1. José Ramón Ardavín, Deputy Director General for Water Supply, Sewerage and Sanitation Mexico City, January 20, 2011

2. 2. Wastewater Treatment Plant El Caracol. 1. El Zapotillo Aqueduct, Jalisco and Guanajuato. 3. Seawater Desalination Plant in Ensenada, Baja California 2 2

3. Project Total Investment (Millions of USD) PSPBid IssueDecision El Zapotillo Aqueduct, Jalisco – Guanajuato 42051% September, 2010 2 nd Quarter 2011 El Caracol WWTP16551% 2 nd Quarter 2011 3 rd Quarter 2011 Seawater Desalination Plant in Ensenada, Baja California 3560% 2 nd Quarter 2011 3 rd Quarter 2011 Total Investment1,00061% 3 3

4. 4 This project will benefit 1.5 million people from both states

5. ConceptData Aqueduct140 km / ø 98 (2,5 m) Pumping Plants2 plants to overcome a 500 m - height Desinfection PlantCapacity of 87 mgd * (3,8 m 3 /s) Storage Tank26,3 mg (100 000 m 3 ) Macro-circuit for water distribution 42,4 km Overview Construction Period2,5 years Operation Period22,5 years Investment, (% PSP)420 m USD, (51%) 5 5 This works will benefit to 1,5 million residents from both states * US Gallons

6. Expected Benefits 6 6 Meeting the current and future drinking water demands of 1,1 million inhabitants in León, Guanajuato, and 400 000 more in Los Altos de Jalisco. To achieve sustainability for the regional aquifers by reducing water extraction for human consumption. Meeting the current and future drinking water demands of 1,1 million inhabitants in León, Guanajuato, and 400 000 more in Los Altos de Jalisco. To achieve sustainability for the regional aquifers by reducing water extraction for human consumption.

7. 7 Land for the WWTP 31 has. Outer circuit State of Mexico Grand Drainage Canal Las Américas mall LyFC 1 ha Polygon 2 22 ha Pumping plant State of Mexico D.F. Location map

8. 8 Description: 1. 1. Catchment of 91 mgd* (4 m³/s) of wastewater from the Grand Canal and the Eastern Drainage Tunnel and piping to the treatment plant in El Caracol inTexcoco. 2. 2. Wastewater treatment plant with two modules: Secondary treatment: for irrigation and soil restoration (23 mgd* - 1m 3 /s), for the Ecological Park of Texcoco Lake (23 mgd* - 1 m 3 /s), and for commercial, industrial and municipal reuse (23 mgd* - 1 m 3 /s). Advanced treatment: for the injection and recharge of aquifers (23 mgd* - 1 m 3 /s). 1. 1. Catchment of 91 mgd* (4 m³/s) of wastewater from the Grand Canal and the Eastern Drainage Tunnel and piping to the treatment plant in El Caracol inTexcoco. 2. 2. Wastewater treatment plant with two modules: Secondary treatment: for irrigation and soil restoration (23 mgd* - 1m 3 /s), for the Ecological Park of Texcoco Lake (23 mgd* - 1 m 3 /s), and for commercial, industrial and municipal reuse (23 mgd* - 1 m 3 /s). Advanced treatment: for the injection and recharge of aquifers (23 mgd* - 1 m 3 /s). Expected Benefits To restore the good conditions of the surface water bodies and streams that receive wastewater

9. 9 Conventional treatment module for irrigation (68 mgd*) Advanced treatment module for recharge (23 mgd*) Headworks Schematic water diagram * US Gallons

10. 10 Components of the Project Investment Wastewater Treatment Plant for the Lake Texcoco Ecological Park and agricultural irrigation 37 for municipal, commercial and industrial reuse 25 for aquifer recharge 103 Total165 Summary of investments Investment, (% PSP)165 m USD, (51%)

11. 11 Océano Pacífico Pacific Ocean

12. ConceptData Desalination Plant (DP)Supplying of 6 mgd (0,25 m 3 /s) Conduction lines: DP to El Gallo El Gallo to Revolution Rejected wate r 17,5 Km 3,2 Km Underwater Discharge pipe 0,9 Km Overview Construction Period2,5 years Operation Period22,5 years Investment, (% PSP)35 m USD, (60%) 12

13. 13 Expected Benefits Meeting the current and future drinking water demands of 96 000 inhabitants in Ensenada, Baja California. To achieve sustainability of regional aquifers by reducing water extraction from pumping wells. Meeting the current and future drinking water demands of 96 000 inhabitants in Ensenada, Baja California. To achieve sustainability of regional aquifers by reducing water extraction from pumping wells.

14. There are more than 800 municipalities in Mexico with more than 20 000 inhabitants, which can be considered in this PSP scheme. It is possible to promote the operation and management of municipal water systems. A number of municipalities can be grouped together to obtain savings. There are more than 800 municipalities in Mexico with more than 20 000 inhabitants, which can be considered in this PSP scheme. It is possible to promote the operation and management of municipal water systems. A number of municipalities can be grouped together to obtain savings. 14

15. 15 Project Capacity (mgd) Capacity (m 3 /s) Total Investment (million dollars) PSP (%) Desalination Plant in La Paz, Baja California Sur 50,23070% Desalination Plant in Guaymas, Sonora 100,44570% Desalination Plants in Tijuana and Rosarito, Baja California 572,525060% Efficiency Improvement Programs: Tuxtla Gutierrez, Chiapas; San Luis Potosí, SLP; Celaya, Guanajuato; Zihuatanejo, Guerrero. -18060% Total Investment, (% PSP)67059%

16. Thank you for your attention. www.conagua.gob.mx Proyectos Estratégicos (Strategic projects) http://www.conagua.gob.mx/CONAGUA07/Noticias/SeguimientoPNI.pdf