Bridging the Gap: Benchmarking Utilities in Africa
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1 Bridging the Gap: Benchmarking Utilities in Africa Rosemary Rop World Water Week Stockholm, Focus Africa: August 23 rd 2011 Water and Sanitation Program
2 Global Status: Water and Sanitation Access Gaps 2.6 billion people lack access to improved sanitation 884 million people do not use improved sources of water LAC ME NA SSA Africa ECA 29 SAR 153 EA 616 SEA 179 Water supply (rural/urban) Sanitation (rural/urban) 326 Population: 1.02 billion 222 Urban: 391 million Source: JMP, 2010
3 Western Africa region Benin, Burkina Faso, Cape Vert, Cote d'ivoire, Gambia, Ghana, Guinée- Conakry, Guinée Bissau, Liberia, Mali, Niger, Nigeria, Mauritanie, Sénégal, Sierra Leone, Togo Northern Africa region Algeria, Egypt, Libya, Maroc, Sudan, Tunisia Eastern Africa region Burundi, Comores, Djibouti, Ethiopia, Eritrea, Kenya, Uganda, Rwanda, Seychelles, Somalia, Tanzania, South Sudan Central Africa region Angola, Cameroun, Congo, Gabon, Guinée Equatoriale, République Centrafricaine, République Démocratique du Congo, Sao Tome E Principe, Tchad Total issued: 134 Total received: 91 Southern Africa region South Africa, Botswana, Lesotho, Malawi, Mozambique, Namibia, Swaziland, Zambia, Zimbabwe, Mauritius, Madagascar Map courtesy of AfWA
4 Benchmarking: Key Findings 1 Water coverage has stagnated; Sanitation coverage has improved but is still low Urban Utilities: Africa Total number of un-served people is increasing Only a few utilities have managed to exceed population growth by more than 5% e.g. Kericho, Nyeri, Addis Ababa Lilongwe, Chambeshi (Zambia), Swaziland Burkina Faso, Ekiti SWB and Nasarawa SWB (Nigeria) Urban water MDG targets will be missed (except South Africa)
5 Water supply coverage against MDG target (75% access) Sanitation coverage against MDG target (50% access)
6 Findings Benchmarking: Key Findings 2 Millions of dollars in lost revenue annually Financial losses from NRW in Eastern African capitals (only) stood at US$ 57 million In 2009 total losses NRW for region US$ 333,000,000
7 Findings Benchmarking: Key Findings 3 Services inadequately sustained due to poor operations and maintenance Burst Rates Burst rates very high (> 1/km/yr), suggesting: Major rehabilitation needed prior to expansion Lack of data (length) on assets Metering Low metering: only 43% in Eastern, 48% in Southern and 20% in Western Africa have 100% metering. Nigeria has 0%. Affects reliability of reporting, and therefore planning, NRW, tariff setting etc Collection Efficiency Continuity of Services Collection efficiency is good BUT still <100% (regional average is 97%) Collection period still high regional average 154 days (199 in Southern) Government still not paying its bills Poor performance is chronic: all capitals in East Africa provide <12h/day (Mombasa < 7h/day) Affects performance in every other indicator Reduces incentives to serve poor as focus is on high end consumers
8 Findings Benchmarking: Key Findings 4 Poor people are hardest hit Only half of the utilities have strategies and targets to serve the poor. $1.60 $1.40 Gabon, % 4.00% Increasing Block Tariff subsidy structure is not targeting those who need it as most poor share connections and thus pay much more Poor service quality affects poor people who are rationed and do not have storage facilities $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $ % 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% cost, water billed US$ per m3 revenue, US$/m3 Affordability (annual water bill/gni per capita)
9 3. Capacity Building and Technical Assistance What can we do? Donors & Partners Donor aid and project design National Government Local Government Capacity building and TA Target investment and subsidies Service Providers Citizens O&M and rehabilitation Accountability to Citizens Benchmarking can inform decision making at all levels of planning and service delivery
10 2. Investment What can we do? Example SA Credit rating to attract private money Target investments to reward good performance
11 What can we do? Expansion of Poor-Inclus i Service Provision Nairobi III Government of Kenya, Minister for Water message: focus on Institutional Reform Improve poor performance through capacity building and technical assistance programs
12 What can we do? Expansion of Poor-Inclusive Service Provision Example Kisumu Delegated Management Model Poor people are not just beneficiaries put them at the forefront of service delivery
13 Framework for Accountability in Relationships Demand Side Approache s Voi ce Users Policymakers Providers Supply Side Approache s Service Compact Client Power WDR 2004
14 1. Planning What can we do? Example of benchmarking NWASCO, Zambia NWASCO benchmarks Zambian utilities and determines tariffs based on performance Benchmarking provides incentives for managers to improve Achievements - In 2007 Southern and North-Western Water NRW at 40% and 42% respectively. Now in mid 30s % metering in North Western Water and Sewerage company - 75% metering in Southern Water company in 3 in years. GIZ and other donors now targeting investments based on performance and needs Inform national and utility level planning using benchmarking data
15
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