Domestic Private Sector Participation in Peru : Sanitation Markets at the Bottom of the Pyramid--A Win-Win Scenario for Government, the Private Sector, and Communities
Peru has benefitted from macroeconomicstability and growth in the last few years. At the sametime, it also presents important contradictions in terms ofunresolved access to basic sanitation. This is characterizedby: a) an on-going gap that reflects the high levels ofinequity between rural and urban coverage, b) unusedservices and low levels of customer satisfaction withcurrent sanitation solutions, and c) unsustainable andinefficient public investments.Despite of the importantinfrastructure investments of the last 20 years, significantgaps remain, as well as the need to address quality andsustainable sanitation service. Moreover, it has notimpacted the improvement of health and environment-relatedindicators. According to the National Statistics Institute,while national sanitation coverage has increased by 20percent (1993-2007), in the same period the percentage ofprevalence of chronic malnutrition in children under fiveyears old has decreased by 9 percent and that of diarrhea byonly 5 percent.