Uruguay plans to take back water services in Maldonado

Uruguay's housing ministry presented a bill to congress to allow state-owned utility OSE to regain control of the water services of the entire Maldonado department once the concession held by Aguas de la Costa, which serves municipalities located east of the Maldonado river, expires in February 28.

Currently the provision of water services in the department is divided between OSE, Aguas de la Costa and an entity called Unidad de Gestión Desconcentrada (UDG, or decentralized management unit), an office created by OSE in 2005 to take over the area of the department that was served by concessionaire Uragua.

According to the bill, UDG "...which was appropriate at the time, began to show deficiencies as years passed, which makes it necessary to reconsider its role."

Some of these "deficiencies" cited by the ministry include contractual differences between OSE and UDG employees, the need for a separate budget for the latter, and cost overlaps.

"There is no strong reason that makes the continuation of the management system necessary," according to the bill.