Building Collective Actionagainst corruption in thewater sector#WWWeek 2019

Building Collective Actionagainst corruption in thewater sectorJames Leten – Senior Programme Manager - SIWI

What is ‘Collective Action’?

Prof. Elinor Ostrom – in « Governing Commons »:

« Collective action occurs when more than one individual is required to contribute to an joint effort in order to achieve an outcome.”

2004. International Food Policy Research Institute, FOCUS 11, BRIEF 2

Collective action problemWhen individuals seek out short-term,self-centered benefits … without contributing.

“Benefiting without paying the costs”.

How can we limit freeriding?

Not to miss the collective benefits?

1. Number of participants

2. The generated benefit of participation (important rapid return on investment ?)

3. Heterogeneity of members

4. Communication

Structural variables - Prof E. Ostrom

Why looking at corruption as a « Collective Action » problem?Because …

… progress in understanding human behaviour

… similarities between “governance of integrity” and “governance of commons”

… individual benefits are higher when actors collaborate to suppress corruption.

Paradigme shift after a decennia of poor perfomance of anti-corruption initiatives

© SIWI | siwi.org

Principal-Agent:

• Principal delegates the responsability of integrity to agent

• Self-interested humans

• Incentive: fear of beingpunished;punishment cost is greaterthan benefits of corruption

Change of paradigme

© SIWI | siwi.org

Principal-Agent:

• Dependency on principledPrincipals

• Existence of many principals withdiverging interests

• Conflict of interests betweenPrincipals and Agents

• Expensive monitoring individuals

• Difficult in weak institutionalenvironnement with lowcapacities

Limitations

© SIWI | siwi.org

Principal-Agent:

• Principal delegates the responsability of integrity to agent

• Self-interested humans

• Incentive: fear of beingpunished greater than benefitsof corruption

Collective action:

• Looking for a collective behaviour change

• Humans interested in collective benefits

• Building COMMON GOOD

• Building interpersonal trust and trust in institutions

• Impartiality / professionalism

Change of paradigme

© SIWI | siwi.org

• Common agenda / shared vision ->Water governance agenda

« Appeals to head and heart, and hands »

• Shared measurement system -> agreed indicators to measure success

• Mutually reinforcing activities -> recognise interconnectedness of actors and outcomes

• Continual and open communication -> building trust and commonvocabulary

• Backbone support organisation -> dedicated and skilled staff to manage the above points

Characteristics of a collective action

Ex. National Water Integrity

Coalition

« Collective actions » have their own challenges

In having a

Common understanding of context and problem

Common expression of norm change desire

In developing a coherent CA enabling framework

Minimizing freeriding

Continuouslybuilding trust

we do …we can …we want …

change

CHANGE process

Water Integrity Risk Assessments and Analysis

Consensus building

Commitments, planning &

coordination

Implementation and

institutionalization of reforms

achieving

Water Governance Coalitions

Expressed demand for improved water governance

Common vision on desired water governance

National Water Governance agendas

National good water governance principles, standards and guidelines

Water integrity risk assessments

Capacities and action plans developed for strengthening of accountability mechanisms

Action plan enforced

Governance standards applied

Successes and failures monitored, assessed and analysed

Knowledge generated and shared

Poor Water Governance

IMPROVED STATETRANSFORMATION

Social intolerance to corruption. Intolerance

is loudly voiced

Integrity is the “new norm”

Good governance in practice

© SIWI | siwi.org

• Strong commitment from individuals

• Increasing requests from national WRM & WSP institutions

• No national agendas on water governance

• Key to Sustainable Management of water resources and service provision

• A solution to Non-Revenue Water

Conclusions From SIWI’s Water Integrity Capacity-Building Programmes

http://watergovernance.org/Programmes/water integrity /MENA

ShukranMerciThank you

!

Contact: james.leten@siwi.org

Laos : Improving Integrity in water utilities through ISO normsDr Avi Sarkar, UN-Habitat

To enhance efficiency, transparency and accountability of water utilities of theMekong Region

Main actions:

• Adoption of Quality Management Systems, leading to certification of selected

water utilities to ISO 9001:2015;

• Integrity trainings

OBJECTIVE

3 Countries of the Mekong basin:

▪ Cambodia

▪ Laos

▪ Vietnam

GEOGRAPHIC SCOPE

Ministry of Public Works and Transport

Water Utilities

UN-Agencies

Communities

▪ The project created synergies between

different stakeholders involved in water

management

▪ A regional study was conducted to determine

the current standards of operation and

identify ways to improve performance

FRAMEWORK

National level capacity building on ISO 9001:2015 in

Cambodia, Laos and Vietnam.

- Quality Management System trainings in 12

public water supply utilities.

- 2 water supply utilities selected for ISO 9001certification: Kampong Cham in Cambodia and

NPSE Attapeu in Laos.

- 2 Quality Manuals developed.

- In 2018 NPSE Attapeu in Laos was awarded the

ISO certification for quality management

systems. The certification is the first of its kind

for any water utility in Laos.

ISO 9001:2015

WATER INTEGRITY

Capacity building of national and sub-national water

utilities on water integrity so as to enhance operational

and management efficiency.

- Trainings provided to 10 national officials and 30

water utilities officials from 12 target cities.

- Strategy Framework for Water Supply and

Sanitation Sector in Emerging Towns developed.

5 Collective Action Variables for success were incorporated:

• The heterogeneity of participants was essential for getting better outcomes. Female

and male local authorities, as well as officers from water utilities and UN-Habitat were

involved in the whole process;

• Workshops with small number of participants were preferred, in order to improve the

quality of the training;

• Workshops and meetings were designed in order to having face-to-face communication

that allowed effective follow-up of the processes;

• Trust was built through the dissemination of information among the stakeholders

involved;

• Benefits of water integrity were explained in the trainings to all participants.

LESSONS LEARNED

THANK YOU

Kenya: Improving Integrity in the water sector through regulationEng. Peter Njaggah, Director, Technical Services, Water Services Regulatory Board (WASREB)

The KENYAN Constitution and Water Act 2016

Actions against corruption are well grounded in the

constitution and the primary law

Article 10: National values and principles of

governance (transparency & accountability)

Chapter 4: Bill of rights- right to safe and adequate

water. Right to reasonable standards of sanitation.

Chapter 6: Leadership and Integrity- Accountability

to the public for decision and actions.

Wasreb is one of the organisations created under

legal framework with a mandate to regulate water

service provision.

Key integrity issues in the sector

NRW among utilities at 41%

More than 60% of the utilities still do not recover

O&M costs and have outdated tariffs

Non-compliance with appointment process of utility

boards/corporate governance guidelines

Conflict between national and county governments

over roles in asset development

Sector reporting process has stalled

August 27, 2019Water Services Regulatory Board

34

ROLE OF WASREB

▪ Licensing Water Service Providers (WSPs)

▪ Setting standards for provision of water services (access, governance, tariffs, service)

▪ Monitoring the implementation of standards set, incl. the implementation of the National Water Services Strategy

▪ Facilitating information provision on water services (Development of data base incl.WARIS, Majidata, Majivoice; public reporting, participation, Redress/Complaints)

▪ Enforcing compliance to standards set, incl. prosecution of offences

▪ Advising Cabinet Secretary on matters of water services

INSTITUTIONAL FRAMEWORK

Consumers, Users

National Water

Storage Authority

(NWSA)

Water

TribunalWater Sector

Trust Fund

(WSTF)

Ministry of Water and Sanitation

Water Resources Authority

(WRA)

Water Services Regulatory Board

(WASREB)

Basin Water Resources Committee

(BWRC)

Water Works Development Agencies

(WWDAs)

Water Resources User Associations

(WRUAs)

Water Services Providers

(WSPs)

Natio

na

l Le

ve

lR

eg

ion

al

Le

ve

lL

oca

l L

evel

Policy

Form

ula

tion

Regula

tion

Serv

ice P

rovis

ion

Consum

ption, U

se

Upward feedback/ engagement/

complaints resolution

Sensitization

Water Action

Groups

(WAGs)

ESTABLISHMENT OF WATER ACTION

GROUPS in 2010.

Sensitisation and information

▪ Assist in providing information on WSS services & building consumer awareness on rights & responsibilities

Consultation, participation

▪ Institutionalize consumer participation in planning and services

Complaints resolution and feedback

▪ Empower consumers, give them a voice, improve accountability

▪ Support WASREB in monitoring compliance with service standards

Community-based volunteer groups designed to facilitate

A central web portal

orders, tracks and

escalates complaints

Customers

submit

feedback to

portal with

basic mobile

phones

Regulator generates

reports for analysis on

systemic sector

problems for decision

making and

recommendation

Utilities receive and resolve

complaints through internal

work flow; feedback to

customers; WAGs monitor &

periodically engage

COMPLAINTS HANDLING:

E-SYSTEM (MAJIVOICE) DEVELOPED

Benchmarking

Utilities (WSPs)

Commercial:

Water Coverage

Sanitation Coverage

Non-Revenue Water

Metering Ratio

Service level:

Drinking Water Quality

Hours of Supply

Financial:

O+M Cost Coverage

Collection Efficiency

Personnel Expenditures as % of O+M Cost

Personnel: Staff Productivity

Corporate governance

Creditworthiness

Pro poor indicator38

Sector benchmarks (good/acceptable/not acceptable) have, inter alia, been defined for the following key performance indicators (KPIs):

≥90% 30

≤50% 0

≥90% 15

≤50% 0

≥95% 10

≤90% 0

≥95% 5

≤90% 0

≥95% 10

≤90% 0

≥95% 5

≤90% 0

≥20 20

≤10 0

≥16 20

≤6 0

≤20% 25

≥40% 0

≥150% 25

≤90% 0

≥95% 20

≤85% 0

≤5 20

≥8 0

≤7 20

≥11 0

≤9 20

≥14 0

100% 15

≤80% 0

200

Perf

orm

ance

Scor

e

N/A N/A

Indicators

1 Water Coverage

Sector Benchmarks Scoring Regime

Goo

d

3

Compliance -

Residual Chlorine>95%

Acce

ptab

le

Not

Acc

epta

ble

>90% 80-90% <80%

90-95%

90-95% <90%

2 Sanitation Coverage >90% 80-90% <80%

Drinking Water Quality

>95% 90-95% <90%No. of tests -

Residual Chlorine

No. of tests -

Bacteriological Quality>95% <90%

>95% 90-95% <90%Compliance -

Bacteriological Quality

6 O+M Cost Coverage ≥150%

8

4 Hours of Supply

Population >100,000 21-24

Population <100,000 17-24

5

7

<9Medium & Small (3 or

more towns)

>95%

Non-Revenue Water

40-45% >45%

<20%

<30% 30-40%

>30%

>40%

>14

20-30%

<7 7-11

Total Maximum Score

9 Metering Ratio

Personnel Expenditure

as Percentage of O&M

Costs

10

Large and Very Large

Companies

Medium Companies

Small Companies

100% 95-99% <95%

<40%

<20% 20-25%

16-20

12-16

Staff Productivity (Staff

per 1000 Connections)Medium & Small (less

than 3 towns)

Large & Very Large

Companies

Collection Efficiency

<5

85-95%

100-149%

5-8

9-14

<85%

>8

>11

<16

<12

≤99%

>25%

HOW SECTOR PERFORMANCE ARE USED:

PERFORMANCE REPORTING

❑ Competition among utilities

❑ Accountability to the public

❑ Cabinet Secretary, parliament, county governments and donors use the data for decision-making and reporting

❑ Media takes data to highlight issues in the sector, incl. integrity

39

PRIORITY ISSUES FOR WASREB

▪ Licensing of WSPs

▪ Strengthening Governance in Sector

▪ Ensuring financial sustainability in sector

▪ Regulating small scale providers/community water supply systems

▪ Developing regulatory framework for sanitation

▪ Pro-poor Regulation

▪ Enhancing compliance to Regulations

▪ Strengthening Institutional Capacity

Thank you

njaggah@wasreb.go.ke

Egypt: Experiences in waterintegrity and anti corruptionpracticesGhada Abd El Wahab, General Manager, Holding Company for Water and Wastewater

Eng. Rasha Zakaria , Senior Advisor Water and Wastewater Management Programme. German International Cooperation (GIZ) GmbH

43

HCWW was established in 2004 with the mission of

Managing the Water and Wastewater Companies to provide services according to the Egyptian standards and following sustainable economical and developmental basis.

Number of Affiliated Companies : 25

Water service Coverage : 97%

Wastewater service Coverage : 50%

Number of Employees : 133,000

Egypt Population 99 Million

Service region : 27 Governorates

Challenges

Poor collection

rates

Excess number of employees

Large number of

illegal connections

Low customers’ satisfaction

rates

Wasting resources (Natural/ Financial)

Water Integrity (WI) - Background

2015 - 2016

2017 - 2018

2019 - 2021

Setting anti-corruption system

Building institutional & individual capacitiesSelected processes standardization

Processes standardization on sectoral level

WI Approach and Implementation

• Individual meetings

• Advocacy sessions

Management commitment

• Teams identification

• Capacity building

WI Departments • Regional WGs

• Risk analysis

• Prevention measures

• Action plans

Process Analysis

• Process revision

• Sharing with Acs

• Standardization nationwide

Process Standardization

Outputs

• Institutional development and capacity building

– 25 WI departments, 70 employees

– 37 capacity building measures

– Networking and experience sharing activities.

Achievements (cont.)

• Supporting tools

– 9 Toolboxes for risk analysis

– 2 Best practices handbooks

– Awareness Raising tools (banners, posters, “Ideal Worker” competition).

• Results

– 22 Analyzed processes in a participatory way.

– 10 Standardized processes at the national level.

Success Stories

Standardized Recruitment procedures for all ACs (HCWW)

Commercial Manual for all ACs (HCWW)

Bar Code for meter reading (QR) (Gharbia Company)

Reallocating excess Staff (Alex Wastewater Company)

Collaborating with the Government in drafting the first Egyptian integrity and transparency law

Besides being a prime cause of poor economic growth, poor governance breeds corruption, which cripples investments, wastes resources and

diminishes confidence.

Ahmed ZewailEgyptian Scientist1999 Noble prize winner in chemistry

Thank you for your attention ☺

ستماعكم ن ا س ☺شكرا لح

Mrs. Ghada Abd El Wahab

HR Development &Water Integrity General Manager

Holding Company for Water and Wastewater –HCWW-Egypt

Email: ghada.awahab@hcww.com.eg

Eng. Rasha ZakariaSenior Advisor and Deputy Head of Programme

Water and Wastewater Management Programme, GIZ

Email: rasha.zakaria@giz.de

Argentina: Anti-corruption, an institutional change

José Luis Inglese, President, AySA Buenos Aires Water Utility

WHAT IS AYSA

Area of action

AySA is the main Company that provides drinking water and sanitation services in Argentina, leader in the Region and one of the largest providers in the world

Inhabitantsof the concession

14,3 million

Areaof the concession

3.300 Km2

Buenos Aires Cityand

Municipalities of26Buenos Aires Province

52 KM

ORGANIZATIONAL STRUCTURE

MODEL FOR A MANAGEMENT OF EXCELLENCE

Commitment to Quality

Objetive: • Reach 100% of the Company under a Certified Quality Management System

IMPLEMENTED STANDARDS

ISO 9001Quality Management Systems.

ISO 14001EnvironmentalManagement Systems.

OSHAS 18001Occupational Health and Safety Management System.

ISO/IEC 17025Technical Competencefor Calibration and Testing Laboratories.

Central Laboratory and Water Meter Calibration Laboratory.

IRAM 13 and 90003Application Guides.

2014

2017

“National Award

for Quality”

“Impulse Idea Award 2017”

Recognitions

2016

“Citizenship Business Award 2017”

2017

“Ibero American Quality Award”

Awarded by FPNC

Awarded by

FUNDIBEQ

Awarded by AmCHAM

2017

“Excellence and Leadership 2017”

Awarded by MAGAZINE

CALIDAD EMPRESARIA

2018

“Global WaterAwards 2018”

Awarded by

Global Water Summit

Awarded by IDEA

u$s 702 millionIN OPERATING COSTS

Results as of 31-Dec 2018

AYSA IN FIGURES

For the first time since 2008, The company has achieved a

BREAKEVEN POINT

u$s 704 millionIN INCOME

Results as of 31-Dec 2018

El Jagüel Wastewater Treatment Plant - Esteban Echeverría - Buenos Aires - Argentina

Southwest Wastewater Treatment Plant –La Matanza - Buenos Aires - Argentina

HOW IT PROVIDES SERVICES

Gral. San Martín Water Treatment Plant -Palermo - Buenos Aires - Argentina

Juan Manuel de Rosas Water TreatmentPlant - Tigre - Buenos Aires - Argentina

SANITATION

115WORKS

COMPLETED

DRINKING WATER

87 WORKS

COMPLETED

91WORKSUNDER EXECUTION

73WORKS UNDER EXECUTION Water3 Treatment Plants

+500Groundwater Pumps

DRINKING WATER

Average Production

5,9 million

m3/day

Water Network

+23.000

Waste WaterTreatment Plants21

SANITATION

Average Treatment

2,6 million

m3/day

Sewerage Network

16.000

kilometers

+kilometers

Wastewater Treatment Plant

Expansion Hurlingham

u$s 76 M*

al servicio de agua desagües cloacales

Expansion SOUTHWEST

Wastewater Treatment Plant

INVESTMENT

259.200Average Treatment

m3/día

4 7

Works at the OLYMPIC VILLAGE

NEEDED INVESTMENT IN INFRASTRUCTURE

METROPOLITAN AREA PLAN

Objectives

Total Investment

People

to the water service to the sewerage service

4.000.000 7.000.000 People

Incorporate Incorporate

270.000Inhabitants Served u$s 74 M*

INVESTMENT

4.800Inhabitants Served

Fiorito Lanús

Wastewater Treatment Plant

Total Investment

u$s 12.000 M

Wastewater Treatment Plant

MORE THAN 200 TENDERS PER

YEAR FOR $500 MILLIONS

THE FORMER PROBLEM

1. PRINTED FOR CONSTRUCTION WORKS “TOR” HAD

TO BE BOUGHT AT HEADQUATERS OF THE COMPANY

2. TENDERERS AND OFFICIALS OF THE COMPANY

KNEW WHO WERE GOING TO PRESENT PROPOSAL

3. OFTENLY TENDERERS AND OFFICIALS ARRANGE

WHO WILL BE THE WINNER AND INCREASES PRICES

AND REDUCE THE NUMBER OF FIRMS TO SUBMIT

PROPOSALS

THE SOLUTION

1. SIMPLIFY THE PROCCESS TO BE ADMITED AS

TENDERER AND ON LINE INSCRIPTION

2. “TOR” PUBLISHED FOR FREE IN THE COMPANY´S

WEB PAGE AND COULD BE DOWNLOADED

ANONIMOUSLY

3. NOBODY KNEW WHO WERE GOING TO PRESENT

PROPOSAL UNTIL CLOSING DATE AND HOUR

THE KEYS

1. COMMITMENT FROM THE TOP

2. REDUCED BUREAUCRACY

3. TECHNOLOGY TO FACILITATE TRANSPARENCY

RESULTS

1. MORE PROPOSALS PER TENDER PROCCESS:

AVERAGE FROM 3.7 to 7.1

2. MORE COMPETITORS: 208 DIFFERENT FIRMS IN

203 PROCCESES FROM 2016 TO 2018

3. LOWER PRICES: WINNER OFFER FROM +9% TO

-21% COMPARED WITH ESTIMATED BUDGET

Questions?

Group discussion

SIWI: An integrity collective action at national level requires collaboration between different type of actors: regulators, municipalities, water utilities, CBOs, … how would you initiate and/or facilitate these interactions? Could you share your lessons about what works / what doesn’t work?

LAOS: Raising the integrity of an organisationcould be the product of a collective action. Which different individual benefits for the different staff members would you identify that would aid in their engagement

KENYA: Civil society play important roles in water resources management and services delivery, and definitely also in addressing anti-corruption, for example in social accountability. Where and how could civil society support anti-corruption efforts of regulators, utilities or private sector?

EGYPT: A collective action requires an enabling environment. How could a policy and legal framework create more space for anti-corruption and integrity collaboration

ARGENTINA: Contributing to a common objective requires that individuals and organisations trust each other. They should trust that the other parties contribute at the expected level. What would you propose as trust building activities and processes?

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Closing Remarks

Diana Cáceres, Latin America Coordinator

Thank you!

#WWWeek 2019