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Behavioral Interventions to Encourage Timely Payment and Prevent Debt Accumulation in Water Services

The TC aims to design, implement, and rigorously evaluate low-cost behavioral interventions to reduce delinquency in paying residential water bills, accelerate debt regularization, and improve users' understanding of the tariff structure. The proposal addresses a problem relevant to the provider's financial sustainability: approximately 13% of bimonthly residential billings are not paid on time, and accumulated arrears exceed US$140 million, limiting OSE's operating, maintenance, and investment capacity, particularly for climate-resilient infrastructure. The Bank's added value consists of combining sector experience in water and sanitation with specialized capacities in behavioral economics and impact evaluation. The TC will generate the first rigorous evidence in Latin America on behavioral interventions to improve payment compliance in water services, through a randomized controlled trial comparing redesigned notifications and SMS/WhatsApp reminders, as well as their complementarity. The TC is linked to operations UR-L1207 and UR-T1349, aimed at strengthening water resource management, service quality, and reducing drinking water losses, and to operation UR-L1213, currently in preparation, which includes actions to reduce commercial losses in the Costa de Oro region. It also contributes to the IDB Group's Country Strategy with Uruguay by strengthening public resource management, environmental sustainability, and social inclusion through more sustainable, affordable, and resilient water services.

Project Detail

Country

Uruguay

Project Number

UR-T1387

Approval Date

-

Project Status

Preparation

Project Type

Technical Cooperation

Sector

REFORM / MODERNIZATION OF THE STATE

Subsector

MANAGEMENT FOR DEVELOPMENT RESULTS

Lending Instrument

-

Lending Instrument Code

-

Modality

-

Facility Type

-

Environmental and Social Impact Category (ESIC)

-

Total Cost

USD 180,000.00

Country Counterpart Financing

-

Original Amount Approved

USD 180,000.00

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