Mexico City February 16, 2017.
IFC, a member of the World Bank Group, and SUEZ, a worldwide leading company in sustainable resource management, signed a Memorandum of Understanding (MOU) to express their commitment to co-invest in a special purpose vehicle aimed at developing brownfield and greenfield water, wastewater and waste management projects throughout Mexico.
SUEZ is willing to contribute through its extensive expertise in projects and concessions which offer high quality water, wastewater and waste management solutions to local authorities and industries; while IFC is willing to contribute through its global experience and track record investing in these sectors in a sustainable manner, leveraging on its IFC Sustainability Framework, its network of national and international institution and effective relationships with national and subnational public authorities in Mexico and Latin America and elsewhere.
IFC and SUEZ joint effort in México will represent a first step to nurture a long-term relationship to develop similar investment vehicles in different relevant developing markets in Latin America and elsewhere. The Memorandum of Understanding was signed by Dimitris Tsitsiragos, VP of IFC, and Jean-Louis Chaussade, CEO of SUEZ.
According to Tsitsiragos, water quality and availability represent one of the most urgent sustainability challenges for the Mexican people and for Mexican businesses: “The whole water and waste value chain requires very large investments that can only come from a strong and effective collaboration between the public and the private sectors. In collaboration with SUEZ and with municipal, state, and federal agencies, our goal is to implement a number of exemplary projects that will have strong impact and will serve as demonstration for many more to come.”
Chaussade stated that collaboration and Innovation will be key to face water management’s challenges in Mexico: “What we signed today is an opportunity to implement a new business model combining technical expertise of SUEZ with stability in the asset management with a long-term investor, IFC.”
The water sector in Mexico poses significant challenges and opportunities. Although the country has abundant water resources in the south, more than half of its population lives in areas considered water-stressed. In addition, insufficient investment in infrastructure and water management issues have turned Mexico in one of the largest water-stressed countries in the world. In this context, 105 out of the 731 river basins across Mexico have water constraints, and 106 out of the 653 existing aquifers have been severely overexploited. Many of these aquifers represent the main water source for urban settlements and rural communities, as well as farmland. Due to these issues, the water availability has diminished from 18,000 m3 per capita per year in 1950 to 3,900 m3 in 2013, and almost 35 million Mexicans live in water-scarce areas.
IFC mission is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. In the water and Municipal sectors, IFC has provided over US$2.9 billion for nearly 100 projects since 2005. IFC is also a founding member of the 2030 Water Resources Group, a platform where public and private sector leaders collaborate to find solutions related to water use and management in emerging markets.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit
SUEZ supplies drinking water to 92 million people, delivers waste water treatment services to 65 million, collects waste produced by almost 34 million, recovers 16 million tons of waste each year and produces 7 TWh of local and renewable energy. With 82,530 employees, SUEZ, which is present on all five continents, is a key player in the sustainable management of resources. SUEZ generated total revenues of €15.1 billion in 2015.
About SUEZ Mexico
SUEZ has been actively present in water management in Mexico for 40 years. The Group has built more than 300 water and wastewater treatment plants and offers its expertise in the distribution of drinking water and in technical and commercial support to local authorities in major cities, such as Saltillo or Mexico City. Today, 10 million inhabitants benefit from the services delivered by almost 2,200 employees.