High rotation in municipal utilities causes inefficiency - Aneas

- Friday, August 19, 2011

High rotation in municipal utilities causes inefficiency - Aneas

The high rotation in the management of Mexico's municipal water utilities causes inefficiencies with services and infrastructure, Roberto Olivares, director of the national association of water and sanitation companies, Aneas, told BNamericas.

Aneas carried out a study of the period in office for utility directors over the last few years and found each director serves an average of one year and four months.

Without long-term governance and planning, Mexico's water utilities cannot act effectively. While municipal governments change every three years, there should be some mechanism to ensure long-term planning is respected following changes in administration, according to Olivares.

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"Utilities should be decentralized from the municipal administration but in reality they act as an extension of it. This is not a positive thing," the Aneas spokesman said.

Many municipal utilities have no executive board and instead rely on the municipal president to make major decisions.

"This is not an effective way to run a utility," Olivares said.