Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
07-15-19 Desal Project Committee Packet
OTAY WATER DISTRICT DESALINATION PROJECT COMMITTEE MEETING and SPECIAL MEETING OF THE BOARD OF DIRECTORS 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA Boardroom MONDAY July 15, 2019 10:00 A.M. This is a District Committee meeting. This meeting is being posted as a special meeting in order to comply with the Brown Act (Government Code Section §54954.2) in the event that a quorum of the Board is present. Items will be deliberated, however, no formal board actions will be taken at this meeting. The committee makes recommendations to the full board for its consideration and formal action. AGENDA 1. ROLL CALL 2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JU- RISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA DISCUSSION ITEMS 3. INFORMATIONAL UPDATE FOR THE ROSARITO DESALINATION PLANT AND THE OTAY MESA CONVEYANCE AND DISINFECTION SYSTEM PROJECTS (KENNEDY) 4. ADJOURNMENT BOARD MEMBERS ATTENDING: Mitch Thompson, Chair Tim Smith 2 All items appearing on this agenda, whether or not expressly listed for action, may be delib- erated and may be subject to action by the Board. The Agenda, and any attachments containing written information, are available at the Dis- trict’s website at www.otaywater.gov. Written changes to any items to be considered at the open meeting, or to any attachments, will be posted on the District’s website. Copies of the Agenda and all attachments are also available through the District Secretary by contacting her at (619) 670-2280. If you have any disability that would require accommodation in order to enable you to partici- pate in this meeting, please call the District Secretary at 670-2280 at least 24 hours prior to the meeting. Certification of Posting I certify that on July 12, 2019 I posted a copy of the foregoing agenda near the regular meeting place of the Board of Directors of Otay Water District, said time being at least 24 hours in advance of the meeting of the Board of Directors (Government Code Section §54954.2). Executed at Spring Valley, California on July 12, 2019. /s/ Susan Cruz, District Secretary STAFF REPORT TYPE MEETING:Desalination Committee MEETING DATE: July 15, 2019 SUBMITTED BY:Bob Kennedy Engineering Manager CIP./G.F. NO: P2451- 001101 DIV. NO. ALL APPROVED BY: Dan Martin, Assistant Chief of Engineering Rod Posada, Chief, Engineering Mark Watton, General Manager SUBJECT:Informational Update for the Rosarito Desalination Plant and the Otay Mesa Conveyance and Disinfection System Projects GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To update the Otay Water District (District) Desalination Committee (Committee) on the progress of the Rosarito Desalination Plant and the Otay Mesa Conveyance and Disinfection System Projects (Project)(see Exhibit A for District Project location). ANALYSIS: This item was last presented to the Committee as an update at a meeting held on December 6, 2017. The updates or significant milestones that have been reached since the last update to the Committee include: AGENDA ITEM 3 2 Project Direction Aguas de Rosarito S.A.P.I. de C.V. (AdR), the special purpose company formed to own the Project, signed a 40-year definitive public-private partnership agreement with the State of Baja California (State) on August 25, 2016 to build a desalination plant and conveyance pipeline (Rosarito Project) and operate it for 37 years. This would be one of the first water projects delivered under the State’s Asociaciones Público Privadas (APP) law. The companies that make up AdR include a Mexican company called N.S.C. Agua S.A. de C.V. (NSCA), that is a subsidiary of Cayman- Islands based Consolidated Water (CWCO), together with one or more affiliates of Greenfield SPV VII, S.A.P.I. de C.V. (Greenfield), a Mexico company managed by an affiliate of a leading U.S. asset manager, and Suez Medio Ambiente México, S.A. de C.V., ("Suez"), a subsidiary of SUEZ International, S.A.S. In June 2018, AdR and Suez executed a contract whereby Suez will serve as the engineering, construction, and procurement contractor for the Rosarito Project, with such contract becoming effective on the effective date of the APP Contract. The APP Contract does not become effective until the State establishes and registers various payment trusts, guaranties, and bank credit lines for specific use by the Rosarito Project. During the congressional session that ended in March 2019, the State congress passed Decreto #335, which renewed fiscal authorizations to put in place various obligations that had expired at the end of 2018, before the obligations could be put in place. The obligations include payment trusts, guaranties, and bank credit lines that are obligations of the State under the public-private partnership agreement. These obligations are sized to secure the production rate of the Project’s first phase, which includes conveyance of the water to the El Florido delivery point. With the Decreto’s approval, the State is re-authorized to put the payment guaranties in place, thereby completing key conditions precedent for financial close. Recently, the Board of Directors of the Inter-American Development Bank (IDB) authorized up to $200 million in project financing and La Comisión Nacional del Agua (CONAGUA), the Federal organization for water in Mexico, granted both a seawater use concession and a discharge permit to Comisión Estatal de Aguas (CEA) for the Rosarito Project. 3 Also, various water purchase and sales agreements between CEA and Comisión Estatal de Servicios Públicos de Tijuana (CESPT) have been executed. AdR must also obtain all of the right-of- way required for the pipelines and execute all debt financing agreements needed to provide funding to AdR for the first phase of the Rosarito Project. CWCO estimates it could take four to six months for the State to tender with banks and put in place the lines of credit and for AdR to acquire the remaining aqueduct right-of-ways required for the Project. Both the State and AdR will need to work with the lenders to secure all the debt commitments and reach financial close. Rosarito Desalination Project in the News Desalination projects are subjects in the national, state, and local news, as well as in Mexico in the State of Baja California. Projects that provide a new supply of water have been mentioned on both sides of the border, including the Rosarito Beach Desalination Project. On December 4, 2017, the Water Desalination Report article entitled, “In Brief” about the approval of the necessary financial guarantees for public-private partnership projects governed by Mexico’s Asociaciones Público Privadas (APP) legislation (see Exhibit B). On January 8, 2018, the Water Desalination Report article, entitled “Regional Activity” repeated the same news (see Exhibit C). On March 13, 2018, the Water Desalination Report article entitled, “In Brief” described the equity position of Consolidated Water Company (CWCO), NSC Agua, and its Mexican subsidiary AdR, the special purpose company formed to own the Rosarito Project and pipeline (see Exhibit D). On March 24, 2018, the San Diego Union Tribune published an article entitled, “Giant Rosarito Beach desalination plant celebrated in groundbreaking ceremony” on Baja California Governor Francisco Vega de Lamadrid’s groundbreaking ceremony for the desalination plant at the site in Rosarito Beach (see Exhibit E). On March 26, 2018, the Water Desalination Report article entitled, “In Brief” noted the State governor of Baja California held a groundbreaking ceremony at the plant site the previous Friday (see Exhibit F). 4 On July 20, 2018, the San Diego Union Tribune published an article entitled, “Desalination plant brings relief to Ensenada residents struggling with limited water supply” on the “first utility-scale desalination plant has launched operations, supplying 5.7 million gallons a day of converted seawater to municipal water users in the port of Ensenada”. The report also notes that by the end of July, construction of a second desalination plant was set to begin in San Quintin (see Exhibit G). On October 1, 2018, an article in ZetaTijuana entitled, “Desaladora de Rosarito, el agua todavía más cara” about desalination as the more expensive water, the slow pace of the Rosarito Desalination Project, and economic alternatives being considered as an alternate source including potable reuse (see Exhibit H). On January 7, 2019, the Water Desalination Report article entitled, “Other Desal Project News” on Consolidated Water’s plan developing more slowly than expected in the last year (see Exhibit I). An article in Monitor Económico de Baja California entitled, “Bonilla y Bonfante siguen reuniéndose para abordar temas sobre agua” about the Federal delegate in Baja California, Jaime Bonilla and Carlo Bonfante, in charge of the Secretariat of Economic Development (SEDECO), continue to meet on water-related issues. The article notes Minutes from an Otay Water District Board meeting, dated October 2015, about meetings with staff and Carlo Bonfante, as a key person for the governor of Baja California for the desalination project (see Exhibit J). Another article, in the same publication, entitled “Bonfante encabeza la negociación para vender agua a EE.UU” notes meeting minutes from Otay Water District reporting staff from Otay meeting with Bonfante. The article also noted that the presidential permit the District acquired that would allow a cross-border pipeline to be built was approved by the Trump administration. On January 14, 2019, the Water Desalination Report article entitled, “Rosarito SWRO status: Mañana” on Mexico’s legislative efforts in 2016 with the Congress of the Mexican state of Baja California passed Decreto (Decree) #57, which authorized State agencies to invite banks to tender to provide guarantee mechanisms for payments under the public-private partnership projects governed by the country’s APP legislation. The article reports that in December 2017, amendments were added to Decreto #168 to comply with changes to the Financial Discipline law. 5 The article notes the guarantees provided in Decretos #57 and #168 are necessary for projects like CWCO’s 100 MGD Rosarito SWRO project to obtain financing. By the end of 2018, the State did not complete the legally mandated tender process to have banks provide the necessary guarantees, and the Congressional authorization expired, and the article notes the State planned to extend the December 31st deadline, but this may not comply with the Federal financial discipline laws. CWCO stated in this article that State officials have informed them that they will now seek another amendment of Decreto #57 to extend the authorization of the credit agreement to enable the Project to proceed to financial close. CWCO and its partners, Greenfield SPV VII and Suez, have extended the deadline for the conditions of the February 2018 share subscription agreement to June 30, 2019 (see Exhibit K). On April 1, 2019, the Water Desalination Report article entitled, “Mexico” about the March 28, 2019 Congress of the Mexican State of Baja California approval of a decree to restructure its external debt, which should allow the Rosarito Project to move closer towards financial closure (see Exhibit L). On April 2, 2019, an article in Uniradio Informa entitled, “Reestructuración de deuda del Estado no la aumentará: subsecretario” about the restructuring of the State’s debt, which will allow the desalination plant in Rosarito to secure financing (see Exhibit M). On April 8, 2019, the Voice of San Diego published an article entitled, “Environment Report: For Long-Term Water Supply, U.S. Officials Look to Mexico” on solutions to California and Arizona’s long-term water problems now involve Mexico. The report also notes that Otay Water District has been working with developers on a desalination plant in Rosarito, but the District’s part of the project is on hold (see Exhibit N). On April 29, 2019, the Water Desalination Report article entitled, “Legislation Allows SWRO Project to Proceed” on the passing of Decreto #336, which re-authorized the payment guarantees, which moves the project closer to financial close (see Exhibit O). An article in UniMexicali on May 13, 2019, entitled, “Desaladora de Rosarito colapsaría finanzas de ese municipio,” Carlos Ibarra, President of the Tijuana Business Council, said that the Playas de Rosarito project would collapse CESPT, as it happened 6 in Ensenada. He also said that MX$1.4 million are required for the desal plant to operate under normal conditions. This means that it would be necessary to increase the water costs (see Exhibit P). On May 18, 2019, an article in La Jornada Baja California entitled, “Bonilla: sí a desalinizadoras; pero sin tirar la salmuera al mar” about candidate for the governorship of Baja California, Jaime Bonilla Valdez, stating support for desalination plants, but without discharging the brine into the ocean (see Exhibit Q). An article in Monitor Económico de Baja California on May 19, 2019, entitled, “Planta de Rosarito producirá suficiente agua para exportar a EEUU, dijo Bonilla a San Diego Reader,” that according to the San Diego Reader, the Rosarito Desal will produce enough water to export to the US, Jaime Bonilla said on May 30, 2012. The article states that when Bonilla was on the Otay Water District Board, he advocated for the construction of a desalination plant in Rosarito, which would be financed by private interests. The plant would sell water to the Otay Water District, which would build a pipeline north of the border. The project has many detractors who express concerns for environmental costs (see Exhibit R). On May 20, 2019, the San Diego Union Tribune published an article entitled, “Cross-border politician leads Baja California race for governor” on the Baja California politician who has served in elected office in both the U.S. and Mexico. The report notes, “critics question his political affiliations and U.S. citizenship, while the candidate for State Governor sees them as attributes” (see Exhibit S). On May 20, 2019, an article in Ciudadtijuana entitled, “Agua’s de Rosarito cumple con todos los ordenamientos legales” states AdR is a solid and transparent company and all contractual and legal information related to the construction project of the seawater desalination plant in Playas de Rosarito is public (see Exhibit T). An article in Monitor Económico de Baja California on May 21, 2019, entitled, “Tras financiamiento para planta de Rosarito, Consolidated Water va por mayor expansión,” that according to Rick McTaggart, President of Consolidated Water “We are focused on closing the development phase of the Rosarito Project, as well as expanding our business to new markets, including North America, to diversify our revenue streams.” McTaggart also said that the state government obtained two critical permits for the 7 Project, one for the extraction of seawater and the second for the discharge of concentrated seawater (see Exhibit U). On June 2, 2019, the San Diego Union Tribune published an article entitled, “Jaime Bonilla declares himself winner in Baja California” that stated “Jaime Bonilla, a close political ally of Mexico’s president and a former Chula Vista politician, declared himself the newly elected governor of Baja California” (see Exhibit V). On June 4, 2019, an article in La Jornada Baja California entitled, “Se revisará el proyecto de la desaladora: Bonilla Valdez” about Governor-elect Jaime Bonilla’s first actions will be to review the financial and environmental viability of the Playas de Rosarito Desal Plant. The article states Bonilla will inherit a bankrupt state and controversial projects, such as the desalination plant and the installation of the Constellation Brands brewery in Mexicali. For Bonilla, the problem of the desalination plant is not the size of the project, but how much of the state's finances it compromises: “I will not permit the project to leave us without resources” (see Exhibit W). On June 5, 2019, an article in La Jornada Baja California entitled, “Imprescindible construir la desaladora de Rosarito, insiste Vega de Lamadrid” about Governor Francisco Vega de Lamadrid, saying that it is imperative to build the desalination plant at Playas de Rosarito because the Rio Colorado-Tijuana Aqueduct is deteriorated and is located in a seismic zone. The article also quotes the Governor “it is a lie that the water produced by the desal plant will be sold to the United States. The water will only be sold to Baja’s government through the State Commission for Public Services of Tijuana” (see Exhibit X). Contract with AECOM The contract with AECOM expired on June 30, 2018 and was not extended. Division of Drinking Water (DDW) Permitting (formerly CDPH) On November 15, 2017, the District notified DDW that after three years of source water testing at the power plant intake and outlet structures, AdR will suspend further routine testing and focus on the financial close of Phase 1 of the two phase Project. The results are posted with DDW. 8 Presidential Permit The Department of State issued a Presidential permit to the District on May 16, 2017, authorizing the District to construct, connect, operate, and maintain cross-border water pipeline facilities for the importation of desalinated seawater at the international boundary between the United States and Mexico in San Diego County, California. In making this determination, the Department provided public notice of the proposed permit, offered the opportunity for comment, and consulted with other federal agencies, as required by Executive Order 11423, as amended. This was published in the Federal Register on June 6, 2017. This permit will expire unless work begins on the cross- border pipeline or the permit is extended by May 16, 2022. It is expected Mexico’s federal agencies may need to issue a similar permit to bring symmetry into the approval of a cross- border pipeline with the International Boundary and Water Commission, and their counterpart in Mexico, Comisión Internacional de Límites y Agua (IBWC/CILA) as the agencies to administer the transportation of water across the border and to protect the District from local interference in the delivery of desalinated water. IBWC/CILA currently fill this role for the existing pipeline border crossing south of Alta Road that transport Mexico water from Mexico’s allotment from the Colorado River. FISCAL IMPACT: Joe Beachem, Chief Financial Officer No fiscal impact as this is an informational item only. See Attachment B - Budget Detail. As of March 18, 2019, $4,168,651 has been spent. Staff has stopped all activities concerning the Project. All expenditures will be suspended until more progress is made in Mexico on the Project. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally responsible manner” and the General Manager’s Vision, "To be a model water agency by providing stellar service, achieving measurable results, and continuously improving operational practices." 9 LEGAL IMPACT: None. BK/RP:jf P:\WORKING\CIP P2451 Desalination Feasibility Study\Staff Reports\Committee Desal Update 2019-1\Desal Update\Committee 07-15-19, Staff Report, Desal Update, (BK-RP).docx Attachments: Attachment A – Committee Action Attachment B – Budget Detail Exhibit A – Project Location Exhibit B – Water Desalination Report, dated December 4, 2017 Exhibit C – Water Desalination Report, dated January 8, 2018 Exhibit D – Water Desalination Report, dated March 13, 2018 Exhibit E – Giant Rosarito Beach desalination plant celebrated in groundbreaking ceremony, San Diego Union Tribune, dated March 24, 2018 Exhibit F – Water Desalination Report, dated March 26, 2018 Exhibit G – Desalination plant brings relief to Ensenada residents struggling with limited water supply, San Diego Union Tribune, dated July 20, 2018 Exhibit H – Desaladora de Rosarito, el agua todavía más cara, http://zetaTijuana.com, dated October 1, 2018 Exhibit I – Water Desalination Report, dated January 7, 2019 Exhibit J - Bonilla y Bonfante siguen reuniéndose para abordar temas sobre agua and a second article; Bonfante encabeza la negociación para vender agua a EE.UU, Monitor Económico de Baja California, January 4, 2019 Exhibit K – Water Desalination Report, dated January 14, 2019 Exhibit L – Water Desalination Report, dated April 1, 2019 Exhibit M – Reestructuración de deuda del Estado no la aumentará: subsecretario, Uniradio Informa, dated April 2, 2019 Exhibit N – Environment Report: For Long-Term Water Supply, U.S. Officials Look to Mexico, Voice of San Diego, dated April 8, 2019 Exhibit O – Water Desalination Report, dated April 29, 2019 10 Exhibit P – Desaladora de Rosarito colapsaría finanzas de ese municipio: UniMexicali, dated May 13, 2019 Exhibit Q – Bonilla: sí a desalinizadoras; pero sin tirar la salmuera al mar: La Jornada Baja California, dated May 18, 2019 Exhibit R - Planta de Rosarito producirá suficiente agua para exportar a EEUU, dijo Bonilla a San Diego Reader, Monitor Económico de Baja California, May 19, 2019 Exhibit S – Cross-border politician leads Baja California race for governor, San Diego Union Tribune, dated May 20, 2019 Exhibit T – Aguas de Rosarito cumple con todos los ordenamientos legales: CiudadTijuana, dated May 20, 2019 Exhibit U - Tras financiamiento para planta de Rosarito, Consolidated Water va por mayor expansión, Monitor Económico de Baja California, May 21, 2019 Exhibit V – Jaime Bonilla declares himself winner in Baja California, San Diego Union Tribune, dated June 2, 2019 Exhibit W – Se revisará el proyecto de la desaladora: Bonilla Valdez: La Jornada Baja California, dated June 4, 2019 Exhibit X – Imprescindible construir la desaladora de Rosarito, insiste Vega de Lamadrid: La Jornada Baja California, dated June 5, 2019 ATTACHMENT A SUBJECT/PROJECT: P2451-001101 Informational Update for the Rosarito Desalination Plant and the Otay Mesa Conveyance and Disinfection System Projects COMMITTEE ACTION: The Desalination Committee (Committee) reviewed this informational item at a meeting held on July 15, 2019. ATTACHMENT B – Budget Detail SUBJECT/PROJECT: P2451-001101 Informational Update for the Rosarito Desalination Plant and the Otay Mesa Conveyance and Disinfection System Projects Date Updated 03/18/2019 Budget 30,000,000 Phases Planning Consultant Contracts 26,369 26,369 - 26,369 BROWNSTEIN HYATT FARBER 98,577 98,577 - 98,577 CAMP DRESSER & MCKEE INC 13,311 13,311 - 13,311 CPM PARTNERS INC 380,200 380,200 - 380,200 HECTOR I MARES-COSSIO 71,531 71,531 - 71,531 MARSTON & MARSTON INC 26,700 26,700 - 26,700 REA & PARKER RESEARCH 4,173 4,173 - 4,173 SALVADOR LOPEZ 225,499 225,499 - 225,499 SILVA-SILVA INTERNATIONAL 13,400 13,400 - 13,400 SVPR COMMUNICATIONS Meals and Incidentals 21,944 21,944 - 21,944 STAFF Printing 61 61 - 61 MAIL MANAGEMENT GROUP INC Professional Legal Fees 2,516 2,516 - 2,516 ARTIANO SHINOFF 162,041 162,041 - 162,041 GARCIA CALDERON & RUIZ LLP 43,175 43,175 - 43,175 SOLORZANO CARVAJAL GONZALEZ Y 32,612 32,612 - 32,612 STUTZ ARTIANO SHINOFF Regulatory Agency Fees 3,120 3,120 - 3,120 COUNTY OF SAN DIEGO 2,142 2,142 - 2,142 STATE WATER RESOURCES Service Contracts 500 500 - 500 REBECA SOTURA NICKERSON 875 875 - 875 LEONARD VILLAREAL 32,463 32,463 - 32,463 (W)RIGHT ON COMMUNICATIONS INC 39,500 39,500 - 39,500 BUSTAMANTE & ASSOCIATES LLC 290 290 - 290 SAN DIEGO DAILY TRANSCRIPT 685 685 - 685 SAN DIEGO UNION-TRIBUNE, THE Standard Salaries 1,212,336 1,212,336 - 1,212,336 Total Planning 2,414,019 2,414,019 - 2,414,019 Design 001102 Consultant Contracts 1,432,253 1,432,253 - 1,432,253 AECOM TECHNICAL SERVICES INC 3,952 3,952 - 3,952 AIRX UTILITY SURVEYORS INC 5,000 5,000 - 5,000 ATKINS 8,818 8,818 - 8,818 CPM PARTNERS INC 5,109 5,109 - 5,109 MARSTON+MARSTON INC 35,520 35,520 - 35,520 MICHAEL R WELCH PHD PE Meals, Travel, Incidentals 3,457 3,457 - 3,457 STAFF Professional Legal Fees 7,761 7,761 - 7,761 STUTZ ARTIANO SHINOFF Regulatory Agency Fees 1,127 1,127 - 1,127 STATE WATER RESOURCES Service Contracts 1,084 1,084 - 1,084 SAN DIEGO UNION-TRIBUNE LLC 114 114 - 114 REPROHAUS CORP Standard Salaries 250,108 250,108 - 250,108 Total Design 1,754,303 1,754,303 - 1,754,303 Construction Standard Salaries 329 329 - 329 Total Construction 329 329 - 329 Grand Total 4,168,651 4,168,651 - 4,168,651 Vendor/Comments Otay Water District P2451 Otay Mesa Desalination Conveyance and Disinfection System Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost 571-1RESERVOIR 870-1RESERVOIR OTAY MESA RD EN R I C O F E R M I D R DONOVA N DONOVANCORRECTIONALFACILITY SIEMPRE VIVA RD G.F. BAILEYDETENTION FACILITY AIRWAY RD AL T A R D PASEO DE LA F U E N T T E STATE PRISON RD ALT A R D MEXICO USA OW D B O U N D A R Y FUTURE FUT U R E ?ò ?Ü ?Ü FUTUREPORT OFENTRY OTAY WATER DISTRICTOTAY MESA DESALINATION CONVEYANCEAND DISINFECTION SYSTEM PROJECT EXHIBIT A CIP P2451 0 2,0001,000 Feet F P: \ W O R K I N G \ C I P P 2 4 5 1 D e s a l i n a t i o n F e a s i b i l i t y S t u d y \ G r a p h i c s \ E x h i b i t s - F i g u r e s \ E x h i b i t A , M a r c h 2 0 1 5 . m x d Legend Pipeline Alternative 1 Pipeline Alternative 2 Pipeline Alternative 3 VICINITY MAP PROJECT SITE NTSDIV 5 DIV 1 DIV 2 DIV 4 DIV 3 ?ò Aä%&s ?p ?Ë !\ F MGD); however, no schedule for an expansion has been announced. The first phase of the project was awarded to a Degrémont (Suez) and Multiplex alliance in 2005, and commissioned in early 2007. Aguakan, a municipal water provider in the Mexican state of Qunitana Roo, has reportedly announced that it will build two 50 L/s (793 gpm) BWRO plants to serve the city of Playa del Carmen. One will be located at Ejidal and the other in Guadalupana. The first plant is expected to be operational in early February 2018. People Gradiant Corporation has announced that Lisa (Sorgini) Marchewka has joined as SVP of Marketing. Marchewka, who previously served as the VP of Global Strategic Market- ing for Pall Corporation’s water system business, will lead Gradiant’s branding and external communication efforts. She can be reached at lmarchewka@gradiant.com. Professor Menachem Elimelech, of Yale University’s Department of Chemical and Environmental Engineering, has been elected to the Chinese Academy of Engineering as one of 18 foreign members. The induction ceremony will be held in June 2018. Jobs ACWA Power seeks an Executive Manager for Desal- ination to be based in Dubai. The position requires a candidate with 10+ years of experience in the design, engineering and execution of seawater desalination plants and experience in the Middle East. Please contact Justine Espaldon at JEspaldon@acwapower.com for further details. Rice University’s NEWT NSF Center in Houston, Texas, is seeking a full-time Research Engineer to design and operate small to pilot-scale testbed water treatment technologies developed by students and faculty. The candidate will interact frequently with NEWT industrial members, and help in developing externally funded research programs. The successful candidate will have a doctoral degree and PE registration. For information, visit https://jobs.rice.edu/ postings/12457. Page 4WATER DESALINATION REPORT – 4 December 2017 Tom Pankratz, Editor, P.O. Box 75064, Houston, Texas 77234 USA – Phone: +1-281-857-6571 – tp@globalwaterintel.com © 2017 Media Analytics. Published in cooperation with Global Water Intelligence. Rate for one year. £355 or US$550. Reproduction or electronic distribution is forbidden. Subscribers may circulate on immediate premises. spirit of public service. He was also a good friend who would routinely show up for our mountain climbing expeditions wearing a sport coat, tie, slacks and dress shoes, as if he was hoping that our outdoor adventure might magically transmute into a water deal-making business meeting. “He would always bring along his old war surplus sleeping bag as if to mock our ridiculously expensive, high-tech goose down gear. I knew that he had to be freezing, which admittedly did give me some degree of comfort when I thought about how much money I had spent on my bag. Have a safe journey Neil…no hurry to get to that far off summit.” Sybil, his wife of 40 years, four children and nine grandchildren survive him. The family will hold a private ceremony in May. In brief Last Friday, the Congress of the State of Baja California, Mexico, approved the necessary financial guarantees for public-private partnership projects governed by Mexico’s Asociaciones Público Privadas (APP) legislation. The move should prove to be a major step towards financial close for two seawater desal projects: Consolidated Water’s 100 MGD (378,500 m3/d) Rosarito SWRO project and RWL Water’s 5.8 MGD (22,000 m3/d) San Quintin SWRO project. This guarantee, Decreto 57, is understood to be a core component of the transparent sovereign guarantee required under Mexican APP laws. Fluence has signed a framework agreement to deliver six containerized wastewater treatment plants employing its MABR technology with capacities ranging from 600 to 1,000 m3/d (0.16-0.26 MGD) in China’s Guizhou province. The units are part of a public-private partnership with Jiangsu Jinzi Environmental Science and Technology Company. The units are to be installed and delivered in 2018. The Water Corporation of Western Australia has reportedly paid A$30.5 million ($23.2 million) to acquire a 15.2ha (37.7 acre) tract of land adjacent to the Perth Seawater Desalination Plant in Kwinana. The land could eventually allow expansion of the production capacity of the existing 137,000 m3/d (36 MGD) SWRO plant to 205,500 m3/d (54.3 Page 4 of 7WATER DESALINATION REPORT – 8 January 2018 referred to as the “stealth SWRO plant”. Italy’s M&G had partnered with Italveco SrL, another Italian firm, and most of the available information about the project was gleaned from Texas permits [2]. Even as the desal plant pre-commissioning began, there were bigger troubles brewing for the PTA/PET plant itself. Following wet testing of the pretreatment system, as the membranes were about to be installed, M&G filed for bankruptcy protection of the project, and all site work was halted [40]. It said that the facility, including the desal plant, would be auctioned off to pre-qualified bidders in early 2018 [43]. Some have speculated that the PTA/PET plant might be sold and moved to China or India, leaving the desal plant behind and making it available for sale and local use, while others think a new owner might hire a company to operate the desal plant. In addition to those awaiting the outcome of the M&G auction, desal plant developers and suppliers continue to pay attention to the Corpus Christi area. A group of local investors began interviewing developers to build a SWRO plant for private industrial offtakers [6], and the Texas Water Development Board (TWDB) earmarked financial assistance to the city to plan a large-scale project [25]. When Hurricane Harvey hit the Corpus Christi area in August, it looked liked the area’s reservoirs might get some relief. Alas, the hurricane only delivered a damaging windstorm to the area and contributed a measly 1.2 percent to the already low reservoir levels before quickly moving northeast and inundating Houston with over 50 inches (1.27m) of rain [30]. At the Texas Desal Association conference in Austin, one speaker outlined how a large-scale SWRO could be constructed to deliver water at a cost of less than $3.00/ kgal ($0.80/m3) [33]. Then, at a local Corpus Christi Desal Summit in November, at least four developers outlined their preliminary plans for a project, with the state representative who hosted the event saying, “My goal is to make seawater desalination a reality in Texas’ Coastal Bend” [43]. San Antonio – In late January, San Antonio Water Systems (SAWS) formally opened its first large-scale BWRO facility. This is the first of three project phases, and uniquely, the plant produces water from three different sources: the Wilcox Aquifer, Carrizo Aquifer and Edwards Aquifer, and has the capability to store desalted water in an aquifer storage and recovery (ASR) site on the property [4]. El Paso – Even before it was fully commissioned, Enviro Water Minerals (EWM) and NorrisLeal won an innovation award for their Full Recovery Desalination plant from the TWDB. The plant is built adjacent to El Paso Water Utilities’ Kay Bailey Hutchison Desal Facility [4], and was opened in late April. From RO concentrate, it recovers additional fresh water, as well as high-purity, industrial-grade mineral products that can be sold in commercial markets [16]. Mexico Rosarito – Mexico’s largest proposed seawater desal plant—which will be designed, built, owned and operated by Aguas de Rosarito, a special purpose company owned by Consolidated Water’s (CWCO) NSC Agua subsidiary, and SAPI de CV—started the year with the good news that the legislature had taken the initiative to ensure payment obligations over the 40-year life of the mega-project, one of the first two to be constructed under the state’s new APP public-private partnership legislation [3]. However, in a March filing for its SEC 10-K, CWCO expressed concern over the falling value of the peso and its ability to finance the project unless it was able to be compensated for changes that took place since the date that the bid was submitted [11]. In May, a US presidential permit was issued for a cross-border pipeline, allowing a California utility to import some of the water to the US [19], a situation that seems less likely based on news reports over the last two weeks. Another legislative logjam seems to have been broken in early December, when the Baja, Mexico, state congress approved the necessary project financial guarantee mechanism [43]. This could signal a financial closure in Q1 or Q2 2018. San Quintin – Like the Rosarito project, above, the San Quintin project will fall under the rules of the state’s new APP legislation. The project is being developed by RWL Water (Fluence), 160-miles (256km) south of the US border, in Ensenada, and is considerably smaller than the Rosarito project [4]. Based on the recent approval of the method to guarantee payment, a Q1 2018 financial closure is expected. Sonora – Large-scale seawater desal was first considered as a water supply for Sonora’s capital city of Hermosillo in the late 1990s, and a BOOT contract was actually awarded in 2001, before being cancelled four months later, in the face of political pressure. It was resurrected five years later, and again delayed. Now, considered an “immediate state necessity”, the project is back, albeit in a more modest size, to initially serve the coastal cities of Guayamas and Empalme, with plans for future expansion and a pipeline to Hermosillo [12]. Bidding documents for a modular BOT plant were issued in July, and plans call for it to be operational in late 2019 Rate for one year: £355 or US$550. Subscribe and renew online at: www.desalination.com/wdr Reproduction or electronic distribution is forbidden. Subscribers may circulate their copy on their immediate premises. To email or create additional copies for other office locations, contact Jake Gomme (jg@globalwaterintel.com) to arrange a site license. Page 6 of 6WATER DESALINATION REPORT – 13 March 2018 Art (not Technology) Mmmm…herb-flavored bathwater Pratik Ghosh, a Royal College of Art graduate, has designed a home water system that relies on transpiration occurring under a glass-covered biosphere to produce “drinking water” from household greywater. Consolidated Water Company (CWCO) said that NSC Agua, its Mexican subsidiary, will retain at least 25% equity in Aguas de Rosarito (AdR), the special purpose company formed to own the 100 MGD (378,500 m3/d) Rosarito SWRO project and pipeline, while Greenfield SPV VII will acquire a minimum of 55% equity in AdR Suez Medio Ambiente México, a Suez subsidiary, will have the option to purchase 20% of the equity. If Suez does not exercise its option, NSC will retain 35% of AdR’s equity and Greenfield will acquire 65%. Under the terms of the Agreement, Suez will design and construct the Project, while a joint venture company between NSC and Suez will operate it. The Bushehr Province Water & Wastewater Company has awarded a BOO contract for a 35,000 m3/d (9.25 MGD) SWRO to the Mapna Group, an Iranian EPC contractor and equipment supplier. The project will supply drinking water to Bushehr City in southwest Iran, and was awarded at a unit price of IRR21,000/m3 ($0.56/m3; $2.12/kgal). Landfill Leachate Webinar – The Northeast Water Inno- vation Network (NEWIN) will host a webinar that addressing the complex problems of managing landfill leachate. The event will help participants develop an understanding of the challenges landfill operators and POTWs have within this market-segment and the opportunities available to technology developers and solution providers. The webinar will take place from 2:00-3:00 PM EST, on Friday, 30 March. For details and to register, visit: http://www.newengland- win.org/home/leachate-webinar/. People Melissa Meeker, the co-CEO of the Water Research Foundation since its merger with the Water Environment & Reuse Foundation, has announced that she will step down from the position at the end of April. She has accepted a position with Brown & Caldwell, and will be based in their Lakewood (Denver), Colorado, office. Following her late April start date, she may be contacted at mmeeker@ brwncald.com. Peter Lake has been serving as a board member of the Texas Water Development Board since December 2015. The Texas Governor has now designated him Chairman. Greywater poured into the Drop by Drop “plant- based water filter” provides nourishment for the plants, which is conveyed to the leaves by osmosis. The vapor produced through transpiration is then condensed to produce “drinking water”. Ghosh suggests planting herbs. They not only can be harvested for use in cooking, but also, Ghosh claims, they impart an enjoyable flavor to the water produced. Said to operate like a “mini Amazon rainforest”, the Drop by Drop is not quite as natural as it might seem: it uses a light to trigger photosynthesis, a pump to control airflow and create a vacuum to enhance transpiration, and a condenser to cool the vapor. One has to wonder what happens to organics, bacteria, soaps and other household products from a sink, bathtub and dishwasher as they continue to accumulate in the soil? No mention is made of how to keep the terrarium from becoming a Legionnairium. In brief Canada’s Newterra, a supplier of modular water and wastewater treatment plants and MicroClear UF membranes, has acquired Minnesota-based Aeration Industries International, a specialist in wastewater aeration and mixing. In 2014, Newterra acquired Crane’s RO, EDI and ion exchange products. Aeration Industries had been owned by Granite Equity Partners. Barefoot and fancy free Exhibit E Giant Rosarito Beach desalination plant celebrated in groundbreaking ceremony Baja California Gov. Francisco Vega de Lamadrid speaks during a groundbreaking celebration desalinization plant in Rosarito Beach. To the immediate right is Alejandro Hinojosa, managing director of the North American Development Bank. (David Maung /) Sandra Dibble Saying desalination will guarantee the drinking water supply for future generations of Baja California residents, Gov. Francisco Vega de Lamadrid on Friday celebrated a groundbreaking ceremony for a desalination plant envisioned as the largest in the Western Hemisphere. “On our peninsula, the best option is desalinated sea water,” Vega said at a ceremony held beneath a tent at the site of the future plant, adjacent to the President Juarez Thermoelectric Plant in Rosarito Beach. He called the planned facility “one of the great works” of the state, akin to the channeling of the Tijuana River or the construction of the Colorado River aqueduct that crosses the state. The planned reverse osmosis facility is a project developed and financed by an international consortium in a public-private partnership with the Baja California government. At full capacity, the plant would convert up to 100 million gallons of seawater a day. Like San Diego, Baja California is heavily dependent on the Colorado River, which reaches Tijuana and Rosarito Beach through an aqueduct that crosses the state.The governor said the planned project would reduce the dependence of the state’s coastal regions on water from the aqueduct, and attract investment to the region. But the project has been fiercely opposed by critics who question its size, saying Tijuana needs to make better use of the water that it does have, and invest in water re-use, before embarking on such a large commitment that they say would raise water rates. While authorities from three levels of government celebrated the project, a few dozen protesters were kept blocks away. Despite the groundbreaking ceremony, the project’s developers say they still have several steps before they can start construction. The state still needs a federal permit for the use of sea water. And the private developer, Aguas de Rosarito, needs a federal permit for concentrated discharge of residual water from the plant, according to a filing earlier this month with the U.S. Securities and Exchange Commission. The future facility is being envisioned in two phases. The first $491-million phase is set to launch operations three years from now and produce 50 million gallons a day, the governor said. At full build-out, the plant would be twice the size of the Poseidon Plant in Carlsbad, and supply drinking water for some 2 million people. The project is being developed through a public-private-partnership that in 2016 won the bid to design and build the plant and operate it for 37 years. The water would be sold to the state of Baja California, which would be in charge of its distribution. The project has been spearheaded by NSC Agua, a Mexican company that is the subsidiary of Cayman Islands-based Consolidated Water, which develops and operates seawater desalination plants. Earlier this month, Consolidated Water announced that NSC Agua had reached agreement for the equity funding required to build and operate the project. Aguas de Rosarito is the special purpose company formed to own the project. Page 4WATER DESALINATION REPORT – 26 March 2018 AMTA New board, exec committee named At a board meeting following its recent Membrane Tech- nology Conference, the American Membrane Technology Association (AMTA) welcomed its new board members and elected its new executive committee as follows: Newly Elected Board Members: •Buddy Boysen (Hazen and Sawyer) •Rebecca Wilder (Town of Jupiter, Florida) Re-appointed Director-at-Large: •Mike Snodgrass (Ovivo USA) Executive committee members: •Brent Alspach (Arcadis), President (second term) •Christine Owen (Hazen and Sawyer), 1st Vice-President •Jill Miller (Bozeman, Montana), 2nd Vice-President •Lynne Gulizia (Toray Membrane USA), Secretary •Karen Lindsey (Avista Technologies), Treasurer •Scott Freeman (Black & Veatch), Past President For a completed listing of all current board members, visit www.amtaorg.com/about-amta/board-of-directors. In brief Australia-based Water Resources Group, which has dabbled in developing small-scale SWRO and renewable energy projects, will change its name to Purifloh Ltd., reflecting its interest in the hydroxyl ion (OH). The company, which has traded on the Australian stock exchange since 2010, will also change its ASX listing to PO3, which reflects its interest in ozonation of air and water flows. The company’s share price had dropped to near-zero in late 2017, but rose to A$0.90 earlier this year after it raised A$625,000 ($470,000) for working capital. It closed last week at A$0.64. IFM Investors, the Australian infrastructure fund, has signed an agreement to acquire 49% of FCC Aqualia, the water and desalination arm of Spain’s FCC service group, for €1.029 billion ($1.26 billion). FCC will retain control of Aqualia and will use the proceeds from the sale principally to reduce its financial debt. The deal is subject to regulatory approvals and is expected to close in August. Evoqua Water Technologies has announced the closing of a secondary public offering of 20,125,000 shares of common stock by certain shareholders of the company at a public offering price of $22.00/share. The company did not sell any shares in the offering, and did not receive any proceeds from the sale of shares by the Selling Stockholders, including from the exercise by the underwriters of their option to purchase additional shares. Although the Rosarito Seawater Desal Plant project, in Baja California, Mexico, is believed to be several months from financial close, with two federal permits—a seawater use permit and a concentrate discharge permit—still to be secured, the state governor held a groundbreaking ceremony at the plant site this past Friday. The 100 MGD (378,500 m3/d) SWRO project is being developed by Consolidated Water Company’s (CWCO) Mexican subsidiary, NSC Agua. Suez will design and construct the project, while an NSC Agua-Suez joint venture will operate it. Los Angeles-based Moleaer reports that it has upgraded an MBR at Bear Republic’s northern California brewery with its aeration system. The MBR, which follows an anaerobic process, was upgraded to employ pure oxygen and a 5-hp XTB Nanobubble Generator to enhance oxygen transfer efficiency, reduce energy costs and eliminate the need for chemical defoamers. The Village of Wellington, Florida, will hold a mandatory pre-bid meeting for the construction element of an upgrade and expansion of its two BWRO plants on 2 April. A new train will be added to each facility while the existing systems and/or infrastructure will be re-configured and upgraded. Bids will be due on 3 May, and Kimley-Horn is providing design services and will act as owner’s engineer. People Imran Jaferey has been appointed chief operating officer of Nanostone Water. Formerly the vice president of sales for Headworks, he will now be based in Boston, Massachusetts, and may be contacted at imran.jaferey@nanostone.com. Brad Hice, formerly with DeNora Water Technologies, has been appointed as Moleaer’s senior business development manager. He will be based in North Dakota, and may be contacted at brad@moleaer.com. Rate for one year: £355 or US$550. Subscribe and renew online at: www.desalination.com/wdr. Reproduction or electronic distribution is forbidden. Subscribers may circulate their copy on their immediate premises. To email or create additional copies for other office locations, contact Jake Gomme (jg@globalwaterintel.com) to arrange a site license. Exhibit G Desalination plant brings relief to Ensenada residents struggling with limited water supply Ensenada's new desalination plant produces 5.7 million gallons a day for residences of the port city. (CESPE) Sandra DibbleContact Reporter Baja California’s first utility-scale desalination plant has launched operations, supplying 5.7 million gallons a day of converted seawater to municipal water users in the port of Ensenada. The reverse-osmosis facility, which has the capacity to double in size, is seen as a critical piece of infrastructure for Ensenada, whose 390,000 residents have been almost entirely dependent on aquifers for their water supply. Ricardo Cisneros, head of the Baja California Water Commission, a state planning agency, said the plant began operations on July 4 and this week began working at full capacity. The $55.81 million plant has been years in the planning. Of the state’s five municipalities, Ensenada is the only one that does not rely heavily on the Colorado River for its water supply. With the new plant, authorities say they have ended the rationing plan that affected large portions of the city. “This resolves the issue of water shortages, and it even gives us a little bit extra for growth,” said Jorge Eduardo Cortés, head of the city’s Business Coordinating Council. “But we think we are going to be needing more water in order to develop.” The state contracted with a Spanish company, GS Inima Environment, to build the plant and operate it for 20 years. More than half of the project’s cost was financed through a North American Development Bank loan, with the remainder paid for through a Mexican federal government grant and equity contributions from GS Inima. By the end of next month, construction of a second desalination plant in San Quintin is scheduled to get underway, said Cisneros, director of the Baja California Water Commission. The plant is of similar size and design to the Ensenada plant, and being built in a public-private partnership agreement with the state of Baja California. The plant was designed to provide drinking water to residents of this sprawling agricultural area south of Ensenada. The North American Development Bank provided a $36.6 million loan for up to 75 percent of the cost of designing, building and starting up the plant. The developers are New York-based RWL Water LLC and two Mexican partners, Libra Ingenieros Civiles and R.J. Ingeniería. sandra.dibble@sduniontribune.com @sandradibble Exhibit H Desaladora de Rosarito, el agua todavía más cara Foto: Cristian Torres Edición Impresa Rosario Mosso Castro Lunes, 1 Octubre, 2018 01:00 PM Twittear -z +Z Una demanda al interior de la constructora, y la lentitud en la tramitación de permisos, retrasan el inicio de las obras de la desaladora de Rosarito, empresa favorecida con la licitación anunció que realizará una “actualización” de gastos, que los funcionarios estatales asumen, superará los 9 mil millones de pesos aprobados, por lo que el nuevo presupuesto deberá ser rechazado o aprobado por el Congreso. Mientras especialistas en temas de agua insisten en la construcción de una desaladora, más económica y adecuada a las necesidades de la Zona Costa, y reiteran la urgencia de la búsqueda de otras fuentes del líquido El proyecto de la desaladora más grande de América Latina, que en medio del rechazo social fue aprobada por doce legisladores del Partido Acción Nacional y uno del Partido de la Revolución Democrática (PRD) – 13 de los 25 diputados del Congreso local- el 1 de diciembre de 2017, con un costo de 76 mil 460 millones de pesos, que empeña el presupuesto de los bajacalifornianos por 37 años, será más cara. La empresa aún hace cuentas, pero como el techo financiero requerido será mayor al recurso aprobado el año pasado, el tema podrá regresar al Congreso para un nuevo debate. “Ahorita se encuentra en un proceso de revisión, sobre un análisis financiero, dado que el proyecto se ha retrasado por cuestiones de tramitología. El llevar a cabo todos los permisos a nivel federal, del Estado y municipales, se han desfasado precisamente por el monto de la inversión a ejecutar, y si agregamos que la administración federal también está en un proceso de cambio, pues esto fue aletargando el proceso”, justificó el director de la Comisión Estatal del Agua, arquitecto Ricardo Cisneros, durante la glosa del V Informe de Gobierno de Francisco Vega de Lamadrid, respecto al estatus actual del proyecto. “Han tenido diferencias en los costos iniciales de su cotización, quedaron de presentar una adecuación, en términos de la tasa de interés que en aquel entonces estaba en 3 por ciento y ahora está cerca de 8% y algo, el tipo de cambio que en aquel entonces era de 11 pesos, ahorita es cercano a 20, igual en el caso de muchos otros costos y controles que se operan en un combinado de capital europeo en euros, pesos y dólares” completó el secretario de Planeación y Finanzas, Bladimiro Hernández. “La empresa argumenta una serie de modificaciones que tienen que ver con el hecho que nos tardáramos tanto años de que ya estuvieran en posibilidad de iniciar”, reiteró Hernández, lo que no mencionaron los funcionarios, fue que el retraso de la obra, en la que el gobernador Francisco Vega de Lamadrid colocó la primera piedra el 24 de marzo de 2018, también es atribuible a la empresa cuyos socios han tenido enfrentamientos legales desde 2013, los cuales terminaron en una demanda por operaciones fraudulentas que se lleva en Juzgados de Estados Unidos y México, este última con el expediente 00074/2018 en el Juzgado Décimo Civil, en el cual se dictaminó “embargo del predio de la desalinizadora y la suspensión de toda actividad comercial de las empresas involucradas” el 23 de marzo del presente año. En cuanto a la diferencia del tipo de cambio, de acuerdo a los trámites llevados oficialmente, no es de 11 a 20 pesos por dólar. El contrato con la Asociación Público Privada del consorcio conformado por las empresas N.S.C. AGUA, SA de CV; Nuwater, SAPI de CV; además de Degremont, se firmó el 22 de agosto de 2016, en ese período el dólar interbancario estaba a 18.44 pesos, y el día de hoy se cotiza en 19.06 pesos. La licitación se publicó en noviembre de 2015 con el tipo de cambio a 16.71 pesos por dólar. “Nosotros pensamos que esa situación era muy difícil de resolver para el Comité y para el Ejecutivo, porque si rebasaba el techo que ustedes aprobaron como contraprestación iba a ser imposible que nosotros pudiéramos continuar”, detalló el secretario Hernández, antes de exponer que esta situación, generaría la necesidad de regresar con el proyecto al Congreso. EL TEMA DEL AGUA PARA LA SIGUIENTE ADMINISTRACIÓN Y MÁS COSTOSO “Los tandeos y fallas de agua, el problema binacional de contaminación, deben encender focos rojos. Pero en el tema del agua, al gobernador Francisco Vega se le acabó el tiempo, se le cayeron la Ley estatal, el aumento de tarifas, la metropolización, la potabilizadora de Tecate; se le fueron mil millones de dólares de la empresa Constellation (Brands)”, manifestó el vicepresidente del Sector Agua y Saneamiento de la Construcción delegación Tijuana (CMIC), ingeniero Manuel Becerra Lizardi. Foto: Archivo.- Diputado Miguel Osuna Millán Coincidió el diputado local, doctor Miguel Osuna Millán, al referir lo expuesto por los funcionarios en la glosa: “Ellos, no hablan de cancelar, sino de replantear ante el Congreso, lo que equivale, creo yo, a dejar el tema a la siguiente administración. Este proyecto, creo yo, ya se desplomó”. Si insisten en el proyecto de una megadesaladora, “dadas las condiciones, es impresentable un replanteamiento con mayores costos, cuando la mayor debilidad y donde más lo debatimos fue en esa sobre dimensión exagerada en lo técnico y económico, la cual debemos recordar, rebasaba muchísimo las necesidades de la gente a través del tiempo”, recordó el legislador, quien desde la aprobación del proyecto ha apoyado el tema de la desaladora, pero una de menor tamaño y costo, advirtiendo del encarecimiento del servicio, al sustituir el agua del acueducto del Rio Colorado que, aseguró, tiene un costo de 9 pesos por metro cúbico, con agua de mar, que costaría 16 o 20 pesos por metro cúbico. El coordinador de la fracción panista que aprobó el controvertido proyecto, Ignacio García Dworak, señaló que ellos esperan que el documento con la actualización mencionada por los funcionarios sea remitido, para ser analizado en sesión de Comisión, las cuales recordó que son públicas y trasmitidas por internet. “No sabemos en qué términos vendría y no debemos especular, pero al final se deberá aprobar o rechazar en el pleno”. — ¿El Congreso la puede rechazar, existen penalidades? “Sí se puede rechazar y sí deben existir penalidades imputables al Estado”. — ¿Qué pasa si la empresa también tiene responsabilidad en el retraso, que ahora resulta en la actualización de costos? “Por eso reitero: debemos esperar a recibir la información para saber en qué sentido viene”. LA DESALADORA, PERO MODULAR En medio de los obstáculos para el inicio de obra, frente al replanteamiento económico, ingenieros especialistas, ex funcionarios en el área de agua y saneamiento, al igual que diputados, comparten el planteamiento de la necesidad de una desaladora. Pero, se oponen al ambicioso plan del gobierno de Baja California, de entregar, bajo la administración de Francisco Vega Lamadrid, el contrato para la planta desalinizadora más grande en el Hemisferio Oeste; reiteran el argumento de que la grandiosidad no corresponde ni a las necesidades de la población, ni a la realidad económica del Estado, cuyos próximos presupuestos quedarían empeñados. El proyecto cuyo costo se va a reevaluar, consiste en “el diseño, construcción y operación de una planta desaladora con capacidad de producción de 2 mil 200 litros por segundo (lps) o 50 millones de galones diarios (mgd) de agua en Playas de Rosarito, Baja California; incluye la construcción y operación de un acueducto de dos tuberías de 29 kilómetros de longitud, con un diámetro de 42 pulgadas, para transportar el caudal de la desaladora a los tanques de almacenamiento ‘El Florido’ y al Tanque 3, ambos ubicados en Tijuana, y a ampliar la capacidad del Tanque de almacenamiento ‘3’ de 10,000 a 20,000 metros cúbicos (2,642 a 5,284 galones) de agua. El Costo planteado, dependiendo del portal oficial que se consulte es de 463,100,000 millones o 493,091,428,millones de dólares, aproximadamente 9 mil 072,882,279 millones de pesos”, y en estos precios, el valor de intercambio corresponde a razón de 18 pesos por dólar”. La empresa favorecida con la licitación recibirá 76 mil millones de pesos en 444 mensualidades durante 37 años, el siguiente bienio, y cinco sexenios. En contraparte, especialistas de la CMIC y de Compañías Mexicanas de la Industria de la Construcción (Comice), insisten en considerar y aprovechar que las desaladoras presentan ventajas, que pueden desarrollarse como proyectos modulares, conforme a las necesidades de la comunidad. Advierten del exceso al invertir en una planta que produce 2 mil 200 litros por segundo, cuando este tipo de proyectos ofrece la posibilidad de empezar con una desaladora que genere 250 litros por segundo, que aseguran, es un poco más de lo que se requiere para completar el agua que recibe la zona costa del acueducto Río Colorado. Esto, de acuerdo a análisis presentados por integrantes de la cámara de la construcción al gobierno, basados en cifras oficiales. “Con la capacidad de crear módulos sucesivos coincidentes en el tiempo y la necesidad en expansión de una mayor población”, reiteró el doctor Osuna. Consultado respecto a los costos de una planta modular, como la requerida de acuerdo a las necesidades actuales, el vicepresidente del Sector Agua y Saneamiento de la CMIC, ingeniero Manuel Becerra Lizardi, explicó que se tendrían que revisar especificaciones, pero en términos generales. “Una desaladora de 250 millones de litros por segundo, costaría 25 millones de dólares, y una un poco más grande, de 500 millones litros por segundo, tendría un costo aproximado de 50 millones de dólares”, lo que reduciría el costo de 9 mil millones de pesos, a 900 millones de pesos. También advirtió que es un error pretender que la nueva desaladora sea la única solución o alternativa a los problemas de abastecimiento y sequía, como se hizo al concluir el acueducto. Recordó que en aquel momento, en lugar de tener visión de largo plazo y modernizar la desaladora de la planta termoeléctrica “Benito Juárez” en Rosarito Baja California, que producía 328 litros por segundo -activa desde 1969- , la cerraron. Y ahora pretenden reactivarla dentro del macro proyecto de la APP favorecida. “No hay por qué cerrar el acueducto, se trata de tener varias opciones, varias fuentes”. EL REÚSO Osuna, Becerra y el senador Ernesto Ruffo, coincidieron en la urgencia de revisar, generar, promover y aprobar proyectos, para la búsqueda de otras fuentes de agua, y los tres destacaron el reúso de agua porque es más barato Reiteraron que el 80% del agua que llega del Río Colorado se destina a los campos agrícolas en los cuales se pierde el 60% del líquido porque riegan por inundación. “Por falta de inversión en infraestructura adecuada en los campos agrícolas del Valle de Mexicali”, destacó Osuna. “Se debe trabajar en el reúso de aguas negras, conducirla, se puede almacenar en presas o recargando los acuíferos, para después potabilizarla, Las aguas negras de Tijuana y sus lodos son una bomba de tiempo” comentó Becerra en referencia conflicto binacional, por la contaminación del agua de San Diego, California. “Es necesario mejorar la gestión en lo general, para lograr los nuevos proyectos y mejorar la operación de los sistemas, tanto de agua, como de aguas negras, para evitar lo que actualmente está sucediendo. Pero que se transparenten las licitaciones”, exhortó. El 95% del agua tratada se tira al mar, “ahora se enviará al valle de Ensenada, pero sólo un pequeño porcentaje. Hay mucha agua a disposición para sanear que se está desperdiciando”, recalcó el ingeniero. Como ejemplo plantearon el proyecto Pure Water San Diego, que “… reciclará hasta 83 millones de galones de aguas residuales por día y proporcionará un tercio del suministro de agua al condado a más tardar en 2035. La primera fase programada para abrir de 2021, expandiría la capacidad de producción de agua potable de la ciudad en 30 millones de galones, con una inversión inicial de 52 millones de dólares”, informó el gobierno sandieguino. SUBSIDIO PARA EL ACUEDUCTO El senador Ernesto Ruffo reiteró la necesidad de que los legisladores federales por Baja California, tanto salientes como entrantes, así como el Gobierno del Estado, conversen, tramiten y negocien con el gabinete del Presidente electo, Andrés Manuel López Obrador, para lograr un subsidio. “El gobierno estatal y los bajacalifornianos pagan por cada minuto de bombeo de agua del acueducto, mientras en Ciudad de México, todo el gasto de bombeo es subsidiado por el Gobierno Federal; en el caso de nuestro estado, si nos subsidiaran sólo el pago de las horas pico, esas en las que actualmente se apaga la planta, significaría un apoyo real y mejoraría el servicio de agua potable a la Zona Costa”, argumentó el panista. Cada una de estas propuestas ha sido presentada a las autoridades locales, sin que a la fecha haya habido respuesta, por lo que será necesario esperar a la elaboración y presentación de los presupuestos del próximo año, para saber si Francisco Vega de Lamadrid rescata alguno de los proyectos para combatir el desabasto, o si el tema del agua, definitivamente, se le va de las manos. Corte de agua por cinco días afectará a más de 600 mil residentes de Tijuana y Playas de Rosarito Por un máximo de cinco días, alrededor de 600 mil personas residentes de 400 colonias de Tijuana y Playas de Rosarito se verán afectadas con la suspensión de suministro de agua, luego que la Comisión Estatal de Servicios Públicos de Tijuana (CESPT) anunciara que el próximo martes 2 de octubre, ejecutará trabajos de conexiones del Acueducto Florido-Aguaje. El director de CESPT, Germán Lizola Márquez, señaló que la obra consiste en una conexión de tubería de un tramo de 500 metros, para lo cual fue necesaria la inversión de 20 millones de pesos; con ello se eliminará la reincidencia de fugas en un tramo del acueducto. El arquitecto Lizola agregó que en diciembre de 2017, la paraestatal llevó a cabo la primera fase de la obra, que consistió en la reubicación de 500 metros de tubería de 54 pulgadas de diámetro, con lo cual se aprovechó para renivelar el acueducto, ya que se encontraba a ocho metros de profundidad, dejándolo a tres metros, lo que facilitará la reparación de fugas en caso de presentarse. La segunda fase consistió en reubicar 120 metros de tubería y la construcción de una caja de válvulas, labores que concluyeron hace tres meses. “Parte de la obra finalizó en junio, pero se esperó a que pasara la intensidad del calor para poder realizar la conclusión del trabajo. Ya se cuenta con el personal y las piezas necesarias para realizar la obra, pero cerrar el acueducto provocará que se suspenda el agua en 400 colonias, afectará a gran parte de la ciudad de Tijuana y Playas de Rosarito. Esta obra es necesaria porque el acueducto era de concreto y viejo, y se sustituyó por un hierro dúctil. “El día 2 de octubre se cerrará la llave de paso del acueducto de 52 pulgadas y va a tardar 24 horas en dejar sin agua a los residentes, habrá agua en el transcurso del martes, pero en la tarde-noche comenzará a bajar la presión hasta vaciarse. El personal va a empezar a trabajar desde el martes por la noche, los trabajos durarán un día y medio. Al terminar la obra empezaremos a hacer la conexión para que se vuelva a llenar el acueducto, para poder restablecer el servicio tardará otro día y medio; primero llegará el agua a las partes bajas de la ciudad y después a las altas”, detalló el funcionario. Dicho lapso se aprovechará para completar 14 acciones que mejorarán la operación en el sistema hidráulico de la ciudad, tales como la reposición de válvulas, mantenimiento a macro-medidores de gasto y la reposición del colector poniente, ya que al no haber aportación de flujo de agua, se facilita trabajar en dicho colector. El corte de agua afectará a asentamientos de las delegaciones Sánchez Taboada, San Antonio de los Buenos, Playas de Tijuana, La Mesa, Centro y Playas de Rosarito. Para consultar la lista de colonias, ingresar a las distintas redes sociales o a la página oficial de la CESPT (www.cespt.com). Page 3 of 6WATER DESALINATION REPORT – 7 January 2019 it didn’t rain [12, 45, 47]. But in September, it was announced that Western Australia’s Water Corporation was considering a third SWRO project to serve Perth [35]. Company News AquaVenture, Seven Seas’ parent company, entered into a binding agreement with Abengoa Water to purchase a majority interest in its Teshie-Nungua SWRO plant in Accra, Ghana [7]. Although it simultaneously announced that it would acquire a small SWRO project in the Bahamas, it later terminated that agreement [43]. Meanwhile, it began to speculatively develop an SWRO project in Corpus Christi, Texas [31]. Water Planet spun off PolyCera Membrane, its MF/UF membrane product group [7] as well as its IntelliFlux Controls group [12]. PolyCera soon announced the com- pletion of a series A funding round led by Kairos Ventures [23]. Berghof Membrane Technology signed a joint development agreement with Aquaporin A/S [19], and Germany’s Mann+Hummel Group, the parent company of Microdyn-Nadir, further increased its membrane offering in 2018 by beginning the year with the acquisition of Oltremare, a custom membrane and design house [2]. This was followed by the introduction of Cera-Dur, a ceramic membrane product by Mann+Hummel’s i2m [10], and the opening of Microdyn-Nadir’s new MBR membrane module manufacturing plant in Austin, Texas [19]. Meanwhile, in Conroe (Houston), Texas, Memstar USA held the grand opening of its new RO/NF membrane manufacturing plant. Germany’s Lanxess entered into a cooperation agreement with France’s Polymem [25], and Singapore’s NanoSun announced the completion of a 3D MF/UF membrane printing and module assembly facility [26]. Gradiant Corporation expanded its operations by establishing a partnership with a Hong Kong textile company and launching a membrane group [3]. The company established its first overseas division in India [14] and commissioned its first FGD wastewater treatment system in China on the same day it announced that it had established a new business division in China [22]. The company also sought a demonstration site for its new Counterflow RO (CFRO) brine concentration technology [18] and launched a new R&D center in Singapore [25]. Cape Town Postpones Day Zero As advertising campaigns go, it was a huge success. People around the world knew of the looming threat facing Cape Town, South Africa, on Day Zero, if its dam levels were to drop to 13.5 percent. Projected to occur on 21 April, plans were put in place to set up water collection points where residents could come to collect buckets of their daily ration [3]. A reduction in water consumption pushed the date out a few weeks and plans were made to install containerized SWRO to provide additional relief [6], while some skeptics called the whole idea a con [7]. By mid-year, the city had installed three temporary SWRO units and began making plans for a larger, more permanent facility, even as much needed winter rains provided some respite [22]. On the last day of 2018, Cape Town’s dam levels stood at 65.7 percent. Other Desal Project News Consolidated Water’s (CWCO) plan to build a large-scale SWRO plant in Rosarito, Mexico, continued to develop, albeit more slowly than expected, last year [10]. In March, with financial closing still ‘months away’, the Baja California state government held a groundbreaking ceremony for the project [13], but the year came to an end with no closure announced. However, 225km south of Rosarito, Fluence Corporation achieved financial close of its San Quintin project [14], which will be the first SWRO delivered under the state’s new public-private partnership legislation. There’s always a glut of desal- and reuse-related news originating from Singapore during even-numbered years when it hosts the biennial Singapore International Water Week (SIWW), and 2018 was no exception. One of SIWW’s most popular sessions was the PUB and National Environmental Agency’s introduction of the world’s first large-scale, fully integrated water and solid waste treatment plant to be planned and constructed from the ground up [27]. During the SIWW, the PUB also opened its Tuas Desalination Plant, the country’s third large-scale SWRO, which includes one demo train showcasing Evoqua’s Nexed EDR technology. Two more SWRO projects—Marina East and Jurong Island—are now under development. Most of the desal project news from Australia during 2018 concerned dam levels and the possibility that some (or all) of the country’s mothballed desal plants could be re-activated if Exhibit J Bonilla y Bonfante siguen reuniéndose para abordar temas sobre agua Compartir: Tijuana, Baja California, enero 4.- El delegado federal en Baja California, Jaime Bonilla y Carlo Bonfante, encargado de la Secretaría de Desarrollo Económico (SEDECO), siguen reuniéndose para tocar temas referentes al agua. En ese sentido, ambos estuvieron con Germán Lizola, director de la Comisiones Estatal de Servicios Públicos de Tijuana que para ver los servicios para los residentes de Valle de las Palmas. A través de sus redes sociales, Bonilla dijo que “sobre el problema de la falta de servicios de agua, drenaje y energía eléctrica en la zona de Valle de las Palmas, el día de ayer me reuní con Carlo Bonfante, director CESPT, Germán Lizola, así como representantes de la CFE en Tijuana y líderes sociales de la localidad para dar solución a la problemática”. Sin embargo, llama la atención que Bonilla y Bonfante nuevamente aparezcan abordando temas del agua, luego de que se documentará que ellos fueron de los principales promotores para la venta del líquido (a través de la desalinizadora de Rosarito) a Estados Unidos, tal como se documentará en las Minutas del Distrito de Agua de Otaya en San Diego, California. NOTA: Aquí dejamos las ligas de las notas referentes a las negociaciones de la venta de agua de Bonilla y Bonfante. Bonfante encabeza la negociación para vender agua a EE.UU. Compartir: Por Francisco Domínguez Una minuta del Distrito de Agua de Otay en San Diego exhibió a Carlo Bonfante, encargado de la Secretaría de Desarrollo Económico (SEDECO) de Baja California como el principal operador de Kiko Vega para la venta agua a Estados Unidos. En un reportaje de Newsweek descobija al empleado de gobierno al presentarle la minuta por lo que no le quedo de otra a Bonfante que aceptar que existen negociaciones con el director general del Distrito de Agua Otay, Mark Robak. A continuación dejamos un fragmento de la información del medio: “El Gerente General continuó reuniéndose con Carlo Bonfante, Secretario de Desarrollo Económico de Baja California, como persona clave para el gobernador de Baja California en el proyecto de desalinización. Las conversaciones se han enfocado en entregas directas e indirectas, vía el Río Colorado; otros temas han sido el precio y los requerimientos de calidad del agua”, dice una minuta del Distrito de Agua de Otay fechada en octubre de 2015. Carlo Bonfante primero negó ser parte de estas negociaciones, pero cuando se le mostró el documento oficial en entrevista, reculó. —¿Qué le respondieron a esa petición?, se le pregunta después de que este reportero le leyó el documento en voz alta. —Que no teníamos condiciones de tener agua excedente. Que no teníamos una excedencia de agua que pudiéramos en un momento dado fijar para solucionar problema de San Diego. Ellos nos respondieron que ya tenían un abasto suficiente con [la planta desalinizadora de] Carlsbad. Pero en el lado norteamericano, los planes para comprar el agua de México no se han detenido. En mayo de este año, el Departamento de Estado otorgó el permiso presidencial que abre las puertas al Distrito de Agua de Otay para “construir, conectar, operar y mantener instalaciones de tubería transfronteriza para la importación de agua desalinizada”, especifica el permiso firmado por el presidente Donald Trump. De manera tentativa, se habla de que si todo avanza conforme al plan, la construcción iniciaría en 2022. La entidad estima que la planta de Rosarito podría proveer hasta dos terceras partes de la demanda de agua en su jurisdicción para 2024. El Distrito de Agua de Otay anticipa que para 2050, tendrá unos 308 mil usuarios. Para poner en contexto, la CESPT tiene actualmente 630 mil cuentas de agua en Tijuana y Rosarito. El entendido de Otay es que ellos formarían parte del proyecto hasta su segunda fase en 2024, tiempo en el que cree, la planta podría entregar 50 millones de galones diarios adicionales, de los cuales “entre un 10 y 30%” estarían disponible para el Distrito. Una minuta del Distrito de Agua de Otay en San Diego exhibió a Carlo Bonfante, encargado de la Secretaría de Desarrollo Económico (SEDECO) de Baja California como el principal operador de Kiko Vega para la venta agua a Estados Unidos. En un reportaje de Newsweek descobija al empleado de gobierno al presentarle la minuta por lo que no le quedo de otra a Bonfante que aceptar que existen negociaciones con el director general del Distrito de Agua Otay, Mark Robak. A continuación dejamos un fragmento de la información del medio: “El Gerente General continuó reuniéndose con Carlo Bonfante, Secretario de Desarrollo Económico de Baja California, como persona clave para el gobernador de Baja California en el proyecto de desalinización. Las conversaciones se han enfocado en entregas directas e indirectas, vía el Río Colorado; otros temas han sido el precio y los requerimientos de calidad del agua”, dice una minuta del Distrito de Agua de Otay fechada en octubre de 2015. Carlo Bonfante primero negó ser parte de estas negociaciones, pero cuando se le mostró el documento oficial en entrevista, reculó. —¿Qué le respondieron a esa petición?, se le pregunta después de que este reportero le leyó el documento en voz alta. —Que no teníamos condiciones de tener agua excedente. Que no teníamos una excedencia de agua que pudiéramos en un momento dado fijar para solucionar problema de San Diego. Ellos nos respondieron que ya tenían un abasto suficiente con [la planta desalinizadora de] Carlsbad. Pero en el lado norteamericano, los planes para comprar el agua de México no se han detenido. En mayo de este año, el Departamento de Estado otorgó el permiso presidencial que abre las puertas al Distrito de Agua de Otay para “construir, conectar, operar y mantener instalaciones de tubería transfronteriza para la importación de agua desalinizada”, especifica el permiso firmado por el presidente Donald Trump. De manera tentativa, se habla de que si todo avanza conforme al plan, la construcción iniciaría en 2022. La entidad estima que la planta de Rosarito podría proveer hasta dos terceras partes de la demanda de agua en su jurisdicción para 2024. El Distrito de Agua de Otay anticipa que para 2050, tendrá unos 308 mil usuarios. Para poner en contexto, la CESPT tiene actualmente 630 mil cuentas de agua en Tijuana y Rosarito. El entendido de Otay es que ellos formarían parte del proyecto hasta su segunda fase en 2024, tiempo en el que cree, la planta podría entregar 50 millones de galones diarios adicionales, de los cuales “entre un 10 y 30%” estarían disponible para el Distrito. http://monitoreconomico.org/noticias/2018/nov/20/bonilla-fue-parte-de-la-negociacion- de-la-venta-de-agua-a-eeuu/#detalle http://monitoreconomico.org/noticias/2018/nov/23/contratos-de-eeuu-para-comprar- agua-a-bc-vinculados-a-bonilla/#detalle http://monitoreconomico.org/noticias/2017/oct/26/bonfante-encabeza-la-negociacion- para-vender-agua-a-eeuu/#detalle Water Desalination ReporT Volume 55, Number 2 The international weekly for desalination and advanced water treatment since 1965 14 January 2019 MexicoRosarito SWRO status: Mañana In 2016, the Congress of the Mexican state of Baja California passed Decreto (Decree) #57, which authorized state agencies to invite banks to tender to provide guarantee mechanisms for payments under the public-private partnership projects governed by the country’s Asociaciones Público Privadas (APP) legislation. In December 2017, amendments were added to Decreto #168 to comply with changes to the Financial Discipline law. The guarantees provided in Decretos #57 and #168 are necessary for projects like Consolidated Water Company’s (CWCO) 100 MGD (378,000 m3/d) Rosarito SWRO project to be bankable. However, by the close of 2018, the state did not complete the legally mandated tender process to have banks provide the necessary guarantees, and the Congressional authorization expired. Apparently, the state planned to simply extend the 31 December deadline, but this may have been deemed non-compliant with the Federal financial discipline laws. CWCO said that state officials have informed them that they will now seek another amendment of Decreto #57 to extend the authorization of the credit agreement to enable the project to proceed to financial close. CWCO and its partners, Greenfield SPV VII and Suez, have extended the deadline for the conditions of the February 2018 share subscription agreement to 30 June 2019. It is not clear if this means that the partners believe financial close would be achieved by this self-imposed deadline, or if they would extend it further, if necessary. In August 2016, the two-phase project was awarded in Mexican pesos with a phase one tariff of $0.82/m3 ($3.10/ kgal) and a phase two build-out tariff of $0.72/m3 ($2.73/ kgal). The bid prices are understood to be index-linked, and the foreign exchange risk is borne by the Mexican off-taker. The first phase of the project is scheduled to begin commercial operation within 36 months from the date of financial close. CaliforniaIntake/discharge criteria to be revised California’s Water Code gives the State Water Resources Control Board (Water Board) the responsibility of protecting its ocean water quality by controlling waste discharges and the intake of seawater. It also requires that the California Ocean Plan be reviewed every three years to guarantee that the current standards are adequate and not allowing marine species degradation or posing a public health threat. The plan was last amended to address desalination facility intakes and brine discharges in May 2015, and went into effect in January 2016. In the first week of this year, the Water Board issued a draft list of 17 new projects for the 2019 Triennial Review that was intended to be a starting point for discussions with other governmental and non- governmental organizations, environmental justice groups, industry representatives and the general public. One of the projects is to “Revise the Desalination Amendment Implementation Provisions to provide more specificity about the required analyses and considerations, clarifying definitions in the Ocean Plan and other changes”, which is proposed to clarify and streamline the permitting process for Water Board staff and project applicants. The previous 21-page amendment focused almost entirely on desalination, and included the following stipulations: • Subsurface seawater intakes are required, and only after they are found infeasible, can a screened intake, with a 1mm slot opening be considered, and it will only receive a one percent entrainment reduction ‘credit’. • An Empirical Transport Model (ETM) or Area of Production Foregone (APF) approach must be used to estimate entrainment and restoration acreage. • Discharge salinity concentrations cannot exceed the natural background salinity by more than 2.0 ppt beyond a 100m dilution zone. • Construction and agency coordination issues were also addressed. Tom Pankratz, Editor, P.O. Box 75064, Houston, Texas 77234-5064 USA Telephone: +1-281-857-6571, www.desalination.com/wdr, email: tp@globalwaterintel.com © 2019 Media Analytics. Published in cooperation with Global Water Intelligence. Page 2 and then into Gaza, took six weeks longer than expected, which threatened to delay the commissioning beyond its 150-day schedule. While the plant is usually powered by electricity from the local grid, the facility is equipped with 2X100 percent generators, which require 250 L/hr (1.1 gpm) of diesel fuel, to ensure continuous operation during the frequent, and sometimes extended, power outages. David McMillan, SafBon’s senior field service manager, spent the last six months onsite. He told WDR that the system had been shop assembled and tested prior to shipment, noting, “You can’t go to an electrical supply store, or a local hardware store to find the parts you may need, so we were glad that to know that all of our equipment was properly fabricated, to minimize our work in the field. “However, the final commissioning still proved to be a challenge, especially the interfaces where our system was to be connected to existing equipment and infrastructure. As we were nearing the end of the project, we had to work overtime to complete almost 12 weeks of work in the final two weeks.” WATER DESALINATION REPORT – 1 April 2019 Günseli Mendi, the company’s business development specialist, told WDR that Hyrec would also work with its clients to source a crystallizer to follow its OARO technology to achieve zero liquid discharge (ZLD). Mexico Congress approves project guarantees Last Thursday, the Plenary Congress of the Mexican State of Baja California approved a decree to restructure its external debt. The approval is understood to have also included the ratification of an updated budget, The action was necessary to establish the necessary project financial guarantees, which should allow Consolidated Water Company’s (CWCO) 100 MGD (378,500 m3/d) Rosarito Seawater Desalination project to move towards financial closure. CWCO CEO Rick McTaggart told WDR that the final decree has to be received and reviewed before he makes any comments. TechnologyProcess defies Laws of Thermodynamics According to its inventor, a new desal process has been developed that has “successfully uncoupled the relationship between energy consumption and recovery”. Associate Professor Fayyez Neebla, from Djibouti Junior College in Djibouti, Djibouti, told WDR, “Our new desalinization process means that it will be possible to separate salt from seawater at a specific energy consumption of less than 0.85 kWh/m3 (3.22 kWh/kgal) with virtually no brine production. In fact, we believe with this technique that it will be possible to achieve ZLD [zero liquid discharge] of brine without paying any energy penalty.” Dr Neebla admits that the work has only been attempted at laboratory scale in a batch mode, but he is confident that it is scalable and could be operated on a continuous basis. Taking a cue from the Hydrologic cycle, he said the idea came to him serendipitously. “I was working with other conventional desalinization processes and attempting to separate salt from a 2.5 percent sodium chloride solution, when I spilled some of the feedwater on the floor. It was late, so I decided to wait until the following day to clean it up. However, in the morning, the water was gone and all that remained was a dusting of a whitish powder where the water had been. We analyzed the powder using mass spectrometry and confirmed that it was pure sodium chloride.” Based on a graduate student’s calculations, Neebla said that the only energy required to achieve ZLD would be that Company NewsBrine technology firm signs MoU with KSA Hyrec Technologies, a Cayman Islands-based supplier of brine concentration technology, has announced that it has signed a Memorandum of Understanding with Saudi Arabia’s Saline Water Conversion Corporation (SWCC) under which Hyrec will deploy its Osmotically Assisted Reverse Osmosis (OARO) technology to concentrate SWRO brine. Hyrec’s patented OARO process is a variation of the RO process in which a dilute saline solution is introduced on the product side of a membrane to reduce the osmotic pressure differential, and lower the required feed pressure. Brine is then cascaded through multiple stages, concentrating the solution to near saturation levels, while producing a low- TDS product water stream. Produced Water Middle East – Oman Partnering with Petroleum Development Oman (PDO)—the Sultan-ates’s leading oil and gas exploration and production company—the Produced Water Society (PWS) will bring the Produced Water Middle East conference to Muscat, Oman, on 23-24 October. Over 200 produced water delegates are expected to take part in two days of technical presentations and networking to discuss the latest produced water management challenges and treatment techniques to catalyze change in the region. For more details, or to submit an abstract, visit www.producedwatermiddleeast.com. Exhibit L Exhibit M Reestructuración de deuda del Estado no la aumentará: subsecretario por: Uniradio Informa - 2 Abril 2019, 11:34 am Por: Octavio Fabela TIJUANA.- Una vez aprobada la reestructuración de la deuda del estado en el Congreso durante la semana pasada, el hecho causó revuelo y opiniones divididas que señalaban que con ello se alargaría el endeudamiento, por lo que el subsecretario de gobierno, Carlos Armando Reynoso Nuño decidió rechazar tales declaraciones. Explicó que esta reestructuración es una necesidad que obedece al hecho de un recurso faltante con el Gobierno Federal conocido como apoyo extraordinario en materia de educación, mismo que se va cubriendo año con año. "Ahorita estamos en esa situación, y esta reestructuración le va a ocasionar al estado un ahorro de 400 millones de pesos al año, lo cual va a traer como consecuencia que tengamos una disposición de flujo de dinero para poder solventar ampliamente las necesidades que se nos presenten", aclaró. Además de esta reestructuración, comentó que se aprobaron dos dictámenes en beneficio de la ciudadanía; uno para el conocido segundo piso de Tijuana, y el otro para la desaladora en Rosarito. El subsecretario manifestó su inconformidad por algunos personajes políticos (cuyos nombres no fueron mencionados), por intentar utilizar como discurso de campaña el caos a raíz de estas aprobaciones, las cuales calificó de "falsas", y reiteró que el estado únicamente fungirá como garante de la Comisión Estatal del Agua (CEA) en caso de incumplir con el servicio del vital líquido, y de la Asociación Público Privada encargada del segundo piso de Tijuana, que en caso de no tener el flujo suficiente para pagar lo que le corresponde del crédito por la construcción, el estado también tendría que hacer presencia. "El tema del agua es un tema que ya el crecimiento de nuestra población requiere de una solución y no estar solamente circunscritos a los que es el hecho de tener el tubo que viene desde el Río Colorado. Es necesario que garanticemos el agua ya para lo que es este momento y a largo plazo", reiteró. Por otra parte, en el tema del segundo piso, insistió en que es necesario para el tránsito de Zona Río, ya que con eso dispersará parte de la circulación a otros puntos. Además, tanto la desaladora como el segundo piso serán obras autosustentables, ya que una obtendrá recurso de los pagos de recibo del agua, mientras que la otra a través de mínimas cuotas para su circulación, lo cual las convierte en planeaciones visionarias, a decir de Reynoso Nuño. Exhibit N Voice of San Diego Environment Report: For Long-Term Water Supply, U.S. Officials Look to Mexico Ry Rivard April 8, 2019 The Colorado River winds through the Grand Canyon. / Photo by Ry Rivard An increasing number of solutions to California and Arizona’s long-term water problems now involve Mexico. Some of the ideas are seemingly far-fetched, like a pipeline to bring water from the Gulf of California to the Salton Sea in Imperial County. Some are already happening, like Mexico agreeing to reduce its water use in the event of a Colorado River shortage. After decades of warnings, officials who rely on the Colorado River — which provides water to 40 million Americans and Mexicans — have begun to reckon with the long-known fact that cities and farms are expecting to receive more water from the river than the river usually holds. That reckoning, combined with a two-decade drought that only made matters worse, is forcing U.S. officials to begin talking about major binational water projects. That means working with Mexico on critical infrastructure — infrastructure that isn’t a wall to keep the countries apart but rather pipelines or deals that would bind them closer together. That stands in contrast not only to recent threats by President Donald Trump to shut down the border but some existing water projects. The haughtily named All-American Canal, for instance, was designed to deliver water from the Colorado River to Imperial without crossing into Mexico. Right now, the Mexican government is, on paper, more prepared to deal with a shortage on the Colorado River than the United States. In fall 2017, Mexico agreed to a new river-sharing deal with the United States, provided that states in the U.S. could work out a similar deal among themselves. So far, after years of talk, several American states have agreed to a deal but have not yet signed one. They are now waiting on Congress. But that deal involves sharing water that already exists in the river. In the meantime, U.S. officials are eyeing new sources of water. Landlocked Arizona, for instance, has been looking to build an ocean water desalination plant in either California or Mexico. Chuck Cullom, a senior water official in Arizona, said the California option was dismissed after Arizona learned about the regulatory demands of the California Coastal Commission, which would need to bless any desalination plant. During a recent forum on Colorado River issues in Phoenix, Cullom said Arizona figured that California “would not be a safe place” once officials there learned more about the commission’s stringent regulations. So they’re turning to Mexico. This is not a new idea. The Otay Water District in southeast San Diego has long been trying to work with developers on a desalination plant in Rosarito, a beach town south of Tijuana. For now, though, the Otay part of the project is on hold. Arizona may not have to build a pipeline to Mexico to get water. It could help pay for the project in Mexico that would free up water that could be used in the United States. Others have been talking up a pipeline that would take water from the Gulf of California and sending it to farmers in Imperial County and to the Salton Sea, the lake in Imperial that’s shrinking because there’s less water running off farms. Pat Mulroy, the former head of Las Vegas’s water agency, has been talking about that idea, which would also involve building a desalination plant somewhere to make the salty water from the gulf usable. Jennifer Pitt, the Colorado River program director for the Audubon Society, said there would be so much salt it would take hundreds of train cars, or thousands of trucks, a day to remove the salt from Imperial County. Pitt is among those who argue that conservation is a better way to free up water than a pie-in-the-sky multibillion-dollar plan. But Mulroy argues the region needs a major new project to add water to a failing system and that going house to house and farm to farm across the West to conserve more water isn’t enough. “A million little nickel-and-dime projects won’t work,” she said. Disclosure: The nonprofit Lincoln Institute of Land Policy paid for my travel to the forum in Phoenix mentioned above. https://www.voiceofsandiego.org/topics/science-environment/environment-report-for-long-term- water-supply-u-s-officials-look-to-mexico/ Water Desalination ReporT Volume 55, Number 15 The international weekly for desalination and advanced water treatment since 1965 29 April 2019 California One permit approved, one remaining By a 6-4 vote, the Monterey County Planning Commission approved a development permit for CalAm’s Monterey Peninsula Water Supply Project (MPWSP). The project will contribute to an expected $57 hike in a typical monthly water bill, from a current $78 per month to about $135 per month, by the end of 2021. The $329 million project includes a 6.5 MGD (24,500 m3/d) SWRO plant, an aquifer storage and recovery (ASR) element and a water reuse/groundwater replenishment element. CalAm has said that project construction must begin by the end of September 2019 to meet the 31 December 2021 mandatory pumping reduction from the Carmel River. Without the alternative water supply project, the company says it would face other penalties, and its water customers would face water rationing. However, to begin construction, CalAm will also require a coastal development permit from the city of Marina. Its initial application was denied in March and is currently under appeal. The Marina City Council is scheduled to vote on that appeal tomorrow. If it is denied, as expected, Cal Am has said it will appeal to the state’s Coastal Commission. Company NewsMembrane supplier closes its doors At the end of day last Wednesday, Los Angeles-based PolyCera® Membranes closed its doors for what may be the last time. According to numerous sources familiar with the company, early last week, a prospective investor decided not to proceed with their planned investment, causing an insurmountable cash flow crisis, which sealed the company’s fate. At this time, WDR has not been able to confirm the company’s official “status”. In early 2013, Water Planet licensed a portfolio of nine patents from UCLA through its PolyCera LLC subsidiary, which was 99 percent owned by Water Planet, with the remaining one percent held by UCLA. The first commercial PolyCera membrane product was launched in late 2016, and in its first 12 months, the company booked over $800,000 in related orders. PolyCera Membranes was incorporated as a standalone entity in 2017 and raised $9 million in a Series A financing round in early 2018. Using its proprietary polymeric chemistry, the company developed two products: the Hydro UF drinking water membrane with sub-20nm pores, and the Titan UF industrial wastewater membrane with sub-5nm pores. Both membranes were offered in a proprietary Spiral Monolith® module that enables dead-end or cross-flow operation combined with hydraulic backwashing. The company’s membranes had reportedly been gaining market traction, but it was also clear that they could not overcome the problems resulting from the cancellation of the pending investment. Eric Hoek, the company’s founder and chairman, had returned to UCLA as a full-time, tenured professor late last year, and had not been involved in the day to day operations for some time. He recently resigned from the board, and told WDR that although he still believes in the technology, he is not involved in “whatever is next for the company.” WDR has learned that all of the company’s employees have been laid off, although Simon Marshall would only say that he could not disclose any information at this time. Neither would he offer any comment on the status of PolyCera’s intellectual property (IP). However, WDR understands that it is generally the case that university IP cannot be assigned to a third party without the university’s approval. More information on PolyCera’s status should be available in the coming weeks. MexicoLegislation allows SWRO project to proceed Consolidated Water Company (CWCO) has confirmed that the recent action taken by the Congress of the State of Baja California, Mexico, assures that the company’s Rosarito Seawater Desalination will continue to move ahead. NSC Tom Pankratz, Editor, P.O. Box 75064, Houston, Texas 77234-5064 USA Telephone: +1-281-857-6571, www.desalination.com/wdr, email: tp@globalwaterintel.com © 2019 Media Analytics. Published in cooperation with Global Water Intelligence. Exhibit O Page 2 Agua, CWCO’s Mexican subsidiary, is actually developing the 100 MGD (378,500 m3/d) SWRO project, for which Suez is serving as the EPC contractor. During the congressional session that ended last month, the State congress passed Decreto #335, which renewed fiscal authorizations to put in place various obligations that had expired on 31 December 2018, before the obligations could be put in place. The obligations include payment trusts, guaranties and bank credit lines that are obligations of the State under the public-private partnership agreement. With the Decreto’s approval, the State is re-authorized to put the payment guaranties in place, thereby completing key conditions precedent for financial close. WDR believes that it could take four to six months for the State to tender with banks and put in place the lines of credit, and the expediency of this process will play a significant role in determining when financial close can occur. CWCO CEO Rick McTaggart said, “We can now proceed [with] several important steps remaining before beginning the construction phase, including obtaining the remaining debt financing required for the project, and acquiring the remaining aqueduct right-of-ways.” CWCO has previously said that it will retain a minimum 25 percent equity position in the special purpose vehicle (SPV) that will own the asset, as well as a 50 percent stake in the operating company. Suez has the option to purchase 20 percent of the SPV. Company NewsMidstream company acquires water treater XRI Holdings, a Texas-based midstream water company, has acquired the water treatment and recycling division of Fountain Quail Energy Services. Fountain Quail is a leading produced water treatment, recycle and reuse business with operations throughout the Permian Basin and other key producing basins in the US. Fountain Quail was founded in 1996, and is based in Irving, Texas, in the center of the Dallas-Fort Worth Metroplex. The company developed a suite of produced water treatment technologies, including the Nomad, a skid-mounted 2,000 bbl/d oilfield evaporator, and the Mavrex, a trailer-mounted chlorine dioxide generation system. Members of the Fountain Quail Water Treatment senior leadership team will head the XRI’s water treatment division, which will be a wholly owned subsidiary of XRI operating under the Fountain Quail name. WATER DESALINATION REPORT – 29 April 2019 XRI CEO Matthew Gabriel said, “When paired with the natural, non-potable water sourced on our own water midstream systems in the Delaware and Midland Basins, it is now possible for our customers to reuse, blend or swap 100% of their produced water with our water to obtain water of virtually any specification.” Fountain Quail’s equity backer, CSL Capital Management, is expected to divest the company’s remaining water midstream assets in the Utica and Marcellus plays, which include 8 to 10 salt water disposal wells, via a separate sales process. WDR’s Quote of the Week: Overheard during a discussion on the minimum energy of separation at a recent desal conference: “If it’s possible to break the sound barrier, why can’t we break the laws of thermodynamics?” Intake TechnologyFish exclusion technology sought While there are exclusion methods for some fish species, advancements are needed to improve their efficiency, protect a wider fish size range and reduce the cost of operating, maintaining and constructing conventional fish exclusion methods. In order to seek new ideas to increase fish safety at water intakes and diversions, the Bureau of Reclamation has launched a prize competition. The competition encourages creative thinking and tech- nology innovation for a broad range of fish exclusion applications. Proposed solutions can include new ideas for addressing fish exclusion, or improvements to existing technologies. The competition requires only the submission of a white paper describing in detail—with illustrations, specifications, supporting data or literature—how the proposed solution can successfully exclude a certain species and size class of fish from a diversion or intake in a cost- effective manner. Reclamation, in collaboration with the Department of Energy’s Water Power Technologies Office, US Geological Survey, NOAA Fisheries, US Fish and Wildlife Service, US Army Corps of Engineers, the State of Washington Department of Fish and Wildlife, and Pacific Northwest National Laboratory, may award a total prize award pool of $75,000, with a minimum full award amount of $15,000. Reclamation can allocate higher individual award amounts up to the prize purse of $75,000. The Challenge award will be contingent upon results of critical analysis and evaluation by Reclamation and its judging panel. A total of up to five awards can be made for the highest ranked submissions. Exhibit O Exhibit P Desaladora de Rosarito colapsaría finanzas de ese municipio por: Uniradio Informa - 13 Mayo 2019, 08:30 am 19 Por: Sonia de Anda TIJUANA.- La desoladora de Playas de Rosarito es un proyecto que va a colapsar a la Comisión Estatal de Servicios Públicos de Tijuana (Cespt) como ocurrió en Ensenada, afirmó el presidente del Consejo Coordinador Empresarial de este municipio, Carlos Ibarra. Al sumarse al pronunciamiento del Consejo Coordinador Empresarial en el que promoverán un amparo en contra del decreto aprobado en el Congreso del estado el pasado 28 de marzo en el que se incluye el proyecto de la desaladora bajo el esquema de Asociación Publico Privada (APP) con una inversión del estado de 720 millones de pesos. Además, de mil 400 millones más que se requieren para que la planta desalinizadora pueda operar en condiciones normales, el empresario alerto que este tipo de deuda dejaría el nocaut técnico a la propia Cespt, pues requeriría incrementar los costos del agua . “Alrededor del 77.8% va a ser financiado a través de bancos y no se están buscando opciones para poder financiar esta parte, sólo el 22.2% sería financiado por el capital de la empresa, esto nos daría aproximadamente una deuda de 37 años que estuviéramos endeudados con esta obra, esto nos daría un precio promedio de 18.8% metro cúbico de agua que es un valor muy alto", expresó. Y agregó "esto nos sucede ya en Ensenada, desafortunadamente el valor del metro cúbico en Ensenada es este precio, no fue aceptado el incremento a CESPE, el cual ahorita está en una crisis, no tiene para pavimentar, abre agujeros y de por sí estamos con las condiciones de las calles, pues más grave se está dando". Por último, el presidente del Consejo Coordinador Empresarial de Rosarito aunó que "entonces estamos la verdad aquí estamos hablando de 10.8 millones de metros cúbicos al mes lo que estaría produciendo esta planta, imagínese el precio y el costo que sería para las empresas, para los negocios y el público en general”. Exhibit Q Baja California | 18 de Mayo de 2019 Bonilla: sí a desalinizadoras; pero sin tirar la salmuera al mar "Ellos podrán tener el permiso para construirla pero no tienen el permiso para operarla”, aseveró el candidato a gobernador. Foto Luis Arellano Sarmiento Luis Arellano Sarmiento Mexicali, 18 de mayo.- Una de las alternativas para acabar con el desabasto de agua en la zona costa y así detonar el desarrollo económico es la instalación de desalinizadoras que no afecten la flora y la fauna marina, reconoció el candidato a la gubernatura de Baja California, Jaime Bonilla Valdez. En reunión realizada en las instalaciones del Distrito de Riego Río Colorado 014, el aspirante a la gubernatura expuso a los usuarios del agua sus programas a realizar en caso de ganar la próxima elección del 2 de junio. Aseveró que el actual proyecto de desalinizadora impulsado por el gobernador Francisco Vega de Lamadrid en Playas de Rosarito, tiene permiso de construcción, pero no para la operación, refirió el candidato de la coalición “Juntos Haremos Historia en Baja California”. Ante usuarios del agua y agricultores del valle de Mexicali, Bonilla Valdez, aseguró que se combatirá el desperdicio de agua en los canales, para lo que un primer proyecto es la inversión de 600 millones de pesos en la rehabilitación de las compuertas. Ofreció recomponer el sistema hidráulico del valle, además de invertir más de mil millones de pesos en la modificación de los sistemas de riego, por ejemplo tecnificar el riego por goteo, son parte de los compromisos que expuso el abanderado de Morena. Una vez determinado el tamaño del desabasto, “lo que tenemos que hacer nosotros es estudiar bien qué sistema, y si realmente es viable (la instalación de) desaladoras en la costa, implementarlas pero con un procedimiento, una técnica mucho más moderna, que no aviente la salmuera a la playa, sino la retenga y la industrialice, porque la salmuera también se puede vender”, explicó el candidato de Movimiento de Regeneración Nacional (Morena), Partido del Trabajo (PT), Transformemos y el Partido Verde Ecologista de México (PVEM). El Senador con licencia aseguró que la empresa que construye actualmente una desaladora, coludida con el gobierno del estado, no ha dado ese paso para establecer un sistema que no contamine en el medio ambiente. Bonilla Valdez, detalló que hay nueva tecnología, la cual permite retener la salmuera sin echarla al mar, a través de un proceso de almacenamiento e industrialización con fines mercantiles. Reiteró que se tiene que buscar una alternativa para resolver el desabasto de agua, pero no puede ser a costa de la contaminación del ambiente Sobre el proyecto que actualmente impulsa el gobierno del estado, “lo van a tener que cambiar, entra nuestro gobierno y no lo vamos a permitir; ellos podrán tener el permiso para construirla pero no tienen el permiso para operarla”, aseveró el candidato a gobernador. Exhibit R Planta de Rosarito producirá suficiente agua para exportar a EEUU, dijo Bonilla a San Diego Reader Compartir: Por Rubén Vela Corresponsal Los Ángeles, California, mayo 19.‐ La planta desalinizadora de Rosarito “producirá suficiente (agua) para exportar a los Estados Unidos, dijo Jaime Bonilla, candidato a gobernador de Baja California por Morena, en una entrevista al medio San Diego Reader el 30 de mayo de 2012. La reunión se dio poco después de salir de la directiva del Distrito de Agua de Otay, en San Diego California, para brincar a México para impulsar en aquel entonces lo que sería la nueva estrategia de Andrés Manuel López Obrador para llegar a la presidencia de la república en 2018, tal como sucedió actualmente. De acuerdo con San Diego Reader, la entrevista con Bonilla fue en su casa de Chula Vista en abril, la información fue publicada en mayo del año de referencia, donde el medio le preguntó entre otras cosas, sobre el proyecto de desalinización que se gestaba desde aquel entonces y que Jaime era uno de los principales impulsores para la atracción del agua producida en Baja California. En ese sentido, el medio recuerda que “cuando Bonilla estaba en la junta de agua de Otay, abogó por la construcción de una planta de desalinización en Rosarito, que será financiada por intereses privados. La planta vendería agua al Distrito de Otay, que construiría un ducto al norte de la frontera. El proyecto tiene muchos detractores, que citan preocupaciones y costos ambientales”, enfatizó San Diego Reader. "El distrito del agua ha otorgado un contrato de 4 millones (de dólares) para que una empresa de ingeniería estudie el plan, y gastó 674,000 en cabilderos", informó Union‐Tribune el 10 de octubre de 2011. En diciembre, el periódico informó que los contratos sin licitación relacionados con la planta se adjudicaron a los asociados de Bonilla, recuerda el medio. En ese sentido, San Diego Reader le pregunta a Bonilla: “¿Seguirás promoviendo este proyecto?” A lo que este le contesta: "Esta planta produciría 100 millones de galones por día", dice. “Producirá suficiente para exportar a los Estados Unidos”. "Usted puede preocuparse por la flora y la fauna o puede preocuparse por la gente: ¿tienen trabajo, agua para beber, agua para la agricultura y la industria?", finalizó Bonilla. Por otra parte, recordamos que la empresa Consolidated Water está muy optimista por la aprobación de los créditos revolventes, incluso ya planean expandirse en América del Norte. Esa información la publicaremos en los siguientes días. NOTA: dejamos ligas de la nota publicada https://www.sandiegoreader.com/news/2012/may/30/citylights2‐Jaime‐bonilla‐amlo‐mexico/# Exhibit S Cross-border politician leads Baja California race for governor Jaime Bonilla, Baja California’s leading candidate for governor (Wendy Fry / The San Diego Union-Tribune) A Baja California politician has served in elected office in both the U.S. and Mexico. Critics question his political affiliations and U.S. citizenship, while the candidate for state Governor sees them as attributes. By WENDY FRY MAY 20, 2019 5 AM On a dusty street, next to an empty dirt lot in Tijuana’s migrant Colonia Libertad neighborhood, there is a modest blue house. Its bright paint stands out amid the sagging shacks and crumbling businesses built in the haphazard rhythm indicative of a neighborhood of squatters. This small home is where Jaime Bonilla, now Baja California’s leading candidate for state governor, grew up with his 10 brothers and sisters before the neighborhood had utilities like running water. Some of the houses in Libertad - or Liberty - are built from scraps and tin, squeezed right up against the border fence. The border here is omnipresent. Its constant pull and push for workers from the south and jobs in the north has defined this migrant neighborhood since it first sprang up without any city planning or approval. Homes are perched precariously on the shadowy slopes of la línea - just as its residents live teetering between both worlds and on the edge of economic success or defeat. “My mother would have to go ... They use to have a big water deposit ... a tank ... where they would deposit the water and my mother would go take water for everyone from there,” said Bonilla, a member of Mexico’s leftist ruling party and a close friend of President Andrés Manuel López Obrador. Though this was the landscape of his youth, it’s where Bonilla lives now that has become one of the most contentious issues in his campaign for governor. The elections will be held in Baja California on June 2. Voters will also decide on the Tijuana mayor’s seat, 25 deputies to state Congress, and City Council seats in Ensenada, Mexicali, Rosarito, Tecate and Tijuana. For 30 years, Bonilla and his family have lived in Chula Vista -- a city south of San Diego and north of Mexico long known as a safe haven for Tijuana’s elite. Bonilla’s $1.8 million home has vaulted ceilings and marble floors in a gated, affluent Rancho del Rey subdivision. The 68-year-old engineer -- his nickname is “El Ingeniero” -- is part of a group that owns radio stations across California and Baja California, including San Diego. He also owns and operates several cable TV stations in Baja. His critics accuse him of being ineligible for the governor’s seat because of his citizenship in the United States. It’s a complaint Bonilla, who obtained dual citizenship in the 80s, brushes off pointing to his deep roots in Tijuana and Baja California. “I was born here in Tijuana. I got married here in Tijuana and we lived here in Tijuana. There was an attempt on my life in 1989, so I moved my family to Chula Vista,” said Bonilla. In 1989, the federal deputy Ernesto Ruffo, a San Diego-born Mexican politician, became the first elected governor of Baja California not affiliated with Mexico’s then-dominant political party. Bonilla said that election caused problems for him that threatened his life. He may not be the first Mexican politician with dual citizenship, but Bonilla’s roles in elected office in both the U.S. and Mexico is unique. First elected in Chula Vista in 2000, Bonilla served for 12 years on the board of the Otay Water District, one of the largest utility agencies in the San Diego region. While serving as an Otay Water District director, he was involved in lots of controversy, including lawsuits over employee dismissals, a failed maneuver to grant lifetime health benefits to its employees and accusations of personal profit from a deal to supply water to San Diego from a planned $470 million desalination plant in Rosarito Beach. “We won most of the lawsuits, lost some, but I had no choice. I had to get rid of a lot of people,” he said. “We made a lot of changes and that’s what we’re going to do in the government of Baja California.” In 2012, he left his post with the water district to serve in Baja’s state legislature and to work on López-Obrador’s presidential campaign. He said the current state government of Baja has not upheld the deal on the desal plant he struck when he served as the water director in Otay. “They want to obligate the government to purchase a certain amount (of water) monthly and that’s nothing that I agreed upon because then everyone pays through their nose,” he said. San Diego, Tijuana and other Baja California coastal cities are heavily dependent on fresh water from the Colorado River, which is costly to transport. In Tijuana and Rosarito, some neighborhoods continue to lack reliable running water in their homes. It’s a situation Bonilla often criticizes on the campaign trail. “How can we have some of the most beautiful beaches in the world and people coming to those beaches to bathe because they have no running water in the homes?” he asked at a Thursday campaign event for business people involved with gasoline companies. Later, he said some 70 communities in Rosarito, including its university, lack running water. He sees it as an embarrassing reflection on the state government. “I feel for those people, having lived through that,” he said. “The biggest issue here facing people is a lack of water.” Critics also accuse Bonilla of switching political ideologies to take the most expedient path to public office. In the United States, he has financially supported Republican campaigns, but in Mexico he is a leader in its liberal political party. In San Diego County, he first registered to vote as a Republican before becoming an independent. Bonilla said he initially became a Republican because he idolized former U.S. President Ronald Reagan, but his views shifted over time. He later supported mostly Democratic candidates in local Chula Vista elections. “Everybody makes some mistakes,” he said. “I guess if you’re in government long enough, you’re going to make some mistakes.” Bonilla added he held on to the Republican-ideal of smaller government, promising to reduce the number of employees in Baja California and in the state police force. “I stand for small government. (The president) also stands for smaller government,” said Bonilla, reminding a handful of associates Thursday about his winning campaign slogan when first elected to the Otay Water Board: “Stop the waste, lower the rates.” If elected governor, Bonilla first plans to tackle the skyrocketing violence gripping Tijuana. “The whole state is in a state of alert. I’m concerned for everybody,” he said. “It’s actually even worse than it looks.” Exhibit T Aguas de Rosarito cumple con todos los ordenamientos legales Es una empresa sólida y transparente y toda información contractual y legal relacionada al proyecto de construcción de la desalinizadora de agua de mar en Playas de Rosarito es pública mayo 20, 2019 La transparencia del proyecto de la Planta Desalinizadora de agua de mar que la empresa Aguas de Rosarito construirá en Playas de Rosarito, bajo la modalidad de Asociación Público Privada (APP) es una garantía. Así lo señaló Milton Rubio, director de la empresa quien habló de la importancia de la planta desalinizadora para optimizar y garantizar a largo plazo los recursos hídricos disponibles en Baja California, al contar con una fuente de agua potable alterna al Río Colorado. Informó que toda información contractual, ambiental y legal relacionada con el proyecto de construcción de la desalinizadora de agua de mar es pública y puede ser consultada en su página de internet en donde se encuentran 25 documentos públicos entre ellos, los permisos de Conagua, Semarnat y el contrato APP. Actualmente, agregó, el proyecto se encuentra en el proceso de cierre financiero para obtener el fondeo de los bancos y se estima que éste concluya a finales de año para que a principios del 2020 se inicie con la construcción de la planta que en su primera etapa tendrá capacidad para producir 2 mil 200 litros de agua potable por segundo. Al referirse a la creación de la empresa Aguas de Rosarito 5 días antes de firmar el contrato APP del proyecto y que ha generado algunas dudas, dijo que es un proceso alineado a la normatividad y a la legislación de las Asociaciones Público Privadas, estableciéndose esta condición como requisito en las bases de licitación para el caso de Consorcios formados por más de una empresa. Explicó que las empresas que participan en una licitación como consorcio, se presentan con su propio nombre y que de acuerdo con las reglas de APP, cuando son adjudicados se tiene que constituir una nueva entidad que se conoce como sociedad de propósito específico (SPE) cuyo único objetivo es la ejecución del proyecto adjudicado, para lo que la autoridad (en este caso la Comisión Estatal del Agua de Baja California) autoriza previamente los estatutos de constitución. La legislación no establece un período previo a la firma del contrato APP para la constitución de la SPE ya que esta no es una empresa que se represente por sí sola, si no como se ha dicho, tiene el respaldo de las empresas que la conforman. Expresó que las empresas que participaron en la licitación integrando el consorcio ganador demostraron mediante documentos legales y fiscales que son empresas legalmente constituidas, que se encuentran al corriente de sus obligaciones fiscales, demostrando contar con experiencia en la ejecución de proyectos similares al licitado y capacidad financiera, cumpliendo así con los requisitos de calificación de la Licitación; Para demostrar lo anterior, las empresas exhibieron actas constitutivas, poderes, reportes de impuestos, estados financieros auditados de al menos dos años y documentos que demuestren su experiencia previa en trabajos similares a los licitados. Las empresas que conformaban el consorcio licitante son: NSC Agua, NuWater y Degrémont (cuyo nombre actual es Suez, como constructor de la desalinizadora). Actualmente existe un acuerdo aprobado por la CEA para que Suez y el fondo de inversión BlackRock se sumen al capital de Aguas de Rosarito al momento del cierre financiero. La aprobación para esta operación ha sido posible después de haber verificado la calidad, experiencia y solvencia financiera de dichas empresas. Al referirse a cláusulas del contrato APP dejadas en blanco y que pudieran dar lugar a suspicacias, comentó que esto es una práctica común sugerida por los abogados cuando se establecen contratos tan complejos y que tienen diversos componentes. Manifestó que en contratos a largo plazo como éste que contempla 40 años, es posible que se haga necesario incluir cláusulas adicionales y por ello se dejan en blanco para no tener que hacer después modificaciones a la numeración de las cláusulas que harían más compleja la operación por cambios de referencias además incrementando el riesgo de errores de interpretación. “El contrato es público independientemente de cambios que puedan suceder. En todos los casos, la Ley prevé que contratos de esta naturaleza puedan tener convenios modificatorios dependiendo de las necesidades del proyecto y de las partes”, especificó, siempre y cuando ambas partes estén de acuerdo en ello y esté debidamente justificado y validado por los órganos de control de las dependencias del Estado. El directivo de la empresa declaró que este proyecto garantizará la seguridad hídrica de la región (zona costa), al contar con una fuente alterna de agua potable, ya que esta zona tiene mucha vulnerabilidad hídrica porque toda el agua viene del Río Colorado a través de un acueducto de más de 30 años y más de 100 km de largo, y el riesgo de fallas o daños que generarían una disminución en los caudales disponibles es muy alto. Indicó que la región está creciendo mucho, y por consecuencia la demanda de agua tanto por el crecimiento poblacional como por el desarrollo de la industria, por lo que el acueducto Río Colorado Tijuana, al operar a su máxima capacidad, ya no puede transportar mayor volumen de agua. “Tijuana consume cerca de 150 millones de metros cúbicos de agua al año y el 98% del agua que consume proviene del Río Colorado y de la Mesa Arenosa en Sonora. Los derechos de agua asignados a Tijuana (y Playas de Rosarito) ascienden a 93 millones de metros cúbicos anuales –- es decir que Tijuana tiene un déficit de agua de cerca de 60 millones de metros cúbicos al año— y corresponden al agua que se extrae de la Mesa Arenosa. De este mismo acuífero se extrae agua para Mexicali y el problema es que se extrae mucha más agua de lo que el acuífero se puede recargar, por lo que el riesgo de agotar también esta fuente es muy alto, sin dejar de mencionar los conflictos sociales que existen con los agricultores de Mexicali. Hoy es equivalente al nivel energético desalinizar que traer agua del Río Colorado, ya que bombear 1 metro cúbico a través de ARCT consume 4 kilowatts y la desalinizadora más el bombeo hacía los tanques de distribución consumirá también 4 kilowatts por metro cúbico”, comentó. Por su parte Eduardo Sánchez, director comercial de Suez, empresa francesa con años de experiencia en el tratamiento del agua y que participará en el proyecto como contratista de diseño de construcción y de operación, anunció que el cuidado del medio ambiente será una prioridad. Informó que se preparó un estudio de impacto ambiental, que ha sido actualizado después de la adjudicación del proyecto, que es un documento público revisado por SEMARNAT. En respuesta, la autoridad ambiental federal emitió el Resolutivo de Impacto Ambiental, que también es un documento público y en donde se determina que no hay un riesgo de afectación a la vida marina. Exhibit U Tras financiamiento para planta de Rosarito, Consolidated Water va por mayor expansión Compartir: Por Oscar Tafoya @oscartafoya “Estamos enfocados en cerrar la fase de desarrollo del proyecto en Rosarito, así como en expandir nuestros negocios a nuevos mercados y líneas de productos complementarios. Esto incluye evaluar activamente los objetivos de adquisición en América del Norte que ampliarían nuestra huella geográfica y diversificarían nuestros flujos de ingresos”, dijo Rick McTaggart presidente de Consolidated Water durante una conversación telefónica con inversionistas del proyecto. A través del portal Seeking Alpha, el directivo habló el 10 de mayo con accionistas que impulsan el proyecto en Baja California, donde les informó sobre la aprobación de los créditos revolventes que el Congreso de Baja California aprobó, los cuales aseguran los pagos del proyecto durante los próximos 37 años. “El Congreso del Estado de Baja California renovó autorizaciones clave, que fueron requeridas para el proyecto sin pasar por el decreto número 335. Este decreto le permite al Estado obtener la facilidad de crédito revolvente que necesita para asegurar los pagos del proyecto durante el periodo de operación de 37 años. Esto significa que ahora podemos proceder a varios pasos importantes antes de comenzar la fase de construcción, incluida la obtención de la deuda restante y los derechos de vía del acueducto”, enfatizó Rick McTaggart. Asimismo, el presidente de Consolidated Water, empresa propietaria de NSC Agua y Aguas de Rosarito, recordó que para la planta desalinizadora de Rosarito hubo dos buenas noticias: En primer lugar, un importante prestamista nos informó que el comité de crédito había aprobado un financiamiento de deuda para el proyecto. “Esto representa una parte sustancial de la financiación necesaria para completar la primera fase y la compañía espera que el resto siga de acuerdo con lo programado”, puntualizó el directivo. El segundo, “el gobierno estatal obtuvo dos permisos críticos para el proyecto. Uno para la extracción del agua de mar para suministrar el proceso de desalinización y el segundo permiso para la descarga del agua de mar concentrada, que es un subproducto del proceso de desalinización”, dijo el representante de la transnacional. El directivo agregó que “la preparación de los estudios ambientales, las consultas públicas y las solicitudes de permisos que era nuestra responsabilidad ha sido un proceso de varios años”. En ese sentido, recordamos que Jaime Bonilla, desde que era diputado federal por allá del 2014, era el encargado de gestionar reuniones para sacar adelante el proyecto. Esto ya ha sido documentado por Monitor Económico. (Para cualquier duda, solicitar en redes sociales los documentos que sostienen la información). Cabe recordar que la planta consta de dos fases, la primera producirá 50 millones de galones diarios de agua, mientras que la segunda alcanzará los 100 millones de galones. Por último, Rick McTaggart dio a conocer que “actualmente somos dueños del 100% de la compañía de desarrollo de proyectos, hemos celebrado acuerdos con nuestros socios potenciales de capital a través de los cuales retendremos al menos el 25% de propiedad y la compañía del proyecto al cierre de estos acuerdos. Además, retendremos el 50% de la posición de propiedad en el operador del contrato para el proyecto. La necesidad de agua potable adicional se ha incrementado significativamente en los últimos tres años, con el rápido crecimiento de las ciudades costeras de Baja California que se vuelven muy dependientes del río Colorado y el envejecimiento de los acueductos desde el río hasta la región costera cruza varias zonas sísmicas”. Jaime Bonilla declares himself winner in Baja California Jaime Bonilla, center, candidate for governor of Baja California with the Morena political party arrives at a polling place where he will vote in the 2019 Baja California state elections on June 2, 2019, in Tijuana, Mexico. Bonilla is accompanied by his wife, Rita Fimbres. (David Maung) Early polling results show Mexico’s new ruling party sweeping state. By WENDY FRY JUNE 2, 2019 9:39 PM Jaime Bonilla, a close political ally of Mexico’s president and a former Chula Vista politician, declared himself the newly elected governor of Baja California on Sunday night. With 322 polling places reporting, representing about 74 percent of the vote, Bonilla has between 50.7 percent to 53.2 percent of the vote. Exhibit V Bonilla, who owns radio stations across Baja California and California, is about 30 points ahead of his closest rival, Oscar Vega, who has 20.6 percent. “We have a serious problem with corruption in this state, and people are crying out for a change,” Bonilla said during a victory speech on Sunday night. If the polling holds, it will mean the end of 30 years of political control in Baja California by Mexico’s National Action Party, the PAN. “With this election, ends 30 years of abuse and 30 years of corruption,” Bonilla said. Bonilla’s political party, the National Regeneration Movement (MORENA), was founded in 2014 by Mexico’s leftist President Andrés Manuel López Obrador. Sunday night’s election was the first electoral test for the popular López Obrador and his party, which appeared to be cruising to victories in races across the country in Sunday’s voting. The 68-year-old engineer, born in Tijuana, served for 12 years as an elected official for the Otay Water District in Chula Vista. First elected in 2000, he left his post in 2012 to campaign for López Obrador’s presidential race. Luis Miguel Geronimo, the new ruling party’s candidate for governor of the central state of Puebla, was also ahead, the National Electoral Institute said. The polls in Puebla closed two hours earlier than those in Baja California. Businessman Arturo Gonzalez Cruz, also of the MORENA Party, claimed victory in the Tijuana mayor’s race Sunday evening, but his closest rival, Julian Leyzaola, had not yet ceded the race. Leyzaola, the city’s former police chief, did not appear at a news conference scheduled for 8 p.m. in his campaign office in the Plaza Patria mall. Officials with his political party told more than two dozen reporters awaiting his appearance they wanted to wait for official results. Leyzaola won a reputation as “Mexico’s toughest cop” after surviving several assassination attempts, one of which left him permanently in a wheelchair. He narrowly lost the mayor’s race in 2016 by about 5,000 votes. Early Sunday, lines appeared to move along smoothly and calmly at polling places throughout Tijuana. Ricardo Vega, a 30-year-old architect, voted at a school in the El Prado Este neighborhood. “It’s always calm, but I feel like I liked previous elections better than this year,” said Vega, who said he felt polling officials were a little disorganized early in the morning. “The leading political parties this year aren’t the traditional parties and that part is what I like better,” said Vega, who voted for Leyzaola. Voter Pedro Piñada said he came out to vote Sunday because he was fed up with the status quo. “There aren’t many options,” Piñada said. “It’s the same crap just with different political parties. The people in the government don’t do anything for Tijuana residents. They just want to take money.” Despite his cynicism, Piñada said he brought his 3-year-old granddaughter to his polling place to teach her about the importance of participating in the electoral process. Andrea Morales, 18, voted in her first election Sunday. She said she didn’t even realize it was Election Day until she walked past a polling place on Boulevard Federico Benítez López. “It was very easy,” she said. “I just gave them my ID and they gave me my ballot. It was my first time voting, but it was simple and pretty straightforward.” Morales said she was surprised there were no lines and was able to walk up and vote around 2 p.m. Sunday. In the Altiplano neighborhood in east Tijuana, police reported finding a stolen ballot box dumped in a vacant lot shortly after 10 a.m. Sunday. The ballot box had been reported stolen Saturday night from the home of a person set to run the nearby polling place. Police said the electoral package contained about 1,700 ballots. The stolen ballots were dumped in the empty lot about 30 meters from the polling location at the Pioneers of Tijuana elementary school at the Calle José Mendoza and la Calle Ojo de Agua. Tijuana municipal police cordoned off the area with caution tape and alerted federal election officials. Federal election officials said that incident was the only allegation of a probable election crime in Baja California on Sunday. Between 7 a.m. and 10 a.m. Sunday, there were 23 reports related to problems with the electoral process, according to the Ministry of Public Security for the State of Baja California. The calls were registered via 911 at the Control, Command, Communication and Computing Center (C4), according to the Ministry of Public Safety. Officials in Tijuana received the most reports with nine calls from the public. In Mexicali, there were eight reports. Ensenada registered three calls about minor issues. Rosarito had two calls and there was one call in Tecate. Some of the issues reported included: polling places not opening on time, drunk people at the voting location, disturbances at the ballot box, political propaganda at the polling places, boxes not installed on time, conflicts between representatives, people trying to buy votes and a lack of a sufficient number of officials to run the polling places. Public safety authorities emphasized that the reports were not confirmed election crimes, but were just complaints made by members of the public. The Ministry of Public Safety noted there were no significant disturbances in the electoral process on Sunday. Staff writer Sandra Dibble contributed to this report. Exhibit W Se revisará el proyecto de la desaladora: Bonilla Valdez MIREYA CUÉLLAR La Jornada Baja California Periódico La Jornada Martes 4 de junio de 2019, p. 7 Tijuana, Bc., Jaime Bonilla Valdez, candidato de la coalición Juntos Haremos Historia en Baja California ganador de los comicios para la gubernatura, anunció que una de sus primeras acciones de gobierno será revisar la viabilidad financiera y ambiental de la desaladora de agua marina de Playas de Rosarito, planta que el actual gobernador panista Francisco Kiko Vega planeó con intención de que fuera la más grande de América Latina, y por la cual endeudó al estado por los siguientes 37 años. El próximo gobernador recibirá un estado en quiebra, porque la administración estatal le debe mil millones de pesos a la Universidad Autónoma de Baja California, salarios atrasados a los maestros, y recursos al Poder Judicial. Asimismo tendrá en sus manos proyectos controvertidos como la desaladora mencionada, y la instalación de la cervecera de Constellation Brands, en Mexicali, proyecto que la sociedad rechaza por las grandes cantidades de agua que requiere. En entrevista, Bonilla Valdez aseguró que trabajará intensamente en los dos años de su mandato tanto que parecerán cuatro, y que espera recibir el apoyo federal que Baja California requiere para salir adelante. –¿Qué hará con Constellation? –El Presidente (Andrés Manuel López Obrador) ya dijo que los expertos están haciendo el estudio de la viabilidad del proyecto, independientemente de la etapa de construcción en la que se encuentre, y él va a tomar la decisión y nosotros la vamos a respetar. El problema de la desaladora, apuntó, no es el tamaño del proyecto, sino qué tanto compromete las finanzas del estado. Yo no voy a permitir que nos deje sin recursos porque con qué vamos a operar, no queremos un estado hipotecado; hay que prestar servicios y no se dejará de pagar a los maestros o de llevar agua o luz porque alguien hizo el negocio de su vida, pero yo no estoy en contra de la desaladora. Se le recordó que en su campaña dijo reiteradamente que pondría a KikoVega en la cárcel. –Soy respetuoso de los poderes, hay procesos empezados –replicó. “No voy a detener ninguno, la gente está muy resentida por la forma como el gobernador se ha enriquecido, lo hizo a todas luces. El estado va a complementar, entregará a la Federación la información que se le pida; si el gobernador se comió o desvió millones, que él mismo ya lo ha reconocido, que el dinero se usó para otras cosas, remató. Exhibit X Imprescindible construir la desaladora de Rosarito, insiste Vega de Lamadrid The governor also defended the construction of C5i and the second floor of Playas de Tijuana. Photo screenshot Por Antonio Heras / La Jornada Mexicali, 5 de junio.- El gobernador de Baja California, Francisco Vega de Lamadrid, sostuvo que es imprescindible construir la planta desalinizadora de Playas de Rosarito pues el Acueducto Río Colorado- Tijuana se encuentra podrido, saturado y en riesgo, pues su vida útil culminó ya que se construyó para 30 años y lleva 40, además de que se encuentra en una zona sísmica. Tras advertir que el agua que llega a esa zona de la costa de la entidad tiene “acta de nacimiento estadunidense, pues proviene de Las Rocallosas”, precisó que entre los riesgos se encuentran la sequía y las pretensiones del gobierno del presidente Donald Trump de limitar la entrega de agua a México. En conferencia de prensa, dijo que la planta desalinizadora que construye la empresa Aguas de Rosarito proporcionará agua segura y tendrá acta de nacimiento mexicana, por eso “se tiene que hacer” Calificó de “una mentira” la versión de que el líquido se venderá a Estados Unidos. “El contrato con esta empresa es que el agua únicamente se venderá al gobierno del estado a través de la Comisión Estatal de Servicios Públicos de Tijuana”. Justificó la construcción de un segundo piso de una vialidad que parta del Cañón Zapata para conectar a Playas de Tijuana porque es una obra que aligerará el tráfico en la ciudad. “Quienes circulamos por esa zona no podemos con el tráfico, pues es inseguro y tardado; es necesario contar con mayor seguridad y menor tiempo”, dijo Kiko Vega. Una tercera obra que defendió el gobernador panista, que concluye su encomienda constitucional en 90 días, es el Centro de Control, Comando, Comunicaciones (C5I) por ser una petición del Sistema Nacional de Seguridad Pública para estar en posibilidad de estar conectados con todo el país. Hace un mes estuvo en la presentación de otro C5I basado en nueva tecnología y con una inversión de mil millones de pesos. En el caso de Baja California se considera la adquisición de 2 mil 550 cajas de botones de alerta que ya se instalan en algunos puntos de la entidad, explicó. La desalinizadora de Playas de Rosarito y la vialidad en Tijuana se integraron en un paquete de asuntos promovidos por el Poder Ejecutivo hace un mes en el Congreso del Estado. Ambas obras, que se harán con contratos de asociaciones público-privados (APP), fueron aprobadas por la mayoría panista y sus aliados políticos, al igual que el refinanciamiento de la deuda pública para pasar de 12 mil millones de pesos a 39 mil millones pagaderos en 20 años. Estas obras fueron cuestionadas por organizaciones de la sociedad civil y grupos parlamentarios de oposición del Congreso local, por considerar que se tratan de los negocios del agua de Vega de Lamadrid. En el caso del C5I acordó una inversión de 800 millones de pesos de la administración estatal, la cual se encuentra en crisis financiera, aunque la propuesta original era un contrato de APP con Seguritech por 3 mil 200 millones de pesos. Esta misma empresa es la que ejerce el contrato final.