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Energy
Slim’s CICSA To Drill 100 Wells For Pemex For US$238 Million
February 1, 2010
Pemex Exploración y Producción (PEP) awarded Servicios Integrales GSM, S.A. de R.L. de C.V., a subsidiary of
Carlos Slim’s Carso Infraestructura y Construccion (CICSA), a contract to drill 100 wells over the next 35 months in
the Terciario Southern Region at a price of Mex$1.028 billion plus US$159.4 million. During the first weeks of
December, CICSA was awarded the project to build a 14.7 kilometer 36-inch gas pipeline for Pemex to connect the
Bateria Samaria Complex in Tabasco to the gas processing complex in Cactus, Chiapas, for Mex$493.4 million.
ALFA Participates In Southern Texas Gas Exploration
February 2, 2010
Alfa S.A.B. de C.V., an industrial company based in Monterrey, holds a minority interest along with Pioneer Natural
Resources Company, in the recently discovered Eagle Ford Shale gas and hydrocarbon deposit. ALFA and Pioneer
have drilled two successful wells in the Eagle Ford Shale play, in Live Oak County, southeast of San Antonio. The
first well drilled at the end of 2009 had a high initial production of a liquid-rich gas (a light crude equivalent), while the
second well, completed in early 2010, had the highest initial production recorded on the play, and also produces dry
gas. In 2006, ALFA, through its wholly owned subsidiary Newpek, LLC, agreed with Pioneer to jointly invest in the
natural gas business in Texas as a way to physically hedge ALFA’s needs for natural gas in the rest of its
subsidiaries. In this venture ALFA owns a 20% interest.
Halliburton To Wait On Pemex Before Moving Equipment
February 3, 2010
Houston-based oil equipment and services provider Halliburton will wait to see how Mexico's state oil company
Pemex plans to proceed with drilling works before it begins pulling out equipment. The company said in November it
expected to see a major reduction in activity from Pemex in 4Q09, which would affect Halliburton's operations in the
Burgos basin, Veracruz basin and southern region. Pemex has also been reevaluating its Chicontepec field, which
has drawn criticism for failing to produce expected volumes despite drilling contracts worth billions of dollars.
Twenty-One Potential Bidders Vie For Oaxaca Wind Project
February 3, 2010
Twenty-one firms attended the final project meeting for the tender launched by Mexico's state power company CFE
for construction and operation of three separate wind generation power plants, Oaxaca II, III and IV, each with
capacity of some 101MW. The companies that attended the meeting were Iberdrola Renovables, Energías
Ambientales de Oaxaca, GDF Suez Energía de México, General Electric International, Acciona Energía Eólica
México, Abengoa México, Siemens Innovaciones, Leokon Korea, Cableados Industriales, Unión Fenosa México,
Notus Energy, Gimsa Structural Manufacturing, Inelap, ICA Fluor Daniel, Impulsora Nacional de Electricidad, Leasin
Operation de México, Prolec GE Internacional, Pailera de San Luis Potosi, Gesa Eólica México, Mitsui, and Enerfin
Sociedad de Energía. The winning bidders would operate the plants in the state of the same name for a period of 20
years, and sell power to CFE under the independent power producer framework. Bids are due February 11, and the
company aims to award the contracts on March 8.
Five Companies Interested In Building 400kV Lines In Sinaloa
February 3, 2010
Five companies purchased bidding rules for the international tender launched by Mexico's state power company CFE
for transmission works in the state of Sinaloa. The tender entails construction of three 400kV transmission lines
stretching a total of 127km, two 400kV/230kV substations, and seven feeders. The companies that purchased the
rules were Prolec GE Internacional, Areva T&D, Techint, Siemens Innovaciones and ABB México. Bids are due on
March 3.
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Mining
Minera Paredones To Invest US$190 Million
February 4, 2010
Minera Paredones Amarillos, S.A. de C.V, owned by Canadian Vista Gold, will invest US$190 million over the next 15
to 18 months, in the exploitation of gold in the buffer zone of the Sierra de La Laguna, and US$40 million annually
over the following decade, the project’s estimated life span, in order to extract 40 tons of the precious metal from this
open-air operation.
Gold Resource Produces Concentrates At El Aguila
February 3, 2010
Denver-based Gold Resource has produced the first concentrates at its open-pit El Aguila gold project in the state of
Oaxaca. In late January, Gold Resource announced the start-up of El Aguila's initial flotation circuit. The company
said it aims to accelerate development of the Arista underground deposit at El Aguila during 2010. Estimates of inplace
mineralized material at Arista are 2.96Mt grading 6.50g/t gold, 506g/t silver, 0.60% copper, 2.24% lead and
6.75% zinc, or 2.19Moz gold equivalent.
ECU Silver Mining Issued Environmental License
February 3, 2010
Toronto-based ECU Silver Mining has been issued a unified environmental license (LAU) by the Mexican
government, the company reported in a release. The LAU replaces all existing environmental permits for operations
at the Velardeña silver-gold mine in the state of Durango, and provides the necessary license for expansion of the
current sulfide operations by adding a 1,500 t/d mill, as well as the continuation of all current operations. A scoping
study that will outline, on a preliminary basis, the economics for the larger milling operations will be delivered by end-
Q1 and is the first phase of the company's future plan to grow to 5,000t/d. Velardeña produced 52,752oz of silver
equivalent from the oxide mill and 15,162oz of silver equivalent at the sulfide mill in December.
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Trade & Investment
Lowe’s Opens First Stores In Mexico With US$100 Million Investment
February 5, 2010
Lowe’s Companies, Inc., the world’s second-largest home improvement retailer, announced today the opening of the
first stores in Monterrey, Mexico, as part of its international growth strategy. Lowe’s Mexico has invested
approximately US$18 million to US$20 million in each store. Approximately 430 persons have been hired to operate
the two stores and the company’s offices in Monterrey. Lowe’s will face strong competition from rival Home Depot,
which has more than 70 stores servicing the Mexican market.
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Banking, Insurance & Finance
Development Bank Loan Growth Slows To 0.3% In 2009
February 2, 2010
Credit granted by Mexico's development banks rose 0.3% in real terms in 2009 to Mex$420 billion (US$32.6 billion) at
the end of the year, according to figures from the central bank. Loans to the private sector increased 15.4% in the
year to Mex$210 billion, down on the 23.9% growth recorded for the 12 months through November. Loans to the
public sector totaled Mex$88.1 billion, decreasing 15.1% from end-2008, while credit to states and municipalities
increased 27.8% to Mex$55.2 billion.
Grupo Financiero Inbursa Plans To Add 60 New Branches In 2010
February 5, 2010
Mexico's Grupo Financiero Inbursa is planning to add 60 new branches during 2010. Forty of the new branches will
be located in Sanborns retail stores. The bank, which billionaire Carlos Slim controls, opened 102 branches in 2009,
reaching a total of 198, which could increase deposits by Mex$20 billion. The bank ended last year with a net loan
portfolio totaling Mex$143 billion, 9% higher than the year before. With this year’s expansion, the bank expects to
expand its loan portfolio by approximately 20%.
Banorte Profits Up In 2009 On Higher Net Income From Pension Arm
February 1, 2010
Grupo Financiero Banorte saw Mex$113 million (US$8.71 million) in net profits from its long-term savings businesses
in 4Q09, increasing 13% year on year, as full-year earnings came in at Mex$380 million, up 8%. The group owns 51%
of the businesses, which include pension fund manager Afore Banorte-Generali, insurer Seguros Banorte-Generali
and annuities business Pensiones Banorte-Generali. The pension business saw Mex$141 million in profit during the
year, up 50% from 2008, due to a significant increase in financial products and containment of sales expenses.
During 2009 the unit acquired fellow pension fund managers Afore Argos, IXE Afore and Afore Ahorra Ahora. The
purchases brought its assets under management to Mex$71.6 billion and clients up by some 700,000 to 3.89 million.
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Business & Industry
Nestlé Will Build World’s Largest Instant Coffee Plant In Toluca
February 3, 2010
Nestlé, one of the largest food companies in the world, will invest Mex$5 billion between 2010 and 2012 for the
construction of the world’s largest soluble coffee plant in the city of Toluca in the State of Mexico. The company also
launched this year the Cocoa Plan Mexico, which provides technology support to Mexican coffee producers. Nestlé
operates 14 factories in Mexico with nearly 6,000 employees and will celebrate its eightieth anniversary of arriving in
Mexico this year.
Mexichem Agrees To Buy Ineos Fluor
February 2, 2010
Mexican chemical and petrochemical firm Mexichem has agreed to buy Ineos Fluor, the fluorochemicals business of
UK-owned chemical company Ineos. The deal includes Ineos' operations in North America, Europe and Asia, and on
completion of the transaction, Mexichem Fluor—the company into which Ineos Fluor will be integrated—is expected
to generate annual sales of over US$500 million. Ineos Fluor supplies fluoride-based products, as well as technology
and services, to a large number of sectors and industries, such as pharmaceuticals, automotive, refrigeration and airconditioning.
The sale is expected to be closed at the end of March, subject to regulatory approval.
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Automotive
Major Bus Order For Volvo In Mexico
February 4, 2010
Volvo Buses has secured an order for 323 coaches in Mexico, most of which will be delivered in 2010. The order is
from the customer IAMSA, which has the largest bus fleet in Mexico, with about 10,000 buses and coaches, of which
approximately 2,400 are Volvo coaches. Volvo and IAMSA have close cooperation and, prior to this order, a number
of work groups were involved in identifying the solutions required by IAMSA for its business. These included the
specifications for the coaches, financial solutions and aftermarket issues. The buses will be manufactured in Volvo
Buses’ plant in Mexico City.
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Housing, Real Estate & Mortgaging
Geo Will Build 4,000 Social Interest Houses In Zumpango
February 5, 2010
Geo Corporation (Geo), the second-largest home building company in Mexico, is set to build nearly 4,000 houses in
Zumpango, in the State of México, in a 100-acre lot. They have already received authorization for this housing
development. The urban complex will be called "Nuevas Villas de la Laguna" and will consist of 3,992 houses. The
new permit adds to the recent permits received by Geo, such as the one received in order to build 7,018 houses in
the Almoloya de Juárez district in the same state.
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Construction & Infrastructure
Calderon Announces "Historic" US$47 Billion Investment In Infrastructure
February 5, 2010
Mexico will invest Mex$630 billion (US$47.8 billion) in infrastructure during 2010, according to President Felipe
Calderón. The amount is the highest in Mexico's modern history, and will go a long way towards increasing the
competitiveness of the country's economy, and the national infrastructure plan (PNI) has increased from 3% to 5% of
the country's GDP over the past few years, Calderón said during an official visit to Aguascalientes.
Cemex Awarded US$216 Million Contract To Build Line 3 Of Metrobús
February 3, 2010
Cement producer Cemex has been awarded a Mex$2.8 billion (US$216 million) contract to build Line 3 of the
capital's Metrobús bus rapid transit system. Cemex will build, modernize, conserve and maintain the infrastructure
along the line for a 10-year period. Under the public service provision (PPS) scheme, Cemex will receive an annual
payment from the Federal District (DF) government for the duration of the contract. The company will lay hydraulic
concrete on 15.9km of exclusive bus lanes, as well as building 29 stations and two terminals in Tenayuca and Etiopía.
Conagua Spending US$60 Million On Tunneling Equipment
February 5, 2010
Mexican national water authority Conagua has purchased three tunnel boring machines (TBMs) for the construction
of the city's Emisor Oriente drainage tunnel (TEO). The machines, which are being provided by U.S. tunneling
equipment specialist Robbins, cost some US$20 million each, and are being paid for by the federal government as
part of the Mex$14 billion (US$1.06 billion) budget earmarked for the project, which is billed as the world's largest
drainage tunnel, and is being built by consortium Comisa, which comprises construction giant ICA and recently
acquired subsidiary Cotrisa, as well as local conglomerate Grupo Carso. The 7.5m-diameter discharge tunnel will run
62km from Mexico City to the neighboring state of Hidalgo and is expected to start operating in September 2012. The
project aims to double the city's discharge capacity to 150 cubic meters per second in order to cope with heavy
precipitation during the rainy season.
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Transportation
Asur To Spend US$26 Million On Huatulco Airport Expansion
February 3, 2010
Mexican airport operator Asur will spend Mex$340 million (US$26.3 million) to expand Huatulco international airport in
the state of Oaxaca. Work has already begun on the first phase of the expansion, which includes extending the
runway in order to receive flights from Europe, thus expanding the port’s market. At a later stage, Asur will expand
Huatulco's terminal building to double the amount of check-in desks and increase the size of waiting areas.
Grupo Mexicana Sees Passengers Up 8% In 2010
February 3, 2010
Grupo Mexicana, the holding company of one of Mexico's leading airlines, said it expects passenger traffic to rise 8%
this year from 2009. Mexico's air industry, reeling from high fuel prices, suffered a major blow last year after a flu
epidemic in April scared off local and international tourists, although it recovered some of that traffic in recent months.
Grupo Mexicana forecasts passenger traffic of 12 million in 2010, compared with 11.1 million last year. The company
competes against Aeromexico, which has forecast 5% passenger traffic growth in 2010 as Mexico bounces from a
steep recession. Mexicana is the leading Mexican airline serving the U.S. market, while Aeromexico is No. 1 in the
domestic market.
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Telecommunications & Technology
Appeal Jeopardizes Mexico's Frequency Auction
February 3, 2010
A federal judge accepted the appeal filed by MVS Net against a government auction which seeks to tender blocks of
frequency in the 1.9 GHz and 1.7 GHz bands. MVS Net’s argument for the appeal is that the government has yet to
decide on the renovation of MVS Comunicaciones' licenses to operate in the 2.5 GHz band that expired five years
ago. MVS Comunicaciones said the uncertainty has kept it from investing heavily to deploy new infrastructure in
Mexico. The tender of added capacity, one of two government initiatives to bolster competition in a telecom market
dominated by tycoon Carlos Slim, is meant to make way for the entrance of a new cell phone operator and expand
existing services of current market players. Telephone companies belonging to tycoon Ricardo Salinas had filed
similar appeals against the frequency auction recently, but they were dismissed this week. Some 40 companies,
including media giant Televisa and Spain's Telefonica, have purchased terms for the auction. It was not immediately
clear if the judge's acceptance of MVS Net's appeal could bring the auction to a full stop.
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Economy
Mexico Central Bank Chief Says No Need To Raise Rates
February 2, 2010
The head of the central bank said on Tuesday that there is no need to raise Mexico’s interest rates, and economists
following Mexico’s economy now see higher growth and more benign inflation in 2010. Economists in late January cut
their inflation forecast to 4.93% while raising their average 2010 growth outlook to 3.3%, a monthly poll by the bank
showed on Tuesday.
Economists See Lower Inflation And Higher Growth In 2010
February 3, 2010
January’s monthly survey of Mexico’s economists resulted in lower inflation forecasts for 2010 for the first time in 12
months, and resulted in a second straight month of raised expectation for economic growth this year. Experts predict
that consumer prices will reach 4.9% in 2010, lower than last month’s forecast of 5%. Regarding economic growth,
the experts surveyed said the Mexican economy will grow at 3.4%, higher than December’s 3.1% estimate, and the
highest forecast since September 2008. Economists expect the exchange rate to close 2010 at 12.97 pesos per
dollar, stronger than the previous month’s estimate of 13.04 pesos per dollar. The January expectation is the fourth
consecutive improvement for the exchange rate. At the same time, analysts estimate that the interest rate of the
Federal Treasury Certificate of 28 days will close 2010 at 5.46%, a fall in relation to the December forecast of 5.52%.
AmCham Warns Of Possible Problems With IETU Tax
February 5, 2010
The American Chamber of Commerce of Mexico (AmCham) warned that there will be problems with direct foreign
investment in Mexico if authorities in the United States determine that the flat-rate business tax (IETU) is not
applicable in its territory, as income tax (ISR) is. AmCham said that the Internal Revenue Service (IRS) in the United
States is analyzing the IETU’s case. Currently, Mexico and the United States have an agreement establishing that
U.S. companies with Mexican offices that pay the ISR can consider it as taxes paid north of the border. When the
IETU was approved in Mexico, the IRS announced that it would study the matter, and in the meantime it would treat
the IETU the same as the ISR.
Finance Ministry On The Verge Of Winning IETU Debate
February 5, 2010
The Supreme Justice Court (SCJN) has almost fully endorsed the Single Rate Business Tax (IETU), which entered
into force on January 1, 2008, against which more than 30,000 appeals have been promoted by taxpayers. Over the
course of three sessions, the country's highest court has ruled against 13 of the 15 arguments used by businesses
requesting the cancellation of the tax. Lawyers arguing against the measure claim that it represents double taxation,
as it disallows for several forms of deductibility, and thus creates an environment that adversely affects foreign
companies if the authorities in their home countries do not recognize the said tax. Some analysts believe the Finance
Ministry will support the IETU tax for two or three more years, or until the U.S. Congress or the Treasury determines if
the tax is not creditable, which would affect companies representing well above 50% of foreign investment in Mexico.
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Border & Migration
"Virtual Fence" At Mexico Border Under Scrutiny
February 4, 2010
An ambitious, $6.7 billion government project to secure nearly the entire Mexican border with a "virtual fence" of
cameras, ground sensors and radar is in jeopardy after a string of technical glitches and delays. Having spent
US$672 million so far with little to show for it, Washington has ordered a reassessment of the idea. The outlook
became gloomier this week when President Obama proposed cutting US$189 million from the project. Ultimately, the
project could be scaled back dramatically, with the government installing virtual fences along a few segments of the
nation's 2,000-mile southern boundary but dropping plans for any further expansion, officials said.
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Justice, Safety & Crime
Gunmen Kill 15 At Party
February 3, 2010
Approximately 24 hit men carried out a shooting attack on a high school party in a modest working-class
neighborhood in the border town of Ciudad Juarez that killed at least 15 people and wounded 11 others early Sunday
in a massacre that could mark the worst loss of innocent life yet in the gang battles that have turned the city across
from El Paso, Texas, into one of the world's deadliest—and deepened a sense that no residents are safe, even inside
their own homes. A suspect under arrest who acted as a lookout during the attack said that the main Juarez-based
drug cartel targeted the party because it had received reports that members of a rival trafficking group were in
attendance. He said they were ordered to kill everyone inside. Authorities said they arrested the suspect Monday
afternoon after army troops interrupted the planned assassination of a drug rival. Killed during that gunfight was one
of the men who allegedly supervised the assault on the party, in which dozens of young people packed a private
home. Parents of the slain teens have denied that their children were involved in criminal activity, and authorities have
confirmed the teenagers had no known criminal ties. The mayor of Ciudad Juarez and other officials have said the
victims had no criminal records and the gunmen may have been acting on mistaken information. More than 2,300
people were killed last year in the city of 1.3 million. Authorities say most were drug gang members, but bystanders
have increasingly gotten caught in the crossfire.
"Drug War Plan Should Be Reviewed"
February 5, 2010
Separately, governors as well as private sector and political leaders have called for a review of the government’s
strategy of combating drug trafficking, given that the high number of executions reported is an indicator that the
strategy is not working. Critics are calling for the development of greater intelligence work, a better use of technology
and an enhanced coordination between different levels of government and among police corporations, indicating that
better economic conditions, employment and access to better health services, addiction treatment included, are
urgently needed in order to curtail the violence. Local businessmen have called for President Calderón to move his
office to the Ciudad Juárez so he can better grasp the situation. President Felipe Calderón said that his new
comprehensive security strategy for Ciudad Juárez will not be imposed from the federal government but instead will
promote citizens’ participation to seek a dialogue in order to develop and carry out a strategy jointly with residents of
Ciudad Juárez.
Mexican Drug Cartels Run Rehab Clinics, Force Recovering Addicts To Their Ranks
February 4, 2010
Mexico's powerful cartels have taken to running drug rehabilitation centers, turning recovering addicts into hit men
and smugglers, giving many the ultimatum of working for them or dying. While the government has gone after the
cartels using the police and military, it has done little to regulate private treatment facilities that have proliferated as
cocaine use doubled nationwide over the last six years. In Ciudad Juarez, a city of 1.3 million with an estimated
100,000 addicts, many of the clinics are unlicensed, run out of dilapidated homes by former addicts—making them
easy targets for traffickers to infiltrate. In the Pacific coast state of Michoacan, the La Familia cartel runs its own
clinics. Patients are taken to retreats, where they pray and receive lessons in morality. But as they progress in their
treatment, the retreats turn into beating and brainwashing sessions for future smugglers.
Officer And 7 Gunmen Die In Kidnap Attempt
February 3, 2010
A kidnapping attempt in northern Mexico led to a highway car chase and gun battle that left seven gunmen and a
federal police officer dead. The federal Public Safety Ministry said two kidnapping victims were freed after the late-
Monday shootout with gunmen believed to belong to the drug-trafficking gang known as the Zetas. Federal police in
the state of Coahuila went to a shopping center in the city of Torreon after receiving a report that two people had been
taken captive. When the officers arrived, the suspects opened fire, authorities said. One gunman was killed and
another seriously wounded in the exchange of fire. Police chased the remaining suspects down a highway, where
another gunfight broke out. Six gunmen and the federal officer died during that exchange. Three officers were
wounded.
Amid Drug War, Mexico Less Deadly Than Decade Ago
February 7, 2010
Decapitated bodies dumped on the streets, drug war shootings and regular attacks on police have obscured a
significant fact: A falling homicide rate means people in Mexico are less likely to die violently now than they were
more than a decade ago. It also means tourists as well as locals may be safer than many believe. Mexico City's
homicide rate today is about on par with Los Angeles and is less than a third of that for Washington, D.C. Mexico's
homicide rate has fallen steadily from a high in 1997 of 17 per 100,000 people to 14 per 100,000 in 2009, a year
marked by an unprecedented spate of drug slayings concentrated in a few states and cities. The national rate hit a
low of 10 per 100,000 people in 2007, according to government figures compiled by the independent Citizens'
Institute for Crime Studies. By comparison, Venezuela, Honduras, El Salvador and Guatemala have homicide rates of
between 40 and 60 per 100,000 people, according to recent government statistics. Colombia was close behind with a
rate of 33 per 100,000 in 2008. Brazil's was 24 per 100,000 in 2006, the last year when national figures were
available. Mexico's violence is often more shocking than elsewhere in Latin America because powerful cartels go to
extremes to intimidate the government and rival smugglers.
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Arts & Culture
Mexico Asks UNESCO To Recognize Cuisine
February 5, 2010
Mexico already has many of its monuments on UNESCO's list of protected sites. Now the government is asking for
international recognition for the country's cuisine. U.N. officials will decide in April or May whether to add Mexico's
food to the organization's list of intangible cultural patrimony. The triad of corn, beans and chiles form the foundation
of Mexico's food, with each region of the country adding its own ingredients and seasonings to the mix. Traditional
Mexican cuisine dates back 3,000 years to the Mayans, and pride in Mexico’s cuisine is long-standing.
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Environment
NADB Inaugurates Sanitary Landfill, Wastewater Treatment Plant In Tamaulipas
February 1, 2010
The North American Development Bank (NADB) has inaugurated environmental infrastructure projects worth US$7
million in Mexico's state of Tamaulipas. The sanitary landfill was built in the municipality of Camargo as part of
NADB's US$3.4 million regional solid waste project, which was certified by the Border Environment Cooperation
Commission (BECC) in December 2008. The wastewater treatment plant was built in the municipality of Miguel
Aleman under NADB's wastewater collection and treatment project, which was approved by BECC in October 2007.
The plant cost US$3.6 million and was financed with a US$1.5 million grant from NADB's Border Environment
Infrastructure Fund (BEIF), which is funded by the U.S. Environmental Protection Agency (EPA). The facility has the
capacity to treat 80 liters per second. A second phase will boost capacity to 120 liters per second.
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Other
Mexico City, State Of Mexico Suffer Severe Flooding
February 5, 2010
President Felipe Calderón toured the Valle de Chalco municipality in the State of Mexico to get a firsthand idea of the
extent of damage there after the Canal de la Compañía underground sewage network flooded when heavy rains
lashed the region last weekend. Calderón listened to demands from citizens affected by the flooding. The Interior
Secretariat issued an emergency decree declaring a natural disaster in Ecatepec, Nezahualcóyotl and Valle de
Chalco Solidaridad. An estimated 2,500 homes were affected in Nezahualcóyotl and some 1,500 in Ecatepec. A
natural disaster was also declared in four boroughs in the Federal District that were badly affected by the rains:
Gustavo A. Madero, Iztacalco, Venustiano Carranza and Iztapalapa. The National Water Commission said problems
arising from flooding from the Los Remedios and La Compañía sewage systems in the State of Mexico will take about
a week to a week and a half to be corrected.
Freak Weather Ravages The Federal District And 19 States
February 6, 2010
Pounding torrential rains and freak winter weather across Mexico have collapsed hillsides, destroyed hundreds of
homes, isolated communities, blocked roads, and sent rivers over their banks, leaving at least 15 people dead in the
center and southern regions of the country, while northern states are affected by snowstorms. Cold front number 25
caused severe damage in the state of Michoacan affecting 25 municipalities due to mudslides and the flooding of the
Lerma and Tuxpan rivers. The local government has requested that the Municipalities of Tuxpan and Angangeo be
declared disaster zones where there have been an estimated 10,000 people displaced and 2,000 homes are flooded.
A mudslide in central Mexico has killed at least 11 people as it crushed several cars on a road near the small town of
Temascaltepec on the route from the capital, Mexico City, to the popular weekend town of Valle de Bravo. Police said
it was likely several more people were still buried in their vehicles. Two children drowned trying to cross the swollen
Chapulin River in the central state of Guanajuato. The rains also slammed Mexico City and the neighboring State of
Mexico, where open sewage canals overflowed and about 7,500 homes were flooded. Rainfall of nearly an inch per
hour caused widespread power outages and swamped traffic in water that reached bus windows.
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