Water Supply and Sanitation in Uzbekistan Ayse Kudat The World Bank 1998

Water Supply and Sanitation in Uzbekistan

Ayse Kudat

The World Bank

1998

Low tariffs, costs not recoveredWith low tariffs,

consumers use water inefficiently

High water usage drives up costs and investment needsUtility lacks resources,

postpones investment and maintenance

Assets and service quality deteriorateWith the poor service,

customers are less willing to pay

The utility depends increasingly on state subsidiesManagers lose their

autonomy and incentives to perform (soft budget) Efficiency drops

Subsidies often fail to materialize Utility lacks resources, even to

pay wages or recurrent costs

System assets go “down the drain”

CRISIS, HUGE RECONSTRUCTION COSTS

Motivation and service deteriorate further

What low tariffs do to utilities... Figure 1

Source: Presentation “Water and Wastewater Utilities: covering costs, financing investments,” Vincent Gouarne, Improving Water and Wastewater Services Seminar, Golitsyno, April 1997

Education Levels in Gagarin and OriolEducation Levels in Gagarin and Oriol

0 5 10 15 20 25 30 35 40

No education

Primary school

Unfinished secondaryschool

Secondary school

Special secondaryschool

High education

percent of people

Oriol

Gagarin

Oriol

Gagarin

Figure 2

Source: Household Survey in Gagarin and Oriol, March and July 1997

Employment Status of Oriol and Gagarin ResidentsEmployment Status of Oriol and Gagarin Residents

0 5 10 15 20 25 30 35 40 45 50

Other

Retired, working

Housekeeping

Unemployed

Temporarily unemployed

Retired, not working

Salaried workers

percent of people

Oriol

Gagarin

Education and health

workers

Government and military

Construction

Agr., transport and

other

Industrial workersSmall

business

Figure 3

Source: Household Survey in Gagarin and Oriol, March and July 1997

Gagarin

Construction

Agr., transport and other

Education and health

workers

Government and military

Industrial workers

Small business

Oriol

Average Monthly Household Income in Gagarin

0

10

20

30

40

50

60

70

80

90

0

29

7

59

5

89

2

118

9

14

86

17

84

20

81

23

78

26

76

29

73

average monthly household income, thousands of rubles

nu

mb

er

of

ho

us

eh

old

s Average = 881,196 rubles/month

Figure 4A

Source: Household Survey in Gagarin, March 1997

-5

0

5

10

15

20

25

30

35

40

45

79

26

1

44

4

62

6

80

9

99

1

117

4

13

56

15

39

17

21

19

04

20

86

22

69

24

51

26

34

household income, thousands of rubles

nu

mb

er

of

ho

us

eh

old

s

Average Monthly Household Income in GagarinHouseholds Which Have Central Pipeline Connections

Average = 931,988 rubles/month

Figure 4B


0

5

10

15

20

25

30

35

40

45

100 379 658 937 1216 1495 1774

monthly household income, thousands of rubles

nu

mb

er

of

ho

us

eh

old

s

Average Monthly Household Income in GagarinHouseholds Which do not have Central Pipeline Connections


Figure 4C


Paid on time7% Hardly paid

1%

Minor delays38%

Very irregular payments

54%

Delays in Wage and Pension Payments in GagarinDelays in Wage and Pension Payments in Gagarin

Paid on time23%

Minor delays25%

Hardly paid6%

Very irregular payments

47%

Wage Payments

Average delay: 3.09 monthsAverage delay: 3.09 months

Pension Payments

Average delay: 1.99 monthsAverage delay: 1.99 months

Figure 5


0

10

20

30

40

50

60

70

80

90

37 327

617

907

1198

1488

1778

2068

2358

2648

2939

3229

3519

nu

mb

er

of

ho

us

eh

old

s


Average Monthly Household Income in Oriol


Source: Household Survey in Oriol, July 1997

Figure 6A

Average Monthly Household Income in OriolHouseholds Which Have Central Pipeline Connections

0

10

20

30

40

50

6037 24

9

461

673

885

1097

1309

1521

1733

1945

2157

2369

2581

2793

3005

3217

3429

3500


nu

mb

er

of

ho

us

eh

old

s


Average = 1,002,945 rubles/month

Figure 6B

0

10

20

30

40

50

60

93 873

1652

2432

3211

3500


nu

mb

er

of

ho

us

eh

old

s

Average Monthly Household Income in GagarinHouseholds Which do not have Central Pipeline Connections



Figure 6C

Problems with the Water Supply for Connected Households in GagarinProblems with the Water Supply for Connected Households in Gagarin

0 5 10 15 20 25 30 35 40

No significant problems

Unavailability of cold water

Pressure and floor problems

Taps and pipes often break

Problems with hot water

Suspended solids

percent of households

3rd priority

2nd priority

1st priority

Figure 7A


0 5 10 15 20 25 30 35

No significant problems

Unavailability of cold water

Pressure and floor problems

Taps and pipes often break

Problems with hot water

Suspended solids


3rd priority

2nd priority

1st priority

Problems with the Water Supply for Connected Households in OriolProblems with the Water Supply for Connected Households in Oriol


Figure 7B

Complaints About Water and Evaluation of Its Quality for Connected Households in Gagarin

Complaints About Water and Evaluation of Its Quality for Connected Households in Gagarin

Have complaints (88.2%)

Unsure (2.2%)

No complaints (9.6%)

0 10 20 30 40 50 60 70 80

Bacteria

Smell

Taste

Color

Suspended solids


Figure 8A



Complaints About Water and Evaluation of Its Quality for Connected Households in Oriol

Complaints About Water and Evaluation of Its Quality for Connected Households in Oriol

Have complaints (93.6%)

No complaints (6.4%)

0 10 20 30 40 50 60 70 80

Bacteria

Smell

Taste

Color

Suspended solids


Figure 8B

0%

5%

10%

15%

20%

25%

0 1000 2000 3000 4000 5000 6000

monthly average household income (thousand rubles)

perc

en

t o

f m

on

thly

avera

ge h

ou

seh

old

in

co

me

Current payments for water as part of income

Willingness to pay for improvements in water aspart of incomeTrend: Willingness to Pay

Trend: Current payments

Connected Households in GagarinWillingness to Make Monthly Payments as Function of Income

Willingness to payCurrent payments

Figure 9A


-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


pe

rce

nt

of

mo

nth

ly h

ou

se

ho

ld in

co

me

Current payments for water as part of income

Willingness to pay for improvements in water as part of income

Connected Households in GagarinWillingness to Make Monthly Payments for Improved Water Quality

81.4% are willing to pay for improvementsAverage = 3.6% of monthly household income

Current average payments = 2.0% of monthly household income

Caution: 18.6% are not willing to pay anything


Figure 9B

Unconnected Households in GagarinWillingness to Make Monthly Payments for Improvements in Water Supply

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

percent of unconnected households

pe

rce

nt

of

mo

nth

ly in

co

me

Current payments as percent of income

Willingness to make monthly payments as percent of income


Current payments = 0.25% of monthly household incomeCaution: 43.4% are

not willing to pay anything


Figure 9C

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%37

234

290

300

350

400

486

508

563

600

650

683

750

782

817

900

920

995

1026

1070

1120

1193

1239

1340

1400

1475

1550

1683

1806

2053

2750

Current payments for w ater as part ofincomeWillingness to pay for improvements in w ateras part of incomeTrend: Willingness to pay

Trend: Current payments

monthly average household income, thousands of rubles

pe

rce

nt

of

mo

nth

ly a

ve

rag

e h

ou

se

ho

ld in

co

me

Connected Households in OriolWillingness to Make Monthly Payments as Function of Income


Current paymentsWillingness to pay

Figure 10A

Connected Households in OriolWillingness to Make Monthly Payments for Improved Water Quality

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0%

8%

15%

22%

29%

37%

44%

51%

58%

66%

73%

80%

87%

95%

Current payments for water as part ofincome

Willingness to pay for improvementsin water as part of income


pe

rce

nt

of

mo

nth

ly h

ou

se

ho

ld in

co

me


Caution: 20.3% are not willing to pay anything

Current average water payments = 1.1% of monthly household income


Figure 10B


Unconnected Households in OriolWillingness to Make Monthly Payments for Improvements in Water Supply

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%2% 11%

20%

30%

39%

48%

57%

67%

76%

85%

94%

Current payments for w ater as part ofincome

Willingness to pay for improvements in w ateras part of income

percent of unconnected households

pe

rce

nt

of

mo

nth

ly in

co

me

63% are willing to pay for improvementsAverage = 3.3% of monthly household income

Current average payments = 0.63% of monthly household income

Caution: 37% are not willing to pay for improvements

Figure 10C

Improvements in utensils in the house28.9%; 24,000 rubles

Improvements in Outside Pipes28.2%; 25,600 rubles

Improvements in Outside Sewerage Pipes22.6%; 24,800 rubles

Inside Connections10.9%; 22,600 rubles

Inside sewerage system connection10.5%; 24,200 rubles

Other Improvements 5.6%; 33,000 rubles

Water System Improvements Demanded in Gagarin and Willingness to PayWater System Improvements Demanded in Gagarin and Willingness to Pay

Other category includes cleaner water, increase in pressure, improvements in hot water and connections to outside the house

Figure 11A


Improvements in Inside Pipes28.9%; 28,000 rubles

Improvements in utensils in the house52.1%; 21,150 rubles

Improvements in Outside Pipes20.4%; 20,500 rubles

Improvements in Outside Sewerage Pipes9.2%; 18,000 rubles

Inside Connections10.2%; 18,100 rubles

Inside sewerage system connection13.4%; 19,700 rubles

Other Improvements 4.2%; 27,000 rubles

Water System Improvements Demanded in Oriol and Willingness to PayWater System Improvements Demanded in Oriol and Willingness to Pay

Other category includes cleaner water, increase in pressure, improvements in hot water and connections to outside the houseSource: Household Survey in Oriol, July 1997

Improvements in Inside Pipes44.7%; 21,700 rubles

Figure 11B

Documents

Water Supply and Sanitation in Uzbekistan Ayse Kudat The World Bank 1998