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Argentina

• Buenos Aires province waterworks concessionaire Azurix BA continued to provide services in the first quarter of 2002 rather than walking away from the contract altogether. Azurix has been involved in disputes with the Government regarding the terms and conditions of its concession and has elected to withdraw from it. .
• Argentine authorities have abandoned plans to offer province Tucuman's waterworks service under concession to private parties. The Government Agency Enohsa, which took over Tucuman's waterworks service on an interim basis two years ago, established a new company called Sapem to act as the province's new waterworks concessionaire for 30 years. The province holds 90% of Sapem and the workers union the remaining 10%.

Bolivia

• Water company Aguas del Tunari has initiated arbitration over a dispute with Bolivia's government related to the termination of Aguas' 30-year concession contract to provide services to the city of Cochabamba. The company is seeking more than US$25million in damages. Municipal water utility Semapa will replace Aguas del Tunari. Semapa has just been awarded a 40-year concession contract.
• Sponsors of the US$62million Misicuni water tunnel project in Cochabamba have filed an arbitration request over a dispute with project developer Astaldi ICE. Astaldi ICE stopped work on the tunnel before completion, which Misicuni managers claim constitutes breach of contract. Tunnel drilling was due to be finished later this month and the entire project was on track for year-end completion. The tunnel is part of the Proyecto Multiple Misicuni, which includes the US$62 million Misicuni tunnel; a US$100 million dam and reservoir project; and the supply of drinking water and sewage collection, as well as treatment services. The US$100 million dam and reservoir work is expected to be put out to tender this year.

Brazil

• The Federal Government is investing US$68.9 million on water supply and sewerage works in more than 300 Bahia state municipalities, which will benefit more than six million residents.
• Ceara state water utility Cagece may have to make investment commitments of US$346 million to renew its concession contract with state capital Fortaleza. The investment would be to provide 100% water and sewerage service. In addition to this requirement, Fortaleza wants 25% of Cagece shares and 2% of its sales revenues for the utility's contract to be renewed. The demands would cost Cagece some US$407 million. Cagece, which is owned by the State government, has served Fortaleza since 1972 and its current contract ends this quarter. Fortaleza accounts for 75% of Cagece's revenues.
• The government of Espirito Santo is currently analyzing a proposal to sell 40% of shares in state water utility Cesan.
• The State of Mato Grosso do Sul has enacted a general water resources law. The law exempts small farmers from paying for water use rights, but requires large-scale farmers to obtain a permit for pumping water. The law penalizes those that pollute underground supplies.
• Parana state waterworks company Sanepar signed a 30-year concession contract to provide water and sewerage service to state capital Curitiba. Sanepar will pay the municipality some US$51.5 million over the 30-year period for the right to provide the services.
• Sanepar is auctioning a series of contracts to expand Parana coast's water supply infrastructure. Works, which will require a US$18.8 million investment, are expected to begin in the second quarter of 2002 and finish next year in municipalities Guaratuba, Matinhos, Pontal do Parana, Morretes and Guaraquecaba.
• The water resources council of Parana has approved a decree that will charge rates for water use at the Alto Iguacu and Alto Ribeira basins from next year. The charge will affect Parana state waterworks company Sanepar and the state's integrated power company Copel. The move is expected to reap some US$9.75 million per year for river remediation work.
• State-owned bank Caixa Economica Federal (CEF) will sell a 30% stake in Pernambuco water utility Compesa. CEF acquired the shares for US$59.2 million from Pernambuco's government.
• The government of Rio de Janeiro has initiated bidding procedures to carry out sewerage works in locality Recreio dos Bandeirantes, which will require some US$19.8 million investment.
• The governor of Rio Grande do Norte has submitted a bill to the state legislative assembly that will create a water management agency. The entity, to be called Instituto de Gestao das Aguas do Estado do Rio Grande do Norte (IGARN), will structure the state's water resources system.
• State-owned oil company Petrobras has signed an agreement with Sao Paulo state utility Emae and environment authority Sema to invest some US$53.4 million to cleanup the Pinheiros river.
• The governor of Sao Paulo will merge its water resources authority with the state's energy department in order to save costs. The water department oversees the state's 22 hydrographic basins and includes state waterworks company Sabesp as well as state water and resource management agency DAEE.
• Santa Catarina electricity distributor Celesc failed to attract any buyers for its 19.3% stake in state waterworks company Casan. Celesc is expected to stage another attempt to sell off its Casan shareholding this year. The power company expected to raise US$46.4 million from the sale.

Chile

• Waterworks regulator SISS imposed 33 fines totalling US$1.07 million last year to waterworks companies and companies that generate industrial wastewater, a 69% increase from 2000.
• The Chilean government's business development corporation Corfo will call for bids in March for a US$41.4million agricultural project for northern Region I capital Arica. The project includes a US$15million wastewater plant that would take water from local waterworks company Essat's Chinchorro outlet pipe, through which all of Arica's wastewater flows. An investment of about US$3.7million would be needed for the irrigation system.
• Water utility Essan will incorporate areas Chilex, Covadonga and Las Rocas - in city Tocopilla - into its service area. Region II company Essan will take over waterworks services in the three areas from state copper corporation Codelco and is spending some US$1.16million on new works that should be finished in September.
• Esval, water concessionaire for Region V, purchased regional waterworks operator Aguas de Lilen. Esval will take control of Aguas de Lilen's concession areas in the coastal town of Papudo once the country's waterworks regulator approves the transaction.
• Chile's southern Region VIII waterworks company Essbio officially inaugurated works to build a US$13.6million wastewater treatment plant in Los Angeles. Essbio has also obtained approval from Region VIII environment regulator Corema to Essbio's US$37million wastewater treatment plant for the metropolitan area of regional capital Concepcion.
• Santiago waterworks company Aguas Andinas (formerly Emos) has started operations at its US$150million El Trebal wastewater plant.
• Aguas Andinas plans to raise its stake in waterworks company Aguas Manquehue from 50% to 100%. Pending a positive shareholder vote in April, Andinas would buy 499 shares in Manquehue from Commercial Orbis II, controlled by Chile's Rabat family. Andinas bought its current 50% stake in Manquehue for US$10million in January 2000. Andinas services five million Santiago residents, with 100% potable water coverage through a 10,147km network and 97.3% sewerage coverage through an 8,053km network. Spain's Agbar and France's Suez control 54.2% of Andinas, while the Chilean government's industry development arm Corfo owns 44.2%. Aguas Manquehue has recently been awarded new concession areas in the Metropolitan Region (RM) localities of Colina and Lampa, north of Santiago. Manquehue services clients in the Santiago metropolitan region neighborhoods and localities of Chicureo, Colina, Huechuraba, Lampa, Los Trapenses Santa Maria de Manquehue and Vitacura.
• Nineteen companies have shown interest to Chilean water utility Essal for a contract to design and build a US$10million wastewater treatment plant for the city of Osorno. Essal plans to award the contract by end of May. Essal is owned by Spain's Iberdrola.

Colombia

• Four consortia submitted offers to the national land use institute Inat for a US$20.2million contract to supply and install irrigation equipment, and carry out environmental management and river basin protection works in Atlantico department area Santo Tomas el Uvito. Inat expects to award the contract in the second quarter of 2002.
• The Economic Development Ministry's waterworks department is auctioning 15-year waterworks concessions in Bolivar department towns Turbaco and Arjona. Contract signing is expected in March with the new operators expected to begin working in April.
• The national land use institute Inat has awarded a US$73million irrigation project in La Guajira department to six local firms grouped together as Union Temporal Guajira. The work order is expected to be issued in January. Desarrollo Guarija - made up of a local company and an Italian firm - won the contract to supervise works.
• Waterworks company Triple A was awarded a 20-year concession to provide waterworks services for the city of Soledad. US$36.8million are expected to be invested during the concession, of which the country's Development Ministry will provide US$1.73million and the municipal government US$9.09million, while Triple A will invest the remaining US$26million.

Costa Rica

• Bidding rules are expected to be published in the second quarter of 2002 for a concession to upgrade and operate sewerage infrastructure in Costa Rican capital San Jose's metropolitan area. The San Jose project is a BOT public works concession with three components: treatment plants; the rehabilitation and expansion of four collectors; and the rehabilitation and expansion of the secondary network.

Dominican Republic

• Santo Domingo's waterworks company CAASD will begin work in January on the US$53.9million Brujuelas-Casui water supply project. Earlier this year, local company Planificaciones Sanitarias, Hidraulicas y Civiles and Montgomery Watson Harza signed a contract with CAASD to supervise the works.

Guyana

• The Housing & Water Ministry is waiting on offers from qualified companies that were shortlisted last year for a water supply and wastewater services management contract. Offers had been expected early January but to date none have been received. Guyana plans to appoint a firm or consortium to manage NewCo, the company that will result from the consolidation of the Guyana Water Company and the Georgetown Sewerage & Water Commissioners.

Honduras

• Tela municipality will several of its public services under concession, including waste collection and potable water and sewerage services. The municipality apparently lacks the resources to meet investment needs.
• Spanish construction firm OHL has started work on a series of flood control projects worth US$53.3million for in Sula Valley.

Mexico

• Mexican lower house members have submitted a bill that will modify article 171 of the country's environment framework law to prevent industry from releasing hazardous waste.
• Representatives have also submitted a bill to mitigate the country's water shortages and irresponsible water use practices. The bill, which has been sent to the finance and public credit committee, will require public and private companies with concessions to extract or use water and supply the water to residential homes to pay for these rights.
• The federal environment authority Semarnat, the country's water authority CNA and municipalities are scheduled to sign an agreement in May which will give municipalities an amnesty on federal government debts for water use and wastewater discharge.
• The national water commission CNA has also announced its intention to turn over river management and cleanup responsibility to individual states. The CNA will continue to administer dams, however.
• The Commission for Environmental Cooperation (CEC) has recommended to the CEC Council that a factual record be developed on allegations that Mexico is failing to effectively enforce its environmental law. The CEC is made up of representatives from Canada, Mexico and the US. It was created under the North American Agreement for Environmental Cooperation (NAAEC) to address regional environmental concerns.

Nicaragua

• National water utility Enacal is auctioning a contract for potable water supply works in six cities. Twenty local and international firms purchased tender documents. The tender is divided into four packages that correspond to Dario, Matiguas, and parts of Muy Muy and Chaguitillo.

Panama

• National environment authority Anam has started bidding procedures for a consultancy contract to help draft regulatory standards.
• National aqueduct and sewerage institute IDAAN awarded local engineering firm Consultores Profesionales de Ingenieria (Copisa) a contract for construction of sewerage infrastructure in the city of Aguadulce in Cocle. Copisa won the contract with a US$6.29million bid.
• Bids are expected to be called in April to undertake feasibility studies for a US$101million irrigation project in provinces Chiriqui, Los Santos and Herrera. These regions are affected by severe droughts.

Paraguay

• The national state reform agency, the SNRE, made called for bids for state water utility Corposana. Several companies have shown interest in the company, including: the UK's Anglian and International Water; Spain's Canal de Isabel II; France's Proactiva Medio Ambiente (Vivendi-FCC) and Ondeo; a consortium made up of Uruguay's state water utility OSE and Spain's Aguas de Valencia; Paraguayan firms Compania Internacional de Aguas, Consorcio EMSA-ECOMIPA, Fluoder and Consorcio EDB; Italy's Acea; and a consortium made up of Corposana workers.

Peru

• Peruvian legislators have submitted a bill to prevent the privatization or concession of the country's waterworks sector. The bill does not rule private sector participation altogether but severely limits its scope. The bill's initiative is linked to potable water sector workers' union Fentap.
• Copri, Peru's private investment promotion agency, has made bidding rules available again for the construction of the Olmos irrigation and hydroelectric project in Lambayeque department. The project had been stopped since March 2000. The project is estimated to take four to five years to build and cost US$300million. The winner will operate the project under the terms of a 40-year concession.

Puerto Rico

• Puerto Rico's government is in the process of selecting a company to administer and operate waterworks company AAA. AAA expects contract signing in March for the 10-year term that could be worth as much as US$5bn. There are four bidding companies: France's Suez, United Water Services and Vivendi Environment, US Filter Operating Services and Puerto Rico's Compania de Aguas. There has been some uncertainty introduced into the process by the legislature, which has asserted a right to review the contract before any award is made.

Venezuela

• The environment sub-committee of the National Legislative Assembly announced it would present a framework water bill to public consultation this quarter. The Los Llanos region that includes states Apure, Barinas, Amazonas and Guarico will review the bill first.
• Water utility Hidrocapital expects to put out to tender by April a US$10.7million construction project that entails building two dikes for Vargas state localities Camuri Grande and Nogueleno.

Uruguay

• State waterworks company OSE has made bidding rules available for an international tender to expand department capital Florida's sewerage network. Offers are due March 21. The tender follows the signing of a US$6.9million agreement in December between the OSE and department capitals Florida, San Jose, Lavalleja, Treinta y Tres, Salto and Paysandu to expand sewerage networks.

 

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Upcoming Water and Wastewater Seminars

• Water Projects in Latin America with Special Focus on Opportunities for Investment.
  San Diego, USA. April 24-26, 2002. Organized by the Institute of the Americas. For more info, please email Isabel Alvarez. [IPWA is a sponsor.]
• Water for the Americas in the XXI Century.
  Mexico City, Mexico. October 7-11, 2002. Organized by Mexico's National Water Commission, World Water Council, Global Water Partnership, Inter-American Water Resources Network, International Network of Basin Organizations, and Water Consulting Council of Mexico. For more info, please visit their website
• Strategic issues of water use and management in Latin America and the Caribbean: An action agenda. In conjunction with the Annual Meeting of the Boards of Governors of the Inter-American Development Bank and the Inter-American Investment Corporation. Fortaleza, Brazil, March 7, 2002. For more info, please email ligiaes@iadb.org.