Local Time: Print | E-mail Page

Environmental Sector

Environmental Equipment and Supplies

Overview

Environmental Sector

USD Million

 

2010

2011**

2012 (estimated)

2013 (estimated)

Total Market Size

5,892.0

6,091.5

6,284.8

6,452.5

Total Local Production

2,520.0

2,595.6

2,653.7

2,713.2

Total Exports

1,178.0

1,213.4

1,237.7

1,262.5

Total Imports

4,550.0

4,709.3

4,837.6

4,970.1

Imports from the U.S.

3,524.0

3,629.7

3,723.0

3,819.0

Exchange Rate: 1 USD*

12.34

13.86

13.90

14.00

Water Technologies

 

2010

2011**

2012 (estimated)

2013 (estimated)

Total Market Size

3,820.0

3,915.3

4,065.1

4,188.5

Total Local Production

1,225.0

1,255.6

1,286.9

1,319.0

Total Exports

765.0

787.9

803.7

819.8

Total Imports

3,360.0

3,477.6

3,581.9

3,689.3

Imports from the U.S.

2,010.0

2,086.6

2,149.1

2,213.6

Exchange Rate: 1 USD*

12.34

13.86

13.90

14.00

The total market for the water and wastewater subsectors is estimated to grow by 3.8% from 2011 to 2012 and U.S. exports to Mexico are expected to increase by 2.9% during the same period.

The 2012 total budget from the Federal government to CONAGUA (National Water Commission) will reach over US$2.1 billion for new investment in water supply and wastewater treatment for the municipal and industrial sector. As a result of the new Public and Private Partnership Law approved by the Mexican Congress, investment from private sector contractors in CONAGUA concessions is estimated to reach US$700 million in 2012. .

Environmental Technologies

 

2010

2011**

2012 (estimated)

2013 (estimated)

Total Market Size

2,072.0

2,176.2

2,219.7

2,264.0

Total Local Production

1,295.0

1,340.0

1,366.8

1,394.2

Total Exports

413.0

425.5

434.0

442.7

Total Imports

1,190.0

1,231.7

1,255.7

1,280.8

Imports from the U.S.

1,514.0

1,543.1

1,573.9

1,605.4

Exchange Rate: 1 USD*

12.34

13.86

13.90

14.00

*Central Bank’s Statistics and Projections (Banco de Mexico)

** Based on statistics available from January to November 2011 (11 months). Source of information: BANCOMEXT, -Mexican Import/Export Bank statistics, Secretary of Economy Statistics; statistics from the Secretariat for the Environment and Natural Resources –SEMARNAT; Census Bureau, U.S. Department of Commerce or Global Trade Atlas State Exports, November 2011; Border Environmental Cooperation Commission (BECC); CONAGUA National Water Commission (CONAGUA); National Council of Environmental Executives- CONIECO and interviews with importers, distributors and end-users of water and wastewater equipment and services.

Best Prospects/Services

The best prospects for US companies are in the sub-sectors of water resources equipment and services (WRE), Air Monitoring, and Solid Waste. See “Opportunities” below.

Opportunities

Water Purification Plants

CONAGUA will invite companies to bid in the upgrading of 100 of the existing 631 plants. The estimated budget is US$35.5 million for plants in the states of Guerrero, Coahuila, Sinaloa, Tamaulipas, Zacatecas and Veracruz. CONAGUA plans to increase public access to water sanitations services from 49% coverage to 60% in 2012.

Desalination Plants:

CONAGUA is planning to invite private companies to bid on desalination plants for the cities of Hermosillo and Puerto Penasco in the State of Sonora as well as Los Mochis and Mazatlan in the State of Sinaloa. CONAGUA has indicated that the new desalination plants will be built using the new Public and Private Partnership Law as a framework.

Wastewater Treatment:

CONAGUA will invite companies to bid on the upgrading of 140, of the existing 2,029, municipal wastewater treatment plants mainly in the states of Aguascalientes, Chihuahua, Guanajuato, Jalisco, Nuevo Leon, Oaxaca, and Puebla, among others. The estimated budget is US$70 million. New plants will be built in the states of Puebla, Colima, Yucatan, Quintana Roo, State of Mexico, Nayarit, Guerrero, Colima, and others. CONAGUA has a budget of US$ 200 million for new plant construction.

In particular, CONAGUA plans to build a Atotonilco wastewater treatment plant in the State of Hidalgo. The private sector will finance 54% of the US$ 771 million price tag for what would be the largest wastewater treatment plant in Latin America.

Private companies in the cities of Tijuana, Mexicali, Cd. Juarez, Reynosa, Matamoros, Villahermosa, Leon, Irapuato, Queretaro, Toluca, Morelia, and Jalapa, among others, will invest US$80 million in upgrading their wastewater treatment plants to meet the wastewater discharge environmental standard. This will increase public access to water sanitation services from 49% in 2011 to 60% in 2012.

Waste Management

Approximately 40 million tons of solid waste is generated every year in Mexico, from which approximately 88% corresponds to urban solid waste, and 12% corresponds to hazardous waste. In 2011, the federal government supported the construction of 113 landfills. Municipal, state, and federal authorities, with the support of the private sector, will continue to invest in solid waste management, particularly in projects to increase the capacity of sanitary fields and to construct new sanitary fields, to increase the capacity of recycling, to increase the use of organic waste, to transform PET, and to recover construction materials, among others.

Air Monitoring

Mexico and the United States announced the Clean Air and Climate Change Coalition, with the objective of reducing emissions and contributing to the efforts against climate change. This initiative will allow improving air quality and protecting public health. Mexico has been monitoring the air in 70% of the national territory; the priority is to develop specific projects from all the states and their respective 1600 municipalities by 2013.

Resources

Secretariat of the Environment & Natural Resources: http://www.semarnat.gob.mx/

National Water Commission: http://www.cna.gob.mx

National Institute of Ecology: http://www.ine.gob.mx/

Attorney General for Environmental Protection: http://www.profepa.gob.mx/

Mexican Institute for Water Technology: http://www.imta.gob.mx/

National Council of Environmental Executives: http://www.conieco.org/

National Bank for Public Works: http://www.banobras.gob.mx/

Border Environmental Cooperation Commission http://www.becc.org

National Association of Water Companies http://www.aneas.com.mx

For more information on the water and wastewater sector, please contact:

Francisco Ceron (water and wastewater)

Commercial Service, U.S. Embassy in Mexico City

E-mail: Francisco.ceron@trade.gov

For more information on the environmental sector, please contact:

Ms. Claudia Salgado

Commercial Service, U.S. Embassy in Mexico City

E-mail: claudia.salgado@trade.gov