Since water is a common good, I choose to have it managed by the government
Mr. Yvon Pacquit, chairman of the board of directors of Odyssi, the CACEM’s community water and wastewater management agency, presents the organization he leads. He discusses its specific legal framework and then provides a more detailed explanation of the organization’s various responsibilities and the goals it pursues.
You describe ODYSSI as a community-run agency serving the Schœlcher, Fort-de-France, Lamentin, and Saint-Joseph metropolitan area—that is, the central metropolitan region. Could you explain in more detail the specifics of this legal status?
ODYSSI operates under a management model known as «the Régie.» In fact, when a local government has a specific area of responsibility, it has two options for exercising that authority: either it carries it out itself, or an external entity implements it. CACEM opted for the second solution: Odyssi is indeed an external entity of CACEM—a “régie”—dedicated to water services. To summarize how it operates: it can be described as a public body that functions like a private company. In other words, the local government responsible for overseeing the service does not need to issue a public contract to delegate this authority to its public utility. This agency has its own budget and operates in three areas: water management, public sewer systems, and on-site wastewater treatment (septic tanks and combined septic systems followed by a drainage system). Odyssi has legal personality, meaning it can be a party to legal proceedings. The institution also has its own budget and Board of Directors. The Board is composed, on the one hand, elected officials from the CACEM, who form the majority, and, on the other hand, qualified individuals from agencies such as the ODE, the Basin Committee (currently the Biodiversity Agency), state agencies through the DEAL, and consumer representatives. At Odyssi, a Public Industrial and Commercial Institution (EPIC), the Director General is appointed by the president of CACEM, the overseeing authority. In this type of institution, only the Director General and the accountant are civil servants; the rest of the staff are generally subject to private-sector law. The establishment of a public enterprise thus stems from a desire to manage the organization independently.
It is not only in the water sector that a private company provides a public service. A clinic, for example, is a private facility, but it provides a public health service.
What are the reasons behind this decision? Is it the result of an implicit political choice?
CACEM could have chosen a management model known as «leasing.» In fact, this involves the delegation of a public service; that is to say, it could have entrusted the management of water and sanitation to a private company following a competitive bidding process. CACEM did not opt for this management model. Instead, it chose to establish a municipal utility, which reflects a desire to manage these services in-house. Yes, we view the issue of water as a political choice. This choice dates back a long time. Before becoming the CACEM community agency, it was the autonomous water agency of the city of Fort-de-France. When Césaire became mayor after the war, in 1945–46, he made a political choice and said: « Since water is a common good, I choose to have it managed by the government», which was achieved with the creation of the Fort-de-France Water Authority. It began as the city’s autonomous water authority; subsequently, the structure evolved and became a public utility with legal personality. In 2004, responsibility for water services was transferred to CACEM, and a community-run utility was established. Currently, water services in the four municipalities of central Martinique are managed by ODYSSI. It should be noted, however, that all other municipalities in Martinique are managed under a public service delegation agreement. In fact, private companies are responsible for managing this service in the other municipalities of Martinique.
What are the advantages of being a «municipal agency» in terms of cost-effectiveness? How does this choice benefit you compared to the choice made by other municipalities on the island?
It is not only in the water sector that a private company provides a public service. A clinic, for example, is a private facility but provides a public health service. The premise underlying Aimé Césaire’s choice, which CACEM upholds, is as follows: «Water is a common good, a public good essential to life. As such, it must be managed through public administration.» This political choice underscores that the water sector, independent of commercial demands, is a «common good.» This means that no profits should be made from water; any surpluses are reinvested. Therefore, there are no dividends to distribute, unlike in a private company. This does not mean that public management is better than private management. Indeed, in both the private and public sectors, professionals strive to achieve a competitive level of performance. However, philosophically and politically, we believe that water is a common good and not a source of dividends for shareholders. The transition from the Fort-de-France water authority to the CACEM marks a shift in the scale of management.
How does this change affect the community-run agency's internal flexibility and reduction of operating costs?
Yes, there is what is known as the concept of scale. There are overhead costs you have to deal with when you invest. To make the organization profitable, you need to expand its scope of operations. So the same Odyssi organization, working only in Fort-de-France, will be much less efficient than if it worked in four municipalities. Because when you expand your service area, it doesn’t necessarily mean you have to increase your staff—instead, you spread your overhead costs across a much larger customer base. For us, having this operational scope covering the four municipalities of the CACEM allows us to work on a larger scale and better control our expenses. The goal is to create the conditions for prices that are affordable for customers, better control over production costs, and therefore better control over the final price. We operate like a private company, which means we have the obligation, the mindset, and the commitment to control our cost of goods sold, just as any private company would. It’s worth noting that the majority of ODYSSI’s workforce consists of employees under private-sector contracts.
Is the Odyssi initiative based on a cross-sectoral analysis of water policy in general across the entire region?
Let’s first take a look at the various organizations that manage water resources in Martinique. First, there is the Plan Eau Dom, which has just been established. It is, in fact, a conference of stakeholders. It includes the Caisse des Dépôts et Consignations, the French Development Agency, the French Agency for Biodiversity, the CTM, and a number of other organizations. They make decisions regarding which projects to select for funding. There is also the “Water Parliament,” which is the River Basin Committee (now known as the Biodiversity Agency). It is within this body that major policy decisions regarding water management are made. You also have the Departmental Water Plan, managed at the CTM level, which sets out its guidelines for the entire territory. These are political decisions regarding general policy directions. And then, at the operational level, there are three entities responsible for managing water resources: Espace Sud, CACEM, and Cap Nord. These three Urban Communities have jurisdiction over water and wastewater services in the south, center, and north of Martinique, respectively. In our management, we take these general guidelines into account. However, for the time being, there is no coordinated management of water resources in Martinique: each body manages at its own level.
Can we hope that, in the not-too-distant future, we will be able to further decentralize the decision-making process to achieve regional water management and logistics?
It’s already a major step forward to have reached the community level. Each municipality used to have its own sanitation plan and water plan; the fact that authority has been consolidated at the Urban Community level is already a major step forward. In the future, coordinating investment policies across all of Martinique would represent even greater progress. Coordination among the three stakeholders could facilitate agreements on investment policies, maintenance policies, and pricing policies throughout Martinique. We are currently engaged in this process, which involves asking ourselves: how can we optimize available resources so that, ultimately, we can achieve the lowest possible end prices? All while keeping the interests of consumers and users in mind.
When it comes to the issue of sustainable development, are you looking to expand the scope of policy implementation?
Yes, we want a more regionally focused and proactive water policy. To that end, I have taken a number of initiatives. At the national level, Odyssi has been a pioneer in advancing public management: For example, through the FNCCR (National Federation of Contracting Authorities and Public Utilities), which brings together all local governments—particularly for the management of local services such as water, the environment, electricity, digital services. As a member of the board of directors of this national organization, I helped establish France Eau Publique. This entity’s mission is to promote and advance public water management. We are also active at the European level, as we are members of Aqua Républica Europea, a European federation that includes several European cities. Together, we promote public water management at the European level. The cities of Paris and Nice, for example, which were previously under private management, switched to public management less than ten years ago in the case of Paris and five years ago in the case of Nice. We are part of a movement whose goal is to ensure that water is managed under a public framework, recognizing that it is a common good.
Do you currently have the means to assess the effectiveness of this public water management?
Others have done it! Other regions, other departments, and other cities—such as Paris, for example—have been able to make a difference statistically (they took that step 10 years ago). In Martinique, we don’t have enough data to make a difference, because we’ve always operated under public management. We can compare ourselves to those operating under private management. Private management is considered to be much more cost-conscious. They’ll say, «We’re more efficient in terms of the number of staff needed to get the job done. The public sector tends to have more staff. So it costs more.» Quite frankly, if we compare the management of a production plant or a treatment plant, we currently use more people to operate these facilities than the private sector does. In the area we manage, it’s clear that we have a larger workforce than a company like SME. In terms of personnel costs, the private sector is more efficient than we are. Furthermore, the private sector has more opportunities for major investments.
In the public sector, it is necessary to seek out grants: Investments may take longer to implement. However, the benefits of public management are significant:
- Controlling the environmental impact: Under public management, there are no dividends to distribute. Decisions will be more in line with the common good.
- Since there are no shareholders to compensate, profits are reinvested in the continuous improvement of our services, and there is less pressure to raise prices. We don’t have shareholders to please.
- There’s a real focus on water quality, even if it means spending a little more. At Odyssi, the water is of excellent quality, even if it costs us a little more. We provide premium-quality water because we aren’t constrained by profit margins. Cruise ships choose Martinique as a destination to replenish their water supplies. Our water has a reputation for being of the highest quality. At one point, ours was among the highest-ranked water supplies in France. We go beyond regulatory requirements—that’s yet another difference from the private sector. For us, public management means quality, training for staff, and putting the human aspect first. In the private sector, the goal is to maximize profit margins.
As part of this same movement, you promote a whole range of eco-friendly practices—what are they?
We are in public administration. We have an obligation to work toward protecting the environment. Water withdrawals from rivers will not exceed what is necessary to maintain the balance of ecosystems. The same applies to sewer systems; we will ensure that they function properly and that they are well sealed. There is a public concern, so to speak, for the health of users, since we have jurisdiction over both water and the environment.
Interview by Leïla Gonier
