Transcript Water supply in small towns - Mali

Water supply in small towns :
Of associations & advisors in Mali
Small towns
– are either rural settlements that can informally
manage their water supply, or small urban
centers with systems that require a more
formal mode of management ;
– sufficiently large and dense to benefit from the
economies of scale offered by piped systems
– but too small and dispersed to be efficiently
managed by a conventional urban water utility.
– In Mali, small towns range in population
between 2 000 and 20 000 people ; the systems
require an autonomous source of power
A tale of six towns

The ws systems in six towns were
rehabilitated in 1996 after 10 years of de
facto community management
– Diesel generators ; concrete water tower ;
standpipes and house connections
– Associations created in each of the 6 towns:
Bankass, Douentza, Djenné, Kangaba, Koro,
Nara
– A management advisory unit (CCAEP) was set
up within a project funded by KfW
Bankass
45.00
40.00
Djénné
Douentza
Kangaba
Koro
Nara
Estimated consumption
/ day
/ capita)
Consommation(litres
spécifique
(l/j/hab)
35.00
l/j/hab
30.00
25.00
20.00
15.00
10.00
5.00
0.00
1992
1993
1994
1995
1996
1997
1998
1999
Cumulative saving - average per town
30000
Euros
25000
20000
15000
10000
5000
0
1992 1993 1994 1995 1996 1997 1998 1999
To explain this success… What
Legislative changes and institutional
set up
 Performance indicators
 Working principles and the paradox
 Prospects for scaling up

Sharing role & resposabilities
State
level
Local
authorities
“ownership”
O&M
Major repairs
Management advice
Financial audits
The CCEAP was created as part of
a pilot project ; and there are
ongoing efforts to privatise it.
Associations
Private
sector
Management,
operation, and
regulation

You've got
UA
– a mayor,
– manager &
– a mechanic.


The CCAEP is mandated
by the State to assist
User Associations (UA) ;
UAs pay them 0,03
Euros per cubic meter of
water produced
CCAEP
CCAEP
A management advisory unit (MAU)

Daily contact using short wave radios keeps the clientconsultant relationship alive. Production data is relayed
to the MAU ; if need be a seasoned mecanic is on hand.
This is not a maintenance contract. The MAU does not
perform repairs but responds, at a distance and in real
time over the radio, to the querries of pump operators.

Conducts technical training for the plumbers and
mechanics, and management training for the executive
members of the WUA.

Audits the accounts twice a year making performance
indicators available to the WUA, governement staff and
to local governements.
Cost sharingAid &
credit
State
Budget
Local
contribution
Feasibility studies
Construction
Rehabilitation
Management
Operation & maintenance
Renewal
Extension
Monitoring
Debt servicing
Cost sharing
agreement
Tariff
Sale of
water
Cost of diesel per m3 produced
gas
solar & diesel mix
0.20
0.18
0.16
Cost (US Dollars)
0.14
0.12
0.10
0.08
0.06
0.04
0.02
0.00
1994
1995
1996
1997
year
1998
1999
Total cost per m3 produced
diesel
diesel & solar mix
1.00
0.90
0.80
Costs (US $)
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
1994
1995
1996
1997
Years
1998
1999
How to account for this

Less wastage of fuel and overpricing
Fuel has ceased to go astray ; bills no longer bear an
inflated price ; timely preventive maintenance makes
the engiens run more smoothly

Optimising use of production capacity:
– People consume water more days in the year ;
– or more water per day per person ;
– or people abandon alternative sources and a greater number
of people buy water from the piped system
Paying professionals to provide
timely advice & financial control

has cut down-time from several days to
several hours & reduced the cost of
repairs
– a large number of breakdowns are solved
over the radio
– spare parts can be ordered and “courriered”
by bush taxi to the WUA

avoids false billing and theft of savings
Bankass
20,000
Year
results
(euros)
Résultats
(euro
x 1000)
Yearend
end
results
per town (euros)
Djénné
Douentza
15,000
Kangaba
Koro
10,000
Nara
5,000
0
-5,000
1992
-10,000
1993
1994
1995
1996
1997
1998
1999
The paradox

an additional charge of 20 fcfa/ m³ of water
produced has reduced the per unit cost of
production (on average for 9 small towns, over
5 years)

the cost of producing water has gone from
from 0,65 to 0,30 euros
– despite a 50 % devaluation in 1994
– inflation estimated @ 5%
– i.e. in real terms, by a factor of 4
Per du
unit
of du
production
Evolution
prix cost
de revient
m3 d'eau vendu
(average for 6 towns)
500
450
400
Savings
related to good
management
FCFA
350
300
250
200
150
100
50
0
1992
1993
1994
1995
1996
1997
1998
1999
Lower per unit costs through

Preventive maintenance and tight financial
control

spreading fixed costs over a larger volume of
water.
– On average, the quantity of water produced has
increased sixfold over five years.
– Selling all that water makes better use of existing
capacity and helps pay for fixed capital costs.
– On a per unit basis, the portion allotted for fixed cost
is reduced and total per unit costs drops below the
price people pay.
Safeguarding savings

Savings are safely tucked away and
protected against fraud and mishaps
– Closing the books every 6 months
– Double signature on accounts

Savings are sufficient to cover the cost
of all electric and mechanical equipment
with a life span of less than 8 years
Preparing for private sector
involvement

The CCAEP is being privatised
– but not without the resistance that go
with a shift in power
– without a sufficient number of potential
clients
– without a clear status that will allow it to
carry out its monitoring mandate (a
state responsibility)
Income of CCAEP
Fees
Training
Spares
50000
45000
40000
euros
35000
30000
25000
20000
15000
10000
5000
0
1996
1997
1998
1999
est. 2000
But unpaid water bills remain a problem!
Bornes fotaines
Impayéscharge
par typeto
d'usagers
Outstanding
be paid
Branchements privés
(Hors Nara)
by type of user (in 1000 FCFA)
Administration
12,000
milliers de FCFA
10,000
8,000
6,000
4,000
2,000
0
30/12/96
31/12/97
31/12/98
30/6/99