1. Water supply in small towns : Of associations & advisors in Mali

2. Small towns –are either rural settlements that can informally manage their water supply, or small urban centers with systems that require a more formal mode of management ; –sufficiently large and dense to benefit from the economies of scale offered by piped systems –but too small and dispersed to be efficiently managed by a conventional urban water utility. –In Mali, small towns range in population between 2 000 and 20 000 people ; the systems require an autonomous source of power

3. A tale of six towns The ws systems in six towns were rehabilitated in 1996 after 10 years of de facto community management –Diesel generators ; concrete water tower ; standpipes and house connections –Associations created in each of the 6 towns: Bankass, Douentza, Djenné, Kangaba, Koro, Nara –A management advisory unit (CCAEP) was set up within a project funded by KfW

4. Estimated consumption (litres / day / capita)

6. To explain this success… What Legislative changes and institutional set up Performance indicators Working principles and the paradox Prospects for scaling up

7. Management advice Financial audits Sharing role & resposabilities State level Asso- ciations Private sector Local authorities ownership Major repairs O&M The CCEAP was created as part of a pilot project ; and there are ongoing efforts to privatise it.

8. Management, operation, and regulation You've got –a mayor, – manager & –a mechanic. The CCAEP is mandated by the State to assist User Associations (UA) ; UAs pay them 0,03 Euros per cubic meter of water produced CCAEP UA

9. CCAEP A management advisory unit (MAU) Daily contact using short wave radios keeps the client- consultant relationship alive. Production data is relayed to the MAU ; if need be a seasoned mecanic is on hand. This is not a maintenance contract. The MAU does not perform repairs but responds, at a distance and in real time over the radio, to the querries of pump operators. Conducts technical training for the plumbers and mechanics, and management training for the executive members of the WUA. Audits the accounts twice a year making performance indicators available to the WUA, governement staff and to local governements.

10. State Budget Sale of water Local contribution Aid & credit Feasibility studies Rehabilitation Construction Operation & maintenance Extension Management Renewal Monitoring Debt servicing Cost sharing agreement Tariff Cost sharing

13. How to account for this Less wastage of fuel and overpricing Fuel has ceased to go astray ; bills no longer bear an inflated price ; timely preventive maintenance makes the engiens run more smoothly Optimising use of production capacity: –People consume water more days in the year ; –or more water per day per person ; –or people abandon alternative sources and a greater number of people buy water from the piped system

14. has cut down-time from several days to several hours & reduced the cost of repairs –a large number of breakdowns are solved over the radio –spare parts can be ordered and courriered by bush taxi to the WUA avoids false billing and theft of savings Paying professionals to provide timely advice & financial control

15. Year end results per town (euros) Year end results (euros)

16. The paradox an additional charge of 20 fcfa/ m³ of water produced has reduced the per unit cost of production (on average for 9 small towns, over 5 years) the cost of producing water has gone from from 0,65 to 0,30 euros –despite a 50 % devaluation in 1994 –inflation estimated @ 5% –i.e. in real terms, by a factor of 4

17. Per unit cost of production (average for 6 towns) Savings related to good management

18. Lower per unit costs through Preventive maintenance and tight financial control spreading fixed costs over a larger volume of water. –On average, the quantity of water produced has increased sixfold over five years. –Selling all that water makes better use of existing capacity and helps pay for fixed capital costs. –On a per unit basis, the portion allotted for fixed cost is reduced and total per unit costs drops below the price people pay.

19. Safeguarding savings Savings are safely tucked away and protected against fraud and mishaps –Closing the books every 6 months –Double signature on accounts Savings are sufficient to cover the cost of all electric and mechanical equipment with a life span of less than 8 years

20. Preparing for private sector involvement The CCAEP is being privatised –but not without the resistance that go with a shift in power –without a sufficient number of potential clients –without a clear status that will allow it to carry out its monitoring mandate (a state responsibility)

22. But unpaid water bills remain a problem! Outstanding charge to be paid by type of user (in 1000 FCFA)