Work on US$5bn Los Cabos water projects to start in July

Works for two major water projects in Mexico’s Baja California Sur state are set to kick off in July, as part of efforts to tackle water problems in the resort city of Los Cabos. 

The projects involve the 3.6bn-peso (US$181mn) Los Cabos desalination plant, for which works start on July 16, and the 1.3bn-peso integral improvement of Cabo San Lucas city’s water distribution system, for which works will start on July 20, according to tender records.

The public-private partnership contracts for these projects were awarded by Los Cabos city water operator Oomsapas in early May, but the winning consortiums will sign them in coming days. Bids were presented at the end of April. 

A consortium comprising La Peninsular Compañía Constructora and Acciona Agua was awarded the 25-year concession to design, build, operate and maintain the desalination plant, which will require two years of construction and have a reverse osmosis treatment train and a capacity of 250l/s.

The consortium’s offer requires a monthly payment from the federal and state government of 12mn pesos, which could translate into 3.6bn pesos during the concession period. But the consortium will also be required to invest 135mn euros (US$165mn).

And a consortium comprising FCC Aqualia and Aqualia México won the 10-year concession to improve, operate and maintain the water distribution system in the city. The consortium, which also bid for the plant contract, offered accepting a government payment of 136 pesos per user. 

The consortium is required to invest about US$50mn in the improvements. 

The state’s congress approved a loan from development bank Banobras to finance both projects.