Click here to get the PDF

November 9, 2007

Mr. Riley P. Bechtel
Chairman and Chief Executive Officer
Bechtel Corporation
45 Fremont Street
San Francisco, CA 94105

Cc: President Rafael Correa, International Water Services/ Interagua, The World Bank agency MIGA, U.S. House Foreign Affairs and Financial Services Committee members.

Dear Mr. Bechtel:

The undersigned organizations are writing to express our serious concern with the activities of your subsidiary International Water Services or Interagua Ltda. in Guayaquil, Ecuador. Aided by loans from the Inter-American Development Bank and a guarantee from the World Bank agency, MIGA, your company won a concession contract to manage the water and sanitation services in the city of Guayaquil in October 2000. This contract was signed shortly after the company left Cochabamba, Bolivia following massive protests due to consumer rate hikes and other problems with the water privatization contract in that city. The citizens of Guayaquil, Ecuador are now experiencing similar problems and are demanding accountability from the company. The Ecuadorian regulatory agency ECAPAG recently fined Interagua $1.5 million for contractual violations. The following issues, including documented contractual violations, have been brought to our attention.

• Repeated residential water cut-offs for up to 12, 24, 36 or more hours at a time;
• Residential water cut-offs of senior citizens and other low-income residents due to inability to pay;
• Failure to extend services to specific neighborhoods, especially low-income residents;
• Failure to meet contractual obligations for rehabilitation and expansion of services;
• Public health problems such as respiratory problems, skin rashes, asthma and diarrhea due to lack of wastewater treatment;
• Environmental contamination due to lack of wastewater treatment;
• Hepatitis A outbreak in June 2005 which was investigated by local authorities (Commission for Civic Control and the Public Defender’s office) who concluded that the water was “not suitable for human consumption.”

The undersigned organizations wish to extend our heartfelt support to the citizens of Guayaquil who are calling upon Interagua to respect their constitutional rights, their basic human needs, and their fundamental human rights. The Citizen's Observatory for Public Services in Guayaquil has worked tirelessly to bring attention to these problems. We call upon Bechtel, the subsidiary International Water Services and the local water company Interagua, to take the following actions to address the demands of the residents of Guayaquil:

1. Take immediate action to forgive all the water debts of residents whose services have been cut due to inability to pay;
2. Reconnect the water services of all residents whose services have been cut due to inability to pay;
3. Ensure compliance with the concession contract regarding rehabilitation and expansion of water services;
4. Ensure compliance with the concession contract regarding waste water treatment;
5. Ensure compliance with the Ecuadorian constitution, laws and regulations regarding the right to water and water quality standards;

The Ecuadorian government needs to address citizen demands that water and other public services, be locally and publicly owned, controlled and managed with active citizen oversight and participation.

As you know, water is essential to sustain all life. The United Nations Committee on Economic, Social and Cultural Rights adopted the human right to water on November 26, 2002 and the United Nations Development Programme’s Human Development Report of 2006 calls on all governments to enshrine the right to water in enabling legislation. The human right to water is indispensable for leading a life of human dignity. Access to clean and affordable water and basic sanitation services are fundamental human rights. Everyone should have secure access to sufficient safe water and sanitation to meet their basic human needs. We await a prompt response to these issues.

Sincerely,
Food & Water Watch

ACT UP East Bay, United States

Administración Autónoma Para Obras Sanitarias, AAPOS, Bolivia

Americas Policy Program, United States

Antiimperialist Movement Siempre en Guardia, Argentina

Anti-Privatisation Forum, South Africa

Apunipima Cape York Health Council,Australia

Asociación YAKU, Italia

Attac, Spain

Attac, Denmark

Beyond Nuclear, United States

Bloque Popular, Honduras

Blue Planet Project, Canada

BUILD, India

Caribbean Latin America Coalition, United States

Catholic Health East, United States

Center for Policy Analysis on Trade and Health, United States

Centre for Human Rights and Rehabilitation, Malawi

Centro Cultural, Social y del Medio Ambiente Ceibo – Maipú, Chile

Centro de Derechos Humanos "Fray Francisco de Vitoria O.P.", A.C., Mexico

Child Development Foundation, Holland-India

Citizens Against Privatisation (CAP), New Zealand

Coalición de Organizaciones Mexicanas por el Derecho al Agua, Mexico

Collective Initiative for Research and Action, Nepal

Collective Initiative for Research and Action (CIRA), Nepal

Colombia Support Network, United States

Comisión Nacional en Defensa del Agua y la Vida, Uruguay

Comité de Agua Potable Hermogenes Aguilar COMAPHA, Bolivia

Comité Pro Agua sin Arsénico, Ecuador

Commitee in Solidarity with El Salvador (CISPES), United States

Community Environmental Monitoring, India

Conference of Major Superiors of Men (CMSM), United States

Consejo de Defensa de la Cuenca del Río Pilcomayo, CODERIP, Sucre Bolivia

Cooperativa de Servicios de Agua y Alcantarillado de Tarija Limitada ,COSAALT, Tarija, Bolivia

Coordinadora del Agua, Bolivia

Coordinadora Nacional de Resistencia Popular, Honduras

Coorporacion La Ceiba, Columbia

Corporación Ecofondo, Columbia

Corporate Accountability, United States

Council of Canadians, Canada

Defending Water for Life Campaign, Alliance for Democracy, United States

Democracy Center, Bolivia

Eco Pax Mundi, United Kingdom

Enginyeria Sense Fronteres, Spain

Environmental Justice Coalition for Water, United States

Escuela del Pueblo primero de Mayo, Bolivia

Federación de Trabajadores Fabriles de Cochabamba, Bolivia

Federación de Trabajadores Fabriles Jubilados de Cochabamba, Bolivia

Federación Departamental de Cooperativas de Agua Potable y Alcantarillado Sanitario, FEDECAAS Ltda, Santa Cruz, Bolivia

FIVAS, Foreningen for Internasjonale Vannstudier, Norway

Food First, USA

Frente Nacional de Saneamento Ambiental, Brazil

Friends of the Earth, United States

Fundación Abril, Bolivia

Gender Action USA

Ghana National Coalition Against Privatisation of Water, Ghana

Global Economy Project, Institute for Policy Studies, United States

Global Exchange, United States

Global Justice Ecology Project, United States

Grupo de Trabajo de Control Social y Participación Ciudadana GTCS, Bolivia

Health Action for Human Rights, The Philippines

Jibhi Community Health Action Initiative, India

Jubilee USA Network, USA

Justice and Witness Ministries, United Church of Christ, United States

Marin Peace and Justice Coalition, United States

Maryknoll Office of Global Concerns, United States

Melamchi Local Concern Group, Nepal

Midwest Coalition for Responsible Investment, United States

Missionary Oblates of Mary Immaculate, United States

Nicaragua Network, United States

Oil Watch International, USA

Otros Mundos, A.C., Mexico

Our Water, Germany

People's Health Movement, Australia

Polaris Institute, Canada

Producers, "Thirst" United States

Public Services International, International

Rainforest Action Network, USA

Red de Género y Medio Ambiente, Mexico

Rede Brasileira pela Integração dos Povos (REBRIP), Brazil

REDES-Amigos de la Tierra, Uruguay

Region VI Coalition for Responsible Investment, United States

RR Resources - Albert J.Roebert, former deputy managing director of Amsterdam Water Supply, The Netherlands

Rural Reconstruction Nepal (RRN), Nepal

SANIPLAN, United States

School of the Americas Watch, United States

Sisters of Charity of Cincinnati, USA Corporate Responsibility Committee, United States

Sisters of Charity of Nazareth Congregational Leadership, United States

Sisters of Charity, BVM, United States

Sisters of the Sorrowful Mother, United States

Social Justice Alliance, United States

Solidariedade e Educação (FASE), Brazil

Su-Politik (Water-Political), Turkey

The Clean Air Action Group, Hungary

The Corner House, United Kingdom

The Latin America Solidarity Centre (LASC), Ireland

The World Development Movement, United Kingdom

Witness for Peace, United States