Challenges in the water sectorin Mexico

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0o

23º 26´

Two third of the Mexico´s surface are located into the arid zone of the world

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• 68% of rainfall occurs within 4 months of the year.

Tropic of Cancer

43

54

Cubic meters/inhabitant/year

High (more than 10.000)

Medium (between 5.000 and 10.000)

Low (less than 5.000)

18.035

3.3704.312

1950 2007 2020

Water Availability in Mexico

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Contrast between development and water availability in Mexico

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I

II

VI

III

VIIIX

XII

VIII XIIIX

VXIIV

Low stress <10% usage

High stress >40% usage

69

23 20

GDP% of total water availability

Population

77 80

31

13,000 m3 per capita

1,700 m3 per capita

Distribution of water and economic activity m3 per annum

North and Central Mexico

South and East Mexico

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Uses of Water in Mexico: 78,900 Mm3

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• 77,0% for agricultural use (60.753 Mm3).• 14,0% for public supply (11.047 Mm3).• 9,0% for self-supplying industry and thermoelectric power

plants (7.100 Mm3).

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Cities and towns have become more vulnerable to Hydro Meteorological events

Major actions on water

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2010 2011 2012 2013 2014 2015 2016 2017 2018

Annual Average 2010-20147,15 Million ₤

Annual Average 2015-20184,54 Million ₤

Exercised direct physical investment in Conagua [2010-2018](Million ₤, 2019)

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Major world class projects have been programmed

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Object Location / State Investment (Million ₤)

Desalination Plant Drinking water Los Cabos / BCS 45,0

Desalination Plant Drinking water La Paz / BCS 34,27

Modernization Project,National Meteorological Service Measurement Countrywide 72,7

National Measurement Network Water quality parameters Countrywide 119,55

El Zapotillo Aqueduct Drinking water Cañadas de Obregón / Jalisco 527,59

El Purgatorio Aqueduct Drinking water El Purgatorio / Jalisco 364,41

Desalination Plant Drinking water Puerto Peñasco /Sonora 5,65

Milpillas Aqueduct Drinking Water Zacatecas / Zacatecas 173,17

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Acueduct

Desalinization Plants

Drinking water supply to large cities, to achieve a sustainable development.

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Strategic projects.- Drinking water

La Paz

Los Cabos

Zapotillo

Purgatorio

Puerto Peñasco

Milpillas

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There is a total of 228 new infrastructure macro projects in Mexico.

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Mexico Projects Hub.- Why Mexico?

Mexico’s government is committed toausterity, honesty and anti-corruptionprinciples.

The federal government has thecommitment to guarantee macroeconomicstability and healthy public finances.

Is a resilient economy that, in spite of anadverse economic environment, hasrecorded economic growth, fostered by thedynamism of its exports and thestrengthening of its domestic consumption.

Maintains controlled inflation rates.

The structure of its debt minimizes impactsof external factors.

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Also, 321 projects in operation are considered into the platform

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Mexico Projects Hub.- How to invest

Considered to be an attractive destination forprivate infrastructure investment. Mexico’sgovernment is committed to transform thecountry into a world class logistics platform bypromoting the development of infrastructure,

Competitive conditions are offered for the privatesector’s participation such as:

a) Full commitment to constant public investment;

b) A well-defined strategy, supported by longterm planning;

c) Diversified long term public and privatefunding, in local and foreign currencies; and,

d) A solid institutional and legal framework.

Closing remarks

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• Given the limited availability of water in some regions of Mexico, it isessential its efficient use in agriculture and urban activities.

• The treatment of waste waters allow the exchange for first usewaters, contributing to the preservation of rivers and aquifers.

• There has been the highest investment in water infrastructure,through integration of resources: business sector, users,government, as well as international assistance.

• Due to the extreme hydro meteorological events, it is necessary toimplement effective policies on land use management, and to haveeffective infrastructure to control flood risks and effects.

• Water is perceived as a public good and free; however, providing ithas a cost, so its management requires public policies with anenvironmental and economically sustainable vision.

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• Mexico is considered to be an attractive destination for privateinfrastructure investment. Today, the government compromisescompetitive conditions for the private sector’s participation.

• Under this favorable environment, it is important that both, investorsand developers, domestic and foreign, are well informed of thespecific characteristics of the Mexican market, and the requirementsthat should be met when investing at any sector.

• Meeting people´s demands requires innovative solutions, focused onthe quality of the service, provided by an infrastructure which, atthe same time, must be economically sustainable.

• Even though the cost of desalination has been reduced in recentyears, it continues to be an expensive supply option; however, useof seawater or brackish water is a viable alternative in coastal areasthat lack constant and sustainable surface water and/or aquiferdepletion.