In 1998, most officials in El Salvador recognized that the water infrastructure and the institutions responsible for its management are in poor condition. Without reforms, the country would not be able to supply a large part of its population with water and sewerage services. The Inter-American Bank had made it clear that financial aid to El Salvador would depend on the country’s willingness to restructure its water system. There were big differences between the parties as to how the system should be reformed, but not if. HKS case number 1483.0
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