Mexican president waives authorizations, permits and license requirements for government public works

On November 22, 2021, Mexican President Andrés Manuel López Obrador issued a broad decree that requires all Mexican federal agencies and entities to grant “provisional” authorization for public works projects.  Published in the Federal Official Gazette (Diario Oficial de la Federación), the decree declares that such projects are a matter of public interest and national security, as well as a strategic priority for national development.

The decree instructs the Mexican federal government to authorizations, permits and/or licenses for the initiation of infrastructure projects and public works within five days of its entry into force on November 23, 2021. Said provisional authorizations shall be in force for 12 months; thereafter, a “definitive” authorization shall be obtained.

Any infrastructure projects promoted by the current administration could be authorized in lieu of the corresponding studies and assessments (eg, transparency, budgetary, social and/or environmental) set forth in the applicable legislation. In other words, by means of the decree, President Lopez Obrador seeks to skip any authorizations, permits and/or licenses set forth under the laws enacted by the Mexican Congress. Moreover, any relevant documentation and information on such projects would not be subject to disclosure to the public.

Some scholars and recognized practitioners have voiced their concerns with these developments, stating that the broad decree is unconstitutional and thus may not stand in courts. They argued that amparo constitutional review actions and/or constitutional controversies may be filed against it by affected private parties or other government agencies, respectively.

If you have any additional questions, please the contact authors of this article or contact DLAPiperCommodities@dlapiper.com.