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

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

• perator

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

• perator

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

Ex Explo loitant Fou

• urnisseur de

de piè pièces

Rapid response tools and sim imple dash-board

T T T

Functioning Repaired within 72 hours Water quality compliant Income Consumption Costs

F F F Go 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)