WTR SUPP & SANIT SCT

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The main objectives of the Water Supply and Sanitation Sector Project are to support the implementation of the Sector Reorganization Program which is designed to improve the quality and quantity of water supply and sanitation services, promote sound pricing policies, progressively reduce the need for government funding and improve environmental conditions in Mexico. The project includes two major components: (a) a national component to assist in the institutional development of sector institutions, support the implementation of new sector policies, finance studies to prepare model contracting documents and develop a strategy to encourage private sector participation in the provision of water and sanitation services, and finance the preparation of a follow-up water pollution control project; and (b) a state and local component to help finance sector investments which focus on the poorer areas of the subproject cities. These investments involve rehabilitation and expansion of water supply and sanitation systems. In addition, the loan will finance project engineering, and institutional strengthening of the operating agencies.