The energy law proposal “opens a delicate door because, in the future, the Mexican government could face claims of direct or indirect expropriation of investments, which could mean the state has to compensate for certain damages,” Valeria Vázquez, Energy and Resources Industry leader at Deloitte in Mexico and Central America, told NGI’s Mexico GPI.

Valeria Vazquez

“To date, it is said that the private sector has invested at least $44 billion — a very large amount — to set up electricity generation plants in Mexico,” she added. “If we think about future legal claims that seek damages for the cancelation of contracts, they could be as much as double the amount of investment already in the industry.”

Vázquez, who has 22 years of experience in the energy sector, has been the Energy...