Bogotá Municipal Water Treatment Network
WaterLow Risk

Bogotá Municipal Water Treatment Network

Colombia · Latin America · Availability-Based

Deal Size

$390M

Target IRR

8–11%

PPP Model

Availability-Based

Concession Term

20 years

Stable YieldESG-Aligned

Deal Summary

Upgrade and operate three existing water treatment plants serving 2.4 million residents in southern Bogotá. Government pays availability-based service fees. The operator absorbs O&M risk; government retains demand and tariff risk.

Background

40% of Bogotá's water infrastructure dates to the 1970s. Non-revenue water losses average 32%. The project targets a reduction to under 15% through pipe rehabilitation and smart metering, directly improving fiscal performance of the public utility.

Project Milestone Timeline

Feasibility Complete

Q3 2024Completed

Procurement Launch

Q1 2025Completed

Preferred Bidder

Q3 2025In Progress

Financial Close

Q1 2026Upcoming

Construction Start

Q2 2026Upcoming

Full Operations

Q1 2028Upcoming

Key Deal Risks & Mitigation

Government payment capacity

Low

Payment from utility tariff revenue; escrow account

COP/USD currency

Medium

CPI-indexed local currency payments; hedging instruments

Technical performance risk

Low

Performance bond; O&M reserve account

Regulatory tariff freeze

Medium

Stabilization clause in concession agreement

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