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Overview of Water Sector Reforms

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Title: Overview of Water Sector Reforms


1
Overview of Water Sector Reforms
  • Briefing Notes for Conceptualization Workshop
  • By
  • McLawrence G. Mpasa
  • Programme Coordinator NWDP II
  • Date 08th February 2007

2
Contents
  • Introduction
  • Background to Water Sector Reform
  • Reforms under NWDP I
  • Reforms under NWDP II
  • UWSS
  • WRM
  • RWSS
  • Town Water Supply and Sanitation
  • Market Centres
  • Policy Frameworks
  • Way Forward (for the Sector)
  • Workshop Objectives

3
Introduction
  • The Water Sector has been under going broad
    reforms since 1994.
  • This has involved both the hardware and software
    aspects of providing and managing water supply
    services.
  • The Reforms have been taking place in both
    the Urban, peri-urban and Rural areas.
  • Phase I of the Reforms took place under the NWDP
    I from 1996 to year 2003 and the second phase
    is to take place under the NWDP II from 2007 to
    2011/12

4
Background to Sector Reforms
  • Prior to 1995, the MoIWD, through the
    District Water Supply Fund, apart from providing
    infrastructure and services to rural areas, was
    also responsible for the provision of potable
    water in all the urban centres, except for the
    Cities of Blantyre and Lilongwe.
  • At the same time, the Ministry, through the
    WRB had a Policy holding and Regulating
    function, an arrangement which was not
    conducive to the efficient delivery of
    services.
  • Early 1994, the Government recognized this
    weakness and initiated a study which was
    known as the Water Services Sector Study.
    This was funded by the World Bank and
    resulted in the development of the National
    Water Resources Management Policy and Strategies
    (NWRMPS) document, which was adopted by
    Government in May 1994.

5
Phase I Sector Reform
  • This study revealed that in order to achieve
    sustainability of the existing water and
    sanitation facilities, hence increase coverage
    there was need to address the management of
    the sector in a holistic manner rather than
    treating Infrastructure Development Programmes
    (maintenance and rehabilitation) as stand alone
    components.
  • The study Specifically revealed that proper
    Water Resources Management and Water
    Supply Service delivery was constrained
    by
  • Inappropriate Sector Institutional Arrangements
  • Weak and Inadequate Legislation
  • Lack of coherent Policy Framework and Investment
    Strategies
  • The main Output of the Study was the
    Water Resources Management Policy and
    Strategies Document (May 1994)

6
Overall Recommendations
  • The overall Recommendations of the Study
    were that there
  • should be
  • Separation of Service Provision from Policy
    Holding and Regulatory functions by
    Government.
  • Water should not only be treated as a
    Social Good but also as an Economic Good and
    that water should also not be over
    exploited, wasted, or polluted
  • Malawi should design and adopt an Institutional
    Reforms for the Sector with 4 No key elements in
    mind
  • Management at the lowest appropriate level,
  • Simplification of relevant Legislation

7
Overall Recommendations Contd
  • The organization of effective operations
    management Structures and Systems that are
    decentralized and rely on maximum Private
    Sector Participation involvement of
    Communities.
  • Introduction of Performance Management systems
    that will ensure accountability and
    sustainability of the end user and to the higher
    Authorities
  • Improved Integration on the development of
    the water Supply and Sanitation - (IWRM)
  • Development of Human and Financial
    Resources - (necessary for the efficient
    management of the sector

8
Some Main Outputs
  • Apart from infrastructure development, some of
    the Main Outputs
  • of this Study were
  • The creation of the 3 No. commercially
    oriented Regional Water Boards,
  • Development of the New Waterworks Act No.17 of
    1995 to govern the Water Industry.
  • Formulation of the Water Resources Board
    - (for the Effective Regulation of the Water
    Sector),
  • Transfer of Water Borne Sanitation to Water
    Boards
  • Development and Promotion of District Based,
    Community Managed Approach to rural Water Supply
    and Sanitation, and
  • Community Involvement in the Protection and
    Management of Catchments

9
Sector Reforms (NWDP II)
  • Initiatives outlined above were achieved through
    the National Water Development Project (NWDP)
    I. The National Water Development Programme
    (NWDP) II is a programme aimed at building on
    the achievements of NWDP I.
  • The primary objective of this program is to
    implement projects that will assist the GoM
    achieve improved management of the nations
    water resources and the delivery of efficient,
    reliable and sustainable water supply and
    sanitation services for the benefit of an
    increasingly large population overtime.
  • The key implementing Agencies include the MoIWD
    and the five Water Boards and will run for a
    period of 5-6 years, beginning from year 2007 to
    2012-13. The first 12-18 months from this
    year will be for Program Preparation there after
    implementation

10
NWDP II Contd
  • The program has five major project components,
    and each of these have sub-components. Each
    Sector Institution, under the Program
    Coordination Unit (PCU), will manage the Program
    Preparation and later Implementation.
  • These main Components and Key Players are
  • Urban Water Supply and Sanitation (UWSS) -
    Joint PIU (BWB LWB)
  • Water Resources Management (WRM) WRM PPT
  • Rural Water Supply and Sanitation RWSS PPT
  • Town Water Supply RWBs
  • Market Centres RWBs

11
1.0 Urban Water Supply Sanitation (UWSS)
  • This Project Component has five main
    sub-components and these
  • are
  • Rehabilitation and Renewal Works for
    Blantyre and Lilongwe Water Boards
  • Urban Water Sector Reform
  • Legal Framework (Legislation)
  • Institutional Framework
  • Organizational Framework
  • Financial Framework
  • Regulatory Framework
  • Infrastructure Development
  • Change Management
  • Provision of Water to Low Income Areas
  • Consensus Building to garner support for the
    Reforms
  • Review Of Business Plans for BWB LWB

12
Drivers of UWSS Reform
  • Efficiency
  • The private sector is often considered
    to provide greater levels of efficiency when
    running water supply projects than the
    Public sector. The increased efficiency results
    from many factors, including
  • Focus on cost-effectiveness and low
    operating costs, including greater flexibility in
    personnel management.
  • Commercial approaches to problem solving and
  • Insulation from political consideration.
  • Technology and Know-how
  • Governments may look up to private
    sector to provide new technology and know how
    both in capital works to be constructed
    and in operation and/or management

13
Drivers of UWSS Reform contd
  • Better Management
  • Better management know-how will include
  • the efficient running and financing of the
    utilitys operations,
  • management of customer relationships,
  • improvement of customer services,
  • commercial dealings with sub-contractors and
    suppliers,
  • Structuring and re-structuring of management
    teams,
  • Establishing of effective lines of internal
    decision making and communications.
  • Financing
  • Water systems can be extremely
    expensive to develop and refurbish.
    Governments would wish to involve private
    sector to make service delivery more
    cost-effective and economically
    sustainable in the context of demographic
    growth and industrial development.

14
UWSS Reform
  • Objective
  • Create an appropriate Environment for
    possible deeper form of Public Private
    Partnership (PPP) Arrangement
  • Steps
  • Introduce Service Contract (for BWB LWB)
  • Aims
  • Attain Operational Efficiency
  • Improve Customers Services Delivery
  • Carry out mid-term review (after 24-30 months) to
    determine if the desired results (improved
    Performance conducive Sector Environment
    and/or Market Conditions) are achieved
  • Proceed with Service Contracts or introduce
    deeper form of PPP

15
Expected Outputs
  • Reduced UfW
  • Improved technical and operational Efficiency
  • Better Customer Service and Responsiveness
  • Improved Financial Financial Efficiencies
  • More Investments into infrastructure to attain
    improved Service Coverage
  • Enabling Environment for sustainable Improvements

16
PPP Transaction
  • New Water Operating Co. to manage BWB and LWB
  • Malawian Investors
  • Management Employees Share Ownership
  • GoM to
  • Retain Asset Ownership
  • Be responsible for approving financing capital
    works
  • Ensure provision of services to LIA
  • Operating Co to list of Stock Market
  • NB Cabinet Paper prepared

17
Provision of Water to Low Income Areas
  • Main Objective
  • Achieve improved access to potable
    Water Supply and Sanitation
  • Services to people residing in an Un-Planned
    areas by increasing service
  • coverage and reduced walking distances
    through Private Sector
  • Participation.
  • Technical Sub-component (Investment)
  • Increase Water Service Coverage
  • Rehabilitation/Upgrading/Extension
  • Institutional and Financial Sub-component
  • Management Structure and Systems
  • Financing Requirements and Arrangements (for
    Sustainability of all the three sub-components)
  • .
  • Sanitation and Hygiene Promotion (to based
    around the National Sanitation Policy of 2005)
    Sub-component.

18
2.0 Water Resources Management (WRM)
  • Institutional and Technical Support
  • Pilot Catchment Management and Development
  • Lake Malawi Level Control
  • Water Resources Investment Strategy
  • Construction of Multi-Purpose Dams (for Water
    Supply, Irrigation and Electricity)
  • Enabling Legislation (New Water Act) for the
    National Water Policy

19
3.0 Rural Water Supply Sanitation (RWSS)
  • In an effort to support and strengthen
    the Decentralization process, this Project
    Component has four main sub-components and these
    are
  • Hygiene and Sanitation Promotion (HSP)
  • Preparation of Implementation Manual for Piped
    Water Supply and Water Point Sources
  • Design of Programme to Strengthen the Rural
    Water and Sanitation Mapping System and
    Prepare ME Programmes to keep track of
    changes in the National Coverage
  • Technical and Environmental/Catchment Audit

20
4.0 Town Water Supply
  • Design and Construction Supervision of the
    Rehabilitation,
  • Upgrading and Extension Works of
  • Zomba and Mangochi Water Supply Schemes (SRWB)
  • Kasungu Water Supply (CRWB) and
  • Mzuzu Water Supply Scheme (NRWB)

21
5.0 Market Centres
  • This Project Component has two main sub-
    components and these
  • are
  • Pre-feasibility Studies for 61 No Potential
    Market Centres
  • 17 No in the North
  • 19 No in the Centre and
  • 25 No in the South)
  • Feasibility Studies, Preliminary Design, Business
    Planning and Construction Supervision of
    the Potential Market Centres

22
Policy Frameworks
  • National Growth Development Strategy
  • An overarching operational strategy for
    attaining VISION 2020, and aims at reducing
    poverty through attainment economic growth
    (Promotes Public Private Partnerships)
  • Decentralization Policy (1998)
  • Strategy for Empowering and Developing Capacity
    at District level as a pillar for improving
    Planning, Financial Management and
    Accountability
  • Water Resources Policy (August 2005)
  • Tool for achieving sustainable provision of
    water supply for All and sustained services
    delivery equitably for social-economic
    development at an affordable cost
  • National Sanitation Policy (Draft)
  • Tool to guide the Country on how to
    implement Sanitation, and clarify Roles and
    Responsibilities for Improved health.

23
Way Forward
  • Short/Medium Term
  • Operationalization of Policies
  • Enacting of Enabling Legislation
  • Reduction of Non-Revenue Water
  • Rehabilitation, Upgrading of Priority Works
  • Cost Management Efficiency Improvements
  • Setting up Operations Management Sytems and
    Structures to support the Decentralization
    Process
  • Capacity Building at levels (National, District
    Community)
  • Long Term
  • Community Operation Management of
    Infrastructure, and Catchment
  • Development of New Raw Water Sources
  • Enhanced involvement of Private Sector in the
    Sector

24
Objectives of the Workshop
  • Brief Key Stakeholders and Policy Makers on the
  • Some of the key developments within the
    Sector (focusing NWDP II)
  • Innovative Approaches and Options available for
    achieving improved Operational and
    Management Efficiency in Service Provision
    to the Urban and peri-urban Areas before engaging
    a wider public
  • Get key Stakeholder and Policy Maker Feedback and
    Input into the envisaged Sector Reform
    initiatives
  • Assist the Sector develop Strategy and Roadmap
    to improving
  • the Management of the Nations Water Resources
  • Service provision to the Urban, and peri-urban
    areas,
  • Making safe water easily available to as many
    people as possible overtime
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