Baja California Sur approves US$240mn water projects

The congress of Mexico’s Baja California Sur (BCS) state approved financing and construction of two water projects for 5.2bn pesos (US$237mn) that were on the brink of cancellation.

Development bank Banobras approved a loan in 2016 and the deadline for congressional approval expired on Wednesday. 

At the last minute, legislators greenlighted a public-private partnership contract for the 3.9bn-peso desalination plant in Los Cabos municipality and the 1.3bn-peso improvement of the water distribution system in Cabo San Lucas city, congress said in a statement on Thursday. 

The plant was estimated to cost US$50mn, but authorities updated the amount to around US$178mn, without providing a reason for the increase. Also, the original proposal did not include the water distribution improvement. 

According to congress, legislators and representatives from Banobras and water authority Conagua met three times recently to discuss the projects. 

The bank will provide 1.8bn pesos for both and the state government will pay the rest. The payment period for the desalination plant is 25 years and 10 years for the distribution system improvements, the statement said.

Yet, Banobras said the contract is a PPP, so it would also require contributions from a private company. According to the bank’s website, the 25-year contract involves the plant’s design, construction, operation and maintenance.  

A tender is expected soon as the government planned to receive bids in 3Q20. 

The desalination plant will have a capacity of 250l/s and be the second in the drought-stricken Baja California peninsula. It will benefit 464,000 inhabitants. 

LAST MINUTE APPROVAL

The project was close to being canceled after five of the 21 legislators required to meet the quorums had been expelled by the majority of the ruling Morena and PT parties on August 22. 

After interventions from the supreme court, a district judge and governor Carlos Mendoza Davis, the remaining 16 legislators approved a resolution to reincorporate the expelled ones on Tuesday, just in time to approve the financing for the contract. 

“Today is an important day for Baja California Sur, for Los Cabos and for the [residents of this state]. It is a day of justice and it is also a day of reflection. At this time I am signing the publication of the decree ... that will allow us to build the desired desalination plant that will bring drinking water to thousands of homes and dozens of neighborhoods in Cabo San Lucas,” the governor said in a video on Wednesday. 

The project's main promoter is Los Cabos’ water operator (OOMSAPAS).

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