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by Chandani Jayatilleke

Should the water management sectors in developing countries be handed over to the private sector in order to increase the efficiency in water supply and distribution institutions?

This issue was discussed extensively at a recent workshop organised by the Asian Development Bank (ADB) in Manila, Philippines. The workshop was attended by academics, representatives, non-governmental organisations and journalists from Asia.

Privatisation was out of the question because the participants opted to argue the pros and cons in such a process and how difficult it would be for the poor and the poorest, if Asian governments decided to privatise their water management institutions. And why water management was the next question.

The group suggested that the water authorities in Asia should be given autonomy status by governments in order to increase efficiency in managing the aggravating water supply problems.

Autonomy does not necessarily mean privatisation of the water sector. Governments should free water management institutions from their dictatorship and also stop using these institutions as dumping grounds for their henchmen.

The need for civil society to engage and get involved in policy, making process in water management was widely discussed.

"There is a need for civil society to become effective partners with Governments in the policy, making process at national, regional and local levels to assist the government in implementation, to keep the public appraised of these policies and monitor the policies' implementation," the participants noted.

In Asia's cities, there are between 90 to 100 million poor people who lack access to safe water and sanitation. If the Millennium Development Goals of cutting by half the number of people in the world with inadequate clean water and sanitation by 2015 are to be achieved, civil society will have a major role to play.

Civil society brings a collection of unique skills to the table. NGOs are good at identifying problems and initiating action; academics are good at analysing problems and journalists are good at creating awareness of issues. It is a pertinent mix which can play a vital role in driving forward sustainable and well-managed urban water policies.

There is a need for civil society to become effective partners with the Government in the policy-making process at national, regional and local levels; to assist Government in implementation; to keep the public appraised of the policies and monitor the policies' implementation. Civil society must be a key factor in all stages of pro-poor water management processes - not just the representatives of civil societies such as NGOs but the poor themselves. Civil society needs to take a less fragmented approach and interact in a more united voice to be more effective and gain more respect from the organisations they are lobbying for.

Water awareness education is another issue that was widely discussed. Water awareness will have a greater effect with a more united voice.

There should be greater incorporation of water issues and values in the school curricula, the setting up of non formal educational processes for those outside the schooling system and the establishment of public information centres to ensure that everyone has access to relevant information.

The participants agreed that a balance and understanding need to be found between the social and economic concerns over water supply. While realising the value of water as a fundamental human right, it is also important to understand that a full cost recovery policy of investment in water supply does require tariffs.

Many participants said that governments should take on the costs of free water supply through standposts to the very poor and if there are tariff increases, they should be systematic.

Water management in Sri Lanka

The principal authority for the provision of safe drinking water in Sri Lanka is the National Water Supply and Drainage Board (NWSDB). The board operates 269 major and minor water supply schemes through which 24.2% of the population is served with pipe borne water. Studies by NWSDB have revealed that there would be a water shortage in Colombo in the immediate future and action is being taken by the Government to address the impending water shortage in Colombo.

The present supply of water to the Greater Colombo areas from its three main sources is 585,000 cubic meters per day. If the demand is 490,000 cubic meters then why a shortage in 2002?

The water shortage is due to very high water losses. The NWSDB is billing only for 65% of its present production. Even though 135 mg is produced NWSDB bills only for 88 mg per day. The difference between the production and billed quantity is commonly known as non-revenue water. The 35% nonrevenue water component can be categorised into the following main areas: Leakages - 23%, Non billed tenement gardens and stand post - 4%, Illegal connections - 4% and Administrative losses - 4%. For administrative purposes Greater Colombo water distribution is divided into four major areas.

They are Colombo city, Towns South of Colombo, Towns North of Colombo, East of Colombo. As at June 30, 2002 there were 332,000 connections in the total Greater Colombo area. Of this 85,000 connections were in the Colombo city area.

Even though overall Nonrevenue water for Greater Colombo is 35%, the figure for Colombo city is a staggering 53%.

The breakdown is leakages - 25%, tenement - 15%, illegal connections - 8% and administrative losses - 5%.

However, out of a total production, only 77% is being used while the remaining 23% is wasted. In terms of revenue, only 65% of the water generates revenue while the rest 12% is being supplied without revenue.

Under these circumstances reduction of leakages and wastage is indispensable to reduce the need to develop more expensive water resources, reducing the cost of water and expanding the potable water supply.

Deputy General Manager (Finance) NWSDB Premakumar Fernando said that in order to address these issues and to satisfy the required amount water evenly and effectively, new thinking and strategies are necessary in terms of demand and management and control of waste.

"One key area we should concentrate on is on per capita domestic consumption. The present consumption average is 140 lpcd. Through consumer awareness and appropriate tariff structuring this could be easily brought down to 100 lpcd. In 1995, in many of the Colombo households, the lpcd was in the region of 200. Through tariff structuring this figure is around 140," he said.

At present, domestic tariffs are set well below cost recovery and they are heavily subsidised by non-domestic tariff and through Government grants by way of capital subsidies for new water supply schemes. For urban water supply schemes such as Greater Colombo, the government provides a considerable subsidy of the foreign loan component and a 100% subsidy on local component of funds.

The Water Board's current consumer billing rates are 10 units at US$ 0.6, 20 units at US$ 1.1 and 30 units at US$ 4.3. The Non domestic consumer is charged US$ 0.4 per cubic meter.

ADB's vision on water

According to the Asian Development Bank, water is an economic commodity. The bank not only considers water as an economic commodity, but also advises governments and civil society on the need to see water as an economic commodity.

How many of us would agree with this opinion is a question. But, civil society and other stakeholders must be more proactive and unified in tackling urban water supply problems in Asian countries.

ADB's perspective on water issues derives from a review of lessons learned from previous experiences in the sector, the distillation of good practices in the region and elsewhere and in the current context. The ADB has intervened actively in the water sector and financial projects for irrigation, drainage, flood control, water supply and sanitation, hydropower, fisheries, forestry and watershed management and navigation. Over $15 billion or about 19 per cent of its total lending has been invested in water sector projects.

ADB's water policy is premised on the Asian and Pacific region's urgent need to formulate and implement integrated, cross-sectoral approaches to water management and development. It seeks to promote the concept of water as a socially vital economic commodity that needs increasingly careful management to sustain equitable economic growth and to reduce poverty.

The conservation and protection of water resources in the region through a participatory approach are the main subjects of the policy.

The water policy includes the principal elements such as promote a national focus on water sector reform, foster the integrated management of water resources, improve and expand the delivery of water services, foster the conservation of water and increase system efficiencies, promote regional cooperation and increase the mutually beneficial use of shared water resources within and between countries, facilitate the exchange of water sector information and experience and improve governance.

* Augmentation of present Ambatale

Treatment Plant to produce additional 10 MGD (45,460 cubic meters) US$ 4 million

* Kaluganga project

13.5 MGD (60,000 cubic meters) US$ 84 million

* Kelani Right Bank Project

40 MGD (181,000 cubic meters) US$ 33 million

All these projects and a salinity barrier on the Kelani River to allow saline-free abstraction will be commissioned between 2002 and 2009. Based on the consumption pattern the daily average demand for the Greater Colombo water supply area is:

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