operation and maintenance for safe drinking water –

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


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?


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


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?


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)


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.


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


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


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


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


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


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


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


Comprehensive planning process with institutions in place and with capacityComprehensive planning process with institutions in place and with capacity


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!


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


A pilot process under WHO/AusAID partnership – conceptual frameworkA pilot process under WHO/AusAID partnership – conceptual framework


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 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?

operation and maintenance for safe drinking water –

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