VZCZCXRO5616
RR RUEHCD RUEHHO RUEHNG RUEHRS
DE RUEHME #0368/01 0342208
ZNR UUUUU ZZH
R 032204Z FEB 10
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC 0325
INFO ALL US CONSULATES IN MEXICO COLLECTIVE

UNCLAS SECTION 01 OF 02 MEXICO 000368 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: SENV MX
SUBJECT: Acute Water Shortage in Mexico City's Metropolitan Area 
 
¶1. (U) Summary:  Mexico City's water system has long been plagued 
by a combination of sustained population growth, insufficient 
infrastructure, a water pricing system that barely covers 30 
percent of costs, and infrastructure damage that causes leakage of 
up to 30 percent of its supply.  Over the past year, Mexico City 
has experienced its lowest rainfall in 68 years.  The level of its 
main external water supply, the Cutzamala system, dropped about 50 
percent, which led local and federal authorities to implement water 
rationing and to increase water tariffs.  Although local 
legislators approved an increase of water rates to begin in March 
and officials have begun promoting water saving measures and 
appliances, severe water shortages will continue at least until the 
middle of the next rainy season (July - August 2010).  Despite a 
doubling of Mexico City's budget for water management in 2010, 
resources are insufficient to address the various infrastructure 
and other requirements that would ensure sustainable use of water 
in the metropolis.  End summary. 
 
¶2. (U) The Cutzamala reservoir system, a complex of seven dams 
located in the State of Mexico, supplies 30 percent of potable 
water to Mexico City.  Last July the system dipped to just 42 
percent of capacity, as Mexico experienced its lowest rainfall in 
68 years.  Meteorologists attribute the drought to El Ni????o, a 
climate phenomenon expected to end by March 2010. Concerned about a 
potential interruption of water supply in areas of Mexico City????s 
Metropolitan Zone, last August 12 Jose Luis Luege, Director General 
of the National Water Commission (CONAGUA), Ramon Aguirre, Director 
of Mexico City's Water System (SACM) and Oscar Hernandez, 
Undersecretary for Water in the State of Mexico, announced an 
indefinite 30 percent water cut to save 381 thousand cubic meters 
of water daily.  With Cutzamala at only 58 percent capacity, last 
month city officials announced an extension of the water rationing 
until at least the next rainy season, in July-August of 2010. 
 
A Long-Standing Problem 
 
----------------------- 
 
¶3.  (U) The most affected districts include about 35 percent of the 
city's population.  The city supplements these districts' water 
supply through tank trailers, but is unable to supply water in a 
timely manner, with some people paying up to USD 190 to fill their 
cisterns through private companies.  The city's poorest residents 
pay disproportionately, because they are located in the affected 
districts and must purchase bottled water or water from tank 
trailers. 
 
¶4. (U) Urban growth in Mexico City has far exceeded its 
infrastructure.  Veronica Martinez, Project Coordinator from the 
Water Consultative Council noted that Mexico City water demand has 
increased four-fold over the last 50 years, causing an 
overexploitation of Mexico City's aquifers and forcing the city to 
depend on external water sources (the Cutzamala-Lerma-Santiago 
watershed in the State of Mexico).  This overexploitation has 
caused land subsidence of between two and ten inches annually in 
various locations, damaging water pipelines and drainage systems, 
which in turn exacerbates water loss through leakages and aquifer 
pollution.  During a seminar organized by researchers from the 
Colegio de Mexico's Center for Research on Demography, Urban, and 
Environmental Issues (CEDUA), experts called for strengthening 
social participation based on a policy of equity, efficiency and 
cost-pricing.  Specialists also recommended the use of rain water 
capture systems, sewage water treatment, and repair of main water 
pipes, through which 30 percent of Mexico City's water is lost to 
leakage. 
 
Water Saving Measures: Saving Water is Up to You 
 
--------------------------------------------- --- 
 
¶5. (U) Officials from CONAGUA, SACM and the State of Mexico 
launched a campaign in coordination with the National Association 
of Appliance Producers (ANFAD) to implement water-saving showers 
and toilets that follow ecological targets designed by CONAGUA: 
showers of 3.8 liters per minute or less and toilets of 5 liters 
per discharge.  Mexico City Water Director Ramon Aguirre also 
announced the replacement of one million shower heads with low-flow 
models, a 20 percent cutback of water consumption in public 
buildings, and the replacement of old pipes to eliminate 
large-scale leaks.  As part of its public relations campaign, the 
Mexico City government published announcements in local newspapers 
and distributed brochures in public transportation last fall: "This 
is the worst drought in the history of Mexico City...this is not a 
warning, this is real; the city may be without water by February 
2010; saving water is up to you."  Like other water conservation 
initiatives, the campaign was cut short due to lack of resources, 
but will probably resume next spring as water demand increases and 
water shortage continues.  During a public event on Mexico City's 
water program for 2010, Mexico City Mayor Marcelo Ebrard pointed 
 
MEXICO 00000368  002 OF 002 
 
 
out that his priority was to guarantee water supply and asked 
citizens to avoid waste of water as the water shortage persists. 
 
Is Water a Good, or a Human Right? 
 
---------------------------------- 
 
¶6. (SBU) Mayor Ebrard and Ramon Aguirre proposed an increase in 
water rates in 2010 to encourage water conservation, to cover 
maintenance costs, and to help cover CONAGUA's own 18 percent cost 
increase.  While some members of the Mexico City Legislative 
Assembly (equivalent to a state legislature) advocated the 
elimination of existing subsidies, arguing that the system does not 
get enough revenue to cover its costs, others were opposed, calling 
water a human right and rejecting the addition of another cost 
during the current economic crisis.  [Note: The real cost of a 
cubic meter of water in Mexico City is USD 1.7, but customers are 
only charged USD 2 cents, and nearly 45 percent of water revenue 
remains uncollected due to lack of payment, clandestine water 
intakes, and leaks. End Note]  Last December Emboffs met with 
Aguirre, who noted that although Mayor Ebrard would welcome 
participation of the private sector in water management, Mexico 
City Assembly members consider it not a politically prudent 
decision, particularly those belonging to the controlling leftist 
party in Mexico City, the PRD.   Aguirre also commented that the 
private sector would likely find it fiscally challenging to 
participate in Mexico City's water system, considering that the 
public and legal perception of water as a "human right" drives the 
prices down to a rate at which companies would find it impossible 
to make a profit.  Aguirre noted that the city lags behind a decade 
in water infrastructure, including water supply, water meters, 
drainage and sewage water treatment, and replacement of old 
pipelines.  Although SACM's budget for 2010 had doubled to a total 
of USD 115 million, Aguirre observed that the agency would require 
three times that amount to provide an adequate water 
infrastructure.  Jose Luis Luege, head of CONAGUA, has pointed out 
that the main problem of Mexico City's Metropolitan Zone is water 
supply and the best way to face it is with coordinated efforts 
between federal and local governments, and the private sector. 
 
¶7. (U) On December 23, Mexico City????s Legislative Commission of 
Finance and Public Accounting approved an increase in water tariffs 
according to a scheme based on socio-economic level and level of 
use.  An average household use of 20 to 30 cubic meters per month 
will cost in a range of USD 2.70 to USD 11.5, depending on the 
location of the neighborhood; poorer neighborhoods will have lower 
rates.  Although the increase in water rates may cause some 
discontent, Mexico City Secretary of Environment Martha Delgado 
claimed that a recent poll showed that people would be willing to 
pay more for water if the supply were stable. 
 
Comment 
 
------- 
 
¶8. (SBU) Years of centralized authority and overgenerous subsidies 
have resulted in an underfunded and unsustainable water management 
system. Population growth and Mexico City's location at an altitude 
of 7,300 feet (the city lies on high plateau where water must be 
pumped from wells and external water sources before it reaches the 
tap) make the supply of drinking water and sewage removal a major 
challenge.   SACM and CONAGUA are analyzing possible external 
sources of water for the city.  It is widely considered a good sign 
that local authorities are finally advocating public measures to 
save water and admitting that it may be necessary to address the 
water shortage with more aggressive measures.  An increase in water 
rates may decrease water usage, especially if the rates are high 
enough to cover the cost of the water to the government, though 
this remains a difficult political proposition.  Other public 
measures could include permanent campaigns on rational use and the 
imposition of limits to urban growth.  Fernando Menendez, advisor 
to Mexico City????s Secretary of Environment, has pointed out that an 
additional 19 cubic meters per second will probably be necessary 
within the next 15 years to guarantee water supply to the city????s 
growing population.  He stressed that the only way to ensure such a 
water supply is through an integral water management plan that -- 
besides rational consumption -- includes repair of water leakages, 
treatment and re-use of sewage water, and cost benefit projects to 
capture water in forested areas that comprise more than fifty 
percent of the city????s territory.  There are many signs that the 
city is nearing its limits on water supply.  If municipal 
government and citizens are unable to implement tough preventative 
measures, escalating drought may force even more painful political 
decisions.  End comment. 
PASCUAL