Peru: local water utilities bankrupt, new legislation proposed

The majority of Peru’s 50 regional water utilities (EPS) are on the brink of bankruptcy – having registered negative financial results – and 41 have a total debt of US$1.62bn , according congressman Isaac Serna. Serna has presented a bill to strengthen EPS [by creating] policies to finance, modernize and reorganize the management of the utilities. Supporters of the bill are requesting that the state set policies to financially help the utilities, which could include resources from the national government.

In addition, the initiative requests regional governments, in coordination with the municipalities that currently manage the EPS, to provide resources and become shareholders in the utilities. The bill also suggests that the EPS merge into one regional company, with the regional capital’s water utility absorbing the rest.

Source: BNamericas [subscription site], 15 May 2009