|
|
|
|
 Access to water supply remains at low levels in rural and peri-urban areas, particularly in Africa, and efforts to increase access to piped water have been slow. Small-scale providers, previously seen as temporary sources of unsafe and expensive water, are now increasingly seen as a practical way of supplying infrastructure services to low-income households and dispersed populations in rural and peri-urban areas.
Below are some examples PPIAF and its Sub-National Technical Assistance (SNTA) program have supported:
-
In 2005 PPIAF financed a study to better understand the challenges faced by Kenyan community-based organizations (CBOs) as they tried to secure market-based financing for small water operations in peri-urban areas. The study investigated ways of combining capacity building, output-based donor subsidies, and private sector financing to help CBOs expand and improve their water delivery operations. In collaboration with the Water and Sanitation Program and Global Partnership on Output-Based Aid, the study helped facilitate market-based infrastructure finance for CBO water providers. In 2008 PPIAF, through its SNTA program, approved a second grant to help the Kenyan government establish a Project Development Facility to help a larger group of CBOs prepare capital development plans and apply for investment loans from local micro-finance institutions led by K-Rep Bank. As of June 2011, this activity had resulted in 18 sub-projects receiving a total of $1.5 million in financing. These projects are benefiting over 40,000 people in peri-urban and rural areas of Kenya. Please see the related PPIAF Impact Story, International Finance Corporation SmartLesson, and Water and Sanitation Program Working Paper for more information.
-
The government of Senegal requested PPIAF assistance in 2007 to increase the reliability of water services in rural areas by supporting small-scale private operators in the maintenance of rural boreholes. The study recommended that the Department of Water Infrastructure Maintenance issue five-year licenses to private operators selected through a competitive bidding process. This recommendation was fully approved by the government in 2009. In addition, in 2010 the government announced its intention to engage a private operator to maintain 621 rural water systems in the central area of Senegal. The procurement process for the selection of the private operators is underway. Please see PPIAF’s Senegal country write-up for more detailed information.
-
In 2008 PPIAF, through its SNTA program, supported the third component of the Water and Sanitation’s Small Water Utilities Improvement and Financing Project in the Philippines. This activity aimed to assess the financing needs and options for small water utilities and analyze the likelihood of obtaining commercial financing to meet these needs. A rapid assessment of commercial financing for small water utilities revealed that private financial institutions had little knowledge of water utilities’ business and were noncommittal about providing financing to the utilities. The assessment identified the utilities’ lack of credit history, inability to present bankable projects, and inability to ring-fence business accounts as key constraints to financing. Several actions were recommended to address these constraints, including the establishment of sound regulations and clear performance standards. Given the findings of the rapid assessment, the activity’s focus shifted to strengthening the utilities’ financial management systems. A manual on ring-fencing water utility accounts was prepared, which provides an operational framework and step-by-step guide for Local Government Units (LGUs) to ring-fence the accounts of their water utilities. The ring-fencing manual was adopted by the Darasa Rural Water and Sanitation Association (RWSA), the Buhi Multi-Purpose Cooperative, and the Maragusan Multi-Purpose Cooperative. As a result, the Darasa RWSA received a PHP 1 million (roughly $22,700) one-year loan from Landbank to develop a water supply source. The manual was also adopted and piloted by Antequera Waterworks System in Antequera, Bohol, starting in November 2008. The pilot enhanced the creditworthiness of the small water utility and increased the capacity of local government units in ring-fencing accounts related to the operation of water utilities. Antequera Waterworks subsequently received a PHP 1.5 million (approximately $33,000) seven-year loan from Landband to finance the construction of a new water source. After the SNTA activity, the ring-fencing manual was further piloted by the Philippine Water Revolving Fund to improve the water utility operations in five LGUs and three cooperatives. The Margosatubig, Jagna, and Alberquerque LGUs improved the performance of their water utilities, including increased collection efficiency. A total of 33,300 people have new or improved access to water services as a result of this activity.
-
PPIAF is currently supporting the government of Mali in developing an enabling environment for private sector participation that allows effective delivery of water services by small-scale private operators, by looking at regulation, contracting, and use of technical management tools. More information will be posted as it becomes available.
|
|
|
|
|
|