Transcript Toolkit: Approaches to Private Participation in Water Services

Toolkit: Approaches to Private
Participation in Water Services
Module 3
Involving Stakeholders in the
design of the Arrangement.
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Elements of the Toolkit
1
Considering
Private
Participation
2
Planning the
Process
9
Selecting an
Operator
8
Designing
Legal
Instruments
3
Involving
Stakeholders
TOOLKIT
Appendix A
Examples of PP
Arrangements
Appendix B
Policy Simulation
Model
4
Setting
Upstream
Policy
7
Developing
Institutions
6
Responsibilities
& Risks
5
Standards,
Tariffs, Subsidy,
Financials
Additional Material
CD-ROM
Module 3Outline of Toolkit
General
1
Considering
Private
Participation
2
Planning the
Process
9
Selecting an
Operator
Module 3
8
Designing
Legal
Instruments
3
TOOLKIT
Involving Involving
Stakeholders in
Stakeholders
the Design of the
Arrangement
Appendix A
Examples of PP
Arrangements
Appendix B
Policy Simulation
Model
4
Setting
Upstream
Policy
7
Developing
Institutions
6
Responsibilities
& Risks
5
Setting Service
Standards, Tariffs,
Subsidies &
Financial
Arrangements
Additional Material
CD-ROM
Module 3 - What will we learn?
How will we identify
important
Stakeholders?
How should we deal
with different
Stakeholder groups?
What is the best
strategy for involving
Stakeholders?
Who will ‘win’ or
‘lose’ under the
Arrangement?
Module 3
Involving Stakeholders in Design
IDENTIFY
Stakeholders
DEVELOP
Communication
Strategy
INTERACT
with
Stakeholders
Satisfactory outcome
THE
ARRANGEMENT
In this Module we look at the issues that
Governments need to address in order
to involve Stakeholders in Private
Particpation Arrangement design.
Government needs to consider the
interests of the different
stakeholders
Government will benefit from
engaging with the Stakeholders:
through better
Arrangement design,
through the fact that
Stakeholders have
participated in the
design, and their views
have been sought and
understood.
Module 3
Involving Stakeholders in Design
“In designing the Arrangements the Government needs to consider the interests of
different Stakeholders”
Need:
To consider the interests of the different stakeholders
Benefits:
Engaging with the different groups will ensure that views are
understood, and that stakeholder participation in the design is
recognized.
Trade-offs: Some interests will conflict:
There is a need for the Government to trade-off competing
interests
The better the Arrangement, the easier the trade-offs.
Arrangement Design:
Designing the new Arrangement generally increases
the size of the ‘pie’, making it easier to find acceptable ways to
share. Government has to survey and consult to see:
What people want?
What people will pay for services?
Module 3
Involving Stakeholders in Design
“In designing the Arrangements the Government needs to consider the interests of
different Stakeholders”
Need:
To consider the interests of the different stakeholders
Benefits:
Engaging with the different groups will ensure that views are
understood,
and that stakeholder participation in the design is
Some Examples:
recognized.
What level of service do people want?
Trade-offs: Some interests will conflict:
How much are people willing to pay for new
There is a need for the Government to trade-off competing
connections?
interests
Given
different
costs, what type
connections
The better
the Arrangement,
the of
easier
the trade-offs.
do they want?
Arrangement Design:
Designing the new Arrangement generally increases
the size of the ‘pie’, making it easier to find acceptable ways to
share. Government has to survey and consult to see:
What people want?
What people will pay for services?
Module 3
Involving Stakeholders in Design
“Engaging with Stakeholders offers two additional advantages………”
Analysis based on the consultation may show Government better ways to
design, with a more equitable distribution of costs and benefits
Perhaps too many costs imposed on poorer groups the
Government wants to protect
Perhaps too many costs imposed on groups that could block the
reforms
Not all groups will benefit as well as they hope for. Their support is more
likely if they feel that the design and implementation of the Arrangement is
‘Legitimate’. One way is if they see through the consultation process that all
is transparent and fair, and peole understand the objectives of the reform
Note: Legitimacy is an issue covered in Modules 7 (Tariff resets) and 9
(Contractor selection)
Module 3
Identifying Stakeholders
Involving Stakeholders in Design
“The first step is to identify important Stakeholders”
IDENTIFY
Any group that asserts an interest
can be a Stakeholder, but only some
Stakeholders
groups will do so. Other groups that might be overlooked will need to be
Examples
of some potential Stakeholders:
sought out,
including:
UnconnectedConsumers
poor, women, alternative providers ( such as
DEVELOP
standpipe operators)
Communication
Women’s groups
and
community organizations may open the
NGO’s
Strategy
path to other consumers with special needs
International Workers
specialist water operators are obvious contacts, but
local financiers, firms
and agencies should be considered
INTERACT
Private Firms
and Financiers
with
Stakeholders may be required to further identify
A communications needs
assessment
Alternative
Providers
the stakeholders
Satisfactory
outcome
It
may help
toOpinion
extend Leaders
Government
consideration
beyond the
and other
Politicians
obvious contacts
It can help toMedia
identify prevailing concerns about privatization and
THE
water services, and
possibly
offer ideas on potential ways forward
ARRANGEMENT
ARRANGEMENT
Module 3
Identifying Stakeholders
Involving Stakeholders in Design
“The first step is to identify important Stakeholders”
IDENTIFY
Any group that asserts an interest
can be a Stakeholder, but only some
Stakeholders
groups will do so. Other groups that might be overlooked will
need to be
“Can more Consultation
Examples
of
some
potential
Stakeholders:
help?”
sought out, including:
Unconnected poor, women, alternative providers ( such as
Consumers
DEVELOP
Examples – more detail
standpipe operators)
La Paz & Cochabamba
Communication
Women’s groups
and
community
organizations
may
open the
NGO’s Strategy
path to other consumers with special needs
International specialist
Workers water operators are obvious contacts, but
local financiers, firms
and agencies should be considered
INTERACT
Stakeholder
Private Firms
with and Financiers
Identification &
Composition
Stakeholdersmay be required to further identify
A communications needs assessment
Alternative
Providers
the stakeholders
ItSatisfactory
may help
toOpinion
extend Government
beyond the
outcome
Leaders and consideration
other Politicians
obvious contacts
It can help to identify
concerns about privatization and
Media prevailing
THE
water services, and possibly offer ideas on potential ways forward
ARRANGEMENT
Module
3
Developing
Strategy
Involving
Stakeholders
in Design
for Involving
Stakeholders
“Consultation may show better ways to design, and get support”
IDENTIFY
Stakeholders
DEVELOP
Communication
Strategy
INTERACT
with
Stakeholders
Satisfactory outcome
THE
ARRANGEMENT
Developing Strategy
for Involving Stakeholders
“Governments need to think about the types of interaction, and expertize needed”
Types of Interaction with
Stakeholders
Many ways to involve
stakeholders, depends on
objectives, type of Arrangement
and other factors
5 main types of interaction:
Collecting and providing info,
consulting, deciding and acting
together
Several different ways of
communicating with
shareholders, according to
situation
Acquiring expertise for
the engagement
Developing Strategy
for Involving Stakeholders
“Governments need to think about the types of interaction, and expertize needed”
Types of Interaction with
Stakeholders
Many ways to involve
stakeholders, depends on
objectives, type of Arrangement
and other factors
5 main types of interaction:
Collecting and providing info,
consulting, deciding and acting
together
Several different ways of
communicating with
shareholders, according to
situation
Acquiring expertise for
the engagement
5 Main Types of Interaction
4 Ways of Communicating
Developing Strategy
for Involving Stakeholders
“Governments need to think about the ……………….. expertize needed”
DIFFERENT SKILLS:
Types
of Interaction
with
Community
Development
Specialists
can help
engage
poor communities
COMMUNICATIONS
MANAGER:
Stakeholders
Acquiring expertise for
the engagement
Acts asgather
focal point
Survey Experts
facts in a quantifiable way
Needs toExperts
be well briefed
the Team
Communications
help toby
publicize
and
explain proposals
Ensures effective communication about
objectives
Government
policy may be
Depending
on projectand
size,
several specialists
employedAlerts Team to potential problems or benefits
of the proposed Arrangement
Ensures sequence and method of
communications
Specific skill sets needed, that may not
exist within Government
Different kinds of interaction needs
depend on type and scale of the project
Designating a communications manager
as focal point is of advantage
Interacting with
Stakeholders
IDENTIFY
Stakeholders
DEVELOP
Communication
Strategy
INTERACT
with
Stakeholders
Satisfactory outcome
THE
ARRANGEMENT
The appropriate approach with
each group of Stakeholders
depends on a number of
variables, including:
The Group’s capacity
Understanding of Private
Participation
The ways that social,
political and economic
climate affect Group
Interacting with
Stakeholders
“The appropriate approach with each group of Stakeholders must be varied”
Some potential Stakeholder Interactions:
Customers
NGO’s
Workers
Private Firms and Financiers
Alternative Providers
Opinion Leaders and other Politicians
Media
Interacting with
Stakeholders
“The appropriate approach with each group of Stakeholders must be varied”
Some potential Stakeholder Interactions:
Customers
NGO’s
Workers
Private Firms and Financiers
Alternative Providers
Opinion Leaders and other Politicians
Media
Involving Stakeholders
in Design
IDENTIFY
Stakeholders
DEVELOP
Communication
Strategy
INTERACT
with
Stakeholders
Government can use the
information from Stakeholders
to make estimates of the
effects of Arrangements on the
different groups.
Whilst net benefits may be
expected, it is necessary to
review the effect on each of
the different groups, and
balance the interests of the
‘winners’ and ‘losers’ in the
final design
Satisfactory outcome
THE
ARRANGEMENT
It is possible to establish a
quantitative ‘policy model’
approach to help in this task.
Winners & Losers
under different options
“Winners & losers can be identified and gains & losses estimated. If necessary the
Arrangement can be redesigned to take account of this.”
Introduction of Private Participation reform is on the basis that there will be net
benefits to the community. This means that benefits for the ‘winners’ outweigh costs
borne by the ‘losers’.
In principle, it may be possible to distribute benefits so that no group loses.
In practice, Governments may wish to support one or more groups such as the
disadvantaged poor or politically influential groups (water workers, major water
users etc.)
 Example: Unconnected poor expected to gain from service expansion.
Existing customers might be expected to pay increased tariff and, unless
services improve, they will ‘lose’. Government needs to quantify the
situation, and use the information to adjust the design as necessary. In this
case, the redesign could include a subsidy to the poor.
“A quantitative approach may be used to evaluate the social and economic impact
of the Arrangement, and help to simulate the potential effects ”
Step 1 - Identify current parameters for various
Household/Stakeholder types.
Winners & Losers - Policy
Simulation
Might include:
Step
2 – Model
Service and
Tariff Scenarios.
 Middle
class household
/ registered
pipe connection
 Low income household / registered pipe connection
For
each
Scenario
the model
predicts
net impact on the
 Low
income
household
/ illegal
connection
welfare
of each typical
Household
Stakeholder types
 Unconnected
household
/ wateror
standpipe
Step 3 – Evaluate
change inThe
welfare
acrossPolicy
the
 different
Workers
“Social impact modeling can establish the
stakeholders.
Toolkit
different
Groups
 Estimates
additional
value placed on each
Taxpayers
funding
any subsidies
Simulation Model quantifies the effects with
different
scenarios”
 Other service
important groups
TheToolkit
Policy
uses
Subtracts
anySimulation
increase in Model
bills from
thea simplified
Household Survey
and stylized
form tariff
of this
analysis.
Scenario’s
increases
Current Service
Willingness to pay
Income
Service Scenarios
It considers:
 The currently connected
 The currently unconnected
Tariff Scenarios
Assumes:
 How much the unconnected have to pay for
their water
 Willingness to pay for better services
The model predicts the effects of reform on both Groups
Typical households/stakeholders
Predicted change in welfare
Reviewing Module 3
‘The Module has looked at the whole range of Stakeholder communication issues in
Arrangement design………….’
Identify
Stakeholders
Develop
Communication
Strategy
Interact
with
Stakeholders
Satisfactory outcome
The
Arrangement
More Information:
Module 3
More information Involving Stakeholders:
Advantages of involving stakeholders: Cabanero-Verzosa and Mitchell 2002, Plummer 2002, Trémolet and Browning
2002, and Water and Sanitation Program 2002b.
Consultation techniques and stakeholder interaction: Asian Development Bank 2002 (pages 25 to 29), Mukherjee and van
Wijk 2003, Plummer 2002, Plummer and Nhemachena 2001, PPIAF and Water and Sanitation Program 2002d (Chapter
6), Sohail 2003, Wilcox 1994, and World Bank 1996.
Sustainable partnerships with NGOs and community organizations: Trémolet and Browning 2002 and Trémolet and
others 2004.
Engaging the media: Osborne 2003
Household surveys: Hanley and others 2001 and Whittington 1998.
Engaging the media: Osborne 2003.
Interacting with workers: Chong and Rama 2000, Idelogovitch and Ringskog, 1995, Kikeri 1998, PPIAF and World Bank
2004, and Rama 2000.
Advisor support for consultation and effective communication campaigns: World Bank Development Communications
webpage “Publications and Articles” available at
http://www.worldbank.org/developmentcommunications/Publications/publications.htm
Quantitative analysis of impacts on stakeholders: Catalyst Solutions in association with Castalia 2003 and van den Berg
2000.
Supporting Material
• The Toolkit Financial Model
• Toolkit Case Study material
• Toolkit Website:
http://rru.worldbank.org/Toolkits/WaterSanitation/
• For comments or further details contact Cledan Mandri Perrott at
[email protected]
Toolkit: Module 3
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Toolkit: Module 3
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