Minister rules out Essap privatization

The privatization of Paraguay's state water utility Essap during President Nicanor Duarte's term has been ruled out, a public works and communications ministry release quoted minister José Alberto Alderete as saying. However, Alderete did say the utility's transformation and modernization is "irreversible," and he did not rule out a public-private setup where the state would maintain control. "The transformation and modernization does not involve privatization. That is categorical. What will be applied? The gamut of alternatives will be given to us by an audit that will come from a consultancy company financed by the World Bank," he said. The government aims to get Essap back on a solid financial footing, as current financial obligations - taken on by previous administrations - have curtailed needed investment. According to the minister, the utility must be restructured to assure future sustainability, or else it will collapse, a sentiment echoed by the president of Essap's workers union Hugo González, who told BNamericas recently that the utility is moving towards an operative and financial collapse if nothing is done.