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Access through innovation: Expanding water service delivery through independent network providers
The last few years have seen increasing interest in the role that small-scale providers play in providing water to many of the officially “unserved”. These providers range from pushcart vendors to standpipe operators, from tanker services to those operating small water supply networks. Such providers typically operate in the informal sector and, as such, very little is known about how they actually function or what their relationships to customers and authorities look like. Discussion of the merits and drawbacks of their services is clouded by a general lack of information. An action-research programme
To address some of this gap BPD, together with AFD and the international consultants Hydroconseil, embarked on a year-long programme of action research in West Africa. The work focussed on network providers, whose services are closest to those of formal utilities, and who have typically taken most risks in establishing their business niche. A preliminary survey of ten West African countries pointed to interesting developments taking place in Ghana, Mali and Mauritania. These three countries became action-research case studies, where specific providers were studied in more detail and dialogue between different stakeholders supported. Later Maputo was added as a fourth case study as steps to engage independent network providers are underway there (in which AFD, Hydroconseil and BPD have all been involved).
The pdf files on the right are the published case studies (forthcoming) from these four cases, along with a synthesis report, containing findings and practical recommendations for both practitioners and policymakers on how to better integrate such operators in developing country water and sanitation projects. Diverse, yet effective, actors in the water sector
The work focusses on operators that have invested in the construction and/or extension of distribution networks. Numerous such providers were surveyed, ranging from individuals driven to serve their community, to local entrepreneurs new to the water sector, to formal water operators appointed after competitive bidding. Diverse they may be, yet all have shown a remarkable ability to adapt to local conditions in order to build up their customer base. They often outperform larger formal providers in meeting demand for household connections, usually without any external subsidies. This relies significantly on their ability to innovate, using appropriate standards to lower the costs of service delivery.
We came across small entrepreneurs providing water in this way to tens of thousands of people, in small to medium urban centres, or in the unserved areas of major cities.
In the small towns of Mauritania and Ghana the providers encountered have to a great extent been “called into being”; actively sought out by the public sector to run and expand existing schemes. By contrast, in Bamako and Maputo (the capitals of Mali and Mozambique), providers operate in the gaps left by the urban water utility. Their networks have evolved more organically and often spun-off other business operations (such as hotels or small factories). Key challenges for small towns and peri-urban settings
In small towns a key challenge is getting investment into the system, especially to expand the network. In Ghana local authorities struggle to source the grant funding needed for this, and tariffs are insufficient to pay for network extension, especially given the high technical standards required. In Mauritania providers are afforded some flexibility over standards and are able to ask households to pay the cost of extension.
As for peri-urban operators, the prevailing architecture of the urban water sector relegates most to the informal sector. They find some stability through accommodation with local authorities, but informality constrains their investment horizons, limits network expansion and ultimately drives up prices. The challenge here is to “bring them out of the woods” in order to better leverage their activities. Considerations for productive dialogue
The synthesis report outlines how dialogue, focussing on tangible short- to medium-term actions, can offer providers a more stable operating environment and slowly bring them into the formal regulatory frameworks that govern water provision. Recommendations are made about possible changes to market structure that could open existing small networks to competition and/or adapt technical standards.
The process of engagement is crucial, and suggestions are made as to likely champions and brokers who can bridge existing gaps. Local authorities are one candidate. The report outlines some key considerations for this proces and offers some early confidence-building measures.
In summary, the work has shed more light on independent network providers, the scope of their operations and the constraints they face. Their operations compare favourably with many larger, formal utilities, even without much support and subsidy. Users are broadly satisfied and appreciate their services.
This capacity and innovation can be better leveraged and substantially contribute to the Millennium Development Goals. |
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