Pedro Moncayo water supply

concluded

In 2004 the state government of Pedro Moncayo, Ecuador, awarded a five year management contract for the water and sanitation services in the city of Tabacunda and several smaller towns to private company Leonardo Armijos Luna. The contract required Leonardo Armijos Luna to oversee a series of system improvements and, subsequently, to operate and maintain both the main transmission pipeline and the water distribution system in the municipal capital. The length of the contract was five years or until five million cubic meters of water were sold, whichever came first. Leonardo Armijos Luna did not take on any investment risks, but did assume responsibility for commercial risks (billing, collection, and operational risks). Leonardo Armijos Luna was an Ecuadorian construction company. The contract was awarded through a competitive tender. The Pedro Moncayo water project was part of the Rural and Small Towns Water Supply and Sanitation Project (PRAGUAS), which received financing from the World Bank (IBRD Loan 7035-EC for US$32 million), municipalities and local communities. In 2009, the contract term expired. The IBRD staff had no more information on the project and it was assumed concluded.