Private sector service providers: mainstream or niche? Objectives - PowerPoint PPT Presentation

Private sector service providers: mainstream or niche? Objectives of the session: Contribute to the discussion on the role of private sector service providers in providing sustainable rural water services. • Can it really contribute to better services? • What conditions need to be in place to ensure this? • Is it the new meanstream or does it remain a niche? Le 7 ème Forum du // 7 th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)

When water does not flow, something has gone wrong in the service chain Users/ rights Government/ holders duty bearer Demand Pump Repair Spare part Caretaker/ Drilling – LL Spare part creation/ installation/ persons distribution investments manufacture sellers marketing SL investments

Private Sector Partnerships can help strengthening the service chain 1. ‘Strengthening’ linkages among Chains Pump Drilling – LL Spare part Spare part Demand Repair Caretaker/ installation/ investments manufacture distribution creation/ person seller marketing SL investments 2. Consolidating Parts of the Chain Delegated Management - Affermage Pump Pump Drilling – LL installation/ installation/ investments SL investments SL investments Water Quality?

Several levels of consolidation can take place ≈ Professional service models – integrated value chains Uganda Demand Maintenance Pump installation/ Drilling – LL Caretaker/ Spare part creation/ investments SL investments manufacture seller marketing Benin Delegated Management - Affermage Drilling – LL Pump installation/ investments Burkina SL investments Water Quality? Faso

Services delivery / PPP Management models PPP options vary according to the levels of risks transfer • Management contracts and lease agreements • Concessions contracts: • Transfer of assets or disinvestments 5

Presentations • SA systems approach to sustainable water operation & maintenance in Uganda , Mary Namwebe (GOAL Uganda) • A Systems Approach for Sustainable Rural WASH Services, Adam Harvey (Whave Solutions, Uganda ) • Public Private Partnership for Rural Water Supply: Experiences from Zimbabwe , Dhoba Lovemore (National Coordination /unit) • Action Research on rural water service models through private sector participation, example from Burkina Faso

Action Research on rural water service models through private sector participation Wedenesday 30 November Private Sector: Mainstream or Niche? Fiorella Polo, Wash Advisor, UNICEF 7th RWSN forum Abidjan 29Nov-02 Dec 2016

The Action Research extends delegated management to hand-pumps Handpumps – The model Less densely populated areas requires scale: ~ ---- 130 HP per Less profitable operator v v v +++ More profitable Small Piped Schemes – Rural growth centers

The AR aims at balancing financial viability and good governance Good governance/ Financial accountability viability Autorithies Private operator Communities

Information flow is at the heart of a balanced model Strong accountability pathways An integrated value chain Duty bearer Government Municipality Users association Users Rights Service holders provider

Rapid response tools and sim imple dash-board Functioning T Repaired within 72 hours T Government Go Water quality compliant T Explo Ex loitant Consumption F Income F F Costs Fou ournisseur de de pièces piè

Tariffs were based on consultations, research and sensitivity tests Niankorodougou- 10 yr cumulative income – sensitivity to tariffs Paramètres fixés Op erator’s margin =11% consommation spécifique 7 L/j/hab tarif à la BF 500 F/m3 taux de fuite&recouvrement 1% rémunération des fontainiers 20% des recettes taxe communale 0 FCFA

Payment methods developed based on research Prepaid cards conceived for commonly used containers Caretaker ’s commission =20%

Questions for the audience? • Are private sector service providers the new mean stream, or can this only be applied in specific contexts? • What are the key elements / conditions for private sector service provider involvement in providing sustainable services at scale? • At community level (right holder) • At (local) government level (duty bearer) • At the private sector (service provider) Le 7 ème Forum du // 7 th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)