Small-scale Private Service Providers of Water Supply and Sanitation

Transcription

1 Small-scale Private Service Providers of Water Supply and Sanitation Mukami Kariuki and Jordan Schwartz, World Bank, Water Week 2004

2 Outline of the Presentation Review of Small-scale PSP the Policy Framework and Global Mapping Initiative State of the Sector - what we know from the information gathered to date Defining Small-scale Private Sector Providers towards a common typology Extent and Scale of SPSP Activity presence, coverage, prices, Key priorities Projects, Programs

3 What is the SPSP Initiative Objectives Identify prevalence of SPSPs - focus on private initiative, commercial operation, own-financing Establish the state of the sector what has been done where, to what extent, what can we learn Carry out a gap analysis uncover trends by region, location, type of SPSP, type of data, Define agenda for supporting the development of local PSP

4 Why focus on SPSPs? The ultimate goal - a household connection for all - depends on much more than service expansion. What to do in the meantime or in the long term? Ignoring the problem has not made it go away in some countries coverage/access has declined (Drawers of Water II, 2000). Is the best the enemy of the good? Put all the cards on the table you can only regulate it once you recognize it (minibuses in South Africa) Work with what you have - for the unserved or underserved the gaps is being filled by self provision or SPSPs. Reaching the MDGs through SPSPs?

5 Outline of the Presentation Review of Small-scale PSP the Policy Framework and Global Mapping Initiative State of the Sector - what we know from the information gathered to date Defining Small-scale Private Sector Providers towards a common typology Extent and Scale of SPSP Activity presence, coverage, prices, Key priorities Sample of Projects, Programs

6 State of the Sector knowledge base conclusions of early documents highlighting the importance of small-scale private sector providers is still relevant (G.White, 1977, D.Whittington 1988), etc available data is scanty/partial (one location or city, one type of SPSP, inadequate detail on SPSP characteristics business) 70% of documents are unpublished studies/ grey literature household/supply side, special purpose studies, anecdotal information convergence of community based (organizational); small towns/multi-village (institutional); small scale private sector providers (provider) confusion regarding terms used

7 State of the Sector areas of focus Wealth of information is provided on Barriers: standards (health, environment, technical), insecure tenure/collateral, credit facilities/lending rates, Policy advice: legal frameworks/regulatory systems/adapt standards, formalize/legalize SPSPs, tariff structure, Growing number of projects, programs with SPSP components Research/regulatory/business environment - support for recognition of existing SPSPs Transaction design/contracting/financing stimulate entry of local PSP in small town management Informed decision making requires sound and consistent data, - to justify policy decisions, enable monitoring (MDGs), facilitate benchmarking

8 Data gaps and inconsistencies 40,000 Number of SPSPs 30,000 20,000 10,000 0 AFR LAC ECA EAP SAR Mobile Distributors Point Sources Private Network Operators Regions

9 Outline of the Presentation Review of Small-scale PSP the Policy Framework and Global Mapping Initiative State of the Sector - what we know from the information gathered to date Defining Small-scale Private Sector Providers towards a common typology Extent and Scale of SPSP Activity presence, coverage, prices, Key priorities Projects, Programs

10 1 Dependent SPSP Typology/1 Piped sub-networks - extend utility network, buy water in bulk, install house connections within utility service area Independent Piped own networks develop own source and reticulate to customers through house connection and/or standpipe 2 3 Point Source/Retail Outlet -extend utility network to tap, water sold to customers by the jerrican/drum -sell water from house connection Mobile/Distributor carters, tankers - buy water from network (direct or indirect) and deliver door-todoor Point Source/ Retail Outlet - sink borehole well and install standpipe, sell water directly to customers who purchase by jerrican/drum Mobile Distributor carters, tankers - buy water from borehole or well and deliver door-to-door

11 R1 R2 R3 license 2 Public utility contract 1 Groundwater/surface water Dependent Bulk price from utility? tariff structure/pricing, Ownership of assets - laid at operators cost? Hold contract/licence? regulation by utility Quality of water at point of sale (utility) Authority to connect new customers utility or operator Resource regulation Water rights Ground water extraction Surface water extraction Economic regulation? Water tariff? Quality of service? Contract compliance? Environmental/ public health Water Quality Information/ Consumer Education 3 Consumers Piped Network Operator Point Source Mobile Distributor

12 R1 R2 2 R3 Groundwater/surface water Independent Exclusivity/Monopoly what regulation, who monitors? Develop own source groundwater abstraction permit? Licensed to sell? authority to connect new customers Quality of water testing frequency, monitoring 3 Consumers 2 1 Resource regulation Water rights Ground water extraction Surface water extraction Economic regulation? Water tariff? Quality of service? Contract compliance? Environmental/ public health Water Quality Information/ Consumer Education Piped Network Operator Point Source Mobile Distributor

13 Outline of the Presentation Review of Small-scale PSP the Policy Framework and Global Mapping Initiative State of the Sector - what we know from the information gathered to date Defining Small-scale Private Sector Providers towards a common typology Extent and Scale of SPSP Activity presence, coverage, prices, Key priorities Sample of Projects, Programs

14 Estimated SPSP Coverage Percentage of households relying on SPSPs* documented Source: SPSP presence: database * For locations documented (country, region, city)

15 Coverage Levels and SPSP Activity WSS coverage levels (rural/urban) and SPSP activity Source: Coverage data: JMP, SPSP activity: SPSP database

16 Energy and Water Supply SPSPs (countries with one or both: water, energy) Source: Coverage data: JMP, SPSP presence: database

17 SPSP Activity By Region East Asia and the Pacific (8) South Asia (5) Africa (22) Middle East and North Africa (3) Eastern Europe and Central Asia 3) Latin America and the Caribbean (12) Both Water and Energy Cambodia Indonesia Laos Philippines Bangladesh India Nepal Pakistan Sri Lanka Cote d'ivoire, Senegal, Somalia, South Africa,Tanzania, Uganda, Ethiopia, Ghana, Kenya, Mali, Mozambique Morocco Yemen Argentina Bolivia, Peru Guatemala Honduras Nicaragua Water Mongolia Thailand Vietnam Angola, Benin, Burkina Faso, Democratic Republic of Congo (A),Guinea, Mauritania, Niger, Nigeria, Sudan, Zambia Jordan Uzbekistan (A) Kyrgyztan (A), Albania (A) Colombia Ecuador, Haiti El Salvador Paraguay Energy China Zimbabwe Dominican Rep (A) No documentation available

18 Price ranges by type of provider Price of Water by Type of Service Provider $5.00 $4.50 $4.00 Public Private US$ per Cubic Meter $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 Piped Unitized $0.50 $0.00 Public Utilities Private Networks Point-source Vendors Tanker Trucks Carters Key: = Median to Average

19 Some Key Characteristics Motivation? for profit or non-profit, own use (community) or business Organisational form? -cooperatives, self help groups, company, sole proprieter, family business Legal status? license, permit, contract with utility, registration with chamber of commerce Financing savings, family, commercial bank, loan shark, member fees, customers, micro-credit At least twelve professional support and advocacy associations - providing auditing assistance, pooling investments for filling station (tankers), drill borehole, etc, self-regulation, lobbying/dialogue with utility.

20 Outline of the Presentation Review of Small-scale PSP objectives of the Policy Framework and Global Mapping Project State of the Sector - what we know from the information gathered to date Defining Small-scale Private Sector Providers towards a common typology Extent and Scale of SPSP Activity presence, coverage, prices, Key priorities going forward sample of Projects, Programs, Actions

21 What should we do more of Knowledge development to inform decision making Energy Mapping led to changes in policy and regulation in favor of smallscale providers Establish appropriate framework for the country Policy, legislation, regulations, standards Build capacity for engaging small-scale providers contract design, training, competition, guarantees Improve quality and use of information collected - household surveys often not qualified (secondary sources) Enable monitoring (MDGs), regulation or facilitation, establish benchmarks to improve service quality Much of the evidence remains anecdotal and therefore does not receive serious attention hence limited changes since 1973/1985

22 Some Trends Projects Paraguay (ongoing) World Bank Project to improve rural WSS, Aim to attract private sector managers aguateros, other Competition for small settlements, simplify bidding process/contracts; provide financing - output based aid Mongolia (planned) World Bank project to improve Urban WSS Public Operator Aim to increase efficiency - outsource tanker, kiosk operations serve 50% of population, Tariff reforms pro-poor component

23 Next Steps for PFGMI Quantify SPSP Data Global Mapping Initiative (PPIAF ) Comprehensive data sets all types? all locations? link to JMP, MDGs, database at country level More in-depth look at specific issues tariffs, prices, investment, staffing, (allow benchmarking) Qualify SPSP knowledge Policy Reform Initiative (BNWP) Support for reforms - legal status /regulatory regime, Develop and initiate capacity building/training - business environment, regulation, policy setting Assist project/program pilots investment, research, market development Strengthen collaboration with other (ADB, IDB, WSP ) regional initiatives

24 Water and Sanitation in the World s Cities, Local Action for Global Goals, UNCHS (Habitat), 2003 Mukami Kariuki Rkariuki@worldbank.org

25 Thank You This presentation is based on Phase 1 of the Policy Framework and Global Mapping Initiative. Team members: Jon Exel, Carlos Linares, Roohi Abdullah, Jordan Shwartz, Shelly Hahn and Mukami Kariuki