Transcript overview of rights of way in mexico and latin america

OVERVIEW OF RIGHTS OF WAY
IN MEXICO AND LATIN AMERICA:
Presented by
Guillermo Manning
Carlos Sandoval
Jesús Sandoval
Introduction
In this session we will review several concepts that affect the process of right of way
acquisition. These concepts are the result of the Mexican normativity and legislation.
First we will review the principles of ownership, since there are some players in Mexico that are
unique.
As second point we will review the kinds of real estate derived from legislation and also the
different types of public registers.
Next we will review the basic legal frame involved in right of way.
Afterwards we will review the acquisition process and we will see the different modes to acquire
land for a right of way project.
Some statistics of the major players of the right of way are presented, and finally the dynamic
of the process is reviewed focusing communities, ownership and negotiation issues.
Principles of ownership
The principles of ownership contained in the Mexican Constitution are:
1) Ownership corresponded originally to the Nation (the State), which has
transferred this to individuals.
2) The Nation can regulate real estate as dictated by public interest.
3) The Nation is directly responsible for the natural resources of the subsoil
(mines, petroleum, gas, nuclear energy), waters (sea, lakes, rivers), which
cannot be transferred to individuals. These resources can be exploited under
concession.
Principles of ownership
4) Concessions are granted both to Mexicans, and to the foreigners who pact with the Mexican
Government to be considered as Mexicans for this purpose and not to invoke the protection of their
Governments.
5) Foreigners cannot acquire the direct ownership of real estate within an area of 100 kilometers
along the borders with neighboring countries, or 50 kilometers along the coast (restricted areas).
–
Modifications to de Foreign investment law states that with the pact corporations could own
within the restricted area to develop industrial, residential and commercial areas.
6) Agrarian property (rural or country properties) consists of various categories; lots of common land
or communal property granted to common land holders or communities, which cannot be negotiated
or belong to individuals. The existence of privately-owned agricultural smallholdings is also
recognized.
Kinds of real estate
In addition to the principles on ownership laid down in the Constitution, the
National Assets Law and Civil Codes mention the existence of two kinds of
property: that of public dominion and that held by individuals.
1) Property of public dominion is that corresponding to the Federation, States
and Municipalities, and to special laws.
2) Property of public dominion can also be: property in common use which can
be utilized by anyone (such as, for instance, air space, territorial waters,
beaches, ports, roads, bridges or monuments).
Kinds of real estate
3) Public dominion property cannot belong to individuals (nor can it be transferred or
prescribed, meaning that it cannot be transmitted or acquired by prescription). In order for
someone outside the Federation to acquire public dominion property (such as property
destined for public service or unencumbered property), such property must be released
from public dominion by means of a disincorporation ruling issued by the President of the
Republic.
4) Agrarian common land nor communal property (which cannot be transferred or
prescribed).
5) Privately-owned property consists of everything not of public dominion (of the
Federation, States or Municipalities), nor agrarian common land nor communal property
(which cannot be transferred or prescribed). This privately-owned property forms the
subject matter of private operations, and is governed under the Civil Codes of each of the
States.
Public Registers
The ownership of real estate is entered in sundry Public Registers, depending
on the type of property in question. These Registers are public, and serve to
make
know
the
action
taken
in
connection
with
real
estate.
For example, the following Registers exist:
1) The Public Register for Property carried in each State of the Mexican
Republic (and at times in certain Municipalities), which records the properties
belonging to individuals. Entered here are the details of the property, such as
location, surface area and boundaries and the name of the owner, the action
under which ownership was acquired (purchase/sale, inheritance), mortgages
or seizures in force over the property and any limitations which may exist in the
dominion (for example, a right of way).
Public Registers
2) The National Agrarian Register is where the documents recording property
operations, amendments and rights over common lands and community lands
are contained, together with legal or official resolutions which recognize, create,
amend of terminate common land or communal land rights and the guaranties
conferred over agrarian property.
3) The Federal Public Property Register records the titles of ownership and
possession of properties belonging to the Federal Government, together with
the decrees incorporating or releasing certain properties from public dominion.
Other Registers
4) Special registers exist for other types of property (assets), such as the
National Public Maritime Register, which lists the matriculations of Mexican
naval vessels and artifacts; the Mexican Aeronautical Register, which records
the documents by means of which Mexican civil aircraft are acquired,
transferred or encumbered and the matriculation certificates: the Industrial
Property Institute in which patents, trademarks and trade names are entered;
and
the
Public
Copyright
Register,
for
recording
copyrights.
5) There are also Registers of Persons, such as the Merchants' Register (not
very common), and the register for associations and corporations. The Public
Register for Commerce lists business associations (the most common being
the stock company). The most important information regarding corporations is
noted, such as name, domicile, purpose and by whom it is represented.
Right of way: normative frame
The legal frame for the Right of way is conformed by the following laws:
Constitución Política de los Estados
Unidos Mexicanos
Artículos 25, 27, 73, 115, 121
Ley Federal de las Paraestatales
Ley de Desarrollo Sustentable
Artículos 1, 11, 46, 58
Artículos 2, 3, 6, 9, 13
Ley del Equilibrio Ecológico y
Protección al Ambiente
Ley de la Comisión Reguladora de
Energía
General de Aguas Nacionales
Ley General de Desarrollo Forestal
Sustentable
Right of way: normative frame (Cont.)
Ley General para la Prevención y
Gestión Integral de los Residuos
Programa Nacional de Medio Ambiente
Código Penal Federal.
Códigos civiles federal y estatales
Plan Nacional de Desarrollo.
Ley Orgánica de Petróleos Mexicanos y
Organismos Subsidiarios.
Ley del Servicio de Energía Eléctrica
Ley General para la Prevención y
Gestión Integral de los Residuos
NORMAS OFICIALES MEXICANAS
Comparative normativity:
Concept
Main law for R/W
Exploitation regime
Participation in profits of
land owners
Mexico
Regulatory law of Article 27
Exclusive for the Sate
None. They´ve got a
unique payment
May be transferred by state to
particular. The states charges rights
equivalent to 30% as royalties
Long term rent contract;
considered as an
associated
The State regulates and promotes the
interstate commerce of oil.
Government awards concessions to
particulars to exploit oil and charges
rights as royalties
Long term rent contract;
considered as an
associated
Venezuela Organic law of hydrocarbons
US
Organic Law of energy Dept.
State awards concessions to
Norway Proposal Nr 43 for energy acts particulars to exploit oil and charges
rights as royalties
Long term rent contract;
considered as an
associated
Council issues rules so that private
companies can have the right to
Arab
Supreme Council of Petroleum
explore an exploit hydrocarbons and
Emirates
charges rights as royalties
Long term rent contract;
considered as an
associated
Article 27
This article states that the property of all land and water within national territory
is originally owned by the Nation, who has the right to transfer this ownership to
particulars. Hence, private property is a privilege created by the Nation.
Expropriations may only be made when there is a public utility cause.
The State will always have the right to impose on private property constraints
dictated by "public interest". The State will also regulate the exploitation of
natural resources based on social benefits and the equal distribution of wealth.
The state is also responsible for conservation and ecological considerations.
All natural resources in national territory are property of the nation, and private
exploitation may only be carried out through concessions.
Acquisition of land for right of way
The constitution of a right of way involves:
• Acquisition of lots
• …from several owners
• …different uses
To develop an specific type of infrastructure
Ways of acquisition
• Easements
• Superficial occupation
• Buy
• Expropriation
Superficial occupation
• Permanent installations of infrastructure built on or
under surface of land
• Defined time length agreed with the owner. In case
of social land the time can not be longer than 30
years.
• Does not allow the use of the land by the owner.
• Ownership is not transferred.
Buy
• Normal buy-sell operation
• Mainly used for roads deployment
Expropriation (condemnation)
Expropriation in Mexico is ruled by two laws::
•
Article 27 of the Mexican Constitution
•
Expropriation Law
This legal frame is applicable to every expropriation, regardless the end use of
the Expropriated good nor the type of ownership, including private and social
owned land (Ejidos)
The following chart shows some of the important differences found between
private and social owned land:
Expropriation
CONCEPT
SOCIAL LAND
PRIVATE PROPERTY
Petitioner
Secretaría de la Reforma Agraria,
as requested by interested
institution
Ministry of the interested institution
Negotiation
Leaders or representatives of the
community
One to one
Options other than
expropriation
Only in case the land has been
converted into private. The first sale
is still considered as social land
Buy
To probe that all negotiation
instances were used.
Main requirement for the
To probe that the lot is specifically
technical file for
ideal for the proposed usage and to
condemnation
public service.
To probe that all negotiation instances were
used.
To probe that the lot is specifically ideal for
the proposed usage and to public service.
Expropriation
CONCEPT
SOCIAL LAND
PRIVATE PROPERTY
Most common source of
inconformity
Value of the land
Value of the land
Most common source of
attack to the process
Value of the land
Suitability
Value of the land
Usual time length to get
the public usefulness
decree
Usual time length if a writ
of amparo is held
Most common
inconformity when the
expropriation is executed
One year
two – five additional years
Payment terms
One – three years
two – five additional years
Payment terms
Public usefulness declaration
In order to start an expropriation process there should be a public
usefulness declaration.
• This declaration must follow the steps shown in the chart below:
• Application together with technical report and project affectations
report. It must describe every single lot
• Public information (20 days for allegations)
• Allegations (15 days for applicant to accept or rebate)
• Reports to other public organisms (20 days report, 15 days to
rebate report and 15 days to respond rebates
• Resolution: about 6 months after application
• Administrative and Contentious resources
RIGHT OF WAY ACQUISITION PROCESS
PROPERTY RECORDS RESEARCH
EJIDO REVIEW OF OWNERSHIP STATUS
LAND USAGE PERMITS
PRELIMINARY
PROJECTS AND SITE
SELECTION
ENVIRONMENTAL IMPACT ASSESSMENT
MASTER APPRAISAL
COST – BENEFIT STUDY
EXECUTIVE PROJECT
BUDGET
NEGOTIATION
NO ACCEPTED
NEGOTIATION
FIRST ROUND
ACCEPTED
OPPORTUNITY
VALUE
ACQUISITION OF
RIGHT OF WAY
NEGOTIATION
2ND ROUND
ACCEPTED
COMISION FEDERAL DE
ELECTRICIDAD (CFE)
The CFE electricity
transmission and
distribution network is
formed by more than
770.4​ thousands of
kilometers for different
powers:
PEMEX
Petróleos Mexicanos (trademarked and better known as Pemex,
Mexican Petroleum) is the Mexican state-owned petroleum company.
Its operation is done throughout four subsidiaries:
• Pemex Exploración y Producción –PEP-(exploration and production)
• Pemex Refinación (Oil Refinery)
• Pemex Gas y Petroquímica Básica (Gas and basic petro chemistry)
• Pemex Petroquímica (Petro chemicals)
PEP
Their main activities are oil and natural gas exploration and
exploitation; conveyance, storage in terminals and first hand
commercialization; these are carried out daily in four geographic
regions comprising the total Mexican territory: North, South,
Northeast Offshore and Southeast Offshore. Worldwide speaking
PEP has the third place on crude production, the first in offshore
hydrocarbons production, the ninth in crude reserves and the
twelfth in incomes.
PEP infrastructure
Pemex Refinación
Pemex
Pemex's
Refinación
(Pemex-Refining)
subsidiary
which
is
a
processes,
transports and markets a wide range of
products derived from crude oil, including
gasoline, jet fuel, diesel, fuel oil, asphalts, LPG,
lubricants and other refined oil products.
Pemex Refinación infrastructure
Pemex Gas y Petroquímica Básica
Pemex Gas y Petroquímica Básica (Pemex) is
Pemex’s subsidiary which processes, transports and
commercializes natural gas, liquid hydrocarbons
(such as liquefied petroleum gas or LPG) and basic
petrochemical products, such as ethane, natural
gasoline and sulphur. Likewise, Pemex Gas offers its
industrial clients several services, among them the
hedge prices of natural gas.
Pemex Gas infrastructure
Pemex Petroquimica
PEMEX
Petrochemicals,
produces,
commercializes,
and
distributes High, and Low Lineal Density Polyethylene, Ethylene
Oxide, Glycol, Vinyl Chloride, Ethylene, Ammonia, Methanol,
Styrene, Benzene, Toluene, Xylem, Para xylene, Propylene,
Orthoxylene and Acrylonitrile to satisfy the demand in the
national market and a part of the international market. Their main
activity are petrochemical non basic processes, derived from the
first transformation of PEMEX Natural Gas, Methane, Propane
and Naphtha
Pemex Petrochemicals infrastructure
Ducts infrastructure
The overall length of ducts amounts to more than 41 thousand
kilometers, having Refining and Gas almost 70% of it.
SUBSIDIARY
PEMEX EXPLORACIÓN Y
PRODUCCIÓN
PEMEX REFINACIÓN
PEMEX GAS
TYPE
OIL
GAS
OIL
POLY DUCT
GAS
PRODUCTS
PEMEX PETROQUÍMICA
TOTAL
LENGTH (km)
4,852
7,656
5,213
8,958
10,307
3,659
742
41,387
SECRETARÍA DE COMUNICACIONES
Y TRANSPORTES
The
Ministry
of
Communications
and
Transportation (SCT) is in charge of highway
infrastructure, transportation (road, aerial,
maritime, train) and communications.
Road infrastructure
CONAGUA (NATIONAL WATER COMMISSION)
Water in Mexico is considered a national asset. Water
administration corresponds to the President of Mexico, who
delegates it to the National Water Commission. The National
Water Commission (CONAGUA) is an administrative, normative,
technical, consultative and decentralized agency of the Ministry
of the Environment and Natural in charge of:
a) Administration of the National Waters.
b) Management and control of the hydrologic system.
c) Promotion of social development in water related issues.
MAIN AQUEDUCTS BY
HYDROLOGIC REGION
Aqueducts length accounts for more than 3 thousand kilometers with an overall capacity of
more than 112 cubic meters per second. Main aqueducts and their lengths are:
NO
AQUEDUCT
HYDROLOGIC REGION
LENGTH
(KM)
CAPACITY
(L/S)
YEAR OF
COMMISSION
ING
1
Río ColoradoTijuana
I Península de Baja
California
130
4,000
1982
2
VizcaínoPacífico Norte
I Península de Baja
California
206
62
1990
3
Sistema
Cutzamala
IV Balsas
162
19,000
1993
4
Sistema
Cutzamala
XIII Aguas del Valle de
México
162
19,000
1993
5
Linares
Monterrey
VI Río Bravo
133
5,000
1984
6
El CuchilloMonterrey
VI Río Bravo
91
5,000
1994
SUPPLIES TO
Ciudades de Tijuana y Tecate y al poblado La
Rumorosa en Baja California.
Localidades de Bahía Asunción, Bahía
Tortugas y poblados pesqueros de Punta
Abreojos en Baja California.
La Zona Metropolitana de la Ciudad de
México con agua de las presas Valle de Bravo,
Villa Victoria y El Bosque, entre otras.
La Zona Metropolitana de la Ciudad de
México con agua de las presas Valle de Bravo,
Villa Victoria y El Bosque, entre otras.
Al área Metropolitana de la ciudad de
Monterrey, N.L., con agua de la presa Cerro
Prieto.
Al área metropolitana de la ciudad de
Monterrey con agua proveniente de la presa
el Cuchillo.
MAIN AQUEDUCTS BY
HYDROLOGIC REGION
NO
AQUEDUCT
7
Lerma
8
Lerma
9
ArmeríaManzanillo
ChapalaGuadalajara
Presa Vicente
GuerreroCiudad Victoria
UxpanapaLa Cangrejera
YuriviaCoatzacoalcos y
Minatitlán
Río HuitzilapanXalapa
Chicbul-Ciudad
del Carmen
Conejos-Médanos
10
11
12
13
14
15
16
HYDROLOGIC REGION
VIII Lerma Santiago
Pacífico
XIII Aguas del Valle de
México
VIII Lerma Santiago
Pacífico
VIII Lerma Santiago
Pacífico
IX Golfo Norte
LENGTH
(KM)
CAPACITY
YEAR OF
(L/S)
COMMISSIONING
SUPPLIES TO
Ciudad de México con agua de los acuíferos
localizados en la zona alta del Río Lerma.
Ciudad de México con agua de los acuíferos
localizados en la zona alta del Río Lerma.
Ciudad de Manzanillo, Colima.
60
14,000
1975
60
14,000
1975
50
250
1987
42
7,500
1991
54
1,000
1992
X Golfo Centro
40
20,000
1985
X Golfo Centro
64
2,000
1987
X Golfo Centro
55
1,000
2000
Ciudad de Xalapa de Enríquez, Ver.
XII Península de
Yucatán
VI Río Bravo
122
390
1975
25
1,000
2009
Localidades de Sabancuy, Isla Aguada y
Ciudad del Carmen, Campeche.
Ciudad Juárez, Chih.
La zona metropolitana de la ciudad de
Guadalajara con agua del Lago de Chapala.
Ciudad Victoria, Tamaulipas con agua
proveniente de la presa Vicente Guerrero.
22 industrias ubicadas en la parte sur del
estado de Veracruz.
Ciudades de Coatzacoalcos y Minatitlán,
Ver. con agua del Río Ocotal y Tizizapa.
Dynamic of right of way
To understand the challenges associated to the acquisition
of right of way in Latin America first of all it is necessary to
recognize that the idiosyncrasy is determined by huge
social, economic, cultural and normativity diversities
Dynamic of right of way
Some statistics of the region are:
• Life expectance 57.2 to 81.1 years
• Mortality index: 4.2 to 9.1 / 1000
• Hospital beds: 0.7% to 8.4%
• Illiteracy index: 1.6% to 43% (Population with 15 years or more)
• Education expenses (% GDP): 1% to 9.8%
• Electric power consumption / inhabitant: 82 to 4,558 kw/h
Main players
Currently the main players are still the
government ministries and institutions, being
private investment mainly in projects for
roads and gas.
Main players
In terms of kind of land acquisition the
projects are:
Type of
project
Buy
Expropriation
Superficial
ocupation
Easements
Usufruct
Roads
X
X
Electricity
X
X
X
X
X
Oil and gas
X
X
X
X
X
Water
X
X
X
X
X
Other players
Starting in 1995 private investment is permitted for
projects involving right of way. Among them it are worth
mentioning:
Sector
Type of projects
# of
concessions
Electricity
Generation for self consumption, renewable
energy
More than
500
Gas and basic
petrochemicals
Transport, storage and distribution of gas and
petrochemicals
27 for
transport
Water
Aqueducts; currently two important projects on
going. One in Jalisco awarded to Abengoa, a
spaniel corporation and one in Veracruz.
2
Oil, oil derivatives
Outsourcing contracts for the construction of
ducts; ROW design, engineering by Pemex.
1
Dynamic of right of way
• Legislations at different stages.
• Legislations with different levels of actualization.
• Disperse or no systemized legislation.
• Legislative multiplicity at different levels of
government: federal, state, municipality.
• Susceptible to political influences.
Communities
• Communities do not trust authorities nor companies.
• Information regarding ducts are scarce and previous bad experiences
with similar projects.
• Negotiation process with frequent delays and unachieved. Payments
were not fulfilled.
• Concern about safety of the community for the duct and potential
accidents.
• Perception of big impact to community life and structure versus scarce
direct benefits; this results in demands of better compensations.
• Politicization of projects resulting in significant community division (pro
and against the project)
• Geographic disperse communities and towns
Communities
• Activism is present in projects
Ownership
•
Excessive
division
of
land.
Too
many
owners
and
negotiations.
•
Land tenure frequently associated to a social justice sense.
•
Frequent cases of irregular occupation of land, including
invading, irregular possession, judicial embargoes, etcetera.
•
Lack of legislation and special judicial procedures to warrant
implementation of agreements and judicial resolutions.
•
External activism.
Negotiation
To analyze the negotiation process it is very
important to highlight the fact that up-to-date it is a
very asymmetric practice, since the owners of the
land area
are mostly passive players who are
affected by other decisions, being social activism a
resource to be considered by them.
Negotiation
Once the fact that their land is going to be a right of way for a project is accepted, it
comes out the issue of the value that is offered to them.
The normativity issued by the National Institute for Administration and
Appraisals for National Goods, Indaabin, states that the appraisal must consider
the soil usage considering the parcel as it is before the infrastructure project, but it
also states that the appraisal must consider the highest and best use. These two
statements might be the clue to understand the source of so many conflicts derived
from the land value in negotiations.
A possible source of conflicts in expropriation processes is that Indaabin is the only
institution that can issue appraisals, what might be considered a interest conflict,
since this institute is part of the Federal Government.
Negotiation
Here we consider worth explaining a very important difference between the
Mexico procedures for acquisition of right of way and those from the US:
•
Right of way include only the land that will be conforming the right of
way, this means that there are no excess properties that should be
resold.
As a result of this criteria the parcels end somehow mutilated and with
limitations to be exploited with the usual business.
This consideration is true for all of the acquisition alternatives
mentioned above.
Negotiation
ROW acquisition operations are quiet the same than those in other countries,
but there are differences that are worth highlighting:
•
During negotiations there are important players that are very focused
community negotiations known as lobbyist, who are in charge of specific
research in the target area to identify conflictive communities, on going
judicial procedures, political trends in the municipalities in the track.
•
Contracts, administrative permits, legal critical path are very specific as
result of the huge differences in normativity requires law consulting services
that are highly specialized
HISTORY CASES
INFRASTRUCTURE PROJECTS
IN MEXICO
IRWA Conference, June 23rd/25th,
La Yesca Dam
La Yesca is one of the largest dams in Latin-America and it is part of
Hydroelectrical National system
“La Yesca”
Localization
Land acquisition
Negotiations were conducted on a one-on-one basis. When the acquisition were in
xxx % there was an stagnation in negotiations mainly due budget exhaustion and
both sides expectations: according to master appraisal CFE was paying too high
and the owners thought that they were not being paid on a fair basis.
We want to highlight the negotiating position of owners, since the negotiations were
for buying their land they felt no need to sell having as result rising of expectations
of value.
Analysis of alternatives.
Bringing into the analysis the owners negotiating position, the importance of those
specific parcels for the project (they were the land for the dam’s arch) several
alternatives were considered assessing social, economical and political impacts, as
well as threats for the projects to evaluate the advisability of an opportunity value
payment.
Next char shows the different options that were analyzed. These options result from
the normativity accepted by CFE
Pago de
Valor de oportunidad
Continuar con
adquisición
Expropiación
Propietario no
acepta oferta
CFE
Cambiar de sitio
Direct cost of project commissioning on time
Losses due to delay in commissioning and selling electricity are obviously increased directly
related to project delay. Next charts show annual losses and also the amount that should be
paid if any option is selected:
CONCEPT
AMOUNT
UNITS
Unitary price (Kw-h)
953.27
$/KWh
Installed capacity at projects end
750.0
MW
5,922.07
hours
Billable capacity
4,441,553.24
MWh
Billable amount
4,234.0
Billable operating hours
Other expenses (/factor)
Annual cost
(millions
pesos)
Years
Amount
Millons Pesos
Opportunity value payment
507.7
0
0.0
(As % of overall
sales)
Expropriation
507.7
2
1,015.4
Change the site
507.7
3
1,523.1
Direct cost and expenses (operation)
Operation
Depreciation
Administrative expenses
3,181.1
451.5
93.7
75.1%
10.7%
2.2%
Total
3,726.4
88.0%
Benefit
507.7
12.0%
Patrimonial damage to CFE
Damages to CFE patrimony estimated assuming that several parts of the project should be remade.
Next chart summarizes these costs:
Concept
Total Estudios
sociales y
ambientales
Costo de
ingeniería
Proceso de
licitación
Costo Total
Pago de Valor de
oportunidad
-
-
-
-
Expropiación
-
-
15,000,000
15,000,000
26,875,500
107,216,000
15,000,000
149,091,500
Cambio de sitio
Delay
In any option in which a delay in project execution the possibility exists that negotiations are
longer and that owners pretensions become higher:
Opportunity Value

Land value

Other goods than land
amount
22,228,241.90
8,786,927.30
Total:
Asked by owners
Opportunity value:
31,015,169.20
54,100,000.00
23,084,830.80
LOSSES DUE TO DELAY IN
SALES
PATROMONY DAMAGE TO CFE
TOTAL
(millions pesos)
(millions pesos)
(millions pesos)
0
0
23.1
Expropriation
1,015.40
15
1,030.4
Change the site
1,523.10
149.1
1,672.2
Opportuniy value
La Yesca Damp.
Continuar con
adquisición
Propietario no
acepta oferta
CFE
Pago de
Valor de oportunidad
Expropiación
Cambiar de sitio
International Mexico City Airport,
AICM.
April 2001 newspapers in Mexico City published the decision to build a new airport for Mexico
City in the area where it used to be the Texcoco Lake. Overall area is 5,500 ha (11,000 acres)
form which two thousand would be for the airport and the rest for remediation and ecological
protection areas. The investment was estimated in 3 thousand millon dollars.
This project was affecting 15 ejidos in the municipalities of Texcoco and San Salvador Atenco
in the State of Mexico and 4 thousand ejidatarios that owned that land and 2 thousand
possessors of land considered to be non-urbanizable. The land was for agricultural uses,
being 900 has irrigated.
AICM.
AICM.
ATENCO
TEXCOCO
CHIMALHUACÁN
AICM.
NUCLEO AGRARIO
SAN FRANCISCO ACUEXCOMAC
NUMERO DE
NUMERO DE
EJIDATARIOS
POSESIONARIOS EN LA
RECONOCIDOS EN ADATEADATE-PROCEDE
PROCEDE
329
0
SUPERFICIE PROMEDIO
POR EJIDATARIO Y
POSESIONARIO (HA.)
(1)
0.83
COL. FRANCISCO I MADERO
111
120
1.47
SAN LUIS HUEXOTLA
195
7
1.21
SAN CRISTOBAL NEXQUIPAYAC
350
51
2.31
SAN BERNARDINO
210
0
1.73
SANTA ISABEL IXTAPAN
330
303
2.54
SAN MARTIN NEZAHUALCOYOLT
73
5
3.69
TOCUILA Y SUS BARRIOS
499
0
1.76
SAN SALVADOR ATENCO
489
619
1.12
SANTIAGO CUAUTLALPAN
210
0
1.39
S. FELIPE Y STA. CRUZ DE ABAJO (2)
140
N.D.
3.01
SANTA MARIA CHIMALHUACAN
650
871
0.83
LA MAGDALENA PANOAYA
373
119
0.81
3,959
2,095
TOTALES
AICM.
AGRICULTURAL STATUS
* Agricultural use land, some of it with scarce vegetation.
* Flat topography, with water levels that allow litlle lagoons with plants which tolerate excess
of water.
* Scarce vegetation areas formed by grass somehow resitent to salinity.
* Land unuseful for rain irrigated agriculture because of low yields.
THESE LANDS ARE UNUSEFUL FOR AGRICULTURE AND ARE VERY LIMITED FOR
CATTLE BREEDING
AICM.
October 2002 the governmental institution in charge of appraisals (CABIN) issued and
appraisal to estimated the amount of payments starting from a commercial agricultural value
of 7.2$/m2 for rain irrigated land and 25$/m2 for irrigated land, even though ate the
peripheries of the Texcoco Lake there was offer of land for residential uses in the range of
15.00- 50.00 $/m2.
In terms of land acquisition impact in the whole project it represented 2% of the investment,
and if the expectations of ejida land owners were flfilled it had been 8%.
AICM.
When expropriation decrees were published it was formed and organization opposing to it. It
was named “Movimiento en Defensa de la Tierra”- land defense movilization, als known as
“los Macheteros de Atenco” – Atenco´s machete men. This group made front with some
violence to the government of the State of Mexico.
The following days there were statements from different government offices and levels
taking hands off the conflict. Some days after, the Minister of Agrarian Reform stated that
low prices estimated were issued by CABIN, whose president stated that they were qualified
by law to estimate the value, but it corresponded to the Government Ministry to conclude
with the price.
Two days later the project was cancelled , but it is still undecided where the new airport is
going to be.
Conclusions
• Acquisition of right of way is considered to be a very
important milestone in the development of a project.
• The planning of the projects must consider the
social factor as a very important issue.
• Work with communities at the early stages of the
project is advised
Conclusions
• The value of the land is the most common source of conflicts
during negotiation, since owners suffer different affectations:
– They must sell in a compulsory way part of their parcel.
– The rest of the parcel is mutilated and the usual activities must be
adjusted.
– The value usually does not reflex the new situation of the property
that would be the usage as part of the right of way.
– Owners are always an affected part which is out of the business
and not and associated with whom right of way operators make
• There is an importan opportunity in the
ROW industry, since the rules changing
now allow private investors to take part of
the industry.
Contact:
Guillermo Manning: [email protected])
Carlos Sandoval Miranda [email protected]
Jesus Sandoval Sevilla: [email protected]