Uruguay - Water Supply Rehabilitation Project
Whitehouse, Edward
While the project achieved both its physical objectives, and outcomes, i.e., improvement of water quality and demands, and, implementation of construction works, the restoration of two transmission mains was not accomplished - justifiably so, for it was not economically viable, and its elimination, provided funds to finance cost overruns. Yet, though generally satisfactory, results were mixed, since clear project definition at appraisal, could have accelerated the Bank's implementation, which was marginally satisfactory. Likewise, although the borrower complied with most covenants, the absence of high level management backing within Obras Sanitarias del Estado (OSE), was conducive to delays, noticeably, on procurement. The key lessons suggest attention to policy and institutional changes, to be accomplished within a realistic and defined reform agenda, agreed prior to loan approval. The long lasting period of this project, made it vulnerable to political changes, thus, failing to adopt previously agreed policies. Adequate sector structures could provide incentives for economic and efficient utility performances, in contrast with OSE's current non-competitive environment, and partisan management-based approach. Additionally, the political dependence of a monopoly provider, may prevent its ability to invest efficiently, for, tariff increases improved cost recovery, but may have obstructed the reform policy OSE required.
Show more [+] Less [-]AGROVOC Keywords
Bibliographic information
This bibliographic record has been provided by World Bank
