SMALL SCALE INDEPENDENT PROVIDERSSSIP

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MozambiqueMozambique

Population:

20,530,714 habitants

FIPAG :

Assets Holding and Investment Fund

Created in 1998

Responsible for 14 Urban Utilities managed by two International Operators

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Maputo Water SupplyMaputo Water Supply

ADEMADEMAll the historical centre All the historical centre Most part of first expansion areaMost part of first expansion areaConventional networkConventional networkFIPAG´s InvestmentFIPAG´s Investment

SMALL SCALE INDEPENDENT SMALL SCALE INDEPENDENT PROVIDERS- SSIPPROVIDERS- SSIPServes the two expansion areasServes the two expansion areasPrivate investmentPrivate investment

SERVICE PROVIDERSSERVICE PROVIDERSFormal: Formal: AdeM -15 years lease contract AdeM -15 years lease contract Informal: 427 Informal: 427 SSIPSSIP

Operators N° of private connection

N° of operational standpipes

Access to water

AdeM 100,000 300 38%

SSIP´s 38,000 300 20%

Domestic water resale 26%

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The SSIP´s Water SchemesThe SSIP´s Water Schemes

Public investment unable to keep pace with developmentPublic investment unable to keep pace with developmentPrimarily constructed to solve individual needsPrimarily constructed to solve individual needsTurned into a business due to demandTurned into a business due to demand

Investment:Investment: ± ± 20.000 USD20.000 USDTypical infrastructures:Typical infrastructures: Boreholes, water Boreholes, water tower and HDPE tanks and networktower and HDPE tanks and network

SSIP ´s typology vs clients servedSSIP ´s typology vs clients served

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Alternative Alternative InstitutionalInstitutional and and Regulatory FrameworkRegulatory Framework

2. 2. Extension of existing SSIP systems through OBA Extension of existing SSIP systems through OBA subsidysubsidy• FIPAG will subsidize the connection to FIPAG will subsidize the connection to

reach, through SSP´s systems the poorest reach, through SSP´s systems the poorest quintilesquintiles

• Small duration contracts: 6-12 monthsSmall duration contracts: 6-12 months

3. 3. Partnerships between the main operator and SSIP Partnerships between the main operator and SSIP (leased area):(leased area):• Complementarities to increase availability of Complementarities to increase availability of

water and number of people served;water and number of people served;• Specific contractual arrangementsSpecific contractual arrangements

Regulatory frameworkRegulatory framework

Indirect regulation: The Indirect regulation: The Regulator defines the rules Regulator defines the rules but regulation is done locally but regulation is done locally by Municipalitiesby Municipalities

1.1. Lease contract to manage new public systems:Lease contract to manage new public systems:• FIPAG is building small systems to be FIPAG is building small systems to be

managed by SSIP: to serve up to 10.000 managed by SSIP: to serve up to 10.000 people each;people each;

• Duration of the contract: 5-10 years Duration of the contract: 5-10 years

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WWF4 – Right to WWF4 – Right to ChooseChoose

SSIP´s included in the National Water Policy, 2007SSIP´s included in the National Water Policy, 2007

Recognition of SSIP role and making profit their know how

VISION VISION

Build on the existing capacities to develop

reliable Mozambican water operators

Regularization Phase(existing SSIPs only)

Operational phase(existing and new SSIPs)

•Licenses with maximum duration 2 years •Minimum Standards: Water Quality•Minimum regulation;•Preparation Phase

•Licenses differentiated in classes; •Standards: Water quality, coverage rate, supply hours, pressure, losses, customer services• Effective regulation (indirect);

Institutional CoordinationLicensing Body (FIPAG), Regulator (CRA), Catchments authority (ARA SUL), Ministry of Health, Municipalities and formal operator

Performance StandardsPerformance Standards

All SSIP´s existing systems and new ones

Objectives:•Creation of a legal environment for the SSIP´s

•Regulation and supervision of SSIP´s activities;

•Performance standards

Phasing

1. SSIP´s Licensing Process1. SSIP´s Licensing Process

CONSTRAINTSCONSTRAINTS

SSIP´s low technical capacities Multiple networks in the same areaWeak organization: only 50% of the SSIP are members of 2 associations

Three SSIP´s network reticulation in a same area

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CHALLENGESCHALLENGES

PAVING THE WAY FOR LONG TERM DEVELOPMENT

Making SSIP a Partner for the FutureDevelop SSIP´s technical capacities Strengthen the SSIP professional organizationStructure the SSIP leased areaLong term sustainability