4º WORLD WATER FORUM Session FT3.17 Governance for local water and sanitation services – Needs of cities in developing countries and responses from international iniciatives. “Water supply and sanitation services in Latin America” Mexico City, March 2006 Javier Mijangos Director of DINOSA AIDIS Juan Pablo Schifini Vice President of AIDIS’ IV Region

THE LATIN AMERICAN COUNTRIES ARGENTINA BRASIL CHILE PARAGUAY URUGUAY BOLIVIA PERU ECUADOR VENEZUELA COLOMBIA PANAMA COSTA RICA NICARAGUA HONDURAS NICARAGUA EL SALVADOR GUATEMALA MEXICO REPUBLICA DOMINICANA CUBA PUERTO RICO

OVERVIEW OF WATER SUPPLY AND SANITATION IN LATIN AMERICA 499 2% 14% 12% 14,5% 85% 78% Total of Population (Million) Rate of increase Illiterate women Illiterate men Homes under poverty line Access water (population)* Access sanitation (population) ** *With access to water - quality water not identified (PAHO) **include latrines, wells, etc. Not only sewerage systems (PAHO)

COVERAGE SERVICE QUALITY INFRAESTRUCTURE NEED OF INVESTMENTS WATER RESOURCES NEED OF NEW SERVICES WATER LOSSES MAINTENANCE Developed Countries > 95 % Guaranteed Suitable Low Assessed < 20 % Low Suitable Latin American Countries < 80 % Need control Insufficient High Not assessed (in most cases) > 40 % Without control Deficient DIFFERENCES BETWEEN COUNTRIES

DIFFERENCES BETWEEN COUNTRIES II PLANNNG SERVICE PROVIDER COMPANY TARIFF COMPANY RISKS POLITICAL INFLUENCE SOCIAL NEEDS Developed countries Continuous Steady The operation costs and financial support are covered Low L.A. countries Dicontinue Unsteady Low High Very High

CHARACTERISTICS OF THE SERVICES Are mainly a local services The services are a continuous industrial activities. The services are a monopoly The profit (internal return rate), is low The waterworks are hidden

The water is a social good SOME CONSIDERATIONS (that should be taken into account) The water is a natural – environment - resource The water is an economic good The fresh water is a world strategic good The drinking water management has a political dimension The comunity participation is important

In Latin America the water was considered only as a social good, and therefore the services were provided by public organisations (monopoly), without regulation nor control. During the later 20th Century began to consider the water as natural resource, and rise the awareness to the environment protection. Now the water is considering as an economic good, plus the social good and natural resources. HISTORICAL CHANGES OF THE WATER CONCEPT

There is a political need to adjust the institutional model to compliance both, social and environment objectives. In many countries the sectorial development was delayed by the not comprehension of above need by the decision makers. Those needs should be taken into account by the decision makers. NEED TO ADJUST THE INSTITUTIONAL MODEL

Long term Planning Control of the monopoly Regulation and control of the quality services. Separation of functions INSTITUTIONAL MODEL PROPOSALS

ACTUAL SITUATION Many goverments institutions have influence over the water and wastewater services management and, in most cases, there is not institutional coordination. The provider must to compliance a lot of regulations at different levels (National, State, Municipal) In most cases the authorities, as well the operators, provide not trusting information. The relationship between the Government and operators must to be taken by the decisión makers

ACTUAL SITUATION II There is not planification on the water resources management Operators draw up the regulations The new investments are mainly targeted to the sewerage and wastewater treatment plants.

The water supply and sewerage services are working as a branch of other strongest sectors like:  Public Health  Public Works  Environment  Water Resources SUBSECTOR APS ACTUAL SITUATION III

ACTUAL SITUATION IV Water and sanitation have been never considered a relevant sector. So: There is a low technical assistance There is a low investment There is a low trainning It needed means and tools to become the water supply and sewerage services as a relevant sector to National level.

SOME CONSIDERATION (to be taken into account) II The water supply and the wastewater services should to be an independent sector linked directly with the government authority who develops the national policies The water supply and wastewater sector should participate directly in its actions planning, (in the framework of the national planning)

TOPICS AFFECTING THE SECTOR PUBLIC HEALTH RESTRICTIONS ENVIRONMENT RESTRICTIONS BASIN RIVERS INADEQUATE MANAGEMENT POLITICAL INTERVENTION INADEQUATE FINANCIAL INADEQUATE PRIORITIZATION OF THE NATIONAL PLANNING INADEQUATE PRIORITIZATION OF THE WATER USES ASSIGNMENT INADEQUATE REGULATION AND CONTROL

SOME CONSIDERATIONS (to be taken into account) III: The concession of the water uses should to be given by the water resource management’ authority. This authority is not in charge of the water and wastewater services sector. The concession of the services must to be given by the owner of the services (national, provincial or municipal), with the ageement of the regulatory authority. If these concepts are not clear, there is a serious risk to be taken as such by laws and decrees, as well the press and the population. If so, would affect seriously the services operation. This is a most common situation in many L.A. countries Concession of water use Concession of services

Thanks for your attention…!!! Mr. Javier Mijangos Tel: (+54-11) /8646