The roles of public and private finance to universalize the access to water in semi-urban areas the case of Burkina Faso, by Christelle Pezon at the West & Central Africa conference on financing for water, sanitation on 15 dec 2015

1. Supporting water sanitation
and hygiene services for life
15 December, 2015
Dr Christelle Pezon, IRC associate
The roles of public and
private finance to
universalize the access to
water in semi-urban areas
the case of Burkina Faso

2. What is an equitable & sustainable access to
water in small towns?
At the moment, semi-urban
population pays 500 FCFA/m3
whereas urban pop pays 250
FCFA/m3 for water at stand-pipe
At the moment, it costs 200,000
FCFA to a semi-urban household
to have a private connection
At the moment, the provision
made for capital maintenance
and paid by users are kept by
operators as profit, and not
available when systems break
down
1) Semi-urban population should
access the same basic level of
service as in Ouagadougou, at
the same price
2) Semi urban population should
benefit private connections for
free, as in urban areas
3) Water revenue should cover
O&M and short/mid term
capital maintenance
expenditures (pumps and
generator)

3. How much is required to provide an equitable acces
to water to all in semi-urban Burkina Faso by 2030 ?
Energy source Capital investment
2016-2030
O&M and short /mid term
capital maintenance
2016-2030
Fossile energy FCFA 610 billion
$ 985 millions
FCFA 336 billion
$ 543 million
Solar energy FCFA 795 billion
$ 1,284 billion
FCFA 220 billion
$ 355 million
Source: Pezon C. La politique tarifaire de l’eau potable de 2016 à 2030 au Burkina Faso (WSP – DGRE)
Total population: 27,5 to 30 millions (vs 18 millions in 2015)
Small towns population: 12 millions (vs 7,5 millions in 2015)

4. A better service at lower tariff can be sustainable
The shift to renewable energy
allows for financial sustainability
of WASH services (publicly or
privately managed) at half price
197
270
23
67
37
-78
-100
-50
0
50
100
150
200
250
300
350
400
billionFCFA
O&M, short term capital maintaince and
benefit on 2047 services, 2016-2030
O&M Short term capital maintenance Benefit Loss
thermicsolar

5. Extra investment is required to universalise a
sustainable and equitable access to water
By 2030, 70% of semi-urban population
access water through private connection
and 30% by stand-pipe
The transition towards renewable energy
costs 15,000 FCFA per capita in 15 years
($1.6 per capita per year) 0
100
200
300
400
500
600
700
800
900
Thermic energy Solar energy
billionFCFA
Capital investment to service water to 12
millions Burkinabè by 2030
Scheme Distribution Production Capacity building

6. The role of public finance
To finance capital investment and provide a
service that complies with users’ expectations
and deliver a volume sufficient for economies of
scale
To switch from fossile to renewable energy and
turn the management of services into an
attractive business for operators
To secure the provisions for short term capital
maintainance by pulling them in a national fund

7. The scale of public finance
• 0,79% of GDP is spent on WASH ($140
millions in 2012) while OECD indicates a target of
6%
• 55% of public finance originate in transfer:
a premium to support the transition
towards non-fossile energy should be
considered

8. The role of private finance
Users contribute for O&M and short-term capital
maintainance. They don’t contribute to access
the service.
Banks could support the development of
renewable energy in Africa
Banks could support the development of
banking mechanism to manage the national
fund

9. Visiting address
Bezuidenhoutseweg 2
2594 AV The Hague
The Netherlands
Postal address
P.O. BOX 82327
2508 EH The Hague
The Netherlands
T +31 70 3044000
info@ircwash.org
www.ircwash.org
Supporting water sanitation
and hygiene services for life
Merci de votre attention