When possible, consider using replicable reform elements that have demonstrated success. Prior to the Compact, water and sanitation services were provided through a decentralized system operated by each local municipality on each of the eight islands. Consolidating and corporatizing the municipal utilities was a key approach to enable the corporatized utility, Aguas de Santiago (AdS), to provide better services and become financially sustainable over time. The municipal utilities on Fogo and Brava had successfully corporatized into Agua Brava and served as a model for the creation of AdS. While several factors contributed to the successful creation of AdS (i.e., political will, incentives from the infrastructure grant facility, strong stakeholder engagement, etc.), these models proved that corporatization could work in Cabo Verde. With initial support from the Compact, the process has since been completed on Maio and underway in Santo Antão and São Nicolaou. At endline, customers on Santiago and Maio indicated that they were receiving improved water service under the corporatized utilities.
Lesson Learned