Ownership Structure & Economic Regulations Water Supply in Cartagena

ARE 146
Name
Institution
ARE 146
To: Mayor of Cartagena
FROM:
SUBJECT: Recommended Ownership Structure and Economic Regulations for Water Supply in Cartagena
Date:
For over a long period of time, the water supply in Cartagena has been under extreme chaos following the relationship between EPM and the City Council that was marred by corruption and mismanagement of funds. Mayor Garcia’s appointment in the 1990s saw the replacement of the EPM Company with another one called the EPD, which had fewer responsibilities compared to the first but still faced corrupt practices amongst its leaders. Even though publicly supplying the water subsidized the cost of the same to an extent, the corruption led to poor customer service, uncontrolled rationing of water, and generally, a reduction in the amount of available water. Later on, Mayor Garcia made the decision of liquidating EPD and in its place, a mixed capital company was created , a move that meant that a private company was now in charge of managing the water and sewerage system while the city maintained ownership over it. The Company Acuacar was formed and had its own benefits. Under Acuacar, corruption was brought to an end, which meant that more time and finances would now be spent on providing better services. With the private company, technical assistance required in improving the systems was assured since the company had specialized in the management of the water and sewerage systems. This would also mean better customer services, improved qua...