Transcript ROLE OF THE REGULAROR IN SERVING THE URBAN POOR

THE ROLE OF THE
REGULATOR IN SERVING
THE URBAN POORZAMBIAN EXPERIENCE
PRESENTED BY
KASONGE WATSON LUMBA
NWASCO, ZAMBIA
Water supply and sanitation in Zambian towns
10 Million
70% low income area
3 Million
9 Public utilities
33 Local Authorities
6 Private
REGULATING WATER
SUPPLY
• PROBLEM OF WATER SUPPLY
SECTOR
IT HAS LESS SCOPE OF
COMPETITION
MONOPOLISTIC
BEHAVIOUR
NO REGULATION MAY LEAD TO
COMPROMISE IN SERVICE
QUALITY
HIGH TARIFFS
DESCRIMINATION AGAINST
THE POOR
LACK OF INVESTMENT
IN APPROPRIATE TECHNOLOGIES
EXTERNAL
INTERFERENCES
Institutional set-up of Regulation
Power and
Responsibility
- Water + Sanitation ACT
- Statutory Instruments
- MEWD
- High Court
Arbitration
Large
Autonomy
Small size
Lean Structure
-
Statutory not ministerial body
Own budget from fees
Transparent selection of staff
Private sector salaries
Reports to Government / MEWD
-
Board 14 Directors
Personnel 13
Fees 1% provider turnover
Water Watch Groups
Licensing of providers
Guidelines on Provision of services
Enforcement
tools for
regulation
Tariff negotiation
Comparative publication
Enforcement notices
Incentives - Penalties
Extension to peri-urban / DTF
THE CHALLENGE POSED
BY THE URBAN POOR
• DEMAND FOR SAME QUALITY OF
SERVICES
• THEY ARE IN THE MAJORITY (about
50-70% of the urban population in
Zambia)
• THEY LIVE IN UNSTRUCTURED
LOCATIONS
• THEY HAVE MANY ADVOCATES(e.g.
politicians, pressure groups, Ngos)
• DISPARITIES IN INCOME
DISTRIBUTION
POSSIBLE SERVICE
PROVIDERS TO THE URBAN
POOR
• LOCAL AUTHORITY
• PUBLIC UTILITIES
• DONOR/NGOS AGENCIES
(Financing& Implementation)
• PRIVATE OPERATORS (SPP, IMC)
Strategy in Servicing the poor
Defining service area in the license/
jurisdiction of local authority
Provider remains responsible for
quality and tariffs of other players
(NGO, communities) within licensed
area
Providers have to offer sufficient
adequate outlets Kiosk –
commercialized public stand posts
Extending service delivery into low
income areas is integral part of
investment plan from providers
NWASCO’S OTHER AVENUES FOR
ENSURING THE POOR ARE SERVED
• LOBBY GOVERNMENT TO GIVE TAX
INCENTIVE TO OPERATORS SERVICING
THE URBAN POOR (classify water providers
in zero rated class for VAT, exempt from
import taxes, reduced electricity bill)
• ADVISE GOVERNMENTS IN
STRUCTURING PSP AGREEMENTS
• ASSIST POLITICIAN IN UNDERSTANDING
ISSUES AFFECTING THE SECTOR
THANK YOU VERY MUCH
FOR YOUR ATTENTION