Colombia’s environment ministry is offering technical assistance, training and software to small and rural municipalities to create and strengthen potable water and sanitation utilities, to improve business efficiency, ensure better services and, in some cases, a decrease in water rates. The initial phases of this project, including its design and pilot programmes, were launched previously and 98 utilities have already been created.

The modernization of small utilities is part of a long-term plan being carried out by the government with technical assistance from the Andean Development Corporation (CAF). In general, the government aims to modernize 1,500 small utilities throughout the country to the benefit of some 4 million inhabitants in rural areas as part of the 2.2 trillion peso (US$ 903 million = € 703 million) investment in departmental water plans.

In the period 2007-2010 Colombia plans to invest US$ 4.5 billion (€ 3.5 billion) to raise urban potable water coverage from 97.4% to 98.5%, rural potable water coverage to 75.1% from 68.6%; urban sewerage coverage from 90.2% to 94.5%, rural sewerage coverage from 57.9% to 65.5%, and wastewater treatment levels from 8% to 30%. Of this amount, US$ 543 million (€ 423 million) will go to rural water and sanitation projects.

Local entities will provide US$ 842 million (€ 656 million) for the projects, while US$ 1.8 billion (€ 1.4 billion) will be covered by the Sistema General de Participaciones (SGP) Agua, or general revenue sharing system for water issues. Water utilities will contribute US$ 1.4 billion (€ 1.1 billion) and the national budget will cover US$ 541 million (€ 421 million).

By 2019 the Colombian authorities are aiming to provide 100% coverage in potable water and sewerage services in urban areas and 82.2% in rural areas.

Source: Business News Americas [subscription site] - 09 Jan 2009 ; 01 Oct 2008 ; 29 Sep 2008

Tags: financing, latin america & caribbean, rural wash, urban wash