Development of the Mexican Water Sector

Abstract

Pemex Refinacion has bid out to private sector consortia five build-operate transfer (BOT) concessions for wastewater treatment facilities. Through sound project structuring, refinacion has leveraged the financing skills of private developers and achieved reliable, low-cost treatment services. At the same time, private companies have received attractive EPC and O&M contracts and investors have received satisfactory project returns. Municipal projects in Mexico can follow on this success if sponsoring cities and the national government can follow the example of Pemex Refinacion and rationally allocate risks with the private sector.