San Pedro Martir Waste Water Treatment Plant

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On May 11, 2007, the Queretaro State Water Commission (CEA) awarded a greenfield contract to Earth Tech Mexico SA de CV and Servicios de Agua Trident SA. de CV to construct and operate the San Pedro Martir Waste Water Treatment Plant for 20 years. The consortium was allocated 2 years for construction and 18 years for operation. The treatment plant was to process waste from the Querataro State Water Commission at a rate of 64,800 cubic meters per day. The consortium was also responsible for the construction of a utility for sewer collection that would be operated by CEA. The project was awarded as a part of a federal plan to expand and decentralize potable water, sewage and sanitation services and was in line with President Felipe Calderón's broader national development plan for 2006-12. 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 from the State of Queretaro to the consortium. The winning consortium was comprised of Earth Tech Mexico, SA de CV (50%), a subsidiary of Tyco Interntational (USA); and Servicios de Agua Trident, SA. de CV (50%), a subsidiary of Mitsui, Inc. (Japan). The winning consortium formed the special-purpose vehicle Promotora Ecologica San Pedro Martir SA de CV for the duration of the project. Financing for the project was provided by the joint venture of Earth Tech and Mitsui as well as the Mexican federal government. Conagua, the federal government water agency, signed an agreement with the state water commission to support decentralization of services by contributing 25% of the funding for the project, not to exceed 94 million pesos. The total investment commitment for the project was $US 32.8 million. Construction works were concluded in September 2010. The Mexican government stated that the consortium would recieve 25% of their cost through federal funding. Mitsui and and Earth Tech USA both stated that they had arranged financing for the project but did not provide details as to whether it was debt or equity, etc.