Experience Since the entry into force (including possible changes) / project, that it has been applied: this contract allows utility companies (concession dealers) to delegate to a specialized public operator (contractor) the operation, management, financing, restoration, development, replacement and maintenance of water and sanitation systems in poor and small and medium-sized cities. The dealer must make the existing infrastructure available to the contractor and the contractor must maintain the dealer`s infrastructure and put in place a new infrastructure. During the duration of the contract, the contractor must create 4,670 new water connections and 8,600 sanitary connections. The contractor`s revenue comes from customs duties and government subsidies. In any event, the government must provide the subsidies to the contractor. However, the contractor is required to invest in the infrastructure of the water and sanitation system. The contractor may be a corporation, a company or a consortium. However, the contractor must be integrated as a public water and wastewater company, in accordance with the regulatory framework governing the public service. In addition, the contractor must have the following expertise: (i) technical know-how: experience in the management and provision of water and sanitation services for one year for at least 10,000 users; (ii) need for financing: the contractor must justify more than $100 million in equity and at least millions of subscribed capital.
The Contractor Proposal Assessment Committee should include technical water and sanitation experts as well as economists with knowledge of the public service. Ministry of Water, Environment and Sanitation. Regulatory oversight is provided by the specific body responsible for regulating water supply and sanitation. The legal framework governing these contracts is consistent with the commercial and civil code, the law and the law of public procurement (water and sanitation). Water and wastewater contracts, with the participation of the private sector, small and medium-sized cities, where existing water and sanitation systems are managed by the government or a utility, are not viable due to tariffs and lack of adequate infrastructure. In this case, specialized private operators (contractors) may be responsible for the operation, management and operation of water and sanitation systems in these cities. Some of the performance standards are: (i) the contractor must provide water connections to 97% of the population and 60% of the population in sanitary connections from the outset; (ii) for 60% of the population, the contractor must meet 100% of water quality standards and sanitation facilities from the outset; (iii) the supplier must manage, operate, maintain and invest in a sanitation system in accordance with environmental standards. Environmental authorities can amend these standards and the contractor must apply and pay for the amendments without compensation for legislative changes; (iv) the contractor must build the infrastructure in accordance with the law; (v) sanctions apply where the contractor has not been able to meet the public service requirements set out in the operational technical annex; (vi) the contractor must sell to consumers a portion of the contractor`s inventory in accordance with the asset democratization programme.
The rates of the service are set by the regulator in accordance with the legal methodology provided by law.