Gas pipeline to be constructed by Mexico and countries from Central America’s northern triangle

On 13 March, the governments of Guatemala and Mexico entered into seven agreements to promote sectors including energy, social, tourism and security as part of the official visit made to the country by Guatemala’s president, Otto Pérez Molina, to meet with his counterpart, Enrique Peña Nieto.

Infrastructure works of 600 km are initially planned, running from the city of Salina Cruz (Mexico) to the southern province of Escuintla (Guatemala), with an approximate cost of US$1Bn.

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However, with Honduras joining the initiative, the estimated investment and length will change for the three countries.

Peña Nieto affirmed that the project will allow gas to be distributed to the entire Central American region and pave the way for the generation of economic feasibility at the same time as stimulating development and prosperity for the two neighbouring countries.

Meanwhile, Hernández thanked the team spirit of his opposite numbers, acknowledging that for Honduras the signature of this agreement represents a “true historical milestone” as it will allow close ties with Mexico to be created, consolidating integration with the three countries in the North of Central America and opening up new and important opportunities to transform their economies.

Mexican and Guatemalan civil servants signed two memoranda of understanding to modernise the border infrastructure and to establish a technical working group to perform studies for electricity generation.

In addition they entered into an agreement to avoid double taxation and prevent tax avoidance, as well as another regarding cooperation to combat the illegal traffic of narcotics and a third agreement on technical cooperation for the social development of the border area.

They also agreed the implementation of a specific programme of tourism activities for 2015-2016 and a third additional protocol to the Economic Complementation Agreement between Mexico, Guatemala and El Salvador as regards trade and the transport of natural gas for the adhesion of Honduras to the gas pipeline Project.