NGO: national and intl (service to the poor, environment,
governance)
Financiers: multi and bi-lateral
Alternative suppliers (tankers, drilling companies)
Media: national and intl
Private sector: local and intl
6. Sustainable utility reform and reform of the environment
have to go hand-in-hand Our goal utility poor good poor good
Typical reform path environment Possible combinations environment
status/utility provider status
7. How Uganda combisequenced the reforms of NWSC, its national
utility Utility reform Reform of the environment 70s political
turmoil mid 80s new government end 80s & 90s Major rehab 95 new
statute 97 new Board 98 new MD 98-00 service & revenue
enhancement programs 00 ext & int performance contracts 02
automatic tariff indexation 03 staff performance contracts 97
corporate plan
8. Overview
Introduction
Key steps in reforms
Balancing progress in utility and environment
Video interviews with three speakers
Triggers and obstacles to reform
Key success factors in reform
Taking care of the poor in reforms
Role of central government in reforms
Leadership
9. South Africa Mike Muller Former Director General, South
African Department of Water Affairs &Forestry
10. South Africa
Total pop - 45.2 Million (2005)
Urban pop (% of total) 59%
Surface area - 1,221,037 sq miles
Life expectancy 45 years
GDP (US$ billions) 240.2
Access to water supply 88%
Access to sanitation 65%
Trigger: the end of apartheid
Vertical unbundling: bulk utilities and end providers
Most utilities are corporatized
Subisidies: Free basic water 25 l/p/d
Basic water supplies to nearly 15 million people in 10 years;
Sanitation much slower
applying good old-fashioned public finance principles
Ongoing decentralization process after establishment of
democratic municipalities in 2001
11. Uganda Dr. William Muhairwe Managing Director, National
Water and Sewerage Corporation, Uganda
12. Uganda
Total pop - 28.8 Million (2005)
Urban pop (% of total) 13%
Surface area - 241,038 sq miles
Life expectancy 49 years
GDP (US$ billions) 8.7
Access to water 60%
Access to sanitation 43%
Utility reform Reform of the environment
13. Russia Alexander Bazhenov Vice-Chairman, Eurasian Water
Partnership
14. Russia
Total pop - 143.2 Million (2005)
Urban pop (% of total) 73%
Surface area - 17,075,200 sq miles
Life expectancy 65 years
GDP (US$ billions) 763.7
Access to water 97%
Access to sanitation 87%
Trigger: the end of communism
Subsidies: lgoti and maximum % expenditure
WSS part of broader Housing and Communal Services sector
centralized billing and collection
Mostly municipal departments with little autonomy
History of focus on infra: low efficiency
Regulation is regional oblast responsibility
Boom & bust of PSP in 03/04; now 2 nd generation PSP
15. Overview
Introduction
Key steps in reforms
Balancing progress in utility and environment
Video interviews with three speakers
Triggers and obstacles to reform
Key success factors in reform
Taking care of the poor in reforms
Role of central government in reforms
Leadership
16. The first challenge: how to trigger reform Droughts, floods
& epidemics Unacceptable levels of service Political shifts
& pressures financial crises
17. The constant challenge to maintain progress. time
performance Pressure to improve Broad sector reform Utility reform
3 2 1 Maintain progress 4
18. Triggers and Obstacles to Reform Click the button to play a
5 minute video clip. (Windows Media;9,421k)
21. Key Success Factors in Reform Click the button to play a 5
minute video clip. (Windows Media; 9,208k)
22. Overview
Introduction
Key steps in reforms
Balancing progress in utility and environment
Video interviews with three speakers
Triggers and obstacles to reform
Key success factors in reform
Taking care of the poor in reforms
Role of central government in reforms
Leadership
23. Taking Care of the Poor in Reforms Click the button to play
a 10 minute video clip. (Windows Media; 15,619k)
24. Existing quantity-targeted subsidies are regressive Source:
Water, Electricity, and the Poor: Who Benefits from Utility
Subsidies? Komives et al.
25. Who are the urban poor?
Typically use multiple sources and differentiate drinking from
other uses - purchase small quantities if a free source is
available:
May share a house or yard tap with multiple families design
standards underestimate number of users
May purchase from a neighbor poor households are often
heterogeneous; differentiate demand as slums may have mixed
densities, income levels
May use a public standpipe/standpost/kiosk the level of
consumption is constrained by distance traveled, time spent
collecting water
May rely on small-scale private sector when services do not
meet their needs choose to have water delivered to house rather
than walking to and queuing at the standpipe
BUT: poor households do pay for water often at higher rate (per
cubic meter) than wealthy households
26. How to improve services for the poor?
The long term utility solution: a private - house/yard
-connection for all
Standpipes from free to paid service
Augmenting small-scale service providers
How to deal with self provisioning?
27. Overview
Introduction
Key steps in reforms
Balancing progress in utility and environment
Video interviews with three speakers
Triggers and obstacles to reform
Key success factors in reform
Taking care of the poor in reforms
Role of central government in reforms
Leadership
28. The Role of the Central Government Click the button to play
a 4 minute video clip. (Windows Media; 7,526k)
29. Overview
Introduction
Key steps in reforms
Balancing progress in utility and environment
Video interviews with three speakers
Triggers and obstacles to reform
Key success factors in reform
Taking care of the poor in reforms
Role of central government in reforms
Leadership
30. The political economy of reform
Reforms must provide returns for the political decision makers
who are willing to make the changes.
Initiate reform where there is a powerful need, and
demonstrated demand, for change
Nothing succeeds like success
Best fit rather than best practice
Realistic goals and timeline
Develop a sequenced, prioritized list of reforms
Match available human, financial and knowledge resources
Take one step at a time, but lock in progress
31. The Importance of Leadership Click the button to play a 3
minute video clip. (Windows Media; 3,477k)