Last review: November, 2024
Banobras offers interested parties information on the sector in Mexico with data from various sources in order to provide knowledge on the subject and useful elements for decision-making at the sectoral level. The content presented does not reflect the position of Banobras.
Current status
In Mexico, the National Water Commission (Conagua) is responsible for water management and carries out its functions through 13 basin organizations, which correspond to the hydrological-administrative regions (RHA) composed of groupings of watersheds, considered basic units for managing water resources.
The municipalities that make up each RHA are specified in the Territorial Circumscription Agreement of the Basin Organizations, published in the Official Federal Gazette on April 1, 2010. In federal entities where there are no offices of the Basin Organizations, Conagua has Local Directorates.
According to the document “Water Statistics in Mexico 2023-2024” by Conagua, Mexico has a total of 461,640 million cubic meters of renewable water, which averages to 3,569 cubic meters per inhabitant per year. However, water availability varies significantly by geographic location. The northern, central, and northwestern regions host the majority of the population and economic activity, yet have significantly lower renewable water availability compared to the southeastern region.
The distribution of the volumes granted for consumptive uses reflects the allocation of water resources according to different sectoral needs:
Source: CONAGUA, 2023
- 76% Agriculture
- 15% Public Supply
- 5% Self-supplied Industry
- 4% Electric Power (excluding hydroelectric)
Similarly, within the hydraulic infrastructure available in the country to provide the necessary water to different national users, the following was available as of 2023:
- Approximately 6,500 storage dams and reservoirs.
- 6.7 million hectares with irrigation.
- 2.8 million hectares with technified rain-fed agriculture.
- 96.1% of the population has access to drinking water.
- 93.8% of the population has access to sewage systems.
- 984 drinking water treatment plants in operation.
- 2,872 municipal wastewater treatment plants in operation.
- 3,745 industrial wastewater treatment plants in operation.
- Over 3,000 km of aqueducts.
The area with irrigation infrastructure is approximately 6.6 million hectares, of which 3.3 million correspond to 86 irrigation districts (DR) and the remaining 3.3 million to nearly 51,000 irrigation units (UR). The DR are irrigation projects developed by the Federal Government, including storage reservoirs, direct diversions, pumping plants, wells, canals, and roads, among others. The UR are agricultural areas with infrastructure and irrigation systems distinct from the irrigation districts, generally covering smaller areas.
For the agricultural year 2021-2022 in the irrigation districts (DR), the main crops by harvested area were corn, wheat, sorghum, alfalfa, sugarcane, and beans, which together accounted for 54.9% of the harvested area. These six crops represented 60.6% of the production in tons and 49.6% of the production value in thousands of pesos.
Municipal water treatment plants improve the quality of water from surface or groundwater sources to make it suitable for human consumption. In 2022, 113.9 m³/s were treated in 988 treatment plants.
Additionally, Conagua has the National Water Information System (SINA) website, which offers an interactive map of the status of water resources in Mexico. This site contains various sections dedicated to water management and monitoring:
Institutional Arrangement
In terms of infrastructure, Mexico has a defined strategy that provides investors with medium- and long-term visibility regarding project development, through a series of national and sectoral plans and programs. For more information, please refer to the following documents:
National Development Financing Program 2020-2024
National Water Program 2020-2024
Organizational Structure
Description of the hierarchy and roles of the different entities and actors involved in the sector, including how the different institutions and agencies coordinate and collaborate.
Ministry of Environment and Natural Resources (SEMARNAT)
It is the federal government agency and authority responsible for the sector, tasked with integrating criteria and instruments into various areas of society and public functions to ensure the optimal protection, conservation, and utilization of the country’s natural resources, thus forming a comprehensive and inclusive environmental policy aimed at achieving sustainable development.
National Water Commission (CONAGUA)
A decentralized body of SEMARNAT responsible for preserving national waters and their inherent public assets for sustainable management and ensuring water security, with the responsibility shared among different levels of government and society as a whole.
Basin Organizations
Local Offices
Mexican Institute of Water Technologies (IMTA)
A decentralized body of SEMARNAT focused on addressing national and regional challenges related to water management and shaping new approaches in research and technological development to protect the resource and allocate it efficiently and equitably among different users.
State and Municipal Organizations
Local authorities responsible for providing the public services related to the supply of drinking water and sewage at the state and municipal levels. According to the Political Constitution of the United Mexican States, municipalities are in charge of functions and public services related to drinking water, drainage, sewage, treatment, and disposal of wastewater.
FONADIN - PROMAGUA
The Federal Government, through the National Infrastructure Fund (FONADIN), created the Water Operator Modernization Program (PROMAGUA), which supports the structuring and financing of water projects through Public-Private Partnership (PPP) schemes.
Legal system
The compilation of international treaties, laws, regulations, decrees, agreements and federal, state and municipal provisions shown here are for informational purposes and for ease of reference:
SEMARNAT / CONAGUA
National Waters Law
Source: CONAGUA, Water Statistics in Mexico, 2023
Investment cycle
The following section provides an overview of the project development process from initial planning to final execution.
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Planning
CONAGUA establishes short, medium and long term sectorial programs, following the guidelines of the National Water Plan (PNH) 2020-2024, which is the document that rules the national water policy. The PNH is a special program derived from the National Development Plan 2020-2024 and the Sectorial Environment Program 2020-2024.
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Identification
CONAGUA identifies water projects to be developed, based on planning documents. Unsolicited proposals of PPP projects should be aligned to this plans. At a subnational level, FONADIN’s Program to Modernize Water Operating Water Agencies (PROMAGUA) provides support for project identification.
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Structuring
The Planning Deputy Direction of CONAGUA structures the projects to be developed, by identifying the needs of the sector. Subnational projects benefited by PROMAGUA are structured with FONADIN’s assistance.
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Registration
For those projects that require federal funds (including FONADIN funding), CONAGUA presents a registration application to the Investment Unit of the Ministry of Finance.
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Prioritization
The CIGFD will evaluate the projects that require the allocation of federal funds, and will decide its inclusion in the draft of the annual expenditure budget. Additionally, this commission will determine the prioritization of the projects based on: a) socioeconomic profitability; b) its impact in extreme poverty reduction; c) regional development, and d) concurrence with other programs and investment projects.
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Autorización
- Projects that require federal funds are authorized by the House of Representatives.
- Projects with funding from FONADIN /PROMAGUA are authorized by the Fund.
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Promotion
CONAGUA, basin administrations and state and local agencies are responsible for the promotion of the projects.
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Bidding
The bidding process is responsibility of CONAGUA, basin administrations and state and local agencies, and the process must be registered in CompraNet.
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Financing
Different sources of funds are available for the projects, depending on their particular characteristics and their financial structure, including federal funds or PEF, and funds form FONADIN, BANOBRAS, commercial banks, institutional and private developers, and from institutional investors.
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Execution and Operation
Carried out by the awarded operators and/or developers, under the surveillance of CONAGUA, basin administrations and state and local agencies, according to contract terms.
Projects
Information on new projects (pre-investment, bidding and execution) and in operation within the Mexico Projects Hub platform, which at some stage of the project were considered investment opportunities and do not necessarily have Banobras / Fonadin participation.
New Projects
| Proyect | Sector | Subsector | Stage | Sustainability | Ally Networks |
| 0942 Durango Potabilization Plant | Water and Environment | Water Supply | Execution | Yes | Yes |
| 0912 Expansion of the “El Ahogado” WWTP | Water and Environment | Water Sanitation | Execution | Yes | Yes |
| 0016 Desalinization Plant of Los Cabos, Baja California Sur | Water and Environment | Water Supply | Execution | Yes | Yes |
| 0015 Water Management of Los Cabos, B.C.S. Integral Improvement | Water and Environment | Water Management | Execution | Yes | Yes |
Projects in Operation
| Proyect | Sector | Subsector | Sustainability | Ally Networks |
| 0840 WWTP El Ahogado | Water and Environment | Water Sanitation | Yes | Yes |
| 0839 Desalination Plant of Ensenada | Water and Environment | Water Sanitation | Yes | Yes |
| 0600 WWTP Bahia de Banderas | Water and Environment | Water Sanitation | Yes | No |
| 0599 WWTP Hermosillo | Water and Environment | Water Sanitation | Yes | No |
| 0598 WWTP Atotonilco | Water and Environment | Water Sanitation | Yes | Yes |
| 0010 Desalinization Plant of Guaymas and Empalme, Sonora | Water and Environment | Water Supply | Yes | Yes |
Banobras / Fonadin
- Technical Assistance to States, Municipalities, and Their Organizations: This involves training, workshops, and advisory services for public administration officials aimed at strengthening their management and revenue collection capabilities, as well as project evaluation.
- Training for Officials of Water Operating Organizations: It provides a working methodology that aligns actions for the collection of fees for water supply and drainage discharge from delinquent users, updates the user registry through the detection of irregular connections and derivations, identifies changes in diameter and usage characteristics, analyzes regions by service type for tariff updates, and implements effective procedures in both the short and medium term.
Directory: Promotion Offices
Trust Bussineses
Trust Fund to Support the Mexico Valley Sanitation Project: Its purpose is to cover, using its assets, on behalf of and at the direction of the Technical Coordinator of the Project (the National Water Commission), or the Local Technical Coordinators (Water System of Mexico City and Water Commission of the State of Mexico), the acquisitions, leases, services, and hydraulic infrastructure works in the Metropolitan Zone of the Mexico Valley and its area of influence, or those directly related to these.
Project Development: Banobras offers services aimed at assisting public sector agencies and entities in the development of infrastructure projects.
Financial structuring of the project:
- Elaborate and/or update studies required by the Public-Private Partnerships Law.
- Support in the review of the bidding conditions and contract model.
- Assist in obtaining financing for the project.
- Assist in the registration process of the project in the portfolio of the Investment Unit of the Ministry of Finance and Public Credit (SHCP).
- Assist in dealing with any observations made by the SHCP Investment Unit.
- Support in the financial closing of the project.
Program for the Modernization of Water Operating Organizations (PROMAGUA)
It allocates non-recoverable funds for the partial financing of studies and projects that contribute to the operational and financial sustainability of public entities related to the sector.
Contact: fonadin.agua@banobras.gob.mx
Sustainability
Banobras makes available to interested parties, analysis sheets for the detection of sustainability practices in infrastructure projects, in accordance with the methodological framework “Attributes and Framework for Sustainable Infrastructure” of the Inter-American Development Bank (IDB). Its objective is to highlight sustainable practices, encourage their adoption in future projects and provide relevant information for investors in their economic, environmental, social and institutional dimensions.
To consult the projects that already have a sustainability record, select the “SEARCH CRITERIA>” option in the PROJECTS section, and then select “With Sustainability Analysis”; the projects that have a record will be displayed below.
In addition, Banobras offers an analysis tool that presents the potential relationship of the different infrastructure projects of the Mexico Projects platform with the 17 Sustainable Development Goals (SDGs) of the 2030 Agenda and their targets. This comparative analysis facilitates the use of data according to different criteria, such as the potential impact of projects and sectors against national and global development goals.
The comparison is only made between projects in the same subsector. To select and consult here.
The alignment of a project with the SDGs provides information on the degree of focus on sustainability; it provides a comparison between projects in the same sector and sub-sector and facilitates investment decisions, showing the highest and lowest alignment of projects to the SDGs. Comparative analysis facilitates the use of data according to different criteria, such as the potential impact of projects and sectors against national and global development goals.
In the case of the sector, 11 projects are identified in the platform that have sustainability practices detection sheets, which allows to know, among other things, the projects with more and better alignments to the SDGs. For more information, access the Sustainable Development Goals application:
Greater alignment of the sector:
- SDG 11: Sustainable Cities and Communities
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 12: Responsible Production and Consumption
Reduced alignment of the sector:
- SDG 14: Life Below Water
- SDG 4: Quality Education
- SDG 5: Gender Equality
Ally Networks
Banobras, through its Ally Networks application, provides information on companies participating in competitive public procurement processes for infrastructure projects in Mexico, based on official sources such as CompraNet. It includes details on investment amounts, number of participations in bids, projects awarded, consortiums, and business associations, which allows the user to identify potential actors for the establishment of investments in the country.
To consult the projects that have information on the participating companies, select the option “SEARCH CRITERIA>” in the PROJECTS section, and then select “With applicant companies” at the end of the criteria.
In the application, you can consult on the sector:
- 11 projects
- 69 companies
- 21 consortiums
Reference documents:
This section offers documents, reports and reports with technical, statistical and regulatory information on the sector:
- CONAGUA: Water Statistics in Mexico, 2023
- HR Ratings: Water Stress and Its Main Causes in Mexico
- CONAGUA: Situation of the Drinking Water, Sewage, and Sanitation Subsector
- BBVA Research: Mexico | Water No Longer Passes Through My House: A Review of the Current Water Situation
- Mexican Institute of Water Technology: Annual Report 2022
- UNAM: Water Perspectives in Mexico: Proposals for Water Security 2022
