08 April 2024

BBVA Mexico extended a loan for MXN1.19 billion to Mitsui & Co. Infrastructure Solutions to strengthen the water infrastructure of the Guadalajara Metropolitan Area.


The expansion of El Ahogado, will bring total treatment capacity to 3,250 liters per second and will serve to sanitize 75% of the water discharged into the Santiago River, benefiting more than 5.2 million inhabitants


BBVA Mexico entered into a loan transaction with Mitsui & Co. Infrastructure Solutions (MITinfra) amounting to MXN1.19 billion for the expansion of the El Ahogado wastewater treatment plant (WWTP), located in the municipality of Tlajomulco de Zúñiga, Jalisco. The expansion of El Ahogado will bring total treatment capacity to 3,250 liters per second and will serve to sanitize 75% of the water discharged into the Santiago River, benefiting more than 5.2 million inhabitants. The project also includes the use of biosolids to generate electricity.


For Álvaro Vaqueiro Ussel, general manager of Corporate and Investment Banking at BBVA Mexico, "participating in the financing of a water infrastructure project in Mexico is very important for this institution. Moreover, it comes in a context where there is a lot of interest in the procurement, management and responsible use of this vital liquid". Regarding the deal with MITinfra, he added: "We recognize the trajectory and importance of MITinfra in the development of various projects in Mexico and we thank them for playing an important role in this development".


According to Ichikawa Makoto, president and CEO of MITinfra, "the expansion of El Ahogado aligns with MITinfra's commitment to creating real solutions for social problems with a sustainability perspective. By working on water treatment projects, MITinfra shows its sense of shared responsibility for the proper management of water and, therefore, for building a bright future in Mexico." In addition, Makoto thanked BBVA Mexico for its support: "Together, MITinfra and BBVA are working to create a more sustainable society and economic growth for the benefit of Jalisco and its citizens".


The El Ahogado WWTP expansion project includes the design, construction, electromechanical equipment, performance tests, capacity tests, operation, conservation and maintenance of the infrastructure necessary to expand biological treatment with nutrient removal at a design flow of 1,000 liters per second (l/s). The development also includes filtration and ozone disinfection of a flow of 3,250 liters per second (l/s), which corresponds to the 2,250 liters per second (l/s) currently treated at the El Ahogado WWTP and the 1,000 liters per second (l/s) that will be generated by the expansion.


The treated water will be the first in Mexico to be put through tertiary treatment, as the project will comply with NOM-001-SEMARNAT-2021, which is the strictest in this area and allows water to be reused for industrial, agricultural, recreational, and urban public use. The development also contemplates the removal and final disposal of organic waste resulting from wastewater treatment (biosolids), as well as solid waste generated at the landfill, which will be used to generate electricity, making the facilities self-sustaining in 50% of their electricity consumption.


This transaction demonstrates the close relationship that BBVA Mexico has achieved with Japanese companies in Mexico through a specialized service model for them. Today there are approximately 1,300 Japanese companies in Mexico, and investments in Mexico by these firms have increased in recent years as a result of the nearshoring phenomenon, whereby Japan sees Mexico as a great opportunity to supply the North American market.