Universal access to water and sanitation: Why the private sector must participate

Against the background of the current state of provision of drinking water and sanitation in the world — with one billion lacking safe water, and 2.2 billion not having adequate sanitation — this article argues that private participation is necessary. The most important issues for the management of water utilities in the 21^st century are identified as mobilizing investment for the highly capital intensive operation of water supply and sanitation infrastructure, and achieving efficiency in the delivery of services. The article highlights the issues that need to be raised if private investment is to be seriously considered as an alternative. Case studies, especially from Latin America (Argentina, Chile, Peru, Bolivia), illustrate different modes of private participation, and possible reasons for successes and failures are discussed. The article stresses that regardless of the modality of private sector involvement, on‐going government regulatory responsibility in the water sector is crucial. It suggests that regulatory policy must go beyond just setting tariffs, to develop standards for drinking water quality and waste treatment, as well as other standards. In conclusion, the article recognizes that numerous and increasingly difficult challenges face utilities in fulfilling their responsibility to deliver drinking water of adequate quality, in sufficient quantity, and at affordable prices, as well as safe and sustainable disposal of wastewaters for members of urban and rural communities.     

Willingness to pay for safe drinking water: Evidence from Parral, Mexico

A referendum-format contingent valuation (CV) survey is used to elicit household willingness to pay responses for safe and reliable drinking water in Parral, Mexico. Households currently adopt a variety of averting and private investment choices (e.g., bottled water consumption, home-based water treatment, and installation of water storage facilities) to adapt to the existing water supply system. These revealed behaviors indicate the latent demand for safer and more reliable water services, which is corroborated by the CV survey evidence. Validity findings include significant scope sensitivity in WTP for water services. Further, results indicate that households are willing to pay from 1.8% to 7.55% of reported household income above their current water bill for safe and reliable drinking water services, depending upon the assumptions about response uncertainty.     

The real water consumption behind drinking water: the case of Italy

The real amount of drinking water available per capita is a topic of great interest for human health and the economic and political management of resources. The global market of bottled drinking water, for instance, has shown exponential growth in the last twenty years, mainly due to reductions in production costs and investment in promotion. This paper aims to evaluate how much freshwater is actually consumed when water is drunk in Italy, which can be considered a mature bottled-water market. A Water Footprint (WF) calculation was used to compare the alternatives: bottled and tap water. Six Italian brands of water sold in PET bottles were inventoried, analysed and compared with the public tap water of the city of Siena, as representative of the Italian context. Results showed that more than 3 L of water were needed to provide consumers with 1.50 L of drinking water. In particular, a volume of 1.50 L of PET-bottled water required an extra virtual volume of 1.93 L of water while an extra 2.13 L was necessary to supply the same volume of tap water. These values had very different composition and origin. The WF of tap water was mainly due to losses of water during pipeline distribution and usage, while WF of bottled water was greatly influenced by the production of plastic materials. When the contribution of cooling water was added to the calculation, the WF of bottled water rose from 3.43 to 6.92 L. Different strategies to reduce total water footprint are discussed.     

Cities vs. agriculture: A review of intersectoral water re-allocation

Water demand management, or making better use of the water we have — as opposed to augmenting supply — is increasingly proposed as a way of mitigating water-scarcity problems. Moving water away from agriculture to uses with higher economic value is one of the main measures widely seen as desirable. Sectoral "allocation stress" is seen as resulting from the disproportionate share, and inefficient use of water in the agricultural sector. This apparent misallocation is often attributed to the failure of government to allocate water rationally.
This paper revisits this commonly-accepted wisdom and examines the nature of urban water scarcity, showing the importance of economic and political factors, shaped by incentives to decision-makers, and sometimes compounded by climatic conditions. It shows that cities' growth is not generally constrained by competition with agriculture. In general, rather than using a narrow financial criterion, cities select options that go along the "path of least resistance," whereby economic, social and political costs are considered in conjunction. The question of allocation stress is thus reframed into an inquiry of how transfers effectively occur and can be made more effective.     

Increasing urban water self-sufficiency: new era, new challenges

Urban water supplies are traditionally based on limited freshwater resources located outside the cities. However, a range of concepts and techniques to exploit alternative water resources has gained ground as water demands begin to exceed the freshwater available to cities. Based on 113 cases and 15 in-depth case studies, solutions used to increase water self-sufficiency in urban areas are analyzed. The main drivers for increased self-sufficiency were identified to be direct and indirect lack of water, constrained infrastructure, high quality water demands and commercial and institutional pressures. Case studies demonstrate increases in self-sufficiency ratios to as much as 80% with contributions from recycled water, seawater desalination and rainwater collection. The introduction of alternative water resources raises several challenges: energy requirements vary by more than a factor of ten amongst the alternative techniques, wastewater reclamation can lead to the appearance of trace contaminants in drinking water, and changes to the drinking water system can meet tough resistance from the public. Public water-supply managers aim to achieve a high level of reliability and stability. We conclude that despite the challenges, self-sufficiency concepts in combination with conventional water resources are already helping to reach this goal.     

Experiences in the water resources development and management for sustainable use in Zimbabwe

Fresh water has become a very topical, emotive and sensitive issue in Zimbabwe following the recent continued droughts in conjunction with lack of finance to expand water resources development. Heated debates have arisen over the availability, allocation, distribution, disbursement and conservation of this precious resource. A great deal of inefficiency has also resulted from Government Ministries or Departments playing all the roles, from policymaking to supply operations. Government authorities often make the mistake of controlling day-to-day management of water and sewage services. In fact, greater accountability results when Government authorities focus on policymaking, establishing regulatory regimes that provide incentives for achieving goals and sanctions for serious failures, while giving sufficient autonomy to entities responsible for investment and operations to control outcomes. It is becoming more and more evident throughout the world that provision of water, as opposed to the planning and allocation of the water resource, should be handled by commercial undertakers. Indeed, Zimbabwe and its neighbours are currently involved with changing the status of their water departments to corporate entities; Botswana, Malawi, Namibia, South Africa and Zambia have already commercialised or are currently in the process of commercialising their freshwater supply services.     

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.     

A decision model for selecting sustainable drinking water supply and greywater reuse systems for developing communities with a case study in Cimahi, Indonesia

Capacity Factor Analysis is a decision support system for selection of appropriate technologies for municipal sanitation services in developing communities. Developing communities are those that lack the capability to provide adequate access to one or more essential services, such as water and sanitation, to their residents. This research developed two elements of Capacity Factor Analysis: a capacity factor based classification for technologies using requirements analysis, and a matching policy for choosing technology options. First, requirements analysis is used to develop a ranking for drinking water supply and greywater reuse technologies. Second, using the Capacity Factor Analysis approach, a matching policy is developed to guide decision makers in selecting the appropriate drinking water supply or greywater reuse technology option for their community. Finally, a scenario-based informal hypothesis test is developed to assist in qualitative model validation through case study. Capacity Factor Analysis is then applied in Cimahi Indonesia as a form of validation. The completed Capacity Factor Analysis model will allow developing communities to select drinking water supply and greywater reuse systems that are safe, affordable, able to be built and managed by the community using local resources, and are amenable to expansion as the community's management capacity increases.     

Small-scale mining in Ghana: The government and the galamsey

This paper argues that the current formalization system for small-scale gold miners in Ghana has been undermined and the small-scale mining laws no longer capture the reality of the sector’s activities. The paper will examine the small-scale mining system and shows that registered and unregistered actors operate not only in parallel but are actually intertwined and highly dependent on one another. The paper shows that the perceived dichotomy of formal and informal actors in the sector does not actually exist. The sector has instead evolved into a highly intertwined group of semi-formal sectors operating with varying degrees of legal registrations. The paper concludes that political leniency and law enforcement corruption has resulted in a booming small-scale gold system under poor government control. The paper recommends that politicians move to enact reforms to regularize the small-scale mining sector and curtail ubiquitous environmental and occupational safety problems. Anti-corruption initiatives and law enforcement reforms are the most urgent. However, reforming the laws is also necessary to capture and regulate the technological innovations the sector is currently using.     

The Role of the Private Sector in Providing Water in Developing Countries

The purpose of this article is to describe the role of the private sector in the supply of water in developing countries. In addition to citing some of the advantages to private supply, the paper discusses some of the objections to private provision, namely 'Natural Monopoly', 'Externalities', and the alleged inability to charge for water. It is concluded that the main obstacles to the private supply of water services are political rather than technical or financial, and that the French Affermage system (or variations thereon) seems to be suitable for many developing countries. There also appears to be considerable scope, in both towns and villages, for consumer co-operatives, and for the enhancement of water vending.     

Modelling optimal exploitation of petroleum resources in India

In this paper, the exploitation of petroleum resources in India is analyzed by developing a dynamic optimization modeling framework—PETEX. This model combines the practical aspects in determining optimal rates of extraction of oil and gas from a reservoir with a hybrid approach to estimating the discovery rate of petroleum resources in the future, additionally incorporating a stochastic specification to capture the uncertainty associated with discovery. The model acts as an aid to joint production–investment decision making for the entire supply process from drilling through production and in determining the import requirement to meet the country’s oil demand. The model results and sensitivity analysis suggest an acute requirement of sustained infusion of investment into the various upstream activities at a rate much higher than the current levels in order to bridge the demand—supply gap for crude oil. With the opening up of the Indian economy, it is hoped that the participation of the private sector in upstream activities would increase thereby increasing the investments available for upstream activity.     

How to “walk the talk”: The perspectives of sector staff on implementation of the rural water supply programme in Uganda

Many countries in sub‐Saharan Africa have adopted similar approaches to tackle the challenges of rural water supply, including community‐based management, community participation and the demand‐responsive approach. These are often combined with nationwide programmes of capacity‐building and decentralization. This paper first shows how Uganda has adopted these approaches in its rural water supply programme. Based on Government documents, we construct an organizational framework that illustrates the overall programme and outlines the roles and responsibilities which actors are expected to fulfil. Second, based on interviews with sector staff and a review of Government documents, the paper examines challenges to successfully “walk the talk”; that is, it provides insight into challenges affecting programme implementation. Among numerous difficulties, two key issues are highlighted: local political interference and the weak capacity of local governments. Concerning local political interference, local planning processes need to be reformed so that local politicians commit more strongly to improving water supply. Regarding local government capacity, the Government department responsible for the programme has established eight regional units that provide support to local governments. This promising strategy, combined with more appropriate engagement and the commitment of local politicians, should help to improve the implementation of the rural water supply programme in Uganda.     

The transformation and successful development of small-scale mining enterprises in developing countries

Proponents have long argued that small-scale mining, given proper direction and support, can contribute substantively to the socioeconomic development of rural areas in developing countries. The attitudes of governments, commercial mining companies and donor agencies have been coloured by the haphazard, informal, often dangerous and seemingly wasteful character of much local mining activity, especially at the smallest scale. Yet this 'artisanal' activity has come to assume a critical economic welfare function in many countries, especially those which have suffered through extended periods of environmental and economic stress. This paper argues that this type of mining, because of both its upside potential and its problematic nature, cannot be ignored: neither can it be eradicated. Instead, explicit and sustained attention from governments, non-government organizations, the private sector and donor agencies is advocated for an effort to rationalize and formalize this type of mining, to increase its economic and technical efficiency, and to maximize its social benefits and minimize its disadvantages.     

New strategy in urban water management in Mexico: the case of Mexico's Federal District

This paper focuses on the strategy of Mexico's Federal District to achieve better water management. It highlights some of the main aspects of the current institutional framework. The article starts by providing a general overview of the current state of the water sector in Mexico. An analysis of the new strategies for the provision of water services in Mexico's Federal District is presented as a case study. It exemplifies the type of private sector participation that has recently been adopted in the water sector in Mexico. The article analyzes the functions of agencies involved in water distribution in the Federal District, and discusses the performance of private firms as well as some of the main difficulties encountered. Lessons have been learned from this application. It can be concluded that long-term commitment on the part of both public and private entities is one of the key factors in achieving a more efficient urban water management. The article reflects plans implemented and approved as of January 1998.     

Tackling the issue of rural–urban water transfers in the Ta'iz region, Yemen

The Ta'iz region of Yemen is facing serious water problems. Total water use has become unsustainable. While agriculture places a heavy demand on the region's water resources, supplies for the fast growing city and the industrial sector are severely rationed despite their much higher willingness-to-pay for water relative to the returns on most agricultural uses. The article considers several decentralized management options for enhancing sustainability and improving intersectoral water allocation. These include, taxing groundwater extractions, taxing inputs used in pumping groundwater, and implementing a tradable water rights regime. The first two options could lead to resource conservation but are politically difficult to implement and may not necessarily result in better intersectoral water allocation. The tradable water rights regime has potential for achieving the twin objectives of resource conservation and improved intersectoral resource allocation. If farmers' de facto water rights were legitimized, this option would be more acceptable to them. However, the following additional conditions need to be met for making the option viable: (a) a set-aside allocation is made for lifeline supplies for the poor; ( b) the water law provides for separation of water rights from land rights; and (c) community organizations are involved as co-managers of the region's water resources.     

Privatizing the minerals sector

The end of the Cold War presents new challenges for the dynamics associated with mineral resources development. Broader approaches are needed to help mineral rich developing countries develop their minerals sector. These countries need to embark upon programmes of policy reform and privatization in order to make their mineral resources industries more efficient and responsive to free market forces (such as supply and demand and price), and to turn mineral sector decision making over to the private sector. This article examines the use of policy reform and privatization strategies to increase mineral resource production in developing countries, thereby contributing to both developing country economic growth and developed country access to mineral supplies .     

The case of artisanal mining in Bolivia: Local participatory development and mining investment opportunities

Despite the buoyant expansion of Latin America's mining sector, the small-scale mining sub-sector remains marginalized. For many countries with small-scale mining resources, the way forward to sustainable mining development is not clear. Activities, in far too many cases, have led to environmental damage, social inequity and political violence among mining communities. This article, through a case study of the Bolivian Altiplano, seeks to advance the understanding of the conditions that drive mining communities into the chain of events of impoverishment associated with environmental damage. It also examines the opportunities for sustainable human development among these communities. In Bolivia's mining sector, social inequity is pervasive and holds the mineral resources captive. This situation is further aggravated by the fact that solutions, in the short term, are uncertain. Unresolved social inequity compromises foreign direct investments since social considerations are becoming increasingly important to mining corporations when deciding whether to invest. This article outlines a preliminary strategy to move forward on social inequity. The strategy revolves mainly around implementing alternative sustainable livelihoods with the participation of the government (central and local), the private sector, NGOs and donors as facilitators and partners. Its aim is to reduce the number of families eking out a living from artisanal mining in order to enhance the viability of small-scale mining. It is hoped that, as social inequity decreases throughout the sector, the increased stability will enable stakeholders to consider foreign direct investments within the framework of the country's sustainable human development goals.     

Institutional reform in the Andean irrigation sector: Enabling policies for strengthening local rights and water management

For centuries, local and indigenous water rights and rules in the Andean region have been largely neglected and discriminated against. The process of undermining local communities’ water access and control rights continues up to today and not only is it headed by powerful local, national and international water‐use actors encroaching local rights — it is also a direct consequence of vertical State law and intervention practices, and the latest privatization policies. Recognition of and security for the diverse and dynamic local rights and management frameworks is crucial for improving rural livelihoods and even national food security in Andean countries. At the request of the Government of Ecuador — in which at that time the indigenous movement had its political participation — a research mission was organized to formulate a proposal for institutional reform, aiming at the strengthening of the national irrigation sector. In this article, some basic mission results are outlined and analyzed within the scope of four concepts (institutional viability, political democracy, equity, and water rights security), and practical elements for institutional reform are suggested, not only for the Ecuadorian irrigation sector but also other settings. The complementary roles of central Government, local governments and water user organizations in water resources management are emphasized as is the need to strengthen enabling legal and policy frameworks. The importance of translating constitutional recognition of local and indigenous rights and common property systems into practical procedures and institutional structures is also stressed.     

Refuting the paradigm of water services privatisation

The aim of this article is to question the fundamental assumptions behind privatisation and public–private partnerships. The article shows that instead of radically increasing private sector involvement, public sector reforms should be seriously considered. Public–private partnerships should be implemented so that the strengths of all the stakeholders may be fully utilised.     

Formalising informal solid waste recycling at the Pomona dumpsite in Harare,Zimbabwe

The role of informal recycling in poverty alleviation and solid waste management in cities in developing countries has been receiving increased attention. This study explores the integration of the informal recycling sector with the Harare City Council's solid waste management system, focusing on the Pomona dumpsite. The extent of this integration was compared with interventions proposed in InteRa, a new way of evaluating the integration of informal recyclers with the waste management systems of cities in developing countries. Our results suggest that the Harare City Council, which had the vision of transforming itself into a world‐class city, failed to fully integrate the informal recycling sector. We suggest to policymakers that complete integration of the informal sector will not necessarily prevent cities from achieving such visions. Rather, addressing the neglected interventions may help in achieving their visions.