Case | HBS Case Collection | September 1992 (Revised March 1993)

Empresas ICA and the Mexican Road Privatization Program

by Willis M. Emmons III and Monica Brand


Mexico's largest construction company, Empresas ICA, makes an initial public offering to international equity investors in April 1992 to help fund its participation in an ambitious new private-sector approach to highway development. Under the new program, launched by President Carlos Salinas de Gotari in 1989, the Mexican government offers concessions to private sector bidders for the construction and operation of toll roads along key transportation corridors. Winning bidders are required to take an equity stake in their communities and to raise debt capital outside of the public sector. The case allows students to explore the opportunities and risks offered to domestic and foreign firms by the privatization movement sweeping Latin America in the early 1990s.

Keywords: Construction; Transportation Networks; Infrastructure; Privatization; Private Equity; Investment; Initial Public Offering; Private Sector; Government and Politics; Policy; Construction Industry; Mexico;


Emmons, Willis M., III, and Monica Brand. "Empresas ICA and the Mexican Road Privatization Program." Harvard Business School Case 793-028, September 1992. (Revised March 1993.)