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Wednesday, January 13, 2010
Today's News Headlines
* El Zapotillo reservoir awarded to FCC-led consortium for 2nd time - Mexico
* OSE, authorities analyze alternatives to expand potable water supply in Rocha - Uruguay
* Sanaa implements measures to combat drought - Honduras
* Govt submits constitutional reform to declare water a national resource - Chile
* Copasa approves US$1.3bn investment plan - Brazil
* Environment ministry becomes law - Chile
* Water companies to reduce rates by an average 2.8% - Chile
* DGA requests investigation over possible irregularities in Pascua Lama - Chile
* INRH to repair water network over 10-15 years - Cuba
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* El Zapotillo reservoir awarded to FCC-led consortium for 2nd time - Mexico
Mexican state water authority Conagua has rectified "irregularities" found by the public administration department (SFP) in the tender to design and build the 2.19bn-peso (US$164mn) El Zapotillo reservoir in Jalisco state, Conagua spokesperson Karen López told BNamericas.
After carrying out an investigation into the tender, SFP found that the documentation for the ruling made on September 14 contained errors, and ordered Conagua to award the tender again.
The department began reviewing the tender in September, after two parties involved in the process alleged that Conagua failed to award the contract to the lowest bidder.
Conagua said at the time that the bid of 2.19bn pesos submitted by Spanish construction firm FCC, in association with compatriot Grupo Hermes and Mexican firm La Peninsular Compañía Constructora, was the most viable technically, financially and legally.
However, a consortium comprised of Constructora Cota, Vise and Infrocsa, and another led by Mexican construction giant ICA, complained to SFP, claiming that they had presented lower offers of 1.57bn pesos and 1.95bn pesos, respectively.
Despite the controversy surrounding the tender, SFP's order was given "for purely bureaucratic reasons", according to López.
"The document was missing a stamp to show that the person who signed the ruling was authorized to do so," López said.
As is required by the national water law and Conagua's internal regulations, the authority held a meeting of all parties involved in Jalisco state capital Guadalajara on Tuesday to emit the ruling again, this time with the correct documentation.
The contract was once again awarded to the FCC-led consortium. Contrary to local press reports, the new ruling will not affect construction of the reservoir, which is already underway, López said.
Slated for completion in 2012, the 105m-tall El Zapotillo dam wall and reservoir are expected to provide potable water to 14 municipalities for the next 30 years, benefitting 2.36mn inhabitants.
The structure will be capable of storing 911Mm3 of water and will reduce the overuse of aquifers in the Lerma-Chapala-Santiago basin.
By Catherine Setterfield
Business News Americas
* OSE, authorities analyze alternatives to expand potable water supply in Rocha - Uruguay
Uruguayan authorities are discussing alternatives to increase potable water supply in southeastern department Rocha, an official from state-owned water utility OSE told BNamericas.
Projects are likely to be financed with the support of international entities such as IDB and the World Bank, both of which are providing resources for water and sewage initiatives being carried out by OSE in Montevideo and Canelones department, said the official.
OSE is working with local authorities and communities to design projects that guarantee 24-hour supply in small towns, where water cuts have become common due to the poor condition of water storage tanks and distribution networks, the official said.
The projects would involve rehabilitating and expanding water distribution networks as well as building infrastructure to increase water reserves.
Some smaller communities are also working with authorities to design small-scale solutions for areas with low population density, especially along the coast, the official said. Many of these places currently receive water by truck.
By Eva Medalla
Business News Americas
* Sanaa implements measures to combat drought - Honduras
Water levels at the Los Laureles and La Concepción reservoirs, serving Honduran capital Tegucigalpa, are low and dropping fast, the director of national water authority Sanaa, Jack Arévalo, told BNamericas.
La Concepción reservoir is now operating at 52% of its full capacity while Los Laureles is at 59%.
"These are the kind of water levels we expect to see at the end of the summer, like in mid-April," Arévalo said.
To combat the situation, Sanaa has implemented permanent water rationing in the capital and is fining people found stealing water from the system. This will help the utility to meet demand until May 31, when the rainy season is scheduled to start, according to Arévalo. Sanaa will also drill three new wells to alleviate the water scarcity.
In mid-December the Los Laureles reservoir was working at 67.4% of its capacity, with 7.08Mm3 of water, while the La Concepción reservoir was operating at 57.6% of its capacity, with 20.9Mm3 of water.
The full interview with Jack Arévalo will be published in this week's Water & Waste Perspectives, for subscribers only.
By Indiana Corrales
Business News Americas
* Govt submits constitutional reform to declare water a national resource - Chile
The Chilean government has submitted a constitutional reform to congress which declares water a national resource for public use, congress reported in a release.
The text of the document will be analyzed by the constitution committee.
The proposal was presented as urgent and is expected to be discussed and passed by the lower house within 10 days.
The reform includes water in its liquid, solid - including glaciers and snow - and gaseous states.
The current code, established in 1981, defines water as a national resource for public use, but the fact that all hydrological resources belong to the nation is not explicit in the constitution.
If approved, the modification would also establish limits and obligations regarding water rights.
Hydrological resources must be recognized as national property for public use by the constitution. The current water code created an imbalance between public wellbeing and the interests of a few private parties by leading to a disproportionate concentration of water rights being held by a few, and this needs to be changed, the document says.
According to Chile's anti-trust tribunal (TDLC), 90% of the water rights granted for hydroelectric generation are in the hands of just three companies.
By Business News Americas staff reporters
* Copasa approves US$1.3bn investment plan - Brazil
Brazil's Minas Gerais state water utility Copasa (Bovespa: CSMG3) has approved a 2.2bn-real (US$1.3bn) two-year investment plan.
The utility will invest 1.08bn in 2010 and 1.09bn in 2011, news service Agência Estado reported.
Its subsidiary Copanor will invest 81mn reais of this in 2010 and 240mn reais in 2011. Copanor was created to provide water supply and sewage treatment services to towns and villages with 200-5,000 inhabitants, which pay lower rates than those charged in the rest of the state.
The investment budget could change if the sanitation authority (Arsae) approves a rate adjustment that differs from projections, the report said.
Copasa supplies potable water in 611 municipalities to about 12.6mn customers and provides sewage services in 194 municipalities to some 7.1mn customers.
Approximately 40,894km of pipelines and 4mn connections make up the company's water supply system. Copasa's sewerage network provides about 2.3mn connections through 15,039km of pipelines.
By Business News Americas staff reporters
* Environment ministry becomes law - Chile
Chilean President Michelle Bachelet has passed the law to create an environment ministry, a national environmental evaluation service and an independent environmental watchdog.
The law was approved by congress in November and became effective on Tuesday.
The new entities will improve the supervision of and compliance with environmental laws, boosting Chile's environmental standards, environment minister Ana Lya Uriarte told BNamericas in a previous interview.
While some companies argue that the cost of projects will increase, the new administrative structure will benefit all sectors as it will make it easier to obtain loans and financial support from multi-lateral agencies, given that they prefer sustainable initiatives.
By Business News Americas staff reporters
* Water companies to reduce rates by an average 2.8% - Chile
Potable water and sewage service rates in Chile will decrease by an average of 2.8% in January, the country's sanitation service authority SISS said in a release.
The decrease, which will come into effect on January 15, will benefit about 1.4mn clients whose average monthly consumption is 15m3.
The rate modification will be applied by water companies in regions II, IV, V, X, XI, XII and the metropolitan region.
Economic index values are the principal cause for the rate reduction, according to the release.
Potable water and sewage service rates fell by an average of 7.4% during 2009 for the same reason.
By Business News Americas staff reporters
* DGA requests investigation over possible irregularities in Pascua Lama - Chile
Chile's general water authority DGA has requested an investigation into Canadian miner Barrick Gold's (NYSE: ABX) Pascua Lama project, DGA head Rodrigo Weisner said in an interview with local radio Bío-Bío.
DGA is asking the regional environmental authority, Corema, to carry out an investigation to determine the existence of any irregular waste disposal areas.
Dumping materials in places that have not been authorized by authorities could damage the area's glaciers, said Weisner.
If the investigation shows that the mining firm is failing to comply with environmental norms, the consequences could go from fines to the revocation of the resolution allowing the project to be carried out, Weisner said.
Construction at Pascua Lama started three months ago.
By Business News Americas staff reporters
* INRH to repair water network over 10-15 years - Cuba
Although more than 95% of Cubans have access to potable water, approximately 15,000l of water is lost each month due to leaks in the pipelines, Cuban daily Granma reported.
The losses amount to over 50% of the water being supplied in the country.
To rectify the situation, the national water resources institute (INRH) has drawn up a plan to repair the infrastructure over a period of 10-15 years, the report said.
The leaks are mainly due to the age of the network as many pipelines are between 50 and 100 years old. Efforts to repair leaks have not been successful as once one leak is eliminated the build-up of water pressure causes another. Therefore, authorities have decided the only permanent solution is to replace the complete network, the report said.
Some of the most affected cities are capital La Habana, Santiago, Holguín, Camagüey and Las Tunas. In the capital, some 2,500km of pipelines are to be restored within five years.
To carry out the rehabilitation program, three high density polyethylene pipeline manufacturing companies have been built. The firms are located in Ciego de Ávila, Holguín and La Habana.
This year, INRH plans to work on 900km of pipelines throughout the country for which the factories will have to produce between 12,000t and 15,000t of raw materials, the report said.
By Business News Americas staff reporters
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In-deph interview
* "There is potential for dozens of sites to become CDMs at the moment"
Francisco Blanco
Latin America CDM project development manager
Biogas Technology
Mexico
http://www.bnamericas.com/interviews/waterandwaste/Francisco_Blanco_,Biogas_Technology,/169679420
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Main companies covered in today's news
* Japan International Cooperation Agency
http://www.bnamericas.com/company-profile/en/Japan_International_Cooperation_Agency-JICA/169679420
* Companhia de Agua e Esgoto do Ceará
http://www.bnamericas.com/company-profile/en/Companhia_de_Agua_e_Esgoto_do_Ceara-Cagece/169679420
* Superintendencia de Servicios Sanitarios
http://www.bnamericas.com/company-profile/en/Superintendencia_de_Servicios_Sanitarios-SISS/169679420
* The World Bank Group
http://www.bnamericas.com/company-profile/en/The_World_Bank_Group-World_Bank/169679420
* Corporación Nacional del Cobre de Chile
http://www.bnamericas.com/company-profile/en/Corporacion_Nacional_del_Cobre_de_Chile-Codelco/169679420
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