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Amendment of articles 25, 27 and 28 of the Federal Constitution of the United Mexican States, which was published in the Federal Official Gazette (“DOF”) on December 20, 2013, resulted in issue of nine regulatory laws on August 11, 2014, and amendment of twelve others. The issued laws include the Hydrocarbons Law (LH) and the Electric Power Industry Law (LIE), which regulations were published on October 31, 2014. Said legislations regulate the so called Social Impact Assessment (SIA).

This note is aimed at setting in a context the regulation and scope of SIA as a recently created tool that, as may be seen, is a requirement to develop electric power projects, and also those related to the hydrocarbon industry.

What is a Social Impact Assessment?

Although two laws regulate the SIA issue, the LH Regulation is the only legislation defining the SIA as a document containing the identification of communities and people located within a sphere of influence of a project in the field of hydrocarbons, and also the identification, characterization, forecast and appraisal of the consequences on people that might arise from that project, and the applicable mitigation measures and social management plans.

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