Water supply and sanitation in Colombia

Water supply and sanitation in Colombia

There are many more citizens who live in areas corresponding to classes 1–3 than those who live in the areas corresponding to classes 5 and 6. For example, in Bogotá 73% of the population live in zones of classes 1–3, whereas only 10% live in zones classified as 5 and 6. Consequently, the tariff system permanently causes deficits which require subsidies paid by the national government. [es icon cite web
last=World Bank
first=
authorlink=World Bank
coauthors=
title=Desarrollo Económico Reciente en Infraestructura (REDI) en Colombia
work=
publisher=
date=
url=http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2005/07/12/000011823_20050712145543/Rendered/PDF/320880CO0REDI0Agua01bkgd0to0303791.pdf
format=
doi=
accessdate=2008-03-02, p. 56 ]

Between 1990 and 2001, the average tariff for water and sanitation in Colombia increased from US$0.32/m3 to US$0.81/m3, equivalent to an increase of 153%. [es icon cite web
last=World Bank
first=
authorlink=World Bank
coauthors=
title=Desarrollo Económico Reciente en Infraestructura (REDI) en Colombia
work=
publisher=
date=
url=http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2005/07/12/000011823_20050712145543/Rendered/PDF/320880CO0REDI0Agua01bkgd0to0303791.pdf
format=
doi=
accessdate=2008-03-02, p. 34]

Investment

Between 1995 and 2003, US$3.4 billion (7,965 billion Colombian pesos [1 Colombian Peso = US$0.0004255, (12/31/2004)] ) were invested in the sector, of which 16% were financed by the private sector. Since 1998, private financing increased from almost zero to become a significant share of the total investment. Furthermore, despite a drop in 2001, investment in the sector has increased since 1999. [The figures were calculated on the basis of data obtained from the Ministry of Environment, Housing and Territorial Development; the general national budget; budgets allocated through the public hearings ("audiencia pública") process; and a business modernization program called the [http://www.american.edu/TED/pacifico.htm "Plan Pacífico" program] , resources of the "fondo nacional de regalías", transfers established by Law 715, the [http://www.superservicios.gov.co/ SSPD] , private utilities and a survey about the investment climate.]


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DateFormat = yyyyPeriod = from:0 till:600TimeAxis = orientation:verticalScaleMajor = gridcolor:drabgreen increment:100 start:0

PlotData= color:blue width:15 bar:1995 from:start till:216 bar:1996 from:start till:234 bar:1997 from:start till:256 bar:1998 from:start till:245 bar:1999 from:start till:388 bar:2000 from:start till:594 bar:2001 from:start till:390 bar:2002 from:start till:479 bar:2003 from:start till:587

color:red bar:1995 from:start till:2 bar:1996 from:start till:2 bar:1997 from:start till:6 bar:1998 from:start till:51 bar:1999 from:start till:76 bar:2000 from:start till:108 bar:2001 from:start till:34 bar:2002 from:start till:111 bar:2003 from:start till:141

TextData= pos:(10,210) fontsize:M text: Annual investment in water supply and sanitation in million US$

The SSPD forecasts a total investment of US$2.2 billion (4,922 billion Colombian pesos) in the water and sanitation sector from 2007 to 2017 [es icon cite web
last=Superintendencia de Servicios Sanitarios (SSPD)
first=
authorlink=
coauthors=
title=Informe Anual de los Servicios Sanitarios en Colombia (Annual report 2006)
work=
publisher=
date=2007
url=http://www.superservicios.gov.co/siteSSPD/documentos/documentos_pub/87_1763.pdf
format=
doi=
accessdate=2008-03-02, p. 24. It is, however, not clear if this forecast uses all the sources of funding included in the estimate of past investment, so figures may not be comparable.]

The Minister of Environment, Housing and Territorial Development announced in May 2008 that US$5.2 million (9.2 billion Colombian pesos [1 Colombian Peso = US$0.0005700 (2008-05-01)] ) will be spent in order to facilitate the construction of facilities in areas without access to drinking water. The national government will control the destination of the resources and guarantees transparency in the whole spending process. According to the minister, Colombia should already have reached full drinking water coverage, given the past investments in the sector. [es icon Citation
last=Vargas Rodríguez
first=Marisol
author-link =
last2 =
first2 =
author2-link =
title=Destinan 9,2 billones de pesos para planes de agua potable
newspaper = La República
pages=
year=2004
date=05-08
url=]

Financing

According to the ministry, the investments were mainly financed through three sources: self-financing, funding by the national government and charges for the extraction of petroleum and carbon.

A World Bank study estimates an investment of US$411m in 2004, which was financed as follows:

* US$108m (26%) by companies through self-financing
* US$249m (61%) by state funding through SGP
* US$49m (12%) by "Corporaciones Autónomas Regionales" (CAR) or Regional Autonomous Corporations
* US$5m (1%) by other sources

According to the report, the average annual transfers from the national government to the municipalities for water supply and sanitation (including solid waste) were about US$278m between 1998 and 2001. 86% of that funding was allocated through the SGP as defined in Law 715. A certain percentage of these resources was dedicated exclusively for water supply and sanitation. [es icon cite web
last=World Bank
first=
authorlink=World Bank
coauthors=
title=Desarrollo Económico Reciente en Infraestructura (REDI) en Colombia
work=
publisher=
date=
url=http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2005/07/12/000011823_20050712145543/Rendered/PDF/320880CO0REDI0Agua01bkgd0to0303791.pdf
format=
doi=
accessdate=2008-03-02, p. 62 ] They mainly go to small municipalities that show low income levels. Nevertheless, many municipalities use funding through SGP dedicated for water supply and sanitation for other purposes. [es icon cite web
last=World Bank
first=
authorlink=World Bank
coauthors=
title=Desarrollo Económico Reciente en Infraestructura (REDI) en Colombia
work=
publisher=
date=
url=http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2005/07/12/000011823_20050712145543/Rendered/PDF/320880CO0REDI0Agua01bkgd0to0303791.pdf
format=
doi=
accessdate=2008-03-02, p. 61 ]

The CAR receive property tax, electric power utilities, environmental charges for extracting water and charges for discharging waste water.

External cooperation

The main external cooperation partners for the Colombian water and sanitation sector are the World Bank, the Inter-American Development Bank (IDB) and the Andean Development Corporation (CAF).

World Bank

The World Bank supports the sector through dedicated water and sanitation projects, as well as through water and sanitation components in other, broader projects.

"Dedicated water and sanitation projects:"
* [http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P074726: Bogotá Urban Services Project]
* [http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P044140: Cartagena Water Supply, Sewerage and Environmental Management Project]
* [http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P096965: La Guajira Water and Sanitation Infrastructure and Service Management Project]
* [http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P082973: Water And Sanitation Sector Support Project First Phase APL]
* [http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P065937: Water Sector Reform Assistance Project]

"Non-dedicated projects:"
* [http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P082429: Disaster Vulnerability Reduction First Phase APL]
* [http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P088752: Rio Frio Carbon Offset Project]
* [http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P078220: Amoya River Environmental Services]
* [http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P082520: Sustainable Development Investment Project]

Inter-American Development Bank (IDB)

* [http://www.iadb.org/projects/Project.cfm?project=CO0182&Language=English Potable Water and Sanitation Pereira]

Andean Development Corporation (CAF)

CAF supports the sector through a USD 42.5 million loan to the Cesar Department in 2006 and a USD 58.1 million loan to the Empresas Aguas del Magdalena approved in 2007. For an updated of CAF projects in the sector in Colombia see: [http://www.caf.com/view/index.asp?ms=17&pageMs=42434 CAF Colombia Agua]

References

External links

Documents
*cite web
last=World Bank
first=
authorlink=World Bank
coauthors=
title=Recent Economic Developments in Infrastructure (REDI) in Colombia (Executive summary)
work=
publisher=
date=2004
url=http://www-wds.worldbank.org/external/default/main?pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000012009_20041112100212
format=
doi=
accessdate=2008-03-02

Policy and regulation
* [http://www.minambiente.gov.co/contenido/categoria.aspx?catID=88 Vice Ministry of Water and Sanitation ]
* [http://www.superservicios.gov.co/ Superintendency for Residential Public Services (SSPD)]
* [http://www.cra.gov.co/portal/www/index-100.jsp Water Regulatory Commission (CRA)]
* [http://www.dnp.gov.co/ National Planning Department (DNP)]

Service providers
* [http://www.andesco.com/provisional/index.html National Association of public utilities (ANDESCO)]
* [http://www.acueducto.com.co/wpsv5/wps/portal Bogotá Water Utility (EAAB)]
* [http://www.eeppm.com/epmcom/index2.htm Medellín Multi-Utility (EPM)]
* [http://www.aaa.com.co/ AAA, a private Colombian utility]

See also

*Electricity sector in Colombia
*Water resources management in Colombia
*Irrigation in Colombia


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