Court halts construction of Mexico City waste-to-energy plant
A Mexico City court has ruled that the 33-year contract to design, build, operate and maintain the El Sarape waste-to-energy plant – which is structured to be developed as a service provision project – must be suspended.
The ruling was made in response to an appeal filed by a private citizen who argued that the service fees the Mexico City government will have to pay for the treatment of its waste over the duration of the contract are excessive for a project of this kind, local paper La Jornada reported.
The contract was awarded in April last year to a consortium comprising French resources management firm Veolia and its Mexican subsidiary. The deal was formally inked a month later.
The court ruling suspends the contract until the government and the companies demonstrate that the conditions stated in the document "are the most favorable for city residents." However, the court said its ruling is not definitive,
The facility was expected to treat 4,500t/d of solid waste, which will generate 965GWh/y for the city's metro system.
The project has divided both public opinion and politicians. Critics claim that it saddles the city with a debt of 80.6bn pesos (US$4.2bn) over 30 years, while local authorities argue the figure represents the service fees the government will pay for the treatment of its solid waste, and that the funds will come from reallocating some of the city's current expenses used for treating waste.
Two other appeals filed against construction of the facility were rejected by judges.
The future of El Sarape was already uncertain as mayor-elect Claudia Sheinbaum, who takes office on December 5, has expressed her opposition to the project and threatened to take legal action to halt construction of the plant.
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