“Funding Sources: problem or solution?” Case study on the construction of the Light Rail in Guadalajara

Following the latest issue of the Network Industries Quarterly (vol 18 – issue nr 2 – year 2016) dedicated to “Financing of infrastructures in Latin America” FSR Transport is now publishing a Working Paper entitled “Funding Sources: problem or solution?”. In this case study, Mr Jorge Aristóteles Sandoval Díaz, Governor of the State of Jalisco – Mexico, describes the financing of the Light Rail Line 1 of Guadalajara and explains it as part of the local sectoral Program for sustainable mobility.

Abstract 

Aligned with the goals of the Mexican National Development Plan, the state of Jalisco, one of the 32 Federal Entities of Mexico, is rapidly developing. To maintain a proper management of public debt, the government of Jalisco has sought a viable instrument to promote economic growth by generating infrastructure that have a direct impact and that benefit the population.

In this paper, Mr Jorge Aristóteles Sandoval Díaz, Governor of the State of Jalisco, describes the significant adjustments that his government implemented aiming at restructuring state finances and strengthening austerity measures in public spending in order to allocate the resources to prioritizing actions for the benefit of the citizens. In particular, he focuses on the local government’s commitment to give new impetus to investment in infrastructural projects thanks to the sectoral Program called “Movilidad Sustentable” (Sustainable Mobility). This Program looks at the interaction of the public transport with the other actors of mobility (pedestrians, cyclists and car drivers) and sets a model for reorganization and improvement. More concretely, the plan for the “Extension and Modernization of Light Rail Line 1 of Guadalajara” is part of this Program and serves as the case study that Mr Sandoval Díaz uses to explain the idea that public funding can be a trigger for economic development, as long as it is responsibly administered.

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