REMARKS. by Mr. Nigel Romano Vice-President (Operations) Caribbean Development Bank. at the Opening of the Water Utility Reform Workshops

Transcription

1 AS PREPARED FOR DELIVERY REMARKS by Mr. Nigel Romano Vice-President (Operations) Caribbean Development Bank at the Opening of the Water Utility Reform Workshops Accra Beach Hotel & Spa Christ Church, Barbados November 27,

2 Members of the head table Specially invited guests Executives from the water utility companies and CDB colleagues Ladies and Gentlemen, Good morning I am pleased to welcome you to the first of two water utility reform workshops, that the CDB will be presenting in collaboration with the World Bank, the GEF- Caribbean Regional Fund for Wastewater Management and the Caribbean Water and Sewerage Association Inc. I'd like to share with you two thoughts today: the first the current situation in the water sector, and the other, about the Region s potential. THE CURRENT SITUATION The global development agenda is centered on the Millennium Development Goals (MDGs); Goal 7 of which seeks to ensure environmental sustainability and more specifically, to reduce by half, the proportion of people without sustainable access to safe drinking water and basic sanitation by In 2012, the United Nations (UN) announced that the world had met the MDG s drinking water target ahead of the scheduled date. The good news is that percentage of the population in CDB s BMCs using an improved drinking water source increased from 91% in 1990 to 96% at the end of 2012, beating the target.

3 3 Although the Caribbean s achievement is commendable, we know that a high level of access to improved water and sanitation services does not in all cases mean there are consistently good or reliable services. Of particular concern are: differences in the level of coverage across countries, social groups and rural/urban communities; need for improvements to water quality; frequency and length of service disruptions; and the high levels of leakage. The recent CDBfunded Assessment of the Water Sector in the Caribbean study highlighted these issues and noted that for water utility companies in the Region to be financially sustainable, they need to increase their efficiency and address these issues. CHANGING THE STATUS QUO HOW CAN WE DO THIS? One approach is the reform of water utility companies to increase transparency and accountability to stakeholders, and improve their finances. Water utility reform in the Region has generally focused on regulation and private sector participation. However, regulation alone will not lead to improvements in the water sector. It is only one part of more comprehensive reforms that must take place in the overall water sector. Some of the approaches that need to be considered include: (a) (b) (c) a market structure that defines service provision and the role of the private sector; capacity development for the management and staff of utility companies; and an agreed water supply and waste water sector policy framework that provides for public and private sector service providers. 3

4 4 In relation to capacity development, CDB determined that one way to assist in improving the current situation is to provide CEOs, mid-level managers and technical staff of water utility companies with information on best practices and tools needed to assess the efficiency and performance of their operations and the knowledge and methodologies to design and implement reform programmes. We have started the process and we are pleased that 27 professionals, including two CEOs from water utility companies and regulatory agencies in 16 of 19 of our Borrowing Member Countries have successfully completed the World Bank s online course on designing and implementing successful water utility reform. The course included the preparation of a reform plan. However these plans now need to be implemented and implementation needs champions! CDB is mindful of the fact that if we don t start discussions with you the CEOs those plans, no matter how good they are, will become shelf-ware and the opportunities for efficiency gains will be lost. CDB is also very encouraged that 18 CEOs from public and private sector water utility companies in 16 BMCs will over the next 3 days, be: reviewing issues associated with increased private sector participation; provided with information on measures to improve service provision, and examining partnership with the private sector service to increase the efficiency of their operations. 4

5 5 REFORM AND POVERTY The engagement over the next 2 to 3 days is consistent with CDB s poverty reduction goal and gender equality policies. Water management as a pool of poverty reduction is essential to improving the health and livelihoods of the poor; ensuring wider environmental sustainability; addressing gender inequalities; and improving access to education. I believe that, given the talent and experience in this room, you will leave here with substantial and sustainable strategies that will have a significant positive impact on water utility reform in the Caribbean. I wish everyone success during the next few days and look forward to the results. Thank you 5