models, myths, realities: global models of pro-poor service delivery & political economic...
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STEPS Water & Sanitation Symposium 2011TRANSCRIPT
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Models, Myths, Realities
Global models of pro-poor service delivery &
Political economic realities in Jakarta, Indonesia
STEPS – Liquid Dynamics II, 22 March 2011 Michelle Kooy, ODI
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Global models of pro-poor service delivery & Political economic realities in Jakarta, Indonesia
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Jakarta
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Multiple waters, decentralised supplies, non-networked
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Global architecture: 1997- 2024, 1999 and 2001
• Private sector contracts, 1999-2024
• Suez + Thames Water, West/East• 1999 – Asian Financial Crisis,
Suharto deposed• 2001 – renegotiated contract • 2004 – Thames withdraws,
replaced by domestic private sector
• Lack of incentives for pro-poor supply
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Spatialised access – political policies
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Model # 1. GP-OBA
• Global Partnership for Output Based Aid
• 5,000 vs. 20,000 cxns
• Low water pressure
• Low demand
• Delays, 2007 to 2009/2011
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Local realities: challenges to the model
• Political – evictions• Technical – no water• Regulatory – cancel tariff
increases = lower average tariff rate
• Low demand from the poor
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Model # 2. Community operated piped water supply: partnership with private sector
• Community owned, managed, maintained piped network– Meter reading– Bill collection– Infra repairs– management
• Connection to primary WS network line
• Agreement on tariffs with WS company
• Co-financing & revolving fund
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• Households:
– Access to piped water (65 HH)
– No ID card required
– consume 2x as much water; pay ½ the cost
• Private sector:
– Reduce risk of providing to poor households
– Increase customer base/profits
– Reduce illegal cxns
– Monthly WS costs reduced by ½
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• Physical conditions– Water pressure/volume– Water quality– Storage space
• Economic conditions– Access to finance
• Political relationships– PAM Jaya vs. PALYJA vs.
local government vs. residents
• Social conditions– Perceived risk– Social conflict (bill collection,
enforcement)– mobility
Local realities: challenges to the model
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Challenge: exposure to hazards & allocation of risk
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Local Political and Economic Realities
• Political Barriers– ‘Illegal’ or unregistered residents of the city, requires ID card
– Citizenship in the modern city excludes the poor
– Lack of political mandate - never in the mandate of the govt to provide for the poor
– Land tenure – no service to informal housing
• Economic Barriers– Conditions of the PSP contract, indirect disincentive to provide the poor
– Poor not seen as profitable and ‘too difficult to deal with’, higher rates of non-payment
– Affordability of a household connection
– Home ownership vs. renter
• Physical Barriers– Location of the network, doesn’t extend to urban poor settlements
– Water pressure & technical capacity
– Requires extra storage capacity (irregular service), requires land space