In its bid for infrastructure development, the Mexican government has entrusted some of its most important projects to
Empresas ICA, Mexico’s largest construction and infrastructure operations company.
ICA also has operations in Europe and Central and South America. The company’s portfolio includes highways, hydroelectric plants, ports and airports, subway systems, as well as urban facilities. It was recently awarded the construction of Latin America’s largest water-treatment plant, and a major extension of Mexico City’s subway.
With Mexico’s solid economic track record, Alonso Quintana, ICA’s CEO, looks back on his country’s recent financial history. “We have an independent central bank and the country has had conservative economic management since the 1995 crisis. The budget was kept balanced, and we built up domestic investment funds. Monetary management allowed us to build up large foreign reserves. During the crisis of 2008-09, these economic buffers helped Mexico stay afloat.”
“It is important that people know that in Mexico, trustworthy partnerships can be established, with important companies that believe in teamwork.” Alonso Quintana,
CEO of ICA |
Given this solid foundation, the government is intent on pursuing accelerated infrastructure development. “That gives rise to public-private partnerships (PPPs), where private companies are committed to building and maintaining public infrastructure and the government pays little by little,” explains Mr. Quintana. In this way, the government compensates for the limitations of its own resources. In the past six years ICA’s contracts have multiplied. “These are record years for us with regards to contracts, sales, EBITDA generation – and more than 90% of our projects are in Mexico.
Though not a family business, members of the family have always worked in the company. Mr. Quintana’s grandfather founded ICA with a team of 18 engineers in the 1940s, under the premise that engineering in Mexico needed to be Mexicanized. His idea was that a large integrated organization, based on associate partners, was the only way to obtain important projects. “There is no family control, corporate governance is something that’s been institutionalized,” says Mr. Quintana.
The 60s marked a milestone for the company; ICA convinced the government that Mexico City needed an underground subway system, and French experts were brought in. “Following this move, the company built over 90% of the underground system, which now extends 230 km. The same occurred with the dams in the country.”
In 1992, ICA shares were listed simultaneously in the stock markets of Mexico and New York – it became the first Mexican company to accomplish this. In 1993, the alliance with Texas-based Fluor Corporation was established, and ICA Fluor was created. “It is important that people know that in Mexico, trustworthy partnerships can be established with major companies that believe in teamwork,” says Mr. Quintana.
Current projects include the construction of the convention center that will be the venue for The Group of Twenty Finance Ministers and Central Bank Governors (G-20) Summit in 2012 in Baja California Sur. Though not a huge project, according to Mr. Quintana, time constraints are a challenge: “We have to be sure of our ability to meet the deadline and this is an example that demonstrates our experience.”
Other projects in the pipeline include a new highway to Playa del Carmen, the new Pacific Access Channel for the Panama Canal, and an investment of US$1.5 billion in the biggest water-treatment plant in Latin America, located just outside Mexico City. ICA is also building sustainable housing developments that will add 40,000 homes in the next five years. “We are very aware of environmental matters and are applying this principle to our housing developments. Almost all our projects are sustainable. Some are solar-powered and have their own water treatment facilities, and they are near city centers,” explains Mr. Quintana.
Proud to be Mexican, the company works to train professionals through ICA Foundation’s engineering scholarships. “We are open to the world. We’re local, but at the same time we are good partners for any company looking to develop infrastructure and industrial projects in Mexico,” says Mr. Quintana.
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