PRIVATE PARTICIPATION PRIVATE PARTICIPATION IN WATER AND IN WATER AND

SANITATION SERVICES SANITATION SERVICES IN MEXICOIN MEXICO

October 2005October 2005

MAIN MAPS TO BE MAIN MAPS TO BE CONSIDEREDCONSIDERED Map of Socioeconomic and hydrologic Map of Socioeconomic and hydrologic

characteristicscharacteristics

Map of political and administrative Map of political and administrative processes in water managementprocesses in water management

Map of main water actorsMap of main water actors

mm

2500

1000

500

250

100

50

Anual average precipitation

772 mm

67% of the rain season occurs from June to September making difficult its

use

Water AvailabilityWater Availability

Escurrimiento

Natural water availability per capita in the southeast of

Mexico is seven times more than in the rest of the country

National Average

4 841 m3/hab/year

National Average

4 841 m3/hab/year

2 044 m3/hab/año

14 291m3/hab/year Population

GDP

68%

32%

23%

77%

14%

86%

Water Availability and Water Availability and

DevelopmentDevelopment

Aquifers OverexploitedAquifers Overexploited

16% of the aquifers are overexploited 16% of the aquifers are overexploited 50% of the underground water 50% of the underground water

utilized in the country in different utilized in the country in different uses comes from overexploited uses comes from overexploited

aquifersaquifers

Water UsesWater UsesEvery year 72 thousand millions of m3 are used in the different

water uses in the country

72 thousand

millions m3

70% of water coverage for the population

Irrigates 1/3 of the irrigated areas in the country

Covers 50% of the water demanded by the industry

70% of water coverage for the population

Irrigates 1/3 of the irrigated areas in the country

Covers 50% of the water demanded by the industrySuperficial WaterSuperficial Water

44 km44 km33

61%61%

Superficial WaterSuperficial Water44 km44 km33

61%61%

Underground Underground Water 28 kmWater 28 km33

39%39%

Underground Underground Water 28 kmWater 28 km33

39%39%

Superficial Water Superficial Water ContaminationContamination

POTABLE WATER POTABLE WATER COVERAGECOVERAGE

Potable water coverage

SEWAGE COVERAGESEWAGE COVERAGE

sewage coverage

Population 1980 Census 1990 Census 1995 Counting 2000 Census

Potable Water

Urban na 89.4 92.4 94.6

Rural na 51.1 62.5 68.0

Total 70.7 78.4 84.6 87.8

Swerage

Urban na. 79.1 87.3 89.6

Rural na 18.1 30.2 36.7

Total 49.1 61.5 72.4 76.2

WATER AND SEWAGE COVERAGE IN MEXICO

(Percentage of population with service )

TOTAL RURAL LOCALITIES IN THE COUNTRY: 63, 795 (LESS THAN 2,500 INHABITANTS)

DESENTRALIZATION AND DESENTRALIZATION AND PRIVATIZATION PROCESSPRIVATIZATION PROCESS

Process of Process of Decentralization of Decentralization of Water ManagementWater Management

Water Management under Federal Government

States

StatesStates

States

State of Aguascalientes

States States

Municipality

Case Study

PrivateParticipation

1994 Private Participationpation process

Political-Institutional Political-Institutional DimensionDimension

Crisis of the 80’s installed two processes:Crisis of the 80’s installed two processes:

– Decentralization to states and municipal governmentsDecentralization to states and municipal governments

– Private participationPrivate participation

The new The new state-society relationship made users participation a legal state-society relationship made users participation a legal

obligation for the new form of government, creating organizations for “users obligation for the new form of government, creating organizations for “users

participation”participation”..

Political-Administrative Political-Administrative ReformsReforms

FederalGovernment

SARH SEDUE SEMARNAP

Irrigation-country Water-city

CNA

1982SEMARNAT

FederalGovernment

CNA

FederalGovernment

Secretary of Hydraulic Resources

(SRH)

Secretary of Agriculture

Secretary of Agriculture andHydraulic Resources (SARH)

water water water

Before 1982 Between 1982 and 1989 After 1992

1989

Federal Legislative ReformsFederal Legislative Reforms

Article 115 Reform. Descentralization. Water and sewerage systems transferred to municipal governments.

1986 Water rates adjusted by reforms to the Federal Law of Fees.

1992 Art. 27 of the Constitution reformed. Market for land and water.

1992 National Water Law. Allowing. Transfer of irrigation districts, private participation. Creation of new administrative levels. Watershed Councils

2004 Reform to National Water Law. Watershed Organisms created and the total or partial concession to private participation consolidated.

1983

1990 Federal Fees Law is reformed and fees for water use are updated

1991 Charge is included for discharge of polluted wastewaters

TRANSFER OF IRRIGATION TRANSFER OF IRRIGATION DISTRICTSDISTRICTS

Actually there are 309 users associations Actually there are 309 users associations and 6 Societies of Limited Responsibility, and 6 Societies of Limited Responsibility, they involve en 316,000 organized users they involve en 316,000 organized users that operate an area of 2'386,809 hasthat operate an area of 2'386,809 has

Domain irrigated area, area with potential irrigation, irrigated area

ConceptIrrigation Districts

Irrigation Units Total

% of thel Total

Domaine irrigated area 3,366,651 2,956,032 6,322,683 100.00

Area with potential irrigation 3,084,198 2,358,233 5,442,431 86.08

Irrigated area 2,539,406 1,941,667 4,481,073 70.87

Fuente: CNA, 2000, C. P. 2000

MEXICAN WATER MEXICAN WATER ACTORSACTORS

TYPE OF ACTORSTYPE OF ACTORS

GOVERNMENTAL ACTORS

AT A STATAL LEVEL

INTERMEDIATE PLATFORMS

REPRESENTATION PLATFORMS

PRIVATE GROUPS

RESEARCH CENTRES

UNIVERSITIES

INSTITUTES

PROFESSIONAL ORGANIZATIONS

NON GOVERNMENTAL ORGANIZATIONS

GOVERNMENTAL ACTORS AT A FEDERAL LEVEL

COMMUNITY ASSOCIATIONS

GOVERNMENTAL ACTORS

AT A FEDERAL LEVEL

SECRETARY OF PUBLIC FINANCE AND CREDIT

SEMARNATSECRETARY OF ENERGY

CNA CFE PEMEX

SECRETARY OF HEALTH

13 REGIONAL MANAGEMENTS

STATAL MANAGEMENTS

A Complex Panorama A Complex Panorama

Presidency

HOW TO DEAL WITH THIS ?

SHCP

SAGARPA

SdEFederal Dependencies

SEMARNAT

Sub-management

Planning Project Leader

CNA13 Regional Offices

Other Management

Planning Management

CNACentral Office

CNA

CNA Statal offices

6 River basin commissions

64 COTAS

12 River basin committees

25 River Basin Councils

Water Consultive Council (CCA)

29 Statal Water Consultiuve Councils

Utilities

NGO´s

ConstructorsConsulta

ntsPrivate Groups

Tech- Companies

Banobras

Financing institutions

National

IADBWorld Bank

JBIC

International

Universities

Research Institutes

Academia

Federal Senate Hydraulic Commission

Federal Congress Hydraulic Commission

Legislative Statal

Dependencies

Municipal Utilities

Statal Water Comissions

Users (without title)

Local Water Citizen councils

Users (with title)

Citizens

Intermediate Platforms

CONSEQUENCESCONSEQUENCES

The process of decentralization was carried out alongside political-administrative and legal reforms for the incorporation of private participation in water and sewerage supply, and the transference of the irrigation districts to water users associations which caused the following:

With the decentralization and the transfer of administration of potable water and sewerage services, the municipal government had a political, administrative and financial weakness since it had historically been dependent on the central power.

In the same way as local government, Mexican society was not consolidated in civil society because of a clientelistic corporate form of access to services, this was more evident in the conformation of the water users associations.

CONSEQUENCESCONSEQUENCES

With the decentralization and the transfer of administration of potable water and sewerage services, the municipal government had a political, administrative and financial weakness since it had historically been dependent on the central power. Same thing happened at irrigation district level

In the same way as local government, Mexican society was not consolidated in civil society because of a clientelistic corporate form of access to services.

The process of decemtralization of water services and irrigation districts as well as private participation was carried out without any real participation of civil society, still incipient and dependent on one political party which, in consequence, provoked the absence of a representative plural congress that would balance the process.

An important problem in this experience was that the social and cultural conditions preveiling were not considered when establishing water payment, tariffs. It is not possible to go from non-payment to minimum payment of a tariff that represents practically 566% more than what was paid before.

No one took into account that in Mexico, for an important part of the population the access to water services, urban and rural, more than a civic right, is payment as political clientele.

The case of Mexico shows us very clearly that for the process of

political-administrative decentralization and private participation in

management of public services to be efficient, the determination of

international financial organisms and political will to carry the

process out is not enough. Historic social conditions to make this

possible are indispensable.

In the particular case of Mexico, 70 years of central federal operation

of services and clientelistic access to them could not be the best

conditions to create strong municipal governments and citizens

active enough to receive potable water and sewerage systems and

irrigation districts, that they would be capable of regulating and

demand an efficient service independently of the public or private

character of the company in charge.