Access to water supply and sanitation in developing countries

Transcription

1 OECD Expert Meeting on Water Economics and Financing Access to water supply and sanitation in developing countries Benefits in terms of governance and sustainability Jacques Labre, Vice President Relations with Institutions, Suez Environnement Paris 17 march 2010

2 Outline SUEZ Environnement s experience in provision of access to deprived communities Assessment of benefits in cases covered by SUEZ contracts Benefits of networks utilities vs individual water systems 2

3 Major water contracts of Suez Environment in developing countries Morocco LYDEC Casablanca (1997- ) Algeria SEAAL Algiers (2006- Jordan LEMA Amman ( ) RSA JOWAM Johannesburg ( ) WSSA Queenstown ( ) Amanz abantu, Eastern Cape Prov ( ) Metsico Northern Province ( ) Argentina Aguas Argentinas Buenos Aires ( ) Aguas Cordobesas Cordoba ( ) APSF Santa Fe Prov. ( ) Bolivia Aguas del Illimani La Paz ( ) Brazil Aguas do Amazonas Manaus ( ) Aguas de Limeira Limeira ( ) Mexico Aguakan Cancun (2002- ) Indonesia PALYJA Jakarta (1998- ) Philippines Maynilad Manilla ( ) China Macao Water Macao ( ) 3

4 Contribution of Suez Partnerships to the MDGs Population served in non OECD countries : up to 40 million (including 8 million earning less than 2$/day) Increase of population served during the contract duration The contracts considered have permitted Individual access to potable water for 8 million persons Access to collective standpipes for 1,8 million Access to sewerage systems for 4,5 millions (Those figures include demographic growth in the service area) 4

5 Reduction of the proportion of unserved population : 2 examples Buenos Aires (Argentina) : 2/3 of the proportion of the unserved population have been connected to the drinking water system in 12 years (and ¼ to the sewerage system) La Paz et El Alto (Bolivia) : 4/5 of the proportion of the unserved population have been connected to the drinking water system in 8 years (and ½ to the sewerage system) 5

6 Outline SUEZ Environnement s experience in provision of access to deprived communities Assessment of benefits in cases covered by SUEZ contracts Benefits of networks utilities vs individual water systems 6

7 Argentina : The Impact of improvement of Water Services on Child Mortality Source : «Water for Life : The impact of privatisation of water services on Child Mortality», S. Galiani, P. Gertler and E. Schargrodsky, June Child mortality decrease was bigger by 23% in the poorest municipalities of Argentina that delegated their water services. 7

8 Philippines : the economic value of drinking water is greater than the water tariff : economic assessment of the Bayan Tubig programe in Manila Facts and Figures The private benefits only, for the households in blighted areas connected are estimated to a NPV of $7,7M/year: 4.7 $M for consumer surplus 3 $M for health expenses reduction, while the turn-over of the water company for the area is $1M/year: 8

9 Outline SUEZ Environnement s experience in provision of access to deprived communities Assessment of benefits in cases covered by SUEZ contracts Benefits of network utilities vs individual water systems 9

10 Small / Individual is not always beautiful Doubts in the public opinion about the value of network systems for water supply and sanitation : Attractiveness of individual water supply systems : rainwater collection (France) private wells (Jakarta) private desalination (Cancun) Risks on economic balance of public utilities Wastage of capital through duplication of investments Poor understanding of the sanitation chain Access to sanitation cannot be restricted to access to toilets Fashion for Eco sanitation concept Energy efficiency / GHG emissions need to be accounted for Life Cycle Assessment methodology should be used to assess the value of alternative solutions Examples Small waste water treatment plants Grey water recycling in buildings 10

11 Beyond public health benefits : societal impact of a well functioning water utility A public utility is an instrument for urban solidarity Public services are much more affordable for the poor than individual solutions Possibility of cross subsidy mechanisms The public service can optimise the use of resources Optimal allocation of water resources Economies of scale (WWTP), energy recovery Public service is an element of the culture and cohesion of the community Urban water systems are part of a common heritage Well managed water utilities can be the forerunners among local businesses in HR management, Quality Assurance, CSR Reforms may fail if this aspect is neglected 11