Sabanagrande and Santo Tomas water and sewage first concession

cancelled

In August 2000 the Columbian towns of Sabanagrande and Santo Tomas, through municipal operator Empresa de Servicios Publicos Domicilirios de Acueducto Y Alcantrillado de Santo Tomas y Sabanagrande (ASOSASA ESP), awarded a 10 year concession for their water and sewage systems to private operator Acuasasa SA Empresa de Servicios Publicos, Esp. Acuasasa became responsible for the operation and maintenance of the existing water and sewerage collection systems, and promised to increase network coverage from 85 to 95 percent of the population. The two municipalities had a population of 43,000 at the time of contract signing. Total project investments were estimated at US$4.6 million in 2002. The funds were provided by the federal government (US$0.8 million), municipal governments (US$3.4 million), and the private operator (US$0.4 million). ASOSASA cancelled the contract on October 5th 2004, claiming that Acuasasa failed to meet their investment commitments and provided insufficient service. Also in October 2004 ASOSASA issued a provisory six months contract with Baranquilla-based Empresa de Acqueducto y Alcantarillado de Barranquilla (AAA). In 2005 ASOSASA granted a new contract to cover the service in the two municipalities. None None