Financing investments in water supply and sanitation

Financing investments in water supply and sanitation has been a perennial problem in all countries of Latin America and the Caribbean. The contribution to capital funding derived from the income of operating companies has been very small, a direct consequence of unrealistically low tariffs. The situation has worsened with the increasing need to provide sewage treatment to reduce the gross pollution of most water bodies in the vicinity of large cities. This paper, on the basis of recent studies conducted in EC LAC, explores the practicability of the self-financing of water supply and sanitation services, including sewage treatment, through the income derived from tariffs. If this is to be achieved then it is important that the entire population pays for services, an issue of some importance given the unequal distribution of income in most cities of the region. The conclusion reached is that on the basis of the available information on costs, together with the experience of some countries, financing through tariffs is feasible, particularly if subsidies are provided to the poorest households. Tariff based financing is probably the only means of achieving universal coverage by the year 2000 as well as sewage treatment, the rehabilitation of existing systems, maintenance and the necessary institutional development .     

Financing water supply and sanitation under Agenda 21

This paper assesses the financing challenges which have to be met by developing countries if water resources are to be managed efficiently, if the quality of the aquatic environment is to be improved and if water related services are to be delivered in a responsive, efficient and equitable way. This paper takes the view that attaching 'price tags' to water supply and sanitation, as was tentatively done in Agenda 21, is a misguided approach and that what is needed is articulation of clear principles which should underpin the financing of water supply and sanitation investments. To illustrate the approach the paper focuses heavily on experiences from World Bank water supply, sanitation and urban development projects over the past 30 years. The challenge is to develop appropriate institutional and financial arrangements. The essence of such arrangements is that they ensure that societies mobilize appropriate levels of resources for providing water related environmental services and that these resources are used in the most efficient and effective way possible .     

Beyond 'coverage'

Full integration of projects and programmes for rural water supply and sanitation has yet to take place in most developing countries, thus contributing to a situation in which long-term success in the sector has been difficult to demonstrate. It is suggested that full integration in individual countries will require reorientation of project planning procedures, and the development of a community support programme (CSP) to provide backup to communities after project completion. Ultimately, full integration of projects and programmes is an iterative process, requiring the evaluation of past efforts in the field. Experience in the International Drinking Water Supply and Sanitation Decade (1981–90) has demonstrated that coverage alone — as the de facto indicator of success — is not sufficient (particularly in rural areas). The 1990s represent a fresh chance to modify indicators for success, and to go beyond coverage by integrating projects and programmes for rural water supply and sanitation.     

The International Drinking Water Supply and Sanitation Decade in retrospect and implications for the future

In global terms this paper reviews the progress made during the International Drinking Water Supply and Sanitation Decade. There has been considerable progress. In terms of percent receiving water services, the urban areas made good progress: 77% in 1980 to 82% in 1990. In the rural areas progress was even greater, 30% had water services in 1980 versus 63% in 1990. There was also considerable progress in institutional terms. A positive trend towards better linkage betweeen authorities dealing with water supply and sanitation and those dealing with economic development, was one. Another was the awareness of the need for community involvement. In some cases progress was hampered by fragmentation of governmental authorities dealing with water and sanitation at the rural and/or urban level. In the 1990s an important issue will be financing the infrastructure needed to bring water and sanitation services to those not already covered and to an increasing population. Institutional issues will continue to be important as well.     

Past and future sustainability of water policies in Europe

The article contributes to a discussion on two global issues on water: water resources management, and water supply and sanitation. Focusing on Europe, it traces the legal roots of current systems in history: as a resource, water is considered as a common property, rather than a market good; while as a public service it is usually a commodity. Public water supply and sanitation technologies and engineering have developed under three main paradigms: quantitative and civil engineering; qualitative and chemical/sanitary engineering (both on the supply side); and the most recent one, environmental engineering and integrated management (on the demand side). The cost of public drinking water is due to rise sharply in view of the two‐fold financial challenge of replacing an ageing infrastructure and keeping up with ever‐rising environmental and sanitary quality standards. Who will pay? Government subsidies, or water users? The author suggests that apparent successes with privatisation may have relied heavily on hidden government subsidies and/or the healthy state of previously installed water infrastructure: past government subsidies are still felt for as long as the lifetime of the infrastructure. The article stresses the importance of public participation and decentralized local management of water and sanitation services. Informing and involving users in water management decisions is seen as an integral part of the ‘ethics’ side of the crucial three E's (economics, environment, ethics). The article strongly argues for municipal provision of water services, and hopes that lessons learnt and solutions found in the European experience may serve water services management efforts in other regions of the world.     

Management strategies for rural water development

Non-sustainability of programmes and projects has become an overriding concern for the water supply and sanitation sector. Poor programme conceptualization, unimaginative planning, use of inappropriate technologies and rigid management approaches have contributed to high rates of programme failure. Five major water supply programmes undertaken during the UN Water Decade in the Western Sudan were analysed for their management approaches, appropriateness and sustainability. Results prompt the conclusion that sustainable projects need to adopt an adaptive and flexible management approach and to employ a conceptual framework which emphasizes community management, the empowerment of women, selection of appropriate low cost technologies, built in operation and maintenance strategies, cost recovery and institutional support to government.     

CAPITAL COST OF RURAL WATER DISTRIBUTION SYSTEMS1

ABSTRACT: The cost of water service to rural residents is very high compared to urban areas. This is true even after subsidization by Farmers Home Administration (FmHA) loans and grants. Capital cost data on 44 projects financed by the Ohio office of the FmHA during the period August 1968 to January 1977 are used to derive cost equations for 26 components of rural water distribution systems. These components represent 92 percent of the capital cost of the pipeline distribution systems studied. The data can be used to economically design rural water supply systems from a capital cost viewpoint. More data are needed on operation and maintenance costs as well as central and cluster well costs before totally economic system designs can be undertaken.     

Whose land? Whose water? Water rights,equity and justice in a peri-urban context

Based on research in peri-urban areas, this paper explores questions of water justice in the context of emerging global cities. With the growth of large cities, authorities focus on meeting their water needs through infrastructure expansion and supply augmentation. The changing water needs and priorities of peri-urban locations, which provide land and water for urban expansion, receive scant attention. This paper looks at changing patterns of water use between rural and urban uses, based on research in peri-urban Gurgaon, an emerging outsourcing and recreation hub of North West India. It describes the diversity of ways in which peri-urban residents lose access to water as the city expands. These processes raise important questions about water justice, about the politics of urban expansion, and the implicit biases about whom these cities are meant for.     

Water supply policies and issues in developing countries

The significant progress made during the UN International Water Decade is reviewed, eight years after its inception in 1981. Major issues remain, especially in rural areas. The advantages of an integrated water resource planning framework (IWRP) are explained, including the use of this process to develop a flexible strategy for the water and sewerage sector to meet national policy objectives. Economic efficiency in supply implies optimal service quality and least cost planning, while efficient pricing policy requires the implementation of long-run marginal cost based tariffs. Better sector organization, management, accountability, options for decentralization and innovative financing methods are also discussed.     

ECONOMIC DESIGN OF CENTRAL WATER SUPPLY SYSTEMS FOR MEDIUM SIZED TOWNS1

ABSTRACT. Adequate and good-quality water supply for medium sized towns is costly when there are insufficient quantity and low quality of groundwater or surface water. In a central water supply system serving a number of towns, the economies of scale may permit a sufficient and good-quality supply at lesser rates. Such a system has the flexibility of supplying rural population through small service lines. The system may be an interbasin or intrabasin conveyance depending on the location of a suitable water source and the economics of the supply network. Seven cost elements are pertinent to the optimum or least-cost design of network consisting of pipelines and pumping stations. The relevant cost functions are based on the available data gathered from various sources. Water conveyance costs are calculated for various flow rates, pipeline diameters, flow variabilities, static heads, and interest rates, thus providing a measure of sensitivity of the conveyance cost to such variations. The economies of scale, the sensitivity of optimum unit conveyance costs, and variations in unit costs with change in cost functions are useful in making a feasibility study for a proposed conveyance system.     

Water injustices and potential remedies in indigenous rural contexts: A water justice analysis

This paper examines Indigenous water rights in rural and remote Australia and how water justice seems to be elusive in many of these spaces. The purpose of this literature review is to link water justice theory and practices to the way different water cultures are valued in Australia while simultaneously critiquing the water justice movement. This paper situates the notion of water justice as a specific kind of environmental justice to cater for the unique qualities that define this resource. In doing so, this paper draws on Schlosberg’s (2004) conception of environmental justice with its trivalent approach that describes the following three ‘circles of concern’: recognition of difference, plurality of participation, and finally equitable distribution of resources and costs and benefits. This framework provides that if the first two ‘circles of concern’ are not in existence in a natural resource management process, then inequitable distribution of that resource is a likely outcome. This paper presents two areas where water injustices exist in the context of Indigenous rural and remote Australia. The first relates to how Indigenous rights to water have been inadequately recognized and the second presents empirical data on water supply and sanitation in rural and remote Indigenous communities that demonstrates ongoing dilemmas around securing this basic human right. The undervaluing of cultural differences relating to water is argued to be antecedent to the injustice manifest in poor water supply and sanitation provision for Indigenous rural contexts. This paper does not attempt to survey the body of ethnographic work on society-water relations in rural and remote Indigenous Australian contexts but reviews the gaps in current mainstream acknowledgement of Indigenous water cultures. In exploring water justice in rural and remote Indigenous Australia, this paper offers a novel approach to a dilemma more frequently analysed solely as a health development issue.     

Institutional Aspects of Water Supply and Sanitation in Asia

The world has enough water to meet the basic human needs for potable water, so the problem of lack of access to safe drinking water is not technical but institutional. The various institutional shortcomings that limit the ability of the developing countries of Asia to supplying potable water and adequate sanitation are reviewed, and some recommendations for alleviating the institutional difficulties are explored.     

Integrated urban water resources management

The paper focuses on the organizational and institutional issues of water resources management strategies. It considers both as cross-sectoral issues, and in terms of the communication and coordination of activities among all levels of sector agencies. It concentrates heavily on the economic aspects of planning for urban and other water use. Over the past few decades tremendous progress has been made in providing basic water supply and sanitation to the people of the world. Nevertheless, much remains to be accomplished. The only way of resolving this problem appears to be to make the current utilities more effective economically. The single most important policy improvement would be to ensure that each utility covers its operating costs as well as its capital costs by the economic pricing of water use.     

Reflexive assessment of practical and holistic sanitation development tools using the rural and peri-urban case of Mexico

Lack of sanitation affects the lives of billions of people worldwide. It is now generally agreed that sustainable solutions to this complex problem require social and cultural factors to be addressed in addition to the habitual economic and technical aspects. Increasingly, sector professionals view the fragmented approaches to sanitation as a limiting factor. This refers to the fragmentation of the knowledge on the subject among often hermetic disciplines and to the distribution of political mandates on sanitation across many institutions, which independently tackle specific aspects of the issue. Holistic approaches have often been suggested as a solution. This paper presents the development of such a holistic approach, designed to assess sanitation development in rural and peri-urban settings. Tested in three Mexican communities, it relies on qualitative research tools to identify critical influences to sanitation development. This article presents generic results about micro and macro-factors affecting sanitation development in Mexican villages, and reflexively examines the research process as well as the strengths and limitations of the approach. The conceptual map developed for each case study successfully highlights the interconnectedness of all factors affecting sanitation development. Despite some weaknesses, these maps constitute a practical assessment tool for interdisciplinary teams deployed in integrated water and sanitation development programs and a valuable didactic tool for training activities.     

The production of uneven access to land and water in peri-urban spaces: de facto privatisation in greater Accra

ABSTRACT

Peri-urban spaces are frontiers of privatisation where inequalities in access to land and water evolve. In this article, we analyse a particular mode of land and water privatisation in peri-urban spaces of the Greater Accra Metropolitan Area (GAMA), Ghana. We illustrate that in the domain of land, traditional authorities tend to act as private owners rather than custodians of customary land, while in the domain of water, multiple private water providers have emerged next to the official water utility. A combined reading and analysis of these processes as forms of de facto privatisation contributes to understanding the similarities in the control over and access to land and water in peri-urban spaces. We show that in the de facto privatised control context of the peri-urban GAMA, access gained to land and water has to be actively maintained. Both gaining and maintaining access exhibit socio-economic inequalities and this is particularly so in the case of maintaining access. The article is a call for a better connection between land and water studies in order to deepen understanding of the processes at play in peri-urban spaces.     

Unsafe waters: the hydrosocial cycle of drinking water in Western Mexico

ABSTRACT

Mexico faces multiple water quality challenges, both in terms of the water supplied to the population as well as surface and underground water sources. Problems with drinking water supply affect the population in diverse ways, from associated health risks to high levels of intermittency in service to the poor perception of the quality of piped water – leading to high levels of bottled water consumption. In this text we explore the issue of drinking water quality in three contexts in the state of Jalisco: in Guadalajara, the state’s main urban area, in the peri-urban municipality of El Salto, and in the mid-sized city of San Juan de los Lagos. Our analysis explores drinking water regulations, the water quality monitoring undertaken by state and local authorities, access to information, as well as the actions and perceptions of water service providers. Looking at cases of indirect reuse of wastewater as well as groundwater sources with high levels of fluoride and arsenic, we argue that the foregrounding of water quality is key to illuminating social inequalities in access to water and in teasing out power relations prevailing in current hydrosocial regimes. We conclude that this hydrosocial cycle of drinking water is characterised by prioritising access to water for economic actors, facilitated by lax regulations and minimal enforcement, as well as by the systematic neglect by government authorities at all levels of the protection of watersheds and aquifers, and of water quality issues generally.     

RURAL WATER SUPPLIES IN DEVELOPING COUNTRIES1

The best available figures indicate that on a global basis only about 10 per cent of the rural populations have a safe source of water, with the Region of the Americas having the highest coverage at 19 per cent. The program of the Second U.N. Decade proposed to supply coverage to about 200 million persons at an estimated cost of 1.6 billion dollars by 1980. The elements of a rural water supply program are presented, then the difference between rural and urban supplies in such areas as community participation, financing, technical assistance, etc., are discussed. The use of revolving funds to help finance this effort, and the use of the mass approach to help the governments increase their program coverage, are also presented. This paper concludes that while much has been done in the 60's, much remains to be done, but that the basic tools for this effort are available.     

Water quality and Health

There is still serious impact of inadequate and unsafe water supply on human health in many countries, and not only in developing ones. Waterborne diseases, such as diarrhoea, are responsible for more than 3 million deaths per year. Vector-borne diseases, such as malaria and schistosomiasis, are still rampant in the tropics causing severe human suffering and economic losses. Chemical hazards related to water are not only due to the presence of toxic substances, such as pesticides or heavy metals, but also due to excessive or deficient amounts of natural substances such as fluoride or iodine. Chemical risks have to be balanced with biological risks, and disinfection practices enforced without compromises. There is a long way to go, however, to fill the gaps in service coverage for water supply and sanitation, particularly in the rural areas and in the impoverished periurban areas. Various international programmes are in place or being initiated to this end.     

Incentive pricing and cost recovery at the basin scale

Incentive pricing programs have potential to promote economically efficient water use patterns and provide a revenue source to compensate for environmental damages. However, incentive pricing may impose disproportionate costs and aggravate poverty where high prices are levied for basic human needs. This paper presents an analysis of a two-tiered water pricing system that sets a low price for subsistence needs, while charging a price equal to marginal cost, including environmental cost, for discretionary uses. This pricing arrangement can promote efficient and sustainable water use patterns, goals set by the European Water Framework Directive, while meeting subsistence needs of poor households. Using data from the Rio Grande Basin of North America, a dynamic nonlinear program, maximizes the basin's total net economic and environmental benefits subject to several hydrological and institutional constraints. Supply costs, environmental costs, and resource costs are integrated in a model of a river basin's hydrology, economics, and institutions. Three programs are compared: (1) Law of the River, in which water allocations and prices are determined by rules governing water transfers; (2) marginal cost pricing, in which households pay the full marginal cost of supplying treated water; (3) two-tiered pricing, in which households' subsistence water needs are priced cheaply, while discretionary uses are priced at efficient levels. Compared to the Law of the River and marginal cost pricing, two-tiered pricing performs well for efficiency and adequately for sustainability and equity. Findings provide a general framework for formulating water pricing programs that promote economically and environmentally efficient water use programs while also addressing other policy goals.     

Water supply and sanitation services for all: global progress during the 1990s

The Earth may be largely covered with water, but over one billion people are estimated to be without safe drinking water and almost 2.5 billion (40% of the world's population) without adequate sanitation at the outset of the new millennium. The provision of safe water and sanitation for all poses several serious institutional and economic challenges at international, national and local levels. Despite the various political commitments made from the late 1970s onwards, these commitments have remained largely unfulfilled. Even though some efforts to expand coverage have been made over the past two decades, much of those efforts have been undermined by socioeconomic problems and growing population, particularly in the urban areas of developing countries. The water supply and sanitation sector is actually in acute need of new investments for expansion and maintenance of facilities. Nonetheless, some positive trends can be discerned, such as, for example, the increasing recognition of integrated water resources management, environmental sanitation, public-private partnerships and women as a key for improvement and expansion of services.