Thursday, 24 September 2015

Water Supply through PPP

  • Why in news?
    • The Centre has initiated work on a model framework for reforming the management and supply of water in urban areas. The move, which seeks to attract private players in the provisioning of water, would be a significant reform. 
  • Status:
    • According to a 2014 World Bank report, water is available for just 4 hours on an average in urban centres, with many cities actually getting supply every alternate day.  
    • utilities are ridden with inefficiencies and leakages. 
    • 20 per cent of connections are metered, 
    • while no revenue is collected on over 40 per cent of water supplied in most cities.
  • Benefits:
    • bring down non-metered connections and revenue leakages
  • Solutions: (can be used in any question)
    • government must first make a correct assessment of the investment required in any PPP water supply project. 
      • In the past, inadequacy of such data has upset the calculations of private players and reduced their incentive to participate. 
    • Second, agreements between stakeholders should be designed to ensure clear accountability for non-performance. 
    • Ideally, there should be more than one service provider in any given area, which can be done by enforcing infrastructure-sharing or even spinning off backbone pipelines into separate entities. 
    • Last, the reforms need to be backed with effective articulation of the benefits, especially to consumers and civil society groups, without whose support the project may lose out.

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