Queretaro Aqueduct II

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On May 24, 2007, the Queretaro State Water Comission signed a contract with Suministro de Agua de Queretaro, SA de CV (SAQSA) to build, own and operate a water supply and purification system for the state of Queretaro. SAQSA was given 26 months to build a technically complex 108km utility, a diversion dam, two pumping plants, a purification plant, and a storage tank known as Aqueduct II. Upon completion, SAQSA was to operate and maintain the system for 214 months. Aqueduct II had a capacity of 130,000 cubic meters per day. The program was a public private partnership and used funds from the Mexican development bank Banobras’ Infrastructure Investment Fund (FINFRA). Banobras formed FINFRA to increase the capacity of Mexican basic infrastructure by using a mix of public and private investment capital. The project was awarded on May 1, 2007 to Controladora de Operaciones de Infraestructura in an internationally monitored competitive tender. The contract was awarded to the consortium that met the technical requirements of the project and presented the lowest net present value of periodic payments. Final bids were initially submitted to the Queretaro State Water Commission in December 2006 by: Spain’s Acciona; Mexican consortia: C&C Ingenieria y Proyectos, Promotora del Desarrollo de America Latina and Scavi; and Controladora de Operaciones de Infraestructura. Controladora de Operaciones de Infraestructura was comprised of ICA SA de CV [Mexico, 37%], Fomento de Construcciones y Contratas S.A. (FCC) [Spain, 26%], Mitsui’s local subsidiary Servicios de Agua Trident, SA de CV [Japan, 26%], and Proactiva [Mexico, 11%]. Controladora de Operaciones de Infraestructura formed Suministro de Agua de Queretaro, SA de CV (SAQSA) as a special purpose vehicle for the duration of the project. The project reached financial closure in November 2007 when a US $150 million (MXN 1.7 billion) loan was arranged by Banco Santander as well as Nord LB and HSBC Mexico. MXN 1.45 billion was slated for the period of construction and MXN 250 million for the period of operation. Funds from the loan were available in monthly installments over a 26 month period. In addition to commercial bank debt, the project was financed through equity capital from the consortium and FINFRA, who contributed approximately US $72 million (MXN 800 million) as a cash subsidy. Total investment commitments for the project totaled US $246 million. SAQSA was to recoup its investment through fixed monthly payments of MXN 21 million from the Queretaro State water commission during the period of operation. Construction works were concluded in January 2011. IADB Loan?