BECC NEWS
August 1996
Contents:
BECC Meets with Chihuahua Governor Barrio
Additional candidate projects for October 29TH certification pending further staff evaluation
Possible candidate project for January certification
BECC Meets with Chihuahua Governor Barrio
On August 14th, the BECC General Manager Roger Frauenfelder, Deputy General Manager Luis Raúl Domínguez, and the NADBank Managing Director Alfredo Phillips Olmedo met with Chihuahua Governor Francisco Barrio along with key members of the Governor's staff, Chihuahua Water and Wastewater Authority, Juarez Water and Wastewater Authority, National Water Commission, Secretariat of Social Development, and the Mexican Commissioner of the International Boundary and Water Commission, Arturo Herrera to discuss long range plans for water supply and wastewater treatment for the State of Chihuahua. Particular focus was given to the cities of Juarez, Ojinaga and Palomas, all of which have potential water/wastewater projects for BECC certification/NADBank financing.
The provision of wastewater treatment facilities for Ciudad Juarez is the largest and most complicated of the projects discussed. To support the Juarez project, the development of a master plan was proposed to look at least 30 years into the future and address basic issues such as water resources, provision of potable water supply and wastewater treatment.
An early product of the master planning effort would be the validation of the existing design for the two wastewater treatment plants in Juarez. With confirmation that the designs fit well with the long-range plan, BECC would proceed with the certification process for the new plants and NADBank would begin to review the financiability of the project. This project is a high priority because Juarez, with its estimated population of 1.3 million, does not yet have wastewater treatment capability.
The Governor and meeting participants were in full support of the master plan effort as well as the early certification of the Juarez wastewater plants. The next step will be to discuss the master plan with local, state, and federal agencies in the U.S. to make the planning a binational effort. Developing a long range plan for the shared and diminishing water resources in the El Paso/Juarez area is fundamental to the sustainable development of the region.
Border Infrastructure Conference
U.S. Secretary of Commerce Michael Kantor and Mexican Secretary of Commerce and Industrial Development (SECOFI) Herminio Blanco Mendoza kicked off the 2nd Border Infrastructure Conference, with more than 500 people in attendance during the opening ceremony. The two Secretaries, who worked together closely during the NAFTA negotiations, highlighted the progress made by the U.S. and Mexico since the first border conference in 1993. Additional cabinet level officials participating in the conference were U.S. Secretary of Housing and Urban Development Secretary Henry Cisneros and Mexican Secretary of Ecology, Natural Resources, and Fisheries Julia Carabias Lillo. U.S. Ambassador to Mexico James Jones was also a key participant in the conference.
The Conference brought together business leaders, project developers, federal officials, and state and local government officials to develop strategies to create successful border infrastructure projects -- from planning and financing -- and to explore how the private sector can take advantage of new business opportunities. The conference focused on projects in the housing, transportation, energy, and environment sectors.
The environment break-out section focused largely on the projects and programs of the BECC and NADBank. Following presentations from BECC General Manager Roger Frauenfelder and NADBank Managing Director Alfredo Phillips Olmedo the floor was opened to discussion on how to effectively mobilize private investment for the development of infrastructure in the border region. Results of the conference will be ascertained in the coming year as more private industry representatives get involved in border projects.
A special note: the Conference was dedicated to the memory of the late U.S. Commerce Secretary Ronald H. Brown and the late Mexican Secretary of Social Development Luis Donaldo Colosio, who jointly hosted the first border infrastructure conference in 1993.
The following projects are candidates for certification during the October 29th public meeting of the BECC Board of Directors, or future public meetings. For clarity, the projects have been separated into three distinct categories: Candidate Projects for October 29th Certification, Candidates for October 29th Certification Pending Further Evaluation, and Possible Candidates for Certification at the January Public Meeting. Descriptions of the projects are provided below by category. A more detailed summary of each project is available on BECC's Home Page: http://cocef.interjuarez.com, BECCNET, or by contacting the BECC offices directly.
CANDIDATE PROJECTS FOR OCTOBER 29TH CERTIFICATION
The following four projects are candidates for certification during the October 29th public meeting of the BECC Board of Directors.
Ecobosque: San Luis Rio Colorado, Son.
The proposed wastewater treatment project for the City of San Luis Rio Colorado includes the installation of a primary treatment facility consisting of waste stabilization ponds, with capacity to treat 11.9 mgd in two modules, and with the possibility of being expanded in the future to 23.7 mgd by adding two additional modules. It also includes the installation of 27 miles of trunk lines, 14.2 miles of main lines, and 72.4 miles of collector lines.
The project will double the sewer services currently provided to residents, which is less than 40%. The treated effluent will be used for agricultural irrigation, thus recovering part of the Operation and Maintenance (O&M) costs through the sale of the effluent water to farmers.
The project also includes an institutional capacity building component which will improve the ability of the local water utility (OOMAPAS-San Luis Río Colorado) to operate the facilities efficiently.
The total investment for the project is estimated to be $16.2 million, of which $11.7 million will be used in the expansion of the sewer system, $3.9 million for wastewater treatment, and $500,000 for institutional capacity building. Project financing is anticipated from: OOMAPAS-SLRC (20%); CNA (30%); and NADBank (50%). Annual O&M costs are estimated at $1.5 million, which includes a five-year investment plan for equipment replacement. San Luis Río Colorado has a population of 132,800 and is one of the fastest growing cities in Mexico.
Sanitary Landfill Project, Puerto Peñasco, Son.
The proposed sanitary landfill project for Puerto Peñasco will replace an existing open-air dump that experiences frequent fires due to an uncontrolled release of methane gas. Presently, the City collects 50 tons/day of domestic and commercial solid waste, from five collection routes with weekly service.
The site selected for the new landfill is located 0.5 miles to the east of the existing dump, with a surface area of 49 acres, and an estimated useful lifetime of 20 years. It complies with the standards recommended by SEDESOL including: 1) deep groundwater table; 2) adequate distance from ground water; 3) distance away from fracture zones; 4) suitable soil characteristics; 5) sufficient cover material; 6) useful lifetime of the site; 7) distance from water bodies; 8) suitable location with respect to urban centers and access routes; 9) surface drainage; and 10) topography.
A preliminary cost estimate of the total project is $1.7 million. It is anticipated that the project will be financed with funds from SEDESOL (35%); the municipality (15%); and NADBank (50%). The project will require additional subsidies from the municipality during the first two years, due to the lack of sufficient revenues for garbage collection because of low billing and collection efficiency. The project will benefit the 27,200 population of Puerto Peñasco.
Wastewater Treatment Project, Somerton, AZ
The City of Somerton has a population of approximately 6,000 and utilizes a waste stabilization pond system with the capacity to treat up to 400,000 gpd. The system is currently operating at capacity and is experiencing problems meeting the NPDES water quality requirements established by EPA of BOD/SS = 90/30 mg/L.
The City has explored several treatment alternatives that would meet the water quality standards and fall within the financial capabilities of the community. A relatively new system has been selected, based on an anaerobic primary/secondary treatment followed by polishing through a hydroponics system (similar to constructed wetlands) that is able to produce an effluent quality of BOD/SS = 30/30 or less 95% of the time. This system has several advantages, including a minimal production of biological solids, which substantially reduces the cost of handling and disposing of sludge. It also has the option of providing for the recovery of at least part of the O&M costs through the generation of methane gas as an energy source and plants with a commercial. These options will not become cost effective until the community reaches a population of at least 10,000.
The proposed technology was developed in Ithaca, New York, at Cornell University, which has operated a pilot plant, utilizing this technology for over 52 months, at flows of 10,000 gpd.
The total investment for the project is estimated to be $1.5 million. The following financial scheme has been proposed: EPA (40%); ASRF (20%); RECD (40%). Funding from EPA would be a grant; the Arizona State Revolving Fund (ASRF) would provide a low interest loan; and the Rural Economic and Community Development would also provide credit at a low interest rate. The annual O&M costs are estimated at $120,000, which consists of a fixed fee contract with the holder of the patent for the technology.
Water Supply And Sewage Collection Project, Mercedes, TX
The City of Mercedes, with a population of about 14,000, currently has water treatment, water distribution, and wastewater collection facilities that are operating close to design capacity, which restricts the city in its ability to provide service to new residential and commercial users. The project consists of: 1) expansion of the water treatment facility from 3 to 4.5 mgd; 2) expansion of the water supply lines; 3) improvements to the sewer system; 4) construction of an elevated 500,000 gallon storage tank (1,893 m3); and 5) relocation of an existing irrigation line.
The total estimated project cost is $4.3 million. The proposed funding breakdown is: Economically Distressed Areas Program (EDAP) (33%); Rio Grande Empowerment Zone (RGEZ) (25%); and NADBank (42%).
ADDITIONAL CANDIDATE PROJECTS FOR OCTOBER 29TH CERTIFICATION PENDING FURTHER STAFF EVALUATION
The following two projects are possible candidates for certification during the October 29th public meeting of the BECC Board of Directors, pending further evaluation by BECC staff. Presently, the two project applicants are in the process of submitting final details on their project proposals. In the event that the additional information fails to meet the BECC criteria, their candidacy for certification in October will be withdrawn. As additional project information is made available on these projects, it will be included in the project summaries available on BECC's Home Page: http://cocef.interjuarez.com.
Wastewater Treatment Project, Piedras Negras, Coah.
The proposed wastewater treatment project for Piedras Negras consists of a "Build, Operate, Transfer" (BOT) system, for a 20 year period, utilizing an activated sludge process. The Federal Electricity Commission (CFE) plans to purchase the treated effluent from the City. They will utilize their existing intake structure about 12 miles downstream from the City's discharge point. Because the Rio Grande river will be used to transport the effluent to the intake of the electricutility, Mexico's National Water Commission (CNA) will require that the effluent standards to meet BOD/SS = 30/30 mg/L.
The existing treatment system, based on oxidation ponds, is overloaded and operates at inadequate efficiency levels. A first phase is proposed to cover the community's needs through the year 2010, and would consist of two treatment modules of 4 mgd capacity each, with the possibility of expansion within 15 to 20 years with another two treatment modules of the same capacity, to provide a total installed capacity of 16.5 mgd.
The total project cost is $13.3 million. The suggested financial structure is: CNA (35%); EPA (40%); NADBank (25%). Revenues from CFE in addition to financial support provided by the CNA will cover the O&M costs and debt coverage. It is estimated there will be a 20% fee increase for sewer service to residential users and 25% fee increase for commercial and industrial users. The City of Piedras Negras has a population of 116,000.
Ecoparque, Tijuana, B.C.
The proposed project consists of expanding an existing pilot plant with a design capacity of 270,000 gallons/day. For the plant to operate at design capacity, two additional secondary sedimentation units must be constructed.
The City of Tijuana, with a population of approximately 990,000, is in the process of negotiating an agreement with the project sponsor, El Colegio de la Frontera Norte (COLEF), to purchase the treated wastewater. The agreement will establish a price for the treated effluent, which will correspond to 75% of the price at which the City buys the fresh water from the Tijuana's Water Authority (CESPT), which in turn is 75% of what the CESPT sells water to users of lesser volumes.
A signed agreement should expedite the issuance of Tijuana's wastewater authorization to remove the raw sewage from their collector line and CNA's effluent quality permit. (The effluent quality will be adequate for non-human contact irrigation of municipal green areas, such as street and highway medians). Although significant negative impacts are not foreseen for this project, the Environmental Assessment Document is still pending.
The capital investment for the project will be of approximately $100,000 to complete the existing module and obtain a production of 250,000 gpd. Projected sources of funding that have been identified include 50% equity and the other 50% of the investment from the NADBank. The project's preliminary annual O&M costs are estimated at $40,000.
POSSIBLE CANDIDATE PROJECTS FOR JANUARY CERTIFICATION
The following projects are possible candidates for certification during the January public meeting of the Board of Directors. Executive summaries for these projects are available on BECC's Home Page: http://cocef.interjuarez.com. Additional projects may also be considered during that meeting.
Local Public Meetings for Candidate Projects
In compliance with the BECC Criteria for Community Participation, the following public meetings have been scheduled on projects submitted to the BECC for certification consideration:
Ecobosque (Wastewater Treatment Project), San Luis Rio Colorado, Sonora.
Monday, September 23, 1996, 10:30 am, in the Sala de Cabildo del
Ayuntamiento in the Palacio Municipal. Contact: Guillermo Perez Diaz:
(011-52-663) 4-11-72.
Municipal Solid Waste Landfill, Puerto Peñasco, Sonora. Friday 27, 1996, at 9:00 a.m., in the Kiosco del Arte. Contact: Oscar Palacio Soto, Mayor, tel (638) 3 20 60
Wastewater Treatment Plant, Piedras Negras, Coahuila. Monday, September
30, 1996, 12:00 pm, at the Hotel Casablanca. Contact: Javier Davila,
Comision Estatal de Aguas y Saneamiento: (011-52-84) 2-11-74 or 2-14-24.
Municipal Solid Waste Landfill, Agua Prieta, Sonora. Monday, September
30, 1996, at 6:30 pm, in the Sala Audiovisual of the Centro de Bachillerato
Tecnologico Industrial Number 81, located at calle 5 avenidas 34 and 36.
Contact: Donaldo Paco, Director de Servicios Municipales: (011-52-633) 8-01-81.
Wastewater Treatment Project (Phase III), Socorro, Texas. Monday,
September 30, 1996, 6:00 pm, at the office of the Lower Valley Water
District, 10005 Alameda Avenue, Suite P, El Paso, Texas 79927. Contact:
Horacio Juarez, Lower Valley Water District: (915) 858-4440.
Used Oil and Industrial Waste Recycling Project, Servicios Ambientales
Ford, S. de R.L. de C.V. Monday, September 30, 1996, 5:00 pm, in the
Auditorio de la Camara Nacional de la Industria de Transformacion, located
at Henry Dunant and Lara Leos #4525, Cd. Juarez, Chihuahua. Contact:
Servicios Ambientales Ford, S. de R.L. de C.V., (011-52-16) 16-22-37.
Water Supply and Wastewater Collection Project, Mercedes, Texas.
Thursday, October 3, 1996, 6:00 pm, at Mercedes City Hall, located at 400
South Ohio. Contact: Ricardo Garcia, Planning Director, (210) 565-3114.
Notice of Request for Qualifications for the Provision of Project Development Assistance
The Border Environment Cooperation Commission (BECC) is accepting Statements of Qualifications from firms interested in providing project development assistance services for U.S.-Mexico border communities in the areas of water, wastewater, and municipal solid waste. Qualified firms must be able to demonstrate the capacity to operate on either side of the U.S./Mexico border.
The BECC intends to establish a Project Development Assistance Program (PDAP) to assist communities located within the area of 100 kilometers of the border. The BECC will identify consulting firms determined to be most highly qualified to provide project development services that will include financial analysis, institutional strengthening, planning, technical design, and environmental assessment services.
The BECC will be directly involved in managing the Project Development Assistance Program and overseeing the consultants providing the assistance. The PDAP is designed to assist project sponsors in obtaining BECC certification and NADBank financing.
The BECC is in the process of requesting funds from the federal governments of the United States and Mexico to support the PDAP. Selection of firm(s) from this initial solicitation is scheduled for November 1996. For selected firms, follow-on contracts for specific projects will depend upon the availability of funding from the U.S. and/or Mexico federal governments.
Requests for Qualifications will be mailed upon request, or can be obtained in the BECC offices located at:
Blvd. Tomás Fernández No. 7940
Torres Campestre, Sixth Floor
Cd. Juárez, Chih. C.P. 32470
Tel: (011-52-16) 29-23-95; Fax: (011-52-16) 29-23-97
E-Mail: becc@cocef.interjuarez.com.
A pre-qualification meeting will be held at 3:00 p.m. Juarez time (2:00 p.m. El Paso time) on September 30, 1996, at the BECC offices. Statement of Qualifications will be due at 5:00 p.m. on October 18, 1996.
All technical questions and requests for information may be directed to Dr. Jorge Aguirre, Ph.D., P.E., Technical Director, tel: (011-52-16) 29-23-95, or e-mail: jaguirre@cocef.interjuarez.com. Procedural questions should be directed to Hector Gonzalez, Program Manager for Strategic Planning, at tel: (011-52-16) 29-23-95, or e-mail: hgonzalez@cocef.interjuarez.com.
The BECC has received Step I forms for the following projects during the month of August. Please note that the listings do not represent any type of BECC staff recommendation concerning the potential for project certification.
Note: This project has been modified from its original proposal submitted to the BECC in September 1995, for a binational project for Palomas, Chihuahua and Columbus, New Mexico.
Note: The BECC will only consider the portion of the project related to environmental infrastructure)