WATER AND WASTE: The week in 10 stories

ARGENTINA

The federal government has been ordered by the International Centre for Settlement of Investment Disputes (ICSID) to pay 350mn euros (US$384mn) to companies Aguas de Barcelona (Agbar), Suez Environnement and Vivendi over the 2006 cancelation of a water and wastewater concession contract in Buenos Aires, which had been awarded back in 1993.

BRAZIL

The public works secretary of Brazil's Mato Grosso state told BNamericas that local water utility Sanesul is about to ink a 30-year concession contract with the city of Dourados, provided that the city develops a municipal sanitation plan that will make it eligible to qualify for federal funding. A public hearing to discuss planning is scheduled for Thursday, May 11.

Meanwhile, the national government has 11 tenders for waterworks concessions lined up to be launched by the second quarter of next year. The concessions are the first of 18 planned under the federal government's PPI investment program, which aims to reach universal basic water and sanitation coverage through PPPs, concessions or sub-concessions.

Waterworks company General Water received a 70mn-real (US$22mn) capital injection from LGT Impact, the investment arm of Liechtenstein-based private equity group LGT. The move will allow the São Paulo-based company to concentrate on water reuse projects and basic waterworks concessions in smaller cities, as well as on expanding into states other than São Paulo.

An official from Espírito Santo state's water utility Cesan told BNamericas that the utility has received expressions of interest from 17 companies interested in preparing studies to build a sewerage system in state capital Vitória.

COLOMBIA

A survey commissioned by the country's planning department DNP shows that nearly four fifths of Colombian companies believe that the effects of climate change will increase associated costs for their businesses, and two thirds of them consider that the phenomenon has already affected them.

MEXICO

Local authorities of Baja California state announced that they will provide 152mn pesos (US$8mn) in water subsidies this year, mainly benefitting lower income residents of the municipalities of Tijuana and Playas de Rosarito, according to local press reports. Schools, non-profit organizations and large water consumers, together representing 1,386 individual water users' accounts, will also benefit from the measure.

NICARAGUA

Managua authorities are planning to implement works to make the Nicaraguan capital less vulnerable to floods. The initiatives include the construction of drainage tunnels, micro-dams and lining of existing watercourses, as well as building new ones. As implementing the works exceeds the local government's budget, authorities are considering applying for funding from multilaterals.

PANAMA

National sustainable development council Conades decided to terminate the US$4mn contract to design and build the sewerage system in La Pintada, a city in Coclé province. Court documents from Spain's Lezo corruption probe had recently unveiled the payment of a bribe in the award of the contract. The termination is reportedly unrelated to the scandal.

REGIONAL

Madrid's regional water utility Canal de Isabel II, which is currently in the spotlight of Spain's Lezo corruption probe, will sell all of its Latin American subsidiaries. The move will affect Colombia-based Inassa and Brazil's Emissao Engenharia e Construçoes, as well as other companies in the Dominican Republic, Ecuador, Mexico, Panama and Venezuela. The sales are expected to take place gradually and take months to complete.