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
Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)
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
Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)
Analytical framework recognizes:
context, building blocks, institutional
levels and service delivery models
Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)
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
Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)
Country Context and
Situational Analysis of
Rural Water Supply
Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)
Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)
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
Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)
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
Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)
Country Progress
towards Sustainable
Service Delivery
Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)
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
Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)
Mapping overall sector score - aggregate
for building blocks - with GNI per capita
Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)
Performance of
Service Delivery
Models
Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)
Distribution of Service Delivery Models:
community based management prevails
Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)
Scores of Service Delivery Models
Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)
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
Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)
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
Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)
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
Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)
Reflections on
strengthening rural
water supply services
Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)
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
Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)
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
Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)
Merci – Thank you