1. Beyond Utility Reach? Addressing services in rural areas
Susanna Smets, Snr Water Supply and Sanitation Specialist
Danube Water Conference, May 2017

2. Universal access remains a challenge in many countries of the Danube region
Out of all the population in the 16 Danube countries

3. Inequalities mostly concern the urban-rural divide driven by poverty
As well documented, most of those without access live in rural areas and inequalities are driven by poverty-levels especially in countries as Moldova, Romania, Ukraine, and Albania.
State of the Sector, Danube Water Program (2015); data from
National access to piped water services, in percent

4. A seven-country study to better understand various service delivery models and self-supply in rural areas
Analyze service provision beyond utility reach – although not always!
Recommend pathways to improve service level and access in rural areas
Around 10 month ago we embarked on a regional study to better understand the service delivery in rural area and the various ways countries are addressing the challenge of services in rural areas. Several countries are soley addressing this challenge through regionalization of larger multi-municipality utilities, through integration – either voluntary of in a mandatory way of rural areas in service areas of public areas. At the same time in some countries programs exist – or used to exist in the past – that targeted specific rural and poor communities (e.g. Social Funds), although such programs often lacked adequate institutional embedding in the context of decentralization.

5. Is Rural Different?.. A global analytical framework to consider conditions for sustainability service provision
To inform our study, we used a global analytical framework developed by the World bank that consider the five main building blocks that shape the conditions for sustainability (builds on work from IRC/Aguaconsult)
It considers that country context and overall sector governance are key aspects. It recognizes the relevance of the three institutional levels: national enabling environment, service authority (legal mandate for service provision, an the level of atomization of local government), as well as the service provider level, characterized by a variety of management models that are typically found in rural areas. It is interesting to note that in none of the 7 countries, although hundreds and sometimes 1000s of rural operators were reported to be present, data was available to understand which share of the rural population was served through which type of service provider

6. Report by end of September 2017
A wide variety of management models could be found across the seven countries
Methodology: service level outcomes, satisfaction, performance and conditions for services
Institutional review and secondary data
Primary data (focus on regions) - random but non-representative sample
Local governments: per country
Water supply operators: per country
Households - connected and not connected: per country
Rural localities from around people
Different management models:
Community based management – formal and informal (avg. 450 con)
Direct local government (avg. 650 con)
Small municipal enterprise ( avg. 800 con)
Private operator (up to 1000 con.) – very few in sample
Regional or urban utility – stand alone systems
Regional or urban utility – connected systems
Preliminary findings going through data validation and further consultation with country stakeholders:
Albania, Croatia, BiH, Moldova, Ukraine… Kosovo and Romania data entry in process
Report by end of September 2017
Explain the methodology and the process of data validation; local government survey data not yet analyzed and operator data also need further validation; a few snap-shot findings to be presented to inform the debate and follow-up presentations of other speakers

7. Household perspectives on water supply services

8. Consumption levels and tariff indicates ability to pay in rural areas under different service provider models
Actual water consumption and payment – as per invoices
Kosovo includes management models: regional/urban standalone, and regional/urban connected, as well as “community management” (to be taken on) Romania includes regional/urban stand-stand alone, and small municipal operator
Age of assets is similar across countries and management models (> years old on average)
Note: Albania: schemes (in transition) managed by previous commune structure considered “direct local governments; schemes implemented by Albania Development Fund considered “community-based management while in transition

9. However metering and billing practices by local service providers have shortcomings
Percentage of household that have a metered service and receive a formal invoice?

10. Service hours under local management models are adequate but with service outages… and utility-managed stand-alone schemes problematic
Household reported hours of supply and estimated number of days with service outage over the past year
Albania as outlier
Note: Albania: schemes (in transition) managed by previous commune structure considered “direct local governments; schemes implemented by Albania Development Fund considered “community-based management while in transition

11. Local service provider do a good job in customer outreach – regional utilities managing stand-alone schemes less responsive
Percentage of household reported to be at least somewhat satisfied with service provider complaint handling and information sharing
This may aso be driven by higher expectations of professional utilitis
Note: at least somewhat satisfied are people that rated their satisfaction 3 or higher on a scale from 1 to 5

12. Operator practices
System age in similar range across countries and management model (> years old)
Local service provider models with typical connection range from ; urban/regional utilities 10,000 and above

13. Accountability relationship between rural providers and local governments shows room for improvement
Percentage of service providers that have signed a service agreement with local government and have contracts with customers
By local
Note: data for Albania and Croatia in verification

14. Basic Asset Inventories are mostly absent for rural providers, except for private sector and utilities
Percentage of service providers that state they have an updated asset inventory
By local
Note: data for Albania refers to practice of the municipal company taking over the scheme; assets have been recently identified (mostly not yet transferred)

15. Reporting on technical and financial data is limited for local service providers – urban utilities lack data for their stand-alone systems
Percentage of service providers that could provide basic information on water produced/sold, and on revenues/costs
By local
Note: Croatia and Albania to be verified

16. Community-based services providers hardly get external support, followed by small private and municipal enterprises….Urban/Regional utilities have best access to such services
Percentage of service providers receiving some form of external support or assistance in past two years
Most support is provided by local governments as first point of call, for utilities also utility associations were mentioned

17. Water quality surveillance by external entities does not adequately cover local water providers, and internal quality monitoring practices are weak
Percentage of service providers that reported to have at least annual water quality monitoring by external public health agency, and by themselves
This is dropping down when ask for more frequent monitoring; operators that could demonstrate a tes-report is very low; compliance data being checked
Note: Croatia and BiH to be verified

18. Local Government Perspectives
Mobilization of finance
Support received for WSS mandate
Assistance to service providers
Service agreements and regulation

19. What do we know about self-supply by households?

20. Do self-suppliers want to connect
Do self-suppliers want to connect? …Yes mostly, but affordability of connection fee and network presence are key barriers

21. High private well ownership - limited water quality testing and low levels of household-level treatment..
What does this mean for SDG ; what does this mean for EU compliance DWD

22. Sanitation.. A new frontier for rural areas?

23. Even in rural areas with water systems access to flush toilets is variable and access to sewer limited
this is not the national level data; but important to understand for what else we found out about these households' sanitation situation

24. How is emptying done, if at all
How is emptying done, if at all?...Large share does not get emptied…mechanical practices are common-place

25. Emptying carried out by households and unregulated private sector – absence of utility / public service

26. Already regular emptying and household payments indicate opportunities for fecal sludge management
Payments for collection only - disposal and treatment will likely require subsidies
For those that carry out emptying payments equate around Euro 2/month

27. Key issues we will explore in depth
What are the benefits and challenges of integration of rural systems within larger utility companies? Good practices?
What complementary approach can accelerate rural service provision, when integration/regionalization is difficult/slow?
What can be done to strengthen local service providers and local governments in rural areas?
What policies can help to mitigate the risks of self-supply?
What sanitation services may fit the reality of rural areas? How to advance rural sanitation?

28. Thank You