Many potential environmental projects are under consideration in Mexico at any given time; however, compiling an accurate list of such opportunities is difficult. Because financing is limited, many projects are competing for a set amount of available funds, and only a handful from any list are likely to be constructed. Efforts to determine the precise status of any specific project can be frustrating because different sources have different points of view. Nevertheless, some good project opportunities, trade leads, and project lists are available.
The most accessible sources of project information are produced by the U.S. Department of Commerce, the U.S. Agency for International Development, the U.S. Trade and Development Agency, the Border Environmental Cooperation Commission, and the North American Development Bank. Projects or programs promoted or sponsored by those institutions are described in Chapter 10.
In producing this report, in addition to obtaining information from the sources described above, Hanhausen & Doménech Consultores S.C. contacted more than 50 local water utilities of major cities in Mexico and several municipalities to obtain information on their procurement plans for municipal waste equipment. Results in the water area were encouraging; most cities and municipalities responded with information on their projects. After analyzing information provided by the utilities, however, the firm noted that several of the opportunities were not realistic because they lacked a financing source and because internal resources were insufficient.
In addition, Hanhausen & Doménech Consultores met with several construction and environmental companies to evaluate their interest in participating in hazardous waste projects in Mexico. Two companies showed interest in developing such projects and could be good potential partners for U.S. technologies and service providers.
The following list contains information on the specific projects that Hanhausen & Doménech consider to have the greatest potential to be realized or built. The selection criteria were based on financial capability or access to financing for the development of the project. It is important to note that project maturity periods in Mexico are very long, and the likely bid dates are estimates from the tendering agencies. Actual timetables may vary from these estimates.
Baja California Water Supply and Sanitation Project
Estimated Investment: $390 million
Location: Mexicali, Tijuana, Rosarito, and Ensenada
Source of Financing: JBIC: $201 million; CNA: $111 million; Baja California and, possibly, NADBANK: $78 million
Likely Bid Date: Several projects to be tendered between 2001 and 2004
Project Type: Engineering, procurement, and construction (EPC); turnkey; and consulting services
Brief Project Description: This is an integrated project that includes several projects in the areas of potable water, sewage, and wastewater treatment. The program covers four major cities of Baja California. The project will be tendered in eight major packages as EPC or turnkey projects and several small works as EPC contracts.
Four packages correspond to Mexicali:
1. Rehabilitation and construction of a potable water network, including the construction of new potable water pipelines and rehabilitation works for the existing network
2. Construction of sewage systems to feed the future wastewater treatment plant
3. Rehabilitation of two existing potabilization plants with a capacity of 1.1 and 2.2 m3/s, respectively, and construction of four additional plants, one with a capacity to purify 700 lps and another three with capacities of less than 50 lps
4. Rehabilitation of an existing anaerobic wastewater treatment plant with a capacity of 1.3 m3/s, and construction of a new wastewater treatment plant to treat 840 lps with an anaerobic lagoon system
Three packages correspond to Tijuana and Rosarito:
1. Construction of a potable water system, collectors, and pumping stations to serve 20,000 inhabitants
2. Construction of collectors and sewage to serve 20,000 inhabitants
3. Construction of four wastewater treatment plants with capacities of 340, 150, 100, and 75 lps with secondary biological treatment
One package will be tendered for Ensenada and will include works in potable water and sewage, as well as the construction of one pumping station and a wastewater treatment plant for 100 lps.
Consulting services for the coordination of the tenders will also be contracted.
Project Status: The Japan Bank for International Cooperation signed the loan agreement with BANOBRAS in March 2000. CNA also signed an agreement with the state for the provision of funds. Preinvestment studies are under way, and the state and municipal water authorities are evaluating water reuse in most wastewater facilities. The state water commission plans to release the tender for the first works by April 2001. In the last quarter, the state water authority plans to bid most wastewater treatment plants, and at the beginning of 2002, it plans to bid the Ensenada package.
Project Drivers: In recent years, the northwestern state of Baja California has experienced the fastest growth in the country, with an average growth rate of more than 8 percent per year. The maquiladora program has attracted a great number of foreign companies, mainly from the United States, creating a significant concentration of population. Water supply and sanitation infrastructure has lagged behind population growth, and concern is growing that this Iag might create a bottleneck for economic development. In addition, untreated water has flowed into the neighboring Salton Lake and the Gulf of California, degrading the environment and thereby causing a bilateral problem with the United States.
Key Contact Information:
Comisión Estatal de Agua de Baja California
Ing. Leonardo Caloca Gilda
Subdirector de la Unidad de Implementación
Tel: +52 (6) 622-4156
Fax: +52 (6) 634-0382
E-mail: Leonardo@telnor.net
Guadalajara Integrated Water System Upgrade
Estimated Investment: $360 million
Location: Guadalajara, Jalisco
Source of Financing: Mix of resources from federal, state, and municipal governments, plus possible JICA credit
Likely Bid Date: Several projects to be tendered between 2001 and 2004
Project Type: EPC, turnkey, and consulting services
Brief Project Description: This integrated project includes several works and will be developed in stages. The first stage began in 1999 and is still under way. It involves potable water and efficiency improvement investments and actions. The local water utility, Sistema Intermunicipal de Agua Potable y Saneamiento (SIAPA), is improving its metering, billing, and collection indexes and, in doing so, is receiving money from the federal government under APAZU. More than $20 million has been invested in improving efficiency.
Efficiency Improvement: This component includes micrometer supply and installation services. Technology for fixing leaks in the secondary network will be installed, as well as monitoring and collection equipment and software in SIAPA’s offices.
Water Supply Works: Works for potable water supply include construction of a new aqueduct with a length of 60 kilometers, enlargement of a potabilization plant, expansion and maintenance of the distribution system, and rehabilitation of the Chapala-Guadalajara aqueduct. Those works have an estimated cost of $103 million.
Sanitation: The city of Guadalajara lacks municipal wastewater treatment systems. Three wastewater treatment plants with a combined capacity of 8 m3/s are under design, but the local government lacks sufficient resources to build them or grant a concession. The government applied for a JICA credit to build the plants, but the federal government refused to provide the warranties, and the credit was not closed. SIAPA is improving its efficiency so that it will be financially solid and able to apply for a new credit. Water reuse alternatives are also being analyzed as a source of repayment for the plants.
Project Status: SIAPA is making progress in improving its efficiency and, thus, its financial condition. Minor potable water works are being tendered, but the largest projects still await financing.
Project Drivers: Guadalajara is the second largest city in Mexico, with a population of 3 million inhabitants within the city and surrounding areas. The city sources water from Lake Chapala, which has shown a disturbing decrease in its level in recent years. The city has high indexes of water that is unaccounted-for because of lack of maintenance to existing infrastructure and a high rate of illegal taps. In addition, the city produces close to 8 m3/s of wastewater, almost none of which is effectively treated. Under the National Crusade for Forests and Water, the federal government will assist Guadalajara in expanding its wastewater treatment systems and apply measures to increase water infiltration into the basin.
Key Contact Information:
Sistema Intermunicipal de Agua Potable y Saneamiento
Ing. José Luis González Velasco
General Director
Tel: +52 (3) 837-4202
Fax: +52 (3) 619-2913
San Luis Rio Colorado Wastewater Project
Estimated Investment: $13,500,547 for the total project; $8,000,000, approximately, for the wastewater treatment plant
Location: San Luis Río Colorado, Sonora
Source of Financing: BEIF: $5.7 million; mix of federal, state, and municipal resources: $8 million
Likely Bid Date: May or June 2001
Project Type: EPC and turnkey
Brief Project Description: The project consists of the construction of an interceptor for a sanitary sewer system (6,000 meters), two pump stations, one pressurized emitter, and an 800-lps stabilization lagoon wastewater treatment plant with chemical processes. The Municipal Water and Sewer Operating Body (Organismo Operador Municipal de Agua Potable y Saneamiento, or OOMAPAS) has received a $5.7 million grant from NADBank through its BEIF, which is funded by contributions from the U.S. EPA, to apply toward the cost of the projects included in the Wastewater Collection and Treatment Program for San Luis Río Colorado. The remaining cost of the project will be financed by a mix of federal, state, and municipal resources.
Project Status: OOMAPAS released a tender to contract construction management and supervision services so that it could monitor project performance and the use of funds provided by NADBank. The consultant will be expected to follow up on technical and administrative aspects of project progress, prepare reports and project-related documents, and participate in meetings with OOMAPAS and the construction contractors, as well as to supervise the work of the contractors. The estimated budget for this work is approximately $380,000, including 10 percent for contingencies. OOMAPAS published the request for bids for management and supervision services on March 6, 2001.
The tender for the construction of the wastewater treatment plant, sewer collection system, pumping stations, and pressurized emitter will be released in May or June 2001. It will be an international public tender and will be published in the Official Gazette, as well as in local newspapers.
Project Drivers: San Luis Río Colorado is located in the northwestern region of the state of Sonora. It borders Arizona to the north, the Sea of Cortés to the south, the municipalities of Puerto Peñasco and Plutarco Elías Calles to the east, and the state of Baja California and the Colorado River to the west. It has an estimated population of 170,000, of which 96 percent receives water service and 40 percent receives sewage service; however, the untreated wastewater is discharged into the Colorado River. The plant will be located five kilometers outside the city, next to the Colorado River.
Key Contact Information:
OOMAPAS San Luis Río Colorado
Ing. Juan Carlos Ramírez Chávez / Ing. Tirso Amaya
Sandoval
General Director/Technical Director
Tel. +52 (653) 4-11-72
Fax. +52 (653) 4-53-23
Morelia Wastewater Treatment Plant
Estimated Investment: $27 million
Location: Morelia, Michoacán
Source of Financing: FINFRA and private concessionaire
Likely Bid Date: End of 2001
Project Type: 20-year BOT
Brief Project Description: The municipal water utility of Morelia will tender the executive project, which is the construction and 20-year operation of a biological filters wastewater treatment plant with a capacity of 1.2 m3/s. The plant site is located in a 20-hectare area 9 kilometers away from the city of Morelia in the Apanteo town. The plant will be partially funded by FINFRA, which is assisting the municipality in the development of a tariff impact study.
Project Status: The Morelia water utility concluded the basic engineering studies, which were financed by FINFRA. Currently, FINFRA is assisting the municipality in developing the tariff impact study, and when the study is concluded, the utility will request subordinated capital for construction of the plants.
Project Drivers: Morelia, the capital of Michoacán, is approaching a population of 1 million. At present, Morelia is discharging most of its wastewater without appropriate treatment and is not complying with NOM-001-ECOL-1996. The water utility is analyzing water reuse for irrigation purposes, which could be a good driver to move ahead with the investment.
Key Contact Information:
Organismo Operador de Agua Potable y Alcantarillado de
Morelia
Lic. Carlos Luis Gómez Calderón
General Director
Tel: +52 (43) 15-74-33
Fax: +52 (43) 14-11-11
Jalapa Wastewater Treatment Plant
Estimated Investment: $8.5 million
Location: Jalapa, Veracruz
Source of Financing: FINFRA and concessionaire
Likely Bid Date: 2002
Project Type: Public works—collectors 20-year concession—wastewater treatment plant
Brief Project Description: The plant will be divided into modules. The first module will treat 300 lps on its first stage. Prior to building the plant, the municipal water utility will need to build the collectors, one with a length of 16 kilometers and an estimated cost of $4.5 million and the second with a length of 11 kilometers and an estimated cost of $2.3 million. The technology of the plant has not been defined yet, and water reuse is being considered for industrial purposes.
Project Status: At present, the U.S. company Montgomery is developing the executive project for the wastewater treatment plant and related infrastructure. This study was scheduled to be delivered to the Water Commission in May 2001. The municipal water utility will then contract a private company to develop a tariff impact study with funds from FINFRA.
Project Drivers: Jalapa, one of the most important cities in Veracruz, is discharging most of its wastewater without treatment.
Project Type: Tender is divided into two parts. The first part will include construction as a turnkey project, and the second part will include operation for a 20-year period.
Brief Project Description: The plant will have an overall capacity of 450 lps (0.45 m3/s) out of which 150 lps will receive primary treatment. The remaining 300 lps will receive secondary treatment and will be destined for four types of reuse: in agriculture, in the construction industry, in the irrigation of urban green areas, and in exchange for potable water with landowners who hold water concession titles.
Project Status: The site for construction of the plant has not been selected; however, the negotiations with FINFRA are very advanced, and most studies have been concluded. The plant is expected to be tendered in late 2001 or early 2002.
Project Drivers: Tehuacán has a population of close to 200,000 inhabitants. Industrial development has been strong.
Key Contact Information:
Ing. Manuel Beristain Gómez
General Director
Tel: +52 (283) 23-993
Fax: +52 (283) 25-000
Tuxpan Wastewater Treatment Plant
Estimated Investment: $1.5 million for the first module
Location: Tuxpan, Veracruz
Source of Financing: Municipal funding
Likely Bid Date: Not defined yet; could be in late 2001
Project Type: EPC and concession for operation Brief Project Description: The project consists of a three module 125 lps plant (oxidation lagoons). The first module is estimated to cost $1.5 million, and the remaining two modules, which will be added later, are estimated to cost $500,000 each.
Project Status: The municipal water utility concluded the basic engineering studies and recently acquired the land where the plant will be located. The municipality is seeking credit options to partially finance the plant.
Project Drivers: Tuxpan is not in compliance with NOM-001-ECOL-1996.
Key Contact Information:
Comisión Municipal de Agua Potable y Saneamiento de
Tuxpan
Ing. Andrés Cepeda
General Director
Tel: +52 (783) 48-367
Fax: +52 (783) 47-909
Mexico City Sanitary Landfill
Estimated Investment: N/A
Location: Mexico City
Source of Financing: Possibly JICA funds; other alternatives being analyzed
Likely Bid Date: Not defined yet; government seeking financing and negotiating with scavenger unions
Project Type: EPC and, possibly, contracts for operation
Brief Project Description: Mexico City is home to close to 20 million inhabitants, out of which 9 million live in the Federal District and 11 million in the state of México. The city has severe problems in adequately disposing of its solid waste. The Federal District alone generates 4,169,000 tons of solid waste per year, out of which only 18 percent is recovered by scavengers. The remaining waste is disposed of in two landfills, Santa Catarina and Bordo Poniente.
Located over an inactive volcano, Santa Caterina has reached 100 percent capacity, but is still in use. The overloading of this landfill has created a great risk for it to fall apart and slide into the Mexico-Puebla highway, which passes just a few feet away from the landfill’s boundary. The Bordo Poniente landfill is expected to reach full capacity by 2002.
A JICA-funded study, which was commissioned by the Mexico City government, reveals the urgency of building additional solid waste disposal infrastructure. JICA’s recommendations include constructing a mega-plant for production of fertilizers from organic waste, promoting waste separation, building one new floor in the Bordo Poniente landfill, and building a new landfill in another area close to the city.
The Mexico City government is negotiating with scavenger unions so that the Santa Catarina landfill can be closed. The new landfill represents an opportunity to organize scavengers and provide them with a formal, efficient, and safe waste separation job.
Project Status: Authorities of Mexico City and the state of México are negotiating to define the optimal funding sources for the new infrastructure. The authorities are also evaluating hiring a consultant to determine the most appropriate site for the construction of the new landfill. New landfill construction will not be tendered until late 2002.
Project Drivers: Currently, Mexico City only recovers 18 percent of its solid waste through an inefficient and unhealthy scavenger method. None of the organic waste is used, and batteries, as well as other potentially hazardous materials, are disposed of in landfills. JICA considers that having new infrastructure and an organized method of waste separation could raise the recovery index to 37 percent and prevent health risks currently suffered by scavengers, who separate garbage using only gloves and mouth covers.
Key Contact Information:
Mexico City Government
Ing. Francisco González Gómez
General Director for Urban Services
Tel: +52 (5) 650-4055
Fax: +52 (5) 650-7905
E-mail: bgarcia@pacifico.ddf.gob.mx
Coatzacoalcos Sanitary Landfill
Estimated Investment: $88 million
Location: Coatzacoalcos, Veracruz
Source of Financing: FINFRA: $35.2 million
State and municipal resources: $52.8 million
Likely Bid Date: Not defined yet; state and municipal resources being approved; could be tendered in 2002
Project Type: EPC and concession for operation
Brief Project Description: Coatzacoalcos, Veracruz, has a population of over 250,000 inhabitants, who, combined with the industrial activities of the zone, generate over 55,000 tons of solid waste per year. Most solid waste generated by the municipality is thrown into open-air dumps and landfills that do not meet the criteria established by NOM-083-ECOL-96. Scavengers take advantage of some recyclable materials.
The project consists of the construction of a sanitary landfill that will meet and exceed the criteria established by NOM-083-ECOL-96. The project includes the preparation of the land, installation of membranes to avoid spills into soils, and installation of bio-gas recovery systems and wastewater treatment and recycling facilities.
Project Status: FINFRA is evaluating the project. Once FINFRA approves the project, the local government will have to secure funding for the remaining $52.8 million needed.
Project Drivers: Compliance with regulation NOM-083-ECOL-1996 is an important project driver, as is the prevention of health hazards to scavengers working on open-air dumps and to the population surrounding the dumps.
Key Contact Information:
Government of Coatzacoalcos
Ing. Carlos Gómez
Economic Development
Tel: +52 (9) 215-1469
Fax: +52 (9) 212-0758
Agua Prieta Solid Waste Collection and Disposal
Estimated Investment: $2 million
Location: Agua Prieta, Sonora
Source of Financing: NADBank: $1 million; municipality, SEDESOL, and state government: $1 million
Likely Bid Date: Mid-2002
Project Type: EPC and equipment procurement
Brief Project Description: The project includes constructing a new landfill, acquiring garbage collection and disposal equipment, and closing an existing site for final disposal of municipal solid waste.
Project Status: NADBank approved a $500,000 loan to procure equipment for the solid waste landfill. The loan agreement closed in March 1999 and was disbursed in August 2000.
Administrative, legal, and managerial organization of the solid waste utility was developed through NADBank’s Institutional Development Cooperation Program. Further assistance from the program was approved for a user survey and a management information system for the utility. The management information system is under way and is expected to be concluded in December 2001. The survey is expected to be finished by November 2001. The project is expected to be bid by mid-2002.
Project Drivers: Environmental and health risks need to be reduced by covering and closing the existing open-air landfill and by meeting the city’s solid waste infrastructure needs. Reducing smoke and odors will also help the neighboring city of Douglas, Arizona, comply with U.S. EPA standards.
Key Contact Information:
Ayuntamiento de Agua Prieta, Sonora
Professor Oscar Ochoa Patrón
Presidente Municipal
Tel/Fax: +52 (633) 8-17-23
Matamoros Solid Waste Management Project
Estimated Investment: $3 million
Location: Matamoros, Tamaulipas
Source of Financing: NADBank, plus municipal, state, and federal resources
Likely Bid Date: Collection and transportation study to be bid in 2001; works and equipment to be bid after study is completed
Project Type: EPC and equipment procurement
Brief Project Description: The project includes improving and reorganizing the solid waste collection system through the creation of an autonomous utility. It also includes constructing a solid waste landfill and acquiring garbage collection and disposal equipment.
Project Status: NADBank is participating as an investment banker and potential direct lender. The Mexican federal government has agreed to provide partial funding. The bank approved assistance for the development of the utility once the city defines its service strategy. Institutional Development Cooperation Program assistance was also authorized for a collection and transportation study, which was expected to begin in the second half of 2001.
Project Drivers: Reduction of environmental and health risks related to inappropriate solid waste management is the primary driver.
Key Contact Information:
City of Matamoros, Tamaulipas
C.P. Ramón Antonio Sampayo Ortiz
Mayor
Tel: +52 (88) 12-0650
Fax: +52 (88) 12-0859
