 An initial assessment shows that the first group of municipalities, which have delegated their water supply and sanitation services, like Cayambe (municipal company), Pedro Moncayo (municipal company, privately operated), Pujilí (municipal company), Guaranda (municipal company), Caluma (mixed company) and Echeandía (cooperative) have significantly increased their operative efficiency and raised tariffs to at least cover their operation and maintenance costs.The second stage, called APL-2/PRAGUAS II was approved by the World Bank's board on July 25, 2006.PRAGUAS II is expected to provide the following benefits