Water and a Green Economy in Latin America and the Caribbean

More documents

Recommendations

Info

Water in the Green Economy in Practice: Towards Rio+20 Propoor financing and tariffs in Medellin, Colombia 7 Colombia, as is the case of many countries of the region, has implemented different economic reforms to improve the living standards of its population. In the public utilities arena, measures have been taken in terms of tariff structure and changes in the institutional framework. However, there are still economic, social and legal barriers that have hindered the achievement of universal coverage of drinking water supply and sanitation services, especially for the poorest segments of the population. People living in poverty face innumerable access problems related to the lack of financial capacity to afford a minimum water service allowance, and the inability to save enough money to pay for their consumption. This has been a crucial issue in the water sector in the developing world for many decades. In addition, experience shows that low or no income is not the only barrier inhibiting access to water services. Other conditions associated with poverty in these areas, such as social unrest, violence, unemployment and underemployment, urban displacement, and other related factors, threaten to undermine economic efforts to guarantee access to services. In many cities in the developing world, as in Medellín, the poor peri-urban population not only lives under “border” economic conditions, entering and exiting the formal world, but also in extreme social, legal, and institutional situation. This interception of multiple geographical, economic and social stress factors constitutes a major challenge to extending water services coverage to these areas. Moreover, this population is more vulnerable to external social and economic shocks (unemployment, sickness or death of members of close social networks, etc.). Governments in association with utilities in the developing world have a responsibility to address these challenges in services provision. The experience of Empresas Públicas de Medellín (EPM), water services provider for Medellín and the Aburrá Valley 8 in Colombia, is to combine formal public policies at the local and national level with its own corporate social responsibility policies to create shared values in the benefit of the weakest segment of the population. A portfolio of initiatives has been specifically designed with the aim of guaranteeing universal access to public services, and to prevent this vulnerable population from falling into a poverty trap that impedes the possibility of connection and consumption of these essential and vital services. About EPM EPM is a Colombian company owned by the Municipality of Medellin. EPM is a public utilities providing water, electricity, gas and telecommunications services, and its main market is the metropolitan area of Medellin and the Department of Antioquia, with population 7 Rubén D. Avendaño, Empresas Públicas de Medellín. 8 The Aburrá Valley is the basin of the Medellín River and one of the most populous valleys of the Andean Region of Colombia with more than 3 million inhabitants. It is home to ten cities: Medellín, Barbosa, Bello, Caldas, Copacabana, Envigado, Girardota, Itagüí, La Estrella and Sabaneta. WaterandaGreenEconomy Case studies from the region 29
Water and a Green Economy in LAC WaterandaGreenEconomy Case studies from the region 30 of 5.2 million people. It is the second largest water and sanitation utility in Colombia and currently its profits transferred to the municipality represent around a third of the latter’s annual budget. EPM is recognised nationally and internationally for its efficiency and quality operations. It demonstrates good financial results, high service quality standards, high credit ratings by national and foreign financial agencies and the social acknowledgment 9 of its performance and commitment to improve the quality of life of its customers, especially the poor. EPM projects are developed in accordance with strict financial, technical and legal principles, and all its procedures and controls for the acquisition of goods and services guarantee transparency in all contractual processes. Its management and directors are independent of any political influence. In addition, EPM’s corporate governance model and its corporate social responsibility policy have become important drivers for the growth and sustainability of the company. The approach: cost recovery and financing mechanisms Understanding that the access problem is critical in Medellin, EPM has designed and implemented a variety of solutions tailored to target people with different needs. A key issue regarding how to overcome the barriers to the poor is the institutional capacity to understand the problem and to design and implement effective solutions. EPM has the institutional capacity for managing the entire process from problem identification to the implementation and evaluation of the programs. This process requires first of all, a clear understanding of the initial situation to enable the formulation of appropriate and comprehensive strategies. A conceptual framework is first developed, based on interdisciplinary studies and an in-depth analysis of the user’s economic and social behaviour that is affected by rules, regulations and organizations. The next step is the planning of the intervention, identifying the roles and responsibilities of the actors involved (national government, local government, nongovernmental organizations, third parties, and the EPM itself), followed by the design of mechanisms that better respond to the main objective — service universalisation. Finally, during and after implementation, the development and application of permanent monitoring and evaluation techniques is essential. In the pursuit of its goals as public services provider, and in response to the challenges faced in its service area, EPM has designed the following strategies to increase access to drinking water supply and sanitation services, prevent services disconnection and to improve the quality of life of its customers: Network Connection Financing Program (NCFP) The NCFP is an EPM initiative designed to provide access to water services to low-income households in the peri-urban areas of the Aburrá Valley. The program offers long-term 9 As demontrated in the survey “Medellín cómo vamos”, a civil initiative created in 2006 to evaluate the quality of life in the city of Medellin (http://www.medellincomovamos.org/).
Page 1 and 2: Water and a Green Economy in Latin
Page 3 and 4: Water and a Green Economy in LAC Wa
Page 5 and 6: WaterandaGreenEconomy Foreword 4 Wa
Page 7 and 8: WaterandaGreenEconomy Introduction
Page 9 and 10: WaterandaGreenEconomy Mainstreaming
Page 13 and 14: Water and a Green Economy in LAC C.
Page 15 and 16: WaterandaGreenEconomy and a green e
Page 19 and 20: Water and a Green Economy in LAC be
Page 21 and 22: Water and a Green Economy in LAC B.
Page 25 and 26: Water and a Green Economy in LAC TA
Page 27 and 28: Water and a Green Economy in LAC an
Page 29: Water and a Green Economy in LAC Wa
Page 33 and 34: Water and a Green Economy in LAC in
Page 35 and 36: Water and a Green Economy in LAC Co
Page 37 and 38: Water and a Green Economy in LAC be
Page 39 and 40: Water and a Green Economy in LAC an
Page 41 and 42: Water and a Green Economy in LAC pr
Page 43 and 44: Water and a Green Economy in LAC on
Page 47 and 48: Water and a Green Economy in LAC In
Page 49 and 50: Water and a Green Economy in LAC In
Page 51 and 52: WaterandaGreenEconomy Annexes 50 An

Water and a Green Economy in Latin America and the Caribbean

Create successful ePaper yourself

Delete template?

Save as template?