Cablegate: Acute Water Shortage in Mexico City's Metropolitan Area

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RR RUEHCD RUEHHO RUEHNG RUEHRS
DE RUEHME #0368/01 0342208
ZNR UUUUU ZZH
R 032204Z FEB 10
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC 0325
INFO ALL US CONSULATES IN MEXICO COLLECTIVE

UNCLAS SECTION 01 OF 02 MEXICO 000368

SIPDIS

E.O. 12958: N/A
TAGS: SENV MX
SUBJECT: Acute Water Shortage in Mexico City's Metropolitan Area

1. (U) Summary: Mexico City's water system has long been plagued
by a combination of sustained population growth, insufficient
infrastructure, a water pricing system that barely covers 30
percent of costs, and infrastructure damage that causes leakage of
up to 30 percent of its supply. Over the past year, Mexico City
has experienced its lowest rainfall in 68 years. The level of its
main external water supply, the Cutzamala system, dropped about 50
percent, which led local and federal authorities to implement water
rationing and to increase water tariffs. Although local
legislators approved an increase of water rates to begin in March
and officials have begun promoting water saving measures and
appliances, severe water shortages will continue at least until the
middle of the next rainy season (July - August 2010). Despite a
doubling of Mexico City's budget for water management in 2010,
resources are insufficient to address the various infrastructure
and other requirements that would ensure sustainable use of water
in the metropolis. End summary.

2. (U) The Cutzamala reservoir system, a complex of seven dams
located in the State of Mexico, supplies 30 percent of potable
water to Mexico City. Last July the system dipped to just 42
percent of capacity, as Mexico experienced its lowest rainfall in
68 years. Meteorologists attribute the drought to El Ni????o, a
climate phenomenon expected to end by March 2010. Concerned about a
potential interruption of water supply in areas of Mexico City????s
Metropolitan Zone, last August 12 Jose Luis Luege, Director General
of the National Water Commission (CONAGUA), Ramon Aguirre, Director
of Mexico City's Water System (SACM) and Oscar Hernandez,
Undersecretary for Water in the State of Mexico, announced an
indefinite 30 percent water cut to save 381 thousand cubic meters
of water daily. With Cutzamala at only 58 percent capacity, last
month city officials announced an extension of the water rationing
until at least the next rainy season, in July-August of 2010.

A Long-Standing Problem

-----------------------

3. (U) The most affected districts include about 35 percent of the
city's population. The city supplements these districts' water
supply through tank trailers, but is unable to supply water in a
timely manner, with some people paying up to USD 190 to fill their
cisterns through private companies. The city's poorest residents
pay disproportionately, because they are located in the affected
districts and must purchase bottled water or water from tank
trailers.

4. (U) Urban growth in Mexico City has far exceeded its
infrastructure. Veronica Martinez, Project Coordinator from the
Water Consultative Council noted that Mexico City water demand has
increased four-fold over the last 50 years, causing an
overexploitation of Mexico City's aquifers and forcing the city to
depend on external water sources (the Cutzamala-Lerma-Santiago
watershed in the State of Mexico). This overexploitation has
caused land subsidence of between two and ten inches annually in
various locations, damaging water pipelines and drainage systems,
which in turn exacerbates water loss through leakages and aquifer
pollution. During a seminar organized by researchers from the
Colegio de Mexico's Center for Research on Demography, Urban, and
Environmental Issues (CEDUA), experts called for strengthening
social participation based on a policy of equity, efficiency and
cost-pricing. Specialists also recommended the use of rain water
capture systems, sewage water treatment, and repair of main water
pipes, through which 30 percent of Mexico City's water is lost to
leakage.

Water Saving Measures: Saving Water is Up to You

--------------------------------------------- ---

5. (U) Officials from CONAGUA, SACM and the State of Mexico
launched a campaign in coordination with the National Association
of Appliance Producers (ANFAD) to implement water-saving showers
and toilets that follow ecological targets designed by CONAGUA:
showers of 3.8 liters per minute or less and toilets of 5 liters
per discharge. Mexico City Water Director Ramon Aguirre also
announced the replacement of one million shower heads with low-flow
models, a 20 percent cutback of water consumption in public
buildings, and the replacement of old pipes to eliminate
large-scale leaks. As part of its public relations campaign, the
Mexico City government published announcements in local newspapers
and distributed brochures in public transportation last fall: "This
is the worst drought in the history of Mexico City...this is not a
warning, this is real; the city may be without water by February
2010; saving water is up to you." Like other water conservation
initiatives, the campaign was cut short due to lack of resources,
but will probably resume next spring as water demand increases and
water shortage continues. During a public event on Mexico City's
water program for 2010, Mexico City Mayor Marcelo Ebrard pointed

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out that his priority was to guarantee water supply and asked
citizens to avoid waste of water as the water shortage persists.

Is Water a Good, or a Human Right?

----------------------------------

6. (SBU) Mayor Ebrard and Ramon Aguirre proposed an increase in
water rates in 2010 to encourage water conservation, to cover
maintenance costs, and to help cover CONAGUA's own 18 percent cost
increase. While some members of the Mexico City Legislative
Assembly (equivalent to a state legislature) advocated the
elimination of existing subsidies, arguing that the system does not
get enough revenue to cover its costs, others were opposed, calling
water a human right and rejecting the addition of another cost
during the current economic crisis. [Note: The real cost of a
cubic meter of water in Mexico City is USD 1.7, but customers are
only charged USD 2 cents, and nearly 45 percent of water revenue
remains uncollected due to lack of payment, clandestine water
intakes, and leaks. End Note] Last December Emboffs met with
Aguirre, who noted that although Mayor Ebrard would welcome
participation of the private sector in water management, Mexico
City Assembly members consider it not a politically prudent
decision, particularly those belonging to the controlling leftist
party in Mexico City, the PRD. Aguirre also commented that the
private sector would likely find it fiscally challenging to
participate in Mexico City's water system, considering that the
public and legal perception of water as a "human right" drives the
prices down to a rate at which companies would find it impossible
to make a profit. Aguirre noted that the city lags behind a decade
in water infrastructure, including water supply, water meters,
drainage and sewage water treatment, and replacement of old
pipelines. Although SACM's budget for 2010 had doubled to a total
of USD 115 million, Aguirre observed that the agency would require
three times that amount to provide an adequate water
infrastructure. Jose Luis Luege, head of CONAGUA, has pointed out
that the main problem of Mexico City's Metropolitan Zone is water
supply and the best way to face it is with coordinated efforts
between federal and local governments, and the private sector.

7. (U) On December 23, Mexico City????s Legislative Commission of
Finance and Public Accounting approved an increase in water tariffs
according to a scheme based on socio-economic level and level of
use. An average household use of 20 to 30 cubic meters per month
will cost in a range of USD 2.70 to USD 11.5, depending on the
location of the neighborhood; poorer neighborhoods will have lower
rates. Although the increase in water rates may cause some
discontent, Mexico City Secretary of Environment Martha Delgado
claimed that a recent poll showed that people would be willing to
pay more for water if the supply were stable.

Comment

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8. (SBU) Years of centralized authority and overgenerous subsidies
have resulted in an underfunded and unsustainable water management
system. Population growth and Mexico City's location at an altitude
of 7,300 feet (the city lies on high plateau where water must be
pumped from wells and external water sources before it reaches the
tap) make the supply of drinking water and sewage removal a major
challenge. SACM and CONAGUA are analyzing possible external
sources of water for the city. It is widely considered a good sign
that local authorities are finally advocating public measures to
save water and admitting that it may be necessary to address the
water shortage with more aggressive measures. An increase in water
rates may decrease water usage, especially if the rates are high
enough to cover the cost of the water to the government, though
this remains a difficult political proposition. Other public
measures could include permanent campaigns on rational use and the
imposition of limits to urban growth. Fernando Menendez, advisor
to Mexico City????s Secretary of Environment, has pointed out that an
additional 19 cubic meters per second will probably be necessary
within the next 15 years to guarantee water supply to the city????s
growing population. He stressed that the only way to ensure such a
water supply is through an integral water management plan that --
besides rational consumption -- includes repair of water leakages,
treatment and re-use of sewage water, and cost benefit projects to
capture water in forested areas that comprise more than fifty
percent of the city????s territory. There are many signs that the
city is nearing its limits on water supply. If municipal
government and citizens are unable to implement tough preventative
measures, escalating drought may force even more painful political
decisions. End comment.
PASCUAL

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