Water supply and sanitation in Panama

Water supply and sanitation in Panama is characterized by relatively high levels of access compared to other Latin American countries. However, challenges remain especially in rural areas.

Access

According to the [http://www.minsa.gob.pa/ Ministry of Health] , in 2006 97% had access to potable water and also 97% had access to at least basic sanitation. However, WHO's and UNICEF's [http://www.wssinfo.org/en/welcome.html Joint Monitoring Program/2006] estimates access to improved water supply in 2004 at 99% in urban areas and 79% in rural areas, while access to improved sanitation was 89% in urban areas and 54% in rural areas, as shown in the table below.

"Source": Joint Monitoring Program WHO/UNICEF( [http://www.wssinfo.org/en/welcome.html JMP] /2006).Compared to the data of 1990, there is no significant change neither in water supply nor in sanitation coverage both in urban and rural areas.

Service quality

Despite a lack of statistical data about water quality and continuity of supply, potable water is perceived to be of good quality in Panama and most users receive continuous service.

Responsibility for water supply and sanitation

Responsibilities for the sector are allocated by the Panamanian [http://www.ansp.gob.pa/leyes_decretos/DL2.pdf Water Law] , which was approved in 1997.

Policy and Regulation

The [http://www.minsa.gob.pa Panamanian Health Ministry] is responsible for defining the sector's policy, whereas the "Autoridad Nacional de Servicios Públicos" ( [http://ansp.gob.pa/ ANSP] ) or National Authority for Public Services acts as regulatory agency.

Responsibility for water resources is vested in two institutions: The [http://www.anam.gob.pa "Autoridad Nacional del Ambiente"] or National Environment Authority and the [http://www.acp.gob.pa "Autoridad del Canal de Panamá"] or Panama Canal Authority.

Service Provision

According to the Water Law, the "Instituto de Acueductos y Alcantaeillados Nacional" ( [http://www.IDAAN.gob.pa IDAAN] ) is responsible for water and sanitation services in urban areas with more than 1,500 inhabitants, thus preventing decentralization to municipalities. The only exception is the municipality of Boquete, which manages ist own water supply and sanitation system.

There are approximately 3,300 water supply systems in rural areas, of which 1,800 are managed by "Juntas Administrativas de Acueductos Rurales" (JAARs) or Rural Water Boards. The remaining are managed by Health Committees.

History and Recent Developments

IDAAN was created in 1961 and was made responsible for investments in water supply in urban areas and a significant increase in coverage of potable water and - to a lesser extent - sanitation. The institution disposed of high financial capacities and human resources during its first decades. However, IDAAN's financial situation deteriorated significantly due the absence of any tariff increase until 1982.To face up IDAAN's weakness, its privatization was proposed at the end of the 1990s, following the telecommunications and electricity sector. At the same time, an agency for economic regulation of public services was created, which is now the ANSP. In 1997, a [http://www.ansp.gob.pa/leyes_decretos/DL2.pdf Water Law] was adopted, defining the regulatory and institutional framework for water supply and sanitation.

Privatization was abandoned until a change of government in 1999. Under Mireya Moscoso's administration, [http://www.ansp.gob.pa/leyes_decretos/Ley77.pdf Law 77] was approved to modify the Water Law, permitting privatization and strengthening IDAAN. To significantly increase IDAAN's investments in urban areas, the government decided in 2003 to use financial resources earned through the telecommunication and electricity companies' privatization.

In 2006, the government of Martín Torrijos established the "Programa de Desarrollo Comunitario para Infraestructura Pública" (PRODEC) or Community Development for Public Infrastructure Program (see below).

Tariffs and cost recovery

Neither the tariffs of IDAAN, nor rural tariffs are sufficiently hight to cover investment costs. The tariff structure does not provide incentives to save water. Since half of urban and almost all rural users don't dispose of water meters, those user do not receive bills based on consumption. In addition, even those who have meters pay a fixed tariff for the first 10,000 gallons each month, which is included in the basic residential tariff.

Investment and Financing

In 2005, IDAAN invested US$49m in urban areas. FIS and MINSA invested a much lower amount in rural areas. The bulk of investments was in water supply, while much less was invested in sanitation.

PRODEC aims at investing US$100m of the Panama Canal's gains into community infrastructure, including water supply and sanitation. The use of these funds is decided on a participatory basis through consultative councils at the local level.

Furthermore, the National Investment Fund invests in potable water, in particular in rural areas.

External Support

The World Bank supports the sector through a US$32m loan for the Water Supply and Sanitation in Low-Income Communities Project which is executed my the Ministry of Health. [ [http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P082419 Worldbank: Water Supply and Sanitation in Low-Income Communities] ]

The Interamerican Development Bank (IDB) supports the sector through various projects. The US$45m Panama City and Bay of Panama Sanitation Project, approved in 2006 and executed by the Ministry of Health, supports the extension of the capital's sanitation network. [ [http://www.iadb.org/projects/Project.cfm?project=PN0062&Language=English IDB: Panama City and Bay of Panama Sanitation Project] ] The sustainable development projects in Darién [ [http://www.iadb.org/projects/Project.cfm?project=PN0116&Language=English IDB: Darien Sustainable Development] ] and Bocas del Toro [ [http://www.iadb.org/projects/Project.cfm?project=PN-L1016&Language=English IDB: Multiphase Sustainable Development Program for Bocas del Toro - Phase II] ] include support of water supply and sanitation systems.

The Japanese Overseas Economic Cooperation Fund (OECF) supports sanitation in the city and the bay of Panama through a loan for constructing a sewage plant. [ [http://www.jbic.go.jp/autocontents/english/news/2007/000087/index.htm JBIC Provides Japanese ODA Loan to Panama] ]

The European Investment Bank (EIB) approved a loan to support sanitation in Panama City in 2007.

References

Sources

* [http://www.idaan.gob.pa/boletin2006presentacion.ppt IDAAN, Statistical Bulletin 2006 (in Spanish)]
*World Bank: Panama Public Expenditure Review, 2006

External links

* [http://www.minsa.gon.pa MINSA]
* [http://www.ersp.gob.pa ANSP]
* [http://www.idaan.gob.pa IDAAN]
* [http://www.acp.gob.pa ACP]
* [http://www.anam.gob.pa ANAM]
* [http://www.aderasa.org/es/index.htm Association of Regulatory Agencies for Water Supply and Sanitation -ADERASA (in Spanish)]