SUSTAINABLE URBAN WATER SERVICE DELIVERY; FOCUSING ON EFFICIENCY
AND LEADERSHIP
The Experience of National Water and Sewerage Corporation (NWSC)
Address at
INTERNATIONAL WATER SECURITY CONFERENCE _UNIVERSITY OF OXFORD_UK
Dr. William T. Muhairwe
Former Managing Director, NWSC-Uganda
April -2012
Outline
Introduction
Challenges facing Sustainable Urban Water
Service delivery
What was done: The NWSC Experience
Key Achievements and lessons
Conclusion
2
Rapid urbanization
Population explosion
old infrastructure
Climate change
Challenges of sustainable urban water service delivery
Introduction
4
The provision of Water and Sanitation Services is of paramount
importance as it provides the foundation for sustainable development.
Global trends show provision of water and sanitation services is still
inadequate:
1.1 billion people have no access to safe
water services, and 2.6 billion have no
access to adequate sanitation services
The provision of water and sanitation
services in the developing World has
lagged behind that of the developed
countries.
The cost of failing to properly address
water security and its associated risks is
significantly higher than the cost of
addressing it
The question is What are the prevailing
water and sanitation challenges?
Question 1:
In your view why do you think utilities in the third and
emerging economies are lagging behind in WSS service
delivery?
1: Poor leadership
2: Poor management
3: Poor governance and accountability
4: Attitudinal issues (culture. Sit & do nothing syndrome)
5: External interference (political, global crisis)
6: inadequate financing
5
Answers to Question 1:
Interactive voting from participants during the Global
water summit in Berlin April 2011
6
Answers to Question 1…
Why utilities in the third and emerging economies are lagging behind in WSS service delivery? – Response from UNESCO-IHE MWO Course participants June 2011
7
Typical performance of WSS utilities in developing/emerging economies
Low service coverage Inefficient/intermittent water supply : 2-
10 hours of supply/day
Large inefficient work force with
conflicting roles: staff productivity of 30-50
staff/1000c
Poor organisational culture – corrupt field
staff , late coming, drunkenness
Low operational efficiencies: NRW 50-
70%
Monthly deficit (unable to pay staff salaries,
chemicals, power, etc)
Poor customer care High operating expenses (admin, medical,
transport)
Low collection efficiency (40-70%) High debt burden (borrowed money for
infrastructure development & operations)
High level of debtors of about >8 months Poor incentive structure
8
Question 2 - What next ?
If you are a donor, financing institution, NGO, Government, Board of Directors, Manager, customer; with such a utility - what would you recommend of the following?
1: Dissolving the company
2: Full Privatisation (foreign/local)
3: Private Sector Participation (50/50 share)
4: Internal reforms
5: Maintain status-quo
6: No idea
9
Answers to Question 2:
Interactive voting from participants during the Global water
summit in Berlin April 2011
10
Answers to Question 2:
If you are a donor, financing institution, NGO, Government, Board of Directors, Manager, customer; with such a utility - what would you recommend of the following?– Response from UNESCO-IHE MWO Course participants June 2011
11
NWSC´s Experience to WSS Challenges…
12
NWSC Situation in 1998
Quote World Bank at that time: “Over the last 10 years, the GOU in partnership with the World Bank and Other Donors have made significant investments (over US $ 100 million) in the Urban Water and Sewerage sector. These investments have contributed immensely in rehabilitating the existing infrastructure under the NWSC management. Unfortunately, these investments have not been matched with the necessary efficient commercial and financial management capacity that can ensure the delivery of sustainable services in the medium to long-term”.
Low Service Coverage Insufficient water supply
Large inefficient work force with conflicting roles:
Staff Productivity 36/1000 connections
Poor organizational culture -Corrupt Field Staff
High UFW 60 -65% Monthly Deficit - $300,000
Poor Customer Care High operating Expenses (adm, medical,
transport
Low Collection Efficiency (60-70%) High Debt Burden 100 million $
Huge level of Debtors of about 14 months Poor organizational culture i.e. late coming etc
Typical of Watsan Utilities in Developing Countries
NWSC Experience : initiatives undertaken
13
Formulated both Long Term and Short Term Plans
Policy level
Change of the Board and Management
Performance Contracts with Government /Water Boards
Corporate Plans (3-5 years)
Annual Budgets
Operational level
Operational framework through Change Management Programmes
(100 Days)
Service and Revenue enhancement project (SEREP),
Area Performance Contracts (APC),
Stretch out programme
Internally Delegated Area Management Contracts (IDAMCS),
One Minute Management Concept (OMM),
Checkers system
NWSC Case: Key Achievements!!
Performance Indicator 1998 2011
Service Coverage 48% 75%
New Connections per year 3,317 25,633
Total Connections 50,826 272,406
Metered Connections 37,217 271,734
Metering efficiency 73% 99.8%
Staff per 1000 Connections 36 6
Collection Efficiency 60% 98%
NRW 60% 32.8%
Proportion Metered Accounts 65% 99.8 %
Annual Turnover (Billion Shs) 21 132
Profit (Before. Dep) (Billions Shs) 8.0 (loss) 30 (Surplus)
Source: Audited Accounts
ISO certified
WHO
compliant
Various awards
Key Success Factors
Empowerment of staff
Devolution of power from the centre to regional
operations
Incorporation of private management style
Good planning and continuously challenging
management teams with new performance targets
Out sourcing non core activities
Clear oversight and monitoring
Information sharing through benchmarking
Core Services
Advisory Services
Capacity building
Technical Assistance
Organizational behaviour
change
Institutional development
Contract design &
incentive systems
Asset management
Project management
Systems development
Water
Electricity
Industries (Steel
Mills)
Banks
Government
Ministries
Kenya, Tanzania,
Zambia, Mozambique
Nigeria, Yemen
Ethiopia, Pakistan Water
Boards
Southern Sudan
New Delhi & Several
Municipality Water Boards
External Services offered by NWSC
Conclusion 17
Each reform situation is Unique but there are some core underlying
tenets (be it public or private)
1.Autonomy – being independent to manage professionally without
arbitrary interference by others
2.Pricing and Accountability – The price must be right- reduce costs and
increase revenue, being answerable to another party for policy decisions,
the use of resources and for financial sustainability
3.Customer Orientation – Reporting and listening to clients.
4.Market Orientation – Making greater use of markets and the
introduction of market style incentives.
“WE MUST EITHER FIND A WAY OR MAKE ONE”,
HANNIBAL
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