Ondeo takes over Azurix’s Mexican contracts
- From: Vol 3, Issue 7 (July 2002)
- Category: Companies
- Region: Americas
- Country: Mexico
- Related Companies: Azurix and Ondeo
As a guest you can read up to 3 full articles before a subscription is required.
You can read a further 2 articles for free.
Ondeo has taken over five Azurix contracts in Mexico worth a total of $70 million in annual revenues.
The contracts concerned are a concession in the tourist resort of Cancun, a services contract for part of Mexico City, and three BOTs in León, Torreón and Matamoros. Together, they bring the population served by Ondeo in Mexico to 7.5 million.
The contracts have been acquired for $93 million by Aguas, Servicios e Inversiones de México (ASIM), Ondeo’s 50/50 joint venture with the mining group, Peñoles.
In taking over Azurix’s stake in Desarollos Hidraulicos de Cancun (DHC), ASIM becomes the operator of the concession for Cancun’s water and wastewater services. Signed in 1993, the contract is for a period of 30 years.
The Cancun concession covers the production and supply of drinking water as well as collection andtreatment of wastewater for the towns of Benito Juarez and Isla Mujeres. The hotel industry makes up 60% of the concession’s income – Cancun has an influx of 3.5 million tourists each year, mostly from the US.
In Mexico City, ASIM has acquired Azurix’s stake in Industrias del Agua de la Ciudad de Mexico (IACMEX), which holds a water and wastewater services contract for the central district of the capital. Ondeo and Peñoles already have a services contract for around a quarter of Mexico City. The new contract, which covers customer services and network maintenance, brings an additional 2 million inhabitants increasing the population served by Ondeo in the Mexican capital to nearly 5 million.
Ondeo and Peñoles will also takeover stakes in three BOT contracts to finance, operate and build facilities in three municipalities – an STP in León serving 1.1 million people, a sewage lagoon in Torreón serving 1 million inhabitants, and an STP at an industrial park in Matamoros.
The Mexican contracts were an important step forward and consolidated Ondeo’s position in the North American market, the group said.