Projects Profile
In 1999, the Government of Chile began privatizing its sanitary companies and awarded 65 percent ownership to the private sector. The remaining percentage remains in government hands.
Due to the privatization of the sanitary companies and the effort of the government to regulate the industry, the Chilean market offers excellent opportunities for U.S. suppliers of water treatment related equipment and services.
Regulations passed in 2002 require that industrial manufacturers and sanitary (water & sewage) companies in Chile must treat all wastewater by September 2006. The Superintendence for Sanitary Services (SSS) is the government office responsible for the control and enforcement of water regulations throughout the country. According to SSS, full compliance with current regulations will require an investment of at least US$ 2.5 billions. A number of projects are already underway.
Below is a list of all Sanitary companies in Chile:
| Larger Companies | ||
|---|---|---|
| 1 | AGUAS ANDINAS | Private and Public |
| 2 | ESSBIO | Private and Public |
| Medium Companies | ||
| 3 | ESVAL | Private and public |
| 4 | A. NUEVO SUR MAULE | Private and Public |
| 5 | ESSAM | Public |
| 6 | SMAPA | Public |
| 7 | ESSAR | Public |
| 8 | ESSCO | Public |
| Smaller Companies | ||
| 9 | ESSAL | Private and Public |
| 10 | ESSAN | Public |
| 11 | ESSAT | Public |
| 12 | AGUAS CORDILLERA | Private |
| 13 | EMSSAT | Public |
| 14 | ESMAG | Public |
| 15 | AGUAS DECIMA | Private |
| 16 | EMSSA | Public |
| 17 | AGUAS PATAGONIA | Private |
| 18 | SERVICOMUNAL | Private |
| 19 | AGUAS MANQUEHUE | Private |
| 20 | AGUAS LOS DOMINICOS | Private |
| 21 | COOPAGUA | Private |
SANITARY SECTOR PROJECTS
1.ESSAT (Empresa Sanitaria de Tarapacá)
·Current services include potable water production systems and sewer systems.
·Investment / Development Plan Note, the most important projects have been developed, only small maintenance projects are anticipated over the next four years. One large project includes plans for the construction of two electrical nets in the northernmost cities of Iquique and Arica. This project plan begins the end of this year and forecasts completion by the end of 2004. Investment is approximately US$ 900,000.
ESSAT is in the process of being privatized, and therefore, is not planning large projects until its privatization is complete.
Another project regarding the construction of a water treatment plant and desert irrigation systems is on stand-by due to lack of private company interest.
| ESSAT Investments2000 – 2007 | |
|---|---|
| Year | US$ m |
| 2000 | 6.2 |
| 2001 | 7.1 |
| 2002 | 7.8 |
| 2003 | 9.2 |
| 2004 | 9.2 |
| 2005 | 10 |
| 2006 | 10 |
| 2007 | 10 |
| Total | 69.5 |
2.Aguas Andinas (Santiago Metropolitan Region)
·Current services include potable water production systems and water treatment Systems. The water treatment plants include El Trebal, La Farfana (January 2004 operation, US$ 315 million); and Los Nogales (January 2009 operation, US$ 210 million).
·Investment / Development Plan Aguas Andinas is working on the Santiago Water Sanitation Plan, which will treat 100% of the water from the sewers generated by the inhabitants of Santiago and its periphery, returning it pollution-free to rivers and the ocean.
The Aguas Andinas investment plan totals US$ 832 million during the 2001-2005 period. Two thirds, or US$ 563 million, is designated to finance water treatment plants.
| Aguas Andinas Investment Plan | 2001 – 2005 | |
|---|---|---|
| US$ million | % | |
| POTABLE WATER PRODUCTION | 98 | 12 |
| POTABLE WATER DISTRIBUTION | 110 | 13 |
| WATER TREATMENT | 563 | 67 |
| SEWER WATER RECOLLECTION | 38 | 5 |
| OTHER INVESTMENTS | 23 | 3 |
| TOTAL | 832 | 100 |
3.ESSAN (Empresa de Servicios Sanitarios de Antofagasta)
·Current services are treatment and recollection of wastewater in Taltal, Antofagasta, Mejillones, Calama and Tocopilla. ESSAN recently inaugurated a new US$ 54 million desalination plant.
·Investment / Development Plan
Only small maintenance and repair projects totaling US$ 5 million is estimated for the 2003-2010 period.
4.EMSSAT S.A. (Empresa de Servicios Sanitarios de Atacama S.A.)
·Current services are potable water production, sewer systems and wastewater treatment in the Atacama Region (northern Chile).
·Investment / Development Plan
EMSSAT´s development plan for the period 2000-2015 requires an investment of US$ 11.8 million, of which US$ 3.5 million are for potable water production and distribution and US$ 8.3 million for a sewer and wastewater treatment plant. This plan is currently under revision. Originally, the main investment was planned for the Caldera – Chañaral sewer system and the Copiapó – Tierra Amarilla potable water production system.
5.ESSCO (Empresa de Servicios Sanitarios de Coquimbo S.A.)
·Current services are potable water and sewer services for the Coquimbo Region. It also has a wastewater treatment plant and a specialized laboratory called ESSCOLAB.
·Investment / Development Plan
ESSCO´s investment for 2002 – 2017 called for US$ 18.6 million. The biggest investment will be in the La Serena – Coquimbo area, which has projects for a wastewater treatment system and potable water system for approximately US$ 10 million.
6.ESSAR (Empresa de Servicios Sanitarios de La Araucanía S.A.)
·Current services are potable water, sewer systems, water treatment plants and industrial wastewater treatment in the Araucanía area.
·Investment / Development Plan
ESSAR development plan for the period 2002-2015 requires an investment of US$ 149 million including water distribution, collection and disposition, which amount to US$ 110 million. An additional US$ 39 million is required for ESSAR’s operation (machinery acquisition, equipment and vehicles, maintenance of the sanitary infrastructure, etc.). In general terms, the investment plan is focused on the construction of wastewater treatment plants.
The construction of wastewater treatment systems would represent 54% of the total investment. The main wastewater treatment project is being implemented in the city of Temuco, amounting to US$30 million.
Other projects are the extension, replacement and reinforcement of potable water and sewer networks, together with fluoridation of the water.
7.ESMAG (Empresa de Servicios Sanitarios de Magallanes)
·Current services include the production and distribution of potable water, collection, treatment and discharge of wastewater and related services in Chile’s XII region.
·Investment / Development Plan
The ESMAG development plan for 2000-2013 requires an investment of US$ 23 million. The main project is the sewer and potable water systems in southernmost city of Punta Arenas for a total investment of US$ 18 million.
8.ESVAL (Empresa Sanitaria de Valparaíso)
·Current services are wastewater treatment systems in the Aconcagua and Ligua rivers for agricultural purposes. Water treatment systems for cleaning the water along main beaches in the region, and water treatment systems for industrial wastewater.
·Investment / Development Plan
For the 2003 – 2005 period, investment will reach US$ 97.1 million distributed among 150 projects that will create approximately 3,500 new jobs. The investment will focus on the potable water sector.
9.ESSAL (Empresa de Servicios Sanitarios de Los Lagos)
·Current services are potable water services, sewer systems, water treatment plants, industry wastewater treatment systems and a laboratory.
·Investment / Development Plan
ESSAL’s investment plan for the next five years includes US$ 92.9 million that targets solutions for the treatment of wastewater in 32 localities of the region.
10.ESSEL (ESSBIO’s Branch for the city of Rancagua and its surroundings)
·Current services include 99.2% potable water coverage in its zone, 80% in sewer systems and 30% in wastewater treatment, which are the top two investment priorities. It also has a laboratory and industrial wastewater treatment system.
·Investment / Development Plan
During the 2000 – 2005 period, ESSEL will invest for US$ 71.4 million, of which 65% is designated to wastewater treatment plants. The most important project in this area will be the construction of the wastewater treatment plant in Rancagua, requiring a US$14.3 million investment.
This investment plan will also cover the improvement and expansion of the potable water distribution system and recollection of wastewater among other investments in machinery and support systems.
11.ESSBIO (Empresa de Servicios Sanitarios del Bio Bio)
·Current services include potable water and sewage systems.
·Investment / Development Plan
ESSBIO’s investment for the 2001-2005 period is US$ 161.4 million. Two large projects forecasted for concession this year include the construction, design, and assembly of the potable water supply and sewer system for the Lomas Coloradas sector in the VIII Region. Currently, there are five water treatment plants under construction in Bío Bío, Cobquecura, Los Angeles, Quillón and Quilaco sectors.
12.Aguas Nuevo Sur (former ESSAM, Empresa de Servicios Sanitarios del Maule)
·Current services in the VII Region include potable water distribution, wastewater treatment, industry wastewater treatment and technical assistance.
·Investment / Development Plan
Aguas Nuevo Sur, formerly ESSAM, is now owned by the Thames Water group, which owns 56% of ESSBIO. Their investment plan is under review. In the meantime, the group is also working under the previous ESSAM investment plan, which required US $ 40 million for water treatment for the period 2002-2015.
13. Aguas Patagonia (former Empresa de Servicios Sanitarios de Aysén, EMSSA)
·Current services include the distribution of potable water and management of the sewer systems in Chile´s XI Region.
·Investment / Development Plan
Aguas Patagonia is working on developing a new investment plan. The former EMSSA development plan required an investment of almost US$ 20 million for the period 2000-2015, focusing on potable water and sewer systems.
WATER TREATMENT PROJECTS IN DIFFERENT INDUSTRY SECTORS
The following are a few examples of how some industry sectors are preparing themselves to face the September 2006 deadline to treat all wastewater.
Mining sector
The Chilean National Copper Corporation, Codelco, is the main environmental investor in the area. Codelco is owned by the Chilean government.
Due in part to their effort to become ISO certified, Codelco’s environmental strategy has been more aggressive lately, with related investments at the highest level in their history.
Codelco’s investment in environmental projects is expected to reach US$ 31 million in 2003 and is forecast to top US$ 80 million for the period 2003-2005. Most of the investment in water treatment projects will be for Codelco’s El Teniente division.
Wine Sector
Implementation of the Chilean Government’s APL (Chilean Government’s Clean Production Agreement) has generally been welcome in the wine sector. There are ten APLs currently in place, with over 1,200 companies involved. It is not mandatory to subscribe to the APL, but if it does subscribe, the winery has two years to meet the water treatment requirements.
Fishery Sector
The Salmon Industry is the most important part of the fishery sector and encompasses most of the sector’s water treatment projects. As in the winery sector, the salmon sector is implementing the APL. The APL allows each company six months to develop a diagnosis, four months to design the solution, four additional months to develop the design of the implementation and two years in total for completion.
| Name | Region | Company | Investment (Million US$) |
|---|---|---|---|
| Water treatment system (for industrial waste water) improvement in the water sector | V | Codelco (Andina Division) | 45 |
| Water cleaning Andina’s mining company | V | Codelco (Andina Division) | 40 |
| Industrial alcohol plant. Water treatment system (for industrial waste water) | VII | Mitjans S.A. Liqueurs (winery) | 10 |
| Water treatment plant (for industrial waste water) for the yeast industry | RM | Gist-Brocades Industrial S.A. | 5 |
| Improvement of water treatment plant (for industrial waste water) | V | Codelco Andina Division | 4 |
| Water treatment system (for industrial waste water) | V | Casas del Bosques Ltda. Winery | 3 |
| Water treatment plant (for industrial waste water) | V | Oil Refinery Concón S.A. | 2,5 |
| Water treatment plant (for industrial waste water) | VIII | Norske Skog Biobio Ltda. Papers | 2,5 |
| Water treatment system (for industrial waste water) | VI | Viña Selentia S.A. Winery | 2 |
| Water treatment system (for industrial waste water) | X | Río Dulce S.A. Fishery | 2 |
| Water treatment plant (for industrial waste water) | RM | Everscrisp Snack Products Chile S.A. | 1,8 |
| Extension of the water treatment plant (for industrial waste water) | X | Linao Ltda. Salmon fishery | 1,7 |
| Water treatment system (for industrial waste water) | IX | John Aleck Kleinsteuber Wilson Fishery | 1,6 |
| Water treatment system (for industrial waste water) | VII | Industrias Vínicas S.A. Winery | 1,5 |
| Water treatment at the fish oil and flour processing plant. | XI | Pesca Chile S.A. Fishery | 1,5 |
| Water treatment plant (for industrial waste water) | VIII | Industrias Chilenas de Alambre S.A. Wires | 1,2 |
| Water treatment plant (for industrial waste water) | XII | RESITEC Environmental company | 1 |
| Water treatment plant (for industrial waste water) | RM | Industrial and Navy Services SENAVIN | 1 |