MX Oaxaca WSS Sector Modernization

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The objective of the Oaxaca Water and Sanitation Sector Modernization Operation Project for Mexico is to support the improvement of the institutional framework of the water supply and sanitation sector of the State of Oaxaca, and to improve the quality and sustainability of water supply service in selected urban areas. Mexico is an upper middle-income country with one of the highest per capita incomes among Latin American countries. A rebound of economic growth during 2010-12 boosted shared prosperity as income growth of the bottom 40 percent of the population increased higher than the average income. However poverty levels have not decreased significantly in recent years and currently 53 million Mexicans (45 percent of the total population) still live under the national poverty line1, with persistent and substantial differences across regions and ethnic groups. The Government of Oaxaca (GoO) and the Bank signed a Memorandum of Understanding (MoU) in June 2011 which includes multi-year, multi-sectoral support to the State, combining a package of knowledge, convening and financial services, to support a reform agenda for inclusive growth in Oaxaca and for modernizing the State's public institutions and policies. The MoU was structured around four areas: (i) public sector modernization; (ii) human development; (iii) finance and private sector; and (iv) sustainable development. In 2013, the MoU has been renewed for another two years.