A/HRC/36/45/Add.1 access to water and sanitation. Hundreds of small-scale municipalities that carried out the role of water service provider were unable to obtain funding or implement the required investment to improve their services. Furthermore, there was a lack of comprehensive, reliable information to support strategic development, policymaking and decision-making, both at the central and local levels. That subsequently led to a gap in the national strategy to address the issue of access to water and sanitation. In response to those challenges, Portugal has implemented reform in its water sector, which has resulted in institutional and legislative changes. 1. Service management models and service providers 22. The water sector in Portugal is organized into two main levels. The first level, “em alta” or “bulk”, includes the activities of water abstraction, treatment and storage, as well as wastewater treatment and disposal. The second level, “em baixa” or “retail”, includes the activities of water distribution and provision to individual users, and the collection of wastewater from users. 23. Based on the two levels, the responsibility for water supply and sanitation services is shared between the central Government and the local governments of the municipalities. At the bulk level, there are 11 water service providers and 9 sanitation service providers. Under Decree-Law No. 72/2016, the service provisions at the bulk level are under the jurisdiction of the State through the multi-municipal systems. Under Decree-Law No. 90/2009, at the retail level, there are 301 water service providers and 257 sanitation service providers whose activities fall under the jurisdiction of the municipalities. 11 The provision of water and sanitation services, including the ownership of assets, is by law a public responsibility. However, private operators can participate in drinking water supply and sanitation services through a concession contract to manage the service for a given period of years or by participating in the share capital of municipal companies. 24. In addition to the level at which the water and sanitation service providers engage, the providers are distinguished according to different management models. At the retail level, under Decree-Law No. 194/2009, water provision can follow one of four models: (a) direct management, which can be provided by municipal or inter-municipal utilities; (b) delegated management, where a public company is in partnership with the State; (c) delegated management by a municipal company (with public or mixed capital); and (d) management through concession to private companies. Direct management is the most widespread, covering approximately 70 per cent of all municipalities and about 52 per cent of the total population of continental Portugal. The other three models are predominantly found along the Portuguese coast or in the large urban centres. 12 Similar to water supply, sanitation services are provided using models including direct management, delegated management and management through concession. Direct municipal management is also the most common, providing services to 75 per cent of municipalities and almost 59 per cent of the population of continental Portugal. 13 25. At the bulk level, multi-municipal systems (regional monopolies) were created, transferring powers and responsibilities from local authorities and their respective management bodies to State-owned public companies, in which municipalities own 49 per cent and the national State owns a stake of 51 per cent through the State-owned holding company, Águas de Portugal. Águas de Portugal was set up in 1993 in order to overcome the problems facing the water and sanitation sector at the time, namely, the fragmented system that engendered a lack of capacity to share expertise and know-how. Through its subsidiary companies, Águas de Portugal designs, builds, operates and manages water supply and sanitation systems in liaison with partner municipalities. In addition to its commercial activity of provision of bulk water, which covers 80 per cent of bulk water in Portugal, the work of Águas de Portugal also concerns public policy aspects of water services. In that regard, the Special Rapporteur reiterates guiding principle 4 of the United 11 12 13 See www.esgra.pt/wp-content/uploads/2016/12/RASARP2016_Volume_1.pdf, p. 45. Ibid., p. 49. Ibid., p. 55. 7