## AMLO Defends “Very Low” Cost of Dos Bocas Refinery Despite Doubling Original Budget
President Andrés Manuel López Obrador defended the final cost of the Dos Bocas “Olmeca” refinery on August 7, 2024, claiming it was “very low” despite an audit report indicating that the budget had doubled. The refinery, located in Paraíso, Tabasco, was constructed with both Mexican engineering and some foreign companies.
During a press conference at the National Palace, López Obrador stated that when compared to other refineries globally, Dos Bocas was built at a very good price. He claimed that the total cost was approximately 330 billion pesos or 16.8 billion dollars, without any need for financing as the funds came from government savings.
“Yesterday, we had dinner with representatives from the companies involved in the Dos Bocas project and Pemex officials to thank them for completing the project in record time at a very low cost,” said the president.
He attributed the funding to savings from anti-corruption efforts, specifically targeting fuel theft known as “huachicol.” López Obrador emphasized that preventing this theft saved the government funds equivalent to the refinery’s cost.
A report from the first quarter of 2023 highlighted that the Dos Bocas project faced significant delays and that costs had doubled from the original 8.9 billion dollars budgeted in 2020. The audit, accessed by Reuters, revealed contracts worth 16.89 billion dollars, surpassing the 15.96 billion dollars approved by Pemex’s board in August 2022. Additionally, 2.2 billion dollars of approved funds were still pending delivery.
López Obrador insists that anti-corruption measures not only boost political authority but also provide substantial financial savings for national development.
## Secondary Article: Further Insights on Dos Bocas Refinery Cost Overruns
The Dos Bocas refinery’s cost has been a point of contention since its inception. Analysts and opposition parties have criticized the project’s budget overruns and delays.
Reuters accessed a detailed audit report that shows the project’s financial challenges. Initial estimates in 2020 stood at 8.9 billion dollars, but by 2023, costs had escalated to 16.89 billion dollars. The audit emphasized significant delays and cost overruns, which have sparked debate about the project’s management and planning.
Recent news also points to additional financial scrutiny. The Mexican government had set aside significant funds from Pemex’s budget, but further injections of capital might be necessary to complete the refinery. This ongoing financial burden raises questions about the project’s long-term viability.
Despite these challenges, López Obrador remains firm in his defense, citing anti-corruption efforts as vital to the project’s funding. The president continues to argue that, compared to global standards, Dos Bocas remains an economically sound project that will boost Mexico’s fuel production capabilities.
For additional details, visit TJGringo.com, where we continuously update our reports on Mexico’s national projects and their economic impact.