Ebrard plans to decentralize Mexico City's local water system

Mayor's proposal is a long-term program to solve problems that are becoming more and more severe, says head of the city's water system

Mexico Weekly / March 3, 2011

Mexico City Mayor Marcelo Ebrard has sent to local lawmakers a proposal to decentralize the local water system and make way for private involvement.

The proposal, submitted to the Legislative Assembly (ALDF) on Feb. 22, says the new and renovated local water system (SACM) will be able to “provide water in blocks to people or companies, public and private, for their own consumption or for their sales, with a previously signed contract,” Reforma reported Thursday.

Currently, the SACM is an autonomous entity of the Mexico City government (GDF) bound to tax and administrative regulations set by the Finance Secretariat.

Ebrard's proposal would eliminate the ALDF's ability to set water rates, designating this task to a council made up of six GDF officials and four representatives from private-sector unions and professionals.

Although the proposal details the responsibilities and features of the new decentralized agency, it does not specify the roles that private companies or individuals will take.

The proposal also neglects to mention if water subsidies will continue.

The current head of the city's water system Ramón Aguirre told Reforma the proposal's intention is not to create a private company, but rather to strengthen a public agency that operates as a non-profit company to benefit society.

“It's not about privatization. Private companies will not take over, but we must – along with a government council with most participants from society – (create) a long-term program to solve problems that are becoming more and more severe,” Aguirre said.

Severe Water Supply Problems

For the next 10 years, Mexico City needs $8.75 billion in investments to update and repair the capital's water supply and drainage system.

Mexico City has one of the lowest water costs in the country, even though much of the liquid is piped in from the neighboring State of Mexico and Hidalgo.

In low- and medium-income neighborhoods, 1,000 liters of water cost 2 pesos ($0.17); in the neighboring Naucalpan (State of Mexico), water costs 10.2 pesos ($0.85) per 1,000 liters, and 15.1 pesos ($1.26) in the affluent Huixquilucan suburb.

However, a third of residential areas in Mexico City have severe water supply problems.

Official figures show 350 neighborhoods of the capital's 1,815 are affected by water cuts.

On Wednesday, former Assemblyman Daniel Salazar said the GDF must take more measures to improve water supply and quality besides adjusting fees based on socio-economic levels, Publimetro reports.

“It's irrational that we combine rainwater with wastewater and it is all discarded through the drainage system,” Salazar said.

Rather, the city should capture rainwater and filter it into aquifers, and treat greater volumes of wastewater (only 14.4 percent of capital wastewater is treated) to be used to water green areas and other non-consumption purposes.

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