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Friday, January 15, 2010
Today's News Headlines
* Spanish firms eye water, santiation PPPs in Cali - Colombia
* Emcali draws up investment plan to complement US$10mn roadworks - Colombia
* Chamber of construction documents development priorities - Costa Rica
* Camif mezzanine fund in advanced negotiations - Empla - Regional
* Ministry spending US$10mn on flood protection - Peru
* Calderón opens US$8mn Mintzita potable water plant - Mexico
* Funasa approves US$57.4mn for small town sanitation projects - Brazil
* Govt to invest over US$200mn in infra, water works in Chiriquí - Panama
* World Bank, IDB pledge millions to support Port-au-Prince - Haiti
* Vical reports 18% increase in glass recycling - Regional
* Construction of solid waste treatment plant to start in April - Colombia, Ecuador
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* Spanish firms eye water, santiation PPPs in Cali - Colombia
Spanish firms have contacted Colombia's Cali-based multi-utility Emcali to express interest in forming JVs with the firm to develop large projects, the planning manager of Emcali's potable water and sanitation division, Eduardo Arbeláez, told BNamericas.
Emcali is a state-owned utility but the firm is open to reaching agreements with private firms to form public-private partnerships (PPP), Arbeláez said.
Since the contact is preliminary and no agreements have been signed yet, Arbeláez preferred not to name the Spanish firms involved.
The utility is not analyzing any PPP in particular, but its development plan includes projects that could well use the support of the private sector, according to the planning manager.
The project to build a reservoir with the capacity to hold 11Mm3 of water is an example of an initiative that could be developed with the help of a private firm, said Arbeláez. Emcali is currently studying the environmental feasibility of this project, which has an estimated construction cost of 80bn pesos (US$41mn), Arbeláez added.
The initiative includes the construction of a 180m dam with the capacity to produce 2.5m3/sec of water.
Emcali's current potable water production capacity guarantees full supply to the city's population until the year 2035. The reservoir would guarantee supply until 2050.
The project's main attraction, however, is its hydroelectric potential, said Arbeláez, as the 180m fall would be used to generate electricity.
PPPs could help Emcali finance projects that cannot be covered by the utility's own profits. The company was intervened by Colombia's basic service authority in 2003 and must first improve its financial management before being granted permission to request loans to finance new projects.
By Eva Medalla
Business News Americas
* Emcali draws up investment plan to complement US$10mn roadworks - Colombia
Colombia's Cali-based multi-utility Emcali is drawing up an investment plan to complement the city's 20bn-peso (US$10.1mn) road plan to be carried out this year, the planning manager of Emcali's water and sanitation division, Eduardo Arbeláez, told BNamericas.
The road plan consists of rehabilitating the network in 22 of the city's districts. Works will be carried out on a total of 250km of main and secondary roads, an official from the municipality's planning division told BNamericas.
Government authorities are currently analyzing local roads to determine priorities, the official said.
Works include the reconstruction of streets in poor conditions and repaving those where the current asphalt layers are deteriorated, the official added.
"Emcali will take advantage of these works to renew some of its potable water and sewage pipelines at the same time," said Arbeláez.
The utility is working together with the local government and is studying the networks located along the roads to be worked on. "We are drawing up our investment plan for this project, and will move forward as the municipality decides its priorities," Arbeláez said.
Emcali will also partly modify the sanitation network's design by installing it under sidewalks which will increase the lifespan of the local road network.
Tenders will be launched as soon as the entities determine priorities.
By Eva Medalla
Business News Americas
* Chamber of construction documents development priorities - Costa Rica
Costa Rica's chamber of construction (CCC) has drawn up a document to help the government create a national transport plan for 2010-35, CCC president Ricardo Castro told BNamericas.
The document was prepared with the national road association and includes the areas considered priorities for the country's infrastructure development.
"It is important for the government to start planning and listing objectives and goals for infrastructure development, as well as the processes that must be followed to achieve them. That is why we are interested in making this contribution," Castro said.
The list of recommended priorities includes the expansion of the highway that runs from capital San José to the city of San Ramón; expansion of the Interamericana Norte highway connecting Barranca to Peñas Blancas; conclusion of pending works at the Juan Santamaría international airport; modernization of the Limón port; and maintenance works on the national road network.
Urban sewerage and water expansion were also listed as priorities, as were different energy generation initiatives to be carried out by the state power company ICE.
By Indiana Corrales
Business News Americas
* Camif mezzanine fund in advanced negotiations - Empla - Regional
The Central American mezzanine infrastructure fund (Camif), which closed late last year at US$150mn, is offering long-term funding in 10 Latin American countries, fund manager EMP Latin America's (Empla) senior associate, Lucas de Beaufort, told BNamericas.
Camif made its first mezzanine investment in Mexican palm oil producer Promoción e Industrialización de Palma in December and is in advanced negotiations for a number of investments. "We are looking at various renewable energy potential deals and expect to close these opportunities shortly," de Beaufort said.
The fund's partners are IDB, the World Bank's IFC, the Netherlands Development Finance Company (FMO), the Central American Bank for Economic Integration (Cabei), the Mexican Fondo de Fondos (CMIC) and the Finnish fund for Industrial Cooperation (Finnfund).
Camif offers long-term mezzanine financing to private infrastructure companies in Central America, Mexico, Colombia and the Dominican Republic.
The fund will focus on traditional infrastructure projects such as transportation, energy and telecommunications, according to de Beaufort, but it will also invest in sectors such as natural resources, tourism, agribusiness, alternative fuels, health and education. Related sectors include water and sanitation, wastewater treatment, recycling and irrigation.
"Central America has huge infrastructure needs and given the dramatic drop in private sector capital flows to the region, Camif is very well positioned to make profitable mezzanine investments in this market environment," Empla's managing partner James Martin said in a release.
Mezzanine financing is proving to be a preferred solution for strengthening capital structures and attracting senior debt to viable projects, especially in Camif's focus region.
Empla is a joint venture between EMP Global and the senior members of its Latin American team. EMP Global is a private equity fund manager focused on emerging markets.
By Greta Bourke
Business News Americas
* Ministry spending US$10mn on flood protection - Peru
Peru's housing and sanitation ministry is spending 28.2mn pesos (US$9.9mn) on flood protection in several districts of Lima province, the ministry reported on its website.
The money will be spent to build 150 containment walls in the Ate Vitarte, San Juan de Lurigancho, Lurín, Chosica, Independencia, Comas, Carabayllo, Collique and Villa María del Triunfo districts, which were recently declared in a state of emergency due to heavy rains.
In Villa María del Triunfo, the ministry is spending 5.76mn soles to build 37 containment walls as part of the district's town improvement program.
The structures aim to protect settlements located at a high altitude, which are particularly vulnerable to landslides and mudslides caused by flooding, the ministry said.
By Business News Americas staff reporters
* Calderón opens US$8mn Mintzita potable water plant - Mexico
Mexican President Felipe Calderón has officially opened the Mintzita potable water plant in Michoacán state capital Morelia, the presidential website reported.
The plant cost 106mn pesos (US$8.53mn), of which the federal government provided 40%, while the state and municipal governments each provided 30%.
Speaking at the plant's inauguration, Calderón reiterated calls for the population to conserve water supplies to combat the country's ongoing water crisis.
"The federal government is working to put an end to the degradation of our rivers, lakes and aquifers, and use water in a more efficient and responsible way," Calderón said.
The new plant is part of government efforts to increase potable water coverage in the country from 91 to 92% during 2010, Calderón added.
The potable water plant, which has been operational since November, has the capacity to treat 1,500l/s, and will serve 450,000 residents, or 30% of the city.
The project was carried out under national water authority Conagua's urban potable water, sewage and sanitation program Apazu.
By Business News Americas staff reporters
* Funasa approves US$57.4mn for small town sanitation projects - Brazil
Brazil's national health foundation (Funasa) has approved some 101mn reais (US$57.4mn) for sanitation projects in small towns in the state of Paraná, state water utility Sanepar reported in a release.
Resources will be transferred in 1H10 and a total of 88.2mn reais will be used to expand water supply and sewerage systems in 52 municipalities with up to 50,000 people.
Another 13.2mn reais will be used to supply water to residents in more rural areas, the release said.
The investment will help the company reach its goal of raising its small town sewage collection and treatment rate to 65%, according to Sanepar president Stênio Jacob.
"These investments will fill the gap in the country's growth acceleration plan (PAC) which, until now, has been directed to medium and large cities," Jacob said.
In addition, the company will provide 12.8mn reais of its own resources.
The utility has operations in 623 cities and towns where it provides 100% potable water coverage to 8.8mn people and 58% sanitation coverage to 5.2mn people.
Sanepar operates 174 potable water treatment plants and 227 sewage treatment plants. Its entire network consists of 61,592km of pipelines.
By Business News Americas staff reporters
* Govt to invest over US$200mn in infra, water works in Chiriquí - Panama
Panama's government has announced an investment of more than US$200mn for infrastructure and water projects in the province of Chiriquí, the presidential website reported.
More than US$180mn will be invested in road projects including the expansion of the David-Boquete highway to four lanes, according to public works (MOP) minister Federico Suárez. In addition, the ministry will widen the Panamerican highway to four lanes between the districts David and San Félix.
The government also announced a budget of US$21.6mn for sewerage systems and maintenance works in several communities including Los Olivos, Valle de la Mina, San Valentín and Volcancito.
Other investments are to be made in social and health programs.
Chiriquí is located in Panama's western region and is considered to be the country's third most important province.
By Business News Americas staff reporters
* World Bank, IDB pledge millions to support Port-au-Prince - Haiti
The World Bank will provide an emergency grant of US$100mn to support recovery and reconstruction in Haiti after a 7.0-magnitude earthquake shook capital city Port-au-Prince on January 12, the bank reported in a release.
The World Bank is sending experts to work with the Haitian government and its international partners to assess needs and losses, and to create a plan for recovery and reconstruction. The global facility for disaster reduction and recovery (GFDRR) has allocated US$250,000 for this assessment.
The bank also plans to provide seed resources to establish a multi-donor trust fund called the Haiti Reconstruction Fund, which is to facilitate the delivery of international support.
There are currently 14 main World Bank projects active in Haiti in areas including disaster risk management, infrastructure, community-driven development, education and economic governance. Since January 2005, the bank's International Development Association (IDA) has provided a total of US$308mn for Haiti. Trust funds administered by the World Bank have given more than US$55mn since 2003.
The new grant is still subject to approval by the bank's board of directors.
IDB PLEDGES MILLIONS
On Thursday IDB president Luis Alberto Moreno called for urgent international response to Haiti's devastating earthquake and pledged to redirect millions of dollars in IDB grants to support assistance and reconstruction efforts.
Moreno said that the bank can play a key role in rebuilding infrastructure and basic services in Port-au-Prince.
IDB's Haiti portfolio currently holds some US$330mn in undisbursed funds, of which US$90mn could be quickly redirected to high-priority civil works and reconstruction projects. The bank expects to approve up to US$128mn in new grants for Haiti this year, potentially providing more resources for reconstruction.
IDB has been working in Haiti for 50 years and is its leading source of multilateral financing, supporting investments in sectors such as transportation, electricity, water, education, health and agriculture.
By Business News Americas staff reporters
* Vical reports 18% increase in glass recycling - Regional
The Central American Vical glass group registered an 18% increase in the amount of glass recycled in 2009, local paper La República reported.
The company recycled a total of 65,000t of glass in 2009 compared to the 55,000t the previous year, the report said.
The group has three plants in Central America located in Costa Rica, Guatemala and Panama.
Vidriera Centroamericana (Vicesa), Vical's Costa Rican branch, recycled a total of 28,000t of glass during 2009. Guatemala's plant Vidriera Guatemalteca recycled 20,000t and Vidrios Panamá processed 17,000t.
The main buyers of Vical's recycled glass are firms from the beverage, food and pharmaceutical industries in the region.
By Business News Americas staff reporters
* Construction of solid waste treatment plant to start in April - Colombia, Ecuador
A bi-national solid waste treatment plant being developed by Colombian municipality Ipiales and Ecuadorian municipality Tulcán is scheduled to start construction in April, Ecuadorian paper La Hora reported.
A Colombian sanitation engineer was awarded the tender to develop the project and on January 11 offers for the construction and implementation of the plant were received by authorities. The plant includes the installation of a collection and recycling center.
Both municipalities launched tenders and each will be involved in the decision to award the construction project.
On Thursday authorities will meet with representatives from the Andean Community of Nations (CAN) to discuss the offers that were presented.
The initiative will require an investment of over US$1mn and will benefit over 170,000 inhabitants living in the two municipalities near the border that separates both countries.
The project will be financed by the European Union, CAN and the national and regional governments.
The plan has four phases: environmental education and training; the design of a cleanup and solid waste collection system; final solid waste disposal; and drawing up a management model.
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,/170072983
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Main companies covered in today's news
* Empresas Municipales de Cali
http://www.bnamericas.com/company-profile/en/Empresas_Municipales_de_Cali-Emcali/170072983
* The World Bank Group
http://www.bnamericas.com/company-profile/en/The_World_Bank_Group-World_Bank/170072983
* International Finance Corporation
http://www.bnamericas.com/company-profile/en/International_Finance_Corporation-IFC/170072983
* Comisión Nacional del Agua
http://www.bnamericas.com/company-profile/en/Comision_Nacional_del_Agua-Conagua/170072983
* Inter-American Development Bank
http://www.bnamericas.com/company-profile/en/Inter-American_Development_Bank-IDB/170072983
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