Models of Aggregation for Water Supply and Sanitation Provision

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Models of Aggregation for Water Supply and
Sanitation Provision

• Capacity building module

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Outline of the presentation

• What is aggregation?
• Aggregation models
• The process of aggregation
• Summary
• Case studies

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What is aggregation?
Grouping of several municipalities into a single
administrative structure for the provision of a
service
town A
town B
town D
town C
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Aggregation one of many management models
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Drivers for aggregation
Cost sharing
Increased efficiency
Access to water resources
Access to PSP
Access to professional services
Access to finance
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Outline of the presentation

• What is aggregation?
• Aggregation models
• The process of aggregation
• Summary
• Case studies

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Scale the optimum size of utility
SCALE
Several Towns
Regional Provider
National Territory
Two Towns
Hungary, The Philippines, France
Italy, England and Wales, The Netherlands
Brazil
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Scope of Aggregation
SCOPE
What services?
A single service e.g. bulk supply
All municipal services
All water and sanitation services
Nimes (France), The Netherlands only water
Dunavarsany (Hungary), water first, waste water
later
Italy, England and Wales
What functions?
A single function e.g. procurement
All functions
Several functions
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Governance arrangements
temporary

• Loose association
• Permanent structure owned by municipalities
• Supralevel of local governments

permanent
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Governance arrangements voting rights in Board
.Or a mixture of the various methods
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Outline of the presentation

• What is aggregation?
• Aggregation models
• The process of aggregation
• Summary
• Case studies

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Is aggregation a suitable option? Adding up the
pros and cons
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Process of aggregation
PROCESS
Voluntary
Voluntary with incentives
Mandated
The Philippines, France, Brazil
Hungary
Italy, The Netherlands, England and Wales
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Stages in the Aggregation Process

• Initiate the aggregation process
• Identify key drivers for aggregation
• Identify aggregation candidates and stakeholders
• Choose an appropriate consultation process
• Establish group to lead the process
• Choose an appropriate aggregation process

Preparatory Phase

• Assess drivers, constraints, and potential
  issues
  
• Assess benefits and costs for each entity
• Assess benefits and costs for alternative
  groupings

Analytical Phase

• Choose the most appropriate aggregation model
• Define an aggregation plan
• Define procedure to resolve disputes
• Monitor Progress against that plan

Implementation Phase
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Outline of the presentation

• What is aggregation?
• Aggregation models
• The process of aggregation
• Summary
• Case studies

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Aggregation define scale, scope and process
SCALE
Two Towns
National Territory
SCOPE
A single service or function
All services and functions
PROCESS
Voluntary
Mandated
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More information

• Available from
• www.worldbank.org/watsan

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Outline of the presentation

• What is aggregation?
• Aggregation models
• The process of aggregation
• Summary
• Case studies

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Case studies

• France
• Philippines
• Hungary
• Brazil
• Italy
• The Netherlands
• England and Wales

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Syndicates in France
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Local Government Units, Philippines
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Dunavarsany, Hungary
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Dos Lagos, Brazil
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Consortium Convenzione, Italy
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Public water PLCs, The Netherlands
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Regional Water Authorities, England and Wales
Note RWAs were divested to the private sector in
1989