Puebla mayor calls for Soapap privatization

Tuesday, June 11, 2002

The mayor of Mexican city Puebla, Luis Paredes, is seeking a meeting with Puebla state governor Melquiades Morales and Puebla water utility Soapap director Francisco Castillo to propose the privatization of the company, newspaper El Sol de Puebla reported.

French company Ondeo Degremont, which holds the concession to operate Soapap's water treatment plants, is interested in buying the utility, Paredes claims.

Castillo however rejected Paredes' calls, and said that any private operator would seek to raise rates to make larger profits, and that what Paredes really wants is to avoid paying the US$2.06mn it owes Soapap for water consumption this year.

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"Be it public or private, what Soapap needs is that all [users] pay; when that happens all problems will be over," Castillo said.