Investments in Baja Dropping Due to “Sempra Conflict”

The conflict with Energia Costa Azul, the Sempra subsidiary, has caused investments to be withdrawn from Baja California, said the Secretary of the Government, Cuauhtémoc Cardona Benavides.

In an interview, the state administrator said he did not want to dwell on the details, but he pointed out that the situation with Sempra Energy has created uncertainty among other domestic and international investors.

“There is a specific instance of which I do not want to give more details, to not complicate the situation, but it is prudent to mention that we are viewed with caution due to the problem with the municipal authorities in Ensenada,” he said.

Link to article in Spanish.

As Fulano blogged about here, this is why it is inadvisable for foreign companies to invest in Mexico. No matter how many permits you get, no matter how many approvals you receive, no matter how long you have been doing the same business from the same location, some little arrogant prick with a political agenda or his hand out for a bribe is going to try to screw you. SEMPRA, which operates the gas plant discussed below, has amparo’s from both state and federal courts. An amparo is a court order saying they are in compliance with the law and not to be interfered with unless a further order comes from the court. Yet the local mayor just ignores all that and orders the plant shut down, sending police to enforce his order. They just keep coming and coming. They never rest.