Inter-American Development Bank President Luis Alberto Moreno writes in the Wall Street Journal on March 10 that contrary to popular belief there are numerous examples in Latin America of the private sector meeting community water needs. According to Moreno's article, published in advance of the World Water forum to be held shortly in Mexico, a new generation of local, competitive, and innovative private water providers are emerging -- along with the public ones -- to replace multinational water companies that are pulling out of region.
And the number of private companies serving customers throughout the region continues to rise. In Brazilian municipalities alone, Moreno counts 63 private concessions, serving 7 million people. Large cities across the region -- such as those in Honduras and Peru -- as well as low-income areas in Ecuador and Colombia rely on private providers for their water needs. Costs have come down in some cases, while innovative public-private schemes have improved access and tailored water delivery to the needs of the customer. In some communities, water transportation solutions for those hard-to-reach customers have been developed, while individualized payment plans were made available to those temporarily without jobs.
Creativity and experience are the two added-values of the region's private water providers, Moreno says. Both must be tapped to extend access to drinking water to the millions who still need it. More on IADB.
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