The housing ministry said that the government will take out a US$30mn loan to finance the design and construction of the new sewerage system for the city, which was hit by deadly landslides earlier this year.
The water utility could be used as a guarantee for loans to be obtained by the Rio de Janeiro state government.
The initiative is fiercely opposed by the local population and the mayor of Til Til announced that it will close another landfill that is currently operating at the area as a way to pressure the authorities.
The so-called 27 de Enero irrigation canal is reportedly the largest water infrastructure project ever developed in Baja California state.
Preliminary studies on the initiative, as well as the relevant environmental impact assessment, have already been completed.
The initiatives include flood prevention works and improvements to public parks.
Some of the projects being developed with these investments are already underway, while contracts for the rest of the initiatives have already been tendered and awarded.
BNamericas spoke with The Nature Conservancy to learn more about water funds, a model the NGO has perfected to involve different stakeholders in the development of solutions for water protection.