The $3.2 billion financing secured by Brazilian-Mexican
consortium, Braskem Idesa, for Mexicos Etileno XXI
petrochemicals complex signals a radical governmental shift
away from monopolistic control of resources. This policy change
could accommodate a broader role for private capital in
Braskem Idesa's role in the harnessing of Mexico's ethane
reserves would have been unthinkable a few years ago. The firm
is a joint venture incorporating the pooled resources of
Brazilian thermoplastic resin producer Braskem and Mexican
petrochemical firm Grupo Idesa.
The financing and development of Etileno XXI, which will
harness the vast ethane reserves of Veracruz in order to
produce polyethylene, reflects an unheralded willingness by the
Mexican authorities to allow a private producer to step into
the breach in a sector...