Osward M ChandaDirector –Nwasco21st November, 2007

Zambezi Sun Hotel, Victoria Falls, Zambia

EXTENT OF URBAN POOR IN ZAMBIAEXTENT OF URBAN POOR IN ZAMBIA

11.5 Million

Leverage support to areas with maximum impact –PU

46%

Urban54%

Rural

70% in low 70% in low income/ Peri-income/ Peri-urban areaurban area

3.7 Million

Separation

Water Resources/

Water Supply and

Sanitation

(WSS)

Devolution toLocal authorityAnd privateenterprises

SeparationRegulation/Executive

Functions WSS

EffectiveInstitutions

through HRD

AppropriateTechnology

for localconditions

Full cost

Recovery

through user

charges

Increased GRZSpendingon WSS

Municipality

CU Private Private

PrivateZambianCompany

49%participation

on capital

Management,leasing

etc. contract

Institutional Framework for Water Sector

MEWD1.Water Resources

2.Sector Leader

MLGH WaterSupply

&Sanitation

Parliament

Regulated

WSS ProvidersUrban Pop.:4.9MServed Pop: 3.3M (67%)Com. Utilities:10 (90%)Municipality: 13 (9%)Private Schemes:6 (1%)

1

1

MunicipalityMunicipalityDelegate

Operations

ProfessionalProfessionalProvidersProviders

Commercialised/PSPCommercialised/PSP

ENABLING ENVIRONMENT THROUGH REGULATIONGradual 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

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

Institutional set-up of RegulationInstitutional set-up of Regulation

- Water + Sanitation ACT- Water + Sanitation ACT- Statutory Instruments- Statutory Instruments

Power and Power and ResponsibilityResponsibility

ArbitrationArbitration - Minister of Water- Minister of Water- High Court -Appeal- High Court -Appeal

LargeLargeAutonomyAutonomy

- Statutory not ministerial body- Statutory not ministerial body- Own budget from fees- Own budget from fees- Transparent selection of staff- Transparent selection of staff- Private sector salaries- Private sector salaries- Reports to Parliament / MEWD- Reports to Parliament / MEWD

Small sizeSmall sizeLean StructureLean Structure

- Personnel 16- Personnel 16- Fees 2% of Fees 2% of provider’s Turnoverprovider’s Turnover- Part-time InspectorsPart-time Inspectors

Tools for Tools for regulationregulation

Trust Fund –urban Trust Fund –urban poorpoor

Service to the poor

Guidelines on Provision of servicesGuidelines on Provision of services

Publication of sector Publication of sector reportsreports

Promote comparative competition / efficiency

Tariff negotiationTariff negotiation Sustainability and efficiency

Determine service areasand key responsibilities

Licensing of providers / SILicensing of providers / SI

Minimum Service LevelBusiness Plan Investment PlanTariff adjustmentCorporate GovernanceReporting by provider

Interactive Information System Interactive Information System Baseline data on Urban poorBaseline data on Urban poor

WSS ACT1997

SI 1 Coverage of Service Area 12 Years / 75 - 90% of Population

SI 2 Drinking Water Quality 4 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 Contacts 4 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 Network 6 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

Chart 6: Hours of supply

0.04.0

8.012.016.0

20.024.0

NORTHWESTERN W

SC

SOUTHERN WSC

LUSAKA W

SC

KAFUBU WSC

MULO

NGA WSC

NKANA WSC

AHC-MM

S

WESTERN W

SC

CHIPATA

ho

urs

0.04.0

8.012.016.0

20.024.0

Min. supplyhrs

Max. supplyhrs

Av. supply hrs2003

Av. supply hrs2002

Chart 5: Water Service Coverage

30%

31%

54%

70% 71%

84%91% 92% 96%

0%

20%

40%

60%

80%

100%

Wes

tern

WSC

Northw

este

rn W

SC

Souther

n WSC

Lusaka

WSC

Chipat

a W

SC

Kafubu W

SC

Mulo

nga W

SC

Nkana

WSC

AHC - M

MS

2001/2

2002/3

Average2001/2

Average2002/3

69% average in 2002/3

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

•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