Water Utilities in Africa face Distribution & Commercial Losses to a whooping level of 60-70% of the amount of treated water. This makes the water projects financially unviable and leaves the project dependent on subsidies without which there will be crippling effect on the continuity of the supply. This will have a adverse effect on health issues. On the other hand, continuous Subsidisation will adversely affect the budgetary deficit. Through this project, I attempt to communicate the problem and suggestions to Students, Policy-Makers, Water Administrators, Community Leaders and General Public as a whole. Thanking you all.

2. Sustainable
Development Goals -
Finding Solutions in
Water Sector in Africa

3. WEL-COME

4. Definition of Development
• Development - Not restricted to Economic
Development (Jobs ,Economic Growth, Infrastructure)
but covers a whole gamut of human life enveloping
human development (Education, health care, poverty &
hunger),
Social Development (Potable Water, Gender Equalities,
Peace & Justice)
& Environmental Development(Clean Energy, Forest
Cover, Water Conservation & sustaining a co-exisiting
ecosystem with other species)

5. Development - Summary
• Covers following aspects –
• Human Development
• Social Development
• Environment Development & also
• Economic Development
All aspects covered in 17 SDGs to be
implemented from 2016-2030

6. Financing Challenge for SDGs
• Financing Challenge arises mostly from the
following -
1. Development needs hugely surpass the MDB
commitments of ODA & IDA
2. Ineffective Domestic Resource Mobilisation in
Developing Countries
3. Illicit Financial flows of Multinational Corporations
4. Bringing Private Sector on-board to make for
deficit in financing the SDGs

7. Bringing Private Sector On-board
Private Sector Will Invest in SDGs Implemetation
only if –
• Favourable Risk Vs. Return Considerations &
• Good Business Climate

8. Bringing Private Sector On-board
• Factors for Good Investment Climate
Public Finance
Private Finance
• Improvement in ease-of-doing
business
• Independent judiciary
• Consistent Tax Policy
• Effective , transparent & unbiased
Tax Administration
• Institutional Reforms
• Land & Labour Reform
• Risk de-coupling & Mitigation
Avenues
• Scope for Financial Return on
investments
• Effective Public Finance Policy
through stable macro economic
management
• Corruption –free Administration
• PPP Project Pipeline & legal
framework for a thriving PPP climate

9. SDGs & water Sector
• 6th SDG
CLEAN WATER & SANITATION
ENSURE AVAILABILITY & SUSTAINABLE MANAGEMENT
OF WATER & SANITATION FOR ALL

10. Water Sector in Africa
• Public Sector Utilities / Corporations
or Government Depatments
• Hugely inefficient & unsustainable
operations
• Financial losses mainly due to huge
distribution losses to the tune of 60-
70%

11. Major Challenges
• Highly indebted/subsidised with huge losses
• Distribution losses very high with obsolete
distribution network rendering projects
financially unsustainable
• Uncertain service level due lack of financing
• Political interference
• Absence of Institutions
• Low level of skill & capacity development
• Community Relationship & Communication

12. A Chartist’s View of Financial Concern
120 118.8
50
40
65
0
20
40
60
80
100
120
140
Water Intake Water Production Water Billied Revenue Collected Production Cost
Water Intake
Water Production
Water Billied
Revenue Collected
Production Cost

13. WATERUTILITYREVENUELOSS RAW WATER
INTAKE
DESPATCHED
WATER
PRODUCTION
BILLABLE
WATER
BILLED WATER
PRODUCTION LOSS
MAIN LINE
DISTRIBUTION
LOSS
CONSUMER LINE
DISTRIBUTION LOSS PAID
WATER
UNPAID BILLED
WATER

14. WAY FORWARD
• PPP is envisaged as the way forward
• Role of Government is to play stewardship in
encouraging Private Sector Investment, especially in
Distribution & Commercial area.
• Role of Private Sector is to enhance productivity in
Distribution, Billing & Collection.
• Scope for Innovative Financing through
Philanthropy in Community Relationship,
Communication Outreach, Skill & Capacity
Development and Environmental Issues in Water
Sector.

15. Schematic Financing Pattern
TOTAL
PROJECT
COST
Government,
Institutions,
MDB
55-60%
Private Investor
30-35%
NGO
5 – 10 %
Capacity
building, R & D Operational
Activities
Non-operational Expenses

16. Role of Government
Government can play a vital role as under to
encourage Private Sector involvement in Water
Distribution Area
• Improved co-ordination with other state agencies
& Government Contractors
• Ensuring security of assets
• Enactment of Water Bill to provide space for
independent regulator, to deal with criminal issues
in Water Transactions such as illegal connection,
unregistered meters, meter bye-pass, etc.
Contd.

17. Role of Government
• Improvement in the economic scenario such as rising
income, new job creation, etc.
• Creating framework for PPP model in a way for the
Private Operator to pay for themselves for the
Distribution & Densification Project.
• Ensuring professional management by eliminating
political post from Management.
• Bringing in Institutional Reforms by setting up Water
Sector Regulator, Water Tribunals & ensuring
independence of the same
• Fair & transparent Tariff setting procedure
Contd.

18. Role of Government
• Centralisation of billing & payment of water
consumption by all Government offices including
the autonomus & semi-autonomous State Agencies
• Imposing levy on borehole pumps in areas where
service is not available
• Providing authentic Land & Plot data for network
expansion

19. Role of Private Partner
• Refurbishment of Plant & Distribution Systems
• Improvement in Distribution, Billing & Collection Efficiency
• Setting-up Smart Bulk Meter Network along all the main lines
covering nodal joints and terminal points to facilitate generation of
intelligent and actionable data
• Setting-up CRM Software to generate classified data on Customer
complaints & the response actions taken
• Maintaining adequate stock of bulk meters & other repair materials
on a consistent basis
• To be Contd.

20. Role of Private Partner
• Rationalisation of Staff Payroll and linking incentives to
improvement in Meter Reading exercise
• Mechanism for reprimanding & penalising staff &
customers for unscrupulous acts
• latest technology in the area of Meter Reading, Bill
Distribution & 24x7 Bill Payment facility, CRM, Internet &
Web Services-Private
• Contd.

21. Role of Private Partner
• Adopting newer technology such as
GSM, GPRS, GIS in the area of POS based
Meter Reading, on-the-spot billing,
assignment of field work, etc.
• Implementing active web-based services
such as bill distribution, online payment,
Customer complaints, etc.
• Implementing POS based collection
through Collection Agents

22. Role of Philanthropy / NGO
• Enhancing Customer awareness & education
on various issues such as importance of timely
pament, application of water rate collection,
water conservation, etc.
• Carrying out Climate & Environmental Study &
Water Table Surveys.

23. Desired Role by MDBs
• Providing Project Advisory & Consultation Service
to Government in framing PPP agreements, Risk
Identification, Analysis & Mitigation guidelines,
advising incentives for Private Investors,
Benchmarking the desirous outcome of PPP, Setting
roles & responsibilities of all the stake-holders, etc.
• Monitoring & Evaluation Services

24. THANKING YOU
&
BEST OF LUCK TO YOU ALL IN
IMPLEMENTING SDGs