Yangon, Mandalay and Nay Pyi Taw water supply Drawing lessons from the Phnom Penh experience. Yangon March 21 st 2013

Transcription

1 Yangon, Mandalay and Nay Pyi Taw water supply Drawing lessons from the Phnom Penh experience Yangon March 21 st 2013

2 AFD spearheads France s development aid actions AFD dispenses two-thirds of France s bilateral foreign aid; In 2012, AFD committed 10 Mds USD to the financing of development projects (water, energy transportation, rural development, agriculture, education, public healthbanking sector, private sector, etc.), of which 1,2 Md USD in Asia In 2012, AFD financed projects in more than 60 countries and territories worldwide In Asia, AFD works in more than ten countries including China, India, Sri Lanka, Pakistan, Bangladesh, Vietnam, Laos Cambodia, Indonesia, Philippines, and Myanmar; AFD started operation in Myanmar end of

3 Why talk about Phnom Penh water supply authority (PPWSA)? Because of the similarities between water supply issues in Yangon, Mandalay, Nay Pyi Taw and Phnom Penh: - the local context; - the commitment to improvement ; - the international support. 3

4 Why talk about PPWSA? Because of the similarities with Yangon regarding the local context : - large water courses in the nearby; - low sea water elevation (60 feet vs 80 feet) ; - large area to cover (220 sq. miles in PP vs 300 sq.miles in Yangon); - large population to supply (2 million in PP vs 5,4 million in Yangon); - some aging infrastructure, dating from the turn of the 20th century (colonial era); - etc. 4

5 Yangon city and Greater Yangon location map 5

6 Phnom Penh city and Greater Phnom Penh location map 6

7 Why talk about PPWSA? Because of similarities with Yangon, Mandalay, and Nay Pyi Taw regarding the commitment to improvement: - increase of the network coverage; - NRW reduction (Non Revenue Water); - gradual cost recovery, for both operation (OPEX) and investments (CAPEX); - setting of moderate water tariff. 7

8 Why talk about PPWSA? Because of the similarities with Yangon, Mandalay, and Nay Pyi Taw regarding the international support : - Japan (both JICA and the Japanese Government); - France (both AFD and the French Government); - United Nations; - Asian Development Bank; - World Bank; - Others : municipalities (for example City of Paris), countries (for example Denmark), NGO s (for example OXFAM) 8

9 PPWSA case study Year

10 PPWSA the progress done from 1991 to Multiplying factor Production capacity 16,6 mgd = cmd 62 mgd = cmd 3,7 Network length (km) ,4 Number of connections ,1 10

11 PPWSA the progress done from 1991 to Population in service area Access to water 20 % 85 % Water quality - WHO standards Water continuity 10 h/24 24 h/24 Water pressure (bar) 0,2 2 Non revenue water (NRW) 72% 9 % Staff efficiency - staff per 1000 connections 20 3 Bill collection 30 % 99 % Tariff 0,04 USD /m 3 0,17 USD /m 3 11

12 PPWSA the progress done from 1991 to Population in service area Access to water 20 % 85 % Water quality - WHO standards Water continuity 10 h/24 24 h/24 Water pressure (bar) 0,2 2 Non revenue water (NRW) 72% 9 % Staff efficiency - staff per 1000 connections 20 3 Bill collection 30 % 99 % Tariff 0,04 USD /m 3 0,17 USD /m 3 12

13 PPWSA the progress done from 1991 to

14 PPWSA the progress done from 1991 to

15 PPWSA case study the progress done from 1991 to 2006 the reasons for the success Inside PPWSA : strong management and leadership, with specific focus on - HR issues (wages policy, training); - Cost control ; - Customer orientation, pro poor policy; - Investment planification and donors coordination. Outside PPWSA - Government : political support, with focus on : - Financial autonomy of PPWSA; - Tariff increase; - Water bill collection. Outside PPWSA - Donors : strong commitment and coordination 15

16 PPWSA case study the progress done from 1991 to 2006 the reasons for the success Inside PPWSA : strong management and leadership, with specific focus on - HR issues (wages policy, training); - Cost control ;! - Customer orientation; - Investment planification and donors coordination. Outside PPWSA - Government : political support, with focus on : - Financial autonomy of PPWSA; - Tariff increase; - Water bill collection. Outside PPWSA - Donors : strong commitment and coordination 16

17 PPWSA case study the progress done from 1991 to 2006 the reasons for the success Commitment to Planification : : Phnom Penh Water Supply Master plan Phase 1 ( ) - JICA; : Phnom Penh Water Supply Master plan Phase 2 ( ) - JICA; Commitment to coordination : - 7 main donors : Japan, JICA, France, AFD, ADB, WB, UN; - and many other ones ; 17

18 PPWSA case study - breakdown of international aid received from 1991 to 2006 M USD Grant Loan TOTAL Japanese Gvt & JICA French Gvt & AFD 15,7 14,6 30,3 United Nations (UNDP) 2,8-2,8 ADB - 12,5 12,5 WB - 25,9 25,9 Others (Oxfam, City of Paris, etc.) - Estimates 1,5-1,5 TOTAL

19 PPWSA case study conclusion what happened after 2006? PPWSA kept being well managed both technically and financially. Its accounts were audited every year by an international company (Price Water House); PPWSA prepared an updating of its Master Plan, and kept expanding its service area; Thanks to its sound financial situation, PPWSA could get new fundings from donors, including three direct soft loans from AFD that were lent without requesting the garantee of the Kingdom of Cambodia : : 14 M USD (AFD) : 20 M USD (AFD) : 39 M USD (AFD) 2012 : Initial Public Offering (IPO) for 15 % of PPWSA s capital. PPWSA is the first company to be listed on the Cambodia Stock Exchange; 2012 : PPWSA CEO, Mr Ek Sonn Chan, got retired. Mission accomplished. 19

20 Conclusion : Yangon & Mandalay & Nay Pyi Taw & Phnom Penh Could what was done in Phnom Penh in just 15 years be regarded as a draft or a pilote zone for Yangon, Mandalay, and Nay Pyi Taw? The international community is by your side to this end. Next time, I would like the title of my presentation to be the Bago or the Yangon or the Mandalay or the Nay Pyi Taw success story Thank you for your attention 20

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22 5 With an affordable tariff structure Block tariff structure 22

23 6 And a pro-poor policy Clean Water for all program Implemented in 1998 Installment payment policy : 10, 15, 20 months based on the household financial affordability and in addition a policy of 20% discount of connection fee for poor families living in the suburbs From 2005, subsidy policy: 30, 50, 70, 100% of the connection fee based on the household financial affordability Subsidies funded in part by the WB, City of Paris and AIMF Since 1998, 28,639 connections installed out of which 17,639 were subsidised for a total amount of 1,1 M USD 23