Pushing Water Privatization in Mexico
In 2002, the World Bank gave Conagua (the National
Water Commission) a $250 million loan to create a program
called PROMAGUA. PROMAGUA is part of a new infrastructure
financing fund that provides loans to municipalities
to upgrade and expand their water systems if they negotiate
public private partnerships (privatization), reform
their state water laws, and impose full cost recovery.
This has already created a small backlash. For example,
in the town of Saltillo, which was one of the first
cities to receive a PROMAGUA loan, there is now a vibrant
citizen's coalition to get SUEZ out. When the PROMAGUA
official at a recent conference used the Saltillo "success
story" story in her flashy power point presentation
the Saltillo citizen's coalition was right there with
lots of facts showing that this was far from a success
story!
Other cities with major privatization contracts include
Puerto Vallarta, Aguascalientes, and Cancun. There are
smaller service contracts in a number of major cities
such as Puebla and Mexico City. And, a good number coming
down the pike pushed by the PROMAGUA infrastructure
fund. In Mexico City service contracts with Suez, Vivendi
and United Utilities (Bechtel) have pushed forward the
installation of water meters which has caused a backlash
because many of the poorer neighborhoods want to retain
a "cuota fija" (fixed cuota) system where there payment
is adjusted based on average income in a neighborhood
or district using census figures.
Many neighborhoods are suspicious that they will pay
higher rates if they get meters and have organized to
maintain the "cuota fija." All in all it was a real
inspiration to connect with water activist groups in
Mexico. We need to work hard to build the connections
between our campaigns!
(report by Sara Grusky from Water and Public-Private
Partnerships conference in Mexico City) Sara Grusky
International Water Working Group Water for All Campaign
Public Citizen Phone: (202) 454-5133 Website: www.citizen.org/cmep/water
