Metropolitan area of Monterrey, N.L.
Metropolitan area of Monterrey, N.L.Water and Wastewater Infrastructure Improvements in the Metropolitan Area of Monterrey, Nuevo Leon
Project Status: Pre-construction
General Information
Sector
Water and wastewater
Sponsor
State-owned water utility, Servicios de Agua y Drenaje de Monterrey, I.P.D. (SADM)
Benefited population
5,300,000
Certification date
September 3, 2025
Financing
Project cost
US$103.4 million
NADBank Funds
$16.75 million - loan
Related documents
Background
SADM provides water and wastewater collection services throughout the state, with 99.6% water service coverage and 98.4% wastewater collection service coverage in the metropolitan area of Monterrey. SADM faces challenges in meeting increasing water demand driven by both demographic and economic growth. Persistent drought in the region calls for more efficient water management, including reducing leaks and increasing operational flexibility, as well as expanding systems and rehabilitating infrastructure that has reached the end of its useful life.
Transmission Ring II began operations in 2010 to strengthen water service in the eastern, northern and western zones of the metropolitan area of Monterrey. The ring originates at the San Roque Water Treatment Plant in the eastern zone with 60-inch piping and extends 73 km (45.4 miles) west using 48-inch and 24-inch pipes. The final section of the ring ends in the municipality of Garcia where its capacity to supply the western zone is limited by its size and associated storage infrastructure.
The wastewater collection system has 16,000 km (9,942 miles) of pipeline, with a significant portion of its infrastructure built prior to 1995 using pipes with a useful life of less than 50 years. An estimated 1,200 km (745.6 miles) of the sewer lines in the metropolitan area of Monterrey have exceeded their useful life, with approximately150 km (93 miles) in critical or poor condition, posing health risks due to frequent operational failures and sewage discharges.
SADM developed its 2022-2027 Strategic Plan to increase the efficiency of its water and wastewater systems. To address the priority water and wastewater infrastructure projects identified in the plan, the SADM Board of Directors authorized the execution of one or more loan or other debt transactions.
Scope
The Project consists of improving drinking water and wastewater collection services throughout the metropolitan area of Monterrey. The main project components include:
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Rehabilitation or expansion of approximately 18 km (11 miles) of Transmission Ring II and related infrastructure, including three storage tanks with a capacity of 10,000 m3 (2.64 million gallons) each and civil/electrical works at four pump stations in the western zone.
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Rehabilitation of sewer mains, wastewater lines and drains at 113 locations within the metropolitan area, including the municipalities of Apodaca, Cadereyta, Escobedo, García, Guadalupe, Juarez, Monterrey, Pesqueria, San Nicolas de los Garza and San Pedro Garza García.
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Construction and complementary works for laboratory and operation centers.
Benefits
The project will improve the reliability and sustainability of basic water and wastewater collection services. The proposed waterworks are part of the primary supply system and will therefore have a direct impact on service quality across virtually the entire metropolitan area of Monterrey. Wastewater collection system works will replace infrastructure that has exceeded its useful life and is currently subject to recurring operational failures. The project will also reduce the operating costs associated with frequent repairs to obsolete infrastructure, as well as increase operational and commercial efficiency by reducing potential water leaks in the rehabilitated segments.