model terms of reference mainstreaming small scale private water piped network providers

7/29/2019 Model Terms of Reference Mainstreaming Small Scale Private Water Piped Network Providers

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Model Terms of Reference

www.adb.org/water

Mainstreaming Small Scale

Private Water Piped NetworkProviders

May 2006

Outline For Consulting Services



A. Background

B. Objectives

C. Scope

D. MethodologyD1. Rapid Diagnostic SurveysD2. Stakeholder Consultation and Registration ProcedureD3. Financing Structure and MechanismD4. Materials and StandardsD5. Bidding Documents, SSPWP Appointment and Contract

License AwardD6. Monitoring System

E. Implementation Schedule

F. Human Resource Inputs

G. Financial Resources

H. Reports

Appendixes

1. Questionnaire for Water Utility2. Questionnaire for SSPWP Piped Water Operators3. Questionnaire for SSPWP Water Vendors4. Questionnaire for Bottled Water Suppliers5. Questionnaire for Customer Survey



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1. During 2002 and 2003, the AsianDevelopment Bank (ADB) carried out regionalstudies 1 on small-scale private water providers(SSPWPs). The objectives were to (i) provide anoverview of urban water suppliers beyond formal

water utilities, (ii) increase knowledge about thetype of services provided by SSPWPs, (iii) define theprofile of the most significant SSPWPs, and (iv)assess the main constraints on and potential ofSSPWPs. The studies were carried out in Dhaka,Bangladesh; Shanghai, People’s Republic of China(PRC); Delhi, India; Jakarta, Indonesia; Ulaanbaatar,Mongolia; Kathmandu, Nepal; Manila and Cebu,Philippines; and Ho Chi Minh City, Viet Nam.

2. The results were published by ADB in2004.2 The studies concluded that city officials, city

water utilities, and local banks should work withsmall network entrepreneurs who can bring watersupplies to the poor and disadvantagedimmediately, on an agreed interim basis until thewater utility is able to do so. These small networksshould be included in city development strategiesand formalized with licensing and exit strategiesand takeout agreements. Minimum standardsshould recognize risk and payback requirements.Enabling legal and contractual conditions shouldbe created and small operators should beintegrated into the water supply chain as much as

possible. Finally, the study concluded that ADBshould join with two or three cities to test andrefine these recommendations during 2005–2006.3

3. In the Asia and Pacific region, some 570million people still need to receive improved watersupply and about 1,820 million people still need toreceive access to improved sanitation to reach the

1 The studies were funded under ADB. 2002. Technical Assistancefor Promoting Effective Water Management Policies and Practices.Manila (TA 6031).2 Conan, Hervé. 2004. Small Piped Water Networks: Helping LocalEntrepreneurs to Invest. Water for All Series No.13, edited byCharles T. Andrews and Almud Weitz. ADB.3 Four pilot projects for small piped water networks (SPWNs), andwater supply services surveys that will facilitate up-scaling of thepilots, are currently being implemented in three cities in India(Ahmedabad), Philippines (Kabisig and Lupang Arenda in MetroManila), and Viet Nam (Ho Chi Minh City) under a technicalassistance (TA) assignment, following understandings reached withgovernment representatives, potential NGO participants, civilsociety stakeholders and small-scale water providers (SSWPs). TheTA first appeared in ADB Business Opportunities (internet edition)on 23 March 2005.

Millennium Development Goals (MDGs). 4 Toachieve the MDG targets by 2015, manydeveloping member countries (DMCs)acknowledge that it is important to reach Target10 on water and sanitation by 2010, because theeconomic impact of improved piped water supplyon health and education is significant.5 While ADB-

supported projects in some DMCs, for examplePhnom Penh in Cambodia and Dalian in the PRC,have achieved 24-hour water supply, many utilitiesin other DMCs have low levels of coverage. At fivepersons per connection, the effective water supplycoverage with piped connections in 2001 6 was10% in Dhaka, 32% in Ho Chi Minh City, 31% inJakarta, 32% in Manila, and 46% in Delhi. Peoplewho are not connected often pay water vendorsabout 15% of their household income for deliveryof water, buying water from their neighbours atinflated cost, or getting water from standpipes or

stand-posts where they only have access to waterfor a very short time each day and have difficultytransporting it to their homes.

4. The following are typical situations for thepoor and those living in peri-urban areas: (i) utilityunable to provide services because community isillegal or has no land rights; (ii) the utility is in thearea, but for political or financial reasons choosesnot to supply services or to limit them tostandpipes/stand-posts; (iii) due to limitations onsource and water availability the utility prefers to

supply more affluent areas where the financialreturn is greater/easier or there is strong politicalinfluence; (iv) the cost of a utility connection is sohigh and the terms so inflexible that poor peoplecannot afford to connect to the piped waternetwork.

5. In all cases, the core issue is gettingconnected to piped water promptly and on termsaffordable to those living in peri-urban areas,especially the poor. Once connected, people arelikely to pay only 1–2% of their household incomefor piped water. The implementation issuetherefore is to find mechanisms that will be flexible

4 UN Millennium Project. 2005. Investing in Development: APractical Plan to Achieve the Millennium Development Goals, New

York, 2005 estimate in Table 9.5 Every $1 invested in improved water supplies and basic toilets isexpected to result in $3–$34 return in terms of savings in healthcosts and more time at work and in school. Source: World HealthOrganization. 2005. Water for Life–Making It Happen. WHO.6 McIntosh, Arthur C. 2003. Asian Water Supplies–Reaching theUrban Poor. ADB and IWA.



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and fast, and will respond to the needs of thepeople. This is where the role of SSPWPs to providesmall piped water networks offers a sound interimsolution.

6. In order to address the immediate needs ofconnecting the poor to piped systems in areas

where the formal utility is unable to do so, it isproposed that provision of small piped waternetworks by SSPWPs be mainstreamed andintegrated into both public and private sector loanprojects.

7. The objectives of mainstreaming/ integrating SSPWPs into the design of public andprivate sector loans are to: (i) legitimize the

contribution and role of SSPWPs in the provision ofwater sector services, even though on a temporaryperiod-limited basis, and focus financial support ondelivery of affordable piped water supplies to thepoorest members of society; (ii) undertake a rapiddiagnostic survey and stakeholder consultation toassess the potential size of the market and thecapacity of existing SSPWPs to meet that unfulfilleddemand for services, (iii) develop appropriateregistration procedures, licenses and Memorandaof Agreement with the Municipalities and formalutilities, under which the SSPWP will operate, (iv)

identify a suitable financing mechanism, (v) identifyand agree with the relevant authorities appropriatematerials and construction standards, (vi) draftsuitable bidding documents and templates,including evaluation criteria, in order to encouragetransparent competition and to award contractlicenses, and (vii) develop an appropriatetechnical/financial performance monitoring system.

8. Many water utilities fail to provideadequate water service provision to the poor intheir areas of jurisdiction, leaving poorcommunities to fend for themselves, and withmany forced to rely on alternative service providerswho typically provide a lower quality service at fargreater cost than the formal utility. SSPWPs servicea significant proportion of the poor in many urbanareas, but are not formally recognized and receivelittle or no formal planning recognition or financial

support. Urban water supply and sanitation (WSS)projects, particularly those targeting the poor inurban and peri-urban areas, are typically preparedusing only limited socio-economic data on thetarget “market”, and invariably ignore the role andcontribution that these SSPWPs can make in theplanning and delivery of municipal services. By

mainstreaming SSPWPs and including them insector loans and rolling programs, and not asstandalone projects, their contribution can beoptimized, enabling more people to be connectedquicker and the formal utility to prepare for theultimate controlled handover to it of SSPWP smallpiped water networks (SPWNs). Urban water sectorloans should include a component that supportsSSPWPs, with part of the loan proceeds being usedto finance some or all of the capital investmentrequirements of the SPWNs. The scope of this PPTAfocuses on developing the principles, the structure

and the mechanism to access this component ofthe loan.

9. When preparing a water supply project, it isessential to have as complete information aspossible about how all people get water now:what source, what quality, what cost, whatconsumption and what reliability. By undertaking adiagnostic water service assessment, includingnon-domestic consumers, all service providers canbe identified and data obtained onthe target community as follows:

• Verification of the true service coverage, eg 24hour piped water supply, sewerage, etc.

• Justification for the registration and licensingof SSPWPs (piped network operators, watervendors, bottled water suppliers, seweragenetwork operators, septic tank operators,latrine service providers, etc.)

• Verification of consumer information versusutility records

• Tariffs from various suppliers• What suppliers generate what revenues•

Who consumes the water• Who pays what for water• Identification of potential development

partners.

10. There are five steps leading up to theappointment of the SSPWP piped network operator, followed by a sixth step to cover regulartechnical performance and financial monitoring:



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(i) ofconsumers, the water utility, SSWPs, and

to assess the size andlocation of the target market and the capacityof existing SSPWPs to meet the unfulfilleddemand.

(ii) with the target

communities, the utility, SSPWPs, localgovernment representatives, NGOs, etc., and

,including time-bound licenses and Memorandaof Agreement with the Municipalities andformal utilities leading up to ultimate transferof responsibility for service provision to them.

(iii)appropriate to the local situation.

(iv) appropriate tothe community and the lifetime of the project,and obtain approval from the relevant

authorities.(v) including

evaluation criteria and procedures,and

.(vi) covering

appropriate technical/financial performancecriteria.

11. In order to mainstream and integrate

SSPWPs into the design of public and private sectorloans, the first step is to assess the marketpotential for SSPWP service provision. Consultationwith stakeholders to identify their preferred servicedelivery options and procedures to formalize theSSPWP service providers is then undertaken, fromwhich the most appropriate financial supportmechanism is identified and the monitoring systemto control that financial support is developed.

12. ADB has prepared a Model PPTA ToR forundertaking a diagnostic city water assessment,and should be referred to for details of theimplementation methodology. The followingsections therefore only provide a brief overview ofthe process

13. A series of questionnaires will be preparedby the consultant and surveys undertaken by teammembers. An international consultant will have

overall responsibility and will personally interviewthe water utility, analyzing all results and makingrecommendations Domestic consultants will beresponsible for logistics, briefing and supervisingthe enumerators undertaking the surveys in theseparate geographic areas of the city, and will alsobe responsible for interviewing all existing SSWPs

and pre-testing the sample questionnaires for allthe surveys before use. The enumerators willundertake 5% sample consumer surveys in eachtarget community, as well as interviewing watervendors and bottled water suppliers operating ineach of their areas. Key questionnaires will beprepared as listed below and will be translated intothe local language by the domestic consultant:

14. Apart from details of individual customers

this will identify the recipients of bulk salesincluding SSWPs, sub-divisions, homeownerassociations, etc. Its focus will be on identifying thewater source and for each type of customer (non-domestic, house service connection, standpipe,etc.) the total number of connections, the volumesold per month and the revenue gained per month.It will provide information on production volumeversus consumption volume to determine NRW,and will note the extent of 24-hour piped watercoverage.

15. The questionnaire will seek essentially thesame information on every SSWP in each surveyarea as for the utility except the quality of theservice to the customer such as direct connectionor hose and drums will be determined. Themethod and frequency of payment is an importantoutput from this interview.

16. If water vendors operate in a given surveyzone, then vendors of each type (water tanker,motorized tricycle, pedaled tricycle, rickshaw,pushcart, etc.) should be interviewed by theenumerator to estimate the total number ofvendors of each type operating in that zone.Pertinent information sought includes their sourceof water, means of transport of water, number and



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type of customers, average distance transported,volume sold and revenue gained. It is important toestablish how much the vendor pays at source forthe water and to whom it is paid.

17. The enumerator will interview bottledwater suppliers in his/her survey zone and estimatetheir total number and type (for example mixedgoods shop, sole purpose bottled water shop,treatment and sale on site, deliveries of bottledwater, etc.) in that zone. The focus of the interviewis to obtain information about the source of water,type of treatment provided, volume of water soldper month, price paid and the total revenue.

18. The enumerator will obtain a 5%representative sample of all water users in his/herzone, identifying those served by the utility, bySSWPs, and surveying them in the numbersproportional to their prevalence. The focus will beon water source (consumers may get water frommore than one source), access to water, waterquality, reliability of supply, availability of supply,volume consumed per month and cost per month.

It is important to record the number of persons ineach household. This survey must include arepresentative number of non-domestic consumers,especially industrial users.

19. The international consultant will undertakean and derive basic data,including:

• Coverage % with 24 hour supply to individualhouse connection by utility

• Coverage % with individual house connection

by the utility• Coverage % including all utility domestic

connections and standpipes.• Coverage % with piped water in home (all

water providers).• Average household consumption per month by

different sources of supply• Average household cost per month by different

sources of supply.

• Total monies paid by SSWPs at source permonth.

• Average price of utility water.• Average prices of SSWP water (network

operator, vendor, water bottler).• Revenue turnover (a) utility, (b) SSWPs

(network operator, vendor, bottled water

supplier).• Volume of sales (a) utility, (b) SSWPs (network

operator, vendor, bottled water supplier).• Official NRW figure from utility.• Comparison of cost and consumption - piped

water versus non-piped water• Proportion of utility water volume sold to non-

domestic consumers• Proportion of utility water revenue derived

from non-domestic consumers• Comparison of average tariff for utility water:

domestic versus non-domestic• Proportion of all piped water where utility

maintains the reticulation

20. The rapid assessment will focus on thosenot served with piped water to assess the costs andbenefits to them of switching to a piped watersupply, as well as the feasibility of doing sothrough an SSPWP contract. Similar questionnaireswould be used for the provision of sanitationservices to the poor.

21. Following completion of the diagnosticassessment analysis, relevant key findings will bedisseminated to all stakeholders. About two weekslater, a one-day will beconvened for all stakeholders. The morning wouldbe devoted to presentation of results, analysis ofthe surveys and discussion of the findings,concluding with an overview of options for theway forward. The afternoon would be devoted todiscussion of those options, assessment of

technical option preferences and to developing aconsensus on, the preferred way forward includingthe establishment, if considered appropriate, of astakeholder task force to contribute to and monitorproject implementation. The consultation will alsoguide SSPWP support, enhance cost recovery andinstitutional development to promote servicesustainability, encourage water conservation(including reduction of NRW), and ensure that asfar as possible the urban poor are connected to



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piped water and receive improved sanitationservices within their ability to pay. The stakeholderconsultation will be facilitated by a domesticconsultant skilled in such work, or by a wellrespected and capable local person.

22. Formal recognition of the SSPWP is

required from the municipal authorities and alsothe formal utility to ensure that the area will not bere-developed or the water services network extended into it for a specified number of years inorder to provide security of tenure to the SSPWP.This will enable him to plan with confidence andprice his services to obtain an appropriate returnon capital during the period of tenure. This couldsimply be achieved, at least initially, through asimple registration process, but a far superior

would be to issue a licensedetailing the area of license jurisdiction, the

obligations of each party, reporting requirementsand their frequency, periodic audits, remedies forfailure to conform to the license, an appealsprocess and appointment of an independentombudsman, the license duration, periodic licensereviews (if appropriate), exit strategies includingultimately the transfer of responsibility for serviceprovision to the formal utility or extension optionsat the conclusion of the license period. At the endof the license term the assets will be transferred tothe formal utility. A reasonable license fee could becharged to cover administration costs. The terms of

the license would also have to be approved by theformal utility, as certain sole service rights wouldbe devolved to the SSPWP through the license thatwould prohibit expansion of the formal utilitynetwork into the license area within the term ofthe license. It is therefore recommended that aseparate Memorandum of Agreement should bedrawn up between the SSPWP and the formalutility to cover such issues as: appropriate technicalstandards and materials (typically less onerous thanthose imposed on the formal utility and reflectinglocal conditions), provision of a bulk water supplyif appropriate (if licensed by the Municipality, theSSPWP would have legal status and so couldbecome a legitimate bulk consumer of the formalutility) and covering maximum/minimum dailyvolumes, tariff, metering details, remedial actionsin the event of supply deficiencies, periodic reviews(if appropriate), etc. The municipal license and theutility agreement would also safeguard theposition of the SSPWP in the event of a regulatorybody being subsequently set up to control the

sector or if there was intervention by other relevantsectoral organisations.

23. The license should be a relatively simpledocument, with bureaucracy kept to a minimumsince to require the SSPWP to prepare numerousreports, provide extensive data records, etc., would

increase service provision costs (and hence thetariff) and potentially deter bidders from bidding toprovide the service. The local consultant, withsupport from the international consultant, willdevelop an appropriate license format and aMemorandum of Understanding acceptable to theMunicipality and the formal utility, followingconsultation with existing SSPWPs and potentialbidders to ensure that the terms are fair andreasonable and would not unduly discouragepotential bidders from submitting bids.

24. This is the key activity to be undertaken bythe consultant, as financing of the SSPWP is criticalto ensure tariffs can be kept as low as possible soeveryone can be connected to the piped system.Because of their currently informal nature, SSPWPaccess to local capital markets and bank loans isvirtually non-existent, with reliance having to beplaced on borrowing money from local money-lenders or close colleagues and relatives of theSSPWP, often at extortionate rates. To assist the

SSPWP and to provide increased financial securitythe consultant will investigate various options todetermine and develop the most appropriate

for thedisbursement, repayment (where appropriate) andmonitoring of funds under the loan. Two of theoptions to be considered are to use part of theloan to lend directly to SSPWPs, or to establish arevolving fund.

25. The consultant will investigate theimplications and mechanisms for designating acomponent of the loan for direct lending to theSSPWP. Special attention will be given to risk analysis, appropriate service and interest rates (incomparison with local informal lending rates,financing costs and service affordability, etc.),disbursement and repayment mechanisms(including any staging of disbursements), term ofthe loan, and loan monitoring/reportingprocedures. Existing loan models will be evaluatedduring this process to identify key features that will



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promote the objectives of the PPTA. As part of therisk analysis the consultant will makerecommendations on the proportion that the loanfunds should represent in comparison with thetotal capital borrowing requirements of theSSPWPs in order to encourage bidders to developalternative or matching funding mechanisms,

minimise exposure of the loan funds to potentiallosses on specific schemes, and also to enablemore SSPWP schemes to be supported financially.

26. An alternative option to be investigated isto use a component of the loan to establish ineach region or city a revolving fund,, supplementedby other funding sources if deemed appropriate, tofinance all or part of the capital expenditure of theSSPWP and perhaps with an element of start-upcapital for initial operation and maintenance(O&M) costs until revenue streams are established.

To reduce risk to the revolving fund and topromote more SSPWP schemes, each SSPWP couldbe required to source a proportion of its fundingrequirements from external sources, eg throughbank loans or the issue of bonds, to encourage thedevelopment of local financial markets. For eachcase, the financing mechanism must beappropriate for the local situation. The revolvingfund would be administered by an appropriateindependent organization approved by ADB in thecountry concerned, for example an experiencedethical bank, the national Chamber of Commerce,

etc. The revolving fund would have a broadercoverage than direct loans to individual SSPWPs asfunds disbursed from therevolving fund would berepaid in due course for further disbursement toother SSPWPs. The fund would therefore providebroader opportunities for SSPWP support andpotentially could cover a larger proportion of thecity and the unserved population. The consultantwill make recommendations on the term of theloan and hence the winding up date of therevolving fund.

27. A local financial consultant, with supportfrom the international consultant, will evaluatedifferent formats for the various loan options,recommend an appropriate mix of funding sourcesbased on local conditions, develop appropriatedisbursement and repayment modalities andprocedures, and reach agreement with ADB andother donors on fund operation and utilizationperformance monitoring / reporting.

28. The local consultant will propose materialsand construction standards appropriate to thecommunity and the lifetime of the project fordiscussion and agreement with the formal utilityfor incorporation into the Memorandum of

Agreement. For instance, as the excavation andburial of pipelines is expensive, may involve theneed to obtain excavation permits, and increasesthe difficulty to detect leaks, it might be moreappropriate to simply lay pipes on the groundsurface and secure them. At the end of the licenseperiod they would be abandoned as the formalutility extended its reticulation network into thearea in conformity with its own standards. On theother hand, reservoirs and pumping stations couldbe retained for service after the license has expired,requiring the SSPWP to construct them to formal

utility standards.

29. One week prior to the issue of biddocuments the local consultant will prepare andissue contract adverts for the local press and fordistribution within the communities to be served.30. The consultant will develop an appropriate

. It is anticipated thatthis would require each SSPWP bidder to propose a

business plan and a financing plan as part of hisbid. The outline procedure for bidding and funddisbursement would therefore be as follows:

• Prospective SSPWP bidders develop a businesscase for their system and formalise it in abusiness plan detailing population covered,system details, water source, capex, opex,human resource requirements, liaison with theformal utility, indicative tariff (to cover O&Mcosts, debt repayment and financing servicecharges), revenue projections, financing plan,etc. Financing plans would take into accountthe different funding sources and interestcharges, etc.

• Business plans are evaluated by the fundadministrators and the licensor (theMunicipality) to identify the most attractiveand cost-effective bids (evaluation criteriacould include cost / household supplied, tariffaffordability, proposed repayment period, etc.)or those that met more subjective social policy



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criteria such as number of poor householdsthat would benefit from the scheme in aparticularly deprived area.

• Prior to signing the loan, agreement would bereached on the disbursement schedule, therepayment schedule and the conditions thatwould trigger each repayment (repayments

could be linked to the achievement of technicaland financial targets, such as reaching arevenue collection efficiency threshold, as timealone is an inappropriate criterion forrepayment determination since prematurerepayment could jeopardise the viability of thescheme).

• Funds could be provided in tranches to thebidder as physical construction targets in thebid program are achieved and matching fundsare demonstrated to be in place. Monitoring ofphysical progress would be required to achieve

this, preferably by an independent person ororganisation appointed by ADB or the fundadministrators.

• Repayments returned to the revolving fund, ifthis is the financing option selected, wouldfinance other schemes or extend/up-gradeexisting ones.

31. The local consultant, with support fromthe international consultant, will

and templates that standardize thedetails required and the bid presentation format so

that bidders can clearly understand what needs tobe included in their bids. Bidding documentsshould be short, simple and clear, be in bothEnglish and the local language, and must clearlystate what is expected of the successful bidder,how his bid will be evaluated (the evaluationcriteria, the weight given to each, etc.), andprovide details of the contract license awardprocess. The municipality would then

, modified if necessary to reflect bid details,to the successful bidder who would then sign theloan fund agreement. The municipality would not

sign a contract with the successful bidder. Bid

bonds and performance bonds, etc., are notconsidered to be appropriate.

32. The local/international consultants willmake recommendations on how the EvaluationCommittee should be constituted, as well as itsmembership. Terms of Reference, including the

evaluation and marking system as well as reportingrequirements, should also be prepared by thelocal/international consultants for the EvaluationCommittee.

33. Independent monitoring of the technicaland financial performance of the SSPWP to ensurecompliance during the term of the license isabsolutely essential. In the absence of a formalregulator it is suggested that an independent

consultant should be appointed to undertake thismonitoring and periodic reporting function, withfees and costs met either through the license fee or,alternatively, from a separate budget within theloan fund. The independent consultant would alsoreport regularly direct to ADB and other loan funddonors on utilization and administration of thefund.

34. The TA local consultant, with support fromthe international consultant, will design amonitoring and reporting system to monitor the

performance of the SSPWP as well as to safeguardutilisation of the loan fund and other sources offinance used by the SSPWP. The system should becapable of distilling SSPWP performance as well asimprovements to service provision in thecommunity through the derivation of simple keyperformance indicators (KPIs) without the need forthe collection, recording and analysis of extensivedatasets which would only serve to increasebureaucracy and costs. The monitoring systemshould include the following KPIs, variables dataand suggested indicative KPI threshold values(monthly reports should cover items marked *,with those marked ** only reported bi-annually:



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Coverage** Population servedPopulation in community

>90% (ideally 100%)

Water Quality* Failures only of common tests: chlorine residual, appearance(turbidity and colour), taste/odour

<2% failures

Continuity* Hours of supply at highest point in system (average/month) >18 hours (ideally 24 hours)

Pressure* Pressure at highest point in system (average/month) > 5 m

Non Revenue Water* Water Supplied (m3/month)Water Consumed (m3/month)

<20%

Revenue CollectionEfficiency*

Revenue billed ($/month)Revenue Collected ($/month)

>90%

Operational FinancialPerformance**

Staff, chemicals, power, materials, and mobile plant Costs As calculated (capital repaymentand debt servicing estimated fromthis and revenue collected)

Customer satisfaction** Complaints/monthPopulation served

<2%

Surveys of utility, consumers andSSWPs

1.0 months

Clarifications and preparation ofresults summary

0.5 months

Analysis of results and preparewater assessment report

0.5 months

Stakeholder consultation and reportof findings

1.0 months

Development of registration/licenseprocedures

1.0 months

Develop a financing structure and

mechanism (during licensedevelopment period)

1.0 months

Prepare bidding documents 0.5 monthsBidding period, bid evaluations andcontract license award

1.5 months

Develop monitoring system (duringbidding period)

(0.5 months)

Enumerators (or students) 1 personmonth/community

Domestic water supply surveyconsultants

2 personmonths/community

Domestic financial consultant 1 person monthDomestic water supplyconsultant

2 person months

International consultant 4 person monthsStakeholder consultationfacilitator (inc. preparation)

1 personweek/community

Enumerators, consultants, facilitator $Local transport $Office facilities $Stakeholder consultation $Reports / communications $

(DomesticConsultants)

(InternationalConsultant)

This two- part report will be due for completionnot later than two months after the start of theassignment.

This report will be due not later than three monthsafter the start of the assignment.



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The license and MoA will be due not later than

four months after the start of the assignment.

This report will be due not later than four monthsafter the start of the assignment.

Bidding documents will be due not later than 4.5months after the start of the assignment.

This report will be due not later than six monthsafter the start of the assignment.

The monitoring system will be due for completionnot later than five months after the start of theassignment.

1. Questionnaire for Water Utility (InternationalConsultant)

2. Questionnaire for SSPWP Piped WaterOperators (Domestic Consultants)

3. Questionnaire for SSPWP Water Vendors(Enumerators)

4. Questionnaire for Bottled Water Supplier(Enumerators)

5. Questionnaire for Consumer Survey(Enumerators)



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Name of Water Utility Date

Name of Person who answered this questionnaire Position

1. Name of City

2. Population in City 3. Population in Utility Service Area

4. Population Served by Utility (Direct) 5. Population Served by Utility (Bulk Supply / Indirect)

6. Population Served by House Connection 7. Population Served by Shared Connection

8. Population Served by Standpipe or Community Tank 9. Population Served by Utility Tanker

10. Number of House Connection s

a. Metered b. Meter Not Working

c. Not Metered

11. Number of Shared Connections

a.Metered

b. Meter Not Working

c. Not Metered

12. Number of Standpipes


c. Not Metered

14. Number of Community Tanks


c. Not Metered

13. Number of Utility Tankers

a. Capacity of tankers

15. Number of Bulk Connection s


c. Not Meter ed

16. Number of Connections to Industry/ Other


c. Not Metered

17. Number of House Connections with 24 Hour Service 18. Percentage of Service Area with 24 Hour Supply

19. Number of Sources of Treated Water for Piped Supply

20. Production sources metered and working

Appendix 1



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21. NRW for Utility %

a. Leakage % b. Mis-Metering % c. Illegal Connection % d. Illegal Sale of Water %

22. Number of Meters replaced in last 12 months 23. Total Consumption by House Connection Per Month m 3

24.

Total Consumption by Shared Connections Per Month m 3 25.

Total Consumption by Standpipe or Community Tank per Month m 3

26. Total Consumption by Utility Tanker Per Month m 3 27. Total Consumption by Bulk Supply to Small Private Piped Water Operators/Vendors Per Month m 3

28. Total Consumption for Municipal Use Per Month m 3 29. Total Consumption by Industry/ Other Per Month m 3

30. Total Money Billed Per Month for House Connections *

31. Total Money Billed Per Month for Shared Connections *

32. Total Money Billed Per Month for Standpipes or Community Tanks *

33. Total Money Billed Per Month for Utility Tanker Services *

34. Total Money Billed Per Month for Bulk Supply to Small Private Piped Water Operators/Vendors *

35. Total Money Billed Per Month for Industry/Other *

36. Number of new connections installed in last 12 months (domestic)

37. Number of new connections installed in last 12 months (non- domestic)

38. New connection fee and terms of payment (domestic)*

39. Accounts receivable in equivalent months of billing

40. Number of people employed by utility.

*Please indicate in local currency.

NRW = Non-revenue Water = Production - Consumption%

Production

Consultant to independently and randomly check domestic meters (40), industrial meters(10), and accounts on computer (100).

Name of Consultant Interviewer



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Qu e s t i o n n a i r e

for SSWP - Piped Water Netw ork Operator s

Name of Company/Organization if any Date


1. Location of Piped System 2. Total Population Served by the System

3. Population Served by House Connections 4. Population Served by Shared Connections

5. Population Served by Standpipe or Community Tank 6. Source of Water

7. Cost of Water at Source $/m 3 8. Volume of Water Received at Source m 3

9. NRW % 10. Number of House Connections

11. Number of Shared Connections 12. Number of Standpipes and Community Tanks

13. Population Receiving 24 Hour Supply by House Connection 14. Consumption Per Month from House Connections m 3

15. Consumption Per Month from Shared Connections m 3 16. Consumption Per Month from Standpipes or Community Tanks m 3

17. Money Received Per Month from House Connections * 18. Money Received Per Month from Shared Connections*

19. Money Received Per Month from Standpipes or Community Tanks *

20. Water Treatment Provided by the System

22. License or Agreement with Local Authority 21. How Long in Business

□ Yes

□ No

* Please indicate in local currency.

NRW = Non-revenue Water = Production - Consumption

%Production


Appendix 2



16


for SSPWP - Water Vendors



1. Location of vendor 2. Population served by vendor

3. Population served by tanker 4. Population served by pushcart/tricycle

5. Businesses served by vendor 6. Source of water

7. Cost of water at source* 8. Average distance for delivery of water (km)

9. Volume of water delivered per day by tanker m 3 10. Volume of water delivered per day by pushcart / tricycle m 3

11. Revenue received per day for water delivered by tanker * 12. Revenue received per day for water delivered by pushcart/tricycle *

13. Number of tankers in your business 14. Number of pushcarts / tricycles in your business

15. Fuel cost per day for power cycles * 16. Fuel cost per day for tankers *

17. Approval of local government

□ Yes

□ No

18. License fee to pay *

19. How long in business 20. Average capacity of tanker m 3

21. Average capacity of full load in pushcart or tricycle (liters)


Name of Enumerator

Appendix 3



17


for SSPWP - Bott led Wat er Suppl iers



1. Location 2. Source of Water

3. Cost of Water at Source 4. Treatment Provided On-Site

5. Volume of water sold per day 6.. Revenue in one day*

7. Proportion sold to business 8. Average household volume purchased per day

9. Average household cost per day 10. License fees to Local Government

11. How long in business 12. Smallest volume sold /cost

13. Largest volume sold / cost 14. Business growing or static

15. Delivery services / distance 16. Approx cost loading % for delivery*

17. Costs per month in power, chemicals, rent, staff etc*


Name of Enumerator

Appendix 4



18


for Water Consumer

Name of Person who answered this questionnaire Date

2. Who supplies you with water

□ Water Utility □ Water Vendor

1. Location

□ Small Private Piped Water □ Own Well

3. What is the source of water 4. Is the water treated

5. How much water do you use per month /per day m 3 (last two bills)*

6. How much does this cost you per month / per day (last two bills)*

7. How many people in your household 8. How much bottled water do you use per day (liters)

10. How far do you go to access water 9. How much does the bottled water cost you per day *

□ Home

□ < 100m

□ > 100m

11. How is the water quality 12. How is the service from the utility

□ Good

□ Fair

□ Poor

□ Good

□ Fair

□ Poor

13. For how many hours per day is water available 14. Is the supply reliable

15. How is the service of the Small Private Piped Water Operator 16. How is the service of the water vendor

□ Good

□ Fair

□ Poor

□ Good

□ Fair

□ Poor

17. If you get water from the utility is the supply metered and working 18. If you don’t have piped water then when do you expect it

19. What is your monthly power bill 20. Are there pipe leaks in your street

21. Are there water leaks in your home


Name of Enumerator

Appendix 5



Outline TOR for incorporation in the PPTA

1

PROJECT PREPARATION TECHNICAL ASSISTANCE

OUTLINE TERMS OF REFERENCE FOR CONSULTING SERVICESTO MAINSTREAM SMALL SCALE PRIVATE WATER PIPED NETWORK PROVIDERS

A. Background

1. In 2004 the Asian Development Bank (ADB) published the results of regional studies onsmall-scale private water providers (SSPWPs). The studies concluded that city officials, waterutilities, and local banks should work with small network entrepreneurs to bring water supplies tothe poor and disadvantaged immediately on an agreed interim basis until the water utility wasable to do so. The study also recommended that small networks should be included in citydevelopment strategies and formalized with licensing and exit strategies and takeoutagreements, with minimum standards set to recognise risk and payback requirements.

2. In the Asia and Pacific region, some 570 million people still need to receive improvedwater supply and about 1,820 million people still need to receive access to improved sanitationto reach the Millennium Development Goals (MDGs). People who are not connected often paywater vendors about 15% of their household income for delivery of water, buying water from

their neighbours at inflated cost, or getting water from standpipes or stand-posts where accessto water may only be for a very short time each day and there is difficulty transporting it home.The core issue is getting connected to piped water promptly and on terms affordable to thoseliving in urban and peri-urban areas, especially the poor. Once connected, people are likely topay only 1–2% of their household income for piped water.

3. In order to address the immediate needs of connecting the poor to piped systems inareas where the formal utility is unable to do so, it is proposed that provision of small pipedwater networks by SSPWPs be mainstreamed and integrated into both public and private sectorloan projects.

B. Objectives

4. The objectives of mainstreaming/integrating SSPWPs into the design of public andprivate sector loans are to: (i) legitimize the contribution and role of SSPWPs in the provision ofwater sector services, even though on a temporary period-limited basis, and focus financialsupport on delivery of affordable piped water supplies to the poorest members of society; (ii)undertake a rapid diagnostic survey and stakeholder consultation to assess the potential size ofthe market and the capacity of existing SSPWPs to meet that unfulfilled demand for services,(iii) develop appropriate registration procedures, licenses and Memoranda of Agreement withthe Municipalities and formal utilities, under which the SSPWP will operate, (iv) identify asuitable financing mechanism, (v) identify and agree with the relevant authorities appropriatematerials and construction standards, (vi) draft suitable bidding documents and templates,including evaluation criteria, in order to encourage transparent competition and to awardcontract licenses, and (vii) develop an appropriate technical/financial performance monitoringsystem.




2

C. Scope

5. Many water utilities fail to provide adequate water service provision to the poor, withmany forced to rely on alternative service providers who typically provide a lower quality serviceat far greater cost than the formal utility. SSPWPs service a significant proportion of the poor inmany urban areas, but are not formally recognized and receive little or no formal planningrecognition or financial support. Urban water supply and sanitation (WSS) projects invariably

ignore the role and contribution that these SSPWPs can make in the planning and delivery ofmunicipal services. By mainstreaming SSPWPs and including them in sector loans and rollingprograms, their contribution can be optimized, enabling more people to be connected quicker,and the formal utility to prepare for the ultimate controlled handover to it of SSPWP small pipedwater networks (SPWNs). Urban water sector loans should include a component that supportsSSPWPs, with part of the loan proceeds used to finance some or all of the capital investmentrequirements.

6. There are five steps leading up to the appointment of the SSPWP piped networkoperator, followed by a sixth step to cover regular technical performance and financialmonitoring:

(i) Undertake rapid diagnostic surveys of consumers, the water utility, SSWPs,and analyze the results to assess the size and location of the target market and

the capacity of existing SSPWPs to meet the unfulfilled demand.

(ii) Hold stakeholder consultation with the target communities, the utility,SSPWPs, local government representatives, NGOs, etc., and developappropriate registration procedures, including time-bound licenses andMemoranda of Agreement with the Municipalities and formal utilities leading up toultimate transfer of responsibility for service provision to them.

(iii) Develop a financing structure and mechanism appropriate to the localsituation.

(iv) Identify materials and standards appropriate to the community and the lifetimeof the project, and obtain approval from the relevant authorities.

(v) Prepare bidding documents including evaluation criteria and procedures,

SSPWP appointment process and award contract license.

(vi) Develop monitoring system covering appropriate technical/financialperformance criteria.

D. Methodology

7. Rapid diagnostic surveys will be undertaken after obtaining formal permission from thelocal government. Enumerators will undertake 5% sample surveys of water consumers in thetarget areas within the city, and will also survey all bottled water suppliers and water vendorsoperating in their zone. Domestic consultants will supervise the enumerator surveys, andthemselves survey all the small piped water operators throughout the city. They will then




3

summarize the results of all the surveys and organize a stakeholder consultation. Aninternational consultant will survey the water utility, and analyze and summarise the results ofthe surveys, including the size of the market and the capacity of SSPWPs to meet theunsatisfied demand. A domestic facilitator will convene a one-day stakeholder consultation todiscuss the findings of the water assessment, identify the preferred option for the way forward toprovide piped water supplies to the community and, if considered appropriate, formulate a civilsociety task force to monitor scheme implementation. Sample questionnaires for all the surveys

will be pre-tested by the domestic consultants before use.

8. Licensing will provide formal recognition of the SSPWP by the municipal authorities andalso the formal utility to ensure that the area will not be re-developed or the water servicesnetwork extended into it for a specified number of years. This will provide security of tenure tothe SSPWP and enable him to plan with confidence and price his services to obtain anappropriate return on capital during the period of tenure. At the end of the license term theassets will be transferred to the formal utility. The license will detail the area of license

jurisdiction, the obligations of each party, reporting requirements and their frequency, periodicaudits, remedies for failure to conform to the license, an appeals process and appointment of anindependent ombudsman, the license duration, periodic license reviews (if appropriate), exitstrategies including ultimately the transfer of responsibility for service provision to the formalutility or extension options at the conclusion of the license period. A reasonable license feecould be charged to cover administration costs. The terms of the license would also have to be

approved by the formal utility, as certain sole service rights would be devolved to the SSPWPthrough the license, prohibiting expansion of the formal utility network into the license areawithin the term of the license. A separate Memorandum of Agreement should be drawn upbetween the SSPWP and the formal utility to cover such issues as: appropriate technicalstandards and materials (typically less onerous than those imposed on the formal utility andreflecting local conditions), provision of a bulk water supply if appropriate (if licensed by theMunicipality, the SSPWP would have legal status and could become a legitimate bulk consumerof the formal utility) and covering maximum/minimum daily volumes, tariff, metering details,remedial actions in the event of supply deficiencies, periodic reviews (if appropriate), etc. Thelicense would be a relatively simple document, with bureaucracy kept to a minimum.

9. Development of an appropriate financing structure and mechanisms is the keyactivity to be undertaken by the consultant, as financing of the SSPWP is critical to ensure tariffscan be kept as low as possible so everyone can be connected to the piped system. Because oftheir currently informal nature, SSPWP access to local capital markets and bank loans is

virtually non-existent, with reliance placed on borrowing money from local money-lenders atextortionate rates. To provide increased financial security to the SSPWP, the consultant willinvestigate various options for an appropriate financing structure and mechanisms for thedisbursement, repayment and monitoring of funds under the loan. Two options to be consideredare to use part of the loan to lend directly to SSPWPs, or to establish a revolving fund. Arevolving fund would provide broader opportunities for SSPWP support and potentially couldcover a larger proportion of the city and the unserved population than direct loans to individualSSPWPs as funds repaid to the revolving fund could be re-disbursed to other SSPWPs. Specialattention will be given to risk analysis, appropriate service and interest rates (in comparison withlocal informal lending rates, financing costs and service affordability, etc.), disbursement andrepayment mechanisms (including any staging), term of the loan, and loan monitoring/reportingprocedures. Existing loan models will be evaluated during this process to identify key featuresthat will promote the objectives of the PPTA. As part of the risk analysis the consultant will make




4

recommendations on the proportion that the loan funds should represent in comparison with thetotal capital borrowing requirements of the SSPWPs in order to encourage bidders to developalternative or matching funding mechanisms, minimise exposure of the loan funds to potentiallosses on specific schemes, and also to enable more SSPWP schemes to be supportedfinancially. A domestic financial consultant will develop the loan fund structure and modalities.

10. The consultant will develop an appropriate SSPWP appointment process. It is

envisaged that each SSPWP bidder would propose a business plan and a financing plan as partof his bid. Evaluation of the plans using evaluation criteria such as cost / household supplied,tariff affordability, proposed repayment period, etc., will identify the most attractive and cost-effective bid. Prior to signing the loan, agreement would be reached on the disbursementschedule, the repayment schedule and the specific conditions that would trigger eachrepayment. Loan funds would be provided in tranches to the bidder as physical constructiontargets in his bid program are achieved and matching funds are demonstrated to be in place.

11. Bidding documents and templates will be developed that standardize the detailsrequired and the bid presentation format so that bidders can clearly understand what needs tobe included in their bids. Bidding documents should be short, simple and clear, be in bothEnglish and the local language, and must clearly state what is expected of the successfulbidder, how his bid will be evaluated (the evaluation criteria, the weight given to each, etc.), andprovide details of the contract license award process. The municipality would then award the

license, modified if necessary to reflect bid details, to the successful bidder who would thensign the loan fund agreement. The municipality would not sign a contract with the successfulbidder. Bid bonds and performance bonds, etc., are not considered to be appropriate. Prior tothe issue of bid documents contract adverts would be placed in the local press and distributedwithin the communities to be served.

12. Independent monitoring of the technical and financial performance of the SSPWPduring the term of the license is absolutely essential. It is suggested that an independentconsultant should be appointed to undertake this monitoring and periodic reporting function, withfees and costs met either through the license fee or from a separate budget within the loan fund.The independent consultant would also report directly to ADB and other loan fund donors onutilisation and administration of the fund. The monitoring system should be capable of distillingSSPWP performance as well as improvements to service provision in the community throughthe derivation of key performance indicators (KPIs) without the need for the collection, recordingand analysis of extensive datasets which would only serve to increase bureaucracy and costs.

Regular reports should be prepared as part of the monitoring system process.

E. Implementation Schedule (total 6 months)

Surveys of utility, consumers and SSWPs 1.0 monthsClarifications and preparation of results summary 0.5 monthsAnalysis of results and prepare water assessment report 0.5 monthsStakeholder consultation and report of findings 1.0 monthsDevelopment of registration/license procedures 1.0 monthsDevelop a financing structure and mechanism (during license 1.0 months

development period)Prepare bidding documents 0.5 monthsBidding period, bid evaluations and contract license award 1.5 months




5

Develop monitoring system (during bidding period) (0.5 months)

F. Inputs

Enumerators (or students) 1 person month/communityDomestic water supply survey consultants 2 person months/community

Domestic financial consultant 1 person monthDomestic water supply consultant 2 person monthsInternational consultant 4 person monthsStakeholder consultation facilitator (inc. preparation) 1 person week/community

G. Outputs

1. Water Assessment ReportPart A: Summary of Results of SurveysPart B: Analysis of Results

2. Stakeholder Consultation Report(i) Discussion of Water Assessment Findings

(ii) Preferred Small Piped Water Network Option(iii) Civil Society Task Force

(iv) Participants

3. SSPWP License and Memorandum of Understanding

4. Report on Loan Fund Structure, Modalities, Operational and ReportingProcedures for SSPWP Water Supply / Sanitation SchemesPart A: Fund Structure and ModalitiesPart B: Fund OperationPart C: Monitoring and Reporting

5. Bidding Documents for SSPWP Water Supply / Sanitation Schemes

6. Evaluation Report on SSPWP Bids Part A: Summary of Bids ReceivedPart B: Bid Evaluations and RankingPart C: Contract Award Recommendations

7. Monitoring System for SSPWP Contracts



Detailed TOR for the Consultants

1

PROJECT PREPARATION TECHNICAL ASSISTANCE

TERMS OF REFERENCE FOR CONSULTING SERVICESTO MAINSTREAM SMALL SCALE PRIVATE PIPED WATER NETWORK PROVIDERS

CONTENTS

A. Background

B. Objectives

C. Scope

D. Methodology

D1. Rapid Diagnostic SurveysD2. Stakeholder Consultation and Registration Procedure

D3. Financing Structure and MechanismD4. Materials and StandardsD5. Bidding Documents, SSPWP Appointment and Contract License AwardD6. Monitoring System




H. Reports

Appendixes

1. Questionnaire for Water Utility (International Consultant)2. Questionnaire for Small Private Piped Water Operators (Domestic Consultants)3. Questionnaire for Water Vendors (Students)4. Questionnaire for Bottled Water Supplier (Students)5. Questionnaire for Consumer Survey (Students)



2 Detailed TOR for the Consultants

TERMS OF REFERENCE FOR CONSULTING SERVICESTO MAINSTREAM SMALL SCALE PRIVATE PIPED WATER NETWORK PROVIDERS

A. Background

1. During 2002 and 2003, the Asian Development Bank (ADB) carried out regional studies1

on small-scale private water providers (SSPWPs). The objectives were to (i) provide anoverview of urban water suppliers beyond formal water utilities, (ii) increase knowledge aboutthe type of services provided by SSPWPs, (iii) define the profile of the most significantSSPWPs, and (iv) assess the main constraints on and potential of SSPWPs. The studies werecarried out in Dhaka, Bangladesh; Shanghai, People’s Republic of China (PRC); Delhi, India;Jakarta, Indonesia; Ulaanbaatar, Mongolia; Kathmandu, Nepal; Manila and Cebu, Philippines;and Ho Chi Minh City, Viet Nam.

2. The results were published by ADB in 2004.2 The studies concluded that city officials,city water utilities, and local banks should work with small network entrepreneurs who can bringwater supplies to the poor and disadvantaged immediately, on an agreed interim basis until thewater utility is able to do so. These small networks should be included in city developmentstrategies and formalized with licensing and exit strategies and takeout agreements. Minimumstandards should recognize risk and payback requirements. Enabling legal and contractualconditions should be created and small operators should be integrated into the water supplychain as much as possible. Finally, the study concluded that ADB should join with two or threecities to test and refine these recommendations during 2005–20063.

3. In the Asia and Pacific region, some 570 million people still need to receive improvedwater supply and about 1,820 million people still need to receive access to improved sanitationto reach the Millennium Development Goals (MDGs).4 To achieve the MDG targets by 2015,many developing member countries (DMCs) acknowledge that it is important to reach Target 10on water and sanitation by 2010, because the economic impact of improved piped water supplyon health and education is significant.5 While ADB-supported projects in some DMCs, forexample Phnom Penh in Cambodia and Dalian in the PRC, have achieved 24-hour watersupply, many utilities in other DMCs have low levels of coverage. At five persons perconnection, the effective water supply coverage with piped connections in 20016 was 10% in

1

The studies were funded under ADB. 2002. Technical Assistance for Promoting Effective Water Management Policies and Practices . Manila (TA 6031).2

Conan, Hervé. 2004. Small Piped Water Networks: Helping Local Entrepreneurs to Invest. Water for All Series No.13, edited by Charles T. Andrews and Almud Weitz. ADB.3

Four pilot projects for small piped water networks (SPWNs), and water supply services surveys that willfacilitate up-scaling of the pilots, are currently being implemented in three cities in India (Ahmedabad),Philippines (Kabisig and Lupang Arenda in Metro Manila), and Viet Nam (Ho Chi Minh City) under atechnical assistance (TA) assignment, following understandings reached with governmentrepresentatives, potential NGO participants, civil society stakeholders and small-scale water providers(SSWPs). The TA first appeared in ADB Business Opportunities (internet edition) on 23 March 2005.4

UN Millennium Project. 2005. Investing in Development: A Practical Plan to Achieve the Millennium Development Goals, New York, 2005 estimate in Table 9.5

Every $1 invested in improved water supplies and basic toilets is expected to result in $3–$34 return interms of savings in health costs and more time at work and in school. Source: World Health Organization.2005. Water for Life–Making It Happen . WHO.6 McIntosh, Arthur C. 2003. Asian Water Supplies–Reaching the Urban Poor . ADB and IWA.




3

Dhaka, 32% in Ho Chi Minh City, 31% in Jakarta, 32% in Manila, and 46% in Delhi. People whoare not connected often pay water vendors about 15% of their household income for delivery ofwater, buying water from their neighbours at inflated cost, or getting water from standpipes orstand-posts where they only have access to water for a very short time each day and havedifficulty transporting it to their homes.

4. The following are typical situations for the poor and those living in peri-urban areas: (i)

utility unable to provide services because community is illegal or has no land rights; (ii) the utilityis in the area, but for political or financial reasons chooses not to supply services or to limit themto standpipes/stand-posts; (iii) due to limitations on source and water availability the utilityprefers to supply more affluent areas where the financial return is greater/easier or there isstrong political influence; (iv) the cost of a utility connection is so high and the terms so inflexiblethat poor people cannot afford to connect to the piped water network.

5. In all cases, the core issue is getting connected to piped water promptly and on termsaffordable to those living in peri-urban areas, especially the poor. Once connected, people arelikely to pay only 1–2% of their household income for piped water. The implementation issuetherefore is to find mechanisms that will be flexible and fast, and will respond to the needs of thepeople. This is where the role of SSPWPs to provide small piped water networks offers a soundinterim solution.

6. In order to address the immediate needs of connecting the poor to piped systems inareas where the formal utility is unable to do so, it is proposed that provision of small pipedwater networks by SSPWPs be mainstreamed and integrated into both public and private sectorloan projects.

B. Objectives

7. The objectives of mainstreaming/integrating SSPWPs into the design of public andprivate sector loans are to: (i) legitimize the contribution and role of SSPWPs in the provision ofwater sector services, even though on a temporary period-limited basis, and focus financialsupport on delivery of affordable piped water supplies to the poorest members of society; (ii)undertake a rapid diagnostic survey and stakeholder consultation to assess the potential size ofthe market and the capacity of existing SSPWPs to meet that unfulfilled demand for services,(iii) develop appropriate registration procedures, licenses and Memoranda of Agreement with

the Municipalities and formal utilities, under which the SSPWP will operate, (iv) identify asuitable financing mechanism, (v) identify and agree with the relevant authorities appropriatematerials and construction standards, (vi) draft suitable bidding documents and templates,including evaluation criteria, in order to encourage transparent competition and to awardcontract licenses, and (vii) develop an appropriate technical/financial performance monitoringsystem.

C. Scope

8. Many water utilities fail to provide adequate water service provision to the poor in theirareas of jurisdiction, leaving poor communities to fend for themselves, and with many forced torely on alternative service providers who typically provide a lower quality service at far greater




4

cost than the formal utility. SSPWPs service a significant proportion of the poor in many urbanareas, but are not formally recognized and receive little or no formal planning recognition orfinancial support. Urban water supply and sanitation (WSS) projects, particularly those targetingthe poor in urban and peri-urban areas, are typically prepared using only limited socio-economicdata on the target “market”, and invariably ignore the role and contribution that these SSPWPscan make in the planning and delivery of municipal services. By mainstreaming SSPWPs andincluding them in sector loans and rolling programs, and not as standalone projects, their

contribution can be optimized, enabling more people to be connected quicker and the formalutility to prepare for the ultimate controlled handover to it of SSPWP small piped water networks(SPWNs). Urban water sector loans should include a component that supports SSPWPs, withpart of the loan proceeds being used to finance some or all of the capital investmentrequirements of the SPWNs. The scope of this PPTA focuses on developing the principles, thestructure and the mechanism to access this component of the loan.

10. When preparing a water supply project, it is essential to have as complete information aspossible about how all people get water now: what source, what quality, what cost, whatconsumption and what reliability. By undertaking a diagnostic water service assessment,including non-domestic consumers, all service providers can be identified and data obtained onthe target community as follows:

• Verification of the true service coverage, eg 24 hour piped water supply, sewerage, etc.

• Justification for the registration and licensing of SSPWPs (piped network operators,water vendors, bottled water suppliers, sewerage network operators, septic tankoperators, latrine service providers, etc.)

• Verification of consumer information versus utility records• Tariffs from various suppliers

• What suppliers generate what revenues• Who consumes the water

• Who pays what for water• Identification of potential development partners.

10. There are five steps leading up to the appointment of the SSPWP piped networkoperator, followed by a sixth step to cover regular technical performance and financialmonitoring:

(i) Undertake rapid diagnostic surveys of consumers, the water utility, SSWPs,and analyze the results to assess the size and location of the target market andthe capacity of existing SSPWPs to meet the unfulfilled demand.

(ii) Hold stakeholder consultation with the target communities, the utility,SSPWPs, local government representatives, NGOs, etc., and developappropriate registration procedures, including time-bound licenses andMemoranda of Agreement with the Municipalities and formal utilities leading up toultimate transfer of responsibility for service provision to them.

(iii) Develop a financing structure and mechanism appropriate to the localsituation. Comment [g1] : This could be

revolving fund or a specific loan




5

(iv) Identify materials and standards appropriate to the community and the lifetimeof the project, and obtain approval from the relevant authorities.

(v) Prepare bidding documents including evaluation criteria and procedures,SSPWP appointment process and award contract license.

(vi) Develop monitoring system covering appropriate technical/financialperformance criteria.

D. Methodology

11. In order to mainstream and integrate SSPWPs into the design of public and privatesector loans, the first step is to assess the market potential for SSPWP service provision.Consultation with stakeholders to identify their preferred service delivery options andprocedures to formalize the SSPWP service providers is then undertaken, from which the mostappropriate financial support mechanism is identified and the monitoring system to control thatfinancial support is developed.

D1. Rapid Diagnostic Surveys

12. ADB has prepared a Model PPTA ToR for undertaking a diagnostic city water

assessment, and should be referred to for details of the implementation methodology. Thefollowing sections therefore only provide a brief overview of the process

13 A series of questionnaires will be prepared by the consultant and surveys undertaken byteam members. An international consultant will have overall responsibility and will personallyinterview the water utility, analyzing all results and making recommendations . Domesticconsultants will be responsible for logistics, briefing and supervising the enumeratorsundertaking the surveys in the separate geographic areas of the city, and will also beresponsible for interviewing all existing SSWPs and pre-testing the sample questionnaires for allthe surveys before use. The enumerators will undertake 5% sample consumer surveys in eachtarget community, as well as interviewing water vendors and bottled water suppliers operating ineach of their areas. Key questionnaires will be prepared as listed below and will be translatedinto the local language by the domestic consultant:

1. Questionnaire – Water Utility (Appendix 1)

14. Apart from details of individual customers this will identify the recipients of bulk salesincluding SSWPs, sub-divisions, homeowner associations, etc. Its focus will be on identifyingthe water source and for each type of customer (non-domestic, house service connection,standpipe, etc.) the total number of connections, the volume sold per month and the revenuegained per month. It will provide information on production volume versus consumption volumeto determine NRW, and will note the extent of 24-hour piped water coverage.

2. Questionnaire – SSWP Piped Water Network Operators (Appendix 2)

15. The questionnaire will seek essentially the same information on every SSWP in eachsurvey area as for the utility except the quality of the service to the customer such as direct




6

connection or hose and drums will be determined. The method and frequency of payment is animportant output from this interview.

3. Questionnaire – SSPWP Water Vendor (Appendix 3)

16. If water vendors operate in a given survey zone, then vendors of each type (watertanker, motorized tricycle, pedaled tricycle, rickshaw, pushcart, etc.) should be interviewed by

the enumerator to estimate the total number of vendors of each type operating in that zone.Pertinent information sought includes their source of water, means of transport of water, numberand type of customers, average distance transported, volume sold and revenue gained. It isimportant to establish how much the vendor pays at source for the water and to whom it is paid.

4. Questionnaire – SSPWP Bottled Water Supplier (Appendix 4)

17. The enumerator will interview bottled water suppliers in his/her survey zone andestimate their total number and type (for example mixed goods shop, sole purpose bottled watershop, treatment and sale on site, deliveries of bottled water, etc.) in that zone. The focus of theinterview is to obtain information about the source of water, type of treatment provided, volumeof water sold per month, price paid and the total revenue.

5. Questionnaire – Water Consumer (Appendix 5)

18. The enumerator will obtain a 5% representative sample of all water users in his/herzone, identifying those served by the utility, by SSWPs, and surveying them in the numbersproportional to their prevalence. The focus will be on water source (consumers may get waterfrom more than one source), access to water, water quality, reliability of supply, availability ofsupply, volume consumed per month and cost per month. It is important to record the number ofpersons in each household. This survey must include a representative number of non-domesticconsumers, especially industrial users.

19. The international consultant will undertake an analysis of results and derive basic data,including:

• Coverage % with 24 hour supply to individual house connection by utility• Coverage % with individual house connection by the utility

• Coverage % including all utility domestic connections and standpipes.

•

Coverage % with piped water in home (all water providers).• Average household consumption per month by different sources of supply

• Average household cost per month by different sources of supply.• Total monies paid by SSWPs at source per month.

• Average price of utility water.

• Average prices of SSWP water (network operator, vendor, water bottler).• Revenue turnover (a) utility, (b) SSWPs (network operator, vendor, bottled water

supplier).

• Volume of sales (a) utility, (b) SSWPs (network operator, vendor, bottled watersupplier).

• Official NRW figure from utility.• Comparison of cost and consumption - piped water versus non-piped water

• Proportion of utility water volume sold to non-domestic consumers




7

• Proportion of utility water revenue derived from non-domestic consumers

• Comparison of average tariff for utility water: domestic versus non-domestic• Proportion of all piped water where utility maintains the reticulation

20. The rapid assessment will focus on those not served with piped water to assess thecosts and benefits to them of switching to a piped water supply, as well as the feasibility ofdoing so through an SSPWP contract. Similar questionnaires would be used for the provision of

sanitation services to the poor..

D2. Stakeholder Consultation and Registration Procedure

21. Following completion of the diagnostic assessment analysis, relevant key findings will bedisseminated to all stakeholders. About two weeks later, a one-day stakeholder consultation will be convened for all stakeholders. The morning would be devoted to presentation of results,analysis of the surveys and discussion of the findings, concluding with an overview of optionsfor the way forward. The afternoon would be devoted to discussion of those options,assessment of technical option preferences and to developing a consensus on, the preferredway forward including the establishment, if considered appropriate, of a stakeholder task forceto contribute to and monitor project implementation. The consultation will also guide SSPWPsupport, enhance cost recovery and institutional development to promote service sustainability,encourage water conservation (including reduction of NRW), and ensure that as far as possible

the urban poor are connected to piped water and receive improved sanitation services withintheir ability to pay. The stakeholder consultation will be facilitated by a domestic consultantskilled in such work, or by a well respected and capable local person.

22. Formal recognition of the SSPWP is required from the municipal authorities and also theformal utility to ensure that the area will not be re-developed or the water services networkextended into it for a specified number of years in order to provide security of tenure to theSSPWP. This will enable him to plan with confidence and price his services to obtain anappropriate return on capital during the period of tenure. This could simply be achieved, at leastinitially, through a simple registration process, but a far superior registration procedure wouldbe to issue a license detailing the area of license jurisdiction, the obligations of each party,reporting requirements and their frequency, periodic audits, remedies for failure to conform tothe license, an appeals process and appointment of an independent ombudsman, the licenseduration, periodic license reviews (if appropriate), exit strategies including ultimately the transferof responsibility for service provision to the formal utility or extension options at the conclusionof the license period. At the end of the license term the assets will be transferred to the formalutility. A reasonable license fee could be charged to cover administration costs. The terms of thelicense would also have to be approved by the formal utility, as certain sole service rights wouldbe devolved to the SSPWP through the license that would prohibit expansion of the formal utilitynetwork into the license area within the term of the license. It is therefore recommended that aseparate Memorandum of Agreement should be drawn up between the SSPWP and the formalutility to cover such issues as: appropriate technical standards and materials (typically lessonerous than those imposed on the formal utility and reflecting local conditions), provision of abulk water supply if appropriate (if licensed by the Municipality, the SSPWP would have legalstatus and so could become a legitimate bulk consumer of the formal utility) and coveringmaximum/minimum daily volumes, tariff, metering details, remedial actions in the event ofsupply deficiencies, periodic reviews (if appropriate), etc. The municipal license and the utilityagreement would also safeguard the position of the SSPWP in the event of a regulatory body




8

being subsequently set up to control the sector or if there was intervention by other relevantsectoral organisations.

23. The license should be a relatively simple document, with bureaucracy kept to a minimumsince to require the SSPWP to prepare numerous reports, provide extensive data records, etc.,would increase service provision costs (and hence the tariff) and potentially deter bidders frombidding to provide the service. The local consultant, with support from the international

consultant, will develop an appropriate license format and a Memorandum of Understandingacceptable to the Municipality and the formal utility, following consultation with existing SSPWPsand potential bidders to ensure that the terms are fair and reasonable and would not undulydiscourage potential bidders from submitting bids.

D3. Financing Structure and Mechanism

24. This is the key activity to be undertaken by the consultant, as financing of the SSPWP iscritical to ensure tariffs can be kept as low as possible so everyone can be connected to thepiped system. Because of their currently informal nature, SSPWP access to local capitalmarkets and bank loans is virtually non-existent, with reliance having to be placed on borrowingmoney from local money-lenders or close colleagues and relatives of the SSPWP, often atextortionate rates. To assist the SSPWP and to provide increased financial security theconsultant will investigate various options to determine and develop the most appropriate

financing structure and mechanisms for the disbursement, repayment (where appropriate)and monitoring of funds under the loan. Two of the options to be considered are to use part ofthe loan to lend directly to SSPWPs, or to establish a revolving fund.

25. The consultant will investigate the implications and mechanisms for designating acomponent of the loan for direct lending to the SSPWP. Special attention will be given to riskanalysis, appropriate service and interest rates (in comparison with local informal lending rates,financing costs and service affordability, etc.), disbursement and repayment mechanisms(including any staging of disbursements), term of the loan, and loan monitoring/reportingprocedures. Existing loan models will be evaluated during this process to identify key featuresthat will promote the objectives of the PPTA. As part of the risk analysis the consultant will makerecommendations on the proportion that the loan funds should represent in comparison with thetotal capital borrowing requirements of the SSPWPs in order to encourage bidders to developalternative or matching funding mechanisms, minimise exposure of the loan funds to potentiallosses on specific schemes, and also to enable more SSPWP schemes to be supported

financially

26. An alternative option to be investigated is to use a component of the loan to establish ineach region or city a revolving fund,, supplemented by other funding sources if deemedappropriate, to finance all or part of the capital expenditure of the SSPWP and perhaps with anelement of start-up capital for initial operation and maintenance (O&M) costs until revenuestreams are established. To reduce risk to the revolving fund and to promote more SSPWPschemes, each SSPWP could be required to source a proportion of its funding requirementsfrom external sources, eg through bank loans or the issue of bonds, to encourage thedevelopment of local financial markets. For each case, the financing mechanism must beappropriate for the local situation. The revolving fund would be administered by an appropriateindependent organization approved by ADB in the country concerned, for example anexperienced ethical bank, the national Chamber of Commerce, etc. The revolving fund would




9

have a broader coverage than direct loans to individual SSPWPs as funds disbursed from therevolving fund would be repaid in due course for further disbursement to other SSPWPs. Thefund would therefore provide broader opportunities for SSPWP support and potentially couldcover a larger proportion of the city and the unserved population. The consultant will makerecommendations on the term of the loan and hence the winding up date of the revolving fund.

27. A local financial consultant, with support from the international consultant, will evaluate

different formats for the various loan options, recommend an appropriate mix of funding sourcesbased on local conditions, develop appropriate disbursement and repayment modalities andprocedures, and reach agreement with ADB and other donors on fund operation and utilizationperformance monitoring / reporting.

D4. Materials and Standards

28. The local consultant will propose materials and construction standards appropriate to thecommunity and the lifetime of the project for discussion and agreement with the formal utility forincorporation into the Memorandum of Agreement. For instance, as the excavation and burial ofpipelines is expensive, may involve the need to obtain excavation permits, and increases thedifficulty to detect leaks, it might be more appropriate to simply lay pipes on the ground surfaceand secure them. At the end of the license period they would be abandoned as the formal utilityextended its reticulation network into the area in conformity with its own standards. On the other

hand, reservoirs and pumping stations could be retained for service after the license hasexpired, requiring the SSPWP to construct them to formal utility standards.

D5. Bidding Documents, SSPWP Appointment and Contract License Award

29. One week prior to the issue of bid documents the local consultant will prepare and issuecontract adverts for the local press and for distribution within the communities to be served.

30. The consultant will develop an appropriate SSPWP appointment process. It isanticipated that this would require each SSPWP bidder to propose a business plan and afinancing plan as part of his bid. The outline procedure for bidding and fund disbursement wouldtherefore be as follows:

• Prospective SSPWP bidders develop a business case for their system and formalise it ina business plan detailing population covered, system details, water source, capex, opex,human resource requirements, liaison with the formal utility, indicative tariff (to coverO&M costs, debt repayment and financing service charges), revenue projections,financing plan, etc. Financing plans would take into account the different funding sourcesand interest charges, etc.

• Business plans are evaluated by the fund administrators and the licensor (theMunicipality) to identify the most attractive and cost-effective bids (evaluation criteriacould include cost / household supplied, tariff affordability, proposed repayment period,etc.) or those that met more subjective social policy criteria such as number of poorhouseholds that would benefit from the scheme in a particularly deprived area.

• Prior to signing the loan, agreement would be reached on the disbursement schedule,the repayment schedule and the conditions that would trigger each repayment(repayments could be linked to the achievement of technical and financial targets, suchas reaching a revenue collection efficiency threshold, as time alone is an inappropriate




10

criterion for repayment determination since premature repayment could jeopardise theviability of the scheme).

• Funds could be provided in tranches to the bidder as physical construction targets in thebid program are achieved and matching funds are demonstrated to be in place.Monitoring of physical progress would be required to achieve this, preferably by anindependent person or organisation appointed by ADB or the fund administrators.

• Repayments returned to the revolving fund, if this is the financing option selected, would

finance other schemes or extend/up-grade existing ones.

31. The local consultant, with support from the international consultant, will develop biddingdocuments and templates that standardize the details required and the bid presentation formatso that bidders can clearly understand what needs to be included in their bids. Biddingdocuments should be short, simple and clear, be in both English and the local language, andmust clearly state what is expected of the successful bidder, how his bid will be evaluated (theevaluation criteria, the weight given to each, etc.), and provide details of the contract licenseaward process. The municipality would then award the license, modified if necessary to reflectbid details, to the successful bidder who would then sign the loan fund agreement. Themunicipality would not sign a contract with the successful bidder. Bid bonds and performancebonds, etc., are not considered to be appropriate.

32. The local/international consultants will make recommendations on how the Evaluation

Committee should be constituted, as well as its membership. Terms of Reference, including theevaluation and marking system as well as reporting requirements, should also be prepared bythe local/international consultants for the Evaluation Committee.

D6. Monitoring System

33. Independent monitoring of the technical and financial performance of the SSPWP toensure compliance during the term of the license is absolutely essential. In the absence of aformal regulator it is suggested that an independent consultant should be appointed toundertake this monitoring and periodic reporting function, with fees and costs met either throughthe license fee or, alternatively, from a separate budget within the loan fund. The independentconsultant would also report regularly direct to ADB and other loan fund donors on utilisationand administration of the fund.

34. The TA local consultant, with support from the international consultant, will design amonitoring and reporting system to monitor the performance of the SSPWP as well as tosafeguard utilisation of the loan fund and other sources of finance used by the SSPWP. Thesystem should be capable of distilling SSPWP performance as well as improvements to serviceprovision in the community through the derivation of simple key performance indicators (KPIs)without the need for the collection, recording and analysis of extensive datasets which wouldonly serve to increase bureaucracy and costs. The monitoring system should include thefollowing KPIs, variables data and suggested indicative KPI threshold values (monthly reportsshould cover items marked *, with those marked ** only reported bi-annually:




11

Key Performance Indicator(KPI)

Data Variables KPI Threshold Value(suggested)

Coverage** Population servedPopulation in community

>90% (ideally 100%)

Water Quality* Failures only of common

tests: chlorine residual,appearance (turbidity andcolour), taste/odour

<2% failures

Continuity* Hours of supply at highestpoint in system(average/month)

>18 hours (ideally 24 hours)

Pressure* Pressure at highest point insystem (average/month)

> 5 m

Non Revenue Water* Water Supplied (m3 /month)Water Consumed (m3 /month)

<20%

Revenue CollectionEfficiency*

Revenue billed ($/month)Revenue Collected ($/month)

>90%

Operational FinancialPerformance**

Staff, chemicals, power,materials, and mobile plant

costs

As calculated (capitalrepayment and debt servicing

estimated from this andrevenue collected)Customer satisfaction** Complaints/month

Population served<2%


Surveys of utility, consumers and SSWPs 1.0 monthsClarifications and preparation of results summary 0.5 monthsAnalysis of results and prepare water assessment report 0.5 monthsStakeholder consultation and report of findings 1.0 monthsDevelopment of registration/license procedures 1.0 monthsDevelop a financing structure and mechanism (during license 1.0 months

development period)Prepare bidding documents 0.5 months

Bidding period, bid evaluations and contract license award 1.5 monthsDevelop monitoring system (during bidding period) (0.5 months)

Total Implementation Period 6.0 (six) months


Enumerators (or students) 1 person month/communityDomestic water supply survey consultants 2 person months/communityDomestic financial consultant 1 person monthDomestic water supply consultant 2 person monthsInternational consultant 4 person monthsStakeholder consultation facilitator (inc. preparation) 1 person week/community




12


Enumerators, consultants, facilitator $Local transport $Office facilities $

Stakeholder consultation $Reports / communications $

Total $

H. Reports and Deliverables:

1. Water Assessment Report for City of ______________ Date

Part A. Summary of Results of Surveys (Domestic Consultants)Part B. Analysis of Results (International Consultant)

This two- part report will be due for completion not later than two months after the

start of the assignment.

2. Report of Stakeholder Consultation on Water Supply in City of ___________ DateInternational Consultant

This report will be due not later than three months after the start of theassignment.

3. SSPWP License and Memorandum of Understanding for Community _____ DateLocal/International Consultant

The license and MoA will be due not later than four months after the start of the

assignment.

4. Report on Loan Fund Structure, Modalities, Operational and ReportingProcedures for SSPWP Water Supply / Sanitation Schemes in ___________ DateLocal Financial/International Consultant

This report will be due not later than four months after the start of theassignment.

5. Bidding Documents for SSPWP Water Supply / Sanitation Scheme in _____




13

DateLocal/International Consultant

Bidding documents will be due not later than 4.5 months after the start of theassignment.

6. Evaluation Report on SSPWP Bids for Community ___________

DateEvaluation Committee (with support from International Consultant)

This report will be due not later than six months after the start of the assignment.

7. Develop Monitoring System for SSPWP Contracts in ___________ DateLocal/International Consultant

The monitoring system will be due for completion not later than five months afterthe start of the assignment.

Appendixes

1. Questionnaire for Water Utility (International Consultant)2. Questionnaire for SSPWP Piped Water Operators (Domestic Consultants)3. Questionnaire for SSPWP Water Vendors (Enumerators)4. Questionnaire for Bottled Water Supplier (Enumerators)5. Questionnaire for Consumer Survey (Enumerators)



14

Name of Water Utility Date


1. Name of City

2. Population in City 3. Population in Utility Service Area

4. Population Served by Utility (Direct) 5. Population Served by Utility (Bulk Supply / Indirect)

6. Population Served by House Connection 7. Population Served by Shared Connection

8. Population Served by Standpipe or Community Tank 9. Population Served by Utility Tanker

10. Number of House Connection s


c. Not Metered

11. Number of Shared Connections

a.Metered

b. Meter Not Working

c. Not Metered

12. Number of Standpipes


c. Not Metered

14. Number of Community Tanks


c. Not Metered

13. Number of Utility Tankers

a. Capacity of tankers

15. Number of Bulk Connection s


c. Not Meter ed

16. Number of Connections to Industry/ Other


c. Not Metered

17. Number of House Connections with 24 Hour Service 18. Percentage of Service Area with 24 Hour Supply

19. Number of Sources of Treated Water for Piped Supply

20. Production sources metered and working

Appendix 1



15

21. NRW for Utility %

a. Leakage % b. Mis-Metering % c. Illegal Connection % d. Illegal Sale of Water %

22. Number of Meters replaced in last 12 months 23. Total Consumption by House Connection Per Month m 3

24. Total Consumption by Shared Connections Per Month m 3 25. Total Consumption by Standpipe or Community Tank per Month m 3

26. Total Consumption by Utility Tanker Per Month m 3 27. Total Consumption by Bulk Supply to Small Private Piped Water Operators/Vendors Per Month m 3

28. Total Consumption for Municipal Use Per Month m 3 29. Total Consumption by Industry/ Other Per Month m 3

30. Total Money Billed Per Month for House Connections *

31. Total Money Billed Per Month for Shared Connections *

32. Total Money Billed Per Month for Standpipes or Community Tanks *

33. Total Money Billed Per Month for Utility Tanker Services *

34. Total Money Billed Per Month for Bulk Supply to Small Private Piped Water Operators/Vendors *

35. Total Money Billed Per Month for Industry/Other *

36. Number of new connections installed in last 12 months (domestic)

37. Number of new connections installed in last 12 months (non- domestic)

38. New connection fee and terms of payment (domestic)*

39. Accounts receivable in equivalent months of billing

40. Number of people employed by utility.

*Please indicate in local currency.

NRW = Non-revenue Water = Production - Consumption%

Production

Consultant to independently and randomly check domestic meters (40), industrial meters(10), and accounts on computer (100).




16


for SSWP - Piped Water Netw ork Operator s



1. Location of Piped System 2. Total Population Served by the System

3. Population Served by House Connections 4. Population Served by Shared Connections

5. Population Served by Standpipe or Community Tank 6. Source of Water

7. Cost of Water at Source $/m 3 8. Volume of Water Received at Source m 3

9. NRW % 10. Number of House Connections

11. Number of Shared Connections 12. Number of Standpipes and Community Tanks

13. Population Receiving 24 Hour Supply by House Connection 14. Consumption Per Month from House Connections m 3

15. Consumption Per Month from Shared Connections m 3 16. Consumption Per Month from Standpipes or Community Tanks m 3

17. Money Received Per Month from House Connections * 18. Money Received Per Month from Shared Connections*

19. Money Received Per Month from Standpipes or Community Tanks *

20. Water Treatment Provided by the System

22. License or Agreement with Local Authority 21. How Long in Business

□ Yes

□ No


NRW = Non-revenue Water = Production - Consumption

%Production


Appendix 2



16


for SSPWP - Water Vendors



1. Location of vendor 2. Population served by vendor

3. Population served by tanker 4. Population served by pushcart/tricycle

5. Businesses served by vendor 6. Source of water

7. Cost of water at source* 8. Average distance for delivery of water (km)

9. Volume of water delivered per day by tanker m 3 10. Volume of water delivered per day by pushcart / tricycle m 3

11. Revenue received per day for water delivered by tanker * 12. Revenue received per day for water delivered by pushcart/tricycle *

13. Number of tankers in your business 14. Number of pushcarts / tricycles in your business

15. Fuel cost per day for power cycles * 16. Fuel cost per day for tankers *

17. Approval of local government

□ Yes

□ No

18. License fee to pay *

19. How long in business 20. Average capacity of tanker m 3

21. Average capacity of full load in pushcart or tricycle (liters)


Name of Enumerator

Appendix 3



17


for SSPWP - Bott led Wat er Suppl iers



1. Location 2. Source of Water

3. Cost of Water at Source 4. Treatment Provided On-Site

5. Volume of water sold per day 6.. Revenue in one day*

7. Proportion sold to business 8. Average household volume purchased per day

9. Average household cost per day 10. License fees to Local Government

11. How long in business 12. Smallest volume sold /cost

13. Largest volume sold / cost 14. Business growing or static

15. Delivery services / distance 16. Approx cost loading % for delivery*

17. Costs per month in power, chemicals, rent, staff etc*


Name of Enumerator

Appendix 4



18


for Water Consumer

Name of Person who answered this questionnaire Date

2. Who supplies you with water

□ Water Utility □ Water Vendor

1. Location

□ Small Private Piped Water □ Own Well

3. What is the source of water 4. Is the water treated

5. How much water do you use per month /per day m 3 (last two bills)*

6. How much does this cost you per month / per day (last two bills)*

7. How many people in your household 8. How much bottled water do you use per day (liters)

10. How far do you go to access water 9. How much does the bottled water cost you per day *

□ Home

□ < 100m

□ > 100m

11. How is the water quality 12. How is the service from the utility

□ Good

□ Fair

□ Poor

□ Good

□ Fair

□ Poor

13. For how many hours per day is water available 14. Is the supply reliable

15. How is the service of the Small Private Piped Water Operator 16. How is the service of the water vendor

□ Good

□ Fair

□ Poor

□ Good

□ Fair

□ Poor

17. If you get water from the utility is the supply metered and working 18. If you don’t have piped water then when do you expect it

19. What is your monthly power bill 20. Are there pipe leaks in your street

21. Are there water leaks in your home


Name of Enumerator

Appendix 5