Servicios de Agua y Drenaje de Monterrey, I.P.D. Proyecto Monterrey VI 1

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1 Emilio Rangel Woodyard Director General Water and Sewerage Service of Monterrey Tel: y/o MONTERREY VI PROJECT Servicios de Agua y Drenaje de Monterrey, I.P.D. Proyecto Monterrey VI 1

2 Background. Providing basic services to the population of Nuevo Leon has been a challenge that the Water and Sewerage Services of Monterrey has successfully taken over a hundred years. Over the decades, various sources have been added to meet the requirements of a metropolis growing to unprecedented levels, particularly in the last 10 years, in order to meeting the needs of both the population and services, industrial and commercial sectors. Monterrey, the state capital, is particularly located in the watershed of San Juan River, in a semi-desert region of transition between subtropical and desert, with cyclic periods of recurrent prolonged droughts and in contrast, sporadic heavy rains. Water supply to the Metropolitan Area has always been a challenge, given the ongoing economic and population growth that characterises and represents a cornerstone in the economic development and job creation in Mexico. With the support from the private banking sector, the Federal government and State resources, priority projects were carried out in the past to build dams, water treatment plants, aqueducts, storage tanks, distribution networks, pumping stations, collectors and sub-collectors sanitary sewerage, wastewater treatment plants, and other primary drinking water, sewerage and sanitation infrastructure for the benefit of the population of Nuevo Leon. Monterrey metropolitan area comprises 16 municipalities with a population of 4.2 million. We have a supply capacity of litres per second, which comes from surface sources (El Cuchillo, Cerro Prieto and La Boca dams) supplying the metropolitan area on a 60% average of drinking water. The remaining 40% comes from a series of shafts and galleries located in different systems, such as the Mina and Huasteca. From 2004 to 2006 growth rates of 5.4% were registered and from 2007 to 2010 the rate reached 8%. This is why a dynamic infrastructure has been created to supply water for the entire population of the city and metropolitan area that has a steadily growth under a strategic plan on a long-term vision. Strategic Project. In the search for new sources, the State Government convened an interagency working group, comprised of federal and state agencies, universities and research institutes that have thoroughly discussed various supply options, since according to current water supply of 11,500 litres per second, and projected growth of the city, which is an additional 250 litres per second per year, the Committee identified the need to incorporate a new source of supply by The State Governor, Rodrigo Medina de la Cruz, from the earliest days of his administration, began the necessary arrangements with the Federal Government through the National Water Commission, to find a reliable source for the orderly and sustainable growth of Nuevo Leon. Servicios de Agua y Drenaje de Monterrey, I.P.D. Proyecto Monterrey VI 2

3 Alternativas Más Factibles 1. Acueducto Presa Falcón, 5.0 m³/ seg (Río Bravo) 2. Intercambio agua tratada-río Pilón 2.0 m³/ seg 3. Acueducto Cuchillo II, 5.0 m³/ seg 4. Acueducto Río Tampaón 5 15 m³/ seg 5. Desalación: Agua de Mar Actions. The surface water availability published by the National Water Commission, show deficit in the Rio Grande basin, low availability in the San Fernando and Soto La Marina River, and abundant availability in the Panuco River basin of 442 cubic meters per second. The Panuco River Basin is the one with better availability for water supply, and greater technical and legal feasibility. The alternatives for Falcon, Cuchillo II and Exchange Pilon River have 2 common features: It is supplied from the Rio Grande Basin and the last two from San Juan River, therefore given the drought periods, all will be affected in their supply capacity. Additionally, they present problems on availability, and social and political viability. The desalination of seawater is estimated to cost $ per cubic metre. The alternative Tampaon Cerro Prieto is in a different basin, thus it is the most economically feasible with sufficient availability. For the aforementioned and thanks to the excellent coordination on water issues between the Federal and State Governments, the National Water Commission decided to assign to the State of Nuevo Leon a volume of 15 cubic metres per second, i.e. 15 thousand litres per second from the Rio Panuco Basin, which means having a higher water volume. OFFICIAL GAZZETEE Servicios de Agua y Drenaje de Monterrey, I.P.D. Proyecto Monterrey VI 3

4 *Diario Oficial de la Federación. Enero 21, Acuerdo por el que se da a conocer el resultado de los Estudios de Disponibilidad Media Anual de las Aguas Superficiales en las Cuencas Hidrológicas. *Título de Asignación In other words, this is equivalent to 130% of the total current supply, thus with this assignment the growth and economic and social development possibilities are guaranteed not only for Nuevo Leon, but for the entire north-eastern region of Mexico. In order to access these volumes of national waters, the State Government is negotiating through a private public partnership, with the support from BANOBRAS Bank through the National Infrastructure Fund (FONADIN) to carry out "Monterrey VI" project, consisting of a 84 inch diameter pipeline, unprecedented in Latin America, with kilometres long from the Tampaon River in the State of San Luis Potosi (Panuco Servicios de Agua y Drenaje de Monterrey, I.P.D. Proyecto Monterrey VI 4

5 River Basin) to the "Cerro Prieto" dam in Linares, Nuevo León to obtain bulk water supply service for the metropolitan area of Monterrey and ensure the supply needs for the coming years. Characteristics. In the first stage, an aqueduct of 84 inches in diameter will be constructed, to a maximum flow of 6 cubic metres per second of capacity, with a length of kilometres from the intake, 6 pumping stations and additional works, up to the Cerro Prieto Dam, hence the water will be conducted through the existing pipeline, which has a capacity of 6 cubic metres per second, with an availability of 3.5 cubic meters per second to reach the San Roque water treatment, distributing water to the Metropolitan Area of Monterrey through the two existing transfer rings. *Sistema de Distribución AMM ( Anillos de Transferencia ) For the construction of the aqueduct, it is intended to make a trench three meters wide at the sides of the rights-of-way, with an average depth of 3.50 metres. It is estimated that the total length of km for the proposed section for the pipeline, approximately 244, correspond to federal rights-of-way, i.e., 68%. It is planned to place the pipeline in parallel with these federal rights-of-way in order to avoid unnecessary speculation in land-use or land tenure conflicts, favouring the legitimate social and political interest of the communities where this infrastructure will run along. Also, it would prevent affecting the ecological balance of the areas near the aqueduct, as it would take advantage of existing federal rights roads. It also intends to leverage existing rights-of-way state and local roads and other entities. Servicios de Agua y Drenaje de Monterrey, I.P.D. Proyecto Monterrey VI 5

6 *Trazo Acueducto Tampaón Cerro Prieto As of September 2011, the summary of the progress of studies is as follows: Socioeconomic study 90%, Environmental Feasibility Study 40% Financial-Legal Study 85% and Basic Engineering studies 90%. The many meetings and negotiations personally led by the Governor with the heads of the Ministry of Finance, SCT, CONAGUA, BANOBRAS, among others, have led for the Governor s Executive Office and the Water and Sewerage Services of Monterrey to held meetings to follow up the project studies at the Investments Unit of the Ministry of Finance, in order to submit registration in that unit. Investment. This project shall be constituted as a Public Private Partnership (PPP). It is considered of great strategic importance and will cost approximately $ billion (one billion dollars). All relevant studies are currently in process, with the allocation of the required financial resources of $ 36 million pesos VAT excluded, of which $ 18 million pesos are provided by BANOBRAS Infrastructure National Fund. In line to the projects and plans established for the development of this project, it is estimated works to commence in February Servicios de Agua y Drenaje de Monterrey, I.P.D. Proyecto Monterrey VI 6

7 Impact on Society. Thanks to the continued work to raise awareness in water conservation, the water culture of Nuevo Leon outstands. In the last 10 years the population has grown by 47%, while water supply only 13%, average household consumption has been reduced from 20 m3 to 16 m3 by the end of The Government of Nuevo Leon, through the Water and Sewerage Services of Monterrey, is committed to maintain the capacity to provide uninterrupted 24-hours service, since this vital resource should be no more a challenge but an opportunity and a right for all. For the first time in the country, a project of this nature is going to be carried out, being a milestone in the history of water by providing it from another basin. Servicios de Agua y Drenaje de Monterrey, I.P.D. Proyecto Monterrey VI 7