Challenges & Lessons from water sector reforms and devolution

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  • OECD- Organization for Economic Corporation and Development.The mission of the Organisation for Economic Co-operation and Development (OECD) is to promote policies that will improve the economic and social well-being of people around the world.
  • .Engagement with the police and the DPPs office has not yielded satisfactory results. Water sector is part of the Kenyan fabric which has governance problems
  • National needs, County needs, urban needs, rural needs, the needs of future generations
  • Challenges & Lessons from water sector reforms and devolution

    1. 1. 2nd WATER DIALOGUE FORUM Louis Leakey Auditorium. National Museum of Kenya. 5TH NOVEMBER 2013 by ENG. PETER NJAGGAH Water Services Regulatory Board 1
    2. 2.         Looking Back- Old days of WSS General Context of WSS-Governance gaps Water Sector Reforms of 2002 Achievements Challenges CoK(2010) and WSS Lessons learnt Looking forward 2
    3. 3. History – the old days of WSS Utilities were depts. in municipality and the water revenue was used to fund other uses.(milking without feeding) No independent standard setting and monitoring Utilities were under performing / few professionals and ignored low-income areas (formal + informal/slums) National Government was directly providing water in rural areas and handing over to communities 1974 establishment of Ministry of Water Resource Management and development1974 National Water Master Plan – Slogan: Water for all by the year 2000 WSS service provision in rural and low income areas was left to informal / community / NGOs / cartels which filled the gap – disengagement of Utilities Result: water coverage for all not improving; Situation of the poor got worse; (child mortality in slums 2 times higher than country average) infrastructure badly worn out; no repayment of loans 3
    4. 4.  The OECD has identified multi-level governance gaps in water policy related to water resource management and to the delivery of water services (OECD, 2012) ◦ Policy gap: Overlapping, unclear allocation of roles and responsibilities ◦ Administrative gap: Mismatch between hydrological and administrative boundaries ◦ Information gap: Asymmetries of information between central and sub-national governments [and between utilities and governments, and consumers] ◦ Capacity gap: Lack of technical capacity, staff, time, knowledge and infrastructure ◦ Funding gap: Unstable or insufficient revenues of sub-national governments to effectively implement water policies [and to invest and operate infrastructure] ◦ Objective gap: Intensive competition between different ministries ◦ Accountability gap: Lack of citizen concern and awareness about water policy, plus low involvement of water users’ associations The Water Act 2002 attempted to solve these problems by separating Policy , Regulation and Enforcement , Asset Development, Operation and Maintenance  Have these Issues been solved in the Kenyan WSS ? 4
    5. 5. Water Act 2002 reform brought appropriate framework / Utilities commercialized and regulated and remained in public hands Utilities are forced/helped into the low-income areas State mobilized resources for asset development Monitoring of asset development Regulation sets standards, influence sector development Pro-poor financing mechanism help to close the “last mile” Concept of economies of scale and formalization is introduced WSPs can now act in an enabling framework … Commercialization: WSPs as State agent have to achieve government targets and account for performance Regulation: standards to be set and enforcement in the whole value chain of water supply and sanitation services Devolution : Enhancing the gains brought on by the water 2002 by leveraging COK 2010 5
    6. 6. Current institutional framework of water services sub-sector Ministry of Environment, Water & Natural Resources Water Services Regulatory Board License Service Provision Agreement (SPA) Service Provision Rules Water Services Boards (WSBs) – asset holders Water Service Providers (WSPs) Consumers Upward feedback/ engagement/ complaints resolution Water Action Groups (WAGs) Sensitization Mandated by Water Act 2002 and guided by national policy, Wasreb regulates 8 WSBs and 103 WSPs IWA Development Congress 2013 6
    7. 7. ACHIEVEMENTS-GROWTH IN WATER SECOTR BUDGET(1) Water Sector Budget 45,000 40,000 35,000 Kshs, Million 30,000 25,000 Recurrent 20,000 Development TOTAL 15,000 10,000 5,000 0 2004/5 2005/6 (Source : MWI- Annual Water Sector review report 2011-12) 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 7
    8. 8. Achievements (2) • Continuous sector performance reporting since 2005/06 increases transparency and accountability of sector institutions in guaranteeing rights of consumers • Steady improvement of data quality, completeness & representativeness 100 Compliance in % Positive trend in number & ratio of WSPs submitting from 2005/06 to 2011/12 120 80 WSPs complying with data submission requirements 60 47 40 20 59 87 96 99 62 28 0 2005/062006/072007/082008/092009/102010/112011/12 Year IWA Development Congress 2013 8
    9. 9. Achievements (3) 80 • Performance improvements on most KPIs since 2005/06; e.g. Water Coverage 70 50 40 60 60 60 40 30 48 42 40 63 47 38 46 71 68 53 52 Water Coverage 21 urban WSPs reporting since 2005/06 Water Coverage all urban WSPs 20 10 0 2005/6 2007/8 2008/9 2009/10 2010/11 2011/12 Viability ratio per WSP size category (2011/12) 80 % viable • Regular performance assessments (e.g. viability of WSPs) help inform sector decision-making/ strategy 2006/7 65 100 80 60 40 20 0 43 Very Large Large Very Large Large Medium & Small Medium & Small WSP size categoy IWA Development Congress 2013 9
    10. 10.         Noncompliance in the water services sector- Need for: a robust Legal Framework at national and County level which set out clear standards and supported by rules and regulations that have meaningful penalties. a strong enforcement mechanism. need for resources to ensure appropriate monitoring and compliance Governance in the water sectorIncomplete reform process has hampered transparency and accountability in management of resources; various interests in the deployment of resources. This will now be exacerbated by the issue of devolution and multiple power centres.
    11. 11.  Realization of universal access the articulation of coherent vision and a national strategy that balances the various demands;  the mobilisation of resources at national and county level to ensure universal access;  the determination of the standards and enforcement of the same at each level of government to achieve universal access guided by the human right to water and sanitation.
    12. 12.  Institutional strengthening and capacity building:  More qualified people to play all the roles required.  strong institutional framework.  continuous improvement of the quality.  financial resources and outlay of proper technology  Stakeholder participation in the sector Meaningful public participation in the provision of WSS from policy making, legislation, regulation, asset development, asset O +M and monitoring.
    13. 13.     Obligation to observe – the normative content of the right to water and sanitation services and not retrogress from where it is currently by going backward Obligation to respect – refrain from directly interfering or indirectly with enjoyment of the right to water Obligation to protect – state to prevent third parties from interfering in any way with the enjoyment of the right to water ( legislation and enforcement and regulatory system ) Obligation to fulfil – state to facilitate and promote so that individuals and communities can enjoy the right 13
    14. 14.   The right to water is best achieved in a sector operating under uniform norms and standard on quality, service delivery, cost recovery and protection of consumers. Good performance can only be ascertained if it is measured against agreed benchmarks, reported and audited regulary. 14
    15. 15. Lessons Learnt. • The right to water is best achieved in a sector operating under uniform norms and standard on quality, service delivery, cost recovery and protection of consumers. • Good performance can only be ascertained if it is measured against agreed benchmarks, reported and audited regulary.
    16. 16. Devolution of Water Services: lessons learnt. What to safeguard!!!! Ring fencing of Revenue: to be ploughed back exclusively to the water sector to grow it. Protection of assets: Most asset are cross county in benefit and should remain so to avoid disruption of services. Shared resources: Shared resources and their sustainable management for future generation and economic prosperity must be maintained. Investment into the water sector. Since the reforms of 2002 positive trend in sector funding has been registered with huge support from donors and development partners.
    17. 17. B U L K S U P P L Y Bulk Supply Mzima Springs Tiwi Boreholes Baricho Wellfield Marere Springs ------------------------------------------------------------------------------------------------------D I S T Kililfi R Mombasa I Malindi Voi B Likoni U Kwale Mombasa T South Coast North Coast I O N 17
    18. 18. WATER IS A NATIONAL RESOURCE I won’t pay for water, Joho tells counties “ IT WILL BE WRONG FOR COUNTIES TO DEMAND REVENUE • Taita-Taveta Governor John Mruttu targets revenue from water supplied to Mombasa county from Mzima Springs in his county. • Kilifi Governor Amason Kingi …… county would demand a share of revenue generated from Baricho Water Works in Kilifi.
    19. 19. Counties’ water cash bid opposed • “Taita Taveta, Kilifi and Kwale counties have no mandate over the production and supply of water in Coast”-CEO-CWSB
    20. 20. Devolution of Water Services: lessons learnt. Summary of Key Messages Water services sector is already commercialised for better service delivery. Counties should continue with commercialisation. Smooth devolution of water services call for counties to drive reform but without disrupting service delivery. Well performing WSPs can play a role in strengthening the legitimacy of the County governments. Devolution of water services still require greater clarity and certainity on pertinent issues.
    21. 21. Getting governance right ? Water Budget Speech tells water governance arrangements have been developed which will allow “communities to participate in their own development”
    22. 22. Thank you for your attention! Contact: njaggah@wasreb.go.ke WASREB URL: www.wasreb.go.ke IWA Development Congress 2013 22

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