El Zapotillo Aqueduct

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In September 2011, the Spanish companies Abengoa and its subsidiary Abeinsa were awarded the contract to build and operate a water treatment, transport and distribuition facilities from the El Zapotillo dam. The project was set to benefit the municipalities of Leon, Canadas de Obregon, Jalostotitlan, San Miguel el Alto, San Julian, Encarnacion de Díaz, San Juan de los Lagos, San Diego de Alejandria, Lagos de Moreno, Union de San Antonio, Valle de Guadalupe and Villa Hidalgo (1.5 million people). The bidding criteria was the highest price paid for the right to develop the project. Two bidders presented offers: Abengoa/Abeinsa and Samsung/Techint. The winning bid was a value of US$ 347 million. The project included the construction of 139 kilometers of large diameter pipes, pumping stations with a total installed capacity of 24,000 kilowatts, a water treatment plant with a 3,800 liter/second capacity, a 100,000 cubic meter storage tank, and a 40 kilometer distribution circuit in the municipality of Leon. The 25-year contract was signed the Mexican Water Comission Conagua and the special purpose company Concesionaria del Acueducto El Zapotillo, S.A. de C.V. in October 2011. Investment was estimated at US$ 640 million. National Infrastructure Fund committed to provide 49% of the investment, while the remaining 51% would be covered by project ifinancing. Financial closure was achieved In December 2014, when state-owned bank Banobras approved a US$ 177 million long-term loan.