Servicios de Abastecimiento y Saneamiento - La Tribuna del Agua

SERVICIOS DE ABASTECIMIENTO Y SANEAMIENTO
REGULATION AND PRIVATISATION OF THE
PROVISION OF DRINKING WATER, SEWERS
AND SEWAGE TREATMENT SERVICES:
CHILE – A SUCCESSFUL CASE
Magaly Espinosa Sarria and José Rodriguez Sandoval
ABSTRACT:
The development of drinking water, sewers
and sewage treatment services sector in the last
few decades are described comparing results obtained
in coverage and quality of service provided
and identifying the decisive factors that allow for
the experience to be shown as a success.
Almost two decades have passed since the inception
of the privatisation process of the sanitation
companies and the operational and financial
results achieved in this sector have placed Chile
at the forefront of countries that have been successful
in the transfer of property and exploitation
rights to drinking water companies in the private
sector.
Likewise, it was necessary to design a direct
subsidy mechanism, focusing on consumers with
the intention of protecting the access to a minimum
consumption level for drinking water and
sewers to those families most economically bereft.
Thus, it was the government of Eduardo Frei
which decided to push forward and implement a
model incorporating private capital based on the
sale of batches of shares in the country’s main
state-run companies. To do so, it was necessary
to pursue a series of modifications within the cu-
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rrent regulatory framework in 1998 – which were
intended to avoid concentrating property, to regulate
conflicts of interest and manipulation of
information, to strengthen the fiscal institutions
in the sector, and to improve the methodical accuracy,
clarity and transparency and the procedures
in the establishment of taxes.
A second period of private participation was
propelled by the government of Ricardo Lagos,
but this time the scheme used was that of the
transfer of rights of exploitation of the sanitary
concessionaires.
The role of the Superintendence of Sanitary
Services is described: this is a regulating and fiscal
body for the management model that the country
adopted and as such it constitutes a fundamental
pillar in the success of the model applied and the
results achieved. It exercises the role of Tax Fixer,
granting areas of Concessions and Audit and control
over the private operators.
KEYWORDS:
Regulatory framework, privatisation of drinking
water, sewers and sewage treatment services, superintendency
of sanitary services, successful results.