Machala Tripleoro Water Concession

distressed

In 2004, Triple Oro began operating the assets of Empresa Municipal de Agua Potable y Alcantarillado de Machala (Emapam), in the province of Oro. The length of the concession contract was not publically available. The contract was originally signed by the municipality of Machala and Triple Oro in July 2001, but conflicts with civil groups and workers from Emapam delayed its implimentation until 2004. In 2004, Epamam had a capacity of 400 litres per second, but needed an additional 350 litres per secon of capacity to reach the unserved portion of Machala's population. An investment of approximately US $10 million was needed to meet the capacity needs of the municipality. Triple Oro was a company of mixed capital with participation of Oriolsa SA [Ecuador] and Sociedad de Acueducto, Alcantarillado y Aseo de Barranquilla SA ESP (Triple A) [Colombia]. Triple A primarily serving Barranquilla, Colombia as well as the Ecuadorian province of Samborondon. The mix of public and private capital was not known. In October 2009, an audit conducted by Ecuador's housing ministry Miduvi recomended the renegotiation of water concession contracts held by Amagua and Interagua after alleging distortion in thier rates as well as the lack of a social tariff. Miduvi also recommended the termination of Triple Oro's contract in Oro province. Under Ecuadorian law, if the contracts were not renegotiated within one year, they could all be terminated. The comptroller general was reviewing the report as of December 31, 2009. Tender info needed as well as percentage private