Mexican water concession extended 30 years

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Mexican water concession extended 30 years

Grupo Mexicano de Desarrollo (GMD) has announced that it has agreed extending the water service concession in the Mexican state of Quintana Roo for 30 more years.

The extension has been recently approved by the Board of Directors of the Mexican Committee on Water Supply and Sewerage (CAPA). The new concession period ends on 31 December 2053.

The new concession involves changes to protect the environment and to improve the water system. Specifically, two main projects will be carried out under this new agreement.

  • The upgrade of the Cancun aqueduct and the associate water supply system. The new facilities will have a total capacity of 750 liters per second, which represents a 20% increase from the current capacity.
  • The upgrade of a part of the Cancun water distribution system. The project aims to avoid water losses, which are currently estimated at 477,000 m³ per month.

According to GMD, the total project investment is estimated at P1,150 million (US$78.4 million). The firm aims to finance the project with banking debt.

We have recently reported about two aqueduct PPP projects in Mexico:

  • Monterrey VI Aqueduct PPP project. The project, sponsored by a consortium composed by Empresas ICA's subsidiary Controladora de Operaciones de Infraestructura (CONOISA), RECSA and Grupo HIGA, achieved commercial closure in October 2014. The 27 year concession has total investment estimated at US$1,619 million.

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