Aguascalientes Water and Wastewater Treatment Services

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On October 21st, 1993, the State government of Aguascalientes, Mexico, awarded a 20 year concession for its water and wastewater treatment services to private consortium Concesionaria de Aguas de Aguascalientes SA (CAASA). Under the concession contract, CAASA became responsible for provision of the water supply, sewage, and sanitation services, including billing and charging, as well as planning, designing and construction of infrastructure in both urban and rural areas of the state of Aguascalientes, central Mexico. CAASA pledged to carry on an investment program aimed at rehabilitating water supply and sewage systems, mainly old pipes in downtown area. The contract included the construction of a sewage plant capable of processing two cubic meters of sludge per second and the expansion of groundwater supply with financing of the federal government. In 1993 Aguascalientes had a population of almost 800,000. The state government kept regulatory and supervision functions as well as ownership of the assets, which the concessionaire could not use as guarantee for loans. The concessionaire was to pay the Municipality concession fees of 10 percent of the total billing and charges for service provision. Project company CAASA was created and owned by Ingenieros Civiles Asociados (ICA, Mexico, 36%), Banamex (Mexico, 34%), and Generale des Eaux (renamed Veolia, France, 30%). CAASA and the State government renegotiated the original contract in April 1996. As a result of the renegotiation water tariffs were changed and the concession term was extended from 20 to 30 years. The Aguascalientes Municipality and Mexico’s National Water Commission (CNA) also agreed to supply the concessionaire with 53 million pesos for network expansion works. Sponsors need updating when more information becomes available. Spanish FCC seems to be involved, through Proactiva. None