Sustainable Service Delivery Models for Rural Water Supply

Transcription

1 Sustainable Service Delivery Models for Rural Water Supply Synthesis of Emerging Findings of a Sixteen Country Study Harold Lockwood and Goufrane Mansour Aguaconsult Stef Smits, IRC Susanna Smets, World Bank

2 Sustainability examined in 16 countries with World Bank programs to improve operations and inform global solutions Methodology: Wide range of country contexts Desk review and field visits Support of local consultants, World Bank teams and local stakeholders Outputs: Global Synthesis Country Reports Tool to help teams do sustainability assessment during project preparation/review

3 Analytical framework recognizes: context, building blocks, institutional levels and service delivery models

4 Rigor of qualitative analysis was enhanced through application of a scoring framework Scoring applied to provide snapshot assessment of country progress towards ideal situation of each building block Based on four sub-questions for each building block (max. 8 points per building block) Scoring applied at sector level (max. 40 points) and at service delivery level (max. 40 points) to identify progress, strength and weakness of SDMs Scores based on available secondary data and/or on interviews and interpretation Most conditions are not yet in place, there are significant challenges and much still needs to be done in many areas of the building block There is progress in some aspects, but more still needs to be done, or there is mixed progress across the building block 6 8 All areas of each building block are being addressed, or there is significant progress underway toward optimum conditions in the building block

5 Country Context and Situational Analysis of Rural Water Supply

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7 Access not only predicted by increase in GNI and national functionality monitoring limited Nepal, Bangladesh, Ethiopia, Benin made impressive progress despite modest low GNI, but Tanzania, limited progress, with GNI growth Two thirds of countries have no national system for tracking functionality rates

8 Contextual drivers as demographics and decentralization matter for rural water supply Rural demographics: Growing populations, increasing demand and political importance Ethiopia, Tanzania, Philippines Rising income levels with increasing demand for higher service levels Morocco Shrinking rural populations with less human resources to sustain services - Brazil, China Extent of (fiscal) decentralization: Highly decentralized with significant intergovernmental transfers China, India Highly decentralized in resource poor contexts Kyrgyzstan, Nepal, Benin Stalled decentralization Bangladesh Direct implications for level of public expenditure

9 Country Progress towards Sustainable Service Delivery

10 Results of sector analysis: mixed picture of building blocks and country performance Country Institutional capacity Financing Asset Management WRM Monitoring Regulation Aggregate Score Benin Bangladesh Brazil China Ethiopia Ghana Haiti India Indonesia Kyrgyzstan Morocco Nepal Nicaragua Philippines Tanzania Vietnam

11 Mapping overall sector score - aggregate for building blocks - with GNI per capita

12 Performance of Service Delivery Models

13 Distribution of Service Delivery Models: community based management prevails

14 Scores of Service Delivery Models

15 A nuanced picture for community-based management: aggregation, systematic support and contracting increases performance 40% 26% Community management with no or very limited external support, no monitoring or regulation resulting in poor performance with consistently low scores 14% 17% 3% Association of CBM CBM/ Private sector Other Supported CBM Unsupported CBM Stronger scores for associations or federations of CBM (Brazil/Ceara,Tanzania) Strong scores for CBMs provided with structured support (Ethiopia), although doubts about scalability due to specific donor funding Good scores for CBMs contracting private sector services but retaining control Haiti, Tanzania

16 Public utility provision in rural areas emerges as strong model in few countries Direct local government provision: Few examples, low scores: institutional capacity and financing is weak; do not perform better than community management models Many are not corporatized entities: not able to operate on commercial and autonomous basis; no ring-fencing of accounts from local government budgets Public utility provision: In three countries - China, Morocco and The Philippines Water Affairs Companies in China are urban utilities and perform well in almost all aspects Absorbing rural populations is not commercially attractive and incentives are provided to support the process

17 Private service delivery models perform well, but require effort and resources to scale Relatively common found in 8 countries with range of contractual mechanisms from build operate own, lease and concession contracts. Outperforms other models with consistently higher scores financing Most are pilot scale and receive significant public funds such as to facilitate transaction (enabling environment, project preparation) and attract private investments (capex viability grants) Vietnam framework to encourage domestic private finance with capital support to investors; Thai Binh province Since 2012, capital from private sector is 39% of total 42% of total designed rural water supply capacity private sector participation include build-own-operatetransfer (BOOT), build-own-operate (BOO) and O&M contracts

18 Reflections on strengthening rural water supply services

19 Context-specific trajectories towards sustainable rural water services Dispersed rural populations Service level: Basic, point-source Interventions: Structured programs of support by local government or higher level; Focus on improving water quality; Public funding for capital maintenance costs Support self-supply programs Soft loans to some communities Rural communities and growth centres Service level: Piped networks with or without household connections Interventions: Technical support to service authority and providers; Promote willingness to pay; Simplified asset management; Improve access to repayable financing; Clustering to increase commercial attractiveness Improve monitoring and light-touch regulation Concentrated rural populations Service level: Piped metered household connections Interventions: Incentivize service providers to integrate peripheral rural areas; Strengthen asset management Improve regulation of service providers Performance benchmarking Support consumer-oriented practices Improve access to repayable finance

20 Five key policy highlights 1. There is a missing middle in the enabling environment: investment in systems, capacities and resources need to go down to service authority level 2. Communities on their own can often pay O&M plus but not full cost recovery: financing from tariffs can cover O&M (and beyond) but plan for continued public financing for direct and indirect subsidies from taxes and transfers 3. The transition to higher service levels needs to be well managed: better service levels with larger, more complex schemes, will require professionalized management, asset management, comprehensive monitoring and introducing light touch regulation 4. There is no "right or wrong" service delivery model: the success of any model depends on continuous support provided for asset management, calculating tariffs, advice on community-mobilisation, and monitoring; multiple models will continue to co-exist 5. Dispersed and hard to reach people require explicit focus to avoid stagnation: as countries move along the development trajectory vulnerable, ethnic and minority groups will require tailored approaches

21 Merci Thank you