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A contract to build and operate Mexico's Monterrey VI water pipeline in Nuevo León state will ease the transition of ICA subsidiary Controladora de Operaciones de Infraestructura (Conoisa) into next year, according to Banco Monex.
"The project represents an investment by ICA of 6.67bn pesos (US$496mn), equivalent to two months of back log, which will allow for a smooth transition towards 2015," according to a report from Banco Monex analysts.
A five-company consortium, including Conoisa's 37.7% participation, won a concession for the 17.7bn-peso project at the beginning of September.
The 30-year public-private partnership (PPP) will see construction and operation of the 372km pipeline, which will carry water from the Pánuco river basin, in San Luis Potosí state, to Monterrey.
The pipeline will take three years to build and, once operational, it will supply 40% of water users in Monterrey.
Given the company's high leverage, Grupo Monex has not ruled out the possibility that ICA will look to sell some of its more mature assets in order to finance the project.