Aguas de San Pedro

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On August 2nd, 2000, the Municipality of San Pedro Sula, Honduras, acting through public utility Division Municipal de Agua (DIMA), awarded a 30 year concession for the city’s water and sewerage services to private consortium Aguas de San Pedro (ASP). In 2000, the city of San Pedro Sula had some 527,000 inhabitants and was the largest commercial and industrial area in Honduras. Under the terms of concession the private operator committed to expand water coverage from 85 percent of the population to 100 percent by the end of the third year. The sewage network, which in 2000 covered 65 percent of the population, was to be expanded to achieve 100 percent coverage by the contract’s sixth year. The private operator also had to meet service quality standards, such as adequate water pressure and 24-hours continuous service. The concession was awarded through a competitive tender process started in December 1999. Three bids were received. In August 2000 the winner was declared to be the Italian-Honduran consortium Aguas de San Pedro (ASP), made up of AGAC 30%, Acea (Roma) 31%, Astaldi (Roma) 15%, Ghella Sogene S.p.a. 15%, Lotti Roma 4%, and Terra Representaciones y Servicios S.A. de CV Honduras 5%. In order to comply with its contractual obligations the private consortium was expected to invest some $207.9 million during the 30-year concession. This capital investment plan was broken down into $115.2 million for the water services and $92.7 million for sewerage. The capital investment plant included construction of a waste water treatment plant that would enter in operation starting from the sixth year. In 2001 the Inter-American Development Bank (IDB) provided a $13.7 million A-loan for investments made in the first five years of the project. None None