AMLO guts National Infrastructure Fund (Fonadin) to buy Deer Park refinery

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On November 15, 2021, President López Obrador modified the purposes of Fonadin in order to acquire the Deer Park refinery.

The government of Andrés Manuel López Obrador took 23 billion pesos from the National Infrastructure Fund (Fonadin), a trust created by Felipe Calderón Hinojosa, for the acquisition of the Deer Park refinery in Houston, Texas.

“The Fonadin transferred to Pemex the resources of the authorized support for the acquisition of the participation of Shell Oil Company (Shell) —in the company Deer Park Refining Limited Partnership,— which was carried out through BBVA Net Cash for an amount of 23 billion pesos”, reveals the bank deposit slip held by Forbes Mexico.

According to the bank transaction document, Banobras SNC National Infrastructure Fund transferred the money to Pemex Corporación Fonadin at 8:00 a.m. on January 14, 2022. 

Petróleos Mexicanos (Pemex) —a productive State company directed by Octavio Romero Oropeza— complied with each of the requirements demanded by Fonadin for the delivery of support, says the National Bank of Public Works and Services (Banobras).

The Mexican oil company delivered a copy of the approval of the Foreign Investment Committee of the United States of America to carry out the transaction for the sale of the shares of the Deer Park Refining Limited Partnership refinery in Texas.

The United States Committee on Foreign Investment (CFIUS) authorized the purchase-sale operation on December 22, 2021, as it had not identified competition or national security risks for the United States.

Also, Pemex delivered the disbursement request indicating its origin, Pemex account information to make the deposit, as well as the names and positions of the Pemex public servants empowered to request the disbursement.

The National Infrastructure Fund delivered the public resources to Pemex since it is classified as a subject of support, in accordance with the operating rules of the financial instrument.

“The Deer Park Refining Limited Partnership refinery in Texas identifies with the objectives and eligible sectors for Fonadin itself,” adds Banobras, the banking institution in charge of managing the trust created by former President Felipe Calderón.

On February 7, 2008, the president who emerged from the ranks of the National Action Party (PAN) created the National Infrastructure Fund Trust, which became a vehicle for investment in infrastructure in communications, transportation, hydraulics, the environment and tourism, construction, conservation, operation and transfer of projects with social impact or economic profitability.

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The purposes of this trust were modified by Andrés Manuel López Obrador on November 15, 2021. That day, the president replaced the expression “hydraulic” with “water” for the purposes of the Fonadin so that there is no doubt that his government participates with entities states, and municipalities to bring drinking water, its sanitation, and flood control

The founder of Morena also requested to change another of Fonadin’s purposes so that it participates in the development of infrastructure projects associated with “energy”. In other words, it allows you to give money to the Federal Electricity Commission (CFE) and Pemex so that they can invest in productive projects.

Three that presidential request, “the creation of the public trust, not considered a parastatal entity, called the National Infrastructure Fund, was ordered, which will be a coordination vehicle of the Federal Public Administration for investment in infrastructure, mainly in the areas of communications; transportation; Water; Environment; Energy; urban, and tourist.

From the first day of his mandate, Andrés Manuel López Obrador said that he will encourage national and foreign private investment, for which he established a framework of legal certainty, honesty, transparency, and clear rules.

AMLO has among his strategic purposes the rescue of Pemex and the CFE so that they can once again operate as levers of national development. This was fulfilled on January 20, 2022, when the CEO of Pemex, Octavio Romero Oropeza, closed the total purchase of the Deer Park refinery, located in Houston, Texas.

In order for the Deer Park refinery to have Mexican administration in its DNA, Pemex acquired 50,005% of Shell’s shareholding.

After the purchase of the Deer Park refinery, the Deer Park Board of Directors was formed, which was made up of different officials from Petróleos Mexicanos.

Those in charge of the Deer Park refinery are Ulises Hernández Romano, CEO of PMI Comercio Internacional; Victor M. Navarro Cervantes, corporate director of Planning and Performance; Marcos M. Herrería Alamina, corporate director of Administration and Services; Jorge L. Basaldúa Ramos, head of Pemex Industrial Transformation, and Manuel Flores Camacho, CEO of PMI North America.

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Source: forbes.com.mx

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