Challenges & Lessons from water sector reforms and devolution

1

CHALLENGES AND LESSONS FROM WATER SECTOR

REFORMS AND DEVOLUTION 2nd WATER DIALOGUE FORUM

Louis Leakey Auditorium. National Museum of Kenya.

5TH NOVEMBER 2013by

ENG. PETER NJAGGAHWater Services Regulatory Board

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

Content

3

History – the old days of WSS

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

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

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 ?

Context of the WSS generally

5

Water Act 2002 reform brought appropriate framework /

WSPs can now act in an enabling framework …

Utilities commercialized and regulated and remained in public hands

State mobilized resources for asset development

Regulation sets standards, influence sector development

Pro-poor financing mechanism help to close the “last mile”

Utilities are forced/helped into the low-income areas

Monitoring of asset development

Concept of economies of scale and formalization is introduced

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

Ministry of Environment, Water & Natural Resources

Water Services Regulatory Board

Water Services Boards (WSBs) – asset holders

Water Service Providers (WSPs)

Consumers

License

Service Provision Agreement (SPA)

Service Provision Rules

Upward feedback/ engagement/complaints resolution

Sensitization

Water Action Groups (WAGs)

Current institutional framework of water services sub-sector

Mandated by Water Act 2002 and guided by national policy, Wasreb regulates 8 WSBs and 103 WSPs

6IWA Development Congress 2013

7

ACHIEVEMENTS-GROWTH IN WATER SECOTR BUDGET(1)

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2004/5 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12

Kshs

, Milli

on

Water Sector Budget

Recurrent

Development

TOTAL

(Source : MWI- Annual Water Sector review report 2011-12)

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

8IWA Development Congress 2013

Positive trend in number & ratio of WSPs submitting from 2005/06 to 2011/12

0

20

40

60

80

100

120

28

47 59 62

8796.15384615

3846

99.0291262135922WSPs complying with data

submission requirements

Year

Com

plia

nce

in %

Achievements (3)

• Performance improvements on most KPIs since 2005/06; e.g. Water Coverage

• Regular performance assessments (e.g. viability of WSPs) help inform sector decision-making/ strategy

9IWA Development Congress 2013

40

42

60 6063 68 71

40

38

47 4648

52

53

0

10

20

30

40

50

60

70

80

2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12

Water Coverage 21 urban WSPs reporting since 2005/06Water Coverage all urban WSPs

Very Large Large Medium & Small0

20

40

60

80

100

8065

43

Viability ratio per WSP size category (2011/12)

Series1

WSP size categoy

% v

iabl

e

Challenges 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 sector- Incomplete 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.

Challenges(cont)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.

Challenges(cont) 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

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

Obligations of State Art. 43 Right to Water and Sanitation Services

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.

Lessons learnt:

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.

What to safeguard!!!!

Ring fencing of Revenue: to be ploughed back exclusively to the water sector to grow it.

Devolution of Water Services: lessons learnt.

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.

Protection of assets: Most asset are cross county in benefit and should remain so to avoid disruption of services.

17

Coastal water Supply system.

Kililfi

Malindi

Kwale

VoiMombasa

TiwiBoreholes

MarereSprings

MzimaSprings Baricho

Wellfield

South Coast Mombasa North Coast

-------------------------------------------------------------------------------------------------------

BULK

SUPPLY

DISTRIBUTION

Likoni

Bulk Supply

I won’t pay for water, Joho tells

counties

• 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.

WATER IS A NATIONAL RESOURCE

“ IT WILL BE WRONG FOR COUNTIES TO DEMAND

REVENUE

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

Summary of Key Messages

Water services sector is already commercialised for better service delivery. Counties should continue with commercialisation.

Devolution of Water Services: lessons learnt.

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.

Smooth devolution of water services call for counties to drive reform but without disrupting service delivery.

Water Budget Speech tells water governance arrangements have been developed which will allow

“communities to participate in their own development”

Water Budget Speech tells water governance arrangements have been developed which will allow

“communities to participate in their own development”

Getting governance right ?

Thank you for your attention!

Contact: [email protected] URL: www.wasreb.go.ke

22IWA Development Congress 2013