Sumitomo Corporation (Head office: Chuo-ku, Tokyo; President and CEO: Susumu Kato; hereinafter, "SC") launched a contract for a wastewater treatment services expansion project (total project cost: approx. six billion yen) from a public water service agency in Juarez City, Chihuahua State, Mexico. The contract, concluded through a local project company jointly invested in by Sumitomo Corporation de Mexico and Degrémont S.A. (France), has now officially come into effect.

 

In this expansion project under a BOT(*1) contract, a primary treatment facility that purifies wastewater to a level enabling it to be used as agricultural water, and a secondary treatment facility for a further purification process, in view of environmentally friendly consideration, shall be constructed. The new facilities are expected to be completed in two years, providing a total treatment capacity of 390,000 m3/day. The local project company will provide wastewater treatment services for 15 years after completion of the expansion work. In addition, we will establish a joint operation and maintenance (O&M) company with Degrémont S.A., which will undertake the operation and maintenance of the wastewater treatment plants.

 

SC started to participate in wastewater treatment projects in Mexico in 2004 and is currently running projects in three cities (San Luis Potosi, Culiacan and Juarez). In Juarez, a city located in the northern part of Mexico, there was an urgent need to expand the wastewater treatment facility due to a rapid increase in the population. Backed by its experience and technical skills in wastewater treatment, the local project company held many negotiations with the city's water service agency and managed to reach an agreement and officially conclude a contract for an expansion project for the existing plants aiming at enhancing their treatment capacity.

 

The Sumitomo Corporation Group established its Environmental Policy in 1999 based on its Management Principles and Activity Guidelines. Our basic policy is to strive to achieve sustainable development aimed at symbiosis between social and economic progress and environmental preservation through sound business activities. We aim to utilize our integrated corporate strength to promote businesses and projects that contribute to environmental preservation and to reducing the impact of society on the natural environment. As part of these efforts, we have been active in promoting waterworks businesses, and will continue to operate water treatment businesses that contribute to preserving and improving living environments around the world.

 

 

*1 BOT : A scheme in which a private company raises funds and builds, operates, maintains and manages facilities for a certain contracted period and then transfers ownership to the public agency.

 

Details of the expansion project are as follows:

 Facility outline after the expansion

                                           Primary treatment: 4,500 l/s (approx. 390,000 m3/day)

                                           Secondary treatment: 3,600 l/s (approx. 310,000 m3/day)

Location                               Juarez City, Chihuahua State (Refer to the attached map)

Additional equity investment   Approx. 10,000,000 dollars

Total expansion project cost   Approx. 60,000,000 dollars

Share participation                 50% (including the share of Sumitomo Corporation de Mexico)

Project description                 Construction, maintenance, management and operation of

                                            wastewater treatment facilities (2 years for construction plus

                                            15 years for operation)

Customer                              Junta Municipal de Agua y Saneamiento de Juarez

                                           (public water service agency in Juarez City)

Operating body　                   Concesionaria de Aguas Residuales de Juarez, S.A. de C.V.

Partner　                               Degrémont, S.A.

 

 

 

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• Infrastructure Business Unit