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
Joint workshop on Enhancing efficiency and sustainability of Water Supply and Sanitation presentation - Maria Salvetti
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