Archive for the ‘Water’ Category

Mexico Public Sector Water Bid Concerns for Foreign Companies

Wednesday, February 2nd, 2011

When the International economic crisis hit Mexico in late 2008, Conagua (Mexican Water Commission) established that its funding of public sector water projects would continue forward without delays. And, while one can argue that many projects did continue forward, especially in 2009, projects in 2010 were dramatically affected by budget, political/electoral, and typical Mexican bid bureaucracy. It appears now that many projects delayed in 2010 will likely come back on line in 2011. However, LGA Consulting warns that for foreign companies, it sees only serious concerns and larger problems and deceptions affecting their participation, or ability to participate, in Mexican public sector projects now and in the foreseeable future.

This article will explain the blurring that has taken place between National and International bids in general and especially with new and stricter national content regulations, as well as how ineffective NAFTA has been in protecting US and Canadian companies from this new Mexican protectionism. It will also discuss how and why foreign companies and companies trying to provide non-Mexican made product should be concerned about remaining viable in the Mexican public water sector.
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TOP 5 TARGETED SECTORS FOR INDUSTRIAL DISCHARGE ENFORCEMENT IN MEXICO

Tuesday, December 7th, 2010

In our attempt to provide a better feel for private sector/industrial opportunities in the Mexican water sector, below we will analyze the five industrial sectors that Mexican water officials have established at the polluting sectors that they are targeting for enforcement. In our next edition, we will analyze other sectors that deserve attention in the market, including the construction and agriculture sectors.

I. Principal industries that generate industrial discharges

We have selected the following industries/sectors to analyze based on feedback from different officials at Conagua (the Mexican Federal Water Commission) concerning enforcement targeting because of volume or toxicity of their discharges. In the majority of these cases, these sectors are made of 10-20 large companies that are discharging 75-80% of the contaminants – companies that the authorities are targeting and visiting with some regularity. However, Mexican water officials have established that there are about 500,000 companies that are discharging wastewater, only a few thousand (currently monitoring 1387 companies) directly into federal bodies of water and the great majority into municipal water systems that eventually flow into these federal water bodies.
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Bottled Water in Mexico: Second in the World & Growing

Thursday, December 2nd, 2010

In 2009, Mexican bottled water volumes grew 6% and current sales revenues grew by 8.6%, making the market third highest in the world behind China and the United States. As a result, Mexico produced 26,000 billion liters of bottled water and $140 billion pesos (US$10.7 billion) in revenue. The graph below demonstrates the enormous revenue growth in the sector, with revenue having doubled since 2004 and having increased by 1/3 since 2006.
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2010: Signs of Strong Economic Recovery in Mexico…Despite Security Issues

Thursday, October 28th, 2010

The negative press about security issues that Mexico has been receiving has more than overshadowed the relatively strong economic growth and activity in 2009 and 2010, so that many companies might feel that Mexico, from a business point of view, should just be avoided for now and perhaps revisited in the second half of 2011 or perhaps even 2012.  As a result, we feel that it is important if not vital to provide you with some information about just how vibrant the Mexican economy (4.5% growth in 2010) and import dynamic (US exports to Mexico up 32%) has been so far this year – positive growth and dynamic that is supposed to continue and expand further in 2011. 
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Mexican Industrial Discharge Regulations & Enforcement

Thursday, October 28th, 2010

For years, executives in the environmental sector have recognized the need and potential for products and services opportunities with the 500,000 Mexican companies that are discharging waste into water systems and bodies.  In 1996, the Mexican Secretary of the Environment (SEMARNAT) passed the first two comprehensive wastewater discharge regulations to meet these needs: NOM 001 for wastewater discharges into federal bodies of water, and NOM 002 for wastewater discharges into municipal sewer systems that eventually pass into federal water bodies. 

Conagua and municipal enforcement realities

Enforcement of these two standards is somewhat confusing at best.  There are about 150 Conagua officials, based in each Mexican state, who are in charge of the implementation of NOM 001 with companies and municipal entities that discharge municipal and/or industrial waste into federal bodies.  NOM 002 is regulated exclusively by each municipality without state or federal supervision.  And, Profepa, the Mexican “environmental police”, really do not have any current role in enforcement of these NOMs.  
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MEXICAN WASTEWATER STANDARD TRANSLATIONS

Thursday, October 28th, 2010

LGA Consulting has translated the two wastewater discharge standards in Mexico:  NOM 001 (for discharges into federal bodies of water) and NOM 002 (for discharges into municipal bodies of water).  If you would like a copy of the Spanish and/or English versions of these standards, please contact our offices.

Potable Water Plants & Mid Year Treatment Plant Update

Thursday, October 28th, 2010

In a previous edition of our Quarterly Mexico Water Report, which can be found on the LGA Consulting website, we did an extensive analysis of waste water treatment plant infrastructure and growth plans through the end of 2009.  This article deals with new information from the Conagua National Treatment Plant Inventory (December 2009) for both potable water and wastewater plants as well as the expectations and realities for the first half of 2010 and the trends for the rest of 2010 and 2011 regarding wastewater plants in Mexico. 
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Public Water Treatment Plants in Mexico

Thursday, October 28th, 2010

Like many developing countries, Mexico faces the problem of water shortages and inadequate water treatment technology and infrastructure. Mexico currently treats only 40% of its municipal wastewater. Of even greater concern is the fact that only 10% of the municipal wastewater is treated currently in the Greater Mexico City Area and none of the municipal wastewater in Mexico’s second most important city, Guadalajara, is currently treated.

Of equal concern, in relation to wastewater treatment needs, is the fact that of the 653 aquifers in the country, 104 are considered to be overexploited and 68 are on the verge of overexploitation. In light of these problems with 30% of Mexico’s aquifers and the limited availability of water, especially in the northern part of the country, the Mexican government is making treatment and reuse activities a priority so that it can meet its goal of 60% wastewater treatment by 2012 and the more lofty goal of 100% treatment by 2030.
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Private/Industrial Water Treatment Plants in Mexico

Thursday, October 28th, 2010

As of 2008, there were 2,082 industrial wastewater plants in operation throughout Mexico. Not all plants are designed to carry out the same processes of treating industrial wastewater. Mexico has four types of treatment plants:
• Primary, with the objetive of adjusting pH levels and removing organic and/or inorganic materials that are 0.1 millimeters or larger;
• Secondary, with the objective of removing colloidal and dissolved organic materials;
• Tertiary, with the objective of removing dissolved materials including gases, natural and organic substances, ions, bacterias, and viruses; and
• Other, plants without one of the above designations or without such concrete objectives,
Of these 2,082 plants, 648 or 32% are considered primary while well over half (56%) or 1,185 plants, are considered secondary. Only 66 plants, or 3%, are considered to have tertiary treatment operations while 183 plants, or about 9%, are not characterized by any of these three categories and one would assume are probably more primary than tertiary in nature. Undoubtedly, Mexico lacks the vision and resources to expand its tertiary treatment coverage as a developed country might. While the country still lacks considerable primary and secondary coverage, its somewhat extensive number of secondary plant numbers seem to indicate that Mexico is willing and able to prioritize beyond just basic, traditional, primary treatment goals and technology.
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CONAGUA Budget – Theme of the Quarter

Wednesday, May 19th, 2010

The Mexican National Water Commission (CONAGUA) is the primary federal government entity in charge of water sector infrastructure projects. It has central offices in Mexico City, plus regional offices responsible for 13 regional river basin organizations and at least one office in every state to interface with local water authorities. CONAGUA provides significant funding to the 31 Mexican state and hundreds of municipal water commissions/districts to carry out projects. Small states rely extensively on CONAGUA’s federal funds for projects, while larger states often use primarily local funds. However, most projects rely on CONAGUA funding and assistance.
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