sustainable development goals - finding solutions for water sector in africa
TRANSCRIPT
Definition of Development• Development - Not restricted to Economic Development
(Jobs ,Economic Growth, Infrastructure) but covers a whole gamut of human life enveloping human development (Education, health care, poverty & hunger),
Social Development (Potable Water, Gender Equalities, Peace & Justice)
& Environmental Development(Clean Energy, Forest Cover, Water Conservation & sustaining a co-exisiting ecosystem with other species)
Development - Summary
• Covers following aspects – • Human Development• Social Development• Environment Development & also• Economic Development
All aspects covered in 17 SDGs to be implemented from 2016-2030
Financing Challenge for SDGs• Financing Challenge arises mostly from the
following -1. Development needs hugely surpass the MDB
commitments of ODA & IDA2. Ineffective Domestic Resource Mobilisation in
Developing Countries3. Illicit Financial flows of Multinational Corporations4. Bringing Private Sector on-board to make for
deficit in financing the SDGs
Bringing Private Sector On-board
Private Sector Will Invest in SDGs Implemetation only if – • Favourable Risk Vs. Return Considerations &• Good Business Climate
Bringing Private Sector On-board• Factors for Good Investment Climate
Public Finance
Private Finance
• Improvement in ease-of-doing business
• Independent judiciary• Consistent Tax Policy• Effective , transparent & unbiased
Tax Administration• Institutional Reforms• Land & Labour Reform• Risk de-coupling & Mitigation
Avenues• Scope for Financial Return on
investments• Effective Public Finance Policy
through stable macro economic management
• Corruption –free Administration• PPP Project Pipeline & legal
framework for a thriving PPP climate
SDGs & water Sector
• 6th SDG
CLEAN WATER & SANITATION
ENSURE AVAILABILITY & SUSTAINABLE MANAGEMENT OF WATER & SANITATION FOR ALL
Water Sector in Africa
• Public Sector Utilities / Corporations or Government Depatments• Hugely inefficient & unsustainable
operations• Financial losses mainly due to huge
distribution losses to the tune of 60-70%
Major Challenges
• Highly indebted/subsidised with huge losses• Distribution losses very high with obsolete
distribution network rendering projects financially unsustainable
• Uncertain service level due lack of financing• Political interference• Absence of Institutions• Low level of skill & capacity development• Community Relationship & Communication
A Chartist’s View of Financial Concern
Water Intake Water Production Water Billied Revenue Collected Production Cost0
20
40
60
80
100
120
140
120 118.8
50
40
65 Series1
WAT
ER
UTI
LITY
R
EVEN
UE
LO
SS RAW WATER
INTAKE
DESPATCHED WATER PRODUCTION
BILLABLE WATER
BILLED WATER
PRODUCTION LOSS
MAIN LINEDISTRIBUTION LOSS
CONSUMER LINE DISTRIBUTION LOSS PAID
WATER
UNPAID BILLED WATER
WAY FORWARD• PPP is envisaged as the way forward• Role of Government is to play stewardship in
encouraging Private Sector Investment, especially in Distribution & Commercial area.
• Role of Private Sector is to enhance productivity in Distribution, Billing & Collection.
• Scope for Innovative Financing through Philanthropy in Community Relationship, Communication Outreach, Skill & Capacity Development and Environmental Issues in Water Sector.
Schematic Financing Pattern
TOTAL PROJECT
COST
Government, Institutions, MDB
55-60%
Private Investor
30-35%
NGO5 – 10 %
Capacity building, R & D Operational
Activities
Non-operational Expenses
Role of GovernmentGovernment can play a vital role as under to encourage Private Sector involvement in Water Distribution Area • Improved co-ordination with other state agencies
& Government Contractors• Ensuring security of assets • Enactment of Water Bill to provide space for
independent regulator, to deal with criminal issues in Water Transactions such as illegal connection, unregistered meters, meter bye-pass, etc.
Contd.
Role of Government• Improvement in the economic scenario such as rising
income, new job creation, etc.• Creating framework for PPP model in a way for the Private
Operator to pay for themselves for the Distribution & Densification Project.
• Ensuring professional management by eliminating political post from Management.
• Bringing in Institutional Reforms by setting up Water Sector Regulator, Water Tribunals & ensuring independence of the same
• Fair & transparent Tariff setting procedure Contd.
Role of Government• Centralisation of billing & payment of water
consumption by all Government offices including the autonomus & semi-autonomous State Agencies
• Imposing levy on borehole pumps in areas where service is not available
• Providing authentic Land & Plot data for network expansion
Role of Private Partner• Refurbishment of Plant & Distribution Systems
• Improvement in Distribution, Billing & Collection Efficiency
• Setting-up Smart Bulk Meter Network along all the main lines covering nodal joints and terminal points to facilitate generation of intelligent and actionable data
• Setting-up CRM Software to generate classified data on Customer complaints & the response actions taken
• Maintaining adequate stock of bulk meters & other repair materials on a consistent basis
• To be Contd.
Role of Private Partner• Rationalisation of Staff Payroll and linking incentives to
improvement in Meter Reading exercise
• Mechanism for reprimanding & penalising staff & customers for unscrupulous acts
• latest technology in the area of Meter Reading, Bill Distribution & 24x7 Bill Payment facility, CRM, Internet & Web Services-Private
• Contd.
Role of Private Partner• Adopting newer technology such as GSM,
GPRS, GIS in the area of POS based Meter Reading, on-the-spot billing, assignment of field work, etc.• Implementing active web-based services
such as bill distribution, online payment, Customer complaints, etc.• Implementing POS based collection
through Collection Agents
Role of Philanthropy / NGO
• Enhancing Customer awareness & education on various issues such as importance of timely pament, application of water rate collection, water conservation, etc.• Carrying out Climate & Environmental Study & Water Table Surveys.
Desired Role by MDBs• Providing Project Advisory & Consultation Service
to Government in framing PPP agreements, Risk Identification, Analysis & Mitigation guidelines, advising incentives for Private Investors, Benchmarking the desirous outcome of PPP, Setting roles & responsibilities of all the stake-holders, etc.
• Monitoring & Evaluation Services