VZCZCXRO2194
RR RUEHLMC
DE RUEHSN #2514/01 2902110
ZNR UUUUU ZZH
R 172110Z OCT 06
FM AMEMBASSY SAN SALVADOR
TO RUEHC/SECSTATE WASHDC 4051
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC

UNCLAS SECTION 01 OF 02 SAN SALVADOR 002514 
 
SIPDIS 
 
SECSTATE WASHDC FOR OES/PCI - SALZBURG AND BLAINE 
STATE PASS USAID - MILLER AND DEELY 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ENRG EAGR SENV ES
SUBJECT: ADVANCING U.S. EFFORTS ON WATER AND SANITATION IN EL 
SALVADOR 
 
REF: A. STATE 128229, B. SAN SALVADOR 1887 
 
Summary 
------- 
¶1.  This cable responds to Ref. A.  Water is an important topic in 
El Salvador as the country wrestles with issues such as access to 
drinking water, management of water infrastructure by the national 
administrator, aquifer depletion, conservation, and strains caused 
by development.  The USG has opportunities to act on a number of 
fronts to assist El Salvador in future water development, including 
continued USAID assistance and leveraging a possible Millennium 
Challenge Corporation compact.  End summary. 
 
Water Needs 
----------- 
¶2.  The water sector presents a mixed picture in regulation and 
supervision, with several agencies having jurisdiction over the 
water sector, resulting in inefficiencies, poor accountability, and 
lack of a comprehensive policy framework.  For example, the Ministry 
of Agriculture operates and administers the national irrigation 
system, the Ministry of Public Health monitors the quality of water 
for human consumption and industrial production, and the National 
Water and Sewage Administration (ANDA) operates and regulates water 
and sewage.  A water law (reftel B) that would provide a basis for 
national organization of water resources has yet to be presented to 
the National Assembly for debate, and there is no timeframe to 
introduce it. 
 
¶3.  Distribution of water remains a critical problem in El Salvador 
and: only 22 percent of the rural population and 91 percent of the 
urban population have access to water in their homes.  ANDA water 
service is of low quality due to the age and poor maintenance of 
water systems and inefficient operating practices.  In 2006, ANDA 
raised rates for the first time since 1994, for those who use above 
average amounts of water, to help compensate for a loss in 
government support, cut from $107.5 million in 2005 to $91.2 million 
in 2006. 
 
¶4.  There is a critical need for improved management of water 
resources and water system infrastructure in El Salvador. 
Quantitative data is unavailable, but anecdotal evidence indicates 
that water resources are diminishing.  El Salvador receives 1.8 
meters of rainfall on average per year, but the distinct dry and wet 
seasons and a lack of integrated resource management are producing 
water shortages in many parts of the country.  Development and 
destructive practices in many areas affect natural drainage 
patterns, leading to increased flooding and landslides.  In 
addition, only 2 percent of effluent in El Salvador is treated, 
leading to heavy contamination of rivers, and streams, groundwater, 
and estuaries. 
 
¶5.  Through the Red Solidaria Program, intended to alleviate and 
reduce poverty, the GOES hopes to decrease the incidence of 
waterborne diseases by repairing or building latrines and potable 
water systems and providing training/technical assistance to 
communities in 100 municipalities in extreme poverty, benefiting 
about 900,000 people.  In addition, the GOES is actively working to 
meet a Millennium Development Goal (MDG) to reduce by half the 
number of individuals without access to an improved water source by 
¶2015. 
 
USG Engagement 
-------------- 
¶6.  USAID El Salvador carried out a successful clean water access 
activity from 1999 through 2005 that demonstrated that effective 
water management can help solve many interrelated economic, health, 
and social problems.  This activity directly affected over 200,000 
Salvadorans by (a) promoting private sector financing of water 
systems/water business; (b) developing local conservation capacity 
so that Salvadorans have the skills needed to restore watersheds; c) 
increasing awareness of the need for effective and efficient methods 
of managing and using water; (d) strengthening social participation 
in water management to ensure long-term supply and reduce future 
stress on existing supplies of water; and e) promoting the linkage 
of clean water access to household sanitation and proper hygiene 
habits. 
 
Links to Other Sectors/Specific Programs 
---------------------------------------- 
¶7.  Building on its previous water project, USAID's current Improved 
Management and Conservation of Critical Watersheds Activity will 
link economic incentives to watershed conservation.  To encourage 
sustainability, one goal is to leverage local funds (public and 
private) to help develop conservation interventions after the 
activity ends.  The incorporation of costs of environmental services 
in tariffs charged to water users is a fundamental step in ensuring 
the sustainability of both integrated water resources/watershed 
management and local development strategies. 
 
SAN SALVAD 00002514  002 OF 002 
 
 
 
¶8.  Environmental and health education at all levels (community 
leaders, farmers, government officials, students, etc.) can also 
contribute to enrich the integrity of water resources management. 
USAID's current Cleaner Production Activity will introduce, 
demonstrate, and promote more effective and efficient methods for 
water supply and sanitation, capitalizing on the incentive of 
increased savings for private and public enterprises.  Under the 
Healthier, Better Educated People Strategic Objective, USAID will 
provide training to Community Health Teams to promote better hygiene 
and water use practices at the household level, and proper use and 
maintenance of latrines in selected geographic areas. 
 
Barclay