Project Termo - Mexico City Waste-to-Energy PPP (IIC-12105-01)

Countries
  • Mexico
Geographic location where the impacts of the investment may be experienced.
Specific Location
Municipalities of Texcoco, Nezahualcóyotl and Chimalhuacán in the State of Mexico.
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • IDB Invest (IDBI)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jul 31, 2018
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Termo WTE S.A. de C. V.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Water and Sanitation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Loan Amount (USD)
$ 200.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 750.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IIC website

Updated in EWS Sep 18, 2018

Disclosed by Bank Apr 27, 2018

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Inter-American Development Bank Invest (IDB Invest), formerly the Inter-American Investment Corporation (IIC), the project will directly support Mexico City’s Zero Waste (Basura Cero) Program, the main objective of which is to reuse/recycle the majority of Mexico City’s solid waste by 2020 through specific initiatives that aim to extract potential benefits from all waste which is being disposed of currently.

To this end, the project has the following specific objectives:

(i) add 150 MW of energy capacity to the Mexican electricity system by processing residual urban solid waste )

(ii) generate at least 965 GWh of electricity for consumption by the Mexico City Public Transport System (Sistema Colectivo de Transporte)

(iii) process up to approximately 1,678,000 tons of non-organic urban waste annually.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The project is currently classified as a category B, but the Inter-American Investment Corporation says that it could change to an A rating depending on the extent of the impacts to air quality, contamination of soil, water and groundwater, barriers to bird migration (especially due to the power line), analysis of cumulative impacts, and on the public consultation and disclosure process in accordance with the Corporation's Disclosure of Information Policy.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

According to the Inter-American Investment Corporation, the total cost of the project is expected to be approximately US$ 750 million. It is expected that the financial plan will include loans from the Inter-American Investment Corporation and the Inter-American Development Bank for up to US$ 200 million for a term of up to 20 years.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

This project includes a public-partner partnership. This consists of a 33-year contract with the Mexico City government through the Urban Services Management Unit. Practivo Medio Ambiente Mexico, S.A. de C.V. will be the operations and maintenance provider. On the Inter-American Development Bank Invest's website, they also list Termo WTE S.A. de C. V. as the company and Termoenergía CDMX Holding, S.A. de C.V. as a sponsoring agency. As of the time of writing, information on these two actors roles or even their websites was unavailable. 

The borrower, Termo WTE S.A. de C. V., has signed a 33-year Public-Private Partnership (Proyecto para Prestación de Servicios) contract with the Mexico City government through the Urban Services Management Unit (Agencia de Gestión Urbana). The Equipment, Procurement and Construction contractor will be a global leader in energy from waste and the Operator and Maintenance Provider will be Proactiva Medio Ambiente Mexico, S.A. de C.V., which is a subsidiary of Veolia Environment S.A.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Proactiva Medio Ambiente, S.A. Contractor -
- - - - Termo WTE S.A. de C. V. Undisclosed -
- - - - Termoenergía CDMX Holding, S.A. de C.V. Undisclosed -
- - - - Veolia Environnement S.A. Contractor -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Contact: 

Name: Gabriel Konik Derechin

Title: Representative

Telephone number: +525552021478

Email: gabriel.konik@ck.com.mx

ACCOUNTABILITY MECHANISM OF IIC

The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IIC)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IIC is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).

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