Ensenada’s 400 Million Peso Loan Faces Council Scrutiny

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Morena’s Baja California spokesman Catalino Zavala Márquez pushed back on March 26 against Ensenada Mayor Claudia Agatón Muñiz’s proposed 400 million peso ($22.2 million USD) municipal loan, saying at a press conference that “no type of debt is good for the people.” The Ensenada loan proposal has not yet won city council approval, as council members continue requesting more details about the planned spending.

Loan Would Fund Paving, Drainage, and Equipment

Agatón, who took office as Ensenada’s municipal president, has said roughly 200 million pesos ($11.1 million USD) of the credit would go toward paving roads. Another 80 million pesos ($4.4 million USD) would cover sewer and drainage repairs. The remainder would fund machinery purchases, including a pothole patcher and a street sweeper for the tourist zone, along with upgrades to sports facilities.

The mayor has acknowledged that deteriorating drainage lines, managed by CESPE (the Ensenada state public services commission), have stalled paving work in neighborhoods like Hidalgo and Pípila. Those projects cannot move forward until underground pipes are replaced, forcing the city to prioritize repairs in stages.

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Council Session Suspended, Debt Figure May Grow

Zavala Márquez emphasized that any municipal borrowing must follow strict legal and transparency requirements. He spoke at a press conference in Ensenada, where he acknowledged the city’s “difficult financial situation” but cautioned against taking on new obligations without full public accounting.

Separately, Ensenada’s city council had scheduled an extraordinary session to discuss the financing. That session was suspended after being postponed twice. The agenda included not only the new credit but also the refinancing of an existing loan with Bansí, a Mexican bank. Some reports place the total new financing request at 450 million pesos ($25 million USD), payable over 20 years, a figure higher than the 400 million pesos initially reported.

Ensenada, Baja California’s third largest city with a 2020 census population of 330,652, has struggled with aging infrastructure for years. The city sits about 80 miles south of the U.S. border on the Pacific coast, and its roads, drainage systems, and public facilities have faced chronic underfunding. The proposed loan would represent one of the largest single borrowing actions by the municipality in recent memory.

The city council must vote to approve the credit before any funds can be drawn. No new session date has been announced, according to La Jornada Baja California.