US$200mn Los Cabos desalination plant remains stuck in limbo

The planned Los Cabos desalination plant in Cabo San Lucas municipality, for which Mexico’s Baja California Sur state awarded a 3.6bn-peso (US$181mn) PPP contract two years ago, remains halted due to bureaucracy.

During President Andrés Manuel López Obrador’s morning press conference on Friday in Baja California Sur, governor Víctor Manuel Castro Cosío (pictured) acknowledged works have not started, even though “there are more than 1bn pesos from the federal government to kick off construction.”

Los Cabos water utility Oomsapas awarded in 2021 two PPP contracts to address scarcity in the vacation hub. 

The 250l/s reverse osmosis plant went to a consortium comprising La Peninsular Compañía Constructora and Acciona Agua, which has a 25-year concession to design, build and operate it. Another contract for the integral improvement of the distribution system went to a consortium comprising FCC Aqualia and Aqualia México for 1.3bn pesos, which now holds a 10-year concession to improve, operate and maintain the system. 

Unlike the plant, the improvement works have begun, however. 

The main problem with the plant could be related to the state’s government transition in 2021, as the previous Carlos Mendoza Davis administration awarded the contract at the end of its term.

According to local media, negotiations have moved forward this year and the latest agreement between municipal and state authorities to advance the project was signed on June 14. The document laid out modifications to the plant’s construction, daily El Sudcaliforniano reported.