Water supply and sanitation in Paraguay

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This article has been written in 2007. Please feel free to update this article.

Contents

Paraguay: Water and Sanitation
Flag of Paraguay.svg
Data
Water coverage (broad definition)99%
Sanitation coverage (broad definition)94%
Continuity of supply (%)n/a
Average urban water use (l/c/d)n/a
Average urban water tariff (US$/m3)n/a
Share of household meteringn/a
Annual investment in WSSn/a
Share of self-financing by utilitiesUrban: Nil; Rural: 60% user contribution
Share of tax-financingn/a
Share of external financingn/a
Institutions
Decentralization to municipalitiesNone
National water and sanitation companyYes
Water and sanitation regulatorYes
Responsibility for policy settingMinistry of Public Works and Communications
Sector lawYes
Number of urban service providers1 large public, 500 small private
Number of rural service providers2,500

Despite many years of concerted efforts and achievements in expanding coverage and improving service sustainability, many issues remain to be addressed in the water and sanitation sector. Key issues include: (i) a low level of coverage for both water and sanitation, in particular in rural areas; (ii) a low level of cost recovery, despite a legal obligation for tariffs to recover costs; and (iii) an institutional framework that is only partially effective.

Water chemical compound

Water is a transparent, tasteless, odorless, and nearly colorless chemical substance, which is the main constituent of Earth's streams, lakes, and oceans, and the fluids of most living organisms. It is vital for all known forms of life, even though it provides no calories or organic nutrients. Its chemical formula is H2O, meaning that each of its molecules contains one oxygen and two hydrogen atoms, connected by covalent bonds. Water is the name of the liquid state of H2O at standard ambient temperature and pressure. It forms precipitation in the form of rain and aerosols in the form of fog. Clouds are formed from suspended droplets of water and ice, its solid state. When finely divided, crystalline ice may precipitate in the form of snow. The gaseous state of water is steam or water vapor. Water moves continually through the water cycle of evaporation, transpiration (evapotranspiration), condensation, precipitation, and runoff, usually reaching the sea.

Sanitation public health conditions related to clean drinking water and adequate disposal of human excreta and sewage

Sanitation refers to public health conditions related to clean drinking water and adequate treatment and disposal of human excreta and sewage. Preventing human contact with feces is part of sanitation, as is hand washing with soap. Sanitation systems aim to protect human health by providing a clean environment that will stop the transmission of disease, especially through the fecal–oral route. For example, diarrhea, a main cause of malnutrition and stunted growth in children, can be reduced through sanitation. There are many other diseases which are easily transmitted in communities that have low levels of sanitation, such as ascariasis, cholera, hepatitis, polio, schistosomiasis, trachoma, to name just a few.

Access

While coverage levels in urban areas are high using a broad definition of services, the coverage with higher levels of services (house taps and sewers) remains low compared to demand and to other countries in the region.

Urban area Human settlement with high population density and infrastructure of built environment

An urban area or urban agglomeration is a human settlement with high population density and infrastructure of built environment. Urban areas are created through urbanization and are categorized by urban morphology as cities, towns, conurbations or suburbs. In urbanism, the term contrasts to rural areas such as villages and hamlets and in urban sociology or urban anthropology it contrasts with natural environment. The creation of early predecessors of urban areas during the urban revolution led to the creation of human civilization with modern urban planning, which along with other human activities such as exploitation of natural resources leads to human impact on the environment.

Water and sanitation coverage in Paraguay (2004)

Urban (58% of the population)Rural (42% of the population)Total
WaterBroad definition99%68%86%
Household connections82%25%58%
SanitationBroad definition94%61%80%
Sewerage16%0%9%

Source: WHO/UNICEF Joint Monitoring Program (JMP/2006). Data for water and sanitation based on Permanent Housing Survey of the Census (2002).

UNICEF development policy organization of the UN

The United Nations Children's Fund (UNICEF), originally known as the United Nations International Children's Emergency Fund, was created by the United Nations General Assembly on 11 December 1946, to provide emergency food and healthcare to children and mothers in countries that had been devastated by World War II. The Polish physician Ludwik Rajchman is widely regarded as the founder of UNICEF and served as its first chairman from 1946 to 1950, when he had to flee the United States in the wake of McCarthyism. Rajchman is to this day the only person that served as UNICEF's Chairman for longer than 2 years. On Rajchman's suggestion, the American Maurice Pate was appointed its first executive director, serving from 1947 until his death in 1965. In 1950, UNICEF's mandate was extended to address the long-term needs of children and women in developing countries everywhere. In 1953 it became a permanent part of the United Nations System, and the words "international" and "emergency" were dropped from the organization's name, though it retained the original acronym, "UNICEF".

Recent developments

In April 2007 a seminar organized by the Center of Multidisciplinary Entrepreneurial Training (CAEM)-TECMA S.A. and financed by the IDB concluded that the Juntas need to improve their management and improve collection of outstanding bills in order to avoid institutional collapse. Otherwise a “domino effect” could occur and jeopardize the financial stability of SENASA as well as the country's commitments to the World Bank. [1]

Inter-American Development Bank international organization

The Inter-American Development Bank is the largest source of development financing for Latin America and the Caribbean. Established in 1959, the IDB supports Latin American and Caribbean economic development, social development and regional integration by lending to governments and government agencies, including State corporations.

Responsibility for water supply and sanitation

Paraguay-CIA WFB Map.png

Policy and regulation

View of El Chaco Chaco Boreal Paraguay.jpg
View of El Chaco

Responsibility for policy formulation is nominally vested in the Ministry of Public Works and Communications and regulation is entrusted to an autonomous entity, the Regulatory Agency for Sanitation (ERSSAN). The institutional framework is codified in Law 1614/00 of 2000 establishing a regulatory and tariff framework for the sector. The law, which created ERSSAN, was drafted with the expectation that private sector participation in the sector would substantially increase, which did not occur.

In practice, the Ministry of Public Works and Communications has not developed sector policies, leaving a vacuum in this important area. The regulatory agency, created for the purpose of regulating prospective private enterprises, has been ineffective at regulating the national public enterprise ESSAP. SENASA also faces many challenges, since it does not have sufficient capacity to provide adequate support to the ever-increasing number of Juntas.

Service provision

Responsibility for water and sanitation service provision in Paraguay in urban areas rests primarily with a national public enterprise, and with more than 1,621 community-managed water associations (Juntas de Saneamiento) in small cities and in rural areas.

Paraguay republic in South America

Paraguay, officially the Republic of Paraguay, is a country of South America. It is bordered by Argentina to the south and southwest, Brazil to the east and northeast, and Bolivia to the northwest. Although it is one of only two landlocked countries in South America, the country has coasts, beaches and ports on the Paraguay and Paraná rivers that give exit to the Atlantic Ocean through the Paraná-Paraguay Waterway. Due to its central location in South America, it is sometimes referred to as Corazón de Sudamérica.

The national enterprise, the Empresa de Servicios Sanitarios de Paraguay (ESSAP), is responsible for serving communities with populations of more than 10,000 inhabitants. In rural communities and small towns with less than 10,000 inhabitants water associations provide services, while technical assistance and financing are provided by the National Environmental Sanitation Service (SENASA).

The Juntas are grouped in 10 associations which supply water to more than half of country's population [2] The first Juntas were created with the assistance of the World Bank's first rural water and sanitation loan to Paraguay in 1977, fostering a successful long-term partnership that endures until today.

An interesting phenomenon in Paraguay is the emergence of independent private suppliers, called “aguateros”, since the 1970s. Their efforts account for a significant share of the expansion of urban water coverage in the area of the capital. Aguateros are private, informal service providers who operate small-scale systems with up to 3,000 connections. An estimated 500 private suppliers serve some total of about 500,000 people.

Tariffs and cost recovery

Urban areas

Urban utility tariffs are set below cost recovery levels and are adjusted infrequently, leading to substantial operating losses by the national water and sanitation enterprise. This makes it impossible to finance the investments necessary to further expand coverage and to improve service quality.

Tariffs by Aguateros fully recover costs and compare favorably with tariffs charged by the public sector. These tariffs are not regulated, but to some extent controlled by competition between aguateros serving neighboring areas.

Rural areas

Unlike in many other countries, local Juntas are well organized and do not only recover operating and maintenance costs, but also expand their systems using their own resources and repay a portion of capital costs to the national treasury.

Affordability

According to data collected by the Pan-American Health Organization based on multi-purpose household surveys, the share of water expenditures in household expenditures in urban areas of Paraguay was the lowest among 10 countries in Latin America and the Caribbean in the late 1990s. The share was on average 1.4% and 1.7% for urban households in the poorest income decile, showing an unusually low difference between the average and poor households. [3] These shares are actually the same or even higher in rural areas, reflecting the unusual high levels of cost recovery in rural areas in Paraguay. Rural households spend on average 1.2% on water, and households in the poorest decile in rural areas spend 2.3% on water. Therefore, despite high levels of cost recovery, tariffs apparently remain affordable.

External support

World Bank

As mentioned above, the World Bank’s relationship with the Government of Paraguay and the SENASA on rural water systems goes back for about 30 years. It spans three successfully completed rural water projects: the First, Second, and Third Rural Water Supply and Sanitation Projects (approved on December 13, 1977, June 16, 1981, and September 10, 1992, respectively). As a result, the Bank is one of the institutions most trusted by the Government to assist it in this sector. From 1997 to 2007 the Bank supported the US$ 55.7 million Fourth Rural Water Supply and Sanitation Project (approved on August 28, 1997), which aimed at increasing water supply and sanitation coverage in rural areas. A secondary development objective was to modify SENASA’s role in the sector from an implementer of projects to an efficiently managed promoter of activities.

The World Bank has also supported a pilot project to expand services in small towns by providing subsidies on a competitive basis, which involve “aguateros” as service providers. This experience is summarized in the note entitled Output-Based Aid in Water – Lessons in Implementation from a pilot in Paraguay. [4]

On April 14, 2009, the World Bank approved a $64 million loan for the Paraguay Water and Sanitation Sector Modernization Project. The objective of the project is to increase the efficiency, coverage, and sustainability of water supply and sanitation services in Paraguay by (a) improving the governance of the sector, (b) improving water services and increasing access to sewerage services in the Asunción metropolitan area, and (c) increasing access to sustainable water and sanitation services in rural areas.

Interamerican Development Bank

In 2001 the IDB approved a US$12m loan to support a Small Community Water Supply Sanitation Project executed by SENASA. Until 2007 more than US$7m had been disbursed.

See also

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References

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