Montevideo’s main water source set to run dry in 2 weeks

The Paso Severino reservoir, which is the main water source for Montevideo, has only enough water for 15 days of consumption and the Uruguayan capital’s metropolitan area could face a scenario in which residents would be supplied with non-drinkable water, President Luis Lacalle Pou admitted.

Works have begun on a US$20mn project to build a new dam on the San José River that would serve as an alternative source, but it will not be finished before Paso Severino runs dry, daily El Observador reported, quoting participants in a meeting between the president and a delegation of opposition party Frente Amplio who spoke anonymously. 

Between Paso Severino’s expected depletion and the opening of the new reservoir, state-owned water utility OSE would have to use raw water directly from the River Plate, which would not be potable.

CHILE

Chile’s public works ministry (MOP) rejected a compensation claim from concessionaire Túnel El Melón II, which is asking for 53,512 UFs (index-linked units, equivalent to US$2.4mn) to cover higher construction costs. 

“The law establishes that all risks that can arise in the construction stage will be held by the concessionaire, and that the consequences of the contracts celebrated between the concessionaire and its construction firms, which are ruled by private law, are not the treasury’s responsibility,” the ministry said in a statement to a concessions panel that is considering the dispute.

The concessionaire, comprising Belfi, Conpax and Aura, was awarded a US$110mn contract in 2016 to widen and operate the 2.5km El Melón tunnel in Valparaíso region. Its compensation request, submitted in April, argues that it faced higher costs of materials and labor between 2021 and October 2022, when the expansion works were wrapped up. 

PARAGUAY 

The drafting of a navigability plan for the Paraguay River will be postponed until after the new government, led by Santiago Peña, takes office on August 15. 

The delay was requested by Peña’s team, senate head Óscar Salomón was quoted as saying by daily Última Hora.

It is estimated that the plan will demand US$20mn and is part of an agreement signed by the Paraguayan and US governments in March.