Compliance Advisor Ombudsman

Complaint

International Water Services Project Guayaquil (“Interagua”) was supported by an $18 million MIGA guarantee in 2001. The company aims to improve services and operating performance of the existing water utility in Guayaquil, Ecuador, as a private sector operator. It is regulated by a government agency under the terms of a concession contract that sets out targets for quality of water provision, connections of potable water and sewage, and service coverage. A complaint was filed in January 2008 by residents of the city of Guayaquil, the Asociacion Movimiento Mi Cometa and the Observatorio Ciudadano de Servicios Publicos.The signatories raised concerns about cuts of residential water to the poor, lack of service hook-ups in poorer neighborhoods, lack of sewage or wastewater treatment, and compliance with the concession contract between the company and the Government of Ecuador.

CAO Action

Following a CAO Ombudsman assessment, the parties agreed to work together to try to resolve the issues. In October 2008, a CAO team met with the parties in Guayaquil following passage of a Constitutional Referendum that prohibits all forms of water privatization in Ecuador. Although the referendum satisfied some of the complainants' concerns, they requested continued engagement with CAO to resolve 3,533 complaints that water users have submitted to the NGO, and other outstanding issues. After the October 2008 meeting, the parties reached several agreements on processes for resolving the issues, including suspension of water cuts, information and awareness campaigns, debt reduction program for accounts in arrears, joint monitoring of water quality, and improvements in customer service.

Progress toward implementation of those agreements was reported and discussed by stakeholders at a formal Dialogue Table that met regularly and included representatives of water users, the company, and the NGO who filed the complaint on behalf of the water users. As part of the agreements, the parties jointly piloted a Conflict Resolution Table to review and resolve individual user complaints.  The progress and lessons learned from the Conflict Resolution Table led to the creation of a permanent Ombudsman mechanism within the company for individuals to resolve issues with their water service.  The mechanism will include participation of a users' representative. At request of the parties, CAO is monitoring the establishment of the mechanism for a period of three months before formal closure of the complaint.

Status

CAO Ombudsman has facilitated a final settlement agreement to the satisfaction of all parties, and will monitor its implementation for a period of three months.