Sabanagrande and Santo Tomas water and sewage concession

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In March 2005 the local government of the Atlantico Departnement, Colombia, awarded a 19 year concession for water and sewage services in the towns of Sabanagrande and Santo Tomas to local private operator Empresa de Acqueducto y Alcantarillado de Barranquilla (AAA). The two cities had a combined population of some 69,000 people. In 2005 water coverage rates for Sabanagrande and Santo Tomas were 93% and 57%, and sewage coverage was 60% and 40%, respectively. Water loss rates for the two cities stood at 73%. AAA’s contract followed the 2004 cancellation of a previous ten year concession awarded to Acuasasa SA (see project 3323). The contract between the Atlantico Department and AAA was signed on March 18, 2005. AAA was awarded the contract following an open competitive tender. Two groups purchased packages with the bidding rules, but AAA was the only company to submit a bid. In 2005 AAA operated water utilities in Colombia, the Dominican Republic and Ecuador. AAA committed to meet a number of performance goals within the first three years of operation: * Expand water coverage rates to 95% of the population. * Expand sewage coverage to 85% of the population. * Increase continuity of service to 24 hours per day. * Increase service quality such that 100% of the water supplied meets the standards set out in Decree 475 of 1998 of the Colombian Ministry of Health. These objectives were to be reached through an investment program estimated at 6,000 million peso ($2.58 million). Financing was provided as follows: 1,850 million peso from the Atlantico Department, 2,150 million peso from the central government, and 2,000 million peso from the operator.