Sustainable Water Sector Reforms in Africa

Transcription

1 SUSTAINABLE WATER AND SANITATION IN AFRICA (SUWASA) Sustainable Water Sector Reforms in Africa DENNIS D. MWANZA CHIEF OF PARTY SUWASA

2 OUTLINE OF PRESENTATION Urbanization Utility reform Governance Challenges Institutional arrangements Lessons learnt Way forward A USAID program implemented by Tetra Tech 2

3 SUWASA SUWASA -a six-year USAID institutional, regulatory, legal reforms Innovative financing Launched in SUWASA has Reform activities in 9 Countries A USAID program implemented by TetraTech 3

4 CHALLENGES: URBANISATION Urban population grown by more than 10 fold in Africa since 1965 i.e. From an urban population of 44 Million in 1965 to 412 Million in 2010 World s most rapid growth averaging 3.3 % from Unfortunately most of the urban growth is in slums (for every 100/ 75 go into slums) Access to water and sanitation still very low Most Countries in Africa have huge water resources A USAID program implemented by Tetra Tech 4

5 Cape Town, Luanda, South Angola Africa Lagos, Nigeria Lagos, Nigeria Kinshasa, DRC Johannesburg, South Africa A USAID program implemented by ARD, Inc. 5

6 Today 72% of urban dwellers in Africa live in slums (compared to 46% in Asia and 30% in Latin America) Source: G. Alabaster, UNHABITAT, 2010 A Slum in Nairobi source: African slums A USAID program implemented by Tetra Tech 6

7 Water Utilities not operating efficiently; double problems Africa: Access to essential water services is still low FINANCIAL REASONS Water Coverage is slightly above 50% Only 35% with household connections Flush toilets less than 8% 65 % unimproved sanitation facilities Inadequate funds to meet O&M Low investments Low tariff levels hence sustainability at risk Low billing and collection Non-payment for services especially by Government Departments

8 CHALLENGES Unfortunately urban water infrastructure not grown at the same or proportional rate as population Urbanisation adding more pressure on already overstretched infrastructure. While in urban areas MDGs may be met, higher access quality house connections still low -35% of urban population Efficiency levels of service providers contributes to low access rates A USAID program implemented by Tetra Tech 8

9 Women queuing for water Water vendor A USAID program implemented by ARD, Inc. 9

10 Efficiency in operations Most utilities on average NRW % Low billing and collection leading to low cost recovery Metering ratio a strategy not only for NRW reduction but also for increasing cost recovery Human resources efficiency levels i.e. Staff per 1000 connections more than 10 Cost of production also increasing energy, chemicals A USAID program implemented by Tetra Tech 10

11 Common institutional arrangements for urban water services in Africa Countries with State or municipal Owned companies (in light brown) Countries in SSA with PSP At least a Management Contract 1. Senegal 2. Niger 3. Cote d Ivoire 4. Ghana 5. Cameroon 6. Gabon 7. Mozambique

12 Countries with autonomous regulatory bodies 1. The Gambia (PURA) 2. Mali (CREE) 3. Niger (l ARM) 4. Ghana (PURC) 5. Zambia (NWASCO) 6. Mozambique (CRA) 7. Kenya (WASREB) 8. Rwanda (RURA) 9. Tanzania (EWURA) A USAID program implemented by Tetra Tech 12

13 Utility Reforms Governments over the last 15 years embraced water reforms not yielded much apart from reports, policies and strategies: Government policies generally leaning towards sustainability, commercialization Policies of cost recovery very common Desire to provide management, financial and technical autonomy to service providers

14 Utility reforms cont d At least 75% of utilities in Africa though state owned are meant to operate as commercial entities Still a handful with a high level of PSP - SSA Senegal, Cote d Ivoire, Niger, Gabon, (Cameroon, Mozambique (PPP)) A USAID program implemented by Tetra Tech 14

15 PPP in Water services In recent past Governments opening up to engagement with Private sector for infrastructure investments Need for Private sector in Management Management, Lease, Affermage, Concession Strong Regulatory framework a necessity for engaging with Private sector Partnership approach Governments alone can not make it A USAID program implemented by Tetra Tech 15

16 Lessons learnt and principles Greater likelihood of financial sustainability -sufficient autonomy. Good corporate governance/accountability Autonomy being granted to service providers mainly through legislation Introduction of clear regulatory frameworks PPP must be promoted A USAID program implemented by Tetra Tech 16

17 Way forward: BUILD STRONG INSTITUTIONS Institutions built on foundation of good corporate governance Problems at the moment: Board of Directors appointment mechanisms, composition, how CEO is appointed etc Autonomy of service providers management, financial A USAID program implemented by Tetra tech 17

18 Way forward Full cost recovery or phased approaches starting with O&M is key Tariffs that will yield cost recovery but at the same respect the urban poor Design and implementation of Performance Improvement Plans A USAID program implemented by Tetra Tech 18

19 Thank you for your attention A USAID program implemented by Tetra Tech 19