Private sector service providers: mainstream or niche?...2016/02/12 · Le 7ème Forum du // 7th...
Transcript of Private sector service providers: mainstream or niche?...2016/02/12 · Le 7ème Forum du // 7th...
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?
Private sector service providers: mainstream or niche?
Le 7ème Forum du // 7th 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
Spare part manufacture
Spare part distribution
Repair persons
Caretaker/
sellers
Demand creation/ marketing
Drilling – LL investments
Pump installation/
SL investments
Users/ rights
holders Government/ duty bearer
Private Sector Partnerships can help strengthening the service chain
1. ‘Strengthening’ linkages among Chains
Spare part manufacture
Spare part distribution
Repair person
Caretaker/
seller
Demand creation/ marketing
Drilling – LL investments
Pump installation/
SL investments
2. Consolidating Parts of the Chain
Delegated Management - Affermage Drilling – LL
investments
Pump installation/
SL investments Water Quality?
Pump installation/
SL investments
Several levels of consolidation can take place
Professional service models – integrated value chains
Uganda Spare part
manufacture
Maintenance Caretaker/
seller
Demand creation/ marketing
Drilling – LL investments
Pump installation/
SL investments
Drilling – LL investments Pump installation/
SL investments Water Quality?
Delegated Management - Affermage Benin
Burkina
Faso
≈
Services delivery / PPP Management models
5
PPP options vary according to the levels of risks transfer • Management contracts and lease agreements • Concessions contracts: • Transfer of assets or disinvestments
• 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
Presentations
Wedenesday 30 November
Private Sector: Mainstream or Niche?
Action Research on rural water service models through private
sector participation
Fiorella Polo, Wash Advisor, UNICEF
7th RWSN forum Abidjan 29Nov-02 Dec 2016
The Action Research extends delegated management to hand-pumps
---- Less profitable
v
v
v
Small Piped Schemes – Rural growth centers
+++ More profitable
Handpumps– Less densely populated areas
The model requires scale: ~
130 HP per operator
The AR aims at balancing financial viability and good governance
Good governance/ accountability
Financial viability
Autorithies
Communities
Private operator
Government
Users association
Municipality
Users
Information flow is at the heart of a balanced model
Duty bearer
Rights holders
Service provider
Strong accountability pathways An integrated value chain
Exploitant
Fournisseur de pièces
Rapid response tools and simple dash-board
T
T
T
Functioning
Repaired within 72 hours
Water quality compliant
Income
Consumption
Costs
F
F
F
Government
Niankorodougou- 10 yr cumulative income – sensitivity to tariffs
Paramètres fixés
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
Operator’s margin =11%
Tariffs were based on consultations, research and sensitivity tests
Payment methods developed based on research
Prepaid cards conceived for commonly used containers
Caretaker’s commission =20%
• 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)
Questions for the audience?
Le 7ème Forum du // 7th Forum of the Rural Water Supply Network : Abidjan, Côte d’Ivoire (29.11.2016 – 02.12.2016)