Sector briefing Water Opportunities in Mexico Why Mexico? Mexico is the second largest economy in Latin America. The Federal Government has set the adequate management and conservation of water as a national priority. Under President Calderón?s National Infrastructure Programme, and its counterpart, the National Water Programme 2007-2012, an estimated $18 billion USD will be devoted to projects that substantially improve the quality, scope, and coverage of water infrastructure in Mexico. One of the key projects in this strategy is the ??the Atotonilco Water Atotonilco Water Treatment Plant in the central Treatment Plant in the state of Hidalgo, which?upon completion?will be the la central state of Hidalgo?will rgest water treatment plant in Latin America. be the largest water treatment plant in Latin Find general information on Mexican market America. ? conditions on UKTI?s website. The Doing Business Guide for Mexico gives an overview of Mexico?s economy, business culture, potential opportunities and an introduction to other relevant issues. UK Trade & Investment Sector briefing: Water opportunities in Mexico Opportunities Wastewater Among the main areas offering opportunities Despite efforts in the past decade, only 36.1% for UK companies are the following: of wastewater is treated in Mexico. In the Mexico City Metropolitan Area this figure is Drinking Water and Sewerage Services even smaller: 6%. To address this, a number of new, larger, and bigger-capacity wastewater There is a sharp constrast in water availability treatment plants are being constructed, between Mexico?s north-west and south-east including the Atotonilco Wastewater Treatment regions. Whilst the former has only 31% of Plant, which is scheduled to be finished in 2012 the country?s water resources (but 77% of its and will have an investment of 635 million population), the latter has 69% of the nation?s GBP. renewable water (but only 23% of the population). Stormwater A cornerstone of the National Water Mexico has noticeable variations of rainfall Programme 2007-2012 is to guarantee according to the area (heavy in the southeast drinking water access to 95% of the population and meagre in the northwest). In some areas , (up from 89.2% registered in 2005) and give storms are of high intensity and short length, sewerage system access to 90% of the which makes urban developments (like Mexico Mexican people (vs. 85.6% in 2005). It also City) vulnerable to flooding, whilst other areas aims to promote technological modernisation, may suffer water shortages. To better handle the use of treated water, and maintain existing this situation, efficient rain collection and flood infrastructure. This calls for qualified process control infrastructure suppliers are needed. contractors for water supply, as well as sewerage system specialists. Billing/collection Recent meteorological circumstances, in early Some estimates indicate that over 50% of 2010, have shown the need for investment in water supplied is not paid for, and that tariffs the Water sector in Mexico, particularly in cover only between 20 and 40% of the cost of Mexico City Valley, where major flooding providing water and sanitation services. showed the weaknesses of the system. Therefore, it might be necessary to introduce new billing and debt collection systems to make this process more efficient. Maintenance/Rehabilitation of Existing systems Upcoming projects for 2010 Municipalities have the responsibility to provide Among the main projects that are being water and sanitation services. The National promoted by the National Water Commission Water Commission?a federal agency?has are the following: developed a scheme called Integrated ? Zapotillo Aquaduct (states of Jalisco and Management Improvements to maintain better Guanajuato).-Estimated cost: $407 million existing water assets. Its scope includes the USD; 51% private finance. rehabilitation of tube wells and pumps, the ? Falcón-Matamoros Aquaduct.-Estimated automation of equipment and telemetry cost: $498 million USD; 69% Private Sector systems, the installation of domestic meters, Participation. and the repair of water distribution networks. ? Municipal Wastewater Treatment Plant (Hermosillo).-Estimated cost; $41 million Leaks USD; 60% Private Sector Participation ? Desalination Plant in Ensenada (Baja It is estimated that between 30% and 50% of California state).-Estimated Cost: $28 water produced in Mexico is lost through million USD; 60% Private Sector leakage. Thus, a number of municipalities Participation. have shown interest in finding efficient leak detection systems and implementing pipe If you have any questions on the opportunities rehabilitation solutions that do not require above, contact the UKTI Water Sector contacts opening up the road?as they create traffic named in this report. Business opportunities problems particularly in large urban areas. UK Trade & Investment Sector briefing: Water opportunities in Mexico aimed specifically at UK companies are added daily to UKTI?s website. These leads are sourced by our staff overseas in British Embassies, High Commissions and Consulates, across all sectors and in over 100 markets. You can be alerted to business opportunities on a regular basis by registering on the UKTI website. Find out more on UKTI?s business opportunities service on the UKTI website. UK Trade & Investment Sector briefing: Water opportunities in Mexico Major events and activities UKTI contacts Launch Water Scoping Mission to Mexico Diana Leon Report (London) Trade & Investment Officer Contact: Garry Poole British Embassy Mexico City Email: garry.poole@ukti.gsi.gov.uk Tel: +52 (55) 1670 3302 Time: May/June 2010 Email: Diana.Leon@fco.gov.uk www.ukti.gov.uk The Green Expo Contact: Kara Swagart Lourdes Huelgas Email: swagart@ejkrause.com Trade and Investment Research Officer th Time: September 28-30 2010 British Embassy Mexico City Tel: +52 (55) 1670 3280 XXIV Annual Convention of ANEAS 2010 Email: Lourdes.Huelgas@fco.gov.uk (Mexican Association of Water and www.ukti.gov.uk Sanitation Companies) Contact: Nuri Abigail Sanchez Email: nuri.sanchez@aneas.com.mx Time: TBC Find full details of all events in Mexico and the water sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Water opportunities in Mexico Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Mexican market are advised to you to meet contacts and promote your undertake as much market research and company in the Mexican market planning as possible in the UK. UKTI?s team in Mexico, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to expand service which assists British-based companies their business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Mexican market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Water opportunities in Mexico