sustainable service delivery models for rural water supply · 2016. 2. 12. · le 7ème forum du...

Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)

Sustainable Service

Delivery Models for

Rural Water Supply

Synthesis of Emerging Findings

of a Sixteen Country Study

Harold Lockwood and Goufrane Mansour

Aguaconsult

Stef Smits, IRC

Susanna Smets, World Bank


Sustainability examined in 16 countries with

World Bank programs to improve

operations and inform global solutions

Methodology:

Wide range of country contexts

Desk review and field visits

Support of local consultants, World Bank teams and local stakeholders

Outputs: Global Synthesis

Country Reports

Tool to help teams

do sustainability

assessment during project

preparation/review


Analytical framework recognizes:

context, building blocks, institutional

levels and service delivery models


Rigor of qualitative analysis was enhanced

through application of a scoring framework Scoring applied to provide snapshot assessment of country progress

towards ideal situation of each building block

Based on four sub-questions for each building block (max. 8 points

per building block)

Scoring applied at sector level (max. 40 points) and at service delivery

level (max. 40 points) to identify progress, strength and weakness of

SDMs

Scores based on available secondary data and/or on interviews and

interpretation

0 – 2 Most conditions are not yet in place, there are significant challenges and

much still needs to be done in many areas of the building block

3 – 5 There is progress in some aspects, but more still needs to be done, or there

is mixed progress across the building block

6 – 8

All areas of each building block are being addressed, or there is significant

progress underway toward optimum conditions in the building block


Country Context and

Situational Analysis of

Rural Water Supply


Access not only predicted by increase in GNI…

and national functionality monitoring limited

Nepal, Bangladesh, Ethiopia, Benin

made impressive progress despite

modest low GNI, but Tanzania,

limited progress, with GNI growth

Two thirds of countries have no

national system for tracking

functionality rates


Contextual drivers as demographics and

decentralization matter for rural water supply

Rural demographics:

Growing populations, increasing demand and political

importance – Ethiopia, Tanzania, Philippines

Rising income levels with increasing demand for

higher service levels – Morocco

Shrinking rural populations with less human

resources to sustain services - Brazil, China

Extent of (fiscal) decentralization:

Highly decentralized with significant inter-

governmental transfers – China, India

Highly decentralized in ‘resource poor’ contexts –

Kyrgyzstan, Nepal, Benin

Stalled decentralization – Bangladesh

Direct implications for level of public expenditure


Country Progress

towards Sustainable

Service Delivery


Results of sector analysis: mixed picture of

building blocks and country performance

Country Institutional

capacity Financing

Asset

Management WRM

Monitoring

Regulation

Aggregate

Score

Benin 4 4 5 2 3 18

Bangladesh 4 2 2 3 1 12

Brazil 6 5 5 7 5 28

China 5 5 6 5 6 27

Ethiopia 5 4 2 3 3 17

Ghana 3 5 6 2 5 21

Haiti 3 0 3 0 4 10

India 5 5 2 2 2 16

Indonesia 5 5 3 2 4 19

Kyrgyzstan 2 3 3 3 2 13

Morocco 6 5 5 8 6 30

Nepal 3 3 3 3 3 15

Nicaragua 5 4 3 4 6 22

Philippines 3 4 2 3 6 18

Tanzania 3 3 2 5 3 16

Vietnam 3 5 4 5 3 20


Mapping overall sector score - aggregate

for building blocks - with GNI per capita


Performance of

Service Delivery

Models


Distribution of Service Delivery Models:

community based management prevails


Scores of Service Delivery Models


A nuanced picture for community-based

management: aggregation, systematic support

and contracting increases performance

Community management with no or very

limited external support, no monitoring or

regulation – resulting in poor performance

with consistently low scores

Stronger scores for associations or

federations of CBM (Brazil/Ceara,Tanzania)

Strong scores for CBMs provided with

structured support (Ethiopia), although

doubts about scalability due to specific

donor funding

Good scores for CBMs contracting private

sector services but retaining control – Haiti,

Tanzania

26%

14%

3% 17%

40%

Association of CBM

CBM/ Private sector

Other

Supported CBM

Unsupported CBM


Public utility provision in rural areas

emerges as strong model in few countries

Direct local government provision:

• Few examples, low scores: institutional capacity and financing is weak;

do not perform better than community management models

• Many are not corporatized entities: not able to operate on commercial and

autonomous basis; no ring-fencing of accounts from local government

budgets

Public utility provision: In three countries - China, Morocco and

The Philippines

Water Affairs Companies in China are urban

utilities and perform well in almost all aspects

Absorbing rural populations is not commercially

attractive and incentives are provided to

support the process


Private service delivery models perform well,

but require effort and resources to scale • Relatively common – found in 8 countries with range of contractual

mechanisms from build operate own, lease and concession

contracts.

• Outperforms other models with consistently higher scores financing

• Most are pilot scale and receive significant public funds such as to

facilitate transaction (enabling environment, project preparation) and

attract private investments (capex viability grants)

Vietnam framework to encourage domestic private finance

with capital support to investors; Thai Binh province

• Since 2012, capital from private sector is 39% of total

• 42% of total designed rural water supply capacity

• private sector participation include build-own-operate-

transfer (BOOT), build-own-operate (BOO) and O&M

contracts


Reflections on

strengthening rural

water supply services


Dispersed rural populations

Rural communities and growth centres

Concentrated rural populations

Service level:

• Basic, point-source

Interventions:

• Structured programs of support by local government or higher level;

• Focus on improving water quality;

• Public funding for capital maintenance costs

• Support self-supply programs

• Soft loans to some communities

Service level:

• Piped networks with or without household connections

Interventions:

• Technical support to service authority and providers;

• Promote willingness to pay;

• Simplified asset management;

• Improve access to repayable financing;

• Clustering to increase commercial attractiveness

• Improve monitoring and light-touch regulation

Context-specific trajectories towards

sustainable rural water services

Service level:

• Piped metered household connections

Interventions:

• Incentivize service providers to integrate peripheral rural areas;

• Strengthen asset management

• Improve regulation of service providers

• Performance benchmarking

• Support consumer-oriented practices

• Improve access to repayable finance


Five key policy highlights

1. There is a ‘missing middle’ in the enabling environment: investment in

systems, capacities and resources need to go down to service authority level

2. Communities on their own can often pay “O&M plus” but not full cost

recovery: financing from tariffs can cover O&M (and beyond) but plan for

continued public financing for direct and indirect subsidies from taxes and

transfers

3. The transition to higher service levels needs to be well managed: better

service levels with larger, more complex schemes, will require professionalized

management, asset management, comprehensive monitoring and introducing

light touch regulation

4. There is no "right” or “wrong" service delivery model: the success of any

model depends on continuous support provided for asset management,

calculating tariffs, advice on community-mobilisation, and monitoring; multiple

models will continue to co-exist

5. Dispersed and hard to reach people require explicit focus to avoid

stagnation: as countries move along the development trajectory vulnerable,

ethnic and minority groups will require tailored approaches


Merci – Thank you

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