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PPP for
decentralizing
potable water supply
Bringing potable water supply to urban poor in areas outside
piped water suppl...
Issues
• Urban poor typically stay in informal settlements which are beyond the ambit of municipal
piped water supply
• Wi...
Informal potable water vendors
• Decentralized potable water kiosks with
water ATMs and distribution channels
• Locally managed model which ensures
finan...
• Capital to create clusters of SWEs
• Access to land, water, electricity
• Urban poor’s trust (translates into demand)
• ...
• Capital could be provided by the service provider provided they are
given long term contracts with some condition-based ...
• Political risk – Successive governments shall have to consider
water supply improvements while taking into account the
c...
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PPP for decentralizing potable water supply

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This presentation has been developed for submission towards World Bank's PPP MOOC.

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PPP for decentralizing potable water supply

  1. 1. PPP for decentralizing potable water supply Bringing potable water supply to urban poor in areas outside piped water supply network Developed for submission towards World Bank’s PPP MOOC (June 2015)
  2. 2. Issues • Urban poor typically stay in informal settlements which are beyond the ambit of municipal piped water supply • With current levels of city limits expansion and growing urban population, Indian water utilities and municipalities are unable to cover all areas with piped water supply; also they are financially crunched to invest in cost extensive piped networks for all • Urban poor either get water from illegal network connections, which are at a high risk of contamination, or from inherently unreliable sources like tube wells, hand pumps, open wells, tankers whose water quality is many a times unfit for consumption • Water borne diseases highly prevalent in these areas • Point of use water treatment systems not affordable for these low-income households • Informal service providers are now filling this gap however this, largely unorganized, sector remains questionable as a solution because of their • Water quality • Non-transparent and non-credible operations • High charges
  3. 3. Informal potable water vendors
  4. 4. • Decentralized potable water kiosks with water ATMs and distribution channels • Locally managed model which ensures financial and operational sustainability • Reliable with extremely low downtime Small Water Enterprises (SWEs)/ Community Safe Water Solutions (CSWS) • Affordable for urban poor • Strict adherence to water quality standards • Easily accessible • Part of an organized sector What is a feasible solution?
  5. 5. • Capital to create clusters of SWEs • Access to land, water, electricity • Urban poor’s trust (translates into demand) • Operational efficiency • Preventive maintenance to ensure extremely low downtime • Expertise to run non-conventional water supply systems • Capacity to train locals Requirements Public Private • Indian water utilities and municipalities primary service delivery mechanism is piped water hence they lack capacity and expertise to operate SWEs as a sustainable complement to piped water supply • Organized sector private players have failed to scale without govt.’s resources and help Why PPP? NOT EXHAUSTIVE
  6. 6. • Capital could be provided by the service provider provided they are given long term contracts with some condition-based flexibility on pricing • Provision of land, raw water and electricity could be subsidized by the state to keep costs and thereby price under control • Private player shall have to • Install remote monitoring systems to carry out preventive maintenance and ensure low downtime • Conduct periodic water quality testing to ensure adherence to standards • Educate consumers about the impact of water on health and the importance of consuming clean water • Train local youth to manage these kiosks, thereby generating livelihood Contractualagreements- Basics NOT EXHAUSTIVE
  7. 7. • Political risk – Successive governments shall have to consider water supply improvements while taking into account the concerned impact on the prevailing SWE arrangement (else private player might not even be able to recoup capital costs) • Financial risk – State to allow for financially sustainable pricing • Competition from illegal players and activities – State players shall have to ensure crackdown on ‘water mafia’ Public Private • Construction risks – Ensure appropriate civil structure and technology set up • Consumer related risks – Maintain water quality standards, generate awareness about water and its impact on health to ensure demand • Operation phase risks – Follow preventive maintenance measures to ensure reliability Risksandrecommendedmitigationmeasures forpublicandprivatestakeholders NOT EXHAUSTIVE

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