« Pro-poor » regulation for small towns water

supply services : lessons learned from financial and technical auditors in Chad, Mali and Niger

« Pro-poor » regulation for small towns water

supply services : lessons learned from financial and technical auditors in Chad, Mali and Niger

Janique Etienne, AFD

mars 2009

« Pro-poor » regulation for small towns water supply services : lessons learned from Chad, Mali and Niger experiences

• Regulatory mechanism to ensure efficient and reliable service provision for small towns

• Context– Household revenus are around 3 $/day– Low coverage - Service level is predominantly

standposts– Higher Tariffs : no cross-subsidy between towns and

between consumers– Community managed systems : « volunteer » managers

are often inefficient and ineffective– Lack tranparency

« Pro-poor » regulation for small towns water supply services : lessons learned from

Chad, Mali and Niger

• Set up– Water authority designates a third party as auditor– A number of municipal councils sign an agreement

with this third party to conduct technical and financial audits

• Role– Technical and financial data collection – Small providers support (users associations or SSIPs)– Water quality testing– Financial audit – Reporting to a general assembly of users

ProviderAssociations or Associations or entrepreneursentrepreneurs

Ministry

Local governmentLocal government

Delegatedmanagement

contract

AuditorNGO, consultant, Lmt NGO, consultant, Lmt

CoCo

Mandate

users

Water authority

Support and control

Agreement

« Pro-poor » regulation for small towns water supply services : lessons learned from

Chad, Mali and Niger

• Observation– Misappropriation of funds by providers– High commercial and technical losses– Unpaid water bills by government services (136

MEuros in Mali -2006-)

• Results– Improve transparency through reporting,– Improve performance via benchmarking– Ensure water quality through technical audit

« Pro-poor » regulation for small towns water supply services

Nb of users(Nb of centres)

Water revenus(Providers)

265 000(30)

900 000 €

Asset value 14 M€

150 000(20)

450 000 €

8 M€

Revenues20 to 40 FCFA/m3

35 000 € 17 500 €

 AuditorCCAG

MoundouTCHAD

BCCMaradiNIGER

450 000(59)

2 500 000 €

+ 20 M€

76 000 €

GCS-AEPMALI

Evolution du coût de revient du m3 dans les centres suivis depuis plus de 5 ans par la CCAEP

0

100

200

300

400

500

600

700

800

900

1 000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Co

ut

de

re

vie

nt

(FC

FA

/m3

)

KANGABA

NARA

BANKASS

DJENNE

DOUENTZA

KORO

DIRE

GOUNDAM

NIAFUNKE

« Pro-poor » regulation for small towns water supply services : raises questions

for scaling up– Extend such mechanisms ?... To strengthen :

• Négociations between local governments and water providers

• Feedback to consumers (through general assembly of consumers)

• Competition to increase transparency

• Monitoring of water quality (compliance)

Thanck you for your attention…