Mexico May Spend $463 Million to Repair Storm Damage

Mexican President Vicente Fox said his government will spend about 5 billion pesos ($463 million) to repair flood damage to houses, roads, bridges and other infrastructure caused by Hurricane Stan.

Heavy rains in the southern states of Chiapas and Oaxaca last week killed at least 15 people in Mexico, and brought floods that affected as many as 2 million. In neighboring Guatemala, a mudslide stemming from Stan´s heavy rains in the villages of Panabaj and Tzanchaj may kill as many as 1,400 people.

Fox said the government will release money from a 5 billion peso disaster fund. He didn´t say how much of the money would be used in the flood damaged areas, which also includes the states of Veracruz and Puebla, according to Mexico´s Interior Ministry.

“We´re entering the phase of reconstruction,” Fox said, according to the ministry. “We´re not going to replace anybody´s home in the same place if it´s at risk. We´re going to move them to safer places so these tragedies aren´t repeated.”

Stan, which hit land as a hurricane, also killed 70 people in El Salvador and 11 in Nicaragua.

Mud off the slopes of the San Lucas volcano in Guatemala has trapped about 1,400 people in the area, located 180 kilometers (110 miles) west of Guatemala City, and there may be no survivors, fire brigade spokesman Mario Cruz reported.