aww2013: private operators delivering performance and efficiency for water‐users and public...

7/29/2019 AWW2013: Private Operators Delivering Performance and Efficiency for Water‐Users and Public Authorities by Jack Moss

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Private Operators

delivering

performance

and

efficiency for water‐users and public authorities

Jack Moss

‐AquaFed



Introducing AquaFed

uaFedTHE INTERNATIONAL FEDERATION OF

PRIVATE W ATER OPERATORS

www.aquafed.org

qua eTHE INTERNATIONAL FEDERATION OF


2



AquaFed’s Mission

To connect private water operators, internationalublic institutions

& civi l society organisations

providers and international stakeholders

Contribute to solving the world's water issues by

working with the international community and sharing theexpertise of the private sector

xp a n varous mo e s so ey are un ers oo anavailable as options for public authorities to choose





Introducing AquaFed

Accredited EU/EC and UN ECOSOC

Our Members are instruments of public policies

Our positions are not exclusive to the private

sector Global contribution to solving the challenges of

delivering public water and sanitation services





AquaFed Members



Corporate Members



Public and Private water operators

fac th am c n traint

• The majority of difficulties that face operators of public water–

Public, Private, or Mixed

• A uaFed’s aim is to identif the difficulties and hel findsolutions

• Lack of political commitment- ,

• Short-term vision

• Unsustainable economics

• Weak regulation



AquaFed 6



The Lamp‐post Syndrome

re you sure this is where you

dropped your keys”

“No, I think I dropped them somewhere else.”

“Then wh are we qua e

THE INTERNATIONAL FEDERATION OF

PRIVATE W ATER OPERATORSlooking here?” ecause t s s w ere

the light is.” AquaFed



The Lamp‐post Syndrome

Contract or license

Regulation

Competition

Academic Study

Public Operators

Private Operators

AquaFed



4 lights illuminate only a minute part of the sector

The lights of:

Contract

or license

Regulation Competition

Academic

Study

PPP Contracts

& Regulated

Utilities

< 10%

Direct PublicIndirect Public

“Market” share 50%

Semi‐formalInformal

40%

AquaFed

Time BoundRegulated & Contested

Natural Monopoly

Service

Unregulated, Uncontested

limitlessNatural Monopolies

Lightly regulated

Uncontested

Mostly

limitlessNatural Monopolies

Partially regulated

Private

solution

to

need for service

UnregulatedOpen Market response

to

real needs



Study of performance of PSP arrangements in Water and

Sanitation Services

Evidence of good resultso ane y pu c au or es

who have engaged privateo erators

Based on facts and

Showing diversity of private

opera ors

Released in the WWF6 inqua e


PRIVATE W ATER OPERATORS Marseilles



Methodology for PSP cases studied

The cases presented in this brochure illustrate many types

of

performance resulting

from

private

management

of

public

services (PSP)

achieved are described even if other useful results have

been obtained

These cases have been selected to show the wide diversity

of countries, types and sizes of partnerships and operators

ere are

many

o er

success u

cases

n

e wor





Dimensions of performance studied (1/2)

1. Implementing the human right to safe drinking

– Extending access to water to un-served people Improvingaccessibility of water for everybody

– Im rovin availabilit of water

– Securing water safety

– Improving acceptability of water

–

– Ensuring more equitable water supply

2. Improving wastewater management

– Extending wastewater collection

– Protecting the environment from wastewater pollution





Dimensions of performance studied (2/2)

3. Improving relationship with water-users– a s yng users expec a ons

– Making life of users easier

4. Improving efficiency of water util ities– Reducing leakage and water losses– Improving energy efficiency– Securing revenue streams– Mana in infrastructure assets sustainabl– Optimising economics of public services

5. Raising and maintaining staff capacity

6. Responding to natural disasters





Focus on Dimension 1 :

Im lementin

the

human

ri ht

to

safe

drinkin

water





Cases covered in the study : global map

20

13

5 8

122

16

9 14

71

18

7

3

4

15

196





List of water field cases studied



AquaFed 16



Cases at country level and global level





A few illustrations of the findings : Dimension 1

Increasin

water

su l

covera e

in

cities

90%

100%all cities in developingcountries

70%

80%Apali

West J akarta

Mbombela

40%

50% Urban Senegal

Petropolis

10%

20%

Latur

Tangiers

Carta ena

0%






Im rovin

efficienc

of

water

Utilities






Im rovin

efficienc

of

water

UtilitiesOther significant examples :

nergy op m sa on y : n uc ares e annua e ec r c y

consumption has been reduced by 75% between 2000 and 2010

users if they are to deliver a good service : cases of Mbombela, South

Africa, and small towns in Uganda provide examples of significant

im rovements in billin and cash collection

Asset stewardship : In the Central Paris water distribution case more

than 50% of the distribution networks were renewed by the private

water operators and the average “functional” age of the distributionnetworks is now 21 years younger than it was at the beginning of the

PPP contracts 25 years before.qua e





Focus on Dimension 5 :

– Transfer of know-how to the 4,500 employees of the companyand its 1000 managers part of the contract,

– , ranng ays un er a en rom o , rougtrained trainers (70% of them Algerian)

– Massive training effort : 160,000 hours of training between

2002 and 2010 , 26 hours of training per staff per year

– ,deliver official diploma in water, sewerage and electricity





Sample of form for a PPP case : South Africa ‐ Mbombela





A PPP case in Africa :

South

Africa

– Mbombela

:

Main

achievementsWater and sewerage operator: Sembcorp Silulumanzi.

Location: Greater Nelspruit area. Nelspruit : provincial capitalMpumalanga, South Africa.

Total population in concession area is 440,000 of which currently 380,000are receiving the services (2011)

Coverage : Basic water supply has been expanded from56% of thepopulation to 89% in only 5 years.

The ro ortion of informal houses with no access to a water servicereduced from 79% to 9% from 1999 to 2009, in spite of the increase of informal houses

Revenue collection : The ro ortion of revenue collected / total bills

increased from 73% to 78%Water quality : Sembcorp Silulumanzi is one of the few water systems toobtain the Blue and Green Dro awards.





World Bank report on PPPs in Water:

> 25

mi ion

peop e

ave

gaine

Access

to

rin ing

water

networ

in various developing countries, 24 mil lion people, mostlypoor , have gained access to tap water

From : 48 to 72 million : increase of around 50% in less than

Also summarised in the stud

Source: World Bank Report, P. Marin, 2009





Summary

an tak awa m a

Authorities can

obtain

outstanding

results from engaging private water

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