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Thursday, January 21, 2010
Today's News Headlines
* Wastewater treatment moves into high gear - Regional
* Conagua postpones US$419mn El Zapotillo-León pipeline tender - Mexico
* Emcali to invest US$62m in water, sanitation - Colombia
* Aid organization purifies water to prevent disease outbreak - Haiti
* Mato Grosso do Sul governor to launch tenders worth US$21mn - Brazil
* Minag to publish new water regulations by end-Jan - Peru
* Swiss development agency funding US$10.5mn Chiclayo waste management project - Peru
* Mendoza concessions integrated medical waste system - Argentina
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* Wastewater treatment moves into high gear - Regional
Although levels of wastewater treatment are still quite low in Latin America compared to developed countries, notable progress has been made over recent years and opportunities abound, according to the January BNamericas infrastructure intelligence series report.
Historically a low priority in comparison to water capturing and distribution, wastewater treatment is finally making it onto the agenda of the region's biggest economies.
Attractive markets for investors include Mexico, Brazil and Peru, where governments are promoting public works programs not only to increase potable water and sanitation coverage, but also to clean up and preserve resources.
At the same time, the effects of climate change are causing drought throughout the region, prompting authorities to worry more about their dwindling resources. The need to reduce pollution levels in rivers, lakes and along the coast has wastewater treatment plans in full swing.
The Peruvian government is actively looking for private sector investment and a plan to raise wastewater treatment from the current 15% to 100% by 2015 is underway. In addition, last year the national standards for water quality were approved, setting new levels for treated wastewater.
Meanwhile, in Mexico authorities have set the goal of treating 60% of wastewater by 2012 and recently awarded a tender to build one of the largest wastewater treatment plants of its kind in the world, Atotonilco.
Brazil, on the other hand, has been making slow progress. Despite government investments of 4.5bn reais (US$2.5bn) a year over the last three years, only 32% of collected sewage is currently treated. Experts agree that the only way to revert this situation is by handing over more concessions to the private sector.
The BNamericas intelligence series examines how some Latin American countries have managed to reach wastewater treatment levels of over 80%, analyzing successful models and indicating the most likely countries to achieve significant growth in the industry in the coming years.
To see the report, please go to this link (http://member.bnamericas.com/store/view_item.jsp?sku=71I51005545&idioma=I)
By Greta Bourke
Business News Americas
* Conagua postpones US$419mn El Zapotillo-León pipeline tender - Mexico
A tender to build a pipeline to transfer water from Mexico's El Zapotillo reservoir in Jalisco state to the city of León in neighboring Guanajuato state has been postponed until later this year, an official from national water authority Conagua's Jalisco state office told BNamericas.
The tender was scheduled to be launched in December but has been postponed while local authorities reach an agreement over how to distribute funding for the project, spokesperson Eugenio García Barajas said.
The project, which involves a public service provision (PPS) contract for the construction, operation and maintenance of a 140km pipeline, is complicated by the fact that it involves public entities at all three levels of government in both states, according to García Barajas.
"There are five players involved here: the two state governments, the municipality of León, the León public water utility and Conagua," García Barajas said.
The five groups are currently drawing up a working agreement to finance the project, which will reportedly cost some 5.35bn pesos (US$419mn) and the tender will go ahead once the agreement is signed.
National government has already earmarked 2.7bn pesos for the pipeline through national infrastructure fund Fonadin. The rest will be provided by state and municipal governments, as well as funding from the awardee.
Once construction of El Zapotillo reservoir is completed, the pipeline will provide potable water to León for the next 30-40 years and relieve the area's aquifers, which are suffering from severe overuse.
By Catherine Setterfield
Business News Americas
* Emcali to invest US$62m in water, sanitation - Colombia
Colombia's Cali-based multi-utility Emcali's water and sanitation division will invest 120bn pesos (US$61.5mn) this year, the division's planning manager Eduardo Arbeláez told BNamericas.
Investments include expanding the firm's potable water and sanitation network; maintenance work; and studies to plan new initiatives.
Maintenance involves replacing old networks and carrying out repairs on the company's potable water and wastewater treatment plants, water tanks and networks.
The investment is part of the company's 2007-16 investment plant, which totals 400bn pesos, Arbeláez said.
Emcali's water and sanitation division provides potable water services to 98% of Cali's urban area. This does not include the city's informal settlements, where water is extracted illegally from the company's network, said Arbeláez. Sewage coverage is at 93.5%.
By Eva Medalla
Business News Americas
* Aid organization purifies water to prevent disease outbreak - Haiti
The international aid organization Care is training survivors from last week's earthquake in Haiti how to purify contaminated water and is preparing hygiene kits to help prevent a secondary crisis: the outbreak of disease, the organization reported in a release.
The Haitian capital lacks sewerage infrastructure and the earthquake ruptured water lines, creating a perfect formula for the spread of water-borne disease.
To alleviate the situation, Care has been distributing water-purification packets to the Port-au-Prince population, an official from Care told BNamericas.
"From the outset, one of the first things we did was import water purification packets from Panama. We initially brought in 600,000 of these packets called PUR," the official said.
Once the powder is emptied into a bucket, solids begin to form and the clumps are strained out using a cloth. Each packet can purify 10l of water, enough for someone to drink safely for four days, the release said. The average person needs a minimum 2.5l of water per day.
Care representatives are showing people how to use the purifying packets, since the objective is for Haitians to start carrying out the process by themselves.
"We are trying to identify people in neighborhoods or communities and train them so they can then go on to train more people," the official added.
Care will be distributing the PUR packets in the coming weeks together with large buckets where water can be purified. The organization will also provide other items such as soap and sanitary napkins.
GARBAGE
Meanwhile, garbage is accumulating and adding to the health risks in Port-au-Prince. Overflowing garbage trucks stand still and the gutters are clogged with plastic bags, bottles and trash of all kinds, according to the Care release.
"We urgently need to address the waste disposal issue. If that garbage keeps accumulating, it will certainly spread disease," Care's country director in Haiti Sophie Perez was quoted as saying.
By Indiana Corrales
Business News Americas
* Mato Grosso do Sul governor to launch tenders worth US$21mn - Brazil
Brazil's Mato Grosso do Sul state governor André Puccinelli will launch three tenders for potable water and sanitation works on January 21, according to a release by state water utility Sanesul.
The works will be financed by a 37.8mn-real (US$21mn) budget, approved by the state for Sanesul at end-2009.
The largest investment will be made in Corumbá municipality where a 20.9mn-real tender will be launched to improve water supply, especially in elevated areas.
A 12.8mn-real tender will be launched to improve the sewerage system in Três Lagoas. The initiative will complement works already underway.
Finally, a 3.5mn-real tender will be launched for a project to expand the potable water supply network in the Ponta Porã municipality.
Sanesul celebrates its 31st anniversary on January 21.
By Business News Americas staff reporters
* Minag to publish new water regulations by end-Jan - Peru
Peru's agriculture ministry (Minag) is expected to publish the country's new water resources regulations by month-end after receiving a draft version of the supreme decree approving the law from national water authority (ANA).
The regulations were drawn up following meetings with all players involved in the issue of water resources, including user groups and private entities, ANA head Francisco Palomino was quoted as saying by government news agency Andina.
Among those consulted were national industries association SNI, national mining, oil and energy society SNMPE, exporters association Adex, universities, and local and regional governments, Palomino said.
Peru's new water law, approved by congress last March, guarantees water as a human right that cannot be bought or used as private property, and also requires the creation of new regulatory entities and policies.
The regulations will mean the creation of 14 decentralized water basin organizations (AAAs).
ANA has already prepared two of the six pilot projects that will implement the AAAs, one in Arequipa and another in Piura or Chiclayo in Lambayeque region, according to Palomino.
The pilot projects will be funded by US$20mn in loans from the World Bank and IDB, plus US$23mn in government counterpart funding.
By Business News Americas staff reporters
* Swiss development agency funding US$10.5mn Chiclayo waste management project - Peru
Swiss cooperation and development agency Cosude has approved a fund of 11mn Swiss francs (US$10.5mn) for an integrated waste management project in Peru's Lambayeque region capital Chiclayo, local paper Correo reported.
The initiative is aimed to make waste management services more environmentally friendly in an area that has struggled over how best to deal with its waste.
An estimated 12mn soles (US$4.2mn) is required to carry out the closure of landfills in Chiclayo, while 49mn soles is needed to install a solid waste treatment plant and a sanitary landfill, BNamericas reported previously.
Cosude said in May last year that it would provide funding for environmental and sanitation projects in Lambayeque, where 30% of the population lacks access to basic services.
The non-reimbursable fund will include technical assistance for regional and municipal government employees.
By Business News Americas staff reporters
* Mendoza concessions integrated medical waste system - Argentina
Argentine Mendoza province has signed a concession contract for the collection, transportation, treatment and final disposal of medical waste generated by public and private health institutions, local paper Diario Uno reported.
The contract was signed with a consortium formed by the firms Tysa and Lamcef.
The waste treatment plant is expected to operate at 100% of its capacity by October or November and will require an investment of 10mn pesos (US$2.63mn) to be made by the awardee. The new plant will be built in the Las Heras municipality, in northern Mendoza.
Previously, waste collection, treatment and disposal were managed by different firms.
The contract, however, has generated debate as the health institutions will have to pay a higher price for services. Rates increased from 3 pesos/k to 10.70 pesos/k, the paper said.
The Tysa-Lamcef consortium is controlled by the Argentine firm Industrias Metalúrgicas Pescarmona (Impsa).
By Business News Americas staff reporters
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In-deph interview
* "The government has decided to implement emergency measures to guarantee water supply"
Jack Arévalo
Manager
SANAA
Honduras
http://www.bnamericas.com/interviews/waterandwaste/Jack_Arevalo_,SANAA,/170884372
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Main companies covered in today's news
* Banco Nacional de Obras y Servicios Públicos S.N.C.
http://www.bnamericas.com/company-profile/en/Banco_Nacional_de_Obras_y_Servicios_Publicos_S,N,C,-BANOBRAS/170884372
* Servicios de Agua y Drenaje de Monterrey, I.P.D.
http://www.bnamericas.com/company-profile/en/Servicios_de_Agua_y_Drenaje_de_Monterrey,_I,P,D,-SADM/170884372
* The World Bank Group
http://www.bnamericas.com/company-profile/en/The_World_Bank_Group-World_Bank/170884372
* Empresa de Saneamento de Mato Grosso do Sul S.A.
http://www.bnamericas.com/company-profile/en/Empresa_de_Saneamento_de_Mato_Grosso_do_Sul_S,A,-SANESUL/170884372
* Comisión Nacional del Agua
http://www.bnamericas.com/company-profile/en/Comision_Nacional_del_Agua-Conagua/170884372
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