STRATEGY FOR ACCESS TO STRATEGY FOR ACCESS TO WATER AND SANITATION WATER AND SANITATION SERVICES IN INFORMAL SERVICES IN INFORMAL

SETTLEMENTS SETTLEMENTS ((THE KISUMU EXPERIENCE)THE KISUMU EXPERIENCE)

PAPER AT AFRICTIES PAPER AT AFRICTIES CONFERENCECONFERENCE

By Eng. P. L. OMBOGOBy Eng. P. L. OMBOGOCHIEF EXECUTIVE OFFICERCHIEF EXECUTIVE OFFICER

LAKE VICTORIA SOUTH WATER LAKE VICTORIA SOUTH WATER SERVICES BOARDSERVICES BOARD

OUTLINEOUTLINE

IntroductionIntroduction Status of Water and Sanitation Services Status of Water and Sanitation Services

before the reforms (year 2003)before the reforms (year 2003) The Turn around strategyThe Turn around strategy Water and Sanitation Services to the Water and Sanitation Services to the

informal settlementsinformal settlements Delegated Master Operator ModelDelegated Master Operator Model

INTRODUCTIONINTRODUCTION Kisumu is located on the shores of Lake Victoria at Kisumu is located on the shores of Lake Victoria at

elevation of 1100m to 1400m above the see levelelevation of 1100m to 1400m above the see level Kisumu population is estimated at 450,000 but Kisumu population is estimated at 450,000 but

rises to about 600,000 during the day due its rises to about 600,000 during the day due its strategic commercial positionstrategic commercial position

60% of the population live in informal settlements60% of the population live in informal settlements The existing water infrastructure only serves 40% The existing water infrastructure only serves 40%

of the Town of the Town Sanitation coverage is much less at 23% of the Sanitation coverage is much less at 23% of the

TownTown Most of the town is either using septic tanks or pit Most of the town is either using septic tanks or pit

latrineslatrines

STATUS OF WATER AND SANITATION STATUS OF WATER AND SANITATION SERVICES BEFORE THE REFORMS SERVICES BEFORE THE REFORMS

(YEAR 2003)(YEAR 2003) Department of the Municipal Council of KisumuDepartment of the Municipal Council of Kisumu Water production 15,000mWater production 15,000m33/day against a water /day against a water

demand of 48,000mdemand of 48,000m33/day to 60,000m/day to 60,000m33/day during /day during the daythe day

High levels of Unaccounted for Water averaging High levels of Unaccounted for Water averaging 70%70%

Old infrastructure prone to frequent breakdownsOld infrastructure prone to frequent breakdowns Unplanned maintenance Unplanned maintenance Low revenue Kshs. 10 million to 13 million and low Low revenue Kshs. 10 million to 13 million and low

collection efficiency about 60%collection efficiency about 60%

STATUS OF WATER AND SANITATION STATUS OF WATER AND SANITATION SERVICES BEFORE THE REFORMS SERVICES BEFORE THE REFORMS

(YEAR 2003)(YEAR 2003) Unreliable water supplyUnreliable water supply No attention to the informal settlements thereby No attention to the informal settlements thereby

creating room for small scale independent creating room for small scale independent services providers services providers

Unreliable quality of waterUnreliable quality of water Lack of customer focusLack of customer focus Broken sewer treatment plantsBroken sewer treatment plants Unskilled and low enumerated staff with low Unskilled and low enumerated staff with low

moralemorale

THE TURN AROUND STRATEGYTHE TURN AROUND STRATEGY Commenced with the enactment of the Water Commenced with the enactment of the Water

Act 2002 which provided for the establishment Act 2002 which provided for the establishment of the following institutionsof the following institutions– Water Services Regulatory Board as the regulator Water Services Regulatory Board as the regulator – Lake Victoria South Water Services Board as the asset Lake Victoria South Water Services Board as the asset

developer and manager, and Licensee for contracting developer and manager, and Licensee for contracting and supervising provision of Water Services by Water and supervising provision of Water Services by Water Service ProvidersService Providers

– Water Service Providers to operate and maintain water Water Service Providers to operate and maintain water and sewerage services. and sewerage services.

This provided a legal framework for the This provided a legal framework for the establishment of Kisumu Water & Sewerage establishment of Kisumu Water & Sewerage CompanyCompany

THE TURN AROUND STRATEGYTHE TURN AROUND STRATEGY Constitution of the companyConstitution of the company

– The company has since been establishedThe company has since been established– The Board of Directors constituted with broad representation The Board of Directors constituted with broad representation

from the council, consumers, non governmental organizations from the council, consumers, non governmental organizations and Kenya Association of manufacturersand Kenya Association of manufacturers

– The Company has recruited the following core staff from the The Company has recruited the following core staff from the market- Managing Director, Chief Technical Manager, Chief market- Managing Director, Chief Technical Manager, Chief Human Resource Manager, Audit, Commercial Manager and Human Resource Manager, Audit, Commercial Manager and accountantsaccountants

– This has improved the image and performance of the companyThis has improved the image and performance of the company DeDevelopment of a Strategic Plan & Business Planvelopment of a Strategic Plan & Business Plan

– The company has since developed a strategic and business The company has since developed a strategic and business plan which clearly spells out the direction the company is plan which clearly spells out the direction the company is moving towards with achievable benchmarksmoving towards with achievable benchmarks

THE TURN AROUND STRATEGYTHE TURN AROUND STRATEGY– These performance benchmarks are reflected in the These performance benchmarks are reflected in the

annual performance contract that Lake Victoria South annual performance contract that Lake Victoria South WSB has signed with the GovernmentWSB has signed with the Government

Because of the reforms the Board through the Because of the reforms the Board through the Government secured AFD funding to the tune Government secured AFD funding to the tune of 20 million Euros for rehabilitation and of 20 million Euros for rehabilitation and expansion of the water and sanitation facilitiesexpansion of the water and sanitation facilities– 11stst phase rehabilitation works is already contracted phase rehabilitation works is already contracted

out and work is progressingout and work is progressing– 22ndnd Phase design of the extension works has Phase design of the extension works has

commencedcommenced It is expected that after the investments there It is expected that after the investments there

will be available water will be available water

THE TURN AROUND STRATEGYTHE TURN AROUND STRATEGY The benefits realised so farThe benefits realised so far

– Water production increased to about 20,000mWater production increased to about 20,000m33/day/day– Improved revenue collection from Kshs. 13 to 15 Improved revenue collection from Kshs. 13 to 15

million per monthmillion per month– Reduced Unaccounted For Water from 70% to 60%Reduced Unaccounted For Water from 70% to 60%– Increased access of water to areas for so many Increased access of water to areas for so many

years have not received wateryears have not received water– Ring fenced revenue that is being utilised for Ring fenced revenue that is being utilised for

planned operation and maintenance of water and planned operation and maintenance of water and sewerage facilitiessewerage facilities

– The company can now attract and retain qualified The company can now attract and retain qualified manpowermanpower

– The development of strategic and Business planThe development of strategic and Business plan– Improved customer focusImproved customer focus

THE TURN AROUND STRATEGYTHE TURN AROUND STRATEGY

The main challenge for the board and The main challenge for the board and KIWASCO is how to make the poor who live KIWASCO is how to make the poor who live in the informal settlement and constitute in the informal settlement and constitute 60% of the consumers of Kisumu access 60% of the consumers of Kisumu access quality water at affordable rate and to quality water at affordable rate and to improve on the benefits gainedimprove on the benefits gained

WATER AND SANITATION SERIVCES WATER AND SANITATION SERIVCES TO INFORMAL SETTLEMENTSTO INFORMAL SETTLEMENTS

The Board and the Company with the support of The Board and the Company with the support of WSP Africa have carried out extensive studies on WSP Africa have carried out extensive studies on identification and management arrangements for identification and management arrangements for improvement of Water and Sanitation Services to improvement of Water and Sanitation Services to the informal settlementsthe informal settlements

The study identified amongst others The study identified amongst others – Water supply in informal settlements is inadequate, Water supply in informal settlements is inadequate,

unreliable, of poor quality to some extend, water unreliable, of poor quality to some extend, water prices are high, poor sanitation facilities, poor prices are high, poor sanitation facilities, poor planning of provision of services and unaffordable planning of provision of services and unaffordable cost of sanitation servicescost of sanitation services

– Several players already in this sector ( KIWASCO, Several players already in this sector ( KIWASCO, NGOs, Small Scale Independent Providers and NGOs, Small Scale Independent Providers and Private OperatorsPrivate Operators

WATER AND SANITATION SERIVCES WATER AND SANITATION SERIVCES TO INFORMAL SETTLEMENTSTO INFORMAL SETTLEMENTS

To address these gaps the Board is taking To address these gaps the Board is taking the following measuresthe following measures– Working on modalities of licensing and regulating all Working on modalities of licensing and regulating all

the players in the informal settlement to ensure the players in the informal settlement to ensure quality and price regulation quality and price regulation

– The Board in conjunction with WSP Africa have The Board in conjunction with WSP Africa have applied for a grant from GPOBA to support the applied for a grant from GPOBA to support the investment provided by AFD to specially target the investment provided by AFD to specially target the informal settlementinformal settlement

– A component of AFD funding is dedicated to A component of AFD funding is dedicated to improving water and sanitation facilities to the poorimproving water and sanitation facilities to the poor

WATER AND SANITATION SERIVCES WATER AND SANITATION SERIVCES TO INFORMAL SETTLEMENTSTO INFORMAL SETTLEMENTS

The Board has therefore encouraged a The Board has therefore encouraged a partnership that will improve service deliverypartnership that will improve service delivery

To save on Unaccounted For Water in the To save on Unaccounted For Water in the informal settlements due to illegal informal settlements due to illegal connections, vandalism, lack of meters the connections, vandalism, lack of meters the Board and the company has developed and is Board and the company has developed and is implementing a concept named the implementing a concept named the DELEGATED MASTER OPERATOR MODELDELEGATED MASTER OPERATOR MODEL

DELEGATED MASTER OPERATOR DELEGATED MASTER OPERATOR MODEL- BackgroundMODEL- Background

Nyalenda is an informal settlement in Nyalenda is an informal settlement in Kisumu with a population of 50,000Kisumu with a population of 50,000

Water was supplied throughWater was supplied through– KiosksKiosks– Individual connectionsIndividual connections– BoreholesBoreholes– Illegal network sold by owners of individual Illegal network sold by owners of individual

connectionsconnections

DELEGATED MASTER OPERATOR DELEGATED MASTER OPERATOR MODEL- Existing Water Supply MODEL- Existing Water Supply

Situation Situation Non-Formal Spaghetti Non-Formal Spaghetti

Network, illegal connections Network, illegal connections resulting in leakages and resulting in leakages and high losses (UFW) faced by high losses (UFW) faced by utility (KIWASCO).utility (KIWASCO).

The poor cannot afford water The poor cannot afford water sold by vendors and use sold by vendors and use unsafe sources.unsafe sources.

Meters stolen / removed by Meters stolen / removed by consumers causing problems consumers causing problems in metering and billing. in metering and billing.

Metered Connections

Illegal Connections

Spaghetti Network

DELEGATED MASTER OPERATOR DELEGATED MASTER OPERATOR MODEL- Goal of PilotMODEL- Goal of Pilot

Reduce water losses from KIWASCO’s Reduce water losses from KIWASCO’s main water supply lines resulting from main water supply lines resulting from illegal connections and vandalism illegal connections and vandalism

Improve revenue from this segment of Improve revenue from this segment of customerscustomers

Reduce girl child laborReduce girl child labor Partner with SIP to extend Water Supply Partner with SIP to extend Water Supply

Lines into the informal Settlements and Lines into the informal Settlements and create employmentcreate employment

DELEGATED MASTER OPERATOR DELEGATED MASTER OPERATOR MODEL- Stakeholders and PartnersMODEL- Stakeholders and Partners Lake Victoria South Water Services Board Lake Victoria South Water Services Board

(LVSWSB) – overall responsibility(LVSWSB) – overall responsibility Social Development Fund (SDF) – donor funding Social Development Fund (SDF) – donor funding

pilotpilot Kisumu Water and Sewerage Company Kisumu Water and Sewerage Company

(KIWASCO) – implementing agency(KIWASCO) – implementing agency Water Committee - representing Community Water Committee - representing Community Water and Sanitation Program (WSP) – supporting Water and Sanitation Program (WSP) – supporting

pilotpilot Master Operator - private community agent Master Operator - private community agent

contracted to manage sub network (MO)contracted to manage sub network (MO)

600m

Utility supply lines Bulk supply, metered

Private master operator- secondary branch

Household Meter Chambers

MODEL OF PILOT

DELEGATED MASTER OPERATOR DELEGATED MASTER OPERATOR MODEL- Benefits of this modelMODEL- Benefits of this model

Reduced UFW and revenue loss for Reduced UFW and revenue loss for KIWASCO from 70% - 55% and reduced KIWASCO from 70% - 55% and reduced Illegal ConnectionsIllegal Connections

Extend water with a lower resource Extend water with a lower resource investment from KIWASCO.investment from KIWASCO.

Subcontracts management to a local Subcontracts management to a local resident Supplying higher quality water to resident Supplying higher quality water to large community at a lower price.large community at a lower price.

Enhanced image of KIWASCO as socially Enhanced image of KIWASCO as socially responsible, reducing girl child labourresponsible, reducing girl child labour

The Way Forward The Way Forward

Replicate the DELEGATED MASTER Replicate the DELEGATED MASTER OPERATOR MODEL in other informal OPERATOR MODEL in other informal settlementssettlements