VZCZCXYZ0024
PP RUEHWEB

DE RUEHSN #0780 2332048
ZNR UUUUU ZZH
P 212048Z AUG 09
FM AMEMBASSY SAN SALVADOR
TO RUEHC/SECSTATE WASHDC PRIORITY 1517
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS SAN SALVADOR 000780 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ENRG EAGR SENV ES
SUBJECT:  NEW WATER WORKS PRESIDENT LAYS OUT GOALS 
 
¶1. (SBU) SUMMARY.  The newly appointed National Water and Sewage 
Administration (ANDA) President Francisco Gomez described to 
Econoffs August 18 the multitude of challenges facing the new GOES. 
These challenges include ineffective subsidies, waste and 
inefficient production, and extending services to less affluent and 
rural areas.  Currently lacking the ability to invest in new 
infrastructure and equipment, Gomez indicated that ANDA will instead 
focus efforts on correcting perceived inequities in the provision of 
services.  END SUMMARY. 
 
¶2.  (U) Econoffs met with ANDA President Francisco Gomez on August 
¶18.  In addition to its role as a service provider, ANDA also 
regulates and develops water sector policy.  During the meeting, 
Gomez said one of the most pressing problems facing the new GOES is 
correcting inequities in the provision of services.  Access to water 
supply and sanitation services in rural areas and less affluent 
portions of urban areas remains low, he said, adding that the rural 
poor often go days or weeks without receiving water and spend a 
significant share of their productive time collecting water from 
polluted rivers or from the nearest municipality. 
 
¶3. (SBU) Gomez said the new administration is studying ways to 
implement a more equitable distribution system for water and sewage 
services.  According to Gomez, ANDA has historically serviced the 
wealthier sectors of San Salvador with minimal interruption, while 
the less affluent sectors endured intermittent supply, ranging from 
16 hours per day to less than 4 hours per day.  Due to a lack of 
water meters, Gomez asserted that the cost of services is roughly 
the same for large consumers in wealthy neighborhoods as for small 
consumers in poor neighborhoods.  As an example, Gomez said the 
monthly bill of the Radisson Hotel in San Salvador is $66 dollars, 
while the bill in his private residence is $30 dollars. 
 
¶4. (SBU) Ineffective subsidies and inefficiencies in production are 
also serious challenges.  Gomez said it currently costs ANDA 80 
cents to produce one cubic meter per second of potable water (m3), 
but water is sold at an average of 30 cents per m3.  For political 
reasons, the water rate has been adjusted only twice in the last 12 
years, the last time in 2001.  Gomez believes the rates are not 
socially equitable since the subsidies implicit in the low rates 
predominantly benefit users with the most access to services, which 
historically have been the more affluent neighborhoods.  The high 
costs to produce water can be primarily attributed, he said, to the 
outdated water pumps that consume 508 million megawatt hours per 
year, or approximately 13 percent of the total power annually 
consumed in the country.  Additionally, Gomez said 50 percent of the 
water produced is lost through cracks in the poorly maintained and 
aging water supply infrastructure system. 
 
¶5. (U) Gomez plans to purchase new pumps and other supporting 
equipment for the country's main water treatment plant, including 
valves that can help detect leaks.  However, he said that due to 
budgetary constraints, ANDA does not have the necessary resources to 
purchase equipment and would require financial assistance from 
"friendly governments".  Gomez said the Government of Japan recently 
contributed technical support and has provided training on detecting 
water leaks, but ANDA currently does not receive financial 
assistance from other foreign governments. 
 
¶6. (SBU) COMMENT: Francisco Gomez appears to have clear ideas of 
what he wants to accomplish as President of ANDA.  Rumors 
circulating in the press that Gomez plans to "steal water from the 
rich to give to the poor" appear to stem from the new GOES's stated 
desire to increase access to services to rural and poor urban areas. 
 Our meeting with Gomez seemed to confirm that the new ANDA 
President wants to ensure that water is distributed equitably and 
that end users pay their fair share.  If Gomez follows through on 
his plans, many affluent sectors in San Salvador will begin to 
experience disruptions in service.  Gomez's attitude is reflected in 
ANDA's new slogan which is featured prominently on its website, 
"water for everyone".  END COMMENT. 
 
BLAU