Institutional Arrangement
Investement Cycle
1
2
3
4
5
6
7
8
9
10
1
Planning
CONAGUA establishes short, medium and long term sectorial programs, following the guidelines of the National Water Plan (PNH) 2014-2018, which is the document that rules the national water policy. The PNH is a special program derived from the National Development Plan 2013-2018 and the Sectorial Environment Program 2013-2018.
2
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.
3
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.
4
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.
5
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.
6
Autorización
- Projects that require federal funds are authorized by the House of Representatives.
- Projects with funding from FONADIN /PROMAGUA are authorized by the Fund.
7
Promotion
CONAGUA, basin administrations and state and local agencies are responsible for the promotion of the projects.
8
Bidding
The bidding process is responsibility of CONAGUA, basin administrations and state and local agencies, and the process must be registered in CompraNet.
9
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.
10
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.
