Sustainable Development Goals -Finding Solutions in

Water Sector in Africa

WEL-COME

Definition of Development• Development - Not restricted to Economic Development

(Jobs ,Economic Growth, Infrastructure) but covers a whole gamut of human life enveloping human development (Education, health care, poverty & hunger),

Social Development (Potable Water, Gender Equalities, Peace & Justice)

& Environmental Development(Clean Energy, Forest Cover, Water Conservation & sustaining a co-exisiting ecosystem with other species)

Development - Summary

• Covers following aspects – • Human Development• Social Development• Environment Development & also• Economic Development

All aspects covered in 17 SDGs to be implemented from 2016-2030

Financing Challenge for SDGs• Financing Challenge arises mostly from the

following -1. Development needs hugely surpass the MDB

commitments of ODA & IDA2. Ineffective Domestic Resource Mobilisation in

Developing Countries3. Illicit Financial flows of Multinational Corporations4. Bringing Private Sector on-board to make for

deficit in financing the SDGs

Bringing Private Sector On-board

Private Sector Will Invest in SDGs Implemetation only if – • Favourable Risk Vs. Return Considerations &• Good Business Climate

Bringing Private Sector On-board• Factors for Good Investment Climate

Public Finance

Private Finance

• Improvement in ease-of-doing business

• Independent judiciary• Consistent Tax Policy• Effective , transparent & unbiased

Tax Administration• Institutional Reforms• Land & Labour Reform• Risk de-coupling & Mitigation

Avenues• Scope for Financial Return on

investments• Effective Public Finance Policy

through stable macro economic management

• Corruption –free Administration• PPP Project Pipeline & legal

framework for a thriving PPP climate

SDGs & water Sector

• 6th SDG

CLEAN WATER & SANITATION

ENSURE AVAILABILITY & SUSTAINABLE MANAGEMENT OF WATER & SANITATION FOR ALL

Water Sector in Africa

• Public Sector Utilities / Corporations or Government Depatments• Hugely inefficient & unsustainable

operations• Financial losses mainly due to huge

distribution losses to the tune of 60-70%

Major Challenges

• Highly indebted/subsidised with huge losses• Distribution losses very high with obsolete

distribution network rendering projects financially unsustainable

• Uncertain service level due lack of financing• Political interference• Absence of Institutions• Low level of skill & capacity development• Community Relationship & Communication

A Chartist’s View of Financial Concern

Water Intake Water Production Water Billied Revenue Collected Production Cost0

20

40

60

80

100

120

140

120 118.8

50

40

65 Series1

WAT

ER

UTI

LITY

R

EVEN

UE

LO

SS RAW WATER

INTAKE

DESPATCHED WATER PRODUCTION

BILLABLE WATER

BILLED WATER

PRODUCTION LOSS

MAIN LINEDISTRIBUTION LOSS

CONSUMER LINE DISTRIBUTION LOSS PAID

WATER

UNPAID BILLED WATER

WAY FORWARD• PPP is envisaged as the way forward• Role of Government is to play stewardship in

encouraging Private Sector Investment, especially in Distribution & Commercial area.

• Role of Private Sector is to enhance productivity in Distribution, Billing & Collection.

• Scope for Innovative Financing through Philanthropy in Community Relationship, Communication Outreach, Skill & Capacity Development and Environmental Issues in Water Sector.

Schematic Financing Pattern

TOTAL PROJECT

COST

Government, Institutions, MDB

55-60%

Private Investor

30-35%

NGO5 – 10 %

Capacity building, R & D Operational

Activities

Non-operational Expenses

Role of GovernmentGovernment can play a vital role as under to encourage Private Sector involvement in Water Distribution Area • Improved co-ordination with other state agencies

& Government Contractors• Ensuring security of assets • Enactment of Water Bill to provide space for

independent regulator, to deal with criminal issues in Water Transactions such as illegal connection, unregistered meters, meter bye-pass, etc.

Contd.

Role of Government• Improvement in the economic scenario such as rising

income, new job creation, etc.• Creating framework for PPP model in a way for the Private

Operator to pay for themselves for the Distribution & Densification Project.

• Ensuring professional management by eliminating political post from Management.

• Bringing in Institutional Reforms by setting up Water Sector Regulator, Water Tribunals & ensuring independence of the same

• Fair & transparent Tariff setting procedure Contd.

Role of Government• Centralisation of billing & payment of water

consumption by all Government offices including the autonomus & semi-autonomous State Agencies

• Imposing levy on borehole pumps in areas where service is not available

• Providing authentic Land & Plot data for network expansion

Role of Private Partner• Refurbishment of Plant & Distribution Systems

• Improvement in Distribution, Billing & Collection Efficiency

• Setting-up Smart Bulk Meter Network along all the main lines covering nodal joints and terminal points to facilitate generation of intelligent and actionable data

• Setting-up CRM Software to generate classified data on Customer complaints & the response actions taken

• Maintaining adequate stock of bulk meters & other repair materials on a consistent basis

• To be Contd.

Role of Private Partner• Rationalisation of Staff Payroll and linking incentives to

improvement in Meter Reading exercise

• Mechanism for reprimanding & penalising staff & customers for unscrupulous acts

• latest technology in the area of Meter Reading, Bill Distribution & 24x7 Bill Payment facility, CRM, Internet & Web Services-Private

• Contd.

Role of Private Partner• Adopting newer technology such as GSM,

GPRS, GIS in the area of POS based Meter Reading, on-the-spot billing, assignment of field work, etc.• Implementing active web-based services

such as bill distribution, online payment, Customer complaints, etc.• Implementing POS based collection

through Collection Agents

Role of Philanthropy / NGO

• Enhancing Customer awareness & education on various issues such as importance of timely pament, application of water rate collection, water conservation, etc.• Carrying out Climate & Environmental Study & Water Table Surveys.

Desired Role by MDBs• Providing Project Advisory & Consultation Service

to Government in framing PPP agreements, Risk Identification, Analysis & Mitigation guidelines, advising incentives for Private Investors, Benchmarking the desirous outcome of PPP, Setting roles & responsibilities of all the stake-holders, etc.

• Monitoring & Evaluation Services

THANKING YOU

&

BEST OF LUCK TO YOU ALL IN IMPLEMENTING SDGs