it stated in a report last week.
➡️ Subscribe to our Newsletter and receive the most relevant notes in your email
In his morning conference, the president Andrés Manuel López Obrador reported that this Wednesday he will meet with the CEO of the hotel chain Brisas Group, Antonio Cosío; the tycoon Carlos Slim; Daniel Chávez of Vidanta; Juan Antonio Hernández of the Mundo Imperial hotels, and with the owner of the Business Coordinating Council, Francisco Cervantes to outline a strategy that allows carrying out the Tourist Tianguis in Acapulco in April 2024.
On Tuesday afternoon, the president arrived at the facilities of the Twelfth Naval zonelocated in the Icacos neighborhood in a helicopter from the Marinewhere behind closed doors he carried out an evaluation of the aid and reconstruction which is carried out in Acapulco.
WE RECOMMEND THE PODCAST⬇️
Available in: Acast, Spotify, Apple Podcasts, Google Podcasts, Deezer and Amazon Music