Water supply and sanitation in Mexico
Encyclopedia
Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...

: Water and Sanitation
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Data
Water coverage (broad definition) 97%
Sanitation coverage (broad definition) 79%
Continuity of supply (%) 45%
Average urban water use (l/c/d) 270 (2006)
Average urban water tariff (US$/m3) 0.32
Share of household metering 69% (2006)
Share of collected wastewater treated 36% (2006)
Annual investment in WSS US$2 billion (2005) or US$ 20/capita
Share of self-financing by utilities n/a
Share of tax-financing 69% (2006)
Share of external financing n/a
Institutions
Decentralization to municipalities Widespread, except for some states, since 1983
National water and sanitation company No
Water and sanitation regulator No
Responsibility for policy setting National Water Commission
Sector law Yes (1992, amended in 2004), with a focus on water resources
Number of urban service providers More than 2,000
Number of rural service providers n/a

Water supply and sanitation in Mexico is characterized by achievements and challenges. Among the achievements is a significant increase in access to piped water supply in urban areas (87% to 96%) as well as in rural areas (46% to 73%) between 1990 and 2006; a strong nationwide increase in access to improved sanitation
Improved sanitation
According to the Joint Monitoring Programme for Water Supply and Sanitation by the World Health Organization and UNICEF the following are considered as "improved" sanitation:* connection to a public sewer* connection to a septic system* pour-flush latrine...

 (56% to 81%) in the same period; the existence of a functioning national system to finance water and sanitation infrastructure in a federal system with a National Water Commission as its apex institution; and the existence of a few well-performing utilities such as Aguas y Drenaje de Monterey.

The challenges include water scarcity in the Northern and central parts of the country; inadequate water service quality (drinking water quality; 55% of Mexicans receiving water only intermittently according to results of the 2000 census); poor technical and commercial efficiency of most utilities (with an average level of non-revenue water
Non-revenue water
Non revenue water is water that has been produced and is “lost” before it reaches the customer. Losses can be real losses or apparent losses . High levels of NRW are detrimental to the financial viability of water utilities, as well to the quality of water itself...

 of 51% in 2003); an insufficient share of wastewater receiving treatment (36% in 2006); and still inadequate access in rural areas. In addition to on-going investments to expand access, the government has embarked on a large investment program to improve wastewater treatment.

Access

Urban
(76% of the population)
Rural
(24% of the population)
Total
Water Broad definition 100% 87% 97%
House connections 96% 72% 90%
Sanitation Broad definition 91% 41% 79%
Sewerage 80% 16% 64%

Source: WHO
Who
Who may refer to:* Who , an English-language pronoun* who , a Unix command* Who?, one of the Five Ws in journalism- Art and entertainment :* Who? , a 1958 novel by Algis Budrys...

/UNICEF Joint Monitoring Program (JMP/2006). Data for water and sanitation based on the WHO World Health Survey (2003) and the Census (2000).

During the past decade, the Mexican water and sanitation sector made major strides in service coverage with water supply and sanitation coverage. As shown above, in urban areas almost 100% of the population is estimated to have access to improved water supply and 91% to adequate sanitation. In rural areas, the respective shares are 87% for water and 41% for sanitation. Coverage levels are particularly low in the South of the country.

Service quality

Quality of service also leaves much to be desired. The 2000 census
Census
A census is the procedure of systematically acquiring and recording information about the members of a given population. It is a regularly occurring and official count of a particular population. The term is used mostly in connection with national population and housing censuses; other common...

 indicated that 55% of Mexican households with access to piped water received services on an intermittent basis, in particular in smaller municipalities and poor areas. About 36% of wastewater was being treated in 2006, a share that is more than twice as high as the average for Latin America. However, an unknown share of Mexican treatment plants do not comply with norms for effluent discharge.

Water resources

In 2006, 63% of the Mexican water was extracted from surface water, such as rivers or lakes. The remaining 37% came from aquifer
Aquifer
An aquifer is a wet underground layer of water-bearing permeable rock or unconsolidated materials from which groundwater can be usefully extracted using a water well. The study of water flow in aquifers and the characterization of aquifers is called hydrogeology...

s. Due to the strong growth of population and internal migration towards arid
Arid
A region is said to be arid when it is characterized by a severe lack of available water, to the extent of hindering or even preventing the growth and development of plant and animal life...

 and semi-arid
Semi-arid
A semi-arid climate or steppe climate describes climatic regions that receive precipitation below potential evapotranspiration, but not extremely...

 regions, many water resources in North and Central Mexico became overexploited. According to the National Water Commission, groundwater overextraction is at almost 40 percent of total groundwater use. In addition, CONAGUA estimates that 52% of the superficial water is very polluted, whereas only 9% are in an acceptable condition.

Water Use

Despite scarce resources in many Mexican regions water consumption is at a high level, partly favored by poor payment rates and low tariffs. In 2006, more than three quarters (76.8%) was used for agriculture, while public supply only used up 13.9%, the remainder being used by thermal power station
Thermal power station
A thermal power station is a power plant in which the prime mover is steam driven. Water is heated, turns into steam and spins a steam turbine which drives an electrical generator. After it passes through the turbine, the steam is condensed in a condenser and recycled to where it was heated; this...

 (5.4%) and industry (3.8%). In 2006, all in all 77.3 billion m3 were consumed in Mexico, of which 10.7 billion m3 were used for domestic consumption. This means that the average domestic use per capita and day was 270 litres.

History

In the second half of the 20th century, the Mexican water supply and sanitation sector has undergone several changes of organization to improve its performance.

1948-1983: Centralization

Since 1948, responsibility for Mexican urban water supply systems was vested in the Ministry of Water Resources (Secretaría de Recursos Hídricos - SRH) under the federal government. For almost 30 years, the whole urban water organization was planned and carried out by the General Water and Sanitation Committee within the SRH. At the local level, federal Water Boards facilitated some local participation but actually also depended on the SRH.

In 1971, a new committee for water supply and sanitation systems was introduced by SRH facing a high increase in urban population which exceeded the centralized system's capacity to provide services. Despite the creation of more specialized organizations at the national level, the federal government finally had no choice but to decentralize the services to the states and municipalities. The belief that water provision should be a gift from the federal government may be rooted in the policies of that centralization period.

1983-1989: Decentralization

Under President Miguel de la Madrid
Miguel de la Madrid
Miguel de la Madrid Hurtado is a Mexican politician affiliated to the Institutional Revolutionary Party who served as President of Mexico from 1982 to 1988.-Biography:...

, municipalities were entrusted with providing water supply and sanitation services within the framework of a general decentralization process. At the same time, state governments were made responsible for technical and financial assistance. They were also authorized to decide about the municipalities' capacity for providing the services. Most municipalities neither received the necessary financial resources nor the technical assistance to fulfill their new responsibilities. That is why in 1988 only 10 of 31 Mexican states had devolved responsibility to the municipalities and where they did, service quality and efficiency usually deteriorated.

Since 1989: Sector reform through CONAGUA

President Carlos Salinas
Carlos Salinas
Carlos Salinas de Gortari is a Mexican economist and politician affiliated to the Institutional Revolutionary Party who served as President of Mexico from 1988 to 1994. Earlier in his career he worked in the Budget Secretariat all the way up to Secretary...

, elected in 1988, began a significant sector reform, creating the National Water Commission or Comisión Nacional del Agua (CONAGUA) in 1989, which today remains a key player in Mexican water supply and sanitation (see below). At the beginning, it was given the task of defining federal policies to strengthen service providers through technical assistance and financial resources. CONAGUA, among other suggestions soon recommended to strengthen the decentralization process, improve the transparency of tariffs and introduce tariff autonomy, based on real costs for the service provision and free of political influence. Consequently, many water laws were introduced or amended, partly following CONAGUA's guidelines. In 1996, 21 states had transferred service provision to municipal service providers.

Recent developments

Even though the legal preconditions for a functioning sector are fulfilled to a large extent, it still faces serious problems regarding efficiency, political influence, service quality and in some areas coverage.

A 2004 modification of the National Water Law envisaged the transfer of certain functions from both the federal and state levels to newly created institutions at the level of river basins, including financial decisions through the creation of a National Water Financial System. The provisions of the new law remain to be implemented.

Policy and regulation

Priorities at the national level are set through six year state development plans. The 2007-2012 National Water Program (Programa Nacional Hídrico) is aimed at reaching the following:
  • Improve water productivity in agriculture
  • Improve access and quality to water supply and sanitation
  • Support integrated and sustainable water resources management in basins and aquifers
  • Improve the technical, administrative and financial development in the sector
  • Consolidate user and society participation and in this way support economic use
  • Prevent risks of meteorological phenomenons
  • Evaluate the effects of climate change to the water cycle
  • Create a culture in compliance with the sector law


Federal policies for water and sanitation are set by the CONAGUA, which became a well-established autonomous entity under the Ministry of Environment. CONAGUA plays a key role in the sector's financial allocation. Besides water supply
Water supply
Water supply is the provision of water by public utilities, commercial organisations, community endeavours or by individuals, usually via a system of pumps and pipes...

 and sanitation
Sanitation
Sanitation is the hygienic means of promoting health through prevention of human contact with the hazards of wastes. Hazards can be either physical, microbiological, biological or chemical agents of disease. Wastes that can cause health problems are human and animal feces, solid wastes, domestic...

, it is also responsible for water resources management, irrigation
Irrigation
Irrigation may be defined as the science of artificial application of water to the land or soil. It is used to assist in the growing of agricultural crops, maintenance of landscapes, and revegetation of disturbed soils in dry areas and during periods of inadequate rainfall...

, flood protection and personnel services.

At the regional level, responsibility for water supply and sanitation vary among the 31 Mexican states. Most of them have created State Water Commissions (Comisión Estatal de Agua - CEA), which are autonomous entities that are usually under the authority of the State Ministry of Public Works. Most of them provide technical assistance to municipalities and some operate water distribution systems.

Service provision

According to the Mexican constitution responsibility for water supply and sanitation services delivery rests with 2,446 municipalities since the decentralization
Decentralization
__FORCETOC__Decentralization or decentralisation is the process of dispersing decision-making governance closer to the people and/or citizens. It includes the dispersal of administration or governance in sectors or areas like engineering, management science, political science, political economy,...

 of 1983. However, a few states deliver services through state water companies on behalf of municipalities. In some cases, the state agencies directly provide water and sanitation services. In rural areas, water boards (Juntas) are responsible for water supply.

Due to different policies and programs at the local level, service is provided directly by municipalities or by cooperatives, public or private utilities, which differ substantially concerning size, autonomy, performance and financial efficiency. Although most providers lack political independence and financial efficiency, there are some notable exceptions that are efficiently operated.

Private sector participation

In three Mexican cities, water and sanitation services are provided by private companies as of early 2011: Cancun
Cancún
Cancún is a city of international tourism development certified by the UNWTO . Located on the northeast coast of Quintana Roo in southern Mexico, more than 1,700 km from Mexico City, the Project began operations in 1974 as Integrally Planned Center, a pioneer of FONATUR Cancún is a city of...

, Saltillo
Saltillo
Saltillo is the capital city of the northeastern Mexican state of Coahuila and the municipal seat of the municipality of the same name. The city is located about 400 km south of the U.S. state of Texas, and 90 km west of Monterrey, Nuevo León....

 and Aguascalientes
Aguascalientes
Aguascalientes is one of the 31 states which, with the Federal District, comprise the 32 Federal Entities of Mexico. It is divided in 11 municipalities and its capital city is Aguascalientes....

. The concession in Cancun, the largest ot the three cities, is the oldest concession, awarded in 1993. As of 2011, it is held by Grupo Méxicano de Desarrollo (GMD), which is part-owned by Suez Environnement
Suez Environnement
Suez Environnement S.A. is a French-based utility company which operates largely in the water treatment and waste management sectors. Formerly an operating division of Suez, the company was spun out as a stand-alone entity as part of the merger to form GDF Suez on 22 July 2008. GDF Suez remains...

 from France. The privately held shares in the mixed public-private company in Saltillo, set up in 2001, are held by Aguas de Barcelona, a Spanish subsidiary of Suez Environnement. Services in Aguascalientes are provided by Proactivo Medio Ambiente, a joint venture between Veolia Environnement from France and the Spanish construction firm FCC
Fomento de Construcciones y Contratas
Fomento de Construcciones y Contratas is a leading Spanish construction company based in Barcelona. It is publicly traded and is part of the IBEX 35.Over 50% of the shares are owned by a company controlled by Esther Koplowitz and others.-History:...

 for the Latin American market. As of 2011, the government planned to award further water concessions beginning with San Luis Potosí
San Luis Potosí
San Luis Potosí officially Estado Libre y Soberano de San Luis Potosí is one of the 31 states which, with the Federal District, comprise the 32 Federal Entities of Mexico. It is divided in 58 municipalities and its capital city is San Luis Potosí....

, Tijuana
Tijuana
Tijuana is the largest city on the Baja California Peninsula and center of the Tijuana metropolitan area, part of the international San Diego–Tijuana metropolitan area. An industrial and financial center of Mexico, Tijuana exerts a strong influence on economics, education, culture, art, and politics...

 and Tuxtla Gutiérrez
Tuxtla Gutiérrez
Tuxtla Gutiérrez is the capital and largest city of the Mexican state of Chiapas. It is considered to be the state’s most modern city, with most of its public buildings dating from the 20th century. One exception to this is the San Marcos Cathedral which began as a Dominican parish church built in...

. A concession law that would improve the legal framework was under review by the Mexican parliament as of March 2011.

Efficiency

The efficiency and quality of water and sanitation services vary widely, to a large extent reflecting different levels of development across the country. On average, the level of non-revenue water
Non-revenue water
Non revenue water is water that has been produced and is “lost” before it reaches the customer. Losses can be real losses or apparent losses . High levels of NRW are detrimental to the financial viability of water utilities, as well to the quality of water itself...

 in Mexico was 51% in 2003, about twice as high as for well-run utilities. The average staff per 1,000 connections among a sample of 35 large utilities in Mexico was 4.5 in 2000.

Tariffs

The Mexican average tariff per m3 (US$0.32) is about half of the average in Latin America and the Caribbean (US$0.65). However, since tariffs are fixed at the municipal level depending on different legal frameworks, they differ substantially. Consequently, domestic users in Tijuana
Tijuana
Tijuana is the largest city on the Baja California Peninsula and center of the Tijuana metropolitan area, part of the international San Diego–Tijuana metropolitan area. An industrial and financial center of Mexico, Tijuana exerts a strong influence on economics, education, culture, art, and politics...

 monthly pay US$1.1 for 30m3, whereas customers in Villahermosa
Villahermosa
Like most of the Tabasco, Villahermosa has a tropical climate. The city specifically features a tropical monsoon climate. Temperatures during spring and summer seasons reach upwards of 40°C , with humidity levels hovering around 30% during the same period...

 only pay US$0.05 for the same amount. On average only 72% of all bills are being paid. 31% of water customers are not metered and are charged a flat rate independent of consumption. Usually, commercial and industrial users are charged tariffs close to full cost recovery, whereas residential users are cross-subsidized.

Sanitation is normally charged as a small percentage share of the water bill.

Cost recovery

Since tariff levels and structures vary widely in Mexico, some providers fully recover all costs while others do not even cover operating costs. There are no reliable figures concerning water supply and sanitation revenues in Mexico. However, it seems that the sector as a whole generates a little modest cash surplus, which seems to reflect shortfalls in essential spending on maintenance and modernization rather than financial efficiency. According to CONAGUA, total tariff collections were US$2 billion (MxP21.2 billion) in 2006.

Investment

According to CONAGUA, US$ 1.4 billion (MxP 14.7 billion) were invested in the sector in 2006, which is US$ 13 per capita. Compared to the investment from 1996 to 2002, which was between US$ 3.7 and US$ 5.5per capita, this is a significant increase. However, investment was still higher at the beginning of the 1990s. The average per capita investment from 1997 to 2003 is higher than in Costa Rica, Ecuador and Honduras, but it falls short of the investment in other bigger Latin American countries like Argentina or Colombia.

Financing

Investments are financed by federal (33% in 2005), regional (23%) and local subsidies (14%) and other sources (31%) including self-financing, credits and private funding. Two thirds of the investment is channeled through several CONAGUA programs. Due to overlapping planning and budget cycles at the national, regional and local level as well as poor coordinated investment plans, project planning is extremely difficult.

External support

Most water and sanitation investments in Mexico are financed domestically. Among the major external lenders for water supply and sanitation are the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...

 and the Inter-American Development Bank
Inter-American Development Bank
The Inter-American Development Bank is the largest source of development financing for Latin America and the Caribbean...

, which channel their loans to utilities through the National Water Commission. The Japan International Cooperation Agency
Japan International Cooperation Agency
The Japan International Cooperation Agency is an independent governmental agency that coordinates official development assistance for the government of Japan...

 (JICA) support a Potable Water Quality Control Project in Mexico City since 2005.

World Bank

The World Bank supported a US$300 million project in the state of Guanajuato
Guanajuato
Guanajuato officially Estado Libre y Soberano de Guanajuato is one of the 31 states which, with the Federal District, comprise the 32 Federal Entities of Mexico. It is divided in 46 municipalities and its capital city is Guanajuato....

 from 2004 to 2009, of which 40% were allocated for water supply and sanitation. It also supported a US$55.2 million technical assistance project for the modernization of the water and sanitation sector approved in 2005.

Inter-American Development Bank

The Inter-American Development Bank
Inter-American Development Bank
The Inter-American Development Bank is the largest source of development financing for Latin America and the Caribbean...

 has financed a series of rural water supply and sanitation projects in Mexico with a focus on decentralization, community development and participation. It began with a first US$560 million project approved in 1998 community development and participation in 20 states, followed by a second US$292.5 million project approved in 2005. A third phase with a cost of US$200 million was under preparation in early 2010.

Other sources

Comisión Nacional de Agua (CONAGUA): Situación del Subsector Agua Potable y Saneamiento, 2006

External links


See also

  • Water resources in Mexico
    Water resources in Mexico
    Water resources in many parts of Mexico are under stress, especially in the arid northwest and central regions where most of the population lives and most of the economic activities are located...

  • Water management in Greater Mexico City
    Water management in Greater Mexico City
    Greater Mexico City , a metropolitan area with more than 19 million inhabitants including Mexico's capital with about 9 million inhabitants, faces tremendous water challenges...

  • Irrigation in Mexico
    Irrigation in Mexico
    Mexico, a classified arid and semi-arid country, has a total land area of 2 million square kilometres, 23% of which is equipped for irrigated agriculture. The agricultural sector plays an important role in the economic development of the country accounting for 8.4 of agricultural gross domestic...

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