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The internet has impacted our lives in ways we never thought would be possible. We use it for work, for socializing, and for controlling our vehicles, our gadgets and our homes.
It’s difficult to imagine a world today that’s not connected to wireless internet, but that’s the case in a portion of Mexico just over the southern US border, where 40% of the population has no access to the internet.
But by 2024 that statistic is expected to change thanks to a major project being performed by Altán Redes, a consortium backed by the US-based investment bank Morgan Stanley Infrastructure Fund and the International Finance Corporation, working in partnership with the Mexican government to deliver a wholesale 4G wireless network expanding internet coverage to over 92% of the Mexican population.
For many people in Mexico, this will be the first time they’ve ever had access to wireless Internet. At a national level, the Altán Redes project is expected to provide crucial information infrastructure to stimulate the country’s economy and provide better services for its populace.
Global insurer Chubb played an integral role in getting this nation building project going. Chubb used its global capabilities and experience to underwrite a complex surety bond that helped connect Altán Redes to the Mexican government. With Chubb’s surety support, the Altán Redes consortium won the bidding process for the project in November 2016.
“Chubb played a leading role in connecting the various parties involved in the Altán Redes project, including clients, investors, contractors, and legal resources,” explained Antonio Valiente, Brokers Director of Surety at Chubb in Mexico.
“With so many different parties involved, there were lots of different perspectives,” Valiente added. “Chubb was good at understanding the various viewpoints and related business issues of the parties, and serving as an effective intermediary to help align them around a common framework.”
Chubb’s professionalism and experience in underwriting a surety bond for the project was recognized by the Mexican government, who then asked Chubb if it would underwrite three other insurance products in connection with the project: property, construction and casualty.
“This was a real testament to Chubb’s expertise in addressing the surety bond aspect of the project, according to Craig Gortner, Senior Vice President, Commercial Surety, Chubb.
“The Altán Redes project is beneficial for business and the economy of Mexico,” Gortner added. “It should help make Mexico more competitive on a global scale, provide better information infrastructure and service to its population, and is expected to deliver profit to the project’s investors - and Chubb played a key role in bringing this important project about.”
