Osward M Chanda Director –Nwasco 21 st November, 2007 Zambezi Sun Hotel, Victoria Falls, Zambia

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Osward M Chanda Director Nwasco 21 st November, 2007 Zambezi Sun Hotel, Victoria Falls, Zambia Slide 2 EXTENT OF URBAN POOR IN ZAMBIA 11.5 Million Leverage support to areas with maximum impact PU 46% Urban 54% Rural 70% in low income/ Peri- urban area 3.7 Million Slide 3 Separation Water Resources/ Water Supply and Sanitation (WSS) Devolution to Local authority And private enterprises Separation Regulation/ Executive Functions WSS Effective Institutions through HRD Appropriate Technology for local conditions Full cost Recovery through user charges Increased GRZ Spending on WSS Slide 4 Municipality CUPrivate Zambian Company 49% participation on capital Management, leasing etc. contract Institutional Framework for Water Sector MEWD 1.Water Resources 2.Sector Leader MLGH Water Supply & Sanitation Parliament Regulated Slide 5 WSS Providers Urban Pop.:4.9M Served Pop: 3.3M (67%) Com. Utilities:10 (90%) Municipality: 13 (9%) Private Schemes:6 (1%) 1 1 Slide 6 Municipality Delegate Operations ProfessionalProvidersCommercialised/PSP ENABLING ENVIRONMENT THROUGH REGULATION Gradual tariff adjustment to cost covering levels Clear Minimum Service Level Requirements with Targets Support: performance management systems & Recruitment of Magt Good Management Information System from Utility to Regulator Institutional Setup Gives sufficient Independence & Promote Professionalism Several Commercial Units Allows for Competition Independent Professional Regulatory Agency Slide 7 Active Involvement of CUs in resource Mobilisation for investment Realising that the Difference will be made in PU areas areas. Commercialise service delivery in the remaining 22 Local Authorities Improved Corporate Governance Addressing the Human Resource issues Slide 8 Institutional set-up of Regulation - Water + Sanitation ACT - Statutory Instruments Power and Responsibility Arbitration Arbitration - Minister of Water - High Court -Appeal LargeAutonomy - Statutory not ministerial body - Own budget from fees - Transparent selection of staff - Private sector salaries - Reports to Parliament / MEWD Small size Lean Structure - Personnel 16 - Fees 2% of providers Turnover - Part-time Inspectors Slide 9 Tools for regulation Trust Fund urban poor Service to the poor Guidelines on Provision of services Publication of sector reports Promote comparative competition / efficiency Tariff negotiation Sustainability and efficiency Determine service areas and key responsibilities Licensing of providers / SI Minimum Service Level Business Plan Investment Plan Tariff adjustment Corporate Governance Reporting by provider Interactive Information System Baseline data on Urban poor WSS ACT 1997 Slide 10 SI 1 Coverage of Service Area 12 Years / 75 - 90% of Population SI 2 Drinking Water Quality4 Years for sufficient testing 11 Indicators for Minimum Service Level (SI) SI 3 Service Hours 16-24 h/d continuity, opening of Kiosk 12h/d, pay stations 40h/w SI 4 Billing for Services 10 years for 100% metering SI 5 Client Contacts4 years to response time targets SI 6 Water Supply Interruption and de-blockage of sewer Emergency supply after 48 h of interruption of water supply SI 7 Pressure in the Network6 years 7 lt/min Min. Flow SI 8 Unjustified Disconnection Compensation Payment SI 9 Sewage Flooding Reporting on sewer flooding SI 10 Quality of Effluent 4 years for tests - programme SI 11 Support to Public Institut. 1 year for 100% metering Slide 11 Slide 12 ALLOCATING RESPONSIBILITIES FOR SERVICE PROVISION TO THE POOR Providers have to offer sufficient adequate outlets Kiosk commercialized public stand posts Defining service area in the license/ jurisdiction of local authority Extending service delivery into low income areas is integral part of investment plan from providers Provider remains responsible for quality and tariffs of other players (NGO, communities) within licensed area Slide 13 Access, price and quality of Water are regulated Low Cost Technology Community Involvement Vendors from Community Water Sale by Volume; payment by quantity Over 700,000 Got access to water between 2003-2007 Slide 14 Slide 15