OSE Modernization and Systems Rehabilitation

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The OSE (the National Water and Sanitation Company) Modernization and Systems Rehabilitation Program Project for Uruguay aims to increase the efficiency, coverage, and sustainability of water supply and sanitation services. The project has three main components. Component 1 encompasses the following five sub-components which improve OSE's responsiveness to its customers: internal benchmarking, decentralization, modernization of management, environmental capacity building, and strategy development for service provision. Component 2 has three sub-components: 1) the expansion and rehabilitation of a treatment plant, which enhances the sustainability of Montevideo's water supply; 2) the Unaccounted-for Water (UFW) Reduction Program which increases the sustainability of water supply investments in the interior; and 3) the Small Town Water Supply Program which extends coverage to beneficiaries who do not currently have piped water. Component 3 supports expansions in sewage collection and increases in treatment under three sub-components: 1) a national sanitation master plan which reviews existing arrangements for financing, operating, and prioritizing sanitation investments; 2) a sewerage extensions program which helps OSE to pilot a new demand-responsive approach to expanding existing systems that improves investment targeting and cost-recovery; and 3) a sub-component providing investment financing to increase appropriate sewage treatment and disposal in the interior.