June 25 (Bloomberg) -- Hyflux Ltd., Singapore’s largest water company by market value, will make its first foray into Latin America in an agreement with Banco Interacciones SA to explore water and infrastructure projects in Mexico.
The country offers opportunities for expansion because of its water modernization and infrastructure plans, Hyflux Chief Executive Officer Olivia Lum said in Singapore today after signing the accord with the Mexican bank.
“It’s very important for us to enter a country where there is political will for water rights,” Lum said. “Mexico can provide us with very immediate water opportunities and it has a committed program in water infrastructure in place.”
Mexico is planning more than 200 federal and municipal water projects in a five-year plan to secure supplies, said Banco Interacciones CEO Gerardo Salazar Viezca. Each project could cost $10 million to $150 million, he said.
Demand is especially high in Mexico for wastewater treatment expertise, Lum said.
Banco Interacciones, which Lum said has been involved in 60 percent of Mexico’s water-treatment projects the past decade, will tap its local contacts and knowledge to introduce potential projects and investment opportunities to Hyflux, Salazar said. It will also provide financing support, he said.
The bank, a unit of Mexico City-based Grupo Financiero Interacciones SA, has identified two projects for Hyflux, Lum said, declining to elaborate.
“We’ve got to keep up with their pace because they’re going to refer a lot of projects to us to look at,” Lum said of the partnership.
To contact the reporter on this story: Sterling Wong in Singapore at firstname.lastname@example.org