By Sara E. Vásquez B.
In El Salvador the infrastructure that bring clean water to most homes was built many years ago and like everything else, life has gone coming to an end. This is the problem in which when the water pressure is high, the pipes are broken and waste of this vital fluid does not reach the destination, they are settlers. According to World Bank studies El Salvador is that some countries have invested in improving the water service coverage and continuity of service ends up being low.
Useless cause water pipes does not reach its destination are households and the protests will not wait all day in urban areas and peripheral. To draw attention people affected close major roads leading to the airport or roads that have significant connections to the country's development, they make tire fires affecting the environment etc. But people are right because they spend months without water in their homes and even without water in their homes will get the receipt from the state company that supplies water.
The investment that the government is not enough to design, build, finance, operate and maintain this service, because the money from the national budget is not enough or because the loans take a long time to analyze and approve them. This is the picture of sewerage infrastructure in El Salvador.
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(1). La Prensa Gráfica, 04 Diciembre de 2014.
Useless cause water pipes does not reach its destination are households and the protests will not wait all day in urban areas and peripheral. To draw attention people affected close major roads leading to the airport or roads that have significant connections to the country's development, they make tire fires affecting the environment etc. But people are right because they spend months without water in their homes and even without water in their homes will get the receipt from the state company that supplies water.
The investment that the government is not enough to design, build, finance, operate and maintain this service, because the money from the national budget is not enough or because the loans take a long time to analyze and approve them. This is the picture of sewerage infrastructure in El Salvador.
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| Images from LPG, El Salvador. |
| Image Property of: MAS.COM |
- 2. What services are to be provided and are these services affordable?
All people who live in the flesh the poor service provided by state water company when we already have installed the pipes in houses, we know that the service will be intermittent, that water sometimes falls feces with earth, not You can complain to anyone because it runs the risk of not having even a poor service.
The service charge receipts always arrive water, but the water is always scarce. All this leads us as people looking for a private service provider, we know we can pay a little more money, but will water more frequently. In El Salvador to this day June 23, 2015 have been left out of the Law on Public-Private Partnerships: water, education, among others.
That means there will be at least in a short term private partnership púbico- water. The government has begun to award contracts to private water, but by way of private treaty in 2014.
"The agreement, as the autonomous benefit with water to 181 homes that the company built on land located at kilometer 15.5 of the highway to the port of La Libertad, and several communities in the municipalities of Zaragoza and New Cuscatlan. Builders drilled wells and pipes put in exchange for the release of 14,375 connections for new development projects that employers plan to develop the area over a period of 20 years guaranteed. The cost of the project was $ 9 million. "(1)
This means that even small scale private sector has the money and knowledge to the state company she needs to provide the vital liquid. Faster and fees are not high investor has provided a service to those populations.| ICRC.org |
| Saneamiento.com |
- 3. What are the reasons that the private sector would want to participate?
The private sector will be resident in the country that provides it.
1.Legal frameworks. Legal security, the rules of local and international investment, should be clear from the start that governments seek to PPP agreements. El Salvador has broken that rule, when accused Enel Green Power have made fraud Salvadoran state. These allegations come after the government signed with the representatives of Enel that PPP agreement based on the laws that moment I associate. This uncertainty makes investment is withdrawn and has not come never comes. The rules are changed.
2.Transparent processes: Investors should be aware that in order to compete processes must be transparent at an early stage, so everyone equally and that the choice has been chosen, after passing through the appropriate without favoring any special filters.
3.Participation Involved parties: To have governance in the design of a public-private partnership should involve all parties to which they are in one way or another benefited or affected by an infrastructure of great magnitude. Unable to successfully execute any association that does not go with the support of everyone involved.
abc.es libertaddepalabra.com
4.How should these risks be allocated? Consider the country context in judging the risks and who should take them.
The context of legal security that has El Salvador continues to be the same for countries that do not have a defined direction of how to develop the country's infrastructure. Then, the percentage of risk is high because while there is no legal framework is respected, foreign direct investment will fear that their investment will be expropriated by the government, and happened in the public-private partnership signed in 2001 by Enel Green Power, which still maintains a lawsuit against the government of El Salvador for breaking the partnership with prejudice towards the Italian company.
Sign an agreement Public-Private Partnership is a complex process from start to when already being in project implementation. Therefore the risk must be measured according to the phases of the process. During running multiple phases including:
1.Feasibility and economic viability of the project
2.Commercial viability
3.Value for money of the PPP
4.Fiscal Responsibility
These steps help to understand the risks that have particular project, whether it will be able to have returns for the investor if the project has environmental risks that does not affect performance. etc, etc.
But still, always have risks. The question is why the PPP that have the least risk firm, for which it is necessary to follow the structure of the PPP.
1.Identify the risks
2.Allocate risks and responsibilities.
In identifying risks we must apply the golden rule: Assign the risk to each entity is better positioned to manage risk. But this does not mean that everything will be zero risk, since any PPP contracts are long term, so always be complex and always have risks.
Sign an agreement Public-Private Partnership is a complex process from start to when already being in project implementation. Therefore the risk must be measured according to the phases of the process. During running multiple phases including:
1.Feasibility and economic viability of the project
2.Commercial viability
3.Value for money of the PPP
4.Fiscal Responsibility
These steps help to understand the risks that have particular project, whether it will be able to have returns for the investor if the project has environmental risks that does not affect performance. etc, etc.
But still, always have risks. The question is why the PPP that have the least risk firm, for which it is necessary to follow the structure of the PPP.
1.Identify the risks
2.Allocate risks and responsibilities.
In identifying risks we must apply the golden rule: Assign the risk to each entity is better positioned to manage risk. But this does not mean that everything will be zero risk, since any PPP contracts are long term, so always be complex and always have risks.
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| expectadorenegocios.com |
