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Jochem Jantzen, Director TME tme.nu/english/Arm_Steering_Committee.htm

National Policy Dialogue on Finance Strategy for Rural Water Supply and Sanitation Armenia: Developing Policy Package Yerevan 2 July 2007. Jochem Jantzen, Director TME http://www.tme.nu/english/Arm_Steering_Committee.htm. EAP Task Force. Structure of presentation.

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Jochem Jantzen, Director TME tme.nu/english/Arm_Steering_Committee.htm

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  1. National Policy Dialogue on Finance Strategy for Rural Water Supply and SanitationArmenia: Developing Policy PackageYerevan 2 July 2007 Jochem Jantzen, Director TME http://www.tme.nu/english/Arm_Steering_Committee.htm EAP Task Force

  2. Structure of presentation • Baseline scenarioconclusions • Activities • MDGs (Poverty Reduction Strategy Paper) • MWSS (Minimal Water Supply Standards) • Combined approach • Institutional(cross subsidisation) • Conclusions EAP Task Force

  3. Activities • Collection of additional information for settlement without service of Water companies Financial issues (expenditures, water tariffs, budget contribution) Water supply (piped water? type of connections, regularity, amount of water), Sanitation (pit latrine, septic tank, sewerage) • Additional information of Water Companies • Develop POLICY SCENARIO(S) EAP Task Force

  4. Conclusions, Baseline scenario • Infrastructure development in rural areas (±50% on plot supply, 100 villages without public supply, sanitation not developed) • Revenuesfor rural water supply and sanitation are not sufficient (user charges and budget contributions) • Institutional issues (2/3 of rural settlements NOT served by water companies, no possibility for cross subsidisation) • Affordabilityno problem for most rural households (at current charge levels) EAP Task Force

  5. POLICY scenarios Several Possibilities: Future targets based on: • Millennium Development Goals for rural WSS • Minimal Water Supply Standards for rural WSS • Combinedapproach EAP Task Force

  6. WHO Water Supply Standards (1) EAP Task Force

  7. Millennium Development Goals (MDGs) • Millennium Development Goals for rural WSS (official) “improved supply”: > 20 lcd < 1 km or 30 min roundtrip Current supply ± 45 lcd At least 75% served within 100 meter • Poverty Reduction Strategy Paper, rural WSS: • On plot supply 70% (now ±50%) • 24 hour regularity EAP Task Force

  8. Millennium Development Goals (MDGs) • Poverty Reduction Strategy Paper: 45% on plot supply (2001) to 70% on plot supply (2012) • At least 100 lcd supply (our proposal) • Consequences for sanitation (septic tank / sewerage needed) EAP Task Force

  9. Minimal Water Supply Standards (MWSS) • Minimal service level for water: 50 lcd • Maximal 100 meters from dwelling • Preferably regular public supply (8 hrs/d) • At least “protected” (own) supply EAP Task Force

  10. Combined approach (MDGs & MWSS) • On plot supply 45% to 70% • On plot supply: 100 lcd, MWSS: 50 lcd • Maximal 100 meters from dwelling • Preferably regular public supply (8 hrs/d) • At least “protected” supply • Consequences for sanitation (septic tank / sewerage needed) EAP Task Force

  11. Summary of possible POLICY scenarios • MDG targets for rural WS • MWSS for rural WS • Combined MDG and MWSS for rural WS EAP Task Force

  12. Institutional set up <> cross subsidisation • Large cost differences: € 2 >> € 20/cap/y Average costs per cap EAP Task Force

  13. Institutional set up <> cross subsidisation • Without cross subsidisation, affordability will limit possibilities of reaching targets • (National) regulator should: • Force settlements to cooperate and establish Water companies • Give incentives to settlements to cooperate and establish Water companies by Financial incentives EAP Task Force

  14. Conclusions and further activities (1) Proposals for further quantitative analysis • Simulate the 2 out of 3 scenarios MDGs(PRSP), MWSS MDGsandMWSScombined • Within scenarios: Apply “average” approach Illustrate “cost-effective” approach (partial simulation) EAP Task Force

  15. Conclusions and further activities (2) Summary of quantitative targets EAP Task Force

  16. Conclusions and further activities (3) Proposals for further qualitative analysis Propose “business model” which can overcome the problem of too small service areas (if all settlement would solve problems individual) “Solidarity for Water” (i.e. French concept): regional water utilities with uniform tariffs and “cross subsidisation” EAP Task Force

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