Cancun, Mexico: Water System Privatization Case Solution
This case focusesonthe privatization of sanitation and water services in the city of Cancún, Mexico. Inadequate coverage, insufficient budget, poor outcome quality, and environmental pollution were longstanding issues. With the purpose of solving a few of these issues, Cancún privatized sanitation and water supply in 1994, giving the first all-inclusive private concession of Mexico for water or wastewater system functioning.
Two years after, courtesy of the service coverage and the inability to meet investment commitments,there was a significant legal confrontation with the state government of Quintana Roo and state administration took over the businesses of the concession companies. The case was created to be used in discussions about (1) the issues created by the lack of competitive bid and transparency in concession procedures; (2) the issue of increasing tariffs without observable service developments; (3) the function of regulatory monitoring and enforcement of concession operation goals; and (4) the impacts of eventualities like macroeconomic uncertainty, as exemplified by the devaluation the the Mexican peso, on commitmentson concession. HKS Instance Number 1593.0
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
PUBLICATION DATE: August 01, 2000
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