On June 29, 2018, the final bidding guidelines for Mexico’s telecommunications backbone network (Red Troncal) project were released.

Final Guidelines

Pursuant to the final bidding guidelines, potential bidders will need to submit a performance bond for $80 million pesos (considerably lower than the amount established in the preliminary guidelines, which was $200 million pesos).

Minimum coverage must be of at least 80 percent of Mexico’s national gross population (regardless of territory). All potential bidders must obtain a favorable opinion in antitrust matters in order to submit a proposal for the bid. A Mexican SPV must be formed by the winning bidder to receive the PPP contract and license. A group of bidders may participate together as long as a consortium is created and all members provide the documentation required under the guidelines.

Relevant Dates

Application for antitrustapproval

On or before August 2, 2018

Antitrust favorableopinion

On or before October 8, 2018

Bid proposals

October 10, 2018

Results

October 24, 2018

Execution of PPPAgreement

November 23, 2018

Commercial Operation Date

Within 270 days after execution