Models of Aggregation for Water Supply and Sanitation Provision

1. Models of Aggregation for Water Supply and Sanitation Provision Capacity building module

2. Outline of the presentation • What is aggregation? • Aggregation models • The process of aggregation • Summary • Case studies

3. Aggregated service provider aggregation What is aggregation? Grouping of several municipalities into a single administrative structure for the provision of a service town A town B town D town C

4. public private partnership Scaling up demand response approach Strengthening community management models Professional support to medium operators Aggregation of small towns Small scale independent providers Engaging the public sector Aggregation: one of many management models

5. Drivers for aggregation Cost sharing Increased efficiency Access to water resources Access to PSP Access to professional services Access to finance

6. Outline of the presentation • What is aggregation? • Aggregation models • The process of aggregation • Summary • Case studies

7. Scale: the optimum size of utility SCALE Several Towns Regional Provider National Territory Two Towns Hungary, The Philippines, France Italy, England and Wales, The Netherlands Brazil

8. Scope of Aggregation SCOPE What services? A single service e.g. bulk supply All municipal services All water and sanitation services Nimes (France), The Netherlands only water Dunavarsany (Hungary), water first, waste water later Italy, England and Wales What functions? A single function e.g. procurement All functions Several functions

9. Governance arrangements temporary • Loose association • Permanent structure owned by municipalities • Supralevel of local governments permanent

10. Governance arrangements –voting rights in Board ….Or a mixture of the various methods

11. Outline of the presentation • What is aggregation? • Aggregation models • The process of aggregation • Summary • Case studies

12. Is aggregation a suitable option? Adding up the pros and cons

13. Process of aggregation PROCESS Voluntary with incentives Mandated Voluntary Hungary Italy, The Netherlands, England and Wales The Philippines, France, Brazil

14. Stages in the Aggregation Process • Initiate the aggregation process • Identify key drivers for aggregation • Identify aggregation candidates and stakeholders • Choose an appropriate consultation process • Establish group to lead the process • Choose an appropriate aggregation process Preparatory Phase • Assess drivers, constraints, and potential issues • Assess benefits and costs for each entity • Assess benefits and costs for alternative groupings Analytical Phase • Choose the most appropriate aggregation model • Define an aggregation plan • Define procedure to resolve disputes • Monitor Progress against that plan Implementation Phase

15. Outline of the presentation • What is aggregation? • Aggregation models • The process of aggregation • Summary • Case studies

16. Aggregation: define scale, scope and process SCALE National Territory Two Towns SCOPE A single service or function All services and functions PROCESS Voluntary Mandated

17. More information Available from: www.worldbank.org/watsan

18. Outline of the presentation • What is aggregation? • Aggregation models • The process of aggregation • Summary • Case studies

19. Case studies • France • Philippines • Hungary • Brazil • Italy • The Netherlands • England and Wales

20. Syndicates in France

21. Local Government Units, Philippines

22. Dunavarsany, Hungary

23. Dos Lagos, Brazil

24. Consortium & Convenzione, Italy

25. Public water PLCs, The Netherlands

26. Regional Water Authorities, England and Wales Note: RWAs were divested to the private sector in 1989