DEMOCRATIC REPUBLIC OF CONGO: Identifying low-carbon public-private partnership opportunities for rural and peri-urban water supply
In recent years, the Government of the Democratic Republic of Congo has prioritized reforms to address significant challenges in water security. Currently, only 22 percent of the rural population has access to drinking water, and just 9 percent has access to basic sanitation, compared to 74 percent in urban areas. To address these disparities, the government has set ambitious goals to achieve 80 percent water access in urban areas and 60 percent in rural areas, as well as universal access to water in schools and health centers by 2030. To meet these targets, the government is undertaking comprehensive reforms in the water supply and sanitation sectors and has launched a national program to improve access and ensure the sustainability of services.
As part of these efforts, the government sought assistance from the World Bank to develop a framework that integrates policy reforms, strategic planning, and investments. This framework aims to prioritize and sequence interventions for the sustainable development of the water supply and sanitation sector, including engaging private sector partners in service delivery. The initiative also includes technical assistance and measures to promote market participation, particularly to increase private sector involvement in rural and peri-urban water systems.
In 2023, technical assistance was provided through a partnership to support the government in designing and implementing environmentally sustainable public-private partnership models for rural and peri-urban water systems. These systems are intended to be financed through the International Development Association of the World Bank and to leverage domestic commercial funding through a blended financing approach. The assistance included an assessment of gaps in the institutional and legal framework, a market scoping study, and an analysis of financing needs.
The market study evaluated how the national water program could support candidates for public service delegation by proposing tailored criteria for fund allocation to address existing sector challenges. The study identified a significant presence of private sector operators in rural and peri-urban water services, including private companies, community-based water management associations, and other local organizations. However, it found that formal public-private partnerships are rare, with only one significant operator holding a concession in Nord Kivu and Goma. The findings suggested that clustering services to cover larger populations could make delegation by concession more feasible. However, the analysis also highlighted barriers, such as financial products offered by banks and microfinance institutions being unsuitable for the water sector due to high guarantee requirements, low expected profit margins, and the remote location of bank branches.
To address these challenges, a roadmap was developed, outlining priority actions to facilitate private sector participation in the Democratic Republic of Congo’s water sector. The roadmap includes recommendations to improve the legal and institutional framework, such as revising the national water policy, updating regulations related to the water law, revising procurement guidelines, operationalizing a regulatory authority, and enhancing capacity development and financing mechanisms.
This roadmap and a validated legal and institutional diagnostic report have been endorsed by the Ministry of Hydraulic Resources and Electricity and key stakeholders. These efforts aim to establish a supportive environment for private sector engagement and to lay the groundwork for sustainable and equitable water service delivery in rural and peri-urban areas across the Democratic Republic of Congo.