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Durango looking for investors for US$60.5mn water plan - Mexico

Published: Friday, October 23, 2009 16:38 (GMT -0400)More news from Mexico

By Greta Bourke / Business News Americas

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Sewage Treatment | Water Resources | Financing | Privatization/Concession | Government/Regulations | Construction/Engineering | Irrigation/Flood Control | Sewerage | Potable Water

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Mexico's Durango state water commission (CAED) is interested in attracting the private sector to participate in a US$60.5mn water plan for Durango city, CAED director Miguel Calderón told BNamericas.

The complete Agua Futura plan calls for an investment of US$121mn but CAED will invest US$31.1mn in the distribution component, according to Calderón.

"We are interested in private sector participation for the construction of the water uptake and potable water systems, which includes the potable water plant," Calderón said, adding: "We might consider concessioning the operation of the system in the future, but for now we are looking at different models, such as public-private participation."

Durango, which has a population of 600,000, currently uses water from the Valle del Guadiana aquifer but studies have shown that the water is polluted and the aquifer is suffering from overuse.

The objectives of the Agua Futura plan are to recuperate the aquifer, improve the city's water quality and ensure a more efficient administration of potable water services, Calderón said.

Under the plan, water will come from two reservoirs which are already in place. These reservoirs will not require pumping systems as they are at a higher altitude. "This means the city will save some 60mn pesos a year in energy costs as we will not have to pump the water," Calderón said.

CAED has carried out the prefeasibility and feasibility studies and the project is now at the design stage, with two preliminary projects for the two components already drawn up. Phase one is to be carried out through 2010 and phase two is scheduled for 2011-12.

The commission has already invested US$20mn in the initial phase in the implementation of pipelines and tanks, but 110km of pipelines still needs to be installed over the next two years.

Agua Futura also has a sanitation component. "We already have one wastewater treatment plant and the other one is under construction. Once it is ready Durango will treat 100% of its wastewater and we will reuse the resources for irrigation," Calderón said.

"We are currently irrigating 2,900ha with the treated water and we will irrigate another 1,000ha when the second plant starts operating," he added.

The new water system will be managed by an independent municipal entity, Aguas del Municipio de Durango.

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