Puerto Vallarta Wastewater Plant

cancelled

In November 1994 the Puerto Vallarta Water Authority (SEAPAL-PV), Mexico, awarded a 17 year build-own-transfer contract for a sewage treatment plant to private company Compania Tratadora de Aguas Negras de Puerto Vallarta, S.A. de C.V. (CTAPV). The plant was to be built over a two year period in the municipality of Puerto Vallarta, state of Jalisco. The municipality had some of 150,000 inhabitants and was a popular tourist destination. The sewage plant was designed to treat a maximum sewage flow rate of 2,500 liters per second. CTAPV was a special purpose company fully owned by Cascal, a joint venture of UK company Biwater and Dutch firm Nuon. Financial closure for the $33 million plant was reached as follows: $7 million was provided by International Finance Corporation ($5 million in senior loan and $2 million as a subordinated loan); $8 million was invested by Biwater as equity; $17 million in loans was provided by government owned BANOBRAS in the form of loans. Construction of the plant was completed in early 1995. CTAPV was paid monthly, according to the volume of water processed, at a tariff linked to the CPI to generate a real ROE of 11 percent. In September 2004 the BOT contract was canceled, and ownership of the infrastructure was transfered to municipal utility SEAPAL. An operations and maintenance contract was subsequently awarded to Cascal, but the private party no longer took on significant operational risks. None None