Post on 24-Mar-2016
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Water Services Regula0on and Water Security
Oxford Interna0onal Water Security Conference “Water Security, Risk and Society”
18 April 2012 Eng. Robert Gakubia, CEO Water Services Regulatory
Board, Kenya
Framing Water Services Regula0on & Water Security (1)
• Water Security at what level? Interna0onal, na#onal, sub-‐na#onal etc.
• Water resources regula0on vs. water services regula#on à enhancing water security by ensuring sustainable access to services with same minimum standard for all
• Urban vs. rural water services (different technology & mgmt.); implica0ons for regula0on
Supply/Demand • Infrastructure (inadequate/
old) • Water resource availability (climate variability/change)
• User compe##on • Popula#on growth
• Increased per capita demand • Water quality standards
• High NRW
Managerial: • Low efficiency • Low capacity
• Lack of managerial autonomy • Low transparency
• Poor accountability • Low consumer responsiveness
Challenges to Water Security in Water Services
Environment/Public Health
• Public health needs/risks
• Environmental health • Water conserva#on
Socio-‐Poli#cal • Inequity (coverage/access)
• Affordability • Improved living condi#ons
(service standards) • Inadequate public par#cipa#on
(Transparency & Acctblty.) Financial
• Lack/unreliability of funding
• Past underinvestment • Unsustainable tariffs
Framing Water Services Regula0on & Water Security (2)
Framing Water Services Regula0on & Water Security (3)
• Key compounding issues to consider in Kenya’s water services sector: – Demography & Urbaniza0on; urban crisis
– Poverty; vulnerability of (urban) poor – Human rights (non-‐discrimina0on, empowerment)
– Governance (accountability) & poli0ciza0on – Long-‐term sustainability (financial, environmental)
& Regulatory risks
Urban Crisis & Water Security (1)
The developing world, with its rapidly expanding urban centers, will see the biggest increases in water demand, as its population grows larger and more affluent. Migrations to cities will drive major increases in water demand for personal consumption, sanitation, industry (…)
Global Water Security, Intelligence Community Assessment, February 2012
Increasing demand in urban centres as water risk:
YET: Need to dis0nguish between actual and latent demand; even today large number of urban poor, whose demand remains unheard (the underserved)
Urban Crisis & Water Security (2)
Sanitation/public health hotspots within cities/towns!
Nairobi 282 low income areas Kenya 7.9 million people living in 1,882 low
income areas in 212 ci0es and towns
Urban low income (underserved) areas are areas of water insecurity!
Urban Crisis & Water Security (3)
Urban un(der)served . . . § Unsafe water sources, e.g. shallow
wells, boreholes
§ Water quality poor and uncontrolled
§ Water price high and uncontrolled
§ Water availability unpredictable
§ Unregulated small scale providers
§ Disastrous sanitary situation
§ Informal environment (no accountability)
High level of water insecurity coupled with: steady deterioration of living conditions, more severe manifestation of poverty than in rural setting
Human Rights and Water Security
Cons0tu0on of Kenya (2010) recognizes Human Right to Water and Sanita#on, obliging water sector ins0tu0ons to work towards its progressive realiza0on
This involves: 1. Targe0ng of policy, planning & implementa0on towards more
equitable access 2. Formaliza0on of urban water services, ensuring same minimum
standards for all (water quality, availability, price) 3. Socially acceptable commercialisa0on for sustainable services 4. Regular monitoring of & public repor0ng on progress 5. Ins0tu0onaliza0on of consumer par0cipa0on and empowerment
Governance and Water Security (1)
§ Many afempts to address water mgmt issues have been inadequate; WHY???
Capital investments in infrastructure . . . also require investments in capacity and ins9tu9onal development to realize and sustain the benefits of increased investments
WWDR 3
§ Even most highly acclaimed technical and managerial exper0se not useful in environment of dysfunc#onal governance
§ Lack of Good Governance one of root causes of major constraints within our socie0es; water sector is NO EXCEPTION!
Governance and Water Security(2)
Poor governance results in chain of water insecurity ↓ Lack of transparency & accountability ↓ Abuse of power ↓ Deficiencies in the management of water supply and
sanita0on ↓ Poor/ineffec0ve investments, poor service delivery ↓ Non-‐fulfillment of the needs of the popula0on ↓ (a) consumer discrimina#on – the underserved & (b) consumer frustra#on – the “badly served”
↓ Low revenues ↓ Ul0mately, leads to water insecurity, threatening human
lives & sector sustainability
The Role of Regula0on in Ensuring Water Security (1)
Protec0ng consumers by 1. Ensuring same minimum standards for all through formaliza#on
of services
2. Se[ng, monitoring & enforcing service standards; inter alia rela0ng to risk mi0ga0on (water quality, availability)
3. Approving jus0fied tariffs for financial sustainability 4. Ensuring cost effec#ve & efficient mgmt. & opera#on of services
5. Ensuring value for money and impact in investments
The Role of Regula0on in Ensuring Water Security (2)
Protec0ng consumers by 6. Ensuring sound corporate governance 7. Holding u#li#es accountable (public
repor0ng, enforcement)
8. Monitoring performance and spurring yards#ck compe##on (u0lity ranking)
9. Empowering consumers through ins0tu0onalised engagement mechanism
Trend in Water Access in Urban Kenya
40 42
60 60 63 70
0
10
20
30
40
50
60
70
80
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11
% W
ater Coverage
Year
Improvement over Time (21 main urban WSPs)
Trends in Kenya’s Water Sector Budget
Water Sector Budget (MWI)
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2005/06
2006/07
2007/08
2008/09
2009/10
2010/2011
2011/2012
Fiscal Year
Ksh
Mill
ions
Recurrent
Development
Total
2/3 donor Contribution
Regulatory Risks
§ Non-‐conducive policy environment § Regulatory capture (vested poli0cal interests, powerful
agents, internal corporate governance)
§ Financial and managerial autonomy § Lack of capacity to balance actors’ needs § Legi0macy from consumer perspec0ve