Data Regarding Water Concession in Guayaquil Ecuador (Interagua)

Signed in 2001, this Concession Agreement is for the operation, maintenance, financing and building of upgrades for the water and sewer system – a 30 year concession between the State of Guayaquil, Ecuador (Empresa Cantonal de Agua Potable y Alcantarillado de de Guayaquil -ECAPAG) and worldbank.org… International Water Services of Guayaquil (Interagua), a project company sponsored by FCC and Viola. The concessionaires operates on a zone of 5,200 km and serves 2.5 million users. The upgraded assets revert back to the state at the end of the concession. ECAPAG, the former state operator, shifts to a regulator role. The Concession Agreement sets operational targets and service levels (Annex 2). The project contemplates local subcontracting for works with incentives and penalties system, and strict quality control measures (Annex 8). The Concession Agreement requires a comprehensive plan for analysis and reductions of system losses (Section 5.3) and Plan for Expansion of Connections (Section 5.3.2) and five-year plans for system improvements and investments (Section 5.3.3).The Concession Agreement also calls for a promotional plan to achieve public acceptance of the shift to a private operator and emphasize transparency and quality of service (Section 5.8).

Within this page, you will find the original 2001 contract, along with the first addendum (October 2004) which modifies the cost formula to reflect a change in electricity rates. The second addendum (August 2006) modifies a clause that enabled the use of the telecommunications tariff for the investment in new water connections, to change from such specificity to “as allowed by law” and modifies technical specifications. The third addendum (April 2010) modifies the concession agreement to enable pro-poor provisions in the 2008 Constitution of Ecuador and adjust the Force Majeure provision to waive penalties in case of a FM event, if due notice is given. The fourth modification (August 2010) further specifies the mechanism of compensation for forgone income due to the implementation of the “social tariff”. Read Article