Colombia closes financing for delayed water system

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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.