Regulator seizes control of Colombian water utility

Colombia’s utilities regulator Superservicios took over the administration of water utility Empresa de Servicios Públicos de Providencia y Santa Catalina (P&K), which serves Providencia and Santa Catalina islands in the San Andrés archipelago, citing technical and financial deficiencies as well as poor potable water and sewerage coverage.

“P&K’s current service provision scheme isn’t sustainable due to low tariff collection, financial insufficiency, lack of environmental permits for final waste disposal, as well as difficulties obtaining supplies and equipment for water treatment,” Superservicios said in a release.

The regulator said the situation had worsened since the archipelago was hit by Hurricane Iota last November.

Water undersecretary José Luis Acero said that since the hurricane 45bn pesos (US$12mn) were awarded to repair water systems on the islands and the works are expected to be finished by August.

“This is in addition to a structural intervention process with works until July 2023, and which have a 203bn budget,” Acero said in a separate release from the housing ministry.

The takeover is scheduled to last one year, although it can be extended if necessary. 

In the meantime, Medellín services utility EPM has been designated as a “special agent” to provide water and sewerage services in Providencia and Santa Catalina.

“This is a complex challenge both for Superservicios which is handling the intervention, and for us. However, we carried out a full analysis and we deployed our best professionals to the island[s],” EPM’s CEO José Andrés Carrillo said in a statement.