Joint workshop on Enhancing efficiency and sustainability of Water Supply and Sanitation presentation - Maria SALVETTI, WSS Service Provision: Potential for Inter-Municipal Cooperation and Consolidation modalities, OECD

1. ITEM 2. WSS SERVICE PROVISION:
POTENTIAL FOR INTER-MUNICIPAL
COOPERATION AND
CONSOLIDATION MODALITIES
Maria Salvetti, Water Economist & Policy Analyst

2. Modalities of WSS consolidation
Definition
Process by which two or more WSS service providers consolidate
some or all their activities under a shared organizational
structure, whether it implies physical infrastructure
interconnection or not, and whether the original service
providers continue to exist or not.
It can encompass a large variety of situations, which can be
distinguished according to their purpose, scope, scale,
governance, process

3. Modalities of WSS consolidation
 Based on the 6 EU
MS case studies

4. Modalities of WSS consolidation
Technical efficiency, Service quality,
Customer satisfaction
Performance
improvement
Investment
needs
Increasing financial base, Pooling resources
for cost-effective investment, Cross-
subsidies & solidarity urban/rural
 Key drivers for WSS aggregation reform

5. Modalities of WSS consolidation
 Most common scale follows administrative boundaries
 Most common scope encompass all services & functions

6. Modalities of WSS consolidation
 Process is predominantly mandated (top-down) and
financially incentivized (EU funds or national grants/loans)
 Early stakeholder engagement is key to strengthen alignment
of interests between the national and local levels
 Both the design and implementation of aggregations take
time and can spread over decades. Consequently, benefits
also take time to materialize.

7. Modalities of WSS consolidation
 Shareholder rights and power distribution
 Exit and entry clauses
 Oversight and coordination of tariff and performance
 Cost- and revenue-sharing agreements
 Asset ownership, transfer, development, and management
 Corporatization, Liabilities, Staffing and human resources
management, Information technology systems

8. THANK YOU
maria.salvetti@oecd.org