Abstract

GALINDO-ESCAMILLA, Emmanuel. Looking for financial efficiency in small potable water systems. A methodological proposal. Tecnol. cienc. agua [online]. 2019, vol.10, n.3, pp.219-248.  Epub Apr 21, 2021. ISSN 2007-2422.  https://doi.org/10.24850/j-tyca-2019-03-09.

A methodology is proposed to identify costs and fixed income in small potable water systems and an indicator of financial efficiency that allows comparing the number of times fixed income covers all fixed expenses. The information to build the index and the data for its empirical test were obtained directly with field work in five municipalities in the region known as Valle del Mezquital, Hidalgo, Mexico. With the methodology proposed, it was possible to document and analyze the situation of two operators agencies (OA), two municipal agencies (MA) and four user committees (UC). In the systems managed by UC it was identified that they achieve financial efficiency for two reasons, the rates charged for the service are calculated based on the specific needs of each system, and the unpaid work that users provide in the administration, operation and maintenance. For OA and MA, it is highlighted that most of their fixed income goes to the payroll of the employed personnel and the electric power, for which they require a considerable increase in the amount of their rates if they aspire to financial efficiency. It is concluded that the methodology and the proposed indicator are relevant to measure the financial performance of organizations that manage small-scale drinking water systems.

Keywords : Rural drinking water; user committees; operating agencies; municipal agencies.

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