Subnational Series TABLE OF CONTENTS I Connecting to Water and Sewerage in Mexico Pilot Indicator II CONNECTING TO WATER AND SEWERAGE IN MEXICO © 2017 International Bank for Reconstruction and Development/The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. 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Examples of components can include, but are not limited to, tables, figures, or images. All queries on rights and licenses should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: [email protected]. TABLE OF CONTENTS 1 Connecting to Water and Sewerage in Mexico Pilot Indicator Table of Contents 2 Case Study: Connecting to Water and Sewerage in Mexico 10 Methodology 14 Annex I. Indicator Details 15 Annex II. Questionnaire Instrument 29 Acknowledgments 2 CONNECTING TO WATER AND SEWERAGE IN MEXICO Case Study: Connecting to Water and Sewerage in Mexico Case Study: Connecting to Water and Sewerage in Mexico ater is a key resource for businesses. Production sewerage systems. Comparing 16 Mexican cities, the analysis chains across a wide range of industries rely on a captures both the efficiency of the process and aspects related steady supply of water—whether for heating, cooling, to the quality of the services provided by the utility companies W 6 cleaning or use as a product component. Facilitating access to this and of the regulations governing the process. resource—in sufficient quantity and quality and at a reasonable cost—is basic to promoting investment and economic growth. An inefficient water system may harm the productivity of businesses WHAT DO THE PILOT INDICATORS ON as well as undermine the financial viability of the water utility. The CONNECTING TO WATER AND SEWERAGE United Nations estimates that 78% of jobs worldwide depend MEASURE? on access to water.1 Research by the World Health Organization suggests that each dollar invested in improving access to drinking The connecting to water and sewerage indicators measure all water and sanitation generates a return of $3–34, depending on the procedures required to connect a commercial establishment the region and the technology involved.2 to the water and sewerage systems as well as the time and cost associated with each procedure. In addition, a fourth indicator, In Mexico the share of the urban population with access to the quality of the provision of water services index, assesses aspects drinking water rose from 78.4% in 1990 to 92.4% in 2015.3 The of the quality of the relevant regulations and of the public water share with access to sewerage increased by even more—from and sewerage systems. This index has three component indices: 61.5% to 91%.4 But efficiency remains a concern. Estimates the transparency of information and tariffs index, the quality control suggest that about 45% of the water supplied to the distribu- mechanisms for new connections index and the efficiency and reli- tion systems goes unbilled as a result of losses in the systems, ability of supply index (figure 1.1). metering inaccuracies or illegal connections.5 Aging pipelines, water quality issues (such as the degree of hardness) and con- To make the data comparable across cities, several assump- stant changes in pressure levels due to intermittent water sup- tions about the commercial establishment and the water and ply not only disrupt business operations but may also lead to the sewerage connections are used. The establishment is assumed deterioration of machinery, thus affecting business productivity. to provide laundry services in the periphery of the municipal- ity’s urban area. It is located 10 meters (33 feet) away from the Subnational Doing Business, through a set of pilot indicators, ana- system main, and its average consumption is 6,600 liters (1,743 lyzes the process that an entrepreneur in Mexico must under- gallons) per day. The water connection will have a diameter of 1 take to connect a commercial establishment to the water and inch, and the sewerage connection a diameter of 6 inches.7 CASE STUDY 3 FIGURE 1.1 What do the connecting to water and sewerage indicators measure? Days to comply with formalities to Whether requirements, costs and time frames for obtaining a new connect a business to the water connection are clear, available and respected in practice; whether and sewerage systems Transparency of information and tariffs tariffs are publicly available and customers are notified of changes; whether Independent mechanisms exist for filing complaints 25% Quality of the provision of Time water services Whether inspections are legally mandated and done in practice Quality control 25% index when the utility does not undertake the installation; whether mechanisms for new licensed or technical experts are involved in feasibility evaluations 25% 25% connections and supervision of connection works Procedures Cost What the frequency of water supply interruptions is; what instruments Efficiency and are used to monitor the system (water served, water consumed, reliability of supply leakage levels); whether a mapping system is in place; whether the Steps to comply with Cost to comply with installation of meters at customers’ property is legally mandated formalities (technical formalities, as % of conditions, inspections income per capita and constructions works) out in three phases (figure 1.2). First, the customer requests, and HOW DOES THE CONNECTION PROCESS the utility carries out, a service feasibility study to determine WORK IN MEXICO? whether the utility can supply the required quantity and quality of water and can discharge the required quantity of wastewater. At the federal level, the National Water Commission (Comisión Second, the utility prepares a quotation listing all the costs to Nacional del Agua, or Conagua) is responsible for managing be paid by the customer—including connection fees and the national water resources and ensuring drinking water safety in costs of materials, labor and a meter—which the customer Mexico.8 One of its objectives is to strengthen the technical and pays before the connection works begin. Finally, the connection financial capacity of the water and sewerage utilities (organis- works are completed, and the customer signs a supply contract. mos operadores de agua). At the local level, these utilities operate In addition, the utility performs inspections at different points of the water and sewerage systems under a concession agreement the process. (titulo de concesión) and are responsible for providing basic water and sewerage services to the population. Among the 16 utilities Connecting a business to the water and sewerage systems in the operating in the cities covered by the study, 14 are public, 1 is 16 cities takes 8 procedures and 40 days on average, and costs private and 1 is mixed.9 The utilities’ coverage area also differs. 47.7% of income per capita. Culiacán has the fastest process, at Nine operate at the municipal level, 3 at the intermunicipal level 16 days, with the feasibility study and connection works each tak- and 4 at the state level.10 According to the National Institute of ing a week. Guadalajara has the lowest cost, at 12.4% of income Statistics and Geography, there are 2,356 water and sewerage per capita.