Catherine Revels, World Bank November 2009 Presentation outline - - PowerPoint PPT Presentation

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Catherine Revels, World Bank November 2009 Presentation outline - - PowerPoint PPT Presentation

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Catherine Revels, World Bank November 2009 Presentation outline Presentation outline Presentation outline Presentation outline Overview Overview Value chain for water sector Value chain for water sector Case studies: triggers

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Catherine Revels, World Bank November 2009

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Presentation outline Presentation outline Presentation outline Presentation outline

Overview Overview Value chain for water sector Value chain for water sector Case studies: triggers for change Case studies: triggers for change Mainstreaming GAC in water sector

  • perations at the World bank

p

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Overview: GAC Overview: GAC in Sectors in the World Bank in Sectors in the World Bank

Filling the Gap

1.Guidance and Support (Sourcebooks ‘GAC Squad’) (Sourcebooks, GAC Squad )

  • 2. Growing number of
  • perational models

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GAC issues cut across the value chain GAC issues cut across the value chain

Policy and Planning, Tendering Construction/ Service Policy and enabling environment Planning, budgeting and finance Tendering and procurement Construction/ installation/ supply Service delivery,

  • perations &

maintenance Expansion, quality improvements Cross-cutting accountability & effective government regulation (setting stds, tariffs, etc.)

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Ideal situation Typical situation

  • Clearly defined roles &

responsibilities

  • Overlapping mandates

N i

  • Separation of roles: policy,

regulation, service delivery

  • No separation; no

independent oversight; political interference

  • Policy objective: financial

sustainability of service providers

  • Policies allow political

interference and limit service providers’ ability to borrow providers

  • Provision for transparent &

equitable subsidies providers ability to borrow

  • No clear subsidy policy
  • Requirements for

transparency, accountability, participation

  • Nothing to prevent opaque

decision making processes participation

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Ideal situation P ti i t l i d Typical situation

  • Limited or no transparency
  • Participatory planning and

budgeting processes I f i id d p y and participation in planning St k h ld h littl

  • Information provided to

stakeholders on amounts budgeted and budget l

  • Stakeholders have little or

no information about the budget utilization

  • Subsidies conditional upon

accountability and tied to

  • Subsidies to investment

and recurrent costs accountability and tied to performance and recurrent costs without accountability or conditions

6 6

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Ideal situation Typical situation

  • Clear and well

understood procurement id li i i

  • Complicated procedures;

lack of transparency guidelines requiring transparency and accountability accountability

  • Effective monitoring of
  • Limited government and

i d d i i procurement processes by government and independent parties independent monitoring independent parties

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Id l i i Ideal situation

  • Construction

Typical situation

  • Lack of independence and

Construction supervision / quality assurance by qualified,

  • Lack of independence and

competence in construction supervision /

independent parties

p quality assurance

  • Little or no information
  • Transparency,

accountability and participation in project

  • Little or no information

provided to stakeholders; little or no accountability

participation in project monitoring

y for results

8 8

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Ideal situation Typical situation

  • Service providers operate

according to agreed perform‐ l i d d

yp

  • No performance plans or

service standards ance plans, service standards

  • Performance monitored and

reported to regulatory body

  • Limited or no reporting and

monitoring of performance p g y y

  • Customers pay a fair price for

services rendered S i id h monitoring of performance

  • Customers unwilling to pay

for low level of service

  • Service providers have

sufficient resources to

  • perate and maintain

t

  • Service providers remain

dependent on subsidies from budget systems

  • Consumer accountability

and redressal mechanisms from budget

  • Service providers

unresponsive to customers

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work well p

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Ideal situation

T d

Typical situation

  • Opaque and/or ad hoc
  • Transparency and

participation in expansion planning

  • Opaque and/or ad hoc

decision making expansion planning

  • Service providers able to

afford to upgrade and

  • Insufficient resources

available to expand and afford to upgrade and expand service to meet demands available to expand and upgrade services demands

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Vicious Downward Spiral Vicious Downward Spiral Vicious Downward Spiral Vicious Downward Spiral

Low tariffs, low connection High usage and system Consumers use water inefficiently losses drive up costs. Service deteriorates Investment, maintenance are postponed Utility lives off state subsidies Customers are ever less willing to pay Managers lose autonomy and incentives Dropping efficiency Utility can’t pay wages, t t t d Subsidies often fail to materialize recurrent costs or extend system System assets go

Crisis terrible service huge

Motivation and service deteriorates further “down the drain”

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Crisis, terrible service, huge rehabilitation costs

Characteristics of Well-Performing Public Water Utilities. Aldo Baietti, William Kingdom, Mieke van Ginneken Water Supply and Sanitation Working Notes. World Bank Note 9, February 2006.

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Presentation outline Presentation outline

Overview Value chain for water sector Case studies: triggers for change Mainstreaming GAC in water sector Mainstreaming GAC in water sector

  • perations at the World bank

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Urban WSS coverage and service

g levels were among best in Africa Political interference – service provision transferred from local provision transferred from local governments to national water authority S i l d d b f d Spiral downward began – funds diverted, qualified staff left, facilities not maintained, services deteriorated, customers stopped paying bills Cholera outbreak triggered Cholera outbreak triggered emergency response from donors Process of restoration has begun, b t

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but….

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Lack of Funding triggers change: Lack of Funding triggers change: Chernivtsy Chernivtsy

After breakup of Soviet Union, responsibility for UWSS

transferred to local governments

Lack of Funding triggers change: Lack of Funding triggers change: Chernivtsy Chernivtsy

transferred to local governments

Chernivtsy:

Facilities and service deteriorated – 2hour per day water supply Revenues dried up industries closed households not paying Revenues dried up – industries closed, households not paying No funding available for investment Utility manager named “Public Enemy No. 1” by NGOs

l d l d k f

Planning and consultation process undertaken in anticipation of

World Bank funding

Agreement reached:

g

City to pay back bills, funds to be used for leakage detection & repair,

replace pumps

NGOs and utility to jointly monitor water quality

y j y q y

NGOs to support communication campaign on need for customers to

pay bills

Service restored to 24 hours per day without outside investment

4 p y

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DPL preparation triggers change: Rawalpindi DPL preparation triggers change: Rawalpindi

Provincial Govt working with World Bank to prepare Urban

Development Policy Loan including WSS:

DPL preparation triggers change: Rawalpindi DPL preparation triggers change: Rawalpindi

Development Policy Loan, including WSS:

Implemented new regulatory regime; hired new utility

managers from the market under incentive contracts g

Benchmarking indicated low level of service, high water losses,

  • ver‐extraction of groundwater, high power costs

Utilit

k d ith NGO t d t t d

Utility worked with NGO to conduct customer survey and

contracted out management of 10% of boreholes

Results:

Previously unconnected residents now paying avg. 15% less per

month for water and spend 3‐5 hours less per day collecting water water

Revenues up by 29%, energy consumption and water extraction

reduced

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Improved communications with customers

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  • 20 years of engagement, increasingly

focused on governance for results focused on governance for results

  • Innovative project design – output‐

based investment financing; improving performance through regulatory and institutional development

  • Limited number of contracts reduced
  • Limited number of contracts, reduced

Bank oversight, increased advisory role

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Presentation outline Presentation outline

Overview Value chain for water sector Case studies: triggers for change Mainstreaming GAC in water sector Mainstreaming GAC in water sector

  • perations at the World bank

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GAC in the World Bank GAC in the World Bank

Energy, Transport & Water “GAC Squad” supported by G P hi F ili i l Governance Partnership Facility supports regional

  • perations teams to mainstream GAC in projects

Direct support to operations Direct support to operations

Sao Paulo – supporting baseline for monitoring results Uzbekistan and Tajikistan – strengthening customer interface

P l if i l

Paraguay – clarifying regulatory arrangements

“Soft touch” support

Support design of studies and projects;

pp g p j ;

Review Concept Notes, Terms of Reference, studies, etc. Provide reference materials

Consultant referral

Consultant referral

Knowledge management

Documenting emerging good practice Support learning events

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