Change Management for

Achieving Continuous Water

Supply in Urban Areas in India

V. Srinivas Chary ([email protected])

Administrative Staff College of India
 Learning Objectives
 Gain better understanding :
1. Urban Water – Situation Analysis
2. Need for 24-7 Water Supply in Cities
3. Moving towards 24-7 Water Supply
4. PPP options and models and recent experiences
5. Lessons for replication
 Session outline
 Introduction – 30 min
 Group discussion – 40 min
Report back – 30 min
Lessons and take away – 10 min
Context
 Urban Transformation

India is the second largest urban

system next to China

India is urbanizing fast

1. Urban Areas and People
 Urbanisation scenario
590
In MGI’s base-case scenario, cities are likely to
house 40 percent of India’s population by 2030 +250

Urban Population
millions
340
290

220

1991 2001 2008 2030

Total Population
856 1,040 1,155 1,470
millions
Urbanisation rate % 26 28 30 40

Source: India Urbanisation Econometric Model; McKinsey Global Institute analysis

 India is urbanising...

India’s urban population to increase

• From 350 mn today to 600 mn by 2031
• From 50 cities with population of 1 mn and above today to 87 by 2031

On average, 25 per cent of the population in Indian cities lives in slums.

Urban planning, urban infrastructure development and public service delivery of universal
standards must address this challenge.
Report on Indian Urban Infrastructure and Services
Urban Areas and Economy
 Cities and Economy
 Engines of Growth – over 60%
contribution to the economy

 Hubs for enterprise, innovation,

people and politics

 Increasing dependence of
national/state eco growth on
the productivity of cities
 Indian Cities and the Economy
Contribution to GDP

1980-81 47%
1990-91 55%
2000-01 60%
2021 73%

Efficient urban areas are essential for achieving growth and poverty
reduction targets. .

Source : MoUD, GOI

Urban Areas are competing for
investments
Cities and enterprise
Outsourcing competitiveness Index
 Cities are competing
It’s no longer India vs
China

Guangzhou vs
Gurgaon
Urban Areas and Poverty
 Cities and Poverty

Urbanization City Slum Population

of Poverty (%)
Mumbai 49
Kolkata 33
Nagpur 35
Ludhiana 23
Meerut 44
Faridabad 47

Poverty moves to cities

Envisioning world class urban systems
Reliable, Continuous,
High quality, Affordable
Efficient and World
Vision
Class Cities

Local Economic
Outcomes Public Health
Growth

 No water-borne  Sustained GSDP

Disease -- quality of Equitable Growth
life
• World class infrastructure and high quality
Output Municipal Services esp for the poor

Effective governance
 Benchmarks : Water Supply
Proposed Indicator Benchmark
Coverage of Water Supply Connections 100%

Per capita availability of water at consumer end 135 lpcd

Extent of metering of water connections 100%
Extent of non revenue water 15%
Continuity of Water Supply 24X7
Efficiency in redressal of customer complaints 80%
Adequacy of Treatment and Disinfection and Quality of Water 100%
Supplied
Cost recovery in water supply services 100%
Efficiency in collection of water supply related charges 90%
Number of persons receiving less than 70 lpcd 0%
 Benchmarks : Sewerage
Proposed Indicator Benchmark
Coverage of Waste Water Network Services 100%

Collection Efficiency of Waste Water Network 100%

Adequacy of waste water treatment capacity 100%
Quality of waste water treatment 100%
Extent of reuse and recycling of treated waste water 20%
Extent of cost recovery in waste water management 100%
Efficiency in redressal of customer complaints 80%

Efficiency in collection of sewerage charges 90%

Extent of Sewer House Connection 100%
Coverage of Toilets 100%
 Benchmarks : Solid Waste Management
Proposed Indicator Benchmark
Household level coverage of Solid Waste Management services 100%

Efficiency of collection of municipal solid waste 100%

Extent of segregation of municipal solid waste 100%
Extent of municipal solid waste recovered/recycled 80%
Extent of scientific disposal of municipal solid waste 100%
Extent of cost recovery in solid waste management services 100%
Efficiency in redressal of customer complaints 80%

Efficiency in collection of user charges 90%

Extent of processing and treatment of MSW 100%
Benchmarks : Storm Water Drainage
Proposed Indicator Benchmark
Coverage of Storm Water Drainage Network 100%

Incidence of water logging/ flooding 0%

 High quality services are
essential for enhancing urban
productivity

Particularly to the poor

Reality Check
 Water Supply - Median Analysis
S.n Indicator Unit Benchmark Median
o Value
1 Coverage of water supply connections % 100 67.5
2 Per capita availability at consumer end Lpcd 135 93
3 Extent of metering of water connections % 100 0
4 Extent of Non Revenue water % 20 30
5 Continuity of Water Supply 24 X 7 1.3
6 Efficiency in redressal of customer % 80 90
complaints
7 Adequacy of Treatment and Disinfection % 100 70
and Quality of Water Supplied
8 Cost recovery in water supply services % 100 25
9 Efficiency in collection of water supply % 90 60
related charges
 Sewerage – Median Analysis
S.n Indicator Unit Benchmark Median
o Value
1 Coverage of Toilets % 100 70
2 Coverage of Waste Water Network Services % 100 23.5
3 Collection Efficiency of Waste Water % 100 0
Network
4 Adequacy of waste water treatment % 100 0
capacity
5 Quality of waste water treatment 100 0
6 Extent of reuse and recycling of treated % 20 0
waste water
7 Extent of cost recovery in waste water % 100 0
management
8 Efficiency in redressal of customer % 80 0
complaints
9 Efficiency in collection of sewerage charges % 90 0
 Solid Waste Management – Median Analysis
S.no Indicator Unit Benchmark Median
Value
1 Household level coverage of Solid Waste % 100 47.5
Management services
2 Efficiency of collection of municipal solid % 100 70
waste
3 Extent of segregation of municipal solid waste % 100 10
4 Extent of municipal solid waste % 80 67.5
recovered/recycled
5 Extent of scientific disposal of municipal solid % 100 20
waste
6 Extent of cost recovery in solid waste % 80 4
management services
7 Efficiency in redressal of customer complaints % 80 65
8 Efficiency in collection of user charges % 90 30
 Strom Water Drainage – Median Analysis

S.n Indicator Unit Benchmark Median

o Value
1 Coverage of Storm Water Drainage % 100 60
Network
2 Incidence of water logging/ flooding Number 0 3
Service delivery gap

or… here?

“BEST IN CLASS” -> TARGET

or is performance here?

Performance at present ?
 Hours of service: India

Availability (hrs.)
24.0 24.0
24.0

20.0

16.0

12.0

8.0 5.6

4.0

0.0
Overall Average International International
Developing Developed
 No city in India has continuous water ...
Cities LPCD Hrs. of Water supply
Goa 341 8
Mumbai 240 5
Delhi 220 4
Agra 220 4
Hubli-Dharwad 124 3
Ajmer-Pushkar 140 1-1.5
Vijayawada 157 4
Hyderabad 162 2
Surat 195 2-3hrs
Nagpur 200 4
France 156 24
UK 135 24
Kaula Lumpur 132 24
Colombo 119 24
Dakar, Senegal 90 24
Jakartha 80 24
 Why is Intermittent Supply Bad?

Problems caused by an intermittent water supply:

1. Risk to Public health

2. Reduction in life of assets

3. Inconvenience and economic loss to citizens

especially the poor

Continuous supply avoids these problems

 Pressurised Water Reticulation System

No ingress of Constant
sewage/groundwater into contamination of
the potable supply system groundwater
while pipeline is from sewage
pressurised and/or leakage

Connection to
Water Main

X
Water meter

LEAKAGE

Mixture of Sewage
& Groundwater

Source : WSP
 Water Reticulation System : No pressure

Connection to
Water Main

X
Water meter

Mixture of Sewage
& Groundwater
 Water Reticulation System : Re-pressurised

Connection to
Water Main

X
Water meter

Mixture of Sewage
& Potable Water
 Impact on urban poor

Urban poor suffers the most

under intermittent supply
regime
Health costs
Loss of wages
Social problems
 Benefits vs. Hours/Day

Health Benefits

0 24
Citizens’ dissatisfaction

Problems caused by an intermittent water

supply:

household economic improvement

restricted
customer inconvenience/high coping costs
 Total Cost of Water =
(To the Consumer)

Price per liter +

Coping Costs
– Storage costs plus
– Pumping costs (pump + POWER) plus
– Water Treatment costs plus
– Labor costs plus
– Medical Treatment costs
 6
Coping costs are significantly
large;

Poor pay lot more in relation to

their income.
 Burden of Disease

In India, 80 % of Disease and Sickness are Due to

Water Borne and Water Related Diseases

- WHO
Infant Child Mortality
Infant Mortality Ratio (2003: Urban)
60 55 55 55
53
49 49
50

38
40 36 35 34 34 33 32 31
30 24

20
10
10

Bihar

India
Haryana

Punjab
Rajasthan

Gujarat

Kerala
Karnataka
Tamilnadu
Orissa

West Bengal
Madhya

Assam
Pradesh

Pradesh
Uttarpradesh

Andhra

Maharashtra
Source: The Times of India, Hyderabad, 22nd February, 2008
Is the goal of continuous water
supply for all, feasible and ever
achievable in our towns?
 Towns/Cities that have recently
achieved Continuous Water Supply

Bangkok, Thailand Kuala Lumpur,

Malaysia
Phnom Penh,
Cambodia Tashkent, Uzbekistan
Vientiane, Laos
Jakarta, Indonesia
Manila, Philippines
Colombo, Sri Lanka
Ho Chi Minh, Vietnam
Chengdu, China Kampala, Uganda
Shanghai, China Dhulikhel, Nepal
Male, Maldives
IS THERE ENOUGH WATER ?

YES!

45
Hr of supply and LPCD
City Lpcd Hours of supply

Hyderabad 167 1-2 hr

Bhubaneshwar 280 4-6 hr

Bhopal 156 2 hr

Trivandrum 170 ~ 24 hr

Ludhiyana 130 12 hr

Pondicherry 135 10 hr

Amritsar 90 11 hr

Rajkot 100 20 min

Belgaum (pilot) 90- 100 24 hr

Source : SLB, ASCI, MoU

 International experience

Singapore – 150 lpcd – 24/7

Few African cities – 40-70 lpcd – 24/7 (less
pressure)
Malaysia cities – 130 lpcd – 24/7
UK (Severn Trent region) – 130 lpcd – 24/7
India – 2 hr supply – 24/7 leakages
ARE 24/7 WATER SUPPLIES FEASIBLE IN
INDIAN CITIES?

YES!
If:
• non revenue water is reduced significantly
• customer consumption is managed
(including wastage)

48
Service Level Benchmarking

Non Revenue Water

80
73
69.5
70

59.5 59
60 57.8 57
52.8 52.7 52.4
51 50
50 45.9 45.8
44.1
42.5
40 38 37.1
34
31 31 30
30
24.3 23.7
20.4
20 18.2

10 6
2.5
0

NRW percentage
 Waste of Water

Lost Water =
Lost Revenue =
Lost Water
Water Treated
At Water Plant
 Water Balance
1 2a 3a 4a 5a 6a
Billed &
Billed & Metered
Revenue Collected
Authorized
Water
Consumption 4b
Billed & 6b Un-
Authorized
Un-Metered Collected
Consumption
3b 4c Un-Billed & 5b 6c
Un-Billed Metered
Authorized
Consumption 4d Un-Billed &
Un-Metered
Water
Produced 2b 3c 4e
Theft
Non-
Apparent
4f Customer Revenue
Losses Meter Errors Water Un-Billed
4g Data Errors
Water Losses
4h Storage
3d
Leakage NRW
UFW Real
4i Transmission
Main Leakage
Losses 4j
Service
Connection
Leakage
Supply side management
 Supply side strategies

Price signal
Metering and volumetric
billing
Awareness
 Impacts of Different Rationing Systems
Impacts Hours per Day Price Rationing

Health XXX ☺☺
Equity XX ☺☺
Total Cost X ☺
☺
Water Requirements
x
☺
Energy efficiency
x
IS IT EXPENSIVE TO MAKE
THIS TRANSITION?
Readiness for Change..
 Karnataka – 24-7 Water
PPP (Management Contract)

Management contract for 24x7 water supply in pilot zones

in three towns (Hubli-Dharwad, Gulbarga and Belgaum) in
Karnataka
–Project awarded in April 2005 to CGE, a french company
– The private operator is responsible for rehabilitation, O&M of the
water supply system. The assets and staff continue to remain with
the ULB.
–The private operator will improve the quality of service against a fee
based contract.
–Tariff revision is the responsibility of the ULB and would be taken-up
only after demonstration of service improvement.
–The pilot zones serve close to 20,000 households
 Karnataka Project
Objectives

 Demonstrate the faisiblity of

continuous and pressurised water

Gulbarga
supply in 5 demonstration zones
Belgaum
Dharwad  Scale up project for the other Cities
Hubli
based on the lessons learnt from

current project
Bangalore
 Initiate reforms in water and

sanitation sector at the state and ULB

Chennai

level
 KUWASIP
Salient Features of The Contract

 A Performance based Management Contract

 Management fee divided into fixed and performance fee – 60:40
 Performance fee only after achieving milestones for Performance Targets set in the
Contract
 Capital expenditure limited to a maximum ceiling (agreed after three pre-bid meetings)
 If capital expenditure exceeded, Contractor to bear the additional expenditure; Bonus if
saving is more than 25% of maximum ceiling
 Bonus if real loss deductions is below stipulated limit
 Bonus if increase in billed volume is above stipulated limit
 Penalized if minimum stipulated Performance Targets not achieved in time – non payment
of Performance Remuneration
 Termination of Contract if achievement of Performance Targets beyond limits
 KUWASIP
Performance Targets

1) Continuous pressurized water supply – Min. Pressure 6 Mtrs.

2) Reduction in emergency stoppages – 4 emergency stoppages per
year
3) Metering 100% property connections and PF
4) 100% Billing every month on volumetric basis
5) Reduction of water losses – 20 Ltrs. / connection / day / meter by
end of O&M Period
6) System connection requests to be completed within 7 days
7) Round the clock customer service centre
8) Repair leaks appearing on the surface within 24 hours
9) Respond to complaints within a day and redressal within 7 days
 KUWASIP
Institutional organization

Funding agency: Contract

World Bank
Supervision

Indian funding agency:

KUIDFC
Associated organization:
Karnataka Water Supply
Project and Drainage Board
Implementation
Unit

Final beneficiaries:
Municipal corporations of
Operator: . Hubli-Dharwad
VEOLIA Water India . Belgaum
. Gulbarga

5 demo zones Hubli Dharwad Belgaum S. Belgaum N. Gulbarga

 KUWASIP
Contract Structure

Effective Initial Takeover Final Takeover

Date Data Date

FIP
DIP
15w
52w 104w
6w 6w

Preparatory Period A Preparatory Period B O&M Period

(Study & Design) - 21 w(Rehabilitation & Extension (Customer Service & Billing) - 104 w
system) - 58 w

Project duration = 21 + 58 + 104 w = 183 weeks = 42.26 months as per original contract
Project duration = 21 + (58 + 74) + 104 w = 257 weeks = 59 months at the end of the contract
 KUWASIP
Preparatory Period A - Key areas of work

Collect
existing network
information Duration
52 + 6 weeks
Topographic
Survey of the
Demo Zones

Analysis of
Assess Existing network
Customer Survey existing network
water demand model
capacity

Necessity of
Soil & Pipe
replacement of
Sample analysis
existing pipe

Design
Future network Calibration of
new pressure
model future network
Distribution zones

New
Number of
Investment
connections
Program
Draft
Collect Technical
Investment
unit prices solutions
Program
 KUWASIP
Operation & Management of the existing system

Final
Investment Duration
Program 52 + 6 weeks

Pipeline Selection of Implement

Tender Contractor Works

Customer Selection Procure Meet

Meter of Customer Performance
Tender Manufacturer Meters Targets

Install
B&C Procurement
Customized
System IT consultant
B&C Software
 KUWASIP
Adequacy of available water

Volume of water Supplied for 25,295 Connections

40.00
100%
35.00
Volume of Water Supplied(MLD)

30.00
70% 61% of A &
25.00 88% of B

20.00

15.00 A B
C
10.00

5.00

0.00
A- Supply Before 24X7 B- Estimated @ 135 lpcd C- Supply After 24X7
(as on Mar 08) (as per contract) (as on Feb 10)

Per capita water supply:

Before 24x7 : 149 lpcd
Estimated : 135 lpcd
After 24x7 : 100 lpcd
 Karnataka - Pre Project Situation
City Bulk Supply Service Level
in MLD (LPCD)
Belgaum 57 123
Gulbarga 25 46
Hubli-Dharwad 111 123

Sl.N Item description Situation

o before

1 Hours of supply 2 to 6 hrs; once in 3

to 5 days

2 Volume of water 5.8

supplied to demo zone
in Mld
3 Average pressure in 0-5m; very un-
distribution system in equitable
m distribution
4 Number of public 41+41+32+55=169
fountains + Hand
pumps + cisterns +
Bore well with power
pump
5 Customer service Not really existed
 Pre Project Situation

73
 Impact (Output and Outcomes)
Sl.No Item description Situation before Situation after
1 Hours of supply 2 to 6 hrs; once in 3 to 5 days 24 x 7
2 Volume of water supplied 5.8 5.4
to demo zone in Mld
3 Average pressure in 0-5m; very un-equitable 6-22m
distribution system in m distribution
4 Number of public 41+41+32+55=169 Zero; all customers
fountains + Hand pumps are provided with
+ cisterns + Bore well individual
with power pump connections with
meters
5 Customer service Not really existed 24 x 7 customer
service center

Health Benefits (As quoted by the Lady Medical Officer, Belgaum Corporation Maternity Hospital ):
Month Year No.of Diseases Diarrhea & Dysentery
April to March 2005-06 402
April to March 2006-07 192
April to March 2007-08 221
April to March 2008-09 177

The above information is validated. Details

 24x7 Pilot Project - Nagpur
Feature
– 15000 Connection including slum
– 10 slum areas
– Population 1.5 – 1.75 lakhs
Contract
– Study, Rehabilitate, Operate contract with Private
operator.
– Penalty /bonus for targets in UFW, Quality,
Customer services and Continuity of supply
 Pilot 24x7 Project :Baseline for
Private Operator
KPI Baseline KPI Target KPI
UFW level The NRW is assessed at 50% UFW below 30% for
proportionate bonus
Increase of volume Volume billed for FY 2006-07 = 21,7 Higher than baselines by
billed compared to MLD on average. 10% for bonus
FY 2007-08 This value shall be used for the cost-
benefit analysis of the rehabilitation
plan.
The baseline KPI for the assessment of
bonus/penalties during O&M will be
based on FY 2007-08 data.
Continuity of 2 to 24 hours depending on the area of 24/7 throughout the zone
supply supply with minimum 2m pressure
at customer tap

Water Quality 63% of samples tested had a residual Residual chlorine higher
chlorine level higher than 0,2 ppm than 0,2 ppm

Time for handling Not applicable Within 3 days

customer
complaints
 Rehabilitation Plan for Pilot 24x7
Replacement of 100% House
service connection & Meters
Replacement of old conservancy
GI pipe
Rehabilitation of Tertiary network
Hydraulic modeling as per Master
plan
Installation of new billing system
Customer Facility centre
 Visible Project Benefits
 Water Supply Hours
 Water supply hours was increased from 4.30 hours to 24 hours
 Water Consumption:
 The water consumption was 440m3/day for a Bajiprabhu nagar with
4.30 hrs has increased to 24 hrs with 504m3/day of water
consumption. With telescopic tariff and billing as per consumption
will reduce.
 Pressure :
 Before conversion the average pressure at consumer water taps
was 2-5 meters and now it reaches to 10-12 m. It resulted in to
energy saving for consumers as water reaches directly to overhead
water tank.
 Quality:
 The continuous pressurized network has avoided the contamination
of water from leaking House service connections which were
replaced under this project.
City Wide Scale up
 Estimated Cost and Funding
Total cost – Rs 387.86 crores
JNNURM funding (50%) – Rs 193.94
crores
Govt. of Maharashtra (20%) – 77.57 crores
Private sector (30%) – Rs 116.35 crores
 PPP Approach
 The PPP approach aimed at BOT/Lease
Concession for 25 years
 Private operator would undertake
necessary investments for system
upgradation and operates and maintains
the system
 KMDA
Water supply cum sewerage project at Nabadiganta Industrial
Township Authority (NITA) area –
–Development of water supply and sewerage system through PPP
–Technical parameters for water supply and sewerage components
specified
– Lowest water-cum-sewerage charge per KL set as the financial
parameter
– Concession period set at 30 years
– Evaluation by a team of independent experts
– Grant support of 35% from JNNURM funds
–Awarded to JUSCO and Voltas Consortium SPV
– Bulk water supply from KMC to the project SPV at Rs. 5 per KL. NITA
will make land for reservoir, STP and pumping station available free of
cost
– Project SPV will charge Rs. 25 per KL from industrial consumers and
also charge Rs. 10 per sq.ft as connection charge
Operation and Maintenance of Water Supply System
through Public- Private Partnership (Navi Mumbai
Municipal Corporation)
City Profile:
• Navi Mumbai, a twin city of Mumbai Population 5.37 Million
• Area 108.6 sq km is
• population is around 12 million
• main economic activities in the area are industry, commerce, IT,
services

Situation before the Initiative

1. Navi Mumbai corporation was managed by multiple agencies, which
resulted in delay in the services. treated sewage was discharged into
the nearby watercourses
2. lack of accountability and an inefficient water supply system.
3. lack of co-ordination among these agencies
4. no system for communication and registering of complaints.
5. Lack of preventive maintenance and delays in repairs led to frequent
breakdown of works.
Project Details:

1. Expert committee was appointed to study all the functions of O & M

works
2. Expert committee set benchmarks for the O & M of water supply of
NMMC. ‘Scope of work’ and ‘Bonus and Penalty clauses’ were defined
for performance-based O & M contract. provision of penalty was made
for inadequate performance and there were incentives for excellent
performance
3. Based on these conditions, performance-based O & M contracts were
invited , work was awarded to the contractor for a period of three years.
4. NMMC combined all functions of O&M works into a single contract to
make the contractor responsible for entire water supply works. This
initiative enabled the production of a single bill of O&M work of water
supply every month and reduced paperwork significantly. NMMC
officers has adequate time for contingency planning, 24 X 7 water supply
planning, MIS etc
Results Achieved:

1. Performance based O&M contract has proved to be economical and

more effective in Terms Of Quality and Service of water supply.
2. Reduced water born diseases
3. The corporation has earned indirect revenues through reduction in water
wastage, illegal connections, water theft, power bills, break down of
electrical components and mechanical machinery
4. The maintenance costs of motor and pumps reduced to 65%.
5. 80% reduction in complaints regarding water pressure.
6. Reduced paper work by computerizing all accounts
7. corporation has achieved 88% bill recovery and its annual revenue
increased from Rs.44 crore to Rs.55 crore
 24-7 Water initiatives
Hubli Dharward, Gulbarga etc
Latur
KMDA, Mysore, Nagpur
Navi Mumbai
In pipeline
– Udipi
– Greater Hyderabad
– Madhurai, Salem
– Coimbatore
– Chandanagar
 24-7 Malkapur
Small towns context – 30,000 population
Designed for 24-7 water supply
Connections to all
100 % metering - AMR
Awareness generation
Pro poor policy
24-7 water with pressure
Continuous water supply initiatives in India
2002/3

None
Continuous water supply initiatives in India
2008

~63
Key Discussion Areas
 Discussion - Format
Formation of four groups
Each group will discuss three leading
questions + any other question relevant to
the case
Discussion time – 30 min
Report back – 30 min
Wrap up
 Group 1
– Is 24-7 urban water supply desirable ?
– What are the advantages of 24-7 water
supply regime?
– What are major constraints/challenges
for achieving 24-7 water supply in urban
areas?
 Group 1 : Myths about Water
Supply

1. 24/7 Water is an Unnecessary luxury!

2. It costs too much and the Poor can’t afford

it.

3. 24/7 Service requires too much water!

Would you agree?

 Group 2
Is water a social good or economic good?
What are the implication of this for 24-7
water supply programme?

Do the benefits of 24x7-water-supply also

qualify as key considerations of ‘equity’?
 Group 2

24-7 water supply programme often invokes these

questions :
Metering is bad, tariffs will go up
Privatization
Job loss
Will benefit the rich at the exclusion of poor
Social good
Will benefit one zone at the cost of other areas
 Group 3
 Given what you have known from the case study,
what more would you say needs to be known and
assessed about the KUWASIP-24x7-water-supply-
initiative that if it were to be adapted / replicated –
by you - imagining you were in Azim’s position?

 If the context that obtains in your State(s) applies

to Azim’s State, what would you suggest to Azim
about inviting PSP in 24x7-water-supply to
households? What are the equity considerations
you’d want to be specially considered in this
regard?
 Group 3
Is Azim’s thinking regarding water supply
being entrusted to a para-statal right?
Shouldn’t ULGs be looking after this
function? What kind of informed and
scientific decision making is required to
ensure that a holistic approach water and
sanitation management is adopted? What
would you suggest Azim do about making
informed decisions?
 Group 4
 What do you think are the options for levying a
charge on 24x7 water supply? What would you
say should be the core considerations for
appropriately pricing it?

 If you were entrusted with the responsibility of

implementing a 24x7 water supply scheme in a
town / city, what key aspects of the existing 24x7
water supply initiatives (or other water supply
projects) would you think need to be studied (or
studied further) so that your understanding of the
various issues and challenges improves?
 Group 4
Is PPP is the only way to achieve 24-7
water ?

Why public sector cannot deliver 24-7

water supply? What needs to be done?
Accelerating 24-7 Water Supply
 Lesson 1

Continuous water supply

results in public health
improvement
 3 Myths about Water Supply

1. 24/7 Water is an Unnecessary luxury!

2. It costs too much and the Poor can’t afford

it.

3. 24/7 Service requires too much water!

 Lesson 2
Institutional reforms

Separation of roles

– Policy
– Service delivery
– Regulation
 Lesson 3
Demand / appetite for 24-7

– Political leadership

– Community

– Staff
 Lesson 4
Investment in distribution improvement
should precede source augmentation

Leaking bucket syndrome

 Lesson 5
PPPs are viable in urban water and sanitation
sectors
Performance based management contracts to
begin with

Goal of PPP is for service delivery

improvement and not for laying infrastructure
 Lesson 6
Organizational capacities – very
important
 Lesson 7
Communications and consultations are
important components of reforms – before
and during implementation
IEC is different from strategic
communication
Often neglected or taken up to deal with
crisis
Internal communication and external
communication
 Misinformation

Metering is bad, tariffs will go up

Privatization
Job loss
Will benefit the rich at the exclusion of poor
Social good
Will benefit one zone at the cost of other areas
“Delhi Jal
Board ko
videshi
company ke
haatho bechne
ki saazish ko
nakam karo!
Akhri saas tak
sangharsh”
 Lesson 8
 Service delivery to the
poor should be an
integral component of
reforms programme
particulary PPP

 Connection cost is a big

barrier to the poor and
should be removed.

 Delinking land tenure and

water and sanitation
service
 Cost recovery and Tariff
Issues
Subsidies are essential
Rational tariff with clear and transparent
subsidies
Billing and collection efficiency
improvement shall precede tariff
rationalization
 India Advantage
Fastest growing telecom market
2 m new telcom subscribers /yr
3 m graduates, 7 lacs PG, 1500 PhDs/y
> 100 of Fortune 500 companies have setup
R&D centres in India
Glob Eco Survey – India is the sixth fastest
growing country in terms of construction
Forex reserves $ 105 b
India’s Insat – among the worlds largest
domestic satellite comm system

No city with continuous water supply