Background on the Comisión de Agua Potable y Alcantarillado (CAPA)
The Comisión de Agua Potable y Alcantarillado (CAPA) is a state-run organization in Quintana Roo, Mexico, responsible for providing clean water and sanitation services to the region’s residents. CAPA has been facing financial challenges, including a significant debt burden that was initially contracted in 2015 for 506 million pesos over 15 years.
Debt Refinancing and Extension
In a late-night session, the Congress of Quintana Roo approved an initiative to refinance and restructure CAPA’s debt, which currently stands at 279.5 million pesos. This move extends the debt repayment period by an additional 15 years, pushing the new maturity date to 2040.
Improved Credit Rating and Interest Rates
The refinancing proposal, sent by Governor Mara Lezama, highlights Quintana Roo’s improved credit rating. This improvement will enable CAPA to secure more favorable interest rates on its debt, which currently poses challenges in meeting water service obligations due to limited modernization capacity.
Resource Allocation for Public Investment
Technical representatives from CAPA’s Hacienda, Presupuesto y Cuenta team explained that this renegotiation will free up resources for public investment, without incurring additional debt. The revised terms will also improve interest rates and payment profiles, aligning with CAPA’s needs and ensuring efficient use of public funds.
Debt Terms and Government Guarantee
The refinanced debt will continue to be repaid using CAPA’s own revenues, but it will now have the backing of the Quintana Roo state government. This guarantee is equivalent to 2% of the federal participations received by the state, similar to the original credit terms.
Key Questions and Answers
- What is CAPA and what does it do? The Comisión de Agua Potable y Alcantarillado (CAPA) is a state-run organization in Quintana Roo, Mexico, responsible for providing clean water and sanitation services to the region’s residents.
- Why was the debt refinanced? The debt was refinanced to take advantage of Quintana Roo’s improved credit rating, which will help CAPA secure more favorable interest rates and better align payment terms with its needs.
- How will this impact CAPA’s operations? The refinancing will free up resources for public investment, allowing CAPA to modernize its infrastructure and better meet water service obligations.
- What guarantees the refinanced debt? The refinanced debt will be backed by the Quintana Roo state government, with a guarantee equivalent to 2% of the federal participations received by the state.
