The project entails financing to the Municipality of Guatemala City (“MGC”) to address the city’s infrastructure bottlenecks by funding capital expenditures in (1) water infrastructure, such as small greenfield water treatment plants (“WTP”), as well as the rehabilitation and expansion of existing WTPs managed by the municipal water company EMPAGUA; (2) modernizing the city’s traffic light system through the installation of smart traffic lights and associated software and infrastructure upgrades to the existing control center, managed by the MGC’s Regulatory Entity for Transportation and Traffic - EMETRA and (3) assessing the feasibility of installing urban cycling routes and the deployment of a public bicycle system, managed by the Department of Urban Mobility, Planning Management of the MGC (together, the Project).

 As part of this transaction, IFC delivers essential advisory services to MGC and EMPAGUA (the Municipal Water Company of MGC, Empresa Municipal de Agua), supporting the municipality's ambitious water resiliency investment plan. Through this engagement, IFC will assist them in conducting fieldwork, creating preliminary designs, and formulating technical specifications for the bidding documents required for contractor procurement. Considering the complexity of the water projects and MGC's limited experience with infrastructure enhancement initiatives, these advisory services are crucial in mitigating technical risks ensuring cost competitive procurement for vital infrastructure. IFC has engaged an international consulting firm to support MGC in achieving the Project's objectives. The studies are scheduled to commence beginning of September 2024 and are anticipated to last 5 to 6 months. The project is climate-tagged, with 33.79% of the project addressing climate-driven water scarcity.

Sustainable Infrastructure Advisory has also been exploring additional advisory support for EMPAGUA to address community-level aspects related to preserving water sources, responsible water use, and recognizing the actual cost of water services. Initial discussions with the client have highlighted critical areas of potential support, such as education, communications, and community monitoring mechanisms. In collaboration with the client, the advisory team will tailor a proposal that effectively addresses these needs