Aguas de la Sabana wins Sincelejo water contract

Thursday, October 31, 2002

Colombia's economic development ministry has awarded a 20-year operation contract to Aguas de la Sabana consortium for Sucre department capital Sincelejo's water utility Empas, said an official with the ministry's drinking water & basic sanitation department.

As a new consortium made up of private companies Sala and Emas, Aguas de la Sabana has to formally register with Colombia's government before it can finalize the contract November 20, the official said.

The official characterized the contract value as "hard to define," though BNamericas previously reported some US$58mn will have to be invested during the 20-year operation, which will serve 250,000 Sincelejo residents and also includes the operation of Empacar, which serves 40,000 residents of the neighboring town of Corozal.

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The contract is part of a US$70mn water sector reform program for 2002-2006, for which the World Bank agreed in December to finance US$40mn, with Colombia's national government putting up the remainder.