Water Supply and Sanitation - Houston, TX

1 Water Supply and Sanitation in South Asia Bill Kingdom, Lead Water and Sanitation Specialist June 12, 2013. South Asia Region Afghanistan Bhutan Pakistan Nepal India Bangladesh Sri Lanka The Maldives Sector Background South Asia is on track to achieve the MDG targets for Water Supply - (2015 target = 86%, 2011 actual = 90%), but many challenges remain: Piped Water coverage in urban India has decreased over time and quality of service is poor in both urban and rural areas of SAR. South Asia is well off track to achieve the MDG targets for Sanitation - (2015 target = 62%, 2011 actual = 41%). There are more than 692 million open defecators in the region. Half of the world's open defectors live in India INDIA - Sector Performance Plenty of Opportunities Data for BRIC Countries proportion of Urban proportion of Urban proportion of Urban proportion of Urban population served with Country Year population served with population served with population served with Open Defecation Improved Water (%) Piped Water (%) Improved Sanitation (%).

2 Sanitation (%). 1990 India 2008 1990 BRC Average 2008 India exceeds the MDG target for Water Supply access to piped connections' is half of BRC average and declining since 1990. India well off target for improved Sanitation and lags the BRC. Open defecation levels much higher than other BRCs Key Challenges Water Supply Weak Water resource management quantity and quality issues Intermittent Water Supply in all cities Variations in service by market segment High coping costs for consumers Key Challenges Sanitation Limited demand Low willingness to pay by consumers Lower priority assigned by governments Lack of hygiene education and limited focus on behavioral change Key Challenges Sector-Wide Main sector challenge is not improving access it is providing sustainable and quality service Poor sector governance with overlapping roles/responsibilities, few incentives and few hard budget constraints (Poor fit to Autonomous, Accountable, Customer Oriented, Efficient).

3 Weak capacity and low levels of professionalization at all levels governments in urban and rural regions Weak sector financing limited O&M cost recovery, reliance on grants for capital Asset creation mindset - lack of attention to asset management Few public-private partnerships and limited use of private capital Women and low-income consumers most affected by poor service quality. Role of the Private Sector Limited use of PPPs in SAR. Some experience in Bangladesh RWSS. Looking at possibility for Multi Village Schemes in India Poor financial performance limits mobilization of private capital but service improvement contracts possible New models to be considered professionalization model, phased PPP. Need to involve national partners Variety of Maharashtra ULBs means various strategies will be needed 2,700,00. 0. ULB Population Average ULB pop: 1,073,632. Total category pop: 13,957,217 PPP? Percent of State urban pop: Average ULB pop: 290,587.

4 Professionalization Total category pop: 5,521,151. Contracts? Percent of State urban pop: 500,00. 0 Average ULB Pop: 35,944 Govt. capacity Total category Pop: 7,727,988. building? Percent of State urban pop: 120,00 13 ULBs 19 215 ULBs Number of ULBs in each category Indian utilities need a model between PPP and public sector reform Public sector reform (capacity building models) PPP: Control by private sector partner Increased private involvement Management Operations Concessio Classroom Twinning Knowledge Technical Professional- assistance ization contract outsourcing n training arrangement transfer by public or with public partnership agreement Contract private or private institutions providers The Professionalization Contractor Provides these services . Organizational Standard operating Software and IT In-house turn- systems Training programs restructuring procedures around experts Complementary inputs (Funded by State Government). to turn around these Capital works Equipment functions of utility management Meters, pipe Truck, tools, etc replacement, etc.

5 Utility Commercial system Distribution system Capital projects administration management management Planning Human Billing/collection Repairs Resources Treatment plant Implementation Meter reading Maintenance operation Accounting/ Financing financial Customer NRW reduction management service Procurement Phased Performance Based Contract: Roles over time 0 1 2 3 4 5 6 7 8 9 10. Phase I Phase II. Institutiona Create utility Embed good practice l Manageme Improve management processes, such as information Train and certify staff nt management, HR, financial, billing etc. Service 100% on 50% 24*7. levels on 24*7. Capex Plan & - Continue replacement - Install bulk meters - Replace mains program Implementati Plan - DMA. - Replace service connections - Bulk Supply on - Pressurization augmentation - Set tariffs Govt. Role - Approve plans - Monitor contract The World Bank's Engagement Pillar 1: Pillar 2: Pillar 3: Improving access to Improving sector Improving quality and capacity/professionalizati Water Supply and sustainability of services on Sanitation Focus on Sanitation Promoting alternative Knowledge creation and Improving access to Water institutional and financial sharing Supply in small towns and models that will improve Advocacy for reforms peri-urban areas autonomy, accountability Building skills in project At government level: and service orientation planning and Support to policy initiatives Enhancing oversight implementation , appropriate financing capacity Building management and models and incentive Local private sector technical skills of service arrangements participation providers At project level: Explore Communications and alternative models for behavior change providing services, including output-based aid and P4R.

6 Some key projects There are some 15 projects either active or under preparation and other ongoing supervision, TA and AAA activities. The size of the portfolio is approximately US$ billion Projects under implementation: Dhaka Water Supply and Sanitation Project Chittagong Water Supply and Sanitation Improvement Project Rural Water Supply and Sanitation Project Bangladesh Karnataka Rural Water Supply and Sanitation Project Uttarakhand Rural Water Supply and Sanitation Project Andhra Pradesh Rural Water Supply and Sanitation Project Punjab Rural Water Supply and Sanitation Project Kerala Rural Water Supply and Sanitation Project II. Some key projects (Contd). Projects under preparation: Karnataka Urban Water Supply Modernization Project Rural Water Supply and Sanitation Project for Low-Income States in India Third Maharashtra Rural Water Supply and Sanitation Project Rural Water Supply and Sanitation Improvement Project Nepal Example sector projects: Sector review of urban/rural WSS in Pakistan Secondary towns in Bangladesh Regional service provider model in Sri Lanka Gender in urban Water Supply and Sanitation Alternative PPP models for service provision in SAR.

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