NEW WATER WORKS PRESIDENT LAYS OUT GOALS

UNCLAS SAN SALVADOR 000780 SIPDIS E.O. 12958: N/A TAGS: ECON ENRG EAGR SENV ES SUBJECT: NEW WATER WORKS PRESIDENT LAYS OUT GOALS ¶1. (SBU) SUMMARY. The newly appointed National Water and Sewage Administration (ANDA) President Francisco Gomez described to Econoffs August 18 the multitude of challenges facing the new GOES. These challenges include ineffective subsidies, waste and inefficient production, and extending services to less affluent and rural areas. Currently lacking the ability to invest in new infrastructure and equipment, Gomez indicated that ANDA will instead focus efforts on correcting perceived inequities in the provision of services. END SUMMARY. ¶2. (U) Econoffs met with ANDA President Francisco Gomez on August ¶18. In addition to its role as a service provider, ANDA also regulates and develops water sector policy. During the meeting, Gomez said one of the most pressing problems facing the new GOES is correcting inequities in the provision of services. Access to water supply and sanitation services in rural areas and less affluent portions of urban areas remains low, he said, adding that the rural poor often go days or weeks without receiving water and spend a significant share of their productive time collecting water from polluted rivers or from the nearest municipality. ¶3. (SBU) Gomez said the new administration is studying ways to implement a more equitable distribution system for water and sewage services. According to Gomez, ANDA has historically serviced the wealthier sectors of San Salvador with minimal interruption, while the less affluent sectors endured intermittent supply, ranging from 16 hours per day to less than 4 hours per day. Due to a lack of water meters, Gomez asserted that the cost of services is roughly the same for large consumers in wealthy neighborhoods as for small consumers in poor neighborhoods. As an example, Gomez said the monthly bill of the Radisson Hotel in San Salvador is $66 dollars, while the bill in his private residence is $30 dollars. ¶4. (SBU) Ineffective subsidies and inefficiencies in production are also serious challenges. Gomez said it currently costs ANDA 80 cents to produce one cubic meter per second of potable water (m3), but water is sold at an average of 30 cents per m3. For political reasons, the water rate has been adjusted only twice in the last 12 years, the last time in 2001. Gomez believes the rates are not socially equitable since the subsidies implicit in the low rates predominantly benefit users with the most access to services, which historically have been the more affluent neighborhoods. The high costs to produce water can be primarily attributed, he said, to the outdated water pumps that consume 508 million megawatt hours per year, or approximately 13 percent of the total power annually consumed in the country. Additionally, Gomez said 50 percent of the water produced is lost through cracks in the poorly maintained and aging water supply infrastructure system. ¶5. (U) Gomez plans to purchase new pumps and other supporting equipment for the country's main water treatment plant, including valves that can help detect leaks. However, he said that due to budgetary constraints, ANDA does not have the necessary resources to purchase equipment and would require financial assistance from "friendly governments". Gomez said the Government of Japan recently contributed technical support and has provided training on detecting water leaks, but ANDA currently does not receive financial assistance from other foreign governments. ¶6. (SBU) COMMENT: Francisco Gomez appears to have clear ideas of what he wants to accomplish as President of ANDA. Rumors circulating in the press that Gomez plans to "steal water from the rich to give to the poor" appear to stem from the new GOES's stated desire to increase access to services to rural and poor urban areas. Our meeting with Gomez seemed to confirm that the new ANDA President wants to ensure that water is distributed equitably and that end users pay their fair share. If Gomez follows through on his plans, many affluent sectors in San Salvador will begin to experience disruptions in service. Gomez's attitude is reflected in ANDA's new slogan which is featured prominently on its website, "water for everyone". END COMMENT. BLAU