User:Maria1

Topic: Investment opportunities for foreign companies in water provision, transportation, and purification

The purpose of this research is to provide information to investors on opportunities and challenges of providing water purification in developing countries. In particular, this research collects data from some urban and rural cities, primarily in Latin America, that are improving water purification systems and looks at how these urban cities have opened the door to entrepreneurs to improve their water systems. This has created competition among the public and the private sectors. This report also presents examples of existing opportunities and challenges for bottled water and filtration in developing countries. In addition, it presents examples of international governmental and nongovernmental organizations investing and conducting water projects in poor areas. Furthermore, this paper aims to serve as a guide to entrepreneurs and investors, providing important details about seeking foreign financial options for competing in the water market.

Water and the Social Entrepreneur: An Overview During the 1990s, the water supply sector grew rapidly based on the idea that the private sector could provide better services. In contrast to that belief, the private organizations and investors competing in the water market have faced limitations such as financial stability policies that have restructured corporate activities. Private sector investments in water infrastructure have declined worldwide from a peak in 1997, and have remained a minor contributor compared to the public sector economy. Multinational companies are doubtful of investing in impoverished countries. However, low-income markets represent a phenomenal opening for the world’s wealthiest companies to hunt for their fortunes and bring prosperity to the poor. The countries known as undeveloped countries indeed offer a potential opportunity for business, yet the people who have less money consume in a different way. Billions of poor people are consuming water in small amounts; therefore, the quantity generates profits. The poor provide a new growth opportunity for the private sector and for multinational companies, as well as a forum for innovation. Traditional solutions used in developed countries are inapplicable when the target involves people with less income. Competing in this market implies using top-of-the-line technology and omitting the introduction of cheap and low-quality products. The challenge is to envisage a niche to offer a good option. To achieve this challenging goal, foreign and local entrepreneurs must avoid assumptions and be willing to expand their ability to explore an astounding market opportunity in the midst of neediness and lack of wealth. Markets as diverse as the Chinese, Indians, Brazilians, Mexican, Russian, Indonesian, Turks, South Africans, and Thais—all together they total about 3 billion people, representing 70 percent of the developing world population. Contrary to popular assumptions, the poor can be a very profitable market, especially if multinational companies change their business models: “The dominant assumption is that the poor have no purchasing power and therefore do not represent a viable market.” However, new entrepreneurs need to know that large populations of low-income consumers are unrecognized even though they can constitute a new market. Entrepreneurs can improve existing strategies and understand the new habits of consumerism to gain good profits. Table 1. The assumption and implication of low-income markets Assumption	Implication The poor are not our target customers; they cannot afford our products or services	Our cost structure is a given; with our cost structure, we cannot serve the Bottom of the Pyramid market. The poor do not have use for products sold in developed countries. We are committed to a form over functionality. The poor might need sanitation, but cannot afford detergents in formats we offer. Therefore, there is no market in the Bottom of the Pyramid. Only developed countries appreciate and pay for technological innovations. The Bottom of the Pyramid does not need advanced technology solutions; they will not pay for them. Therefore, the Bottom of the Pyramid cannot be a source of innovations. The Bottom of the Pyramid market is not critical for long-term growth and vitality of multinational corporations. Bottom of the Pyramid markets are at best an attractive distraction. Intellectual excitement is in developed markets; it is very hard to recruit managers for Bottom of the Pyramid markets. We cannot assign out best people to work on market development in Bottom of the Pyramid markets. Source: C.K. Phrahalad and Stuart Hart, The Fortune at the Bottom of the Pyramid, Strategy+Business, Issue 26, 2002

In addition, products and services brands’ awareness among the poor is widespread. “Brand consciousness should not be a surprise. An aspiration to a new and different quality of life is the dream of everyone, including those at the bottom of the pyramid.” Therefore, these consumers are worthwhile purchasers. For example selling bottled water can represent a big opportunity. The potential investors need to replace the idea of the poor as sufferers with the idea of the poor as a great target, who would consume products and services; this will open up a new range of opportunities. Water niche in developing countries: The bottled water industry In the United States, the U.S. Food and Drug Administration regulates bottled water due to its impact on the health of citizens. Due to the wide spread consumption of this product, the industry is growing and therefore, generating an opportunity. According to the U.S. Geological Survey, bottled water accounts for only .0003 percent of the 79.4 billion gallons of water withdrawn from ground sources each day. Entrepreneurs therefore can capitalize by targeting this segment of the market. However, entrepreneurs need to educate themselves and research the bottled water market. Entrepreneurs can find information by visiting the International Bottled Water Association, which is a trade association representing the bottled water industry. Founded in 1958, IBWA’s membership includes U.S. and international bottlers, distributors and suppliers. “The source of the bottled water must be from a protected natural source, or in the case of some processed waters, from an approved municipal supply.” To guarantee the transparency of this process, the NSF International,  a nonprofit organization performs unannounced inspection to the IBWA member bottler plant. The inspections are every year since 1985. The bottled of water market is a new paradigm. Entrepreneurs can find information about the bottled water industry through the Mid-America Bottled Water Association (MABWA). This association encourages new entrepreneurs to participate in the bottled water market. Another important key for entrepreneurs and investors is understanding who is competing in the market. Some companies that provide water purification services and equipment in the United States are Aquathin Corp., CUNO Filter Systems, Millipore Corporation, Pall Corporation, and Water & Power Technologies, Inc. In the world, the bottled water market is prosperous. According to the World Wildlife Fund, it is the fastest-growing beverage sector in the world. Table 2. Top Bottled Water Consuming Countries and Compound Annual Growth Rates, 1999-2004. Millions of Litres	Compound Annual Growth Rates 2004 Rank	Countries	1999	2004	1999/04 1	United States	            17,336.8	        25,766.1	8.2% 2	Mexico	            11,571.6	        17,671.4	8.8% 3	China	              4,606.8	        11,886.6	20.9% 4	Brazil	              5,654.6	        11,590.9	15.4% 5	Italy	              8,918.8	        10,306.2	3.6% 6	Germany	              8,307.5	        10,306.2	4.4% 7	France	              6,942.8	          8,544.8	4.2% 8	Indonesia	              3,433.7	          7,356.9	16.5% 9	Spain	              4,074.6	          5,502.1	6.2% 10	India	              1,680.7	          5,122.8	25.0% Top 10 Subtotal	             72,527.7	      114,401.2	9.5% All other countries	             25,867.6	        39,879.3	9.0% TOTAL	             98,395.3	      154,280.5	9.4% Source: Beverage Marketing Corporation, 2004. Normally the bottled of water have two years life. The water bottled can be from any source, the two famous brands “Dasani owned by Coca-Cola is filtered in Canada by municipal tap water, the brand Aquafina owned by Pepsi is also sourced from municipalities.” The bottled of water have different sources as well as treatments.

Water Purification Treatments: A Market Option Beyond the service offered by water purification plants in developing countries, entrepreneurs always find a different investment opportunity for the water purification market by improving its techniques. There are many water quality treatments such as: 1.	Solar Distillation: This is the use of solar energy to purified water. One existing project is located in the Texas/Mexico border, supplying water to the people living in those areas. 2.	SODIS: “It is a water treatment method which uses solar energy to improve the microbiological water quality. It is used at household level to treat small quantities of drinking water”. 3.	Waste Stabilization Ponds: Usually it is the first option in developing countries for wastewater treatment. 4.	Constructing Mechanically Aerated Lagoons: This is a good investment option for small communities wastewater treatment. Using a civil engineering resources manual, that contains methods and materials used in construction in East Africa, the estimated cost can be easily calculated if the construction employs materials with the same benefits as the one used in developed countries. 5.	Iron and Manganese Removal:. 6.	Upscale Technology: Nano-Filtration Another area of the water market where science and technology merge is nanotechnology. On the scale of molecules, nanotechnology makes pores tiny enough to filter out the smallest organism. It reduces the cost of desalinization of water. In April 2005, Modzelewski, a manager in the area of nanotechnology, stated, “The current size of the global market is $287 billion, and expected to be $413 billion by 2010”. In addition, nanotechnology can help reduce energy costs used in water treatment; nanotechnology produces very efficient solar cells. Yet, it is expensive and the sources for entrepreneurs willing to invest in providing clean water are unrecognized. In developing countries, entrepreneurs can implement this technology if they find funding from international investment firms that are willing to provide financing to emerging markets. Without a doubt, entrepreneurs can explore investing in clean water technology. The sources and the amounts of water are intact, “there is exactly the same amount of water on the planet as there was a million years ago. The problems are those of distribution, technology, contamination and consumption.” Even though water, as vital liquid, may not be a product of trade, it permanently comes with a fee. Hence, this represents a niche in the water market for entrepreneur and investors. In fact, investment companies such as Expansion Capital Partner, Global Environment Fund, RockPort Capital Partners, Sail Venture Partners, and Kleiner Perkins Caufield & Byers are looking for entrepreneurs who are willing to improve companies’ productivity by using water resources efficiently. Each of these companies offer business plans and provide funding to entrepreneurs who meet their criteria. Normally, these companies require: •	Detailed Company description •	Clear vision •	Market information •	Product information •	Technology information •	Financial information, including last twelve months revenue However, entrepreneurs and investors need to be aware of the market regulations where they are investing. In developing countries, the implementations of political and technical reforms have opened the door to foreign investors; this aperture has created competition between the public and the private sectors. According to the World Bank utility database, there are 53 cases in which private operates manage urban water/or sewerage systems in 27 developing countries.

Projects in the urban cities Some foreign investors are working in urban cities such as Mexico City and Lima. These two cities have a very high water management’s cost. The water in these cities is polluted, and this fact presents an opportunity for investors. In contrast, the urban cities of Abidjan, Buenos Aires, and Santiago have sustainable water systems, which present less opportunity for entrepreneurs. In the past 10 years, Ecuador’s water and sanitation service have improved considerably but coverage still ranks among the lowest in South America. “At present, 82% of the urban population and 39% of rural inhabitants have access to water supply, while 73% of the urban population and 29% of all inhabitants in rural areas have access to sanitation services.” In the province of Manabí along the coast of Ecuador, there are six water plants operating such as Poza Honda, La Estancilla, El Ceibal, Chone, Jipijapa, and Cuatro Esquinas with the capacities to produce potable water of 15,000, 20,000, 40,000, 60,000 M3, yet they are unable to satisfy the water needs of the communities. The distributional channel is feeble and inefficient; therefore, the use of tanqueros becomes a solution and an entrepreneurial opportunity. Purified water distribution: the Tanqueros The tanqueros are tankers equipped with a hose, and pipes but remain an expensive way of distribution of water. They provide water to peri-urban neighborhood, but their water price is always higher than the ones established by municipalities. In the urban city of Portoviejo, which is the capital of Manabí, even-though the municipality is taking care of its water plants, they are inefficient and tanqueros are the water providers to some peri-urban schools and houses. In addition, tanqueros fill commune water’s reservoir for later water distribution. The Empresa de Agua Potable y Alcantarillado de Portoviejo, EMAPAP, sell water to tanqueros for 35 cents the M3 (five tankers). Owners of tanqueros said that they sell the tanker for 15.60 dollars, which constitutes a market opportunity in this city of South America. Municipalities’ lack of resources leaves a gap in the market that affects the implementation of big water channels. However, the municipality of Portoviejo is working to find resources to complete a water project, to increase the quality and the scope of the service through an efficient distribution. The name of the project is Plan Maestro de Agua Potable de Portoviejo.

Seeking outside funding The Asian Development Bank,, conducts projects oriented to eradicating poverty in Asia and the Pacific. It prepares operational strategies according to each country; it develops what the Bank calls, Country Partnership Strategy (CPS), which includes a business plan with technical assistance for loans and projects. These are assigned in order of priority matters. For example the objective of the Water Financing Program (WFP) sponsored by ADB is to double the bank’s water investment in the Asian region. Under the WFP, ADB proposes to increase its water investments to over $2 billion annually. The program will focus initially in India, Indonesia, Pakistan, Philippines, and Vietnam. The program will bring water in the next five years; the main areas of investment are Rural Water, Urban Water, and Basin Water. The program is accessible through its web site:. If you want to discuss how the Program can work in your country, whether you are working on investment in water infrastructure or services contact the ADB mission in your country. Internationally, the World Bank is helping governments to create the proper conditions for investment. For example, a “$300 million loan to Mexico is helping small businesses participate in the formal market and improve competitiveness.”  The Bank is helping foreign governments attend their development concerns through loans. The objectives of these loans are moderate poverty while fortify and support macroeconomic stability. Table 3. Countries Eligible for World Bank Borrowing Antigua and Barbuda	Ecuador	Panama Argentina	El Salvador	Paraguay Belize	Grenada	Peru Bolivia	Guatemala	St. Kitts and Nevis Brazil	Guyana	St. Lucia Chile	Haiti	St. Vincent and the Grenadines Colombia	Honduras	Suriname Costa Rica	Jamaica	Trinidad and Tobago Dominica	Mexico	Uruguay Dominican Republic	Nicaragua	Venezuela, República Bolivariana de Source: The World Bank Annual Report 2006. 47. The need to create a proper condition for investments is expanding in other countries. Currently, investors and nonprofit organizations can get access to funding in countries such as Africa, where the AFDB finances and facilitates the money. One of the main goals of the bank is developing water and sanitation in the African continent. In addition, there are foreign governmental international agencies such as the Australian Agency for International Development; AusAID has financed water and sanitation projects in developing sectors. In Vietnam, where only about “40 percent of Vietnamese rural households have access to clean water,” the Cuu Long Delta Rural Water Supply and Sanitation Project is a good example of this cooperation. The cost of this project is $26 million and it will serve rural communities. The project also involves Vietnamese’s government to enhance access to water and sanitation in the Delta. In France, the Agence Française de Développement, AFD is another international organism in charge of supporting projects in developing countries. The AFD has actively worked on sanitation projects in Burkina Faso, Benin, Kenya, and Mozambique. A different institution that works in the same matters overseas is the Japan Institute for Overseas Investment. It helps financing water projects and programs. International institutions are obtaining economic benefits offering financial support to developing countries. In financial terms, “the return on investment in water and sanitation cannot be underestimated: economic benefits range from $3 to $34 for each dollar invested, depending on the nature of the intervention and the country.” In addition, citizens from urban or rural areas have an opportunity to reach financial access through international institutions, foundations, civic and religious institutions. Thus, “currently 83% of the world has access to safe, affordable and sustainable drinking water while 60% has access to improved sanitation”. These percentages show that different areas in the world had accessed to progress due to foreign and local cooperation.

Other funding and resources There are several ways of funding your projects; whether you are a student or a teacher, you can fund a water project through scholarships or grants. For example in the area of water purification, the Udall scholarship is given support by the Morris K. Udall Foundation, an organization that helps create and implement innovative water purification methods. The American Water Work Association offers several options. One of them is the “Holly Cornell Scholarship is sponsored by CH2M Hill, it is available to outstanding female and /minority students pursuing a master’s degree in the field of water supply and treatment. Another scholarship is the Camp Dresser and McKee, Inc sponsors the “Thomas R. Camp Scholarship”, this scholarship provides support to outstanding students doing research in the drinking water field.

Examples: Big water purification projects The amount of money invested and the number of consumers served with water are some of the facts that help to characterize the size of a water project. One of the biggest water purification projects in the world is the “NEWater Project” The project is taking place is Singapore and is providing clean water to 4’3 million Singapore’s citizens. It has three-step purification process—“micro-filtration, reverse osmosis and ultraviolet disinfection—used to produce NEWater results in water that is better than World Health Organization drinking water standards.”  The process of water purification is comparable to the one used by the Orange County Groundwater Replenishment System. According to water experts, the process is so pure that it will reduce minerals in water that cause corrosion. Developing and developed countries are gradually working more on the provision of water and sanitation. The European Commission is conducting a program targeting water resources management that benefits Latin America, Africa and Eastern Europe. The title of the project is EU Water Framework Directive. One way of implementing the program’s goal is through coordination of international actions and investment programs. Civil Society, Stakeholders, and NGO’s are the partners participating in this topic. By 2015, the program aims to improve water sanitation in regions of these countries where pure water is inaccessible. Innovative project: Plants and Seeds In Brazil, the World Bank affiliated with Bernardo Hakvoort Agroflorestal Institution IAF, and the Municipality of Turvo will conduct a water treatment and sanitation project using plants. The funding for this project is $199,027, and one of the main purposes is to improve the quality of life in 36 towns in the Paraná. The project will introduce a methodology for Root Zone Sewage Treatment Stations (STS), which is simple to maintain at low cost, integrates well with the environment, and meets the requisites of the Environmental Legislation: The STS is based on physical-biological treatments, involving aerobic and anaerobic processes that do not produce odor or sludge and offer a high treatment potential. In partnership with the municipal government, IAF will implement the project in 90 rural properties reaching 675 people and 1 urban collective serving 45 families over two years. About 1,025 people will be trained in STS installation and usage. IAF plans to expand throughout the conservation territory over a 12-year period through a partnership involving 7 environmental institutions.

In the United States, there are projects focuses on the process of purifying wastewater. In cities such California, the Groundwater Replenishment System, GWR is a new designed water purification project. It is unique because of its advanced water purification method, which accelerates the natural water-recycling process “by purifying highly treated sewer water to drinking water standards,” this system is programmed to generate water in 2007. The Water Factory 21, a water purification project built and operated by Orange County Water District, OCWD was “the first project in California to purified sewed water to purified water standards.”  It will use GWR for water purification. In the United States, “the water cycle—the continuous movement of water from ocean to air and land then back to the ocean—is as old as the earth itself. The basic underlying principle is simple: All water is recycled. There is no new water.” Hence, this principle can be adapted in other countries. In the city of Chicago, the Lake Michigan is the source of water; it has 1,180 cubic miles of water, and is the second largest great lake by volume. The city through its Department of Water Management educates the population with important advices about saving water due to the growing demand for this vital liquid. Therefore, we as community need to participate actively in water management. Below few things, that everybody can do to improve water management: •	Observe lawn-watering hours of early morning and early evening. •	Use only the water you need. •	Do full loads of laundry and dishes. •	Check toilets and other plumbing for leaks and drips. •	Consider using a rain barrel to collect water for gardens. •	Use water-efficient appliances and fixtures. •	Keep chemicals and motor oils out of our sewers. •	Look for opportunities to create green space, or replace concrete with permeable paving material. The city of Chicago utilizes Lake Michigan as its source water via two water treatment plants. “The Jardine Water Purification Plant serves the northern areas of the City and suburbs, while the South Water Purification Plant serves the southern areas of the city and suburbs”

Funding from NGO’s The CRC-URI nexus The Fundación EcoCostas (www.ecocostas.org), which is a non-governmental organization based in Ecuador is associated with the Coastal Resources Center of the University of Rhode Island (CRC-URI). These two entities work together with the World Bank and New England Waste Systems (NEWS) as partners to conduct an Ecological Sanitation Solution for Chamanga, Ecuador. The project has a funding of $200,000 USD. Nepal In Nepal, the World Bank associated with the International Development Enterprises-Nepal [http:www.ideorg.org], which is an international non-profit organization registered in Berne, Switzerland, under the Swiss Foundation Law, employs market principles to strike at the roots of rural poverty in the world’s least developed countries. This entity sees the rural poor as customers, producers and entrepreneurs. Actually, this entity is working in Bangladesh, Cambodia, Ethiopia, Myanmar, Nepal, Vietnam, Zambia, and Zimbabwe. The World Bank, the IDE, and the Nepal Water for Health, NEWAH, , a national non-profit organization specialized in potable water conducted a water treatment project based in Low Cost Household Water Treatment Technology. In Nepal, approximately 27,000 children below age of five die every year due to water related diseases and poor sanitation practices; therefore, the project focused on providing clean drinking water to rural Nepal by refining and marketing a low cost, low-tech household water filter. This project will use the SAFA filter. It is effective at removing bacteria, and it removes fecal coli-forms, it has a high flow rate of 24 liters of water/day, and retails at US $11. The Nepali artisans would produce the filter using local raw materials. In its web page the Nepal Water for Health illustrates the project cycle in four steps: 1.	Project Preparation Phase 2.	Social Preparation Phase, of 6 months each, 3.	Post Commissioning of 2 years 4.	Implementation Phase 6 months

Rural Areas Around the world, there are many water projects in preliminary, intermediate or advanced stages. However, all water projects have different endings. There are successful and failed projects. Small successful project: The case of Daular Proyecto Daular is good example of one small successful project. This project on the coast of Ecuador gives potable water to a commune in the region of Peninsula de Santa Elena near Guayaquil. Daular has about 70 low-income families, and their activities are agriculture, coal mining, and day labor. Potable water in small communes along the coast of Ecuador is still a luxury because of its inaccessibility service. A group of students and professors of the Colegio Alemán Humboldt of Guayaquil decided to take action and even though they were far less than expert and empirical in the water subject, they researched and started a project. They established a connection with the teacher of the local school, and she was the link between the local habitants and the Colegio Alemán teachers. It is necessary to point out that an agricultural irrigation pipe from the dam passes 200 meters behind the local school, which makes it possible to execute the project. The methodology these people applied is: Research the local market about water plant equipment and price. The first step was to contact the chief of Agua Pro in Guayaquil for advice; the personnel here facilitate the information about average cost of equipment and materials. The estimated cost was about $6,000 in US dollars. But the total cost of the plant rose $9,000 US dollars, without considering the donations. Research Funds This was the big question; they contacted the GTZ-Quito, which is the German entity of technical help abroad,. This organization offered $6,000 US dollars as a donation. Build up the commune’s confidence and trust. The project started to roll with the help of students of the Colegio Alemán, 24 students who started little subprojects to help the local school, in addition to the installation of three industrial sewing machines, where women of the communes worked sewing the uniforms of the Colegio Alemán. This opens the bridge of trust between the women but not between the men, who were a little skeptical of the water project. Ask for the official permit to do the project. Hard to obtain due to bureaucracy procedures, it was almost impossible to have it in a short period, yet due to personal contacts, Colegio Alemán professors obtained the permit. Do physical and chemical analysis of the irrigation gutter’s water. The GTZ recommended an engineer from its entity to help with the analysis of water and to determine if the commune can use the water from the irrigation gutter. The analysis was favorable and the project was viable. Work toward mutual agreement with the citizens of the commune After three months of working with the commune, the Rotary Club, “Cerro Azúl of Guayaquil,, joined the project because they were doing other activities in nearby areas. The Club brought the idea of forming an agreement in which the Colegio Alemán and the Rotary Club would work on the water project; the commune has to provide the manpower. Look for a place for the plant After looking for a high place so the water can descend easily, many small inconveniences showed up, such as being inaccessible, too far away, or too vulnerable, so finally the best place found was on the local school grounds. Provide blueprints of the platform and the protecting structure for the plant The entity responsible for the irrigation of the area, Comisión de Estudios para la Cuenca del Rio Guayas CEDGE,, supports the initiative and builds the connection between the water plant and the main pipes, at zero cost. Repair of the damage and distribution of maintenance plan The rainy weather along the coast of Ecuador especially in wintertime can damage the construction, so it was necessary to consider a small economic assignation in case of destruction. Formation of the Water Committee The water committee or “junta” has five members and includes women as part of their members. Education of the local citizens It was necessary to make the populations aware of how important it is to buy the water from the new water plant because 1) It was safe 2) It is cheaper than buying water from the tanqueros, which are tankers that distribute water to populations who are lacking or have no access to water. Buying from tanqueros was more expensive than buying directly from the water plant. In 2002, the water plan began its operations and it continuous to work perfectly, providing a good quality of water to the community. From the beginning to the end of the project, many got involved. Because it was important to contact other entities for technical opinions, the Colegio Alemán professors interviewed many engineers from Ecuador and Germany so that they could get them involved to cooperate for the benefit of the commune. The work and the trust between groups were important keys for this project to succeed.

Straggle over water: The case of Magdalena In projects that have failed the reasons are multiple. The water needs of urban and rural areas are different and the resources vary according to the municipalities. In addition, there are different laws in different countries. In the Philippines, The Magdalena Water Project failed because the water was undrinkable and it failed to pass the quality standards for potability. However, the World Bank and the municipality of this city in Philippines, through its mayor had different opinions about the failure of the project. “The World Bank is trumpeting the supposed "success" of the Magdalena water project.” Yet, for the Magdalena citizens, the water is more expensive now than before. The citizens of the rural area need to pay the water they are unable to drink, neither use for cooking nor other purposes.

HOW TO DEVELOP A WATER PURIFICATION PROJECT The organization is mainly important to start a water project. First, in order to design a water project is necessary to organize the community and to form a committee. “The committee should be set up legally so that it can sign contracts for village participation, collect funds, arrange for local materials, and labor for special projects. If you are a teacher or a student, find local partners (www.lifewater.org/wfw/wfwindex.htm). Secondly, be aware that in most water-projects, there are three common phases: planning, implementation, and sustainability. Planning: Work with community members for half a year or a year to get to know their needs is essential to establish and understand the concerns of the community. In order to do this, communicate with community leaders and organizations. Clarify rules and local procedures such as the one established by the mayor and other governmental organizations. In this phase, research is important because sometimes “the most obvious water sources may not be the best in terms of quantity available, social acceptance, cost, community health and project sustainability”. Indeed, the optimal source of water is different from case to case. There are groundwater sources, which are generally preferable to surface water sources. Implementation: The implementation plan highlights the involvement of the community; employ its workforce as well as the use of local materials to reduce costs. In addition, education and training to change habits and wrong sanitary behaviors are fundamental for the success of the project. If possible, a water project should connect with a health project, if there is one going on at that time. Sustainability: In this phase, operations, maintance, community management and monitoring are very important. The last one, monitoring of system operations and community sanitation requires a plan from the community; “The water supply and sanitation committee should be responsible for carrying out the monitoring plan.”

Strategies to negotiate a water project Initial negotiations are the key that opens door of opportunities. How to negotiate and how to tell the needs of the community the way it sounds relevant? First, you need to present a plan that can be trustful. While doing your plan do brainstorming to figure out how to transmit your idea. Try to figure out how to give the other person what they want, fulfils the other person expectations, because the more you get them what they want, the more you would get what you want. Second, remember that comments that made by a bankers or finance representative sometimes are just part of their institution’s policy so avoid take comments personally. Third, educate yourself, whether you are representing a big or small project. While researching, compare how other projects have found the funding, and what other banks are offering. In addition, consider what other mayors are doing, and attend conference, meetings, and workshops. Before turning in a proposal collect as much information as you can and always listen to past and present experience of other leaders in your community. Remember to verified all the information that you get, and then select what is convenient for you. Once you have a plan ask questions, and be aware that the answer must be the opposite of what you are expecting, conserve the calm and take your time before answering a question. Ask always-relevant questions; in a paper write and ask the questions related to your topic, the main one and then alternative ones. Therefore, you have a little set of questions that would fulfill your knowledge. A popular psychology, known by its television show as Dr.Phil, indicates how to close a negotiation. He calls it “closing the deal”. See below: •Before the strategic interaction occurs, establish a specific and measurable goal that  gives direction to your activities. •Being flexible on style enables you to grudgingly yield on some items to gain substance concessions in return. •Open all discussions with commonality and a demeanor that communicates consideration and warmth. •Save the most knotty or zero-sum issue for last. •Since human beings are complex and multifaceted, probe below the surface so you can broaden the discussion. This enables you to make trade-offs and exchanges to facilitate agreement. •Concessions are not appreciated unless effort is expended to obtain them. •If you say or do something inappropriate, immediately offer an unqualified and unconditional apology. •Keep in mind, there are four major criteria that will finally induce your counterpart to say yes:       1) Sufficient investment.                     2) Having a basis for comparison. 3) A concession rate that signals the approach of your bottom line.                    4) The feeling that they were involved in producing this outcome. Source: Dr. Phill. (www.drphil.com/articles/article/129) “Investors think about risk. If they believe the downside risk of investing in your business plan is small, then you stand a good chance of getting a large monetary investment and keeping a large portion of your equity ownership in the company.”  How well your business plan addresses your investors' downside risks and how much "skin" you put in the game will determine the comfort level of your investors.

Examples of Projects in ASIA Developed countries such as Japan, through the Japan International Cooperative Agency (JICA) , Japan Bank for International Cooperation (JBIC) ,  and Japan-Ministry of Foreign Affairs, has negotiated with local governments and has started projects in the area of safe drinking water and sanitation, which focus in restructure and modernize water treatment in Latin America Regions. The title of the project is Water supply and /or sewerage treatment project mainly in regional cities of Latin American Region. In particular, this water projects target populations that have difficulties accessing quality water to maintain good health conditions in Guatemala, Brazil, Peru, and Mexico. Another example of Japanese good negotiations is the Japanese trading house Marubeni Corporation, which is willing to work with the government of China to assist “the southern Chinese province of Guangdong to develop a secondary water treatment plant as demand for water for industrial use could exceed supply.” At present, there is plentiful water in the area but it may not be in the next decade when consumerism due to development will outpace water supply. The World Resource Institute Institutions such as the World Resource Institute, has as a goal to aware society to live in ways that protect the earth for future generation. Its mission is to communicate that citizens can achieve the best from its resources, conduction projects and improving the quality of life. The way WRI measures its success is by the changes governments, institutions, businesses, and individuals are making to protect natural resources while advancing economic opportunity. One of its main work fields focuses on expand economic opportunities for enterprises in the water market. In Latin America, WRI main program regards poverty reduction and the improvement of the economic market in this sector. “Seventy percent of Latin Americans live on less than $3 a day. That’s 360 million people with a combined purchasing power of $510 billion” (WRI 2006, 1). The WRI focuses on catalyzing investments by companies and development agencies. The Inter-American Development Bank, [IDB http://www.iadb.org/] is once of the largest development aid agencies working in Latin America, when it launched a five-year, multi-billion dollar poverty reduction initiative. “Building Opportunity for the Majority” focuses on economic empowerment for the poor through the support of private-public opportunities. The IDB is the first development bank to make a commitment of this size, giving this innovative market approach enormous credibility and visibility. In Europe, the WRI has a strategy to reduce rural poverty. This institution consolidated with the World Bank, the U.N. Environment Programme, and the U.N. Development Programme has developed a new model, an ecosystems-based approach, which describes how valuable management of environmental and social resources can result in an improved standard of living. The idea has touched the spheres of the European Union, the Netherlands, Norway, Sweden, the U.K., USAID, and the World Conservation Union, who are willing to make substantial commitments and including the concept into their rural poverty reduction programs.

Water’s Market Risks As in any other market, the water market has risks. Entrepreneurs, private and public companies are subject to vulnerability, local political rules, and geographical inconveniences. Even though the goal is provide a service, the aperture of the economic scenario of water operation is uncertain and unsettled. In fact, this uncertainty is what market dynamics are supposed to create; to re-distribute economic resources from less profitable projects to ones that are more profitable. Companies need to focus on long-term plans to help distribute and maintain projects such as in urban cities. “In absence of strong incentives to enhance productivity or efficiency, and given the high cost and long-time horizon of fixed capital investment in water infrastructure, private companies may fail to keep water systems running efficiently”. In frameworks in which water source and supply are too grave to examine due to the high risk of failure, the state will have to stay as crucial competitor in the organization or establishment of water projects. In resent years, private financing for water supply and sanitation in developing countries has decreased revealing in part the lack of eagerness to deal with the political risks associated with these projects. Investor’s losses in various areas—caused by contract breaches associated to price adjustments, exchange rate variations, money devaluations, and complains —exemplify the reality of these risks. However, the need for basic water services is imperative. It is undeniable the decentralization adds risks related to the service, the lack of effective regulations from the national level to provincial and municipal authorities are part of the market’s risk surrounding water and sanitation projects. “Sub-sovereign regulatory and contractual risks can be greater than sovereign risks”, because local authorities may have a reduced amount of practice in dealing with the private sector and may struggle understanding investor’s needs. Through portal web sites, investors can research the water markets of Algeria, Hindu, Lebanon, Tunes, Turkey and Senegal. In the future, websites such as Waternuc would provide data about water market opportunities about Brazil, Mexico and Morocco. In addition, this web site could provide information about “partners,” buy and sell new machinery, and locate offers through out the world. In addition, entities such as FDI.net, FDI Promotion Center , and the upcoming PRI-Center  provides information about investments and its support, political risk management, target and audience, privatization, infrastructure, public and private partnership opportunities. In Latin America, the IFC has as a mission to foment the economic development through the private sector. This entity supports innovative solutions and encourages investment to ameliorate the quality of life in developing countries. It helps people to start their own business by identifying new roles in the private sector, providing consulting and advising. WHERE DO YOU GO IF YOU HAVE A PROBLEM? The Latino-American Water Tribunal (LAWT) is one option, you can submit legal actions or to complain to this tribunal. It will receive cases on damages and threats of water source in Latino-America. The tribunal will listen to all communal groups and social movements. It is an ethical tribunal, and although its resolutions are not legally binding, they become a technical and scientific starting point for the resolution of conflicts related to the water in the region. The LAWT is an international and autonomous entity, which evaluates cases on environmental damages inflicted upon the water resources in detriment to Latin-American populations. In addition, another resource is the Argentine Association of Sanitation Engineering and Environmental Sciences (AIDIS Argentina). This is a non-profit, non-governmental organization that offers counseling services on water sanitation and water information in Argentina [aidis@aidisar.org.ar]

Other resources: International Water Management Institute: It has publications and research on sustainable use of water. It offers an interesting World Atlas of Water and Weather, available for download. Water Environment Federation –The Federation of Water Development is an organization dedicated to the preservation and improvement of water resources in the world. E-mail: webfeedback@wef.org IRC: News and documents service associated with water sanitation and quality. The international activist magazine “Food & Water Watch” provides news from water struggles from around the world, community defending their right to have access to water. 

References      Further Reading •	Día Mundial del Agua (22 de Marzo) Agua y buen gobierno: ejemplos de prácticas idóneas, Pierre Gaillard, UnescoPress. Press Realease No 2004-26 •	Erik Swyngedouw. Power, Water and Money: Exploring the Nexus. Oxford, UK: Oxford University Centre for the Environment, 2006.