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CHAPTER 2: LITERATURE REVIEW

2.2 The Traditional Approach of Providing Rural Water Supply

2.2.4 Private-Public Operation & Maintenance (PPOM)

The other model of management incorporates both the public and the private sector, this approach has four key principles: water supply is owned by the user community; users finance operation and maintenance; the private sector ensures maintenance, repairs and functionality (Masdugi et al., 2007); and the public sector is responsible for private sector regulation and provides subsides. The PPOM can be rolled out in two formats namely; the total warranty scheme or the water assurance scheme.

Total Warranty Scheme

The hand pump manufacturer Vergnet piloted the Total Warranty concept in the 1990s on 75 water points in Mauritania, supporting and training local enterprises, with users paying an annual contract fee. The government role was one of regulation. After two years 60% the villages had paid and 20% had paid half (Wateraid, 2009). The cost recovery rate was low where systems were not operating suggesting that dissatisfied users are more likely to display behaviour that would not sustain the water facility.

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The Water Assurance Scheme (WAS)

Although similar to the Total Warranty Scheme, WAS provides safe and accessible water regardless of the technology involved. Rural communities pay a monthly premium to a private company, regulated by local government. The company provides maintenance, water monitoring and repairs. WAS has been applied in Kenya and has considerable potential, especially where community management is ineffective.

Private Ownership, Operation & Maintenance (POOM)

Privately owned water systems have clear responsibility and incentive for O&M and can also be sustainable. This model attempts to highlight the fact that ownership, and operation and maintenance go together.

Private ownership of water systems

In Bugiri, Uganda, water has been collected from a privately owned borehole since the 1950s. It is repaired promptly since the owner makes no income when the pump is not working. Local households pay US$0.03 per 22 litres of water. This approach may have limited applicability but should not be dismissed out of hand. POOM is based on the following key principles; the water supply is owned privately; the user community pays the owner for water; and the public sector ensures price regulation. The simplest POOM model is when the water system is owned by an individual within the community. This role may also be performed by a private company.

Hand pump Lease Concept

In Lubango, Angola, the local water company owns hundreds of hand pumps, while the communities own the boreholes or wells on which they are installed. Each family pays the pump caretaker an affordable monthly amount, half for the pump caretaker’s salary and half paid to the water company. Some hand pumps raise $240 per year, half of which goes to the water company. The average maintenance cost of only US$30 per hand pump per year, gives the water companies a healthy profit. POOM can be self-regulating, as water users will not pay excessive costs.

Advantages over community management

Alternative private sector management models have a number of advantages over the community management model but they are not always more effective. The choice depends

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on the local context. For maximum sustainability, more than one approach should be considered.

Option Advantages Disadvantages

VLOM

(Village Level Operation and Maintenance)

Fast initial response Community control Community pride

Needs motivation Needs local skills/tools Access to spare parts PPOM

(Public-Private

Operation and

Maintenance)

Access to spare parts Skills/resources provided Community choice

Higher cost

Slower response times Active regulation required POOM (Private Owned Operation and Maintenance)

Access to spare parts

Clear ownership/

responsibility

Skills/resources provided Incentive for rapid repair

Lack of ownership High initial cost to owner

Regardless of the management model being used consumers are key for success of every model (Rogers & Hall, 2003). In literature above consumers are requested to contribute towards financing operation and maintenance. Apart from mentioning the desired behaviours from the consumer like willingness to contribute finances and other things none of these management models is explicitly laying out the approach that will stimulate the consumer in doing their part of sustainability success. The models demonstrate the intention to ensure that the service of providing safe water to the consumer is continuous and not disturbed for the design life period of the facility.

In summary, literature have three models; the Community Management Model, the Private Management Model and the Private Public Management Model. It is normal that models have advantage and disadvantages. Nevertheless literature has emphasized that sustainability is possible when local communities are strengthen and supported to be managers of their own development. Ownership and acceptance are a prerequisite for sustainability and community management model perfectly does that because the model Table 2: Advantages and Disadvantages of Various Options of Rural Water Supply Management Models.

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allows for community participation and involvement. If the challenges affecting community management model could be managed then community management model could be a simple approach with far more potential of ensuring sustainable rural water supply systems than the other models of approach.