Related Research Articles
Puerto Cortés, originally known as Puerto de Caballos, is a port city and municipality on the north Caribbean coast of Honduras, right on the Laguna de Alvarado, north of San Pedro Sula and east of Omoa, with a natural bay. The present city was founded in the early colonial period. It grew rapidly in the twentieth century, thanks to the then railroad, and banana production. In terms of volume of traffic the seaport is the largest in Central America and the 36th largest in the world. The city of Puerto Cortés has a population of 69,000.
Water privatization is short for private sector participation in the provision of water services and sanitation. Water privatization has a variable history in which its popularity and favorability has fluctuated in the market and politics. One of the common forms of privatization is Public-Private Partnerships (PPPs). PPPs allow for a mix between public and private ownership and/or management of water and sanitation sources and infrastructure. Privatization, as proponents argue, may not only increase efficiency and service quality but also increase fiscal benefits. There are different forms of regulation in place for current privatization systems.
Railroads in Honduras were built in late 19th and early 20th centuries by two competing U.S. corporations - United Fruit and Standard Fruit. All were in the Caribbean coastal area and never reached the capital. In 1993, the combined network had 785 km. At present (2006), only three separate segments remain in operation under the management of FNH - Ferrocarril Nacional de Honduras:
Water supply and sanitation in Latin America is characterized by insufficient access and in many cases by poor service quality, with detrimental impacts on public health. Water and sanitation services are provided by a vast array of mostly local service providers under an often fragmented policy and regulatory framework. Financing of water and sanitation remains a serious challenge.
This article has been written in 2007 with partial updates since then, including most recently concerning access in 2012. Please feel free to update it further. The Spanish article includes some more up-to-date information.
Water supply and sanitation in Colombia have been improved in many ways over the past decades. Between 1990 and 2010, access to improved sanitation increased from 67% to 82%, but access to improved water sources increased only slightly from 89% to 94%. In particular, coverage in rural areas lags behind. Furthermore, despite improvements, the quality of water and sanitation services remains inadequate. For example, only 73% of those receiving public services receive water of potable quality and in 2006 only 25% of the wastewater generated in the country underwent any kind of treatment.
Public water supply and sanitation in Germany is universal and of good quality. Some salient features of the sector compared to other developed countries are its very low per capita water use, the high share of advanced wastewater treatment and very low distribution losses. Responsibility for water supply and sanitation provision lies with municipalities, which are regulated by the states. Professional associations and utility associations play an important role in the sector. As in other EU countries, most of the standards applicable to the sector are set in Brussels. Recent developments include a trend to create commercial public utilities under private law and an effort to modernize the sector, including through more systematic benchmarking.
Access to at least basic water increased from 94% to 97% between 2000 and 2015; an increase in access to at least basic sanitation from 73% to 86% in the same period;
Drinking water supply and sanitation coverage in Honduras has increased significantly in the last decades. However, the sector is still characterized by poor service quality and poor efficiency in many places. Coverage gaps still remain, particularly in rural areas.
Drinking water and sanitation in Nicaragua are provided by a national public utility in urban areas and water committees in rural areas. Despite relatively high levels of investment, access to drinking water in urban areas has barely kept up with population growth, access to urban sanitation has actually declined and service quality remains poor. However, a substantial increase in access to water supply and sanitation has been reached in rural areas.
Drinking water supply and sanitation in Argentina is characterized by relatively low tariffs, mostly reasonable service quality, low levels of metering and high levels of consumption for those with access to services. At the same time, according to the WHO, 21% of the total population remains without access to house connections and 52% of the urban population do not have access to sewerage. The responsibility for operating and maintaining water and sanitation services rests with 19 provincial water and sewer companies, more than 100 municipalities and more than 950 cooperatives, the latter operating primarily in small towns. Among the largest water and sewer companies are Agua y Saneamientos Argentinos (AYSA) and Aguas Bonarenses S.A. (ABSA), both operating in Greater Buenos Aires, Aguas Provinciales de Santa Fe, and Aguas Cordobesas SA, all of them now publicly owned. In 2008 there were still a few private concessions, such as Aguas de Salta SA, which is majority-owned by Argentine investors, and Obras Sanitarias de Mendoza (OSM).
Water supply and sanitation in Venezuela is currently limited and many poor people remain without access to piped water. Service quality for those with access is mixed, with water often being supplied only on an intermittent basis and most wastewater not being treated. Non-revenue water is estimated to be high at 62%, compared to the regional average of 40%. The sector remains centralized despite a decentralization process initiated in the 1990s that has now been stalled. Within the executive, sector policies are determined by the Ministry of Environment. The national water company HIDROVEN serves about 80% of the population.
The Dominican Republic has achieved impressive increases in access to water supply and sanitation over the past two decades. However, the quality of water supply and sanitation services remains poor, despite the country's high economic growth during the 1990s.
The privatization of water and sanitation services in Argentina between 1991 and 1999 under the government of Carlos Menem was part of one of the world's largest privatization programs. Water and sanitation concessions with the private sector were signed in 28% of the country's municipalities, covering 60% of the population.
Private sector participation in water supply and sanitation in Colombia has been more stable and successful than in some other Latin American countries such as Argentina or Bolivia. According to the World Bank, between 1996 and 2007, more than 40 water and sanitation service provision contracts have been awarded to private or mixed companies in Colombia, serving a combined population of 7.3 million or more than 20% of the urban population. According to the Colombian water regulator, there were even more public-private partnerships for water and sanitation in Colombia in 2004: 125 private and 48 mixed public-private water companies, including large, medium and small companies. Most of the contracts were awarded in poor municipalities with highly deteriorated infrastructure. They relied mainly on public funding, complemented by limited private funding. The design was based on the central government providing grants in the start-up years to rehabilitate deteriorated systems and to expand access, while the contracting municipal governments also made budgetary transfers on an annual basis to complement revenues. Colombia thus departed from the standard concession approach, which requires private concessionaires to finance investments with their own resources.
Water privatization in Gayaquil began with the decision taken in 1995 to privatize drinking water supply and sewerage in Guayaquil, the largest city and economic capital of Ecuador, through a concession contract. In preparation for privatization, the previously separate water and sewer utilities were merged into a single utility in 1996. The new utility began a modernization process and began to improve its performance. In parallel, the international bidding for the concession was prepared by Banque Paribas as the international advisor and was supported by the Inter-American Development Bank. The latter made a loan that was signed in October 1997 conditional upon the decision to award a concession. The 30-year concession agreement between the city government and the private company Interagua was signed in 2001. The contract was "poor-friendly", requiring the private company to keep tariffs constant for the first five years and to connect new users in poor areas "at no cost". At the same time, the former municipal water and sewer utility ECAPAG became the regulatory agency for the new private utility. Interagua is a consortium led by the Spanish company Proactiva Medio Ambiente, which in turn is supported by the Spanish construction firm FCC and the French water company Veolia Environnement. In 2012 the regulator ECAPAG was transformed into the Municipal Public Drinking Water and Sanitation Company of Guayaquil in what may be a first step towards the municipalization of the concession.
Water privatization in Metro Manila began when the then President of the Philippines, Fidel Ramos, instructed the government in 1994 to solve what he called the water crisis in Manila by engaging with the private sector. In 1997, two concession contracts for the Eastern and Western halves of Metro Manila were awarded after an open competition. The concessions represent the largest population served by private operators in the developing world. Both winning companies, Maynilad Water Services in West Manila and especially Manila Water in East Manila, submitted bids with extremely low water tariffs. The tariffs proved to be too low to finance the investments needed to improve performance, especially after the East Asian financial crisis and the devaluation of the Filipino Peso.
The debate about water supply and sanitation in Mendoza has been dominated by the controversial private concession for the provincial water company OSM granted in 1998 to a consortium led by Enron. While the concession improved water and sanitation services, it failed to meet all its specified targets. After the collapse of Enron the concession was overtaken by Argentine investors.
Water supply and sanitation in Morocco is provided by a wide array of utilities. They range from private companies in the largest city, Casablanca, the capital, Rabat, Tangier, and Tetouan, to public municipal utilities in 13 other cities, as well as a national electricity and water company (ONEE). The latter is in charge of bulk water supply to the aforementioned utilities, water distribution in about 500 small towns, as well as sewerage and wastewater treatment in 60 of these towns.
The water and sewer system of Bucharest, the capital of Romania with a population of 2.3 million, was privatized in 2000 through a 25-year concession to the French company Veolia. The impact of the concession is mixed. During the first years almost 3,000 employees were laid off and water bills increased four-fold. There were improvements in service quality and efficiency, but most of the improvements occurred before privatization and improvements in service quality since privatization are not well documented. Privatization placed the burden of financing the renewal of the infrastructure directly on water consumers rather than on taxpayers. The private water utility owned by Veolia, Apa Nova București, is considered one of the most profitable Romanian utilities.