Corposana Privatization Aims to Improve Coverage

Bnamericas Published: Tuesday, December 19, 2000
The privatization of Paraguay's waterworks corporation Corposana is aimed primarily at increasing drinking water and sewerage coverage and improving the quality of service to clients, Paraguay's national state reform secretariat announced. Only 44.8% of the country's population receives drinking water. In urban areas the figure is 58% and 9.8% in rural areas. Sewerage systems have only been built in certain urban areas and serve 7% of the national population, and 13.6% of the urban population. Corposana's failure to satisfy demand has led to the creation of small and medium-sized private waterworks companies, the government agency said. Under the sector's new legal framework, which includes the incorporation of private capital into Corposana, a waterworks regulator Erssan has been created to supervise the sector and concessions to private companies. The state reform secretariat is currently waiting for the go-ahead to invite pre-qualified investment banks to present offers for a contract to draw up the privatization mechanism and launch an international auction for Corposana. Meanwhile, the secretariat will contract a law firm to prepare all legal aspects of the process. According to the secretariat's timetable, Corposana should be in the hands of private operators before the end of 2001.

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