Unlocking Private Investment

1. FINANCING FOR DEVELOPMENT
Unlocking Private Financing Solutions
Drinking Water Supply in Rural Areas of the State of Punjab remained a
major challenge despite the fact that surface and ground water is abundantly
available in Punjab.
Historically, even the state Punjab has derived its name from the word
"Punj Aab" meaning “Five Waters” referring to the five rivers namely the Beas,
the Ravi, the Sutlej, the Chenab and the Jhelum traversing the undivided Punjab
(prior to 1947).
Map of Five Rivers flowing in Punjab before Independence (1947)

2. After 1947, the state of Punjab was divided and has left with only three rivers
namely The Ravi, the Beas and the Sutlej.

3. These rivers have bestowed Punjab with fertile land and abundant supply of
surface and ground water. However, easy availability of water resulted in its
reckless use, over exploitation of aquifers and indiscriminate pollution of water
bodies. This 'Problem of Plenty' has entailed to serious Quality Problems and
depleting water table. As per Central Ground Water Board, India, out of 138
blocks of Punjab State, 112 Blocks are stated to be over exploited.
Apart from above water pollution has engulfed the entire state thereby
rising water quality issue. In addition to heavy metal pollution ( Uranium, Lead,
Selenium, Aluminum etc.) the following are the common chemical pollutant
occurring in the ground water of the Punjab.
Ground Water Quality Problems
Contaminants Districts affected (in part)
Salinity (EC > 3000 µS/cm at 25 ° C) Firozepur, Faridkot, Bathinda, Mansa,
Muktsar, Sangrur
Fluoride (>1.5 mg/l) Amritsar, Bhatinda, Faridkot, fatehgarh
Sahib, Firozepur, Gurdaspur, Mansa,
Moga, Muktsar, Patiala, Sangrur
Chloride (> 1000 mg/l) Firozepur, Muktsar
Iron (>1.0 mg/l) Bhathinda, Faridkot, Fatehgarh Sahib,
Firozepur, Gurdaspur, Hoshiarpur, Mansa,
Rupnagar, Sangrur
Nitrate (>45 mg/l) Bhathinda, Faridkot, Fatehgarh Sahib,
Firozepur, Gurdaspur, Hoshiarpur,
Jalandhar, Kapurthala, Ludhiana, Mansa,
Moga, Muktsar, Nawan Shaher, Patiala,
Rupnagar, Sangrur
Hence potable drinking water supply becomes a major challenge and matter of
concern in Punjab.
However, the state Government (GoP) remained sensitive to above issue and
accorded highest priority to drinking water supplies particularly in the rural areas
of Punjab through its various flagship Projects.

4. Paradigm Shift:
GoP’s vision and long term strategy aims at covering all the villages of Punjab with
piped water supply called "Medium Term Program". DWSS Punjab in year 2006
with financial assistance from the World Bank (IDA), has developed Rural Water
Supply and Sanitation Project (PRWSS), with main objective (i) to cover all Not
Covered (NC) and Partially Covered (PC) villages so as to achieve Fully Covered
(FC) status (ii) ensuring sustainability of water supply schemes, and (iii) initiating
measures to improve sanitation condition of villages.
Prior to PRWSS project water supply systems were being constructed and
operated entirely by Department of Water Supply and Sanitation (DWSS) with
little or no participation of community (end user) and designed service level was
40 litres per person per day (lpcd), consequently individual household water
connections were very less and performance of O&M was poor. However PRWSS
has proved to be a paradigm shift. Active participation Community (end user) has
been ensured right from pre-planning stage to post-implementations stage.
Service level has been raised from 40 lpcd to 70 lpcd. Now, the O&M of water
supply systems are being taken care of by community without financial assistance
from government agencies.
Sustainability:
Sustainability is based on a simple principle: Everything that we need for our
survival and well-being depends, either directly or indirectly, on our natural
environment. Sustainability creates and maintains the conditions under which
humans and nature can exist in productive harmony, that permit fulfilling the
social, economic and other requirements of present and future generations.
Sustainability is important to making sure that we have and will continue to have
the water, materials, and resources to protect human health and our
environment.
According to American Water Works Association (AWWA), Sustainability means
providing adequate and reliable water supply of desired quality – now and for

5. future generations in a manner that integrates economic growth, environmental
protection and social development.
SUATAINABILTY THROUGH INNOVATION:
While implementing PRWSS (World Bank Aided) Project it has been observed that
on transferring control of Operation and maintenance of water supply schemes to
respective communities, sustainability of water supply schemes remained a major
challenge for DWSS to address to. It has been observed in rural water supply
systems that due to intermittent water supply, consumers store more water than
actual requirement; whenever water is again supplied; they tend to discard
original stored water and start filling it again. Due to intermittent supply
consumers are also left their taps open so that they could know that when the

6. water supply is resumed. This practice is resulting in water wastage that needs to
be minimized.
Picture of a Rural Water Works
Many consumers do not install taps on their water connections resulting in
continuous wastage on water. Due to wastage of water, complaints of non-
availability of water starts pouring in, consequently many a time consumers are
unwilling to pay (their water charges) in such situations thereby posing a threat to
financial sustainability of the scheme.

7. An Awareness creator showing a house connection without Tap,
running continuously resulting in water wastage and stagnant water in village street.
To compensate for adequate water supply pumping needs to be increased which
ultimately leads paying more electric bills to Electric companies, thereby
increasing the operation costs. Further, more wastage also results in generation
of more waste water which fills the village disposal pond and resulting in its
overflow- stagnant water poses serious health threats to the residents.

8. Picture of a filthy Pond
Moreover, over-pumping further deteriorates the already depleting ground water
reserves.
Unlocking Private Investment:
Tap installation on individual household water connections does not fall under the
domain of government funds nor can it be covered under IDA Funds.
Hence Private partners and Donors were presented the benefits of installing taps
on house connections and were told that their participation will help in:
 Reducing water wastage, hence clean drinking water will be available to
every resident of the community.
 Reduced Pumping hours will result in less consumption of electricity; it will
not only save energy costs (thereby reducing the water bills), but also result
in less carbon emission as Coal based thermal power plants will be working
less due to reduced electricity demand.

9.  Less water wastage will also put less stress on scarce ground water sources.
 Lesser wastage will also result in lesser generation of waste water thereby
saving costs on this account also.
 Participation of Private investors will make water supply systems financial
sustainable.
So, Private investors and donors pooled in money and purchased taps and
storage tanks that were installed in the houses of residents.
Taps being fixed on water connections.

10. Taps being Fixed on water connections.
Storage Tanks were also installed on roof –top of Houses.

11. Apart from, above, awareness was also created among community to use drinking
water judiciously and not to waste water and close taps after filling of water.
DWSS officers and residents carrying out awareness.

12. A house to house awareness was also carried out.

13. A meeting of local community group

14. It is pertinent to mention here, success of solution can also be attributed to large
scale mobilization of women folk of the village through sustained awareness
activities.
Women Participation in the meeting of community

15. Women member of community Group actively participating in meetings and
discussions, leading to women empowerment.
.

16. This solution resulted in immediate assured 24x7 water supply to consumers, as
he/she is confident that his/her storage tank is FULL of water, and also resulted in
equitable distribution of water and pressure to all the consumers.
A water connection of Household delivering water at adequate pressure

17. As water supply is available in each household, consumers pay their water bills
happily, thereby making water supply system financial sustainable.
By unlocking this Innovative Private financing solution, which is only a
fraction of capital cost of project, residents of Village are now getting 24 hour
assured drinking water supply. Local community not only met all its expenditures
incurred on O&M of Water Supply Scheme but also generated surplus revenue.
Further, it also has strengthened social ties among community and built their
capacity to address any other challenges as well.