Nogales Water Supply and Distribution, Phase 1

active

In October, 1997, the municipal government of Nogales, Mexico, through its Organismo Operador Municipal de Agua Potable, Alcantarillado y Saneamiento de Nogales (OOMAPAS Nogales), awarded a 25 year concession contract for the city’s water system to private operator Servicios de Agua de Nogales. The project was the first phase of a comprehensive plant to expand and rehabilitate the city’s water systems. The city of Nogales was located in the Northern state of Sonora and was home to some 215,000 inhabitants in 1996. Servicios de Agua de Nogales was a special purpose company created by Atlatec SA de CV, a subsidiary of the Environmental Division of Cydsa SA de CV. In 2001 Cydsa sold its Environmental Division to Earth Tech, a subsidiary of US Tyco International. The first phase of the Nogales project included construction of a new aqueduct, regulating tanks and 33 kilometers of peripheral water lines, as well as the rehabilitation of the existing aqueduct and several water and sewage lines. In 1997 some 40 percent of the water produced was lost through network leaks. The entire Nogales project was estimated to cost some $39 million. Phase one was expected to cost a total $29 million. Financing was provided as follows: Atlatec, $2 million in equity; North American Development Bank, $8,687,712 grant under the Border Environment Infrastructure Fund; North American Development Bank $9.26 million loan; Comision Nacional del Agua $9 million. None # connections estimated as (215,000*.85)/4.