In Peru: an essay on the failure of water privatization

By Carlos Franco Pacheco*
August 2004

The Peru chapter of the Inter-American Network of Vigilance for the Defense and Right to Water (Red VIDA by the Spanish acronym), which was formed by FENTAP, CXD, CANACAMI, Foro Ecologico, ASPEC, CCP and CGTP (complete names below) announced that they will bring to the Social Forum of the Americas a full report of the resounding failure of the privatization of water services in Pacasmayo, San Pedro de Lloc and other areas in the Valley of Jequetepeque. In these areas the mayors decided to contract the water services to the private company, Nordwasser SAC. However, this situation brought serious problems and could not be supported by the Provincial Municipality of Pascamayo and so there was a need to intervene in the situation of the privatization. The current review of the events has given rise to the need for the Municipality to independently constitute its own company to administrate the water and sanitation services, with the participation of a Tripartite Commission.

In 2002, Nordwasser won a 30-year contract for the water and sewerage services in the context of serious questions and concerns from the people of Pascamayo. Later, in 2004, the Town Council Accord No. 059-2004-MPP declared null and void the right to commercial exploitation of water services. But, the problem did not end there. The contract required that the Municipality of Guadalupe pay 12 million soles, but curiously Nordwasser only invested 25,000 soles (about $3,500). These events were denounced by the Mayor of Pascamayo, Victor Montoya who had to expel the company, which then resulted in a legal claim against him.

The Red VIDA in Peru will continue to expose this situation. On Saturday, June 19th the failure of the privatization was presented by a representative of FENTAP to the Regional Forum for Water and the Environment in La Libertad who was visibly angered that despite this situation, the Toledo administration continues promoting the privatization of water services in all of Peru.

The Red VIDA of Peru, with the support of FENTAP and ACORN has been providing testimonies of the responses of citizens in Huancayo, Sullana, Piura, Chiclayo, Pisco, and Lima due to the attempts to privatize the water services and give away the basic right to this natural resource.

The Red VIDA was founded on the principles of the ‚San Salvador Declaration” which put on record the total rejection from Latin America organizations of the processes of privatization of our water resources and the public water services.

*Carlos Franco Pacheco
Foro Ecologico de Peru
Region Lima, Coordinador
CCN- Red VIDA Peru

Tel: 51-1-2490526
municipiochorrillos@yahoo.com