The mayor of Guayaquil, Jaime Nebot, announced last Wednesday that the Public Municipal Water and Sewer Company will initiate the termination of the concession contract of Interagua for breaching.
Nebot explained that Interagua would have informed the Municipality that it would suspend its investments in Guayaquil unless a new rate to cubic meter (currently 0.556 cents), was established.
“The Municipality agrees not to raise rates as intended. It’s not the first angry contractor that I face. Guayaquil is not anyone’s colony. Stopping Investments goes against the contract,” said Nebot.
He also noted that Interagua has 60 days to answer about the termination of the contract, which if given, the Municipality will demand its proper compensation for damages and will procced to appoint a receiver to start the process of termination.
Interagua has been concessionaire to the water and sanitation service of the city since 2001. The concession expires in 2031. (MZ)