Water concessions seen as best option for MexicoConcessions may be the best solution to increase efficiency in Mexico’s water system, an exper...Water concessions seen as best option for Mexico
Concessions may be the best solution to increase efficiency in Mexico’s water system, an expert tells BNamericas.
“The water service is the most profitable, especially when it becomes a monopoly. It is a safe service that, if you provide it well, is very attractive for any operator,” says public finance consultant Ezequiel González Ruiz.
As an example of how well private operators can work alongside the government, González, who heads EZEGR Consultores and advises public-sector companies, cited private operator Servicios de Agua y Drenaje de Monterrey (SADM), which has a concession to supply water to the capital of Nuevo León state, where it plans to build the 10bn-peso (US$500mn) El Cuchillo aqueduct II project to solve recurring water issues.
The project was backed by President Andrés Manuel López Obrador (AMLO) and governor Samuel García.
“All public-private partnerships would be an efficient way to build infrastructure in the face of a lack of resources from states and municipalities,” González Ruiz adds, recalling that under constitutional law, local governments are in charge of providing water services.