Tag Archives: subsidies

Paraguay: Lack of national policy hindering WASH investment – UNDP

The lack of a national water and sanitation policy in Paraguay is hindering the rate of investment in this area, told BNamericas Rodrigo Mussi, project coordinator at the UN Development Program’s (UNDP) local office.

Read full article on: BNAmericas [subscription site],  5 May 2010

El Salvador: Anda announces new water rates

El Salvador’s national aqueduct and sewerage authority Anda has announced new rates for potable water services. The new tariff structure will be applied gradually and additional subsidies will be granted to people with the lowest incomes.

Read full article on: BNamericas.com [subscription site], 17 Feb 2010

Mexico, Mexico City: DF govt considering new water tariff system

Mexico’s federal district (DF) is looking to introduce a new tariff system for potable water that will charge users according to their socioeconomic status. The new scheme involves adjustments to the potable water subsidy depending on the average income of each area, as well as the amount of water consumed per household. Water authorities are also looking to implement a 2% tax on water starting 2010.

Read the full article on: BNamericas.com [subscription site], 26 Nov 2009

El Salvador: Anda to modify potable water subsidy

El Salvador’s national aqueduct and sewerage authority Anda [Administración Nacional de Acueductos y Alcantarillados] will modify the structure of its potable water subsidies for residential, business and industrial clients [ ...]. Anda will now pay a subsidy on the first 20m3 consumed monthly. Previously, the company paid a subsidy of roughly 0.40 colones (US$0.05) for every cubic meter consumed. “According to the World Health Organization, a family can survive on 15m3/m of consumption,” Anda president Francisco José Gómez was quoted as saying. Anda statistics show that 52.6% of the population served by the entity will be covered by the new subsidy, the report said.

Related web site: Wikipedia – Water supply and sanitation in El Salvador

Source: BNamericas/a> [subscription site], 12 Jun 2009

Chile: Bachelet affirms law to exempt low-income families from basic service connection fees

Chilean President Michelle Bachelet announced a new law that exempts low-income homeowners [of homes costing under 750 UF = inflation-linked unit, US$24,117] from paying [UF 30] potable water and sanitation connection costs.

The initiative will speed up coverage in non-urbanized areas by helping water and sanitation utilities expand their operations to areas that are not currently under their responsibility.

The government expects to grant 46,000 housing subsidies to low-income families in the country.

Read the government press release [scroll down to Promulgación de ley 20.307] here [in Spanish]

Source: BNAmericas [subscription site], 01 Dec 2008

Argentina: the negative effects of nationalizing water services

Argentina’s government-controlled water utility Aysa, which serves Buenos Aires, was unable to satisfy demand at the beginning of 2008, due to insufficient service expansion investments. About two years ago, the federal government revoked then-concessionaire Aguas Argentinas’ contract because the company allegedly also failed to carry out promised investments as well as reports of nitrate pollution. These failures were not the result of corporate negligence alone, says BNAmericas, but also of 2002 emergency legislation, which forced Aguas Argentinas to freeze its rates despite the devaluation of the peso. Now rates have remained frozen without finding sufficient new investment needed to cope with demand pushed up by high summer temperatures. Financial analysts have called for realistic pricing and the introduction of subsidies to help inhabitants cope with increased rates.

Source: Eva Medalla, BNAmericas [subscription site], 10 Jan 2008