THE ROLE OF THE REGULATOR IN SERVING THE URBAN POOR- ZAMBIAN EXPERIENCE PRESENTED BY KASONGE WATSON LUMBA NWASCO, ZAMBIA

Water supply and sanitation in Zambian towns 46% 54% 10 Million 70% low income area 3 Million 9 Public utilities 33 Local Authorities 6 Private

REGULATING WATER SUPPLY PROBLEM OF WATER SUPPLY SECTOR IT HAS LESS SCOPE OF COMPETITION MONOPOLISTIC BEHAVIOUR

NO REGULATION MAY LEAD TO LACK OF INVESTMENT IN APPROPRIATE TECHNOLOGIES HIGH TARIFFS DESCRIMINATION AGAINST THE POOR COMPROMISE IN SERVICE QUALITY EXTERNAL INTERFERENCES

Institutional set-up of Regulation - Water + Sanitation ACT - Statutory Instruments Power and Responsibility Arbitration Arbitration - MEWD - High Court LargeAutonomy - Statutory not ministerial body - Own budget from fees - Transparent selection of staff - Private sector salaries - Reports to Government / MEWD - Board 14 Directors - Personnel 13 - Fees 1% provider turnover - Water Watch Groups Small size Lean Structure

Licensing of providers Tariff negotiation Enforcement notices Guidelines on Provision of services Incentives - Penalties Comparative publication Extension to peri-urban / DTF Enforcement tools for regulation

THE CHALLENGE POSED BY THE URBAN POOR DEMAND FOR SAME QUALITY OF SERVICES THEY ARE IN THE MAJORITY (about 50-70% of the urban population in Zambia) THEY LIVE IN UNSTRUCTURED LOCATIONS THEY HAVE MANY ADVOCATES(e.g. politicians, pressure groups, Ngos) DISPARITIES IN INCOME DISTRIBUTION

POSSIBLE SERVICE PROVIDERS TO THE URBAN POOR LOCAL AUTHORITY PUBLIC UTILITIES DONOR/NGOS AGENCIES (Financing& Implementation) PRIVATE OPERATORS (SPP, IMC)

Strategy in Servicing the poor Providers have to offer sufficient adequate outlets Kiosk – commercialized public stand posts Defining service area in the license/ jurisdiction of local authority Extending service delivery into low income areas is integral part of investment plan from providers Provider remains responsible for quality and tariffs of other players (NGO, communities) within licensed area

NWASCO’S OTHER AVENUES FOR ENSURING THE POOR ARE SERVED LOBBY GOVERNMENT TO GIVE TAX INCENTIVE TO OPERATORS SERVICING THE URBAN POOR (classify water providers in zero rated class for VAT, exempt from import taxes, reduced electricity bill) ADVISE GOVERNMENTS IN STRUCTURING PSP AGREEMENTS ASSIST POLITICIAN IN UNDERSTANDING ISSUES AFFECTING THE SECTOR

THANK YOU VERY MUCH FOR YOUR ATTENTION