Colombia closes financing for delayed water system

Tuesday, March 13, 2018

Colombia's housing ministry, special fund Fondo Adaptación, the government of Casanare department and its capital Yopal reached an agreement to finalize financing for the long-delayed new water system for the city.

The project's estimated cost is 92.8bn pesos (US$33mn), and it will now receive 6bn pesos from the housing ministry, 17bn from Fondo Adaptación, and 6bn from Casanare's government, a press release from the fund says. Of the total cost, 34bn pesos will have come from Fondo Adaptación.

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Last November, the consortium in charge of construction, Aguas de Yopal, suspended works citing lack of funding, and demanded the project be restructured, according to a report from RCN Radio.

Prior to that, Spanish firm Abengoa had to cede its stake in the contract during negotiations to restructure its debt.

The project entails building a new potable water plant, a water intake and transfer infrastructure, and installing water pipelines in the city.

Last July, Colombia's attorney general Fernando Carrillo called the project a "monument to poor management," stating that 150bn pesos "have been thrown into the garbage" during its construction.