Water supply and sanitation in Paraguay

Last updated

Water supply and sanitation in Paraguay
Flag of Paraguay.svg
Data
Water coverage (broad definition)99%
Sanitation coverage (broad definition)94%
Share of self-financing by utilitiesUrban: Nil; Rural: 60% user contribution
Share of tax-financingn/a
Share of external financingn/a
Institutions
Decentralization to municipalitiesNone
National water and sanitation companyYes
Water and sanitation regulatorYes
Responsibility for policy settingMinistry of Public Works and Communications
Sector lawYes
No. of urban service providers1 large public, 500 small private
No. of rural service providers2,500

Despite many years of concerted efforts and achievements in expanding coverage and improving service sustainability, many issues remain to be addressed in the water and sanitation sector. Key issues include: (i) a low level of coverage for both water and sanitation, in particular in rural areas; (ii) a low level of cost recovery, despite a legal obligation for tariffs to recover costs; and (iii) an institutional framework that is only partially effective.

Contents

Access

While coverage levels in urban areas are high using a broad definition of services, the coverage with higher levels of services (house taps and sewers) remains low compared to demand and to other countries in the region.

Water and sanitation coverage in Paraguay (2004)

Urban (58% of the population)Rural (42% of the population)Total
WaterBroad definition99%68%86%
Household connections82%25%58%
SanitationBroad definition94%61%80%
Sewerage16%0%9%

Source: WHO/UNICEF Joint Monitoring Program (JMP/2006). Data for water and sanitation based on Permanent Housing Survey of the Census (2002).

Recent developments

In April 2007 a seminar organized by the Center of Multidisciplinary Entrepreneurial Training (CAEM)-TECMA S.A. and financed by the IDB concluded that the Juntas need to improve their management and improve collection of outstanding bills in order to avoid institutional collapse. Otherwise a “domino effect” could occur and jeopardize the financial stability of SENASA as well as the country's commitments to the World Bank. [1]

Responsibility for water supply and sanitation

Paraguay-CIA WFB Map.png

Policy and regulation

View of El Chaco Chaco Boreal Paraguay.jpg
View of El Chaco

Responsibility for policy formulation is nominally vested in the Ministry of Public Works and Communications and regulation is entrusted to an autonomous entity, the Regulatory Agency for Sanitation (ERSSAN). The institutional framework is codified in Law 1614/00 of 2000 establishing a regulatory and tariff framework for the sector. The law, which created ERSSAN, was drafted with the expectation that private sector participation in the sector would substantially increase, which did not occur.

In practice, the Ministry of Public Works and Communications has not developed sector policies, leaving a vacuum in this important area. The regulatory agency, created for the purpose of regulating prospective private enterprises, has been ineffective at regulating the national public enterprise ESSAP. SENASA also faces many challenges, since it does not have sufficient capacity to provide adequate support to the ever-increasing number of Juntas.

Service provision

Responsibility for water and sanitation service provision in Paraguay in urban areas rests primarily with a national public enterprise, and with more than 1,621 community-managed water associations (Juntas de Saneamiento) in small cities and in rural areas.

The national enterprise, the Empresa de Servicios Sanitarios de Paraguay (ESSAP), is responsible for serving communities with populations of more than 10,000 inhabitants. In rural communities and small towns with less than 10,000 inhabitants water associations provide services, while technical assistance and financing are provided by the National Environmental Sanitation Service (SENASA).

The Juntas are grouped in 10 associations which supply water to more than half of country's population [2] The first Juntas were created with the assistance of the World Bank's first rural water and sanitation loan to Paraguay in 1977, fostering a successful long-term partnership that endures until today.

An interesting phenomenon in Paraguay is the emergence of independent private suppliers, called “aguateros”, since the 1970s. Their efforts account for a significant share of the expansion of urban water coverage in the area of the capital. Aguateros are private, informal service providers who operate small-scale systems with up to 3,000 connections. An estimated 500 private suppliers serve some total of about 500,000 people.

Tariffs and cost recovery

Urban areas

Urban utility tariffs are set below cost recovery levels and are adjusted infrequently, leading to substantial operating losses by the national water and sanitation enterprise. This makes it impossible to finance the investments necessary to further expand coverage and to improve service quality.

Tariffs by Aguateros fully recover costs and compare favorably with tariffs charged by the public sector. These tariffs are not regulated, but to some extent controlled by competition between aguateros serving neighboring areas.

Rural areas

Unlike in many other countries, local Juntas are well organized and do not only recover operating and maintenance costs, but also expand their systems using their own resources and repay a portion of capital costs to the national treasury.

Affordability

According to data collected by the Pan-American Health Organization based on multi-purpose household surveys, the share of water expenditures in household expenditures in urban areas of Paraguay was the lowest among 10 countries in Latin America and the Caribbean in the late 1990s. The share was on average 1.4% and 1.7% for urban households in the poorest income decile, showing an unusually low difference between the average and poor households. [3] These shares are actually the same or even higher in rural areas, reflecting the unusual high levels of cost recovery in rural areas in Paraguay. Rural households spend on average 1.2% on water, and households in the poorest decile in rural areas spend 2.3% on water. Therefore, despite high levels of cost recovery, tariffs apparently remain affordable.

External support

World Bank

As mentioned above, the World Bank’s relationship with the Government of Paraguay and the SENASA on rural water systems goes back for about 30 years. It spans three successfully completed rural water projects: the First, Second, and Third Rural Water Supply and Sanitation Projects (approved on December 13, 1977, June 16, 1981, and September 10, 1992, respectively). As a result, the Bank is one of the institutions most trusted by the Government to assist it in this sector. From 1997 to 2007 the Bank supported the US$ 55.7 million Fourth Rural Water Supply and Sanitation Project (approved on August 28, 1997), which aimed at increasing water supply and sanitation coverage in rural areas. A secondary development objective was to modify SENASA’s role in the sector from an implementer of projects to an efficiently managed promoter of activities.

The World Bank has also supported a pilot project to expand services in small towns by providing subsidies on a competitive basis, which involve “aguateros” as service providers. This experience is summarized in the note entitled Output-Based Aid in Water – Lessons in Implementation from a pilot in Paraguay. [4]

On April 14, 2009, the World Bank approved a $64 million loan for the Paraguay Water and Sanitation Sector Modernization Project. The objective of the project is to increase the efficiency, coverage, and sustainability of water supply and sanitation services in Paraguay by (a) improving the governance of the sector, (b) improving water services and increasing access to sewerage services in the Asunción metropolitan area, and (c) increasing access to sustainable water and sanitation services in rural areas.

Interamerican Development Bank

In 2001 the IDB approved a US$12m loan to support a Small Community Water Supply Sanitation Project executed by SENASA. Until 2007 more than US$7m had been disbursed.

See also

Related Research Articles

<span class="mw-page-title-main">Water supply and sanitation in Latin America</span>

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.

Drinking water supply and sanitation in Ecuador is characterized by a number of achievements and challenges. One key achievement is a significant increase in both access to an at least basic water source and at least basic sanitation. Significant increases in coverage in urban areas were achieved both by the public utility EMAAP-Q, serving the capital Quito, and the private concessionaire Interagua in the country's largest city Guayaquil. However, municipalities rely overwhelmingly upon central government investment, rather than recouping the costs at a local level. Another problem is intermittent water supply, which affects half of the urban areas. Also, only 8% of all collected wastewater is being treated. The level of non-revenue water is estimated at 65%, one of the highest in Latin America. Addressing these challenges is complicated by the atomization of the sector: A multitude of stakeholders – the Ministry of Housing, the Emergency Social Investment Fund, the Solidarity Fund, the State Bank, NGOs, municipalities and others – intervene in the sector. Despite the existence of an Interinstitutional Committee for Water and Sanitation there remains room to improve coordination.

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.

Guyana, meaning "land of many waters", is rich in water resources. Most of the population is concentrated in the coastal plain, much of which is below sea level and is protected by a series of sea walls. A series of shallow reservoirs inland of the coastal plain, called "water conservancies", store surface water primarily for irrigation needs. Key issues in the water and sanitation sector in Guyana are poor service quality, a low level of cost recovery and low levels of access.

Access to drinking water and sanitation in El Salvador has been increased significantly. A 2015 conducted study by the University of North Carolina called El Salvador the country that has achieved the greatest progress in the world in terms of increased access to water supply and sanitation and the reduction of inequity in access between urban and rural areas. However, water resources are heavily polluted and the great majority of wastewater is discharged without any treatment into the environment. Institutionally a single public institution is both de facto in charge of setting sector policy and of being the main service provider. Attempts at reforming and modernizing the sector through new laws have not borne fruit over the past 20 years.

<span class="mw-page-title-main">Water supply and sanitation in Chile</span>

Water supply and sanitation in Chile were once considered efficient and equitable but in 2022 Chile struggled to reliably provide water throughout the country due to drought. Chile's water resources have been strained by the Chilean water crisis, which was partially caused by a continuing megadrought that began in 2010, along with an increased demand for agricultural and other commercial interests.

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.

<span class="mw-page-title-main">Water supply and sanitation in Argentina</span>

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).

Bolivia's drinking water and sanitation coverage has greatly improved since 1990 due to a considerable increase in sectoral investment. However, the country continues to suffer from what happens to be the continent's lowest coverage levels and from low quality of services. Political and institutional instability have contributed to the weakening of the sector's institutions at the national and local levels. Two concessions to foreign private companies in two of the three largest cities—Cochabamba and La Paz/El Alto—were prematurely ended in 2000 and 2006 respectively. The country's second largest city, Santa Cruz de la Sierra, relatively successfully manages its own water and sanitation system by way of cooperatives. The government of Evo Morales intends to strengthen citizen participation within the sector. Increasing coverage requires a substantial increase of investment financing.

Haiti faces key challenges in the water supply and sanitation sector: Notably, access to public services is very low, their quality is inadequate and public institutions remain very weak despite foreign aid and the government's declared intent to strengthen the sector's institutions. Foreign and Haitian NGOs play an important role in the sector, especially in rural and urban slum areas.

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 water and sanitation sector in Peru has made important advances in the last two decades, including the increase of water coverage from 30% to 85% between 1980 and 2010. Sanitation coverage has also increased from 9% to 37% from 1985 to 2010 in rural areas. Advances have also been achieved concerning the disinfection of drinking water and in sewage treatment. Nevertheless, many challenges remain, such as:

Costa Rica has made significant progress in the past decade in expanding access to water supply and sanitation, but the sector faces key challenges in low sanitation connections, poor service quality, and low cost recovery.

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.

<span class="mw-page-title-main">Water supply and sanitation in Jamaica</span>

Water supply and sanitation in Jamaica is characterized by high levels of access to an improved water source, while access to adequate sanitation stands at only 80%. This situation affects especially the poor, including the urban poor many of which live in the country's over 595 unplanned squatter settlements in unhealthy and unsanitary environments with a high risk of waterborne disease. Despite a number of policy papers that were mainly focused on water supply and despite various projects funded by external donors, increases in access have remained limited.

The drinking water supply and sanitation sector in Guatemala is characterized by low and inconsistent service coverage, especially in rural areas; unclear allocation of management responsibilities; and little or no regulation and monitoring of service provision.

Water supply and sanitation in Panama is characterized by relatively high levels of access compared to other Latin American countries. However, challenges remain, especially in rural areas. Panama has a tropical climate and receives abundant rainfall, yet the country still suffers from limited water access and pollution. Intense El Niño periods, periodic droughts, reduce water availability. Multiple factors like urbanization, impacts of climate change, and economic development have decreased water resources. The high frequency of floods in recent years and the lack of corresponding measures resulted in tension among the local population. Rapid population growth in recent decades led to an unprecedented increase in freshwater demand. Regional inequality exists in water resources and water governance. An estimated 7.5-31% of Panama's population lives in isolated rural areas with minimal access to potable water and few sewage treatment facilities.

<span class="mw-page-title-main">Water supply and sanitation in Zambia</span>

Water supply and sanitation in Zambia is characterized by achievements and challenges. Among the achievements are the creation of regional commercial utilities for urban areas to replace fragmented service provision by local governments; the establishment of a regulatory agency that has substantially improved the availability of information on service provision in urban areas; the establishment of a devolution trust fund to focus donor support on poor peri-urban areas; and an increase in the access to water supply in rural areas.

References

Sources