Effective delivery of large infrastructure projects : the case of the New International Airport of Mexico City

214 Pages·2015·3.04 MB·English

by  OECD

OECD Public Governance Reviews
Effective Delivery of Large Infrastructure Projects
OECD Public Governance Reviews
ThE CasE Of ThE NEw INTERNaTIONaL aIRPORT Of MExICO CITy
Effective Delivery of Large
Contents
Chapter 1. The governance of the NAICM project
Infrastructure Projects
Chapter 2. Public procurement strategies and challenges relative to the NAICM project
Chapter 3. Enhancing the integrity and transparency of the procurement process in the NAICM project
Chapter 4. Communications strategy recommendations for the NAICM project ThE CasE Of ThE NEw INTERNaTIONaL aIRPORT
Chapter 5. Plan of action for the implementation of the OECD Recommendations relative to the NAICM project
Of MExICO CITy
Annex A. The EXPO MILANO ex ante control mechanism O
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Annex B. Comments by the OECD on the NAICM websites C
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Consult this publication on line at http://dx.doi.org/10.1787/9789264248335-en. c
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IsbN 978-92-64-24832-8
9HSTCQE*ceidci+
42 2015 22 1 P

OECD Public Governance Reviews
Effective Delivery
of Large Infrastructure
Projects
THE CASE OF THE NEW INTERNATIONAL
AIRPORT OF MEXICO CITY
This work is published under the responsibility of the Secretary-General of the OECD. The
opinions expressed and arguments employed herein do not necessarily reflect the official
views of OECD member countries.
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and to the name of any territory, city or area.
Please cite this publication as:
OECD (2015), Effective Delivery of Large Infrastructure Projects: The Case of the New International Airport of
Mexico City, OECD Public Governance Reviews, OECD Publishing, Paris.
http://dx.doi.org/10.1787/9789264248335-en
ISBN 978-92-64-24832-8 (print)
ISBN 978-92-64-24833-5 (PDF)
Series: OECD Public Governance Reviews
ISSN 2219-0406 (print)
ISSN 2219-0414 (online)
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3
FOREWORD –

Foreword
Infrastructure projects are central to government mandates. Their benefits and risks
can be seen as two sides of the same coin. One side holds a vision and a promise:
increased national competitiveness, better public service delivery and inclusive growth.
On the other side there are risks of mismanagement, waste of public money and
corruption. Because major infrastructure projects can represent the legacy of governments
for generations to come, governments must be particularly attentive to ensure their social
value.
Much of the success of such projects depends on transparency, efficiency and skills.
International experience shows that implementing these principles often remains a
challenge.
The Government of Mexico has called on the OECD to assist the state-owned entity
Airport Group of Mexico City (Grupo Aeroportuario de la Ciudad de México, GACM) to
deliver on its mandate to manage the construction of the New International Airport of
Mexico City. In responding to this request, the OECD brought together practices and
expertise from Member countries on the governance of infrastructure projects, public
procurement, integrity frameworks and the related communication strategies.
This report is part of OECD’s mandate to help governments at all levels design and
implement strategic, evidence-based and innovative policies to strengthen public
governance, respond effectively to diverse and disruptive economic, social and
environmental challenges and deliver on government’s commitments to citizens.
While the GACM is committed to applying international best practices of integrity,
transparency and open government, additional efforts are necessary. The report identifies
several areas for improvement based on international experience.
The report demonstrates the imperative of co-ordinated action from different
institutions and levels of government, as well as systematic stakeholder engagement. A
corporate governance structure replacing GACM’s current organisation would better
address this complex environment. In addition, procurement processes should be tailored
to the magnitude and specificities of the project to ensure effective delivery. Also, a
comprehensive integrity strategy including public and private stakeholders would reduce
the risk of corruption. Finally, strategic and frequent communications are needed to
secure vital social and political support.

EFFECTIVE DELIVERY OF LARGE INFRASTRUCTURE PROJECTS: THE CASE OF THE NEW INTERNATIONAL AIRPORT OF MEXICO CITY © OECD 2015
4
– FOREWORD

Infrastructure projects are multidimensional by nature. Progress made in one area not
only represents an improvement in itself, but also contributes to strengthening other
dimensions that together pave the way for effective delivery of large infrastructure
projects. By providing assistance to the Mexican authorities in this unique project, the
OECD aims to support the government in reaping the direct benefits of better policies for
better lives without taking unnecessary risks and ensuring that the outcomes of the project
reflect the right side of the coin.

Rolf Alter
OECD Director for Public Governance and Territorial Development
EFFECTIVE DELIVERY OF LARGE INFRASTRUCTURE PROJECTS: THE CASE OF THE NEW INTERNATIONAL AIRPORT OF MEXICO CITY © OECD 2015
5
ACKNOWLEDGEMENTS –

Acknowledgements
Under the direction of Rolf Alter, OECD Director for Public Governance and
Territorial Development, and János Bertók, Head of the Public Sector Integrity Division,
this review was led by Paulo Magina, Head of the Procurement Unit; Jacobo Pastor
García Villarreal, Senior Specialist on Integrity and Procurement Policies (Chapter 2);
Matthieu Cahen, Policy Analyst (Chapter 3); and Emma Cantera, Policy Analyst
(Chapter 4). Chapter 5 was written by Luis Carlos Ugalde and Luis Antonio Espino.
Valuable comments were received from Julio Bacio Terracino, Hans Christiansen,
and various staff members from Mexico’s Ministry of Public Administration. Editorial
assistance was provided by Julie Harris. Anaisa Goncalves provided administrative
assistance.
Special thanks are attributed to Mexico’s Ministry of Communications and Transport,
in particular, Gerardo Ruiz Esparza, Minister; and Yuriria Mascott, Deputy Minister, who
took the initiative to establish the project with the OECD.
The OECD expresses its gratitude to the Airport Group of Mexico City for the
constructive leadership and open dialogue held with the OECD and with procurement
leaders, in particular to Federico Patiño, Director General; Jose Luis Romo, Corporate
Director for Planning, Evaluation, and Outreach; Sandra Gonzalez, Deputy Director for
Planning; and all of the Corporate Directors and their staff.
The OECD also thanks Manuel Ángel Núñez Soto, former Director General of the
Airport Group of Mexico City; Ambassador Dionisio Pérez-Jácome Friscione and Maya
Camacho, from the Permanent Delegation of Mexico to the OECD, who were
instrumental in facilitating the co-ordination of the review.
This review is part of a series of governance reviews in OECD and G20 countries. It
benefited from input provided by senior public procurement officials who participated in
discussions in Mexico City.
Particular thanks are given to the reviewers Alan Couzens, Head of Infrastructure
Tracking and Performance, Infrastructure UK, Airports Commission; Chris Howe,
Buildings Procurement Director, Heathrow; Neill Stansbury, Co-founder and Director,
Global Infrastructure Anti-corruption Centre (GIACC); and Denise Bower, Executive
Director, Major Projects Association, who also participated in a series of OECD
workshops to build capacities in the Airport Group of Mexico City.
The OECD Mexico Centre for Latin America, under the leadership of
Roberto Martínez and the staff in charge of publications, notably Alejandro Camacho,
were instrumental in co-ordinating the editorial process for the Spanish publication.
EFFECTIVE DELIVERY OF LARGE INFRASTRUCTURE PROJECTS: THE CASE OF THE NEW INTERNATIONAL AIRPORT OF MEXICO CITY © OECD 2015

7
TABLE OF CONTENTS –

Table of contents
Acronyms and abbreviations .................................................................................................. 11
Executive summary .............................................................................................................. 15
Chapter 1. The NAICM project in perspective ................................................................... 17
Notes .................................................................................................................................. 25
References ......................................................................................................................... 25
Chapter 2. The governance of the NAICM project ............................................................ 27
Background of the Grupo Aeroportuario de la Ciudad de México (GACM) ................... 28
GACM corporate governance ............................................................................................ 28
GACM organisational structure ........................................................................................ 32
Regulatory framework governing GACM ......................................................................... 35
Governance and co-ordination with other government entities ......................................... 37
Stakeholder engagement .................................................................................................... 43
Proposals for action ........................................................................................................... 49
Notes .................................................................................................................................. 68
References ......................................................................................................................... 70
Chapter 3. Public procurement strategies and challenges relative to the
NAICM project .................................................................................................. 73
The public procurement framework in Mexico: a constrained regulatory
environment ..................................................................................................................... 74
Yet it provides opportunities to adapt procurement processes to the magnitude
and complexity of the project .......................................................................................... 78
Infrastructure project requires the involvement of various stakeholders with
distinct and uneven experience ........................................................................................ 86
The packages: From strategy to implementation ............................................................... 90
Procurement carries risks which could affect the project ................................................ 107
Proposals for action ......................................................................................................... 111
Notes ................................................................................................................................ 124
References ....................................................................................................................... 124
Chapter 4. Enhancing the integrity and transparency of the procurement
process in the NAICM project ........................................................................ 129
Awareness of corruption risks is essential for the success of the construction of
the airport ...................................................................................................................... 130
Promoting openness and a culture of integrity ................................................................ 134
Empowering the Internal Control Office ......................................................................... 147
Integrity of the procurement process reduces corruption risks in all phases of
the cycle ......................................................................................................................... 148
EFFECTIVE DELIVERY OF LARGE INFRASTRUCTURE PROJECTS: THE CASE OF THE NEW INTERNATIONAL AIRPORT OF MEXICO CITY © OECD 2015
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– TABLE OF CONTENTS

Enhancing transparency and access to information in the construction of the
new airport ..................................................................................................................... 161
Proposals for action ......................................................................................................... 168
Notes ................................................................................................................................ 170
References ....................................................................................................................... 171
Chapter 5. Communications strategy recommendations for the NAICM project ........ 173
The need for a solid communications strategy ................................................................ 174
Main communications actions of the NAICM ................................................................ 175
Media coverage ............................................................................................................... 178
The website ...................................................................................................................... 179
Perceptions of key stakeholders ...................................................................................... 184
Challenges ahead ............................................................................................................. 189
Assessment of the Internet site ........................................................................................ 191
Communications responsibilities and capabilities ........................................................... 191
Internal communications ................................................................................................. 192
Proposals for action ......................................................................................................... 194
Notes ................................................................................................................................ 197
References ....................................................................................................................... 198
Chapter 6. Plan of action for the implementation of the OECD recommendations
relative to the NAICM project........................................................................ 199
Governance ...................................................................................................................... 200
Procurement ..................................................................................................................... 201
Enhancing the integrity and transparency of the procurement process ........................... 202
Communications .............................................................................................................. 204
Annex A. The EXPO MILANO ex ante control mechanism ............................................ 205
Annex B. Comments by the OECD on the NAICM websites ........................................... 208

Tables
Table 1.1. The NAICM in perspective ................................................................................... 18
Table 1.2. NAICM capacity ................................................................................................... 21
Table 2.1. Regulatory framework applicable to the governing of GACM ............................. 37
Table 2.2. Standard of living in the East Zone vs. the metropolitan area of
Mexico City (2010) .............................................................................................. 39
Table 2.3. Consulted airport users and government institutions ............................................. 45
Table 3.1. Procurement related responsibilities per GACM corporate directorate ................. 87
Table 3.2. Different types of infrastructure delivery models .................................................. 91
Table 3.3. Benchmark of timeframes for main milestones of infrastructure
procurement in Australia .................................................................................... 103
Table 3.4. Risks and mitigation measures ............................................................................ 123
Table 4.1. Public servants of the Federal Government code of ethics and GACM
code of conduct ................................................................................................... 136
Table 4.2. Corruption risks associated with the different stages of the procurement cycle.. 149
Table A.1. Procurement procedures reviewed by UOS ........................................................ 206

EFFECTIVE DELIVERY OF LARGE INFRASTRUCTURE PROJECTS: THE CASE OF THE NEW INTERNATIONAL AIRPORT OF MEXICO CITY © OECD 2015