Water Costs In Bolivia: A Comprehensive Overview

Bolivia has made significant progress in improving access to clean water and sanitation, with 84.7% of the population having access to improved water sources in 2020. However, the country still faces challenges with the lowest coverage levels and low-quality services compared to the rest of the continent. In January 2024, the average price of bottled water in Bolivia was $0.65 USD for a 1.5-liter bottle of a local brand, lower than the global average of $0.81 USD. Bolivia's second-largest city, Santa Cruz de la Sierra, successfully manages its water and sanitation system through cooperatives, while other cities like Cochabamba have experienced issues with water privatization and price hikes. Bolivia offers a low cost of living, and its residents can enjoy a comfortable life at a much lower cost compared to North American cities.

Bottled water costs 0.65 USD for 1.5 litres

Bolivia has made significant progress in providing access to clean water and sanitation to its citizens, with 84.7% of the population having access to improved water sources in 2020. However, the country still faces challenges in ensuring consistent water supply and maintaining the quality of water due to factors such as political instability, low investment, and the impacts of climate change.

In Bolivia, bottled water is readily available and relatively affordable. As of January 2024, the price of bottled water in the country was 0.65 USD for a 1.5-litre bottle of a local brand. This price is slightly lower than the average price for bottled water across 91 countries, which stands at 0.81 USD for the same quantity.

The cost of bottled water in Bolivia is influenced by various factors, including production and distribution costs, as well as the purchasing power of its citizens. With a lower cost of living compared to the United States, Bolivia offers an affordable standard of living, including access to basic necessities such as water.

It is worth noting that the price of water in Bolivia has been a subject of controversy in the past. In the late 1990s and early 2000s, there were protests against water privatisation and price hikes implemented by foreign private companies. These protests, particularly the Cochabamba Water Revolt, led to the termination of concessions granted to these companies and the return to public utility companies.

Today, Bolivia continues to work towards improving its water and sanitation infrastructure, with the government prioritising citizen participation and access to essential services, especially for vulnerable groups.

Cochabamba's water bills increased by 60% in 2002

Before the privatisation, the waterworks of Cochabamba were controlled by the state agency SEMAPA. However, after pressure from the World Bank, the Bolivian government put SEMAPA up for auction for privatisation. The sole bidder for the project was Aguas del Tunari, a consortium between several foreign companies and four Bolivian companies. The Bolivian government agreed to the terms of Aguas del Tunari and signed a $2.5 billion, 40-year concession for them to "provide water and sanitation services to the residents of Cochabamba, as well as generate electricity and irrigation for agriculture."

As a result of the privatisation, water rates in Cochabamba increased drastically. For example, in November 1999, before the rate hikes took effect, Morales had a monthly water bill of 25 Bolivianos (about $4.15). In February 2000, after the price hikes, his water bill jumped to 39.80 Bolivianos ($6.63), a 60% increase. This increase in water rates sparked widespread protests, as many residents of Cochabamba could barely afford to pay for water, let alone the increased rates.

The protests, largely organised by the Coordinadora (Coalition in Defense of Water and Life), a community coalition, began in January 2000 and continued until April 2000. Tens of thousands of people marched downtown, battling police, and one civilian was killed. On April 10, 2000, the national government reached an agreement with the Coordinadora to reverse the privatisation, and control of Cochabamba's water was granted to the grassroots coalition.

Bolivia's drinking water coverage has improved since 1990

Bolivia has been working to improve its drinking water coverage since the 1990s. Despite having the lowest coverage levels in South America, 90% of the population had access to "improved" water sources in 2015, with 97% and 76% coverage in urban and rural areas, respectively.

The country has a long history of political and institutional instability, which has weakened the water sector's institutions. However, Bolivia's drinking water coverage has improved since 1990 due to increased sectoral investment. The Bolivian government has also been working to increase citizen participation in the sector and to strengthen community water rights.

In 1999, during the second mandate of Hugo Banzer, the sectoral institutional framework law (Law 2029) was established, allowing for private sector participation and formalizing SISAB as a regulator. However, following two popular uprisings against water privatization in 2000 and 2005, the two major water concessions granted to the private sector were terminated.

The Evo Morales government, which came into power in 2006, has made efforts to increase access to water and sanitation services, with the president stating that "water cannot be a private business because it converts it into a merchandise and thus violates human rights." The government has also set ambitious goals to achieve universal access to drinking water services by 2020 and sanitation services by 2025.

In 2008, the government published a National Basic Sanitation Plan, which set targets of 90% access to water and 80% access to sanitation by 2015. To achieve these targets, the plan estimated that US$283 million per year in investments would be needed.

Despite these improvements, Bolivia continues to face challenges in the water sector, including low access to sanitation and water in rural areas, insufficient and ineffective investments, and a lack of respect for indigenous customs. Additionally, the quality of service in most of the country's water and sanitation systems remains low.

In recent years, Bolivia has also experienced water shortages due to drought and the impacts of climate change, which have further highlighted the need for continued improvements in the country's water sector.

84.7% of Bolivia's population had access to improved water sources in 2020

In 2020, 84.7% of Bolivia's population had access to improved water sources. This is a notable increase from 2015, when 82.6% of the population had access. This progress can be attributed to various drinking water and sanitation programs implemented by the country in both urban and rural areas.

One notable program is the "My Water" Program, which aims to increase access to drinking water and improve the quality of water provision. Additionally, rainwater harvesting has been adopted as a water supply solution in both rural and urban areas to address emergencies due to water deficits.

Despite this progress, Bolivia still faces challenges in ensuring universal access to clean water and sanitation for its entire population. The relationship between climate change and water stress has had devastating effects on the country, with extreme droughts and floods impacting its water resources. Mining, deforestation, and urbanization have also contributed to water quality issues.

To address these challenges, Bolivia has partnered with organizations like the Global Water Security and Sanitation Partnership to develop a national strategy for wastewater treatment and explore alternative approaches to improve its urban sanitation gap.

The country's progress in increasing access to improved water sources is a positive step towards ensuring that all Bolivians have access to this essential resource. However, continued efforts and investments in water infrastructure and sanitation facilities are necessary to achieve universal access and improve water quality.

The country's second-largest city manages its water system through cooperatives

Bolivia's drinking water and sanitation coverage has improved since 1990, with 84.7% of the population gaining access to improved water sources by 2020. However, the country still faces challenges, such as low coverage levels and poor service quality. The country's second-largest city, Santa Cruz de la Sierra, stands out for its successful management of water and sanitation systems through cooperatives.

Santa Cruz de la Sierra, also known as Santa Cruz, is a shining example of effective water management in Bolivia. The city's water system is run by a cooperative called SAGUAPAC, which is owned and controlled by its consumers. According to the World Bank, SAGUAPAC is one of the top water utilities in Latin America in terms of performance indicators. This cooperative model ensures that the people of Santa Cruz have a direct say in how their water system is operated, promoting transparency and accountability.

The success of SAGUAPAC in Santa Cruz highlights the benefits of cooperative management in the water sector. By involving consumers in decision-making, Santa Cruz has achieved a level of efficiency and responsiveness that is often lacking in traditional utility models. This approach empowers residents to address their own needs and priorities, fostering a sense of ownership and community engagement.

The cooperative model in Santa Cruz stands in stark contrast to the privatization efforts seen in other Bolivian cities, such as Cochabamba and La Paz/El Alto. In the late 1990s and early 2000s, these cities granted concessions to foreign private companies, which resulted in significant rate hikes and widespread protests. The Bolivian Water Revolt in Cochabamba gained international attention, ultimately leading to the termination of the concessions and a shift back to public utility models.

Moving forward, the Bolivian government aims to strengthen citizen participation in the water sector. President Evo Morales has emphasized that "water cannot be a private business" and has taken steps to increase public control over water resources. The proposed "Water for Life" law seeks to eliminate the legal concept of concession and strengthen community water rights. These efforts reflect a commitment to ensuring that all Bolivians have access to affordable and reliable water services.

Frequently asked questions