Navojoa Potable Water System

Cancelled

In November 1996 the municipality of Navojoa, Mexico, through its Organismo Operator Municipal de Agua Potable, Alcantarillado y Saneamiento Ambiental de Navojoa (OOMAPASN), awarded a 20-year lease contract for the city’s water and sewage systems to Mexican de Gestion del Agua (MGA). The contract granted MGA management, operation, and maintenance rights over the water and sewerage systems in the Navojoa municipality, home to some 140,000 people. In 1996 water losses in Navojoa were estimated at 60 percent. MGA committed improve efficiency and pay OOMAPASN $350,000 to at the start of the contract and 4.5 percent of revenues for the lifetime of the contract. MGA was awarded the concession through a competitive tender in November 1996. Eight consortiums were qualified and three submitted final bids: MGA, Servicios de Construction de Sonora and Mejoramiento Empresarial de Monterrey. The contract between the municipality and MGA was signed on December 4th, 1996. In 1996 MGA was a wholly owned subsidiary of Mexican Triturados Basalticos SA de CV (Tribasa). In December 2005 Tribasa changed its name to Promotora Y Operadora de Infraestructura SA de CV (Pinfra SA). Tariffs were set by OOMAPASN, which committed to ensure the financial viability of the operation by setting rates covering costs. In 2005 OOMAPASN unilaterally terminated the lease contract, a decision challenged in Mexican courts by MGA. None No. of connections estimated from population/4. Previous description had "investments in facilities" as $19.5 million, a figure I could not verify, and which contradicted the "lease" project classification.