Ameron to Bid for Pipeline Project in Mexico

US-based Ameron International, in collaboration with French firm Degremont and Mexican construction firms Makro and Prodemex, is planning to bid for the El Zapotillo-Leon pipeline construction contract.

The $600m project in Mexico will involve building a 140km pipeline to transfer 5.6m&#179 of water from Jalisco State’s Zapotillo reservoir to Leon city in Guanajuato state.

The Ameron consortium is in talks with local banks to raise 26% of the financing and plans to put up the rest as risk capital.

Mexico’s water utility Conagua will provide $300m financing for the project.

Ameron International vice president of marketing David Tantalean told BNamericas that local users will pay the company a proportion of their water service fees over the next 25 years to recoup the company’s investment .