| Mexico: Water and Sanitation | ||
|---|---|---|
| Data | ||
| Water coverage (broad definition) | 97%[1] | |
| Sanitation coverage (broad definition) | 79%[1] | |
| Continuity of supply (%) | 45%[2] | |
| Average urban water use (l/c/d) | 270 (2006)[3] | |
| Average urban water tariff (US$/m3) | 0.32[2] | |
| Share of household metering | 69% (2006)[4] | |
| Share of collected wastewater treated | 36% (2006)[5] | |
| Annual investment in WSS | US$2 billion (2005) or US$ 20/capita[6][7] | |
| Share of self-financing by utilities | n/a | |
| Share of tax-financing | 69% (2006)[6] | |
| Share of external financing | n/a | |
| Institutions | ||
| Decentralization to municipalities | Widespread, except for some states, since 1983 | |
| National water and sanitation company | No | |
| Water and sanitation regulator | No | |
| Responsibility for policy setting | National Water Commission | |
| Sector law | Yes (1992, amended in 2004), with a focus on water resources | |
| Number of urban service providers | More than 2,000 | |
| Number of rural service providers | n/a | |
Water supply and sanitation in Mexico is characterized by achievements and challenges. Among the achievements is a significant increase in access to piped water supply in urban areas (87% to 96%) as well as in rural areas (46% to 73%) between 1990 and 2006; a strong nationwide increase in access to improved sanitation (56% to 81%) in the same period;[8] the existence of a functioning national system to finance water and sanitation infrastructure in a federal system with a National Water Commission as its apex institution; and the existence of a few well-performing utilities such as Aguas y Drenaje de Monterey.
The challenges include water scarcity in the Northern and central parts of the country; inadequate water service quality (drinking water quality; 55% of Mexicans receiving water only intermittently according to results of the 2000 census); poor technical and commercial efficiency of most utilities (with an average level of non-revenue water of 51% in 2003); an insufficient share of wastewater receiving treatment (36% in 2006); and still inadequate access in rural areas. In addition to on-going investments to expand access, the government has embarked on a large investment program to improve wastewater treatment.
Contents |
| Urban (76% of the population) |
Rural (24% of the population) |
Total | ||
|---|---|---|---|---|
| Water | Broad definition | 100% | 87% | 97% |
| House connections | 96% | 72% | 90% | |
| Sanitation | Broad definition | 91% | 41% | 79% |
| Sewerage | 80% | 16% | 64% |
Source: WHO/UNICEF Joint Monitoring Program (JMP/2006). Data for water and sanitation based on the WHO World Health Survey (2003) and the Census (2000).
During the past decade, the Mexican water and sanitation sector made major strides in service coverage with water supply and sanitation coverage. As shown above, in urban areas almost 100% of the population is estimated to have access to improved water supply and 91% to adequate sanitation. In rural areas, the respective shares are 87% for water and 41% for sanitation.[1] Coverage levels are particularly low in the South of the country.
Quality of service also leaves much to be desired. The 2000 census indicated that 55% of Mexican households with access to piped water received services on an intermittent basis, in particular in smaller municipalities and poor areas.[2] About 36% of wastewater was being treated in 2006, a share that is more than twice as high as the average for Latin America.[5] However, an unknown share of Mexican treatment plants do not comply with norms for effluent discharge.[2]
In 2006, 63% of the Mexican water was extracted from surface water, such as rivers or lakes. The remaining 37% came from aquifers.[3] Due to the strong growth of population and internal migration towards arid and semi-arid regions, many water resources in North and Central Mexico became overexploited. According to the National Water Commission, groundwater overextraction is at almost 40 percent of total groundwater use.[9] In addition, CONAGUA estimates that 52% of the superficial water is very polluted, whereas only 9% are in an acceptable condition.[10]
Despite scarce resources in many Mexican regions water consumption is at a high level, partly favored by poor payment rates and low tariffs. In 2006, more than three quarters (76.8%) was used for agriculture, while public supply only used up 13.9%, the remainder being used by thermal power station (5.4%) and industry (3.8%).[3] In 2006, all in all 77.3 billion m3 were consumed in Mexico, of which 10.7 billion m3 were used for domestic consumption. This means that the average domestic use per capita and day was 270 litres.[3]
In the second half of the 20th century, the Mexican water supply and sanitation sector has undergone several changes of organization to improve its performance.
Since 1948, responsibility for Mexican urban water supply systems was vested in the Ministry of Water Resources (Secretaría de Recursos Hídricos - SRH) under the federal government. For almost 30 years, the whole urban water organization was planned and carried out by the General Water and Sanitation Committee within the SRH. At the local level, federal Water Boards facilitated some local participation but actually also depended on the SRH.
In 1971, a new committee for water supply and sanitation systems was introduced by SRH facing a high increase in urban population which exceeded the centralized system's capacity to provide services. Despite the creation of more specialized organizations at the national level, the federal government finally had no choice but to decentralize the services to the states and municipalities.[11] The belief that water provision should be a gift from the federal government may be rooted in the policies of that centralization period.[12]
Under President Miguel de la Madrid, municipalities were entrusted with providing water supply and sanitation services within the framework of a general decentralization process. At the same time, state governments were made responsible for technical and financial assistance. They were also authorized to decide about the municipalities' capacity for providing the services. Most municipalities neither received the necessary financial resources nor the technical assistance to fulfill their new responsibilities. That is why in 1988 only 10 of 31 Mexican states had devolved responsibility to the municipalities and where they did, service quality and efficiency usually deteriorated.[12][13]
President Carlos Salinas, elected in 1988, began a significant sector reform, creating the National Water Commission or Comisión Nacional del Agua (CONAGUA) in 1989, which today remains a key player in Mexican water supply and sanitation (see below). At the beginning, it was given the task of defining federal policies to strengthen service providers through technical assistance and financial resources. CONAGUA, among other suggestions soon recommended to strengthen the decentralization process, improve the transparency of tariffs and introduce tariff autonomy, based on real costs for the service provision and free of political influence. Consequently, many water laws were introduced or amended, partly following CONAGUA's guidelines. In 1996, 21 states had transferred service provision to municipal service providers.[12][14]
Even though the legal preconditions for a functioning sector are fulfilled to a large extent, it still faces serious problems regarding efficiency, political influence, service quality and in some areas coverage.[12][14]
A 2004 modification of the National Water Law envisaged the transfer of certain functions from both the federal and state levels to newly created institutions at the level of river basins, including financial decisions through the creation of a National Water Financial System. The provisions of the new law remain to be implemented.[15]
Priorities at the national level are set through six year state development plans. The 2007-2012 National Water Program (Programa Nacional Hídrico) is aimed at reaching the following:
Federal policies for water and sanitation are set by the CONAGUA, which became a well-established autonomous entity under the Ministry of Environment. CONAGUA plays a key role in the sector's financial allocation. Besides water supply and sanitation, it is also responsible for water resources management, irrigation, flood protection and personnel services.[15]
At the regional level, responsibility for water supply and sanitation vary among the 31 Mexican states. Most of them have created State Water Commissions (Comisión Estatal de Agua - CEA), which are autonomous entities that are usually under the authority of the State Ministry of Public Works. Most of them provide technical assistance to municipalities and some operate water distribution systems.[15]
According to the Mexican constitution responsibility for water supply and sanitation services delivery rests with 2,446 municipalities since the decentralization of 1983.[11] However, a few states deliver services through state water companies on behalf of municipalities. In some cases, the state agencies directly provide water and sanitation services. In rural areas, water boards (Juntas) are responsible for water supply.[15]
Due to different policies and programs at the local level, service is provided directly by municipalities or by cooperatives, public or private utilities, which differ substantially concerning size, autonomy, performance and financial efficiency. Although most providers lack political independence and financial efficiency, there are some notable exceptions that are efficiently operated.[15]
In three Mexican cities, water and sanitation services are provided by private companies as of early 2011: Cancun, Saltillo and Aguascalientes. The concession in Cancun, the largest ot the three cities, is the oldest concession, awarded in 1993. As of 2011, it is held by Grupo Méxicano de Desarrollo (GMD), which is part-owned by Suez Environnement from France.[17] The privately held shares in the mixed public-private company in Saltillo, set up in 2001, are held by Aguas de Barcelona, a Spanish subsidiary of Suez Environnement.[18] Services in Aguascalientes are provided by Proactivo Medio Ambiente, a joint venture between Veolia Environnement from France and the Spanish construction firm FCC for the Latin American market.[19] As of 2011, the government planned to award further water concessions beginning with San Luis Potosí, Tijuana and Tuxtla Gutiérrez. A concession law that would improve the legal framework was under review by the Mexican parliament as of March 2011.[20]
The efficiency and quality of water and sanitation services vary widely, to a large extent reflecting different levels of development across the country. On average, the level of non-revenue water in Mexico was 51% in 2003,[21] about twice as high as for well-run utilities. The average staff per 1,000 connections among a sample of 35 large utilities in Mexico was 4.5 in 2000.[22]
The Mexican average tariff per m3 (US$0.32) is about half of the average in Latin America and the Caribbean (US$0.65).[2] However, since tariffs are fixed at the municipal level depending on different legal frameworks, they differ substantially. Consequently, domestic users in Tijuana monthly pay US$1.1 for 30m3, whereas customers in Villahermosa only pay US$0.05 for the same amount.[4][23] On average only 72% of all bills are being paid. 31% of water customers are not metered and are charged a flat rate independent of consumption. Usually, commercial and industrial users are charged tariffs close to full cost recovery, whereas residential users are cross-subsidized.
Sanitation is normally charged as a small percentage share of the water bill.[24]
Since tariff levels and structures vary widely in Mexico, some providers fully recover all costs while others do not even cover operating costs.[2] There are no reliable figures concerning water supply and sanitation revenues in Mexico. However, it seems that the sector as a whole generates a little modest cash surplus, which seems to reflect shortfalls in essential spending on maintenance and modernization rather than financial efficiency.[2] According to CONAGUA, total tariff collections were US$2 billion (MxP21.2 billion[23]) in 2006.[4]
According to CONAGUA, US$ 1.4 billion (MxP 14.7 billion[23]) were invested in the sector in 2006, which is US$ 13 per capita. Compared to the investment from 1996 to 2002, which was between US$ 3.7 and US$ 5.5per capita, this is a significant increase. However, investment was still higher at the beginning of the 1990s. The average per capita investment from 1997 to 2003 is higher than in Costa Rica, Ecuador and Honduras, but it falls short of the investment in other bigger Latin American countries like Argentina or Colombia.[26]
Investments are financed by federal (33% in 2005), regional (23%) and local subsidies (14%) and other sources (31%) including self-financing, credits and private funding. Two thirds of the investment is channeled through several CONAGUA programs.[6] Due to overlapping planning and budget cycles at the national, regional and local level as well as poor coordinated investment plans, project planning is extremely difficult.[27]
Most water and sanitation investments in Mexico are financed domestically. Among the major external lenders for water supply and sanitation are the World Bank and the Inter-American Development Bank, which channel their loans to utilities through the National Water Commission. The Japan International Cooperation Agency (JICA) support a Potable Water Quality Control Project in Mexico City since 2005.[28]
The World Bank supported a US$300 million project in the state of Guanajuato from 2004 to 2009, of which 40% were allocated for water supply and sanitation.[29] It also supported a US$55.2 million technical assistance project for the modernization of the water and sanitation sector approved in 2005.[30]
The Inter-American Development Bank has financed a series of rural water supply and sanitation projects in Mexico with a focus on decentralization, community development and participation. It began with a first US$560 million project approved in 1998 community development and participation in 20 states,[31] followed by a second US$292.5 million project approved in 2005.[32] A third phase with a cost of US$200 million was under preparation in early 2010.[33]
|
||||||||||||||||