A/HRC/42/47/Add.3 national action plan so that service providers adhere to the Guiding Principles and ensure human rights due diligence when delivering water and sanitation services. PROGRESS ON-GOING: Although the Special Rapporteur is pleased that Águas de Portugal undertakes to improve the well-being of the community and advance community development through its work, he is disappointed that Águas de Portugal, the Empresa Portuguesa das Águas Livres and other service providers are yet to commit themselves to the UN Guiding Principles on Business and Human Rights. However, he is glad to note that Portugal is enacting a national action plan on business and human rights which implements the Guiding Principles and reiterates that doing so will accelerate the current progress made by relevant actors to integrate human rights principles into all of their operations. I. Recommendation on monitoring concessions RECOMMENDATION 9: “Carefully monitor the processes by which concessions are granted for water and sanitation services in order to reduce the financial burden and risks for municipalities.” (A/HRC/36/45/Add.1, para. 82(h)) 33. Businesses in Portugal are able to provide water and sanitation services on concession contracts concluded with public bodies. In 2013 an audit of concession contracts by the Portuguese Court of Auditors identified that water and sanitation contracts handed significant benefits to private entities to the detriment of municipalities and consumers. In particular, many of these contracts failed to place the risks of non-profitability on the private entity, instead leaving these risks to be taken on by the contracting public body. (A/HRC/36/45/Add.1, para. 40). 34. Regarding the monitoring of concession contracts, the Government noted that ERSAR exercises a monitoring function over both new and renegotiated concession contracts, issuing an “opinion” regarding these which analyses them for key features such as affordability. According to the Government, “[l]ocal authorities must follow these opinions, except if duly justified. If the involved parties do not follow ERSAR’s opinion, they have to justify the alternative options.” Furthermore, the Government has stated that ERSAR is currently working to propose changes to current legislation regarding the concession contract model. It did, however, not specify the exact parameters of these proposals. 35. The Special Rapporteur regards the oversight provided by ERSAR in assessing the affordability of concession contracts to local authorities as positive. By requiring that multimunicipal water and sanitation systems are operated by public bodies, the risks that can be posed in these instances are, obviously, negated. The Special Rapporteur would appreciate more information regarding the proposals of ERSAR to determine whether these would, in fact, assist in protecting municipalities and consumers therein. GOOD PROGRESS: The Special Rapporteur congratulates the Government for introducing legislation to minimise the negative effects caused by concession contracts and encourages the Government to continue its efforts in this area. III. The human rights to water and sanitation A. Recommendation on individual solutions for sanitation RECOMMENDATION 10: “Provide further support to local governments in relation to the construction and maintenance of individual solutions for sanitation, particularly for those who are in vulnerable situations, including people living in informal settlements and the homeless.” (A/HRC/36/45/Add.1, para. 82(n)) 36. Despite a significant and impressive progress water and sanitation services in Portugal, the Special Rapporteur noted that there remains a significant number of people 9