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Private Operators and Rural Water Supplies: Experiences Outside South Asia

Private Operators and Rural Water Supplies: Experiences Outside South Asia. Dr. Elizabeth Kleemeier Water Unit, World Bank December 15, 2011. National Workshop on Sustainable Rural Water Supply and Sanitation Services, Department of Water Supply and Sanitation, Government of Punjab

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Private Operators and Rural Water Supplies: Experiences Outside South Asia

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  1. Private Operators and Rural Water Supplies: Experiences Outside South Asia Dr. Elizabeth Kleemeier Water Unit, World Bank December 15, 2011 National Workshop on Sustainable Rural Water Supply and Sanitation Services, Department of Water Supply and Sanitation, Government of Punjab Chandigarh, India, December 15-17

  2. Why private operators? Provide market incentives to manage well Introduce accountability by separating operations and oversight Increase technical and financial expertise Leverage private financing and investment

  3. Review of experiences using private operators Link to document: http://water.worldbank.org/water/publications/private-operators-and-rural-water-supplies-desk-review-experience

  4. Identified 25 initiatives Found great diversity of approach

  5. Range of Private Operator Profiles

  6. Range of Contract Holders Decentralized Entities

  7. Range of Contract Holders Centralized Entities

  8. Use of Community Organizations No common practice WUA = Water User Association

  9. Some good ideas

  10. Cluster schemes to increase profitability Burkina Faso, Rwanda, Niger, Uganda • Clustering attracted more qualified firms • Ability to spread costs and revenue across several schemes indispensible to firm entry Benin • Evaluation found profitability limited because so many operators had only a single scheme Links to Burkina Faso and Uganda Presentations: https://water.worldbank.org/water/multimedia/making-ppps-work-rural-and-small-towns-water-introduction-and-presentations-part-1

  11. Offer design-build-operate contracts Burkina Faso (and West Africa generally) • Firm will do quality construction • No subsequent disputes over infrastructure • Operator knows system • Save time in contracting process • Haiti • May introduce DBO to deal with lack of interest in operations only Link to document on West African experience https://water.worldbank.org/water/node/83637

  12. Use commercial bank to provide financing Kenya • Kenya has large number of decaying community-managed schemes • K-Rep Bank offers up to 80% financing; combined with output-based aid program that provides 40% subsidy • Built up K-Rep capacity (in-house appraisal team) • Consultant-operators prepare loan application, implement, and operate schemes for 5 years (loan period) • Found clustering and design-build-operate works best Presentation and document on Kenya experience: https://water.worldbank.org/water/multimedia/learning-module-financing-small-piped-water-systems-kenya

  13. Franchising by public water utilities Morocco https://water.worldbank.org/water/publications/output-based-aid-morocco-part-2-expanding-water-supply-service-rural-areas Link to document on Morocco

  14. Other ideas Develop standard contracts Train private sector in preparing bids Contract the private sector to provide business support services to private operators Recruit and train graduates as private operators (Mauritania) Use mobile phone applications to collect financial information on operators/schemes

  15. Note: Sustainability not yet well-documented Information on financial sustainability is scarce

  16. The World Bank is your partner Elizabeth Kleemeier ekleemeier@worldbank.org www.worldbank.org/water

  17. Thank you

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