Hermosillo Wastewater Treatment Plant II

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The water utility serving Mexico's Sonora state capital Hermosillo, Agua de Hermosillo, awarded a tender to build a new wastewater treatment plant. The plant was planned with capacity to treat 2.5m3/s in a first phase and 3m3/s at a later stage. The plant was part of the 11bn-peso Sonora SI integrated water plan, which also included the construction of new dams and reservoirs and a 250km pipeline to supply water to state capital Hermosillo. The utility received seven bids for the plant, with 18 firms participating. Offers were presented by Mexican firm Atlatec; Spanish, French and Mexican consortium Aqualia, and Spanish and local group Promotora del Desarrollo de America Latina. Local companies Grupo Mexicano de Desarrollo (GMD), Ingenieria de Sistemas Sanitarios y Ambientales and Servicios Integrales de Ingenieria y Administracion de Obras also presented an offer. The plan was awarded to the consortium led by local firm Cobra. However, after disconformity from another bidder, the bidding was declared null. The bid was later awarded to TIAR Hermosillo, S.A.P.I. de C.V., comprised by Mexican firms Fypasa Construcciones, S.A. de C.V. and Gech Ingeniería y Servicios, S.A. de C.V. TIAR Hermosillo built the plant under a public services provision (PPS) contract, a type of PPI often used in Mexico, in which the bidder receives fixed payments from the government for service provision. The contract was initially awarded to Cobra in October 2010 and the plant was initially scheduled to start operations in 2012. However, the contract was signed on April 11, 2012, construction started in August 2012 and operation was postponed to the end of 2013. The plant cost was US$86.15 million (Mexican Peso (MX$) $1.045 billion). A loan from North American Development Bank (NADB) financed US$34.62 million (MX$420 million), 40.2% of project costs. The remaining costs were covered by a Mexican federal grant through the Mexican national infrastructure fund, FONADIN (US$15.7 million); a loan from a commercial bank (US$13.8 million), and an equity contribution from the private concessionaire under the service agreement (US$9.8 million). According to another source, the contribution from National Infrastructure Fund was planned to be a 27.40% capital grant, equity 20.70% and 51.90% were to be loans. North American Development Bank (NADB) also provided a loan to the Municipality of Hermosillo for the monthly availability payments. As of March 7, 2013, 25% of construction had been executed. Info not available on FC. As of March 2013 25% of construction was executed. Investment amounts vary among sources, as well as debt and equity data. Totals do not add up. Update when available.