Torreon Wastewater Project

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In August 1999 the municipality of Torreon, Mexico, awarded a 18.5 years build-own-transfer contract for a $20 million wastewater treatment plant to private operators Industrias del Agua, SA de CV (IASA) and Fypasa Construcciones SA de CV (FYPASA). The plant was a sewage treatment lagoon located in Torreon, Coahuila State. The lagoon had a processing capacity of 1,900 liters per second and was designed to treat wastewater from some 500,000 people. IASA was a water and wastewater services company based in Monterrey, and controlled by US Azurix, the water division of Enron. In 2002 French-Belgian utility giant SUEZ acquired Azurix's share in the Torreon project. The deal was part of the transfer of Azurix's shares in five water and wastewater projects in Mexico. SUEZ acquired the shares in the five projects for a total US$93 million. SUEZ purchased the stakes through local company Aguas, Servicios e Inversiones de Mexico (ASIM), a 50-50 joint venture with Mexican mining group Penoles. By 2003 the project was owned by ASIM (90 percent) and FYPASA (10 percent). The plant was designed and financed by the private consortium. Construction of the plant began in November 1999 and was completed in 2001. None None