2023-08-23 21:29:48
This past Wednesday, the Board of State Sanitary Works (OSE) issued a majority decision that marked a controversial step in the development of the country’s water infrastructure. The session approved the award of the project for the construction of an outpost private water treatment plant in the strategic area of Arazátilocated in the department of San José.
The winning business group in this tender is “Waters of Montevideo”a coalition made up of the leading firms Berkes SA, SACEEM SA, CIEMSA y FAST Ltda.
The Neptuno project has an estimated cost of about US$250 million, and proposes to take water from the Río de la Plata to make it drinkable and complement the supply in the metropolitan area of Montevideo and Canelones.
How the Neptune Project will work
In general terms, the project covers a series of key components in the area of Arazátilocated approximately 80 kilometers west of Montevideo. These elements are essential to guarantee the supply of drinking water to the metropolitan region and its surroundings. Among the main infrastructures included in this ambitious project are:
Water intake: The construction of a water intake in the Arazatí area is contemplated. This facility plays a crucial role by capturing the necessary water resources for its subsequent treatment and distribution.
Water treatment plant: Near the water intake, the construction of a water treatment plant is planned. Here, the raw water will undergo rigorous purification processes to ensure its quality and suitability for human consumption.
Fresh Water Reserve (Polder): Given the possibility of salinity episodes at the supply source, the creation of a freshwater reserve, known as a polder, is projected. This reserve will act as a strategic cushion to meet demand even in adverse conditions.
Land for Sludge Disposal (Monorell): Waste management is also a relevant aspect. The allocation of a specific piece of land for the final disposal of sludge is contemplated, using the mono-fill technique, thus ensuring an environmentally responsible management of the by-products of the purification process.
Drinking Water Adductor Pipe: To bring drinking water to the Montevideo Metropolitan System, the construction of an adductor pipeline is planned. This infrastructure will allow the efficient distribution of the resource to the urban and suburban areas that require it.
Interconnection with the Recalque de Melilla: An interconnection with the Melilla upsetting system is projected. This connection will strengthen the distribution capacity and support of the water supply in the region.
Interconnection from Melilla to Cuchilla Pereira: Another important interconnection will be established between Melilla and Cuchilla Pereira, expanding the distribution network and guaranteeing a continuous flow of drinking water. The Neptune mos project would cost US$950 million
Despite the questioning, the president Luis Lacalle Pou and its administration they insist that Arazatí will be good for the countryespecially in the midst of the water crisis that afflicts the metropolitan area of Montevideo and Canelones.
The bidding document says that it could cost no less than US$253 million, which could increase depending on certain circumstances. The proposed business model assumes that the private company builds, finances and maintains the plant while OSE will be forced to pay US$52.7 million per year. At the end of the 20-year contract, it will have paid US$950 million.
Ortuño assures that public management is the “most convenient” way to manage this potential plant, since it lowers operating costs for OSE by some US$25 million per year. At the end of 20 years, the Uruguayan State would save approximately US$480 million.
With these numbers, the front member assures, it would be impossible to maintain the rates without being affected by strong increases for consumers. If the invoices for clients remain like this, assuming that the annual investment would be around US$70 million, there would be a deficit of about US$1,700 at the end of the bidding.
“The options to cover the deficit generated by the implementation of both private initiative projects are a rate increase, contributions from the central government or indebtedness, which is the path chosen in the approved budget,” said the chief.
Government insists on the Neptuno project: OSE would be obliged to pay US$950 million in 20 years
The government of Lacalle Pou is determined to privatize water with the Neptuno project.
#Neptuno #Project #OSE #awarded #private #Arazatí #project #cost #users #US950 #million