Washington DC Water Video Production: "Portugal's Water Utility Aggregation," World Bank Group
Channel: Dorst MediaWorks
Date: 2019-04-26

In the Ribatejo region of Portugal, municipalities began discussing a possible aggregation within the framework of a Public Policy approved in 1993. However, in 2005, the political majority changed within one of the municipalities. Opposed to making investments in neighboring rural areas, leaders in a wealthy city withdrew from the aggregation process. However, with the goal of achieving better quality services and greater environmental sustainability, Águas do Ribatejo in Portugal moved forward with aggregation. Watch doubts and tensions overcome after two municipalities withdrew permanent political support after implementation of WSS utilities aggregation in Portugal.

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RESOURCES

World Bank Water on YouTube: https://www.youtube.com/channel/UCEVPzPSqhDrT5IJciaTlSaw
https://www.worldbank.org/en/topic/water


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TRANSCRIPT

Jaime Baptista, former President, Portuguese WSS Regulator: The aggregation of the Water and Sanitation Sector in Portugal evolved significantly within the framework of a Public Policy approved in 1993. 

VO: In the Ribatejo region, as in many others, municipalities began discussing a possible aggregation. However, in 2005 a political majority changed in one of the municipalities. Opposed to making investments in neighboring rural areas, leaders in a wealthy city withdrew from the aggregation process—which was initially contentious and caused delays.

VO: Several years later in 2009—with the added incentive of European Union grants, which covered 60% of new investment—Aguas do Ribatejo moved forward with a renewed momentum and a sense of solidarity.

Jaime Baptista, former President, Portuguese WSS Regulator: A main objective was to achieve better quality services and greater environmental sustainability, compliant with EU legislation. 

VO: The purpose of Portugal’s aggregation was to improve performance, professionalize service, and reach EU environmental standards. 

VO: Aggregation was strongly incentivized by EU Cohesion Funds, but it still took determined leadership to move forward uniting seven towns covering 3,000 square kilometers and about 150,000 people.

VO: The scope was comprehensive, covering both water and wastewater through production, distribution, collection, and treatment.
Jaime Baptista, former President, Portuguese WSS Regulator: In the case of Águas do Ribatejo, we had seven municipalities with seven different tariff structures. The idea was to institute a standardized tariff throughout the territory that would be sufficient to recover costs. 

VO: Águas do Ribatejo’s restructuring implied corporatization, which transformed dispersed municipal water departments into autonomous entities, with managerial independence. 

Francisco Oliveira, Board Chair, Águas do Ribatejo: Prior to Aggregation, each municipality had its own cost structure, warehouses, and staff. Today this structure is centralized, which allows for significant cost savings in the system. 

António José Ganhão, former Mayor, Benavente: Solidarity was key. Well-served municipalities with fewer needs were willing to join the system and act in solidarity with those in need of more investment. 

Francisco Oliveira, Board Chair, Águas do Ribatejo: The Águas do Ribatejo model is based on system sustainability. It covers both water and sanitation, including transmission and distribution services for the entire system. 
…….

Francisco Oliveira, Board Chair, Águas do Ribatejo: Águas do Ribatejo has exceeded our wildest expectations. 
….

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