Ocana municipal water utility second contract

Cancelled

In October 1999, the municipality of Ocona(Norte de Santander Department)granted a 5 year management contract to operate its water and sewerage services to Colombian Empresa de Servicios Publicos de Ocana. This was the second management contract granted for the same water utility and was directly negotiated between the municipal government and the operator. In May 2003, the economic conditions of the contracts were modified. The lease payments for the assets increased from 33% to 36% of water revenues and from 33% to 47% of sewerage revenues. A new major unilaterally canceled the contract in October 2001 indicating the economic conditions of the contract were too onerous. The municipality had a population of 78,856 inhabitants in 2005. None None