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    Water and Sanitation Utility Services: Reform, Regulation and Competitiveness

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    Urban Community of Practice
    Dr. Cormac McCarthy, Director of McCarthy Strategy & Management Ltd. presents the different types of reforms that are necessary for the WSS sector in order to be able to support development of competitive cities. The need for properly structured utilities are important for competitive cities as well as the role of PPPs, what Asian cities need to do to attract PPP, and why WSS regulatory and policy frameworks are important. Examples from Scotland and Saudi Arabia are given to show how to go forward.

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    Water and Sanitation Utility Services: Reform, Regulation and Competitiveness

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    Urban Community of Practice
    35 views7 pages
    Dr. Cormac McCarthy, Director of McCarthy Strategy & Management Ltd. presents the different types of reforms that are necessary for the WSS sector in order to be able to support development of competitive cities. The need for properly structured utilities are important for competitive cities as well as the role of PPPs, what Asian cities need to do to attract PPP, and why WSS regulatory and policy frameworks are important. Examples from Scotland and Saudi Arabia are given to show how to go forward.

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    Water and Sanitation Utility Services: reform, regulation and competitiveness

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    Dr. Cormac McCarthy, Director of McCarthy Strategy & Management Ltd. presents the different types of reforms that are necessary for the WSS sector in order to be able to support development of competitive cities. The need for properly structured utilities are important for competitive cities as well as the role of PPPs, what Asian cities need to do to attract PPP, and why WSS regulatory and policy frameworks are important. Examples from Scotland and Saudi Arabia are given to show how to go forward.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    35 views7 pages

    Water and Sanitation Utility Services: Reform, Regulation and Competitiveness

    Uploaded by

    Urban Community of Practice
    Dr. Cormac McCarthy, Director of McCarthy Strategy & Management Ltd. presents the different types of reforms that are necessary for the WSS sector in order to be able to support development of competitive cities. The need for properly structured utilities are important for competitive cities as well as the role of PPPs, what Asian cities need to do to attract PPP, and why WSS regulatory and policy frameworks are important. Examples from Scotland and Saudi Arabia are given to show how to go forward.

    Copyright:

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    Reform, Regulation and Competitiveness Dr Cormac McCarthy

    Reforming WSS Service


    Management Focus Scale of operations Core service area, Hub & spoke, clustering Regulation Legal & Governance Issues Funding Models & Tariffs Coverage, connection, regularisation & collection

    Regulation
    Key Elements
    Statute, contract or ad-hoc Technical/Environmental vs

    Issues
    Healthy tensions Industry capture Assymetry of information Efficiency targes Approving Capex programs

    Economic Regulation Economic

    Incentive or Profit cap Full or partial cost recovery

    Voice of the Customer


    Customer Voice Economic Regulator

    EPA

    Structures for competitiveness


    Potable Water supports: Local entrepreneurship Foreign Direct Investment Public Health Environmental Protection supports the above and: Corporate/social responsibilty Water Cycle Comparative competition & benchmarking

    institutional structure of Scottish Water is outlined below:

    Internal & External Structures


    Managing Director Executive Support Customer Services & Billing Monitoring and Evaluation

    Operations Services

    Finance

    IT & MIS

    Human Resources

    Asset Mgt, Engineering

    Marketing & Comms

    Parliament/ Municipal Council Ministers/ Mayor Drinking Water Quality Regulator

    Environment Protection Agency

    Water & Sanitn Utility

    Economic Regulator

    Customer Voice Commitee

    PPP
    Options
    Management Contracts Operation & Maintenance DBO Leasing Concession BOT/DBFOM

    Encouraging PPP
    Overall country & sovereign

    risk Transparent, objective, predictable & independent regulation Independent revenue streams (tariffs levels and setting) Baseline levels of service & quality of information Preliminary capex & quick wins

    Examples of Reform
    Scotland
    1996 move from 10

    Saudi Arabia
    National Water Company Regulator Rolling program to take over

    municipalities to 3 water authorities 2002 Scottish Water


    Regulation

    40% efficiency within 4-5 yrs Higher standards of service Competition for large users

    major cities Use of management contracts Quick wins programs Detailed preparation city by city

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