Expanding Services to the Urban Poor:Global Lessons

Glenn Pearce-OrozSr. Regional Team Leader

Latin America & the Caribbean

5th World Water ForumIstanbul 2009

2

Urban Poor Nearly 1 in 3 city dwellers (~1 billion

people) live in informal settlements

Secondary Cities & Peri Urban Areas About 75% of population growth will be in

cities of less than 5 million

Number of towns with population under 200,000 in Africa, Asia, and Latin America expected to double within 15 years

Large Numbers Of Those Who Lack Access Live In Urban Areas

Source: World Development Indicators; World Bank estimates

ChallengesRapidly Expanding Urban Population

3

Differences between regions…

Urban Poverty: Regional Disparitites

ECA, 32m

EAP, 126m

China, 53m

MNA, 20m

LAC, 111m

SSA, 168m

SAR, 297m

0%

20%

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60%

80%

100%

0 2 4 6 8

Urb

an

Po

or

un

de

r P

ov

ert

y L

ine

(%

)

Source: Baker, Urban Poverty: A Global View (2008)

4

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20.00

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120.00

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180.00

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Served 2000 Added not served 2015

Pop

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tion

in

m

illion

s

50% in 5 largestNigeriaEthiopiaRDCSouth AfricaTanzania

75% in 13 largest+ Kenya Sudan Uganda Ghana Mozambique Madagascar Cameroon Cote d'Ivoire

90% in 22 largest+ Angola Burkina Faso Zimbabwe Mali Malawi Niger Senegal Zambia Rwanda

…and diversity within Regions: Africa WSS Challenge

5

Financing Gap

Growing urban populations are widening the WSS financing gap

Estimated annual need for investment and maintenance over $110 billion

Annual Investment Needs: WSS

0.00

5.00

10.00

15.00

20.00

25.00

Water Sanitation Waste Water Rural WSS

US

D b

n

Maintenance

Capital

Source: World Bank estimates

Private sector investment in infrastructure is increasing, but

not in Water

6

Is it only about resources?

Note: No Project are sanctioned for Parking Lots/ Spaces & Prevention and Rehabilitation of Soil Erosion

JNNURM Sectorwise Projects

102

65

3730

66

1612 8

1 10

2000

4000

6000

8000

10000

12000

14000

Wate

r Supp

ly

Sewer

age

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torm

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lyove

rs

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t Sys

tem

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an T

rans

port

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Ren

ewal

Develo

pment

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reas

Prese

rvat

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of Wat

er B

odies

Rs.

Cro

re

0

20

40

60

80

100

120

# P

roje

cts

Cost of projects sanctioned

Number of projects sanctioned

Source: Gov of India, April 2008

7

What are the other obstacles?

What are existing successful practices?

How to channel knowledge to the front lines?

8

9

How were Guidance Notes developed

Consultations with Urban

Poor

Review of global initiatives that

have been successful in

improving services to the poor

Consultations with other

stakeholders

Guidance Notes on services for the urban poor

They Include:

Guidance Notes

• Assessment of barriers

• Practical actions and strategies for

Policy Makers and Project PlannersGovernance Bodies and Service ProvidersAdvocates and Civil Society Organisations

International Case Studies

• 19 case studies

Resources

• Relevant publications and organizations

10

Obstacles to Improving Services

Promote meaningful participation in planning and design

Publish/acknowledge stories of the poor

Inform & educate poor communities

Empower poor to act beyond their communities

No Voice for the Poor

1

Vested Interests

2

Administrative and Legal Barriers

3

Incorporate informal service providers into the solution

De-link service provision from land tenure

Institutionalize simplified procedures and provide assistance

11

Obstacles to Improving Services

Low Capacity, Little Autonomy and

Accountability of Service Providers

4

Separate and clarify the responsibilities of the actors

Recognize and work with alternate service providers

Introduce accountability mechanisms

Build capacity

Lack of Appropriate Financial Policies

5

Physical and Technical Barriers

6

Adopt realistic cost recovery policies and targeted subsidies

Subsidize investments, not consumption

Restructure charges and payment practices to accommodate poor households ability to pay

Provide finance for small scale providers

Protect water resources

Alternate technology and delivery systems

12

Practical actions and strategies…

Water Kiosk Operators Unite in Nairobi, Kenya

Strategy

Incorporate Informal Service Providers into the Solution

Practical action

Obstacle

Vested interest by some actors prevent better services for the poor

Vested Interests

2

Results

Over 350 kiosk operators formed association to negotiate with NWC

What was done?How was it done?What made it work?

13

Practical actions and strategies…

Strategy

Enabling policy environment through

Organizational restructuring to build capacity of service provider and increase interface with community

Practical action•Systematic public meetings at the neighborhood level•Embed Social Development Unit in Water Board,•Proof of occupancy instead of formal tenure documents for new connections,in Banglaore, Karnataka, India

Obstacle

Results46 poor communities, of which more than half have successfully connected

For the utility increased consumer and revenue base, regularized illegal connections, and reduced non-revenue water.

For the slum dwellers better quality of water supply, increased customer responsiveness

What was done?How was it done?What made it work?

Low Capacity, Little Autonomy and

Accountability of Service Providers

4

How to introduce accountability mechanisms and build capacity

14

Getting Started Policy makers

Authorize alternative documentation requirement for connections to the poor

Make information available to poor in easy formats Service providers

Hire informal vendors to work with the utility for expanding services and ensuring cost recovery

Create user-friendly units to promote services to the poor

Community based organizations Assist poor residents to obtain necessary

documentation for connections

15

How to link global learnings to front line service providers

Between service providers Between countries Between regions

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gpearceoroz@worldbank.org