Table 2 List of the 12 public service innovations

1

Welfare Bank (Banco del Bienestar)

The Welfare Bank has the direct financial objective of including the portion of the population that is beyond the reach of commercial banking. The means to achieve that is by distributing resources from the government’s social programs. An indirect objective, necessary for the bank is to expand the use of the internet to include this population that does not yet have access to digital services

The first 250 branches began operating throughout the country in September 2021 (first phase). On March 16, 2022, the inauguration of the second phase was announced, with a goal of 2700 branches throughout the country

2

Social Security Welfare (IMSS)

The Social Welfare Insurance (IMSS) offers free health services to the population that does not have social security coverage, especially in remote or difficult-to-access areas. In other words, anyone without social security coverage will have access to healthcare services, including those affiliated with Social Security, ISSSTE, or Popular Insurance (Seguro Popular). Through an agreement with the state governments (15 out of the 32 states have so far signed up), an initial assessment is conducted of the state’s health personnel (doctors, nurses, and support staff) as well as facilities and equipment. The service will be permanent and basic staff will be available

3

PSI—Presidential Daily Press Conferences “Mañaneras”

This PSI is a forum of presidential press conferences attended by journalists and invited government officials. They start at 7 a.m., from Monday to Friday, and last around two hours. The agenda features:

 1. Government reports on: Who is who in the prices; The pulse of health; Who is who in fakes news; Zero impunity; progress of big public works; and others

 2. Open questioning by journalists from international, national, and local media relating to current issues and topics in the news

 3. Reports from the Mexican press, alternating between national and local media outlets

4

PSI—Young People Building the Future (Jóvenes Construyendo el Futuro)

This PSI provides training opportunities for young people from 18 to 29 years old who are not studying or working to become apprentices by means of a platform that links them to firms, institutions, or organizations that act as tutors. The companies agree to provide on-the-job training to the young apprentice for 12 months. The apprentice receives a monthly government stipend of MXN 4310 (USD 215), plus medical insurance against illness, maternity and work risks. Both the tutor and the apprentice must carry out monthly evaluations of each other’s performance. The apprentice may be hired by the firm or he may change jobs only once, either by his own choice or by decision of the work center

5

The School is Ours (La Escuela es Nuestra)

This innovation consists in directly handing over the management of resources to the CEAP committees (Comité Escolar de Administración Participativa) whose members are the pupils’ parents, to oversee the maintenance of their school

This innovation focuses on the direct delivery of public grants, tabulated according to the number of children, to the CEAPs

The CEAPs receive resources from the federal government and decide how to use them in accordance with their priorities to improve the infrastructure of public schools at the early, preschool, primary and secondary education levels in their different modalities and the learning communities of the National Council for Educational Development (CONAFE)

6

Sowing Life (Sembrando Vida)

The objective is “to contribute to social welfare through sufficient income, to promote food self-sufficiency, the reconstruction of the social relationships and the inclusion of peasants in rural localities to make the land productive.”

The target population are inhabitants of rural localities whose municipalities have medium, high and very high levels of social backwardness, or who have incomes below the poverty line (USD 143 per month*), and who have 2.5 hectares available to be worked in an agroforestry project

The beneficiaries are given monthly economic support of MXN 5,000 (USD 250), as well as the material for agroforestry production (plants, supplies, tools), from which MXN 500 (USD 25) is set aside for a family savings and welfare fund. Agroforestry technical advice is also provided to Peasant Learning Communities

7

Consolidated international drug purchases

This initiative consists of the purchase of medicines through INSABI and UNOPS (previously carried out only by IMSS) in which the principles of fair and equitable public management will be applied, through international and national public tenders. UNOPS will promote equal opportunity for all companies, implementing transparent, efficient and sustainable procurement processes

Through this project, INSABI and UNOPS seek to support the reinforcement of the National Health System and promote the well-being of the Mexican population within the framework of the Sustainable Development Goals (SDG) and the 2030 Agenda

8

Fuel theft (huachicol)

The objective here is to reduce the clandestine theft of oil and gasoline, which has grown significantly. Thieves siphon oil pipelines, bribe employees and intercept fuel tank trucks

This innovation requires the following coordination and focused efforts:

 1) Boosting the deployment of armed forces

 2) Collaboration between different institutions and levels of government: PEMEX and the armed security forces (Secretary of National Defense, Secretary of Public Security) via their federal and state representations

 3) Allocation of military resources to protect PEMEX oil pipelines and transport routes

 4) Some suspects involved in theft or collaborating have been arrested, bank accounts have been frozen, and properties have been confiscated

9

Renegotiation of energy-related contracts with Pemex and CFE

The 2013 energy reform expanded the scheme of electricity own-generation and those involved could be registered or migrated to the category of “qualified users”. These companies that generate their own electricity were also given access to a preferential or lower cost rate for so-called “carrying” or “green carrying”, for the generation of electricity using wind and solar technologies. In addition, the CFE, a public enterprise, has been transferring resources via low transmission tariffs and allowing other large business chains such as OXXO, Banking, etc., to receive a share of those subsidies if they are associated users of the companies that generate their own power

As the Mexican president’s proposed 2022 electricity counter-reform failed to pass because it did not receive absolute majority backing in congress (two-thirds of all votes cast), the government is now in the process of renegotiating case-by-case the contracts that are receiving subsidies from the CFE

10

Alternative to a wholesale power market (CFE)

The main objective of this innovation is for the CFE (Federal Electricity Commission) to own a 54% share in the country’s total energy generation by 2024, up from 38% in 2020. According to the CFE (2022), this innovation will guarantee the country’s energy security, while maintaining the value chain in the electricity sector deemed a strategic area under state control, with the purpose of offering fair rates that do not rise above inflation. One important change is that hydroelectric generation from dams is now considered green energy, which was not the case in the 2013 energy reform. Therefore, there is an upsurge in investments to modernize dam turbines and to invest in new ones

Also, an investment fund with its own resources from current and future profits of its subsidiaries is being considered. The construction of eight new power plants (six combined cycle plants and two turbo gas plants) between 2020 and 2024 will boost investment. Approximately 64 billion Mexican pesos (USD 3.2 billion) will be allocated to their construction (IMCO, 2021). However, as the counter-reform bill did not pass in congress in 2022 because it did not receive the votes of two-thirds of representatives as required, it is expected that the CFE’s share of power generation will be less than 54%

11

Power transmission tariffs (CFE)

The objective is to encourage competition on an even playing field between the CFE (Federal Electricity Commission) and the companies generating their own power supply

New carrying rates are established for different rate levels: high (MXN 0.27857 per Kw/h), medium (MXN 0.25865 per Kw/h) and low ($0.089284 per Kw/h). In addition, tariffs are established for the transmission of renewable energies, differentiated according to the aforementioned voltage levels

The target population are the 303 private generating plants which are associated with 70,318 partners (electricity buyers), which distorts the model of own-supply and energy cogeneration. Previous tariffs included the use of the CFE’s transmission network without paying the transmission costs, causing losses of around 7.5 billion Mexican pesos per year

The long-term beneficiaries are the final consumers of electricity, since with the minimization of losses for the CFE, it will be able to invest in the grid’s modernization (García, 2020; Rodríguez, 2020)

12

Expansion and modernization of the national oil refining system (Pemex)

The modernization of refineries is part of Mexico’s energy self-sufficiency plan with the aim of increasing refining capacity through the renovation of its six refineries owned by Pemex. The total budget is USD 1.1bn for the following refineries: Salina Cruz, Oaxaca (90%), Tula, Hidalgo (89%), Cadereyta, Nuevo León (75%), Minatitlan, Veracruz (71%), Salamanca, Guanajuato (67%), and Madero, Tamaulipas (33%) (Increase up to 2021)

In addition, the Olmeca refinery in Dos Bocas, Tabasco, is in the process of being built (USD 8 bn, 72%); and full ownership (51%) of the Deer Park refinery in Huston Texas has been acquired from Shell