Mexico City February 16, 2017. IFC, a
member of the World Bank Group, and SUEZ, a worldwide leading company in
sustainable resource management, signed a Memorandum of Understanding (MOU)
to express their commitment to co-invest in a special purpose vehicle aimed
at developing brownfield and greenfield water, wastewater and waste management
projects throughout Mexico.
SUEZ is willing to contribute through its extensive expertise in
projects and concessions which offer high quality water, wastewater and
waste management solutions to local authorities and industries; while IFC
is willing to contribute through its global experience and track record
investing in these sectors in a sustainable manner, leveraging on its IFC
Sustainability Framework, its network of national and international institution
and effective relationships with national and subnational public authorities
in Mexico and Latin America and elsewhere.
IFC and SUEZ joint effort in México will represent a first step to nurture
a long-term relationship to develop similar investment vehicles in different
relevant developing markets in Latin America and elsewhere. The Memorandum
of Understanding was signed by Dimitris Tsitsiragos, VP of IFC, and Jean-Louis
Chaussade, CEO of SUEZ.
According to Tsitsiragos, water quality and availability represent one
of the most urgent sustainability challenges for the Mexican people and
for Mexican businesses: “The whole water and waste value chain requires
very large investments that can only come from a strong and effective collaboration
between the public and the private sectors. In collaboration with SUEZ
and with municipal, state, and federal agencies, our goal is to implement
a number of exemplary projects that will have strong impact and will serve
as demonstration for many more to come.”
Chaussade stated that collaboration and Innovation will be key to face
water management’s challenges in Mexico: “What we signed today is an
opportunity to implement a new business model combining technical expertise
of SUEZ with stability in the asset management with a long-term investor,
The water sector in Mexico poses significant challenges and opportunities.
Although the country has abundant water resources in the south, more than
half of its population lives in areas considered water-stressed. In addition,
insufficient investment in infrastructure and water management issues have
turned Mexico in one of the largest water-stressed countries in the world.
In this context, 105 out of the 731 river basins across Mexico have water
constraints, and 106 out of the 653 existing aquifers have been severely
overexploited. Many of these aquifers represent the main water source for
urban settlements and rural communities, as well as farmland. Due to these
issues, the water availability has diminished from 18,000 m3 per capita
per year in 1950 to 3,900 m3 in 2013, and almost 35 million Mexicans live
in water-scarce areas.
IFC mission is to promote sustainable private sector investment in developing
countries, helping to reduce poverty and improve people’s lives. In the
water and Municipal sectors, IFC has provided over US$2.9 billion for nearly
100 projects since 2005. IFC is also a founding member of the 2030 Water
Resources Group, a platform where public and private sector leaders collaborate
to find solutions related to water use and management in emerging markets.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with 2,000 businesses worldwide, we use our six decades of experience to
create opportunity where it’s needed most. In FY16, our long-term investments
in developing countries rose to nearly $19 billion, leveraging our capital,
expertise and influence to help the private sector end extreme poverty
and boost shared prosperity. For more information, visit www.ifc.org
SUEZ supplies drinking water to 92 million people, delivers waste water
treatment services to 65 million, collects waste produced by almost 34
million, recovers 16 million tons of waste each year and produces 7 TWh
of local and renewable energy. With 82,530 employees, SUEZ, which is present
on all five continents, is a key player in the sustainable management of
resources. SUEZ generated total revenues of €15.1 billion in 2015.
About SUEZ Mexico
SUEZ has been actively present in water management in Mexico for 40 years.
The Group has built more than 300 water and wastewater treatment plants
and offers its expertise in the distribution of drinking water and in technical
and commercial support to local authorities in major cities, such as Saltillo
or Mexico City. Today, 10 million inhabitants benefit from the services
delivered by almost 2,200 employees.