Objectives of the session:

Contribute to the discussion on the role of private sector service providers in providing sustainable rural water services.

• Can it really contribute to better services?

• What conditions need to be in place to ensure this?

• Is it the new meanstream or does it remain a niche?

Private sector service providers: mainstream or niche?

Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)

When water does not flow, something has gone wrong in the service chain

Spare part manufacture

Spare part distribution

Repair persons

Caretaker/

sellers

Demand creation/ marketing

Drilling – LL investments

Pump installation/

SL investments

Users/ rights

holders Government/ duty bearer

Private Sector Partnerships can help strengthening the service chain

1. ‘Strengthening’ linkages among Chains

Spare part manufacture

Spare part distribution

Repair person

Caretaker/

seller

Demand creation/ marketing

Drilling – LL investments

Pump installation/

SL investments

2. Consolidating Parts of the Chain

Delegated Management - Affermage Drilling – LL

investments

Pump installation/

SL investments Water Quality?

Pump installation/

SL investments

Several levels of consolidation can take place

Professional service models – integrated value chains

Uganda Spare part

manufacture

Maintenance Caretaker/

seller

Demand creation/ marketing

Drilling – LL investments

Pump installation/

SL investments

Drilling – LL investments Pump installation/

SL investments Water Quality?

Delegated Management - Affermage Benin

Burkina

Faso

≈

Services delivery / PPP Management models

5

PPP options vary according to the levels of risks transfer • Management contracts and lease agreements • Concessions contracts: • Transfer of assets or disinvestments

• SA systems approach to sustainable water operation & maintenance in Uganda, Mary Namwebe (GOAL Uganda)

• A Systems Approach for Sustainable Rural WASH Services, Adam Harvey (Whave Solutions, Uganda)

• Public Private Partnership for Rural Water Supply: Experiences from Zimbabwe, Dhoba Lovemore (National Coordination /unit)

• Action Research on rural water service models through private sector participation, example from Burkina Faso

Presentations

Wedenesday 30 November

Private Sector: Mainstream or Niche?

Action Research on rural water service models through private

sector participation

Fiorella Polo, Wash Advisor, UNICEF

7th RWSN forum Abidjan 29Nov-02 Dec 2016

The Action Research extends delegated management to hand-pumps

---- Less profitable

v

v

v

Small Piped Schemes – Rural growth centers

+++ More profitable

Handpumps– Less densely populated areas

The model requires scale: ~

130 HP per operator

The AR aims at balancing financial viability and good governance

Good governance/ accountability

Financial viability

Autorithies

Communities

Private operator

Government

Users association

Municipality

Users

Information flow is at the heart of a balanced model

Duty bearer

Rights holders

Service provider

Strong accountability pathways An integrated value chain

Exploitant

Fournisseur de pièces

Rapid response tools and simple dash-board

T

T

T

Functioning

Repaired within 72 hours

Water quality compliant

Income

Consumption

Costs

F

F

F

Government

Niankorodougou- 10 yr cumulative income – sensitivity to tariffs

Paramètres fixés

consommation spécifique 7 L/j/hab

tarif à la BF 500 F/m3

taux de fuite&recouvrement 1%

rémunération des fontainiers 20% des recettes

taxe communale 0 FCFA

Operator’s margin =11%

Tariffs were based on consultations, research and sensitivity tests

Payment methods developed based on research

Prepaid cards conceived for commonly used containers

Caretaker’s commission =20%

• Are private sector service providers the new mean stream, or can this only be applied in specific contexts?

• What are the key elements / conditions for private sector service provider involvement in providing sustainable services at scale?

• At community level (right holder)

• At (local) government level (duty bearer)

• At the private sector (service provider)

Questions for the audience?

Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)