innovative mobile paymentand metering anjanina kramer ...bot, boot, dbo privatisation concession. 5...

1www.eapicforum.com

Innovative Mobile Payment and MeteringMechanism

Anja Nina KramerSenior Project Manager

KfWUganda

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Current engagement of German Development Cooperation (GDC) for water and sanitation in Africa

Countries with GDC engagement in water and sanitation

Programmes in Regional Cooperation

No activities or activities in water sector but notfocal area of development cooperation

Windhoek

Lusaka

Kigali

Dakar

Accra

Yaoundé

Antananarivo

Dar-es-Salaam

Nairobi

Kampala

Ouagadougou

Bamako

Cotonou

Kinshasa

Lilongwe

Maputo

Pretoria. Johannesburg

Niamey

Lusaka

Lake Chad Basin

Commission

(LCBC)

Nile Basin

Initiative

(NBI)

CICOSWAVEplus

SADC

Niger Basin

Authority

(ABN)

� Largest bilateral development partner in Africa (current portfolio approx. EUR 1.2 billion)

� Focus on urban and peri-urban areas � Aim is to reach 30 million people until

2015 (25 million with water supply, 5 million with sanitation)

EAPIC 2011, Kampala, Uganda www.eapicforum.com

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Ensuring Quality in Projects financed by GDC and enhancing Impacts in Development

Challenges Approach

Affordable drinking water for the urban low income areas

Systemic approach (decentralised low-cost technology where possible – increase of production capacity where necessary – innovative metering and payment technology: prepaid – community participation); human right; MDG

Up scaling sanitation Change of paradigm from end-of-pipe solutions towards resource-oriented wastewater systems (incl. sludge treatment and disposal) – inter-institutional and community based awareness rising approaches

Sustainability Promoting tariffs that are cost covering; investment is always accompanied with Technical Assistance; integration of climate change measures for adaptation and mitigation

Leveraging impacts Co-financing by partner countries and other development partners; harmonisation; participation of the private sector (PPP)


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Public Private Partnership in the GDC

Definition● Private partner take the risk (no contractual basis for goods and services)

● Private partner acts as an intermediate (private sector is not the target group)

Objectives of the GDC● Mobilize private capital

● Increase efficiency

Types of PPP

Private Risk

Performance Based Service Contracts

Output Based Aid (OBA)

Management Contract

Leasing

BOT, BOOT, DBO

Privatisation

Concession

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Financial Cooperation (FC) between Uganda and Germany in the Water and Sanitation Sector

● Official Cooperation between Uganda and Germany in the sector since 1988

● Access to improved urban water supply and sanitation; expected health impacts

● Focus on urban poor and protection of the Lake Victoria

● Partner: National Water and Sewerage Corporation (NWSC)

● Commitment up to date: 86 Million EUR grants of the German Government

● Collaboration with the German Technical Cooperation (regulation, capacity development, up scaling…)

● New approach:

� Support to the Ministry of Water and Environment for small towns in the North and East of Uganda


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Ongoing Investments in the Water and Sanitation Sector in Uganda

Lake Victoria Protection

● 3 waste water treatment plants (50.000 m³/d)● Rehabilitation/ construction of sewer networks● Increase of the coverage from 7 to 15%● Recovery of wetlands

● Faecal sludge management (latrines, tanks, collection, treatment, organisation and operation)

● 68 million EUR, co-financed by AfDB, EU-water facility, FC/KfW and GoU

Mutual Reliance:Water and Sanitation

Kampala

● Rehabilitation/ restructuring of the supply network

● Rehabilitation and extension of the water treatment capacities

● Access to safe water and sanitation for low income areas

● Regional knowledge management

● Mutual Reliance Initiative between AFD, EIB and FC/KfW (212 million EUR, ITF-technical assistance: 8 million EUR)

Water and Sanitation Development Facilities

● Investments in small towns in North and East Uganda through the WSDF● Joint Financing Agreement, FC/KfW: 20 Mio EUR, other donors: DANIDA, ADA, AfDB, EU


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The Situation in Low-Income Parishes in Kampala

● In Kampala 73% of the population have access to water supply with 39% served by household connections and 27% served by public water points

● High level of non revenue water 43% and low billing efficiency of only 58%

● Sewer network is connecting less then 7% of the population, 87% have access to septic tanks and pit latrines

● Around 850.000 people live in informal, fast growing settlements with a density of 400 people per hectare compared to 73 on average in Kampala

● Access to water mainly through protected springs and Public Stand Pipes (PSP) often operated by landlords or other private operators

● Low income parishes are not served by a sewer network, only on-site sanitation facilities (single pit latrines), for saving costs for emptying the pit the faecal sludge is washed out by the rain


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Low-Cost Technology in Low-Income Areasfor Safe Water Supply in Uganda

© KfW • FZ in Uganda • August 2010

Kampala – rapid urban growth and water supply

Res

ults

Char

acte

rist

ics

� Pilot scheme in 3 informal settlements in Kampala/Uganda

� 390 Public Prepaid Meters installed

� 8.200 Tokens distributed

� 10 mobile vending machines “Point of Sales”

� Extension of the network

� 24 hours O&M

� Targeted customer care and community mobilisation

� 100.000 people served with project funding (130.000 in total)

� Water price reduced by 80%,

� Water consumption increased 10 fold

� High collection rate

� Consumption patterns can be analysed

� High acceptance by target group (no vandalism)

� Lower operational cost than conventional systems (PSP)


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Low-Cost Technology in Low-Income Areasfor Safe Sanitation in Uganda

© KfW • FZ in Uganda • August 2010

Kampala – rapid urban growth and sanitation

Char

acte

rist

ics � Pilot scheme in 3 informal settlements in Kampala/Uganda

� Different models: 14 public and 35 private toilets and showers

� Decentralised and on-site faecal sludge management chain

� Design of adapted technology for faecal sludge collection

� Private and community based O&M

� Community based sanitation awareness rising measures

Res

ults

� Rents for housing und fees for toilets/showers went up� Additional private investments (e.g. tiles)� High acceptance by target group (no vandalism; frequent utilisation)

� High collection rate for water supply (pre-paid)� Potential for private O&M for the faecal sludge management was identified, but not yet implemented


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Lessons Learnt and Challenges

� Habit/willingness to pay for water as precondition

� Price reduction and comfort will increase demand

� Participation in sensitisation, planning implementation, O&M

� Integrated IEC/ social marketing campaigns

� High cost for emptying pit latrines

� Possible conflict with private vendors

� Organization: specialized unit, not service area

� Social specialists to relate to the community are key

� Social tariff benefits directly the user

� No control of end of pipe price needed, but of utilization of tokens

� Permanent follow up/ monitoring needed

� Faecal sludge management still in process

Infrastructure Community Utility

� Easy to access and monitor technology

� Easy data evaluation� Monopolistic market:

expensive spear parts and tokens

� Systems not compatible: One system for each service area

� Unavailability of land: higher number of PPM, higher O&M costs

� High water table, higher O&M costs: adapted technology


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Up Scaling Sanitation – The Unmet Gap

● Responsibilities and procedures along the entire sanitation chain and sensitisation/health promotion must be clearly defined and accepted by stakeholders (utility, city council, public health, community, private operators)

● Invest more in well prepared hygiene awareness and sanitation demand creation through cutting edge social marketing campaigns and behavioural change communication (e.g. social media, radio soap opera, impact assessment CAP)

● Risk of financial burden for utilities serving low-income areas with on-site facilities needs to be addressed by a sustainable environmentally, economically and socially suitable tariff system and structures

● Optimise low-cost technologies for investment by the utility and for O&M by service providers because of limited or non-existent financial viability and be open for new technical solutions (e.g. UgaVac)

● PPP potential through output based approaches and management contracts for decentralised and on-site faecal sludge management between the utility and private operators, e.g. APOU

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Thank you !More information:

http://www.bmz.de/en/what_we_do/issues/Environment/wasser/index.htmlwww.kfw-entwicklungsbank.de/ebank/DE_Home/Sektoren/Wasser/index.jsp

www.gtz.de/ecosanwww.susana.org


innovative mobile paymentand metering anjanina kramer ...bot, boot, dbo privatisation concession. 5...

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