IFC Project will Promote Sustainable Communities and Urban Development in Mexico
Washington, D.C., July 27, 2011 — A new IFC project – that integrates industrial, retail, and housing elements – seeks to address inefficiencies in Mexico’s land development process. It will help create sustainable communities and commercial centers using climate-friendly building standards.
IFC’s $25 million investment in the Artha Capital-managed fund is a first-of-its-kind project at the national level in Mexico. It will be used to invest in real estate and involves the acquisition and development of land for planned urban projects and basic infrastructure for housing, tourism, industrial, and commercial development.
About 42 percent of the land is expected to be used for housing, 33 percent for retail and industrial projects, and the remaining 25 percent for tourism.
The project will enable people to live near their place of work and ensure basic services – schools, hospitals, water, electricity, waste management, roads, and transport – that benefit communities and reduce the strain on existing infrastructure. It will also provide employment opportunities and boost economic activity in the region.
In addition, the construction of about 60,000 new homes, mainly for lower-income groups, will help address Mexico’s lack of housing and increase home ownership.
Artha Capital’s green design strategy will create communities based on environmentally sustainable building standards. Homes being developed will have low energy lighting and solar water heaters which are expected to reduce energy use by more than 20 percent on average compared with a typical building and will result in reduced greenhouse gas emissions of 10,000 CO2 tons equivalent per annum.
Other climate-friendly measures include the use of solar LED lights for half of all street lighting and the provision of bicycle paths and pedestrian walkways. IFC will support implementation of these measures which will help Artha Capital position itself as a “Green Fund” and diversify its investor base. This in turn will have a strong demonstration effect on future urban development in Mexico.
Since 1956, IFC has invested nearly $1 billion in over 50 property and construction projects in more than 25 countries.
Elizabeth Price Sr. Communications Officer, IFC Consumer and Social Services Manufacturing, Agribusiness, and Services Department Phone: 202-458-0387 Email: firstname.lastname@example.org