Riviera Maya, Q.R. — Water company Aguakan says they will accept an early termination of their contract in exchange for “fair compensation.” The company made the announcement Wednesday night after a press conference by the State Secretary Wednesday evening.
Their letter was also released the same day President Claudia Sheinbaum suggested the company surrender their concession. On Wednesday morning, Sheinbaum referred to Aguakan’s service as “abuse” due to the high rates charged for water.
During her press conference, Sheinbaum said the best solution would be for the company to surrender the concession since “you cannot do business with water.”
“You cannot do business with water. Water is a human right (…) privatizing it so that a private company can make a profit, assuming that it will operate better, has not worked and does not make sense, and even less so in this case,” the president emphasized.
Desarrollos Hidráulicos Cancún (DHC-Aguakan) has since responded saying “in line with President Sheinbaum’s statements, the company would be willing to terminate its concession early provided that this process is carried out within the legal and transparent framework and with fair compensation, based on market valuation.”
Aguakan has also said “it is important to clarify that the rates for drinking water and sewerage services are not determined by Aguakan. These are established by the Government of the State of Quintana Roo, through the Commission of Drinking Water and Sewerage (CAPA).
“The rates are uniform in the 11 municipalities of the state, including the four in which Aguakan operates (Benito Juárez, Playa del Carmen, Puerto Morelos and Isla Mujeres) and those managed directly by CAPA.”
In December 2014, the Aguakan Concession Title was modified, extending its validity and incorporating the municipality of Solidaridad. This process was approved by the Board of Directors of the State Commission for Potable Water and Sewerage (CAPA), the council of each of the municipalities, the local Congress and the state Executive.
On Wednesday evening, State Secretary Cristina Torres Gómez led a press conference to set out the position of the government of Quintana Roo regarding allegations of harassment made by Aguakan executives.
Torres said the latest legal battle is not about harassment but is due to social discontent accumulated over many years. She went on to point out that the company has been found guilty of numerous irregularities including a lack of water supply for long periods of time, water rationing, lack of attention to leaks, improper charges, poor management of sanitary drainage and charging for water trucks when they do not properly supply the water.
A public consultation also resluted in a majority of citizens favoring to end their concession.
“That is why, since the beginning of the current administration, the social demand that the State should ensure the effective and legal implementation of the concession, as well as its termination, has been addressed.
“Therefore, various technical, financial, accounting and fiscal audits have been carried out as well as audits of the operation of the concession, the analysis of water samples, visits to wastewater treatment plants, which allowed us to detect various irregularities and, as a consequence, the filing of the corresponding complaints,” Torres detailed Wednesday.
According to Torres, the concession that was granted in the 1990s was illegally extended in 2014, until 2053 and expanded to an additional municipality (Solidaridad).
As a result, on May 16, 2024, the State Government filed a complaint with the Attorney General’s Office of the Republic which, after compiling the corresponding investigation file, determined that there were sufficient elements against executives of the DHC company.
The competent Federal Judge determined that there is evidence proving the crime of Promoting Illicit Conduct since on December 5, 2014, company executives illegally managed the extension of the concession for another 30 years in exchange for the payment of 1,055 billion pesos, since the State Government did not have the authority to oblige itself to manage an extension and expansion of a concession in this matter, which corresponds solely and exclusively to the Municipalities and the State Congress.
That as a result of the illegal management afterwards and without following the legal procedures, they continued with this illegality generating multimillion-dollar profits for said company without being reflected in the quality and quantity of the services provided to the citizens.
Based on the above facts and as is public knowledge, a federal judge issued arrest warrants upon finding sufficient elements for the crimes of operations with proceeds of illegal origin and promotion of illegal conduct by public servants against Aguakan directors.
With regard to the health and environmental impacts of the people of Quintana Roo, resulting from the illegal exploitation of the concession, the National Water Commission, CAPA, as well as epidemiologists from IMSS-Bienestar, the Ministry of Health and specialized laboratories carried out various samplings of drinking water in schools, hospitals, churches, homes and wastewater treatment plants operated by the concessionaire DHC, resulting in very serious health and environmental impacts, such as the following:
The presence of contaminants in parameters outside the permissible limits of the applicable Mexican Official Standards was detected in drinking water, which represents an imminent risk to the health of the population, being toxic to human beings.
With regard to wastewater, elements were detected that exceed the permissible limits set by the applicable Mexican Official Standards, containing E-coli and fecal coliforms well above the permitted levels, which, under these conditions, once returned to the ecosystem and injected into the water table, cause irreversible damage to the environment.
After the two press conferences Wednesday, the company released a statement saying in part, “Aguakan reiterates its commitment to transparency, legality and quality service for the benefit of the inhabitants of Quintana Roo, as well as to the protection of the assets of Mexican workers invested in our company.
“The company is willing to collaborate in the early termination of our concession provided that the legal frameworks are respected and a fair and equitable process is guaranteed for all parties involved.”
