The primary objective of the public-private partnership AGUACAR was to provide water/wastewater services to the entire cpmmunity, especially to the lower income households. The government considered the pre-PPP availability of water supply service to less than 70 percent of households and sewage service to less than 55 percent to be unacceptable, but it lacked the financial capability to expand the system. The lower income portions of the city were not connected to the municipal water system and were served by vendors that carried cans of water by donkey into these communities. The charge for this labor-intensive service was several times higher than the tariff charged by the municipal water company. Customers that were connected to the system experienced poor service – water pressure was generally low and often interrupted. The municipal provider was operating at a substantial loss, largely because of inefficient management and a low rate of collection of the water bills. This level of service generated a flood of complaints to the Mayor’s office and ultimately the municipal council’s action that created AGUACAR in 1994.

Project Results

AGUACAR made marked improvements in water supply and sewage services. By 2005, water supply coverage increased to 99 percent of the population and sewage coverage rose to 75 percent. Support for AGUACAR remains high, as community members enjoy the benefits of an improved, more reliable water supply and sewage service.