Why Do Water Sector Public-Private Participation Projects (PPPs) Fail?

I found a recent paper from the Department of Civil and Environmental Engineering at the Hong Kong University of Science and Technology that I believe is excellent primer on water sector Public-Private Participation (PPPs).  Although there are many types of PPP, it is sometime challenging to find papers on this topic that are not ideologically biased for or against private sector participation in the water sector. I’ve always believed that water PPP debates are really missing the point.

This report reviews 16 PPPs over the past 25 plus years and lists the following main reasons for failure:

  • Rising Tariffs
  • Lack of Bill Payment/Collection
  • Insufficient Public Sector Capacity
  • Private Sector Technical Capacity Gaps
  • Macroeconomic Instability
  • Exchange Rate Instability
  • Public-Private Sector Conflict
  • Social or Political Opposition to PPPs.
  • Lack of Transparency
  • PPP Legislation or Enabling Environment Issues

I’ve researched many PPP successes and failures (including doctoral-level study on the water utility in Dar es Salaam, Tanzania), and found this report to have fair and reasonable characterizations.  I’ve found that affordability of connections and water, sanitation, and hygiene (WASH) sector enabling environments to play a large part in the failure of water sector PPPs.

What are your thoughts on this?

water, cities, political economy, governance, access to water

Apples and Oranges: Acknowledging Intra-Urban Complexity of Access to Water, Sanitation, and Hygiene (WASH)

I recently read an excellent paper on comparisons of infrastructure within cities (as opposed to the more frequent between/among city comparisons that are made in both the academic literature and the policy world.  As someone who appreciates water policy discussions at the intersection of academia and the real world, this was an enjoyable read.

In this paper, Colin McFarlane, Jonathan Silver & Yaffa Truelove discuss some of the factors within Delhi, Cape Town, and Mumbai that drive access to infrastructure services.  Many of these factors come as no surprise to a human geographer- political connections, gender, religion, ethnicity, class, and income.  Inequality of access within a city is certainly what I saw in my doctoral research in Dar es Salaam. In fact, I have seen situations in my hometown of Everett, Massachusetts (Greater Boston) where the ability of local businesses to contest chronically overcharging of water and sewer bills is dependent upon favoritism and access to the right people in the city public works department.

So, what are the implications for the real world?  

I believe that water, sanitation, and hygiene (WASH) professionals should look to this “radical shift”  that was recently highlighted on the World Bank’s Water Blog that calls for the policy world to think about WASH within the context of urban governance and city-level service provision, address issues of accountability and transparency, improve supply chains, train city leaders, and provide clear roles and responsibility.  

This is, of course, not an easy endeavor, not only due to weaknesses in the factors above, but also since city-level leaders in many countries still operate in a very centralized power structure in which ministry/cabinet-level decisions dominate.  What I see, therefore is a disconnect- between the need for local accountability and transparency in service delivery and the decentralized and empowered municipal governments who would be able to do this.

I’d love to hear your thoughts and experiences on this.

water, sanitation, hygiene, WASH, USAID

Urban Redevelopment and Water in the Boston Area: Giving a Voice to the Mystic River

As far back as Mesopotamia, cities have developed along rivers.  Water that once fed the industrial revolution has been polluted for over a century, but sparked by voices like Rachel Carson in Silent Spring, water and environmental quality have bounced back over recent decades.  Waterfronts and nature will always call humans to them, for recreation and for less polluting land uses, let us hope.  This is where urban redevelopment comes in.

What I would like to talk about is this tiny sliver of waterfront, the intersection of Boston and three of its suburbs – Everett, Somerville, and Medford.  These four cities meet at the Mystic River, a river that has brought the area economic growth, but has the pollution to show for it.

What I would like to suggest is that the cities ‘pay back’ the river for its service, to bring it closer to its cleaner past.

While each of these cities, to some extent or another has had its share of industrial growth, I would like to focus on Everett.   Everett, a 2.5 square mile, often maligned inner-ring suburb of Boston, is home to a largely lower income working class population that recently decided to allow the redevelopment of a large section of waterfront that was once the home of a Monsanto chemical plant.

While the redevelopment of polluted urban lands should normally be met with applause, this plan has been met with extraordinary, grinding resistance, largely due to two issues– first, the fact that this area will be redeveloped as a casino (Wynn Resorts) and second, that this, like any other development will have an impact on traffic in an area where the geography (a narrow bridge over the Mystic forms the border between Everett and Boston) already makes vehicular traffic difficult.  [The casino has just been given the go-ahead, but my feelings about this have not changed]

While I will not detail the excruciating and bitter, endless drama that this development has brought on (this would take forever), I am summarizing the categories of resistance and making an argument that the missing stakeholder from this discussion has been the river itself.

On top of the numerous and repeated referendums and the strict licensing has followed, the talk of this casino has been imbued by paternalistic moralism about gambling.  This has been the idea- largely from people outside of the City of Everett-that the presence of gambling is bad for the poor and vulnerable residents of Everett and that, others’ (non-residents’) paternalistic perspective on what is good for the people of Everett should override both the state’s and the city’s approval of the development.  This is a bit much, in my view.  Having said this, safeguards for some of the social and economic externalities of gambling are fine (resources for potential gambling addicts, etc.).

The other concern is essentially a mixture of understandable mitigation and, to some extent plain old NIMBYism. There has been resistance to the project by adjacent cities because of traffic.  This is very understandable, and numerous adjacent city agreements and mitigation plans have been negotiated.  This is a good thing- this is cooperative planning.

What has been missing from this discussion of the redevelopment along the river is the voice of the Mystic River. Redevelopment that remediates polluted land and water is good, and this is a major opportunity for an economically disadvantaged community to improve the environmental health of its waterfront.  Otherwise, the land and water will stay polluted and dilapidated.  

In the management of cities and natural resources, rivers need to have a voice.  

They cannot speak.  Sometimes we must speak for them.

water, sanitation, hygiene, WASH, USAID

What’s Behind Rio’s Water and Wastewater Woes?

On top of the Russian doping scandal and the Zika virus fears,  the world has become shocked and worried by the water quality situation for the upcoming Summer Olympic games in Rio De Janeiro.  Numerous articles have come out with jarring statements like the following:

 The first results of the study published over a year ago showed viral levels at up to 1.7 million times what would be considered worrisome in the United States or Europe. At those concentrations, swimmers and athletes who ingest just three teaspoons of water are almost certain to be infected with viruses that can cause stomach and respiratory illnesses and more rarely heart and brain inflammation …”

There are both bacterial and viral water issues.

Recent news reports have shown the level of fecal coliform colonies to be 400 per 100 milliliters (ml.), which is more than ten times the EPA standard of 35/100 ml. for marine water swimming.  (As an other guideline, the WHO states the risk of gastrointestinal illness for swimming in water with levels of  40 /100 ml. to be approximately 1%).

On top of the bacterialogical concerns is the issue of viral pathogens.  Ninety percent (90%) of sites tested in a 16 month long study in the waters around Rio De Janeiro found the presence of viral pathogens called bacteriophages (viruses that infect bacteria).  Although there is no water quality standard for these pathogens, they are associated with human illnesses such as gastroenteritis.

The sources of this problem are well-known.  Rio’s Guanabara Bay is the recipient of nearly endless amounts of untreated wastewater and solid waste and local canals pass through unhygienic “favelas” (shanty towns) and industrial areas.  This problem, as WaterAid has recently rightly stated, should be put in context of a global set of urban water and wastewater challenges, and should be a call to action to improve health in Rio and similar cities across the globe.

What I would like to suggest in this post is that this problem exists and persists not just because of the real challenges of urbanization, economic development, poverty, urban planning, technology, and costs, but also due to government priorities and a lack of accountability to citizen demand to address this problem.    

For example, while early plans at the time of the awarding of the Olympic games to the city, slated for the development of seven waste treatment plants, only one was built.  Other solutions have also been suggested, including numerous dredging and waste picking/reuse projects and the development of constructed wetlands, but very little of this has materialized.  Mismanagement and bureaucratic infighting has been an issue, but so have protests in the informal settlements/favelas of the city about evictions and resettlement in advance of the Olympics.  Even more worrying is a recent Bloomberg report of the murder of Executive Coordinator of the Environmental Sanitation Program for the Guanabara Bay Area (this is something so bad that I do not care to speculate further on this).

These problems, this neglect, and conflict, rooted in class and economics, certainly existed before the run-up to the Olympic games, and aiming to paper over the extraordinary challenging economic and environmental problems in the city during the time of the Olympics is shameful.  Forced displacement is before the Olympics is unfortunately not rare, as we saw this ahead of the Beijing games.

With a backdrop full of chaos that includes a nearly impeached president, a bankrupt state government,  and most recently, protests of the Olympic Games themselves, it is critical to take Rio De Janeiro’s corruption and government accountability challenges seriously when asking what’s behind their water and wastewater problems.  It would be real progress if the spotlight on these social and environmental challenges led to serious improvements, but, in order to do so, we cannot forget that environmental problems are social and environmental problems.

 

What are your thoughts on this?

water, sanitation, hygiene, WASH, USAID

Seeing WASH Trends – Thoughts on the IRC 2016-2025 WASH Trend Report

As a WASH researcher who has read more project and program evaluations than I care to admit, I find it to be a rare pleasure to read a broad sector trends analysis document that can see the forest for the trees.  The IRC Trends Analysis, 2016-2015 report is such a report.  While I do have specific critiques of the report, it does a solid job of outlining major trends that will have major effects on access to water, sanitation, and hygiene services for the under-served world. Briefly noting trends in economic growth and inequality, urbanization, water scarcity, governance, the aid landscape, domestic finance, information and communication technologies (ICT), persisting service and access gaps, and service delivery models, this report both acknowledges progress and future needs.  Some of my criticisms are really not criticism of approach per se, but criticism of detail.  If anything, I believe that each section warrants its own analysis.

In terms of economic growth, I think it’s critical to develop further an emphasis on economic growth and inequality. Anyone who has ever lived in a developing country city has seen the stark differences between how the middle and upper classes live and how the other half (more than half, really) live.  What’s really needed is a discussion that goes beyond country-level statistics and Gini Coefficients and the identification of specific ways in which interventions that build wealth at the lowest rungs of society and reduce inequality can improve access to water, sanitation, and hygiene.  Case studies of successful informal settlement upgrading and tenure reform are clearly relevant here. Research papers from Plan International and the World Bank Water and Sanitation Program (WSP) have noted the importance of tenure to sanitation, for example.

Urbanization is a clear trend that this report rightly identifies, as it is a pronounced trend in the poorest countries of the world.  While one can debate whether limited funds in a given country should be focused on the areas of lowest access (rural areas, generally) or towards the areas of most rapidly increasing need (urban areas), I think that the linkages between rural and urban areas can provide some insight.  For example, one perspective on household income and ability to improve rural household sanitation infrastructure (an idea I heard while doing sanitation sector research at the WSP last year) is the idea of harnessing urban-rural remittances– in the cases where children of existing rural households have moved to the city and can help their parents fund latrines or other sanitary improvements at their rural home.

I found the section of water scarcity to be a bit too simplistic for its usefulness.  Water at the scale of agriculture is quite different conceptually from drinking water.  The narrative of water scarcity is all too often mischaracterized at the level of most advocacy messaging.  The Malthusian notion of not enough water for too many people is misleading when the realities are more driven by inefficiencies, mismanagement, and misallocation.  Reliable access to water has more to do with effective utilities, accountable governmental provision, and affordability in public and private supply regimes.  Poorly managed water resource management at the national or basin level is another ball of wax.

The section on governance is one that I feel had some thoughts in the correct direction, but would need a whole lot more detail.  [I admit to being biased, as I did a PhD on water governance.]  I believe that one must start with the notion embedded in most basic conceptualizations of water service delivery models for the poor (the 2004 World Bank World Development Report, for example) that affordability and accountability are central to any discussion of water governance.  Simply citing a country-wide Democracy Index or even the more useful Corruptions Perception Index is way too simplistic.  I would make the argument that government decentralization and the effective regulation of the private sector are the most effective starting points when discussing what sort of water governance regime exists in a given country.  One great recent example of such a discussion is by Johanna Koehler at Oxford.

Additionally, I feel that the topic of information and communication technologies (ICT) can be linked to discussions of both management and governance, as the collection of data on infrastructure is step one.  Governments and other actors responding to these identified needs is the second step of any monitoring plan.

I believe that this report did hit the topics of aid effectiveness and utility finances pretty well.  The authors rightly pointed to an overall them of short-term goals and programming that often resulted in a lack of long term effectiveness.  Poor tariff collection and the difficulty to finance rural WASH initiatives are perennial challenges as well.

In summary, I find these sorts of trend analysis exercise to be useful.  I would love to see broad lessons in both individual program evaluations and sector analyses acted upon, but these are challenges of a much greater scale.

water, sanitation, hygiene, WASH, USAID

Do Urban Africa and Asia Need (Good) Sprawl?

I recently read an article in the Economist that made the argument that, given high rates of current and future urbanization throughout Asia and Africa, what is needed is good and orderly sprawl, in which rights of way are planned out and property rights are upheld and landowners are compensated for development of public ways.

I found this article to be quite simplistic and, to some extent, misleading.  Furthermore, it seems to ignore realities of infrastructure and the populations served by it.

“Sprawl” and any sense of order (“It would be vastly cheaper and better to do sprawl properly from the start.“) are antithetical, since sprawl is seen as unplanned and growth and order is order.  Since comprehensive planning takes too long, the article asserts, the main roads and parks, at minimum, have to be planned.  If the roads are being planned, is the resulting development even considered “sprawl”?

What’s most striking in this article, however, is the implicit focus on the likely (very) small percentage of the new urbanites who would be served by planned communities and the dismissive tone towards doing anything within the existing unplanned areas:

In some unplanned African suburbs as little as 5% of the land is road. Even middle-class districts often lack sewers and mains water. As for amenities like public parks, forget it.”

What I am confused by is the complete giving up on existing unplanned settlements inside or outside the city center. Is it good policy to just ignore both the poor unplanned and the middle-class unplanned districts simply because these areas have poor roads and do not have sewer or water?  I find this to be completely wrongheaded, when regularization of tenure, upgrading or roads, extension of the water utility through relatively low-cost kiosks, and improvement of sanitation options in existing dense areas make a lot more sense than focusing just on new suburban developments for a small fraction of the anticipated urban population.