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Mexican national water authority Conagua's South Pacific basin organization will invest 82mn pesos (US$6.96mn) in irrigation and aquifer replenishment projects in Oaxaca, the organization's director, Álvaro Demetrio Jarquín, told BNamericas.
The authority has assigned 52mn pesos for studies into the artificial replenishment of aquifers in Mexico's central valley this year.
Work is currently at the executive project stage.
At the same time, Conagua is working on projects to improve irrigation in the state, including improvements to infrastructure and encouraging the reuse of treated wastewater. The authority has assigned 30mn pesos for Oaxaca irrigation projects in 2011.
"When we modernize one hectare of irrigated land we lower its annual development costs by 40%-50%," Jarquín said.
Conagua is also working with agricultural producers to develop ways to use treated water more effectively.
The majority of Conagua's budget for Oaxaca state is focused on the Paso Ancho dam, which will be tendered in 2H12.
The total project cost is estimated at 2.6bn pesos, including 900mn pesos for the dam, 1.5bn pesos for a water transfer pipeline and the remainder for other works such as a water purification system.