Performance financing for reliable last mile rural water access 28 August 2019 | World Water Week
About ‘Uptime’ Uptime is a global consortium working to deliver drinking water services to millions of rural people through long-term, performance-based funding to achieve Sustainable Development Goal 6.1.
Session Objectives 1. Discuss recent developments in understanding the performance of rural water maintenance providers. 2. Explore how better data on service provider performance might unlock new sources of long-term funding to sustain services in rural and remote contexts.
Speakers Agenda • Dr Duncan McNicholl , Uptime 1. Welcome and outline • Dr Alex Money , University of Oxford 2. Presentation on Service Provider Panelists performance-based funding for reliable rural water • Cliff Nyaga , FundiFix services in Africa • Adrienne Lane , Water for Good • Nicolaas van der Wilk , UDUMA 3. Panel: service providers • Lara Lambert , Water Mission • Elizabeth Buhungiro , Whave 4. Panel: government and donors Government and Donor Panelists • Eng Joseph Oriono Eyatu , Government of 5. Q&A and audience survey Uganda • Abbie Jones , USAID 6. Summary and closing remarks • Regina Rossmann , GIZ
Which type of org do you represent • Government • NGO • Private Sector • Donor • Academic • Other
Statements to agree/disagree with • 100% of maintenance operational costs can presently be met by user payments in all contexts • Concessionary funding is required at scale to maintain rural water services to achieve SDG 6.1 • New sources of funding can be unlocked if service provider performance can be objectively measured and verified
Working Paper https://www.smithschool.ox.ac.uk/r esearch/water/report- performance-based-funding.html
Study Scope
Multiple factors influence levels of cost- recovery and most service areas do not break even on operating costs
Finding 1: Waterpoints maintained by service providers aa were functional over 90% of the time, significantly outperforming the regional average
Service providers outperformed the regional functionality average by ~ 20 percentage points
> 90% of breakdowns in preventive + rapid response service models repaired within 3 days
Order of magnitude improvement from a month to less than 3 days to repair infrastructure Modal Breakdown Duration: Service Providers v. Regional Performance Regional Modal 30 Days Breakdown Duration: ~30 Days (range: 13 – 214 days) Ghana (Whittington, et al., 2009) Kenya (Hope, 2015) (Foster and Hope, 2017) ≤ 3 Days Malawi (Kleemeier, 2000) (Chowns, 2015) Zimbabwe (Hoko, 2009) Rwanda (Nagel, et al., 2015)
Finding 2: a Water users paid some but not all of the costs
Water users paid ~USD 310,000
The total shortfall was ~ USD 890,000
Finding 3: a Most service areas do not fully recover operational costs from user revenues
Cost recovery is calculated using ‘Working Ratios’
Most service areas do not break even on operational costs
More analysis is needed on the multiple factors that influence working ratios
Implication 1: a Institutional design is a key determinant of operational and financial performance
Implication 2: a The investment case must consider financial, economic and social impacts
Multiple factors influence levels of cost- recovery and most service areas do not break even on operating costs
The focus on operating ratios recognises the ongoing requirement for capital investment Projected need for increase in operations and maintenance funding as capital investment needs decline towards 2030 (Hutton and Varughese, 2016)
We define ‘Investment’ as the funding to deliver social, economic & environmental returns to achieve SDG 6.1
Estimated 1m people served Water services maintained for around USD 1.20 per person, per year
More Data can improve both quantum and return on Easier Better investment, by DATA reducing asymmetry Often Faster
Our hypothesis: a Reducing information asymmetries… …by quantifying the opportunity to fund service providers… …can unlock new sources of concessionary funding to provide long-term resources for reliable rural services.
Service Provider Panel Cliff Nyaga Director , FundiFix Adrienne Lane Chief Strategy Officer, Water for Good Nicolaas van der Wilk Operations Manager , UDUMA Lara Lambert Director of Community Development , Water Mission Elizabeth Buhungiro Communications and Learning Coordinator , Whave
Service Provider Panel Cliff Nyaga Director , FundiFix Why do services maintaining handpumps Adrienne Lane have lower working ratios? Chief Strategy Officer, Water for Good Is piped infrastructure Nicolaas van der Wilk necessary to achieve higher Operations Manager , UDUMA working ratios? Lara Lambert Director of Community Development , Water Mission Elizabeth Buhungiro Communications and Learning Coordinator , Whave
Service Provider Panel Cliff Nyaga Director , FundiFix Adrienne Lane What effect does the Chief Strategy Officer, Water for Good institutional environment Nicolaas van der Wilk have on your ability to Operations Manager , UDUMA recover operating costs? Lara Lambert Director of Community Development , Water Mission Elizabeth Buhungiro Communications and Learning Coordinator , Whave
Government and Donor Panel Eng. Joseph Oriono Eyatu Commissioner, Rural Water Supply & Sanitation Department, Ministry of Water and Environment, Government of Uganda Abbie Jones Water & Sanitation Advisor , USAID Regina Rossmann Sustainable Water Policy Advisor, GIZ –
Government and Donor Panel Eng. Joseph Oriono Eyatu Commissioner, Rural Water Supply & Sanitation Department, What can governments do Ministry of Water and Environment, to help service providers Government of Uganda improve operational and financial performance? Abbie Jones Water & Sanitation Advisor , USAID Regina Rossmann Sustainable Water Policy Advisor, GIZ –
Government and Donor Panel Eng. Joseph Oriono Eyatu Commissioner, What potential does better Rural Water Supply & Sanitation Department, service provider Ministry of Water and Environment, performance data have to Government of Uganda improve investment decisions and unlock new funding sources? Abbie Jones Water & Sanitation Advisor , USAID Regina Rossmann Sustainable Water Policy Advisor, GIZ –
Q&A
Our hypothesis: a Reducing information asymmetries… …by quantifying the opportunity to fund service providers… …can unlock new sources of concessionary funding to provide long-term resources for reliable rural services.
1: Long-term funding can be secured if the cost and reliability of rural services is clearly quantified and verified
2: Funders are willing to provide resources to achieve economic and social impact at scale rather than financial returns
3: USD 10+ million in concessionary funding could be committed annually to fund rural services for millions of people
Intended Workplan Jan – Jul 2019 Sep 2019 – Sep 2021 Research Design Assess current Design the architecture and investment performance of rural prospectus of the performance-based service providers. funding mechanism.
Intended Workplan Jan – Jul 2019 Oct 2021 and beyond Sep 2019 – Sep 2021 Research Design Launch Assess current Design the architecture and investment Secure long-term funding for performance of rural prospectus of the performance-based services and and launch service providers. funding mechanism. performance-based funding agreements with service providers.
What Next • Building a database of service provider performance • 2015-2019 • To include Asia by year end • Testing remote monitoring systems for verifying uptime metrics • Deepening analysis of factors that affect service performance
Maintenance Contract Status by Distance to Nearest Pump and Population within 1 Km Inactive Unsubscribed Active
Contacts Cliff Nyaga Adrienne Lane Adam Harvey cliff@fundifix.co.ke alane@waterforgood.org adam.harvey@whave.org Rob Hope robert.hope@ouce.ox.ac.uk Duncan McNicholl dmcnicholl@uptimewater.org Alex Money Mikael Dupuis Andrew Armstrong alex.money@smithschool.ox.ac.uk M.DUPUIS@vergnet-hydro.fr aarmstrong@watermission.org
Uptime Contributors FundiFix University of Oxford Water Mission Cliff Nyaga Prof. Rob Hope Seth Womble Jacob Katuva Dr. Alex Money Andrew Armstrong Dr. Johanna Koehler GIZ Patrick Thomson Whave Ulrike Pokorski da Cunha Dr. Adam Harvey Katrin Gronemeier Uptime Elizabeth Buhungiro Regina Rossmann Dr. Duncan McNicholl UDUMA & Vergnet Hydro Water for Good Mikaël Dupuis Adrienne Lane Nicolaas van der Wilk Donavon Favre Thierry Barbotte Jon Allen
Contact form
Recommend
More recommend
