Chihuahua North Wastewater Project

concluded

In July 1992 the municipality of Chihuahua, Mexico, through its Junta Municipal de Agua y Saneamiento, awarded a 13 year build, own and operate contract for a wastewater treatment plant to private company Atlatec Chihuahua SA. The plant was designed to treat 1.2 cubic meters of wastewater per second. The wastewater treatment plant was intended to begin operations in January 1995. The concessionaire was going to operate the plant for a ten year period. The main shareholders of Atlatec Chihuahua were Promotora de Infraestructura de Mexico, SA de CV and Grupo Consultor en Estudios del Medio Ambiente (Gema) SA de CV, with stakes of 66 and 34 percent, respectively. Once completed, the plant was to be operated by Earth Tech Mexico SA, also owned by the same group as Atlatec Chihuahua. Financial closure for the $17 million project was reached as follows: Chase Manhattan provided a $9 million 8.5 year limited recourse loan; the municipality offered a $5.4 million as grant; $2.6 million came as equity from the private operator. BANOBRAS also provided a line of credit guaranteeing payment for the project company by the municipality in the case of a shortfall. None None