Project Termo - Mexico City Waste-to-Energy PPP

inactive

Project Termo – Mexico City Waste-to-Energy PPP (the “Project”) consists of the design, development, construction and operation of a greenfield waste-to-energy (WTE) plant located near Mexico City, Mexico. The project will be located inside the federal zone of the Ex Texcoco Lake, in the Municipalities of Texcoco, Nezahualcóyotl and Chimalhuacán in the State of Mexico and near the limits of Mexico City.The Borrower has signed a 33-year Public-Private Partnership (Proyecto para Prestación de Servicios, or “PPS”) contract with the Mexico City government through the Urban Services Management Unit (Agencia de Gestión Urbana (“AGU” or the “Granting Authority”)). The Equipment, Procurement and Construction (“EPC”) contractor will be a global leader in energy from waste and the Operator and Maintenance Provider (“O&M”) will be Proactiva Medio Ambiente Mexico, S.A. de C.V., which is a subsidiary of Veolia Environment S.A.The Project will (i) add 150 MW of energy capacity to the Mexican electricity system by processing residual urban solid waste (after sorting for recycling or composting); (ii) generate at least 965 GWh of electricity for consumption by the Mexico City Public Transport System (Sistema Colectivo de Transporte); and (iii) process up to approximately 1,678,000 tons of non-organic urban waste annually (equivalent to 35% of Mexico City’s annual urban waste generation), thus directly supporting Mexico City’s Zero Waste (Basura Cero) Program, the main objective of which is to reuse/recycle the majority of Mexico City’s solid waste by 2020 through specific initiatives that aim to extract potential benefits from all waste which is being disposed of currently.The total cost of the project is expected to be approximately US$ 750 million. It is expected that the financial plan will include loans from the Inter-American Investment Corporation (“IDB Invest”) and the Inter-American Development Bank (“IDB”) for up to US$ 200 million for a term of up to 20 years.