Incorporated in 2001, Intergua was awarded in April 2001 a 30-year concession to operate, maintain, and build upgrades for the Guayaquil water, sewer, and drainage systems. The company serves approximately 2.6 million people. After 15 years of concession the potable water system now covers approximately 90% of the population with 24-hour uninterrupted service while wastewater system covers around 71% of the population.
Interagua is owned by Veolia (France) through Proactiva Medio Ambiente (Spain), Hidalgo e Hidalgo (Ecuador), Fanalca (Colombia) and Equivia (Ecuador). Veolia is a world leading provider of water, waste management and energy services, with presence in 48 countries.
Interagua is seeking IIC’s long term financing to cover a portion the current 5-year investment program and to refinance part of its existing short-term and subordinated debt. Interagua’s investment program is targeted to maintain and improve service quality of the existing networks and plants, execute rehabilitation projects, install new potable water and wastewater connections, as well as improve and maintain the rain/storm water management infrastructure. Further commitments include achieving specific service targets related to water pressure, continuity of service, water supply, drinking water and wastewater quality standards. The total 5-year investment will be approximately USD 470 Million, of which 23% is financed by Interagua and 77% by third party funds (including allocation of the national budget to the municipality, municipal taxes, and loans to the municipality, among other funds).
The financing for Interagua will contribute to improve its financial capacity by allowing it to extend its debt profile with a tenor of up to 13 years. Furthermore, the partial financing of Interagua’s investment program will contribute to its efforts to continue improving the efficiency and quality of its water and wastewater services and improve the quality of life of the customers served in the concession area and bring major environmental as well as sanitary and health-related benefits.