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Beginning in the second fifth-year period, obligation to implement the new treatment plants and a macrosystem of drainage as dictated by the Master Plan.
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Obligation to respect and apply the pricing structure established by ECAPAG for the first five years.
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The full investment during the 30 years of contract should reach approximately $1 billion.
The terms of the concession were specifically designed to avoid some of the pitfalls that arose under privatization schemes in other countries and, comparatively, can be considered relatively “poor friendly” in terms of coverage, price, and quality. Recognizing that one of Guayaquil’s greatest problems has been the lack of inclusion of poor communities in the coverage of water and sewage networks, the concession contract specifically requires new connections to be provided to these communities at no cost. Emphasis in the first five years of the contract is placed on Interagua providing a minimum number of these new connections, and marginal communities are identified and incorporated according to an official expansion plan. In order to avoid public backlash, as well as the burden of sudden price hikes, water tariffs are also strictly controlled for the initial years of the contract. The current tariff structure was designed and implemented by ECAPAG in the years prior to privatization to both more adequately cover the real costs of the system and to disassociate the changes in tariff structure from the privatization process so as to mitigate potential public backlash. For the first five years of the contract, the concessionaire is bound to uphold the pre-established pricing structure (barring any unforeseen changes on a national level that influence operational costs). The concession contract also controls for water quality through the use of pressure and quality samples taken throughout the city and submitted to a number of laboratories for testing. Samples are taken by both Interagua and ECAPAG and must fall within the guidelines stipulated in the contract or else sanctions and monetary fines can be imposed. 2.1.3 Public Response to the Concession While there appeared to be very limited negative public opinion regarding the process in the initial years of the concession, the tide has recently turned, and the debate has become much more polarized. An increasing number of complaints have been emerging from marginal
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