Infrastructure Program for Tourism Development Areas


                               MEXICO



SECTOR:             Tourism

PROJECT NAME:       Infrastructure Program for Tourism Development Areas
                    (781/OC-ME)

TOTAL COST:         $300 million

FINANCING:
      IDB           $150 million
    LOCAL           $150 million

DATE OF APPROVAL:   November 10, 1993

GENERAL DESCRIPTION:The main objectives of the program are to:  (a) im-prove
                    Mexico's share of the world tourism market; (b) pursue
                    economic development in several areas of the country
                    (located in the states of Oaxaca, Quintana Roo, Guerrero
                    and Baja California Sur), which are among the least
                    developed but possess a comparative advantage and
                    considerable potential for tourism; (c) ensure that
                    investment in tourism facilities in the target areas
                    occurs in an orderly fashion, with particular emphasis on
                    protection of the environment; and (d) increase the
                    participation of the private sector in developing and
                    operating tourism facilities.  The program's secondary
                    objectives are to:  (a) retain populations in their place
                    of origin; (b) redirect migratory flows; and (c)
                    contribute to the balance of payments.

                    This program will finance the expansion and consolida-
                    tion of four tourism centers of the National Tourism
                    Development Fund (FONATUR) by means of direct invest-ment
                    in infrastructure works and new tourism projects. 
                    Financing will be provided for investments in primary
                    infrastructure and installation of public services (water
                    and sewerage services, wastewater treatment, 

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                    electricity, transportation, telecommunications) lead-ing
                    to the sale of new sites and the application of tariffs
                    to recover the cost of the investments; and the execution
                    of works or actions for the environ-mental protection of
                    the tourism centers.

                    NOTE ON PROCUREMENT:

                    International competitive bidding will be used when the
                    value of goods to be procured exceeds US$250,000 or the
                    value of construction works exceeds US$5 million.

CIVIL WORKS:        The program includes two components under the multi-ple-
                    works category:  (a) consolidation of existing centers;
                    and (b) new comprehensive tourism projects.  In the first
                    case, the infrastructure works mentioned above will be
                    executed.  The private sector will develop detailed
                    designs for the infrastructure and superstructure of
                    hotel and tourism services under the new tourism project
                    component.

CONSULTANTS:        Consulting services will be hired to perform ecologic-al
                    zoning studies and take steps to apply them, as well as
                    to draw up management plans for protected areas and an
                    intermediate evaluation of the environ-mental monitoring
                    system.

GOODS AND EQUIPMENT:Goods and equipment will be purchased to execute the
                    program.

EXECUTING AGENCY:   Fondo Nacional de Turismo  (FONATUR)

ADDRESS:            Insurgentes Sur 800, piso 17
                    Col. del Valle
                    03100 Mexico, D.F., Mexico
                    Telephone:(52-2) 687-0568; 543-5826
                    Fax:      (52-2) 687-9947
                    Contact:  Ing. Amado Rojas
                              Subdirector General de Desarrollo