Output-Based Aid in Water : Lessons in Implementation from a Pilot in Paraguay
Paraguay's aguateros-small private water companies- form an important part of the water sector, serving about 9 percent of the total population (or about 17 percent of those with piped water supply). But until recently they operated only in urban areas, where water resources are abundant, and they could choose customers, based on their ability to pay the full costs of providing service. A new Bank-funded initiative seeks to attract aguateros and construction firms active in the water sector to un-served rural areas and small towns, by providing an output-based aid subsidy, awarded through competitive bidding. The initiative is the first attempt anywhere to apply this approach to rural and small-town water sector investment. This Note reviews the early lessons.
Summary: | Paraguay's aguateros-small private
water companies- form an important part of the water sector,
serving about 9 percent of the total population (or about 17
percent of those with piped water supply). But until
recently they operated only in urban areas, where water
resources are abundant, and they could choose customers,
based on their ability to pay the full costs of providing
service. A new Bank-funded initiative seeks to attract
aguateros and construction firms active in the water sector
to un-served rural areas and small towns, by providing an
output-based aid subsidy, awarded through competitive
bidding. The initiative is the first attempt anywhere to
apply this approach to rural and small-town water sector
investment. This Note reviews the early lessons. |
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