Bill 580.

Summary.

The bill establishes a special rate system in the REPUBLIC OF PANAMA for rural and urban community water supply systems managed by boards, associations, community organizations or committees, with or without legal personality. It defines a rural community water supply system, the Rural Water Supply Management Board, the special rate system and the Potable Water and Sanitation Subsector Directorate (Dirección del Subsector de Agua Potable y Alcantarillado Sanitario, DISAPAS). Its objectives include strengthening community management and sustaining access to drinking water.

The National Public Services Authority (Autoridad Nacional de los Servicios Públicos, ASEP), in coordination with the National Water Supply and Sewerage Institute (Instituto de Acueductos y Alcantarillados Nacionales) and the Ministry of Health (Ministerio de Salud), would regulate and oversee rates, audit financial and technical management, and ensure priority access to training. Rates would take account of solidarity, ability to pay, socioeconomic circumstances, and domestic, productive or institutional use. The bill distinguishes social, basic domestic, productive and institutional rates. Individuals and families in extreme poverty would be exempt: the Ministry of Social Development (Ministerio de Desarrollo Social) would certify that status with DISAPAS and notify the relevant board.

The Support Fund for Rural and Community Water Supply Systems (Fondo de Apoyo a los Sistemas de Acueductos Rurales y Comunitarios) is created to cover operating costs, technical assistance, training, modernization and sustainability. It would be financed through budget allocations, development cooperation contributions, donations, and percentages of the profits of water and sanitation companies and of the Decentralization Fund allocated to each Community Board (Junta Comunal). ASEP would administer it with MINSA-DISAPAS. Electricity distributors would cover 50% of the electricity bill costs of registered community water supply systems. Resources could be used for rural infrastructure, training for Water Boards, consumption metering, protection of water sources and temporary subsidies. Rural Water Supply Management Boards would request support through substantiated projects evaluated by ASEP and MINSA-DISAPAS, with priority for communities in extreme poverty or at greater risk of water shortages.

The State would guarantee permanent education and technical assistance programs. The Ministry of Health, ASEP, the National Water Supply and Sewerage Institute, the Ministry of Environment (Ministerio de Ambiente) and the Ministry of Social Development would each have assigned areas of training; the Executive Branch could include other partners by regulation. Misuse of funds, unauthorized tampering, intentional waste and failure to submit financial reports would constitute violations subject to warnings, fines, suspension of benefits or disqualification of board members. The Executive Branch would regulate the penalty procedures and the law within 6 months of its promulgation. The law would take effect the day after its promulgation in the Official Gazette.

Based on its content, the bill concerns the public entities mentioned, community boards, electricity distributors, water and sanitation companies, small agricultural producers, local microentrepreneurs and households using the systems.