Arjona-Turbaco Water System

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In June 2004 the Columbian Department of Bolivar awarded a 20 year concession for the water and sewage systems in the towns of Arjona and Turbaco to private consortium Social de Acueductos y Alcantarillado de Colombia (CSAAC). Arjona and Turbaco had a population of 103,000 people in 2004. The private operator was to manage an investment program of 60bn pesos (US$21mn) over the 20-year concession. The Columbian federal government was to provide 45% of the investment funds, the municipalities 30% and the concessionaire 25%. The contract was awarded following a public tender, where CSAAC was the sole bidder. The bidding process started in 2002, but was delayed until 2004. In February 2004 the ministry of environment voided the bid, but the process was later resumed. The concession contract was finalized in June 2004. The CSAAC consortium was comprised of Mejilla y Llegas Constructores, Sicon SA, Sicon SA Servicios, Construcciones Insaca Ltda, and Sala SA ESP. The exact stakes of the shareholders were not disclosed. US$15.75 cash support from the government combines the municipal and federal government contributions (30 and 45 percent respectively). The cash injections were onlent from World Bank loans.