The Aftermath of your decisions....
CEO Ian Hinojosa from Smart Decisions, Ltd., proclaims the feasibility of a sustainable water management plant in Smallville, as a solution to the town's water scarcity. Griselda Solis, Head of Treasury, asserts that the private sector can bring the needed financing.
Alexandra Flores, World Bank (WB) Country Director, stresses that bringing the private sector into water and sanitation service provision will ensure access to hundreds of people who lack clean and affordable water.
Araceli Torres, Mayor of Smallville grants the rights for management and operation of water and sanitation services to Small Decisions, Ltd (co-owned by the Velazquez, Carreón and other wealthy families). The WB agrees to provide an adittional 92 million loan for investment in a developing program.
By the next year, 400 more families are connected to the water system. With the improved services, increased consumption brings unexpected loss to Smart Decisions.
Since the partnership was announced, increased expectation of employment has boost the population of Smallville: "We're chasing our own American Dream" says Gerardo Tijerina, one of a thousand job-seekers. The company is not able to provide adequate access to all.
Only a year into the contract, Smart Decisions seeks the first price increase. The government argues that there is no commitment to universal access to clean and affordable water unless significant profit is guaranteed. In turn, the company proclaims that local authorities have no intention of making significant contribution to ensure the access.
Fixed prices are granted by the company, but the weak regulation from government allows Smart Decisions to make futher price adjustments.
Price hikes prompt consumers to boycott paying their water bills.
The Regulatory Commission lead by Luis F. Vela and Rocio Corpus bans any form of rate increse for the sake of it's people.
In turn, trade union is crushed by the company. 648 workers are laid off to "reduce costs". Outraged people guided by Zurizadai Rodriguez, Luis F. Garcia, and other labor and human rights leaders start a 4 daystrike to drive out the water company. Smallville's in turmoil as riot police and protesters clash in the streets.
Alexandra Flores, World Bank (WB) Country Director, stresses that bringing the private sector into water and sanitation service provision will ensure access to hundreds of people who lack clean and affordable water.
Araceli Torres, Mayor of Smallville grants the rights for management and operation of water and sanitation services to Small Decisions, Ltd (co-owned by the Velazquez, Carreón and other wealthy families). The WB agrees to provide an adittional 92 million loan for investment in a developing program.
By the next year, 400 more families are connected to the water system. With the improved services, increased consumption brings unexpected loss to Smart Decisions.
Since the partnership was announced, increased expectation of employment has boost the population of Smallville: "We're chasing our own American Dream" says Gerardo Tijerina, one of a thousand job-seekers. The company is not able to provide adequate access to all.
Only a year into the contract, Smart Decisions seeks the first price increase. The government argues that there is no commitment to universal access to clean and affordable water unless significant profit is guaranteed. In turn, the company proclaims that local authorities have no intention of making significant contribution to ensure the access.
Fixed prices are granted by the company, but the weak regulation from government allows Smart Decisions to make futher price adjustments.
Price hikes prompt consumers to boycott paying their water bills.
The Regulatory Commission lead by Luis F. Vela and Rocio Corpus bans any form of rate increse for the sake of it's people.
In turn, trade union is crushed by the company. 648 workers are laid off to "reduce costs". Outraged people guided by Zurizadai Rodriguez, Luis F. Garcia, and other labor and human rights leaders start a 4 daystrike to drive out the water company. Smallville's in turmoil as riot police and protesters clash in the streets.
Chairman Alberto Brunswick threatens to cancel the contract if the additional rate increase is rejected by the Water Commisioner Victor Infante.
Unment promises of investment and expansion force the city officials to conclude the time to end the relationship. Control of the waterworks reverts to the government.
Smart Decisions claims that the city has not met it's obligations and bring the dispute to the International Chamber of Commerce, demanding compensation from the Government lead by Torres.
The government will not take on 530 million in loan payment from the World Bank to it's creditors. "The following generations of this town will pay the costs of additional debts." states Andres González, member of the Civil Rights Watch Movement.
What began as a simple 10 year term concession turned out to be the largest lease agreement in the town's history and another privatization fiasco.
Today, most of the poor in this town still remain without piped-water services.
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