THE ROLE OF THE REGULATOR IN SERVING

THE URBAN POOR-ZAMBIAN EXPERIENCE

PRESENTED BY

KASONGE WATSON LUMBA

NWASCO, ZAMBIA

Water supply and sanitation in Zambian townsWater supply and sanitation in Zambian towns

46% 54%

10 Million

70% low income area70% low income area

3 Million

9 Public utilities

33 Local Authorities

6 Private

REGULATING WATER SUPPLY

• PROBLEM OF WATER SUPPLY SECTOR

IT HAS LESS SCOPE OFCOMPETITION

MONOPOLISTICBEHAVIOUR

NO REGULATION MAY LEAD TO

LACK OF INVESTMENTIN APPROPRIATE TECHNOLOGIES

HIGH TARIFFS

DESCRIMINATION AGAINST THE POOR

COMPROMISE IN SERVICEQUALITY

EXTERNAL INTERFERENCES

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 - MEWD- MEWD- High - High CourtCourt

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 Government / - Reports to Government / MEWDMEWD

- Board 14 Directors- Board 14 Directors- Personnel 13- Personnel 13- Fees 1% provider Fees 1% provider turnoverturnover- Water Watch GroupsWater Watch Groups

Small sizeSmall sizeLean StructureLean Structure

Licensing of providersLicensing of providers

Tariff negotiationTariff negotiation

Enforcement noticesEnforcement notices

Guidelines on Provision of servicesGuidelines on Provision of services

Incentives - PenaltiesIncentives - Penalties

Comparative Comparative publicationpublication

Extension to peri-urban / DTFExtension to peri-urban / DTF

Enforcement Enforcement tools for tools for

regulationregulation

THE CHALLENGE POSED BY THE URBAN POOR

• DEMAND FOR SAME QUALITY OF SERVICES

• THEY ARE IN THE MAJORITY (about 50-70% of the urban population in Zambia)

• THEY LIVE IN UNSTRUCTURED LOCATIONS

• THEY HAVE MANY ADVOCATES(e.g. politicians, pressure groups, Ngos)

• DISPARITIES IN INCOME DISTRIBUTION

POSSIBLE SERVICE PROVIDERS TO THE URBAN

POOR

• LOCAL AUTHORITY

• PUBLIC UTILITIES

• DONOR/NGOS AGENCIES (Financing& Implementation)

• PRIVATE OPERATORS (SPP, IMC)

Strategy in Servicing 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

NWASCO’S OTHER AVENUES FOR ENSURING THE POOR ARE SERVED

• LOBBY GOVERNMENT TO GIVE TAX INCENTIVE TO OPERATORS SERVICING THE URBAN POOR (classify water providers in zero rated class for VAT, exempt from import taxes, reduced electricity bill)

• ADVISE GOVERNMENTS IN STRUCTURING PSP AGREEMENTS

• ASSIST POLITICIAN IN UNDERSTANDING ISSUES AFFECTING THE SECTOR

THANK YOU VERY MUCH FOR YOUR ATTENTION