1. The regulation of the water and sanitation sector as a key issue for the improvement of efficiency in the Mexican water sector World Water Forum V Ricardo SANDOVAL ANEAS - SIMAPAG

2. Background Mexico  187398 “localidades”  3190 urban (>2500 h) = 76.5% pop. Legal framework  Conagua: resource regulation  Health Ministry: sanitary regulation  Municipalities/ Local Congress: economic regulation??

3. Legal and regulatory framework

4. Institutional evolution

5. Present status Technical, financial and organizational weaknesses Institutional inconsistency  Means and ends  Responsibility and engagements  Scope of the operator's “contract” with citizens and users  Incentives, checks and balances Exceptions on chance and courage...

6. Proposals (1) Clear responsibility boundaries Clear “contracts”: matching means, ends, incentives and controls A real regulatory framework:  Measuring, indicators, benchmarks  Regulatory entity or mechanism

7. Proposals (2) An enabling institutional and financial environment  A coherent water and sanitation financial system  A national organization focused on water and sanitation's needs  A consistent supporting structure (capacity building)  An effective resource regulation (water rights administration and pollution control)

8. Initiatives Project of a National Water and Sanitation legal framework Specialized chapters within ANEAS Training and certification Working group for state regulation  Regulatory bodies and benchmarking  ANEAS' commitment within ADERASA

9. Initial results Successful cases of state capacity building Promising cases of state regulation  Chihuahua, Tamaulipas  Guanajuato  Mexico Stronger and more stable organizations = growing opportunities...