Approaches to the financial evaluation of the “El Ahogado” wastewater treatment plant in Jalisco, Mexico

Abstract

Purpose: To generate financial feasibility indicators for the "El Ahogado" wastewater treatment plant project in Jalisco, Mexico, as an integral part of the water sanitation system in the Guadalajara Metropolitan Area (AMG). Metodology: Model of Public-Private Partnerships (PPP) for the development of social infrastructure works. A research object is adapted to a retrospective case study for its current application in Mexico. The financial feasibility analysis includes an evaluation of the financial costs regarding the revenues and subsidies delivered to the developer periodically and those received for water recovery per month. Contribution: This study allows us to conclude that for the financial conditions for the development or private capital in the “El Ahogado” treatment plant project, it was not financially viable given the maintenance and operation costs required in this infrastructure.