institutional development for improved water quality | november 2010 operation and maintenance for...
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Institutional Development for Improved Water Quality | November 2010
Operation and Maintenance for Safe Drinking Water – Institutional development to achieve water quality improvements
Operation and Maintenance for Safe Drinking Water – Institutional development to achieve water quality improvements
Borneo Convention Centre, Kuching 2 November 2010
David SutherlandInter-Regional Coordinator Water Quality Partnership for Health
Institutional Development for Improved Water Quality | November 2010
Presentation QuestionsPresentation Questions
What do we mean by institutional development?
Why institutional development?
What functions does institutional development need to address to achieve water quality improvement?
What mechanisms and resources are required to bring about institutional development?
Institutional Development for Improved Water Quality | November 2010
What do we mean by Institutional Development?
What do we mean by Institutional Development?
Legal status of water supplier & quality – external focus
Policy and regulatory context for water quality and supplier – external focus but internal consequences
Technical / human resources – internal focus
Financing mechanisms - external and internal focus
Institutional Development for Improved Water Quality | November 2010
External / Internal Institutional Development?
External / Internal Institutional Development?
Internal / external relations at the heart of delivering improvements
How do rules, regulations and policies impact on the water supplier and how can the supplier influence?
How can organizations organize to meet these external demands? What resources, KPIs, SOPs meet the demands?
Just wait for external requirements or innovate?
Institutional Development for Improved Water Quality | November 2010
Legal StatusLegal Status
National legislation– of water quality functions – standards, delivery, financing,
monitoring, regulation– of supplier – status (ownership, fundraising powers) and duties
Who is responsible for what and how are tasks funded and resourced?
E.g. World Bank IEG – greater success when suppliers are autonomous free from political interference - > poor management (tariff setting)
Institutional Development for Improved Water Quality | November 2010
Policy and Regulatory ContextPolicy and Regulatory Context
Similar issues to legal status– of water quality functions – standards, delivery, financing,
monitoring, regulation– of supplier – status, duties, KPIs, monitoring and reporting
Who is responsible for what and how are tasks funded and resourced?
E.g. World Bank IEG – 50% of projects where no policy in place. Short term projects for immediate local concerns - needs long term support.
Institutional Development for Improved Water Quality | November 2010
Technical and human resourcesTechnical and human resources
Staff, training, equipment, management systems
Internal case to senior management
Prioritization
KPIs – value for money – incentives
all linked to financing
Institutional Development for Improved Water Quality | November 2010
Financing mechanismsFinancing mechanisms
Where does the money come from and under what conditions? Fundamental issue.– Tariffs (level and collection rates)
– Public budget (direct and indirect)
– External (private/IFI/donor)
Capex versus Opex dilemma– can’t increase tariffs until service improves, can’t
improve service until income increases
Institutional Development for Improved Water Quality | November 2010
Financing - Recent / current work - OECDFinancing - Recent / current work - OECD
OECD Financing Strategies
National Policy Dialogues – Coordination Council
FEASIBLE Financial Modeling– Baseline – asset maintenance and finance sources OECD Baseline.pptx
– Investment strategies – options and selection OECD Investment.pptx
Policy development – annotated outline– Levels of service– Tariffs and social protection measures– Government investment
Institutional Development for Improved Water Quality | November 2010
Financing - Recent / current work - ADBFinancing - Recent / current work - ADB
ADB Water Operational Framework 2011-2020– “Investments will have to be made in rehabilitating networks… and to introduce a
strong culture of non-revenue water management. The costs of
making these investments have been demonstrated to be far lower than the costs of developing new water sources…….”
– “Projects for supporting investments in urban water supply would include non-revenue water reduction, improved asset management, network rehabilitation,
and corporate restructuring. New source development and associated treatment and distribution facilities will be supported only when performance improvement and efficiency gains are secured and deficits demonstrated to persist.”
Possible contributions to O&M costs
Institutional Development for Improved Water Quality | November 2010
Why institutional development?Why institutional development?
There is a demand for it - lack of capacity for monitoring, operation and maintenance
Increasing legal exposure and increased financial implications of litigation for outbreaks
It makes sense
Institutional Development for Improved Water Quality | November 2010
What are we improving to achieve water quality improvements?
What are we improving to achieve water quality improvements?
Better knowledge and management of assets
Improved operation and maintenance procedures
Improved monitoring (system and water quality) – surveillance, operational monitoring and investigative monitoring
Institutional Development for Improved Water Quality | November 2010
How are we going to achieve improvements?
How are we going to achieve improvements?
Senior management drive or strong support
Adequately equipped and motivated team in place for MOM – training and incentives
Customers that will pay for improved service – advocacy, communication, tangible benefits
Assets maintained and improvements made Basically - Investment planning
Institutional Development for Improved Water Quality | November 2010
Comprehensive planning process with institutions in place and with capacityComprehensive planning process with institutions in place and with capacity
Institutional Development for Improved Water Quality | November 2010
Comprehensive Process - Key Performance Indicators
Comprehensive Process - Key Performance Indicators
Relating to:– Water volumes (27 KPIs)– Assets (13 KPIs)– Customers (19 KPIs)– Environment (13 KPIs)– Pricing (8 KPIs)– Finance (29 KPIs)– Health (7 KPIs)– TOTAL: 116 KPIs These need to be
monitored!
Institutional Development for Improved Water Quality | November 2010
Current investment planning shortcomings in less regulated situations?
Current investment planning shortcomings in less regulated situations?
Ineffective or absent national/regional policies or frameworks
Inadequate Economic/Water Safety Regulations
Focus on supplying water - not especially safe water
Investments not weighted for water quality risks
Lack of Key Performance Indicators effectively monitored
Conditions of funding ignores O&M and ongoing risk management -> poor O&M -> unsafe water
Institutional Development for Improved Water Quality | November 2010
A pilot process under WHO/AusAID partnership – conceptual frameworkA pilot process under WHO/AusAID partnership – conceptual framework
Institutional Development for Improved Water Quality | November 2010
Safe Water Investment Plans - Pilot StepsSafe Water Investment Plans - Pilot Steps
System assessment– short term how to manage what you have– identify what you need in the long term
Develop Safe Water Investment (and Improvement) Plan - CAPEX and OPEX
Work with partners (public, private) for financing (and planning, QA and regulation)
Utility/region/national investment requirements
Institutional Development for Improved Water Quality | November 2010
Institutional Development QuestionsInstitutional Development Questions
What are the main constraints to improvements? – policy, regulation, technical and human resources, finance
How much is internal and how much external – what can water suppliers control and what /who do they need to rely on for delivery of improvements?
How can you best make the case for investment in water quality improvements?
What are the key performance indicators which need to be met to attract finance and achieve improved water quality?