Model Terms of Reference

Mainstreaming Small Scale Private Water Piped Network Providers
Outline For Consulting Services

www.adb.org/water

May 2006

TABLE OF CONTENTS

A. Background B. Objectives C. Scope D. Methodology D1. Rapid Diagnostic Surveys D2. Stakeholder Consultation and Registration Procedure D3. Financing Structure and Mechanism D4. Materials and Standards D5. Bidding Documents, SSPWP Appointment and Contract License Award D6. Monitoring System E. Implementation Schedule F. Human Resource Inputs G. Financial Resources H. Reports Appendixes 1. 2. 3. 4. 5. Questionnaire for Water Utility Questionnaire for SSPWP Piped Water Operators Questionnaire for SSPWP Water Vendors Questionnaire for Bottled Water Suppliers Questionnaire for Customer Survey

A. Background
1. During 2002 and 2003, the Asian Development Bank (ADB) carried out regional studies 1 on small-scale private water providers (SSPWPs). The objectives were to (i) provide an overview of urban water suppliers beyond formal water utilities, (ii) increase knowledge about the type of services provided by SSPWPs, (iii) define the profile of the most significant SSPWPs, and (iv) assess the main constraints on and potential of SSPWPs. The studies were carried out in Dhaka, Bangladesh; Shanghai, People’s Republic of China (PRC); Delhi, India; Jakarta, Indonesia; Ulaanbaatar, Mongolia; Kathmandu, Nepal; Manila and Cebu, Philippines; and Ho Chi Minh City, Viet Nam. 2. The results were published by ADB in 2004. 2 The studies concluded that city officials, city water utilities, and local banks should work with small network entrepreneurs who can bring water supplies to the poor and disadvantaged immediately, on an agreed interim basis until the water utility is able to do so. These small networks should be included in city development strategies and formalized with licensing and exit strategies and takeout agreements. Minimum standards should recognize risk and payback requirements. Enabling legal and contractual conditions should be created and small operators should be integrated into the water supply chain as much as possible. Finally, the study concluded that ADB should join with two or three cities to test and refine these recommendations during 2005–2006. 3 3. In the Asia and Pacific region, some 570 million people still need to receive improved water supply and about 1,820 million people still need to receive access to improved sanitation to reach the

Millennium Development Goals (MDGs). 4 To achieve the MDG targets by 2015, many developing member countries (DMCs) acknowledge that it is important to reach Target 10 on water and sanitation by 2010, because the economic impact of improved piped water supply on health and education is significant. 5 While ADBsupported projects in some DMCs, for example Phnom Penh in Cambodia and Dalian in the PRC, have achieved 24-hour water supply, many utilities in other DMCs have low levels of coverage. At five persons per connection, the effective water supply coverage with piped connections in 2001 6 was 10% in Dhaka, 32% in Ho Chi Minh City, 31% in Jakarta, 32% in Manila, and 46% in Delhi. People who are not connected often pay water vendors about 15% of their household income for delivery of water, buying water from their neighbours at inflated cost, or getting water from standpipes or stand-posts where they only have access to water for a very short time each day and have difficulty transporting it to their homes. 4. The following are typical situations for the poor and those living in peri-urban areas: (i) utility unable to provide services because community is illegal or has no land rights; (ii) the utility is in the area, but for political or financial reasons chooses not to supply services or to limit them to standpipes/stand-posts; (iii) due to limitations on source and water availability the utility prefers to supply more affluent areas where the financial return is greater/easier or there is strong political influence; (iv) the cost of a utility connection is so high and the terms so inflexible that poor people cannot afford to connect to the piped water network. 5. In all cases, the core issue is getting connected to piped water promptly and on terms affordable to those living in peri-urban areas, especially the poor. Once connected, people are likely to pay only 1–2% of their household income for piped water. The implementation issue therefore is to find mechanisms that will be flexible
UN Millennium Project. 2005. Investing in Development: A Practical Plan to Achieve the Millennium Development Goals, New York, 2005 estimate in Table 9. 5 Every $1 invested in improved water supplies and basic toilets is expected to result in $3–$34 return in terms of savings in health costs and more time at work and in school. Source: World Health Organization. 2005. Water for Life–Making It Happen. WHO. 6 McIntosh, Arthur C. 2003. Asian Water Supplies–Reaching the Urban Poor. ADB and IWA.
4

1 The studies were funded under ADB. 2002. Technical Assistance for Promoting Effective Water Management Policies and Practices. Manila (TA 6031). 2 Conan, Hervé. 2004. Small Piped Water Networks: Helping Local Entrepreneurs to Invest. Water for All Series No.13, edited by Charles T. Andrews and Almud Weitz. ADB. 3 Four pilot projects for small piped water networks (SPWNs), and water supply services surveys that will facilitate up-scaling of the pilots, are currently being implemented in three cities in India (Ahmedabad), Philippines (Kabisig and Lupang Arenda in Metro Manila), and Viet Nam (Ho Chi Minh City) under a technical assistance (TA) assignment, following understandings reached with government representatives, potential NGO participants, civil society stakeholders and small-scale water providers (SSWPs). The TA first appeared in ADB Business Opportunities (internet edition) on 23 March 2005.

1

and fast, and will respond to the needs of the people. This is where the role of SSPWPs to provide small piped water networks offers a sound interim solution. 6. In order to address the immediate needs of connecting the poor to piped systems in areas where the formal utility is unable to do so, it is proposed that provision of small piped water networks by SSPWPs be mainstreamed and integrated into both public and private sector loan projects.

B. Objectives
7. The objectives of mainstreaming/ integrating SSPWPs into the design of public and private sector loans are to: (i) legitimize the contribution and role of SSPWPs in the provision of water sector services, even though on a temporary period-limited basis, and focus financial support on delivery of affordable piped water supplies to the poorest members of society; (ii) undertake a rapid diagnostic survey and stakeholder consultation to assess the potential size of the market and the capacity of existing SSPWPs to meet that unfulfilled demand for services, (iii) develop appropriate registration procedures, licenses and Memoranda of Agreement with the Municipalities and formal utilities, under which the SSPWP will operate, (iv) identify a suitable financing mechanism, (v) identify and agree with the relevant authorities appropriate materials and construction standards, (vi) draft suitable bidding documents and templates, including evaluation criteria, in order to encourage transparent competition and to award contract licenses, and (vii) develop an appropriate technical/financial performance monitoring system.

support. Urban water supply and sanitation (WSS) projects, particularly those targeting the poor in urban and peri-urban areas, are typically prepared using only limited socio-economic data on the target “market”, and invariably ignore the role and contribution that these SSPWPs can make in the planning and delivery of municipal services. By mainstreaming SSPWPs and including them in sector loans and rolling programs, and not as standalone projects, their contribution can be optimized, enabling more people to be connected quicker and the formal utility to prepare for the ultimate controlled handover to it of SSPWP small piped water networks (SPWNs). Urban water sector loans should include a component that supports SSPWPs, with part of the loan proceeds being used to finance some or all of the capital investment requirements of the SPWNs. The scope of this PPTA focuses on developing the principles, the structure and the mechanism to access this component of the loan. 9. When preparing a water supply project, it is essential to have as complete information as possible about how all people get water now: what source, what quality, what cost, what consumption and what reliability. By undertaking a diagnostic water service assessment, including non-domestic consumers, all service providers can be identified and data obtained on the target community as follows: • • Verification of the true service coverage, eg 24 hour piped water supply, sewerage, etc. Justification for the registration and licensing of SSPWPs (piped network operators, water vendors, bottled water suppliers, sewerage network operators, septic tank operators, latrine service providers, etc.) Verification of consumer information versus utility records Tariffs from various suppliers What suppliers generate what revenues Who consumes the water Who pays what for water Identification of potential development partners.

• • • • • •

C. Scope
8. Many water utilities fail to provide adequate water service provision to the poor in their areas of jurisdiction, leaving poor communities to fend for themselves, and with many forced to rely on alternative service providers who typically provide a lower quality service at far greater cost than the formal utility. SSPWPs service a significant proportion of the poor in many urban areas, but are not formally recognized and receive little or no formal planning recognition or financial

10. There are five steps leading up to the appointment of the SSPWP piped network operator, followed by a sixth step to cover regular technical performance and financial monitoring:

2

(i) Undertake rapid diagnostic surveys of consumers, the water utility, SSWPs, and analyze the results to assess the size and location of the target market and the capacity of existing SSPWPs to meet the unfulfilled demand. (ii) Hold stakeholder consultation with the target communities, the utility, SSPWPs, local government representatives, NGOs, etc., and develop appropriate registration procedures, including time-bound licenses and Memoranda of Agreement with the Municipalities and formal utilities leading up to ultimate transfer of responsibility for service provision to them. (iii) Develop a financing structure and mechanism appropriate to the local situation. (iv) Identify materials and standards appropriate to the community and the lifetime of the project, and obtain approval from the relevant authorities. (v) Prepare bidding documents including evaluation criteria and procedures, SSPWP appointment process and award contract license. (vi) Develop monitoring system covering appropriate technical/financial performance criteria.

overall responsibility and will personally interview the water utility, analyzing all results and making recommendations. Domestic consultants will be responsible for logistics, briefing and supervising the enumerators undertaking the surveys in the separate geographic areas of the city, and will also be responsible for interviewing all existing SSWPs and pre-testing the sample questionnaires for all the surveys before use. The enumerators will undertake 5% sample consumer surveys in each target community, as well as interviewing water vendors and bottled water suppliers operating in each of their areas. Key questionnaires will be prepared as listed below and will be translated into the local language by the domestic consultant: 1. Questionnaire – Water Utility (Appendix 1) 14. Apart from details of individual customers this will identify the recipients of bulk sales including SSWPs, sub-divisions, homeowner associations, etc. Its focus will be on identifying the water source and for each type of customer (nondomestic, house service connection, standpipe, etc.) the total number of connections, the volume sold per month and the revenue gained per month. It will provide information on production volume versus consumption volume to determine NRW, and will note the extent of 24-hour piped water coverage. 2. Questionnaire – SSWP Piped Water Network Operators (Appendix 2) 15. The questionnaire will seek essentially the same information on every SSWP in each survey area as for the utility except the quality of the service to the customer such as direct connection or hose and drums will be determined. The method and frequency of payment is an important output from this interview. 3. Questionnaire – SSPWP Water Vendor (Appendix 3) 16. If water vendors operate in a given survey zone, then vendors of each type (water tanker, motorized tricycle, pedaled tricycle, rickshaw, pushcart, etc.) should be interviewed by the enumerator to estimate the total number of vendors of each type operating in that zone. Pertinent information sought includes their source of water, means of transport of water, number and

D. Methodology
11. In order to mainstream and integrate SSPWPs into the design of public and private sector loans, the first step is to assess the market potential for SSPWP service provision. Consultation with stakeholders to identify their preferred service delivery options and procedures to formalize the SSPWP service providers is then undertaken, from which the most appropriate financial support mechanism is identified and the monitoring system to control that financial support is developed. D1. Rapid Diagnostic Surveys 12. ADB has prepared a Model PPTA ToR for undertaking a diagnostic city water assessment, and should be referred to for details of the implementation methodology. The following sections therefore only provide a brief overview of the process 13. A series of questionnaires will be prepared by the consultant and surveys undertaken by team members. An international consultant will have

3

type of customers, average distance transported, volume sold and revenue gained. It is important to establish how much the vendor pays at source for the water and to whom it is paid. 4. Questionnaire – SSPWP Bottled Water Supplier (Appendix 4) 17. The enumerator will interview bottled water suppliers in his/her survey zone and estimate their total number and type (for example mixed goods shop, sole purpose bottled water shop, treatment and sale on site, deliveries of bottled water, etc.) in that zone. The focus of the interview is to obtain information about the source of water, type of treatment provided, volume of water sold per month, price paid and the total revenue.

• • • • • • • • • •

5. Questionnaire – Water Consumer (Appendix 5) 18. The enumerator will obtain a 5% representative sample of all water users in his/her zone, identifying those served by the utility, by SSWPs, and surveying them in the numbers proportional to their prevalence. The focus will be on water source (consumers may get water from more than one source), access to water, water quality, reliability of supply, availability of supply, volume consumed per month and cost per month. It is important to record the number of persons in each household. This survey must include a representative number of non-domestic consumers, especially industrial users. 19. The international consultant will undertake an analysis of results and derive basic data, including: • • • • • • Coverage % with 24 hour supply to individual house connection by utility Coverage % with individual house connection by the utility Coverage % including all utility domestic connections and standpipes. Coverage % with piped water in home (all water providers). Average household consumption per month by different sources of supply Average household cost per month by different sources of supply.

Total monies paid by SSWPs at source per month. Average price of utility water. Average prices of SSWP water (network operator, vendor, water bottler). Revenue turnover (a) utility, (b) SSWPs (network operator, vendor, bottled water supplier). Volume of sales (a) utility, (b) SSWPs (network operator, vendor, bottled water supplier). Official NRW figure from utility. Comparison of cost and consumption - piped water versus non-piped water Proportion of utility water volume sold to nondomestic consumers Proportion of utility water revenue derived from non-domestic consumers Comparison of average tariff for utility water: domestic versus non-domestic Proportion of all piped water where utility maintains the reticulation

20. The rapid assessment will focus on those not served with piped water to assess the costs and benefits to them of switching to a piped water supply, as well as the feasibility of doing so through an SSPWP contract. Similar questionnaires would be used for the provision of sanitation services to the poor. D2. Stakeholder Consultation and Registration Procedure 21. Following completion of the diagnostic assessment analysis, relevant key findings will be disseminated to all stakeholders. About two weeks later, a one-day stakeholder consultation will be convened for all stakeholders. The morning would be devoted to presentation of results, analysis of the surveys and discussion of the findings, concluding with an overview of options for the way forward. The afternoon would be devoted to discussion of those options, assessment of technical option preferences and to developing a consensus on, the preferred way forward including the establishment, if considered appropriate, of a stakeholder task force to contribute to and monitor project implementation. The consultation will also guide SSPWP support, enhance cost recovery and institutional development to promote service sustainability, encourage water conservation (including reduction of NRW), and ensure that as far as possible the urban poor are connected to

4

piped water and receive improved sanitation services within their ability to pay. The stakeholder consultation will be facilitated by a domestic consultant skilled in such work, or by a well respected and capable local person. 22. Formal recognition of the SSPWP is required from the municipal authorities and also the formal utility to ensure that the area will not be re-developed or the water services network extended into it for a specified number of years in order to provide security of tenure to the SSPWP. This will enable him to plan with confidence and price his services to obtain an appropriate return on capital during the period of tenure. This could simply be achieved, at least initially, through a simple registration process, but a far superior registration procedure would be to issue a license detailing the area of license jurisdiction, the obligations of each party, reporting requirements and their frequency, periodic audits, remedies for failure to conform to the license, an appeals process and appointment of an independent ombudsman, the license duration, periodic license reviews (if appropriate), exit strategies including ultimately the transfer of responsibility for service provision to the formal utility or extension options at the conclusion of the license period. At the end of the license term the assets will be transferred to the formal utility. A reasonable license fee could be charged to cover administration costs. The terms of the license would also have to be approved by the formal utility, as certain sole service rights would be devolved to the SSPWP through the license that would prohibit expansion of the formal utility network into the license area within the term of the license. It is therefore recommended that a separate Memorandum of Agreement should be drawn up between the SSPWP and the formal utility to cover such issues as: appropriate technical standards and materials (typically less onerous than those imposed on the formal utility and reflecting local conditions), provision of a bulk water supply if appropriate (if licensed by the Municipality, the SSPWP would have legal status and so could become a legitimate bulk consumer of the formal utility) and covering maximum/minimum daily volumes, tariff, metering details, remedial actions in the event of supply deficiencies, periodic reviews (if appropriate), etc. The municipal license and the utility agreement would also safeguard the position of the SSPWP in the event of a regulatory body being subsequently set up to control the

sector or if there was intervention by other relevant sectoral organisations. 23. The license should be a relatively simple document, with bureaucracy kept to a minimum since to require the SSPWP to prepare numerous reports, provide extensive data records, etc., would increase service provision costs (and hence the tariff) and potentially deter bidders from bidding to provide the service. The local consultant, with support from the international consultant, will develop an appropriate license format and a Memorandum of Understanding acceptable to the Municipality and the formal utility, following consultation with existing SSPWPs and potential bidders to ensure that the terms are fair and reasonable and would not unduly discourage potential bidders from submitting bids. D3. Financing Structure and Mechanism 24. This is the key activity to be undertaken by the consultant, as financing of the SSPWP is critical to ensure tariffs can be kept as low as possible so everyone can be connected to the piped system. Because of their currently informal nature, SSPWP access to local capital markets and bank loans is virtually non-existent, with reliance having to be placed on borrowing money from local moneylenders or close colleagues and relatives of the SSPWP, often at extortionate rates. To assist the SSPWP and to provide increased financial security the consultant will investigate various options to determine and develop the most appropriate financing structure and mechanisms for the disbursement, repayment (where appropriate) and monitoring of funds under the loan. Two of the options to be considered are to use part of the loan to lend directly to SSPWPs, or to establish a revolving fund. 25. The consultant will investigate the implications and mechanisms for designating a component of the loan for direct lending to the SSPWP. Special attention will be given to risk analysis, appropriate service and interest rates (in comparison with local informal lending rates, financing costs and service affordability, etc.), disbursement and repayment mechanisms (including any staging of disbursements), term of the loan, and loan monitoring/reporting procedures. Existing loan models will be evaluated during this process to identify key features that will

5

promote the objectives of the PPTA. As part of the risk analysis the consultant will make recommendations on the proportion that the loan funds should represent in comparison with the total capital borrowing requirements of the SSPWPs in order to encourage bidders to develop alternative or matching funding mechanisms, minimise exposure of the loan funds to potential losses on specific schemes, and also to enable more SSPWP schemes to be supported financially. 26. An alternative option to be investigated is to use a component of the loan to establish in each region or city a revolving fund,, supplemented by other funding sources if deemed appropriate, to finance all or part of the capital expenditure of the SSPWP and perhaps with an element of start-up capital for initial operation and maintenance (O&M) costs until revenue streams are established. To reduce risk to the revolving fund and to promote more SSPWP schemes, each SSPWP could be required to source a proportion of its funding requirements from external sources, eg through bank loans or the issue of bonds, to encourage the development of local financial markets. For each case, the financing mechanism must be appropriate for the local situation. The revolving fund would be administered by an appropriate independent organization approved by ADB in the country concerned, for example an experienced ethical bank, the national Chamber of Commerce, etc. The revolving fund would have a broader coverage than direct loans to individual SSPWPs as funds disbursed from therevolving fund would be repaid in due course for further disbursement to other SSPWPs. The fund would therefore provide broader opportunities for SSPWP support and potentially could cover a larger proportion of the city and the unserved population. The consultant will make recommendations on the term of the loan and hence the winding up date of the revolving fund. 27. A local financial consultant, with support from the international consultant, will evaluate different formats for the various loan options, recommend an appropriate mix of funding sources based on local conditions, develop appropriate disbursement and repayment modalities and procedures, and reach agreement with ADB and other donors on fund operation and utilization performance monitoring / reporting.

D4. Materials and Standards 28. The local consultant will propose materials and construction standards appropriate to the community and the lifetime of the project for discussion and agreement with the formal utility for incorporation into the Memorandum of Agreement. For instance, as the excavation and burial of pipelines is expensive, may involve the need to obtain excavation permits, and increases the difficulty to detect leaks, it might be more appropriate to simply lay pipes on the ground surface and secure them. At the end of the license period they would be abandoned as the formal utility extended its reticulation network into the area in conformity with its own standards. On the other hand, reservoirs and pumping stations could be retained for service after the license has expired, requiring the SSPWP to construct them to formal utility standards. D5. Bidding Documents, SSPWP Appointment and Contract License Award 29. One week prior to the issue of bid documents the local consultant will prepare and issue contract adverts for the local press and for distribution within the communities to be served. 30. The consultant will develop an appropriate SSPWP appointment process. It is anticipated that this would require each SSPWP bidder to propose a business plan and a financing plan as part of his bid. The outline procedure for bidding and fund disbursement would therefore be as follows: • Prospective SSPWP bidders develop a business case for their system and formalise it in a business plan detailing population covered, system details, water source, capex, opex, human resource requirements, liaison with the formal utility, indicative tariff (to cover O&M costs, debt repayment and financing service charges), revenue projections, financing plan, etc. Financing plans would take into account the different funding sources and interest charges, etc. Business plans are evaluated by the fund administrators and the licensor (the Municipality) to identify the most attractive and cost-effective bids (evaluation criteria could include cost / household supplied, tariff affordability, proposed repayment period, etc.) or those that met more subjective social policy

6

criteria such as number of poor households that would benefit from the scheme in a particularly deprived area. Prior to signing the loan, agreement would be reached on the disbursement schedule, the repayment schedule and the conditions that would trigger each repayment (repayments could be linked to the achievement of technical and financial targets, such as reaching a revenue collection efficiency threshold, as time alone is an inappropriate criterion for repayment determination since premature repayment could jeopardise the viability of the scheme). Funds could be provided in tranches to the bidder as physical construction targets in the bid program are achieved and matching funds are demonstrated to be in place. Monitoring of physical progress would be required to achieve this, preferably by an independent person or organisation appointed by ADB or the fund administrators. Repayments returned to the revolving fund, if this is the financing option selected, would finance other schemes or extend/up-grade existing ones.

bonds and performance bonds, etc., are not considered to be appropriate. 32. The local/international consultants will make recommendations on how the Evaluation Committee should be constituted, as well as its membership. Terms of Reference, including the evaluation and marking system as well as reporting requirements, should also be prepared by the local/international consultants for the Evaluation Committee. D6. Monitoring System 33. Independent monitoring of the technical and financial performance of the SSPWP to ensure compliance during the term of the license is absolutely essential. In the absence of a formal regulator it is suggested that an independent consultant should be appointed to undertake this monitoring and periodic reporting function, with fees and costs met either through the license fee or, alternatively, from a separate budget within the loan fund. The independent consultant would also report regularly direct to ADB and other loan fund donors on utilization and administration of the fund. 34. The TA local consultant, with support from the international consultant, will design a monitoring and reporting system to monitor the performance of the SSPWP as well as to safeguard utilisation of the loan fund and other sources of finance used by the SSPWP. The system should be capable of distilling SSPWP performance as well as improvements to service provision in the community through the derivation of simple key performance indicators (KPIs) without the need for the collection, recording and analysis of extensive datasets which would only serve to increase bureaucracy and costs. The monitoring system should include the following KPIs, variables data and suggested indicative KPI threshold values (monthly reports should cover items marked *, with those marked ** only reported bi-annually:

31. The local consultant, with support from the international consultant, will develop bidding documents and templates that standardize the details required and the bid presentation format so that bidders can clearly understand what needs to be included in their bids. Bidding documents should be short, simple and clear, be in both English and the local language, and must clearly state what is expected of the successful bidder, how his bid will be evaluated (the evaluation criteria, the weight given to each, etc.), and provide details of the contract license award process. The municipality would then award the license, modified if necessary to reflect bid details, to the successful bidder who would then sign the loan fund agreement. The municipality would not sign a contract with the successful bidder. Bid

7

Key Performance Indicator (KPI)
Coverage** Water Quality* Continuity* Pressure* Non Revenue Water* Revenue Collection Efficiency* Operational Financial Performance** Customer satisfaction**

Data Variables
Population served Population in community Failures only of common tests: chlorine residual, appearance (turbidity and colour), taste/odour Hours of supply at highest point in system (average/month) Pressure at highest point in system (average/month) Water Supplied (m3/month) Water Consumed (m3/month) Revenue billed ($/month) Revenue Collected ($/month) Staff, chemicals, power, materials, and mobile plant Costs Complaints/month Population served

KPI Threshold Value (suggested)
>90% (ideally 100%) <2% failures >18 hours (ideally 24 hours) >5m <20% >90% As calculated (capital repayment and debt servicing estimated from this and revenue collected) <2%

E. Implementation Schedule
Surveys of utility, consumers and SSWPs Clarifications and preparation of results summary Analysis of results and prepare water assessment report Stakeholder consultation and report of findings Development of registration/license procedures Develop a financing structure and mechanism (during license development period) Prepare bidding documents Bidding period, bid evaluations and contract license award Develop monitoring system (during bidding period) Total Implementation Period 6.0 1.0 months 0.5 months 0.5 months 1.0 months 1.0 months 1.0 months 0.5 months 1.5 months (0.5 months) (six) months

G. Financial Resources
Enumerators, consultants, facilitator Local transport Office facilities Stakeholder consultation Reports / communications Total $ $ $ $ $ $

H. Reports and Deliverables:
1. Water Assessment ______________ Report for City of

Date Part A. Summary of Results of Surveys (Domestic Consultants) Part B. Analysis of Results (International Consultant) This two- part report will be due for completion not later than two months after the start of the assignment.

F. Human Resource Inputs
Enumerators (or students) Domestic water supply survey consultants Domestic financial consultant Domestic water supply consultant International consultant Stakeholder consultation facilitator (inc. preparation) 1 person month/community 2 person months/community 1 person month 2 person months 4 person months 1 person week/community

2. Report of Stakeholder Consultation on Water Supply in City of ___________ Date International Consultant This report will be due not later than three months after the start of the assignment.

8

3. SSPWP License and Memorandum Understanding for Community _____ Date Local/International Consultant

of

Date Evaluation Committee International Consultant)

(with

support

from

This report will be due not later than six months after the start of the assignment. 7. Develop Monitoring System for SSPWP Contracts in ___________ Date Local/International Consultant The monitoring system will be due for completion not later than five months after the start of the assignment.

The license and MoA will be due not later than four months after the start of the assignment. 4. Report on Loan Fund Structure, Modalities, Operational and Reporting Procedures for SSPWP Water Supply / Sanitation Schemes in ___________ Date Local Financial/International Consultant This report will be due not later than four months after the start of the assignment. 5. Bidding Documents for SSPWP Water Supply / Sanitation Scheme in _____ Date Local/International Consultant Bidding documents will be due not later than 4.5 months after the start of the assignment. 6. Evaluation Report on Community ___________ SSPWP Bids for

Appendixes
1. Questionnaire for Water Utility (International Consultant) 2. Questionnaire for SSPWP Piped Water Operators (Domestic Consultants) 3. Questionnaire for SSPWP Water Vendors (Enumerators) 4. Questionnaire for Bottled Water Supplier (Enumerators) 5. Questionnaire for Consumer Survey (Enumerators)

9

Appendix 1

14

Name of Water Utility Name of Person who answered this questionnaire 1. Name of City Position

Date

2.

Population in City

3.

Population in Utility Service Area

4.

Population Served by Utility (Direct)

5.

Population Served by Utility (Bulk Supply / Indirect)

6.

Population Served by House Connection

7.

Population Served by Shared Connection

8.

Population Served by Standpipe or Community Tank

9.

Population Served by Utility Tanker

10.

Number of House Connection s

a. Metered

b. Meter Not Working

c. Not Metered

11.

Number of Shared Connections

a. Metered

b. Meter Not Working

c. Not Metered

12.

Number of Standpipes

a. Metered

b. Meter Not Working

c. Not Metered

13.

Number of Utility Tankers

a. Capacity of tankers

14.

Number of Community Tanks Number of Bulk Connection s

a. Metered

b. Meter Not Working

c. Not Metered

15.

a. Metered

b. Meter Not Working

c. Not Meter ed

16.

Number of Connections to Industry/ Other

a. Metered

b. Meter Not Working

c. Not Metered

17.

Number of House Connections with 24 Hour Service

18.

Percentage of Service Area with 24 Hour Supply

19.

Number of Sources of Treated Water for Piped Supply

20.

Production sources metered and working

15
21. % NRW for Utility a. Leakage % b. Mis-Metering % c. Illegal Connection % d. Illegal Sale of Water %

22.

Number of Meters replaced in last 12 months

23.

Total Consumption by House Connection Per Month m3

24.

Total Consumption by Shared Connections Per Month m3

25.

Total Consumption by Standpipe or Community Tank per Month m3

26.

Total Consumption by Utility Tanker Per Month m3

27.

Total Consumption by Bulk Supply to Small Private Piped Water Operators/Vendors Per Month m3

28.

Total Consumption for Municipal Use Per Month m3

29.

Total Consumption by Industry/ Other Per Month m3

30.

*

Total Money Billed Per Month for House Connections

31.

Total Money Billed Per Month for Shared Connections *

32.

Total Money Billed Per Month for Standpipes or Community Tanks *

33.

Total Money Billed Per Month for Utility Tanker Services *

34.

Total Money Billed Per Month for Bulk Supply to Small Private Piped Water Operators/Vendors *

35.

Total Money Billed Per Month for Industry/Other *

36.

Number of new connections installed in last 12 months (domestic)

37.

Number of new connections installed in last 12 months (nondomestic)

38.

New connection fee and terms of payment (domestic)*

39.

Accounts receivable in equivalent months of billing

40.

Number of people employed by utility.

*Please indicate in local currency. NRW = Non-revenue Water =
Production - Consumption % Production

Consultant to independently and randomly check domestic meters (40), industrial meters (10), and accounts on computer (100).

Name of Consultant Interviewer

Appendix 2 for SSWP
Name of Company/Organization if any Name of Person who answered this questionnaire 1. Location of Piped System Position

16

Questionnaire
Date

- Piped Water Network Operators

2. Total Population Served by the System

3. Population Served by House Connections

4. Population Served by Shared Connections

5. Population Served by Standpipe or Community Tank

6. Source of Water

7. Cost of Water at Source $/m3

8. Volume of Water Received at Source m3

9. NRW %

10. Number of House Connections

11. Number of Shared Connections

12. Number of Standpipes and Community Tanks

13. Population Receiving 24 Hour Supply by House Connection

14. Consumption Per Month from House Connections m3

15. Consumption Per Month from Shared Connections m3

16. Consumption Per Month from Standpipes or Community Tanks m3

17. Money Received Per Month from House Connections *

18. Money Received Per Month from Shared Connections*

19. Money Received Per Month from Standpipes or Community Tanks *

20. Water Treatment Provided by the System

21. How Long in Business

22. License or Agreement with Local Authority

□ Yes
* Please indicate in local currency. NRW = Non-revenue Water = Production - Consumption %
Production

□ No

Name of Consultant Interviewer

16

Appendix 3 for SSPWP

- Water Vendors
Date

Questionnaire

Name of Company/Organization if any Name of Person who answered this questionnaire 1. Location of vendor 2. Position Population served by vendor

3.

Population served by tanker

4.

Population served by pushcart/tricycle

5.

Businesses served by vendor

6.

Source of water

7.

Cost of water at source*

8.

Average distance for delivery of water (km)

9.

Volume of water delivered per day by tanker m3

10. Volume of water delivered per day by pushcart / tricycle m3

11. Revenue received per day for water delivered by tanker *

12. Revenue received per day for water delivered by pushcart/tricycle *

13. Number of tankers in your business

14. Number of pushcarts / tricycles in your business

15. Fuel cost per day for power cycles *

16. Fuel cost per day for tankers *

17. Approval of local government

18. License fee to pay *

□ Yes
19. How long in business

□ No
20. Average capacity of tanker m3

21. Average capacity of full load in pushcart or tricycle (liters)

* Please indicate in local currency.
Name of Enumerator

Appendix 4 for SSPWP
Name of Company/Organization if any Name of Person who answered this questionnaire 1. Location Position 2. Source of Water

17

- Bottled Water Suppliers
Date

Questionnaire

3. Cost of Water at Source

4. Treatment Provided On-Site

5. Volume of water sold per day

6.. Revenue in one day*

7.

Proportion sold to business

8.

Average household volume purchased per day

9.

Average household cost per day

10. License fees to Local Government

11. How long in business

12. Smallest volume sold /cost

13. Largest volume sold / cost

14. Business growing or static

15. Delivery services / distance

16. Approx cost loading % for delivery*

17. Costs per month in power, chemicals, rent, staff etc*

* Please indicate in local currency.

Name of Enumerator

18

Appendix 5

for Water
Name of Person who answered this questionnaire 1. Location 2. Who supplies you with water

Questionnaire
Date

Consumer

□ Water Utility □ Small Private Piped Water
3. What is the source of water 4. Is the water treated

□ Water Vendor □ Own Well

5. How much water do you use per month /per day m3 (last two bills)*

6. How much does this cost you per month / per day (last two bills)*

7. How many people in your household

8. How much bottled water do you use per day (liters)

9. How much does the bottled water cost you per day *

10. How far do you go to access water

□ Home
11. How is the water quality

□ < 100m □ Fair

□ > 100m □ Poor

12. How is the service from the utility

□ Good

□ Fair

□ Poor

□ Good
14. Is the supply reliable

13. For how many hours per day is water available

15. How is the service of the Small Private Piped Water Operator

16. How is the service of the water vendor

□ Good

□ Fair

□ Poor

□ Good

□ Fair

□ Poor

17. If you get water from the utility is the supply metered and working

18. If you don’t have piped water then when do you expect it

19. What is your monthly power bill

20. Are there pipe leaks in your street

21. Are there water leaks in your home

* Please indicate in local currency.

Name of Enumerator

1
Outline TOR for incorporation in the PPTA

PROJECT PREPARATION TECHNICAL ASSISTANCE OUTLINE TERMS OF REFERENCE FOR CONSULTING SERVICES TO MAINSTREAM SMALL SCALE PRIVATE WATER PIPED NETWORK PROVIDERS

A.

Background

1. In 2004 the Asian Development Bank (ADB) published the results of regional studies on small-scale private water providers (SSPWPs). The studies concluded that city officials, water utilities, and local banks should work with small network entrepreneurs to bring water supplies to the poor and disadvantaged immediately on an agreed interim basis until the water utility was able to do so. The study also recommended that small networks should be included in city development strategies and formalized with licensing and exit strategies and takeout agreements, with minimum standards set to recognise risk and payback requirements. 2. In the Asia and Pacific region, some 570 million people still need to receive improved water supply and about 1,820 million people still need to receive access to improved sanitation to reach the Millennium Development Goals (MDGs). People who are not connected often pay water vendors about 15% of their household income for delivery of water, buying water from their neighbours at inflated cost, or getting water from standpipes or stand-posts where access to water may only be for a very short time each day and there is difficulty transporting it home. The core issue is getting connected to piped water promptly and on terms affordable to those living in urban and peri-urban areas, especially the poor. Once connected, people are likely to pay only 1–2% of their household income for piped water. 3. In order to address the immediate needs of connecting the poor to piped systems in areas where the formal utility is unable to do so, it is proposed that provision of small piped water networks by SSPWPs be mainstreamed and integrated into both public and private sector loan projects.

B.

Objectives

4. The objectives of mainstreaming/integrating SSPWPs into the design of public and private sector loans are to: (i) legitimize the contribution and role of SSPWPs in the provision of water sector services, even though on a temporary period-limited basis, and focus financial support on delivery of affordable piped water supplies to the poorest members of society; (ii) undertake a rapid diagnostic survey and stakeholder consultation to assess the potential size of the market and the capacity of existing SSPWPs to meet that unfulfilled demand for services, (iii) develop appropriate registration procedures, licenses and Memoranda of Agreement with the Municipalities and formal utilities, under which the SSPWP will operate, (iv) identify a suitable financing mechanism, (v) identify and agree with the relevant authorities appropriate materials and construction standards, (vi) draft suitable bidding documents and templates, including evaluation criteria, in order to encourage transparent competition and to award contract licenses, and (vii) develop an appropriate technical/financial performance monitoring system.

2
Outline TOR for incorporation in the PPTA

C.

Scope

5. Many water utilities fail to provide adequate water service provision to the poor, with many forced to rely on alternative service providers who typically provide a lower quality service at far greater cost than the formal utility. SSPWPs service a significant proportion of the poor in many urban areas, but are not formally recognized and receive little or no formal planning recognition or financial support. Urban water supply and sanitation (WSS) projects invariably ignore the role and contribution that these SSPWPs can make in the planning and delivery of municipal services. By mainstreaming SSPWPs and including them in sector loans and rolling programs, their contribution can be optimized, enabling more people to be connected quicker, and the formal utility to prepare for the ultimate controlled handover to it of SSPWP small piped water networks (SPWNs). Urban water sector loans should include a component that supports SSPWPs, with part of the loan proceeds used to finance some or all of the capital investment requirements. 6. There are five steps leading up to the appointment of the SSPWP piped network operator, followed by a sixth step to cover regular technical performance and financial monitoring: (i) Undertake rapid diagnostic surveys of consumers, the water utility, SSWPs, and analyze the results to assess the size and location of the target market and the capacity of existing SSPWPs to meet the unfulfilled demand. Hold stakeholder consultation with the target communities, the utility, SSPWPs, local government representatives, NGOs, etc., and develop appropriate registration procedures, including time-bound licenses and Memoranda of Agreement with the Municipalities and formal utilities leading up to ultimate transfer of responsibility for service provision to them. Develop a financing structure and mechanism appropriate to the local situation. Identify materials and standards appropriate to the community and the lifetime of the project, and obtain approval from the relevant authorities. Prepare bidding documents including evaluation criteria and procedures, SSPWP appointment process and award contract license. Develop monitoring performance criteria. system covering appropriate technical/financial

(ii)

(iii)

(iv)

(v)

(vi)

D.

Methodology

7. Rapid diagnostic surveys will be undertaken after obtaining formal permission from the local government. Enumerators will undertake 5% sample surveys of water consumers in the target areas within the city, and will also survey all bottled water suppliers and water vendors operating in their zone. Domestic consultants will supervise the enumerator surveys, and themselves survey all the small piped water operators throughout the city. They will then

3
Outline TOR for incorporation in the PPTA

summarize the results of all the surveys and organize a stakeholder consultation. An international consultant will survey the water utility, and analyze and summarise the results of the surveys, including the size of the market and the capacity of SSPWPs to meet the unsatisfied demand. A domestic facilitator will convene a one-day stakeholder consultation to discuss the findings of the water assessment, identify the preferred option for the way forward to provide piped water supplies to the community and, if considered appropriate, formulate a civil society task force to monitor scheme implementation. Sample questionnaires for all the surveys will be pre-tested by the domestic consultants before use. 8. Licensing will provide formal recognition of the SSPWP by the municipal authorities and also the formal utility to ensure that the area will not be re-developed or the water services network extended into it for a specified number of years. This will provide security of tenure to the SSPWP and enable him to plan with confidence and price his services to obtain an appropriate return on capital during the period of tenure. At the end of the license term the assets will be transferred to the formal utility. The license will detail the area of license jurisdiction, the obligations of each party, reporting requirements and their frequency, periodic audits, remedies for failure to conform to the license, an appeals process and appointment of an independent ombudsman, the license duration, periodic license reviews (if appropriate), exit strategies including ultimately the transfer of responsibility for service provision to the formal utility or extension options at the conclusion of the license period. A reasonable license fee could be charged to cover administration costs. The terms of the license would also have to be approved by the formal utility, as certain sole service rights would be devolved to the SSPWP through the license, prohibiting expansion of the formal utility network into the license area within the term of the license. A separate Memorandum of Agreement should be drawn up between the SSPWP and the formal utility to cover such issues as: appropriate technical standards and materials (typically less onerous than those imposed on the formal utility and reflecting local conditions), provision of a bulk water supply if appropriate (if licensed by the Municipality, the SSPWP would have legal status and could become a legitimate bulk consumer of the formal utility) and covering maximum/minimum daily volumes, tariff, metering details, remedial actions in the event of supply deficiencies, periodic reviews (if appropriate), etc. The license would be a relatively simple document, with bureaucracy kept to a minimum. 9. Development of an appropriate financing structure and mechanisms is the key activity to be undertaken by the consultant, as financing of the SSPWP is critical to ensure tariffs can be kept as low as possible so everyone can be connected to the piped system. Because of their currently informal nature, SSPWP access to local capital markets and bank loans is virtually non-existent, with reliance placed on borrowing money from local money-lenders at extortionate rates. To provide increased financial security to the SSPWP, the consultant will investigate various options for an appropriate financing structure and mechanisms for the disbursement, repayment and monitoring of funds under the loan. Two options to be considered are to use part of the loan to lend directly to SSPWPs, or to establish a revolving fund. A revolving fund would provide broader opportunities for SSPWP support and potentially could cover a larger proportion of the city and the unserved population than direct loans to individual SSPWPs as funds repaid to the revolving fund could be re-disbursed to other SSPWPs. Special attention will be given to risk analysis, appropriate service and interest rates (in comparison with local informal lending rates, financing costs and service affordability, etc.), disbursement and repayment mechanisms (including any staging), term of the loan, and loan monitoring/reporting procedures. Existing loan models will be evaluated during this process to identify key features that will promote the objectives of the PPTA. As part of the risk analysis the consultant will make

4
Outline TOR for incorporation in the PPTA

recommendations on the proportion that the loan funds should represent in comparison with the total capital borrowing requirements of the SSPWPs in order to encourage bidders to develop alternative or matching funding mechanisms, minimise exposure of the loan funds to potential losses on specific schemes, and also to enable more SSPWP schemes to be supported financially. A domestic financial consultant will develop the loan fund structure and modalities. 10. The consultant will develop an appropriate SSPWP appointment process. It is envisaged that each SSPWP bidder would propose a business plan and a financing plan as part of his bid. Evaluation of the plans using evaluation criteria such as cost / household supplied, tariff affordability, proposed repayment period, etc., will identify the most attractive and costeffective bid. Prior to signing the loan, agreement would be reached on the disbursement schedule, the repayment schedule and the specific conditions that would trigger each repayment. Loan funds would be provided in tranches to the bidder as physical construction targets in his bid program are achieved and matching funds are demonstrated to be in place. Bidding documents and templates will be developed that standardize the details 11. required and the bid presentation format so that bidders can clearly understand what needs to be included in their bids. Bidding documents should be short, simple and clear, be in both English and the local language, and must clearly state what is expected of the successful bidder, how his bid will be evaluated (the evaluation criteria, the weight given to each, etc.), and provide details of the contract license award process. The municipality would then award the license, modified if necessary to reflect bid details, to the successful bidder who would then sign the loan fund agreement. The municipality would not sign a contract with the successful bidder. Bid bonds and performance bonds, etc., are not considered to be appropriate. Prior to the issue of bid documents contract adverts would be placed in the local press and distributed within the communities to be served. 12. Independent monitoring of the technical and financial performance of the SSPWP during the term of the license is absolutely essential. It is suggested that an independent consultant should be appointed to undertake this monitoring and periodic reporting function, with fees and costs met either through the license fee or from a separate budget within the loan fund. The independent consultant would also report directly to ADB and other loan fund donors on utilisation and administration of the fund. The monitoring system should be capable of distilling SSPWP performance as well as improvements to service provision in the community through the derivation of key performance indicators (KPIs) without the need for the collection, recording and analysis of extensive datasets which would only serve to increase bureaucracy and costs. Regular reports should be prepared as part of the monitoring system process. E. Implementation Schedule (total 6 months) 1.0 months 0.5 months 0.5 months 1.0 months 1.0 months 1.0 months 0.5 months 1.5 months

Surveys of utility, consumers and SSWPs Clarifications and preparation of results summary Analysis of results and prepare water assessment report Stakeholder consultation and report of findings Development of registration/license procedures Develop a financing structure and mechanism (during license development period) Prepare bidding documents Bidding period, bid evaluations and contract license award

5
Outline TOR for incorporation in the PPTA

Develop monitoring system (during bidding period)

(0.5 months)

F.

Inputs 1 person month/community 2 person months/community 1 person month 2 person months 4 person months 1 person week/community

Enumerators (or students) Domestic water supply survey consultants Domestic financial consultant Domestic water supply consultant International consultant Stakeholder consultation facilitator (inc. preparation)

G.

Outputs 1. Water Assessment Report Part A: Summary of Results of Surveys Part B: Analysis of Results Stakeholder Consultation Report (i) Discussion of Water Assessment Findings (ii) Preferred Small Piped Water Network Option (iii) Civil Society Task Force (iv) Participants SSPWP License and Memorandum of Understanding Report on Loan Fund Structure, Modalities, Operational and Reporting Procedures for SSPWP Water Supply / Sanitation Schemes Part A: Fund Structure and Modalities Part B: Fund Operation Part C: Monitoring and Reporting Bidding Documents for SSPWP Water Supply / Sanitation Schemes Evaluation Report on SSPWP Bids Part A: Summary of Bids Received Part B: Bid Evaluations and Ranking Part C: Contract Award Recommendations Monitoring System for SSPWP Contracts

2.

3. 4.

5. 6.

7.

1
Detailed TOR for the Consultants

PROJECT PREPARATION TECHNICAL ASSISTANCE TERMS OF REFERENCE FOR CONSULTING SERVICES TO MAINSTREAM SMALL SCALE PRIVATE PIPED WATER NETWORK PROVIDERS

CONTENTS

A. B. C. D.

Background Objectives Scope Methodology D1. D2. D3. D4. D5. D6. Rapid Diagnostic Surveys Stakeholder Consultation and Registration Procedure Financing Structure and Mechanism Materials and Standards Bidding Documents, SSPWP Appointment and Contract License Award Monitoring System

E. F. G. H.

Implementation Schedule Human Resource Inputs Financial Resources Reports

Appendixes 1. 2. 3. 4. 5. Questionnaire for Water Utility (International Consultant) Questionnaire for Small Private Piped Water Operators (Domestic Consultants) Questionnaire for Water Vendors (Students) Questionnaire for Bottled Water Supplier (Students) Questionnaire for Consumer Survey (Students)

2
Detailed TOR for the Consultants TERMS OF REFERENCE FOR CONSULTING SERVICES TO MAINSTREAM SMALL SCALE PRIVATE PIPED WATER NETWORK PROVIDERS

A.

Background

1. During 2002 and 2003, the Asian Development Bank (ADB) carried out regional studies1 on small-scale private water providers (SSPWPs). The objectives were to (i) provide an overview of urban water suppliers beyond formal water utilities, (ii) increase knowledge about the type of services provided by SSPWPs, (iii) define the profile of the most significant SSPWPs, and (iv) assess the main constraints on and potential of SSPWPs. The studies were carried out in Dhaka, Bangladesh; Shanghai, People’s Republic of China (PRC); Delhi, India; Jakarta, Indonesia; Ulaanbaatar, Mongolia; Kathmandu, Nepal; Manila and Cebu, Philippines; and Ho Chi Minh City, Viet Nam. 2. The results were published by ADB in 2004.2 The studies concluded that city officials, city water utilities, and local banks should work with small network entrepreneurs who can bring water supplies to the poor and disadvantaged immediately, on an agreed interim basis until the water utility is able to do so. These small networks should be included in city development strategies and formalized with licensing and exit strategies and takeout agreements. Minimum standards should recognize risk and payback requirements. Enabling legal and contractual conditions should be created and small operators should be integrated into the water supply chain as much as possible. Finally, the study concluded that ADB should join with two or three cities to test and refine these recommendations during 2005–20063. 3. In the Asia and Pacific region, some 570 million people still need to receive improved water supply and about 1,820 million people still need to receive access to improved sanitation to reach the Millennium Development Goals (MDGs).4 To achieve the MDG targets by 2015, many developing member countries (DMCs) acknowledge that it is important to reach Target 10 on water and sanitation by 2010, because the economic impact of improved piped water supply on health and education is significant.5 While ADB-supported projects in some DMCs, for example Phnom Penh in Cambodia and Dalian in the PRC, have achieved 24-hour water supply, many utilities in other DMCs have low levels of coverage. At five persons per connection, the effective water supply coverage with piped connections in 20016 was 10% in
1 The studies were funded under ADB. 2002. Technical Assistance for Promoting Effective Water Management Policies and Practices. Manila (TA 6031). 2 Conan, Hervé. 2004. Small Piped Water Networks: Helping Local Entrepreneurs to Invest. Water for All Series No.13, edited by Charles T. Andrews and Almud Weitz. ADB. 3 Four pilot projects for small piped water networks (SPWNs), and water supply services surveys that will facilitate up-scaling of the pilots, are currently being implemented in three cities in India (Ahmedabad), Philippines (Kabisig and Lupang Arenda in Metro Manila), and Viet Nam (Ho Chi Minh City) under a technical assistance (TA) assignment, following understandings reached with government representatives, potential NGO participants, civil society stakeholders and small-scale water providers (SSWPs). The TA first appeared in ADB Business Opportunities (internet edition) on 23 March 2005. 4 UN Millennium Project. 2005. Investing in Development: A Practical Plan to Achieve the Millennium Development Goals, New York, 2005 estimate in Table 9. 5 Every $1 invested in improved water supplies and basic toilets is expected to result in $3–$34 return in terms of savings in health costs and more time at work and in school. Source: World Health Organization. 2005. Water for Life–Making It Happen. WHO. 6 McIntosh, Arthur C. 2003. Asian Water Supplies–Reaching the Urban Poor. ADB and IWA.

3
Detailed TOR for the Consultants

Dhaka, 32% in Ho Chi Minh City, 31% in Jakarta, 32% in Manila, and 46% in Delhi. People who are not connected often pay water vendors about 15% of their household income for delivery of water, buying water from their neighbours at inflated cost, or getting water from standpipes or stand-posts where they only have access to water for a very short time each day and have difficulty transporting it to their homes. 4. The following are typical situations for the poor and those living in peri-urban areas: (i) utility unable to provide services because community is illegal or has no land rights; (ii) the utility is in the area, but for political or financial reasons chooses not to supply services or to limit them to standpipes/stand-posts; (iii) due to limitations on source and water availability the utility prefers to supply more affluent areas where the financial return is greater/easier or there is strong political influence; (iv) the cost of a utility connection is so high and the terms so inflexible that poor people cannot afford to connect to the piped water network. 5. In all cases, the core issue is getting connected to piped water promptly and on terms affordable to those living in peri-urban areas, especially the poor. Once connected, people are likely to pay only 1–2% of their household income for piped water. The implementation issue therefore is to find mechanisms that will be flexible and fast, and will respond to the needs of the people. This is where the role of SSPWPs to provide small piped water networks offers a sound interim solution. 6. In order to address the immediate needs of connecting the poor to piped systems in areas where the formal utility is unable to do so, it is proposed that provision of small piped water networks by SSPWPs be mainstreamed and integrated into both public and private sector loan projects.

B.

Objectives

7. The objectives of mainstreaming/integrating SSPWPs into the design of public and private sector loans are to: (i) legitimize the contribution and role of SSPWPs in the provision of water sector services, even though on a temporary period-limited basis, and focus financial support on delivery of affordable piped water supplies to the poorest members of society; (ii) undertake a rapid diagnostic survey and stakeholder consultation to assess the potential size of the market and the capacity of existing SSPWPs to meet that unfulfilled demand for services, (iii) develop appropriate registration procedures, licenses and Memoranda of Agreement with the Municipalities and formal utilities, under which the SSPWP will operate, (iv) identify a suitable financing mechanism, (v) identify and agree with the relevant authorities appropriate materials and construction standards, (vi) draft suitable bidding documents and templates, including evaluation criteria, in order to encourage transparent competition and to award contract licenses, and (vii) develop an appropriate technical/financial performance monitoring system.

C.

Scope

8. Many water utilities fail to provide adequate water service provision to the poor in their areas of jurisdiction, leaving poor communities to fend for themselves, and with many forced to rely on alternative service providers who typically provide a lower quality service at far greater

4
Detailed TOR for the Consultants

cost than the formal utility. SSPWPs service a significant proportion of the poor in many urban areas, but are not formally recognized and receive little or no formal planning recognition or financial support. Urban water supply and sanitation (WSS) projects, particularly those targeting the poor in urban and peri-urban areas, are typically prepared using only limited socio-economic data on the target “market”, and invariably ignore the role and contribution that these SSPWPs can make in the planning and delivery of municipal services. By mainstreaming SSPWPs and including them in sector loans and rolling programs, and not as standalone projects, their contribution can be optimized, enabling more people to be connected quicker and the formal utility to prepare for the ultimate controlled handover to it of SSPWP small piped water networks (SPWNs). Urban water sector loans should include a component that supports SSPWPs, with part of the loan proceeds being used to finance some or all of the capital investment requirements of the SPWNs. The scope of this PPTA focuses on developing the principles, the structure and the mechanism to access this component of the loan. 10. When preparing a water supply project, it is essential to have as complete information as possible about how all people get water now: what source, what quality, what cost, what consumption and what reliability. By undertaking a diagnostic water service assessment, including non-domestic consumers, all service providers can be identified and data obtained on the target community as follows: • • • • • • • • Verification of the true service coverage, eg 24 hour piped water supply, sewerage, etc. Justification for the registration and licensing of SSPWPs (piped network operators, water vendors, bottled water suppliers, sewerage network operators, septic tank operators, latrine service providers, etc.) Verification of consumer information versus utility records Tariffs from various suppliers What suppliers generate what revenues Who consumes the water Who pays what for water Identification of potential development partners.

10. There are five steps leading up to the appointment of the SSPWP piped network operator, followed by a sixth step to cover regular technical performance and financial monitoring: (i) Undertake rapid diagnostic surveys of consumers, the water utility, SSWPs, and analyze the results to assess the size and location of the target market and the capacity of existing SSPWPs to meet the unfulfilled demand. Hold stakeholder consultation with the target communities, the utility, SSPWPs, local government representatives, NGOs, etc., and develop appropriate registration procedures, including time-bound licenses and Memoranda of Agreement with the Municipalities and formal utilities leading up to ultimate transfer of responsibility for service provision to them. Develop a financing structure and mechanism appropriate to the local situation.

(ii)

(iii)

Comment [g1]: This could be a revolving fund or a specific loan

5
Detailed TOR for the Consultants

(iv) (v)

Identify materials and standards appropriate to the community and the lifetime of the project, and obtain approval from the relevant authorities. Prepare bidding documents including evaluation criteria and procedures, SSPWP appointment process and award contract license. Develop monitoring performance criteria. system covering appropriate technical/financial

(vi)

D.

Methodology

11. In order to mainstream and integrate SSPWPs into the design of public and private sector loans, the first step is to assess the market potential for SSPWP service provision. Consultation with stakeholders to identify their preferred service delivery options and procedures to formalize the SSPWP service providers is then undertaken, from which the most appropriate financial support mechanism is identified and the monitoring system to control that financial support is developed. D1. Rapid Diagnostic Surveys

12. ADB has prepared a Model PPTA ToR for undertaking a diagnostic city water assessment, and should be referred to for details of the implementation methodology. The following sections therefore only provide a brief overview of the process 13 A series of questionnaires will be prepared by the consultant and surveys undertaken by team members. An international consultant will have overall responsibility and will personally interview the water utility, analyzing all results and making recommendations. Domestic consultants will be responsible for logistics, briefing and supervising the enumerators undertaking the surveys in the separate geographic areas of the city, and will also be responsible for interviewing all existing SSWPs and pre-testing the sample questionnaires for all the surveys before use. The enumerators will undertake 5% sample consumer surveys in each target community, as well as interviewing water vendors and bottled water suppliers operating in each of their areas. Key questionnaires will be prepared as listed below and will be translated into the local language by the domestic consultant: 1. Questionnaire – Water Utility (Appendix 1)

14. Apart from details of individual customers this will identify the recipients of bulk sales including SSWPs, sub-divisions, homeowner associations, etc. Its focus will be on identifying the water source and for each type of customer (non-domestic, house service connection, standpipe, etc.) the total number of connections, the volume sold per month and the revenue gained per month. It will provide information on production volume versus consumption volume to determine NRW, and will note the extent of 24-hour piped water coverage. 2. Questionnaire – SSWP Piped Water Network Operators (Appendix 2)

15. The questionnaire will seek essentially the same information on every SSWP in each survey area as for the utility except the quality of the service to the customer such as direct

6
Detailed TOR for the Consultants

connection or hose and drums will be determined. The method and frequency of payment is an important output from this interview. 3. Questionnaire – SSPWP Water Vendor (Appendix 3)

16. If water vendors operate in a given survey zone, then vendors of each type (water tanker, motorized tricycle, pedaled tricycle, rickshaw, pushcart, etc.) should be interviewed by the enumerator to estimate the total number of vendors of each type operating in that zone. Pertinent information sought includes their source of water, means of transport of water, number and type of customers, average distance transported, volume sold and revenue gained. It is important to establish how much the vendor pays at source for the water and to whom it is paid. 4. Questionnaire – SSPWP Bottled Water Supplier (Appendix 4)

17. The enumerator will interview bottled water suppliers in his/her survey zone and estimate their total number and type (for example mixed goods shop, sole purpose bottled water shop, treatment and sale on site, deliveries of bottled water, etc.) in that zone. The focus of the interview is to obtain information about the source of water, type of treatment provided, volume of water sold per month, price paid and the total revenue. 5. Questionnaire – Water Consumer (Appendix 5)

18. The enumerator will obtain a 5% representative sample of all water users in his/her zone, identifying those served by the utility, by SSWPs, and surveying them in the numbers proportional to their prevalence. The focus will be on water source (consumers may get water from more than one source), access to water, water quality, reliability of supply, availability of supply, volume consumed per month and cost per month. It is important to record the number of persons in each household. This survey must include a representative number of non-domestic consumers, especially industrial users. 19. The international consultant will undertake an analysis of results and derive basic data, including: • Coverage % with 24 hour supply to individual house connection by utility • Coverage % with individual house connection by the utility • Coverage % including all utility domestic connections and standpipes. • Coverage % with piped water in home (all water providers). • Average household consumption per month by different sources of supply • Average household cost per month by different sources of supply. • Total monies paid by SSWPs at source per month. • Average price of utility water. • Average prices of SSWP water (network operator, vendor, water bottler). • Revenue turnover (a) utility, (b) SSWPs (network operator, vendor, bottled water supplier). • Volume of sales (a) utility, (b) SSWPs (network operator, vendor, bottled water supplier). • Official NRW figure from utility. • Comparison of cost and consumption - piped water versus non-piped water • Proportion of utility water volume sold to non-domestic consumers

7
Detailed TOR for the Consultants • • •

Proportion of utility water revenue derived from non-domestic consumers Comparison of average tariff for utility water: domestic versus non-domestic Proportion of all piped water where utility maintains the reticulation

20. The rapid assessment will focus on those not served with piped water to assess the costs and benefits to them of switching to a piped water supply, as well as the feasibility of doing so through an SSPWP contract. Similar questionnaires would be used for the provision of sanitation services to the poor.. D2. Stakeholder Consultation and Registration Procedure

21. Following completion of the diagnostic assessment analysis, relevant key findings will be disseminated to all stakeholders. About two weeks later, a one-day stakeholder consultation will be convened for all stakeholders. The morning would be devoted to presentation of results, analysis of the surveys and discussion of the findings, concluding with an overview of options for the way forward. The afternoon would be devoted to discussion of those options, assessment of technical option preferences and to developing a consensus on, the preferred way forward including the establishment, if considered appropriate, of a stakeholder task force to contribute to and monitor project implementation. The consultation will also guide SSPWP support, enhance cost recovery and institutional development to promote service sustainability, encourage water conservation (including reduction of NRW), and ensure that as far as possible the urban poor are connected to piped water and receive improved sanitation services within their ability to pay. The stakeholder consultation will be facilitated by a domestic consultant skilled in such work, or by a well respected and capable local person. 22. Formal recognition of the SSPWP is required from the municipal authorities and also the formal utility to ensure that the area will not be re-developed or the water services network extended into it for a specified number of years in order to provide security of tenure to the SSPWP. This will enable him to plan with confidence and price his services to obtain an appropriate return on capital during the period of tenure. This could simply be achieved, at least initially, through a simple registration process, but a far superior registration procedure would be to issue a license detailing the area of license jurisdiction, the obligations of each party, reporting requirements and their frequency, periodic audits, remedies for failure to conform to the license, an appeals process and appointment of an independent ombudsman, the license duration, periodic license reviews (if appropriate), exit strategies including ultimately the transfer of responsibility for service provision to the formal utility or extension options at the conclusion of the license period. At the end of the license term the assets will be transferred to the formal utility. A reasonable license fee could be charged to cover administration costs. The terms of the license would also have to be approved by the formal utility, as certain sole service rights would be devolved to the SSPWP through the license that would prohibit expansion of the formal utility network into the license area within the term of the license. It is therefore recommended that a separate Memorandum of Agreement should be drawn up between the SSPWP and the formal utility to cover such issues as: appropriate technical standards and materials (typically less onerous than those imposed on the formal utility and reflecting local conditions), provision of a bulk water supply if appropriate (if licensed by the Municipality, the SSPWP would have legal status and so could become a legitimate bulk consumer of the formal utility) and covering maximum/minimum daily volumes, tariff, metering details, remedial actions in the event of supply deficiencies, periodic reviews (if appropriate), etc. The municipal license and the utility agreement would also safeguard the position of the SSPWP in the event of a regulatory body

8
Detailed TOR for the Consultants

being subsequently set up to control the sector or if there was intervention by other relevant sectoral organisations. 23. The license should be a relatively simple document, with bureaucracy kept to a minimum since to require the SSPWP to prepare numerous reports, provide extensive data records, etc., would increase service provision costs (and hence the tariff) and potentially deter bidders from bidding to provide the service. The local consultant, with support from the international consultant, will develop an appropriate license format and a Memorandum of Understanding acceptable to the Municipality and the formal utility, following consultation with existing SSPWPs and potential bidders to ensure that the terms are fair and reasonable and would not unduly discourage potential bidders from submitting bids. D3. Financing Structure and Mechanism

24. This is the key activity to be undertaken by the consultant, as financing of the SSPWP is critical to ensure tariffs can be kept as low as possible so everyone can be connected to the piped system. Because of their currently informal nature, SSPWP access to local capital markets and bank loans is virtually non-existent, with reliance having to be placed on borrowing money from local money-lenders or close colleagues and relatives of the SSPWP, often at extortionate rates. To assist the SSPWP and to provide increased financial security the consultant will investigate various options to determine and develop the most appropriate financing structure and mechanisms for the disbursement, repayment (where appropriate) and monitoring of funds under the loan. Two of the options to be considered are to use part of the loan to lend directly to SSPWPs, or to establish a revolving fund. 25. The consultant will investigate the implications and mechanisms for designating a component of the loan for direct lending to the SSPWP. Special attention will be given to risk analysis, appropriate service and interest rates (in comparison with local informal lending rates, financing costs and service affordability, etc.), disbursement and repayment mechanisms (including any staging of disbursements), term of the loan, and loan monitoring/reporting procedures. Existing loan models will be evaluated during this process to identify key features that will promote the objectives of the PPTA. As part of the risk analysis the consultant will make recommendations on the proportion that the loan funds should represent in comparison with the total capital borrowing requirements of the SSPWPs in order to encourage bidders to develop alternative or matching funding mechanisms, minimise exposure of the loan funds to potential losses on specific schemes, and also to enable more SSPWP schemes to be supported financially 26. An alternative option to be investigated is to use a component of the loan to establish in each region or city a revolving fund,, supplemented by other funding sources if deemed appropriate, to finance all or part of the capital expenditure of the SSPWP and perhaps with an element of start-up capital for initial operation and maintenance (O&M) costs until revenue streams are established. To reduce risk to the revolving fund and to promote more SSPWP schemes, each SSPWP could be required to source a proportion of its funding requirements from external sources, eg through bank loans or the issue of bonds, to encourage the development of local financial markets. For each case, the financing mechanism must be appropriate for the local situation. The revolving fund would be administered by an appropriate independent organization approved by ADB in the country concerned, for example an experienced ethical bank, the national Chamber of Commerce, etc. The revolving fund would

9
Detailed TOR for the Consultants

have a broader coverage than direct loans to individual SSPWPs as funds disbursed from the revolving fund would be repaid in due course for further disbursement to other SSPWPs. The fund would therefore provide broader opportunities for SSPWP support and potentially could cover a larger proportion of the city and the unserved population. The consultant will make recommendations on the term of the loan and hence the winding up date of the revolving fund. 27. A local financial consultant, with support from the international consultant, will evaluate different formats for the various loan options, recommend an appropriate mix of funding sources based on local conditions, develop appropriate disbursement and repayment modalities and procedures, and reach agreement with ADB and other donors on fund operation and utilization performance monitoring / reporting. D4. Materials and Standards

28. The local consultant will propose materials and construction standards appropriate to the community and the lifetime of the project for discussion and agreement with the formal utility for incorporation into the Memorandum of Agreement. For instance, as the excavation and burial of pipelines is expensive, may involve the need to obtain excavation permits, and increases the difficulty to detect leaks, it might be more appropriate to simply lay pipes on the ground surface and secure them. At the end of the license period they would be abandoned as the formal utility extended its reticulation network into the area in conformity with its own standards. On the other hand, reservoirs and pumping stations could be retained for service after the license has expired, requiring the SSPWP to construct them to formal utility standards.
D5. Bidding Documents, SSPWP Appointment and Contract License Award

29. One week prior to the issue of bid documents the local consultant will prepare and issue contract adverts for the local press and for distribution within the communities to be served. 30. The consultant will develop an appropriate SSPWP appointment process. It is anticipated that this would require each SSPWP bidder to propose a business plan and a financing plan as part of his bid. The outline procedure for bidding and fund disbursement would therefore be as follows: • Prospective SSPWP bidders develop a business case for their system and formalise it in a business plan detailing population covered, system details, water source, capex, opex, human resource requirements, liaison with the formal utility, indicative tariff (to cover O&M costs, debt repayment and financing service charges), revenue projections, financing plan, etc. Financing plans would take into account the different funding sources and interest charges, etc. Business plans are evaluated by the fund administrators and the licensor (the Municipality) to identify the most attractive and cost-effective bids (evaluation criteria could include cost / household supplied, tariff affordability, proposed repayment period, etc.) or those that met more subjective social policy criteria such as number of poor households that would benefit from the scheme in a particularly deprived area. Prior to signing the loan, agreement would be reached on the disbursement schedule, the repayment schedule and the conditions that would trigger each repayment (repayments could be linked to the achievement of technical and financial targets, such as reaching a revenue collection efficiency threshold, as time alone is an inappropriate

10
Detailed TOR for the Consultants

criterion for repayment determination since premature repayment could jeopardise the viability of the scheme). Funds could be provided in tranches to the bidder as physical construction targets in the bid program are achieved and matching funds are demonstrated to be in place. Monitoring of physical progress would be required to achieve this, preferably by an independent person or organisation appointed by ADB or the fund administrators. Repayments returned to the revolving fund, if this is the financing option selected, would finance other schemes or extend/up-grade existing ones.

31. The local consultant, with support from the international consultant, will develop bidding documents and templates that standardize the details required and the bid presentation format so that bidders can clearly understand what needs to be included in their bids. Bidding documents should be short, simple and clear, be in both English and the local language, and must clearly state what is expected of the successful bidder, how his bid will be evaluated (the evaluation criteria, the weight given to each, etc.), and provide details of the contract license award process. The municipality would then award the license, modified if necessary to reflect bid details, to the successful bidder who would then sign the loan fund agreement. The municipality would not sign a contract with the successful bidder. Bid bonds and performance bonds, etc., are not considered to be appropriate. 32. The local/international consultants will make recommendations on how the Evaluation Committee should be constituted, as well as its membership. Terms of Reference, including the evaluation and marking system as well as reporting requirements, should also be prepared by the local/international consultants for the Evaluation Committee. D6. Monitoring System

33. Independent monitoring of the technical and financial performance of the SSPWP to ensure compliance during the term of the license is absolutely essential. In the absence of a formal regulator it is suggested that an independent consultant should be appointed to undertake this monitoring and periodic reporting function, with fees and costs met either through the license fee or, alternatively, from a separate budget within the loan fund. The independent consultant would also report regularly direct to ADB and other loan fund donors on utilisation and administration of the fund. 34. The TA local consultant, with support from the international consultant, will design a monitoring and reporting system to monitor the performance of the SSPWP as well as to safeguard utilisation of the loan fund and other sources of finance used by the SSPWP. The system should be capable of distilling SSPWP performance as well as improvements to service provision in the community through the derivation of simple key performance indicators (KPIs) without the need for the collection, recording and analysis of extensive datasets which would only serve to increase bureaucracy and costs. The monitoring system should include the following KPIs, variables data and suggested indicative KPI threshold values (monthly reports should cover items marked *, with those marked ** only reported bi-annually:

11
Detailed TOR for the Consultants

Key Performance Indicator Data Variables (KPI) Coverage** Population served Population in community Water Quality* Failures only of common tests: chlorine residual, appearance (turbidity and colour), taste/odour Continuity* Hours of supply at highest point in system (average/month) Pressure* Pressure at highest point in system (average/month) Non Revenue Water* Water Supplied (m3/month) Water Consumed (m3/month) Revenue Collection Revenue billed ($/month) Efficiency* Revenue Collected ($/month) Operational Financial Staff, chemicals, power, Performance** materials, and mobile plant costs Customer satisfaction** Complaints/month Population served

KPI Threshold (suggested) >90% (ideally 100%) <2% failures

Value

>18 hours (ideally 24 hours)

>5m <20% >90% As calculated (capital repayment and debt servicing estimated from this and revenue collected) <2%

E.

Implementation Schedule 1.0 months 0.5 months 0.5 months 1.0 months 1.0 months 1.0 months 0.5 months 1.5 months (0.5 months) 6.0 (six) months

Surveys of utility, consumers and SSWPs Clarifications and preparation of results summary Analysis of results and prepare water assessment report Stakeholder consultation and report of findings Development of registration/license procedures Develop a financing structure and mechanism (during license development period) Prepare bidding documents Bidding period, bid evaluations and contract license award Develop monitoring system (during bidding period) Total Implementation Period

F.

Human Resource Inputs 1 person month/community 2 person months/community 1 person month 2 person months 4 person months 1 person week/community

Enumerators (or students) Domestic water supply survey consultants Domestic financial consultant Domestic water supply consultant International consultant Stakeholder consultation facilitator (inc. preparation)

12
Detailed TOR for the Consultants

G.

Financial Resources $ $ $ $ $ $

Enumerators, consultants, facilitator Local transport Office facilities Stakeholder consultation Reports / communications Total

H.

Reports and Deliverables: 1. Water Assessment Report for City of ______________ Date Part A. Summary of Results of Surveys (Domestic Consultants) Part B. Analysis of Results (International Consultant) This two- part report will be due for completion not later than two months after the start of the assignment. 2. Report of Stakeholder Consultation on Water Supply in City of ___________ Date International Consultant This report will be due not later than three months after the start of the assignment.

3.

SSPWP License and Memorandum of Understanding for Community _____ Date Local/International Consultant The license and MoA will be due not later than four months after the start of the assignment.

4.

Report on Loan Fund Structure, Modalities, Operational and Reporting Procedures for SSPWP Water Supply / Sanitation Schemes in ___________ Date Local Financial/International Consultant This report will be due not later than four months after the start of the assignment.

5.

Bidding Documents for SSPWP Water Supply / Sanitation Scheme in _____

13
Detailed TOR for the Consultants

Date Local/International Consultant Bidding documents will be due not later than 4.5 months after the start of the assignment. 6. Evaluation Report on SSPWP Bids for Community ___________ Date Evaluation Committee (with support from International Consultant) This report will be due not later than six months after the start of the assignment. 7. Develop Monitoring System for SSPWP Contracts in ___________ Date Local/International Consultant The monitoring system will be due for completion not later than five months after the start of the assignment.

Appendixes 1. 2. 3. 4. 5. Questionnaire for Water Utility (International Consultant) Questionnaire for SSPWP Piped Water Operators (Domestic Consultants) Questionnaire for SSPWP Water Vendors (Enumerators) Questionnaire for Bottled Water Supplier (Enumerators) Questionnaire for Consumer Survey (Enumerators)

Appendix 1

14

Name of Water Utility Name of Person who answered this questionnaire 1. Name of City Position

Date

2.

Population in City

3.

Population in Utility Service Area

4.

Population Served by Utility (Direct)

5.

Population Served by Utility (Bulk Supply / Indirect)

6.

Population Served by House Connection

7.

Population Served by Shared Connection

8.

Population Served by Standpipe or Community Tank

9.

Population Served by Utility Tanker

10.

Number of House Connection s

a. Metered

b. Meter Not Working

c. Not Metered

11.

Number of Shared Connections

a. Metered

b. Meter Not Working

c. Not Metered

12.

Number of Standpipes

a. Metered

b. Meter Not Working

c. Not Metered

13.

Number of Utility Tankers

a. Capacity of tankers

14.

Number of Community Tanks Number of Bulk Connection s

a. Metered

b. Meter Not Working

c. Not Metered

15.

a. Metered

b. Meter Not Working

c. Not Meter ed

16.

Number of Connections to Industry/ Other

a. Metered

b. Meter Not Working

c. Not Metered

17.

Number of House Connections with 24 Hour Service

18.

Percentage of Service Area with 24 Hour Supply

19.

Number of Sources of Treated Water for Piped Supply

20.

Production sources metered and working

15
21. % NRW for Utility a. Leakage % b. Mis-Metering % c. Illegal Connection % d. Illegal Sale of Water %

22.

Number of Meters replaced in last 12 months

23.

Total Consumption by House Connection Per Month m3

24.

Total Consumption by Shared Connections Per Month m3

25.

Total Consumption by Standpipe or Community Tank per Month m3

26.

Total Consumption by Utility Tanker Per Month m3

27.

Total Consumption by Bulk Supply to Small Private Piped Water Operators/Vendors Per Month m3

28.

Total Consumption for Municipal Use Per Month m3

29.

Total Consumption by Industry/ Other Per Month m3

30.

*

Total Money Billed Per Month for House Connections

31.

Total Money Billed Per Month for Shared Connections *

32.

Total Money Billed Per Month for Standpipes or Community Tanks *

33.

Total Money Billed Per Month for Utility Tanker Services *

34.

Total Money Billed Per Month for Bulk Supply to Small Private Piped Water Operators/Vendors *

35.

Total Money Billed Per Month for Industry/Other *

36.

Number of new connections installed in last 12 months (domestic)

37.

Number of new connections installed in last 12 months (nondomestic)

38.

New connection fee and terms of payment (domestic)*

39.

Accounts receivable in equivalent months of billing

40.

Number of people employed by utility.

*Please indicate in local currency. NRW = Non-revenue Water =
Production - Consumption % Production

Consultant to independently and randomly check domestic meters (40), industrial meters (10), and accounts on computer (100).

Name of Consultant Interviewer

Appendix 2 for SSWP
Name of Company/Organization if any Name of Person who answered this questionnaire 1. Location of Piped System Position

16

Questionnaire
Date

- Piped Water Network Operators

2. Total Population Served by the System

3. Population Served by House Connections

4. Population Served by Shared Connections

5. Population Served by Standpipe or Community Tank

6. Source of Water

7. Cost of Water at Source $/m3

8. Volume of Water Received at Source m3

9. NRW %

10. Number of House Connections

11. Number of Shared Connections

12. Number of Standpipes and Community Tanks

13. Population Receiving 24 Hour Supply by House Connection

14. Consumption Per Month from House Connections m3

15. Consumption Per Month from Shared Connections m3

16. Consumption Per Month from Standpipes or Community Tanks m3

17. Money Received Per Month from House Connections *

18. Money Received Per Month from Shared Connections*

19. Money Received Per Month from Standpipes or Community Tanks *

20. Water Treatment Provided by the System

21. How Long in Business

22. License or Agreement with Local Authority

□ Yes
* Please indicate in local currency. NRW = Non-revenue Water = Production - Consumption %
Production

□ No

Name of Consultant Interviewer

16

Appendix 3 for SSPWP

- Water Vendors
Date

Questionnaire

Name of Company/Organization if any Name of Person who answered this questionnaire 1. Location of vendor 2. Position Population served by vendor

3.

Population served by tanker

4.

Population served by pushcart/tricycle

5.

Businesses served by vendor

6.

Source of water

7.

Cost of water at source*

8.

Average distance for delivery of water (km)

9.

Volume of water delivered per day by tanker m3

10. Volume of water delivered per day by pushcart / tricycle m3

11. Revenue received per day for water delivered by tanker *

12. Revenue received per day for water delivered by pushcart/tricycle *

13. Number of tankers in your business

14. Number of pushcarts / tricycles in your business

15. Fuel cost per day for power cycles *

16. Fuel cost per day for tankers *

17. Approval of local government

18. License fee to pay *

□ Yes
19. How long in business

□ No
20. Average capacity of tanker m3

21. Average capacity of full load in pushcart or tricycle (liters)

* Please indicate in local currency.
Name of Enumerator

Appendix 4 for SSPWP
Name of Company/Organization if any Name of Person who answered this questionnaire 1. Location Position 2. Source of Water

17

- Bottled Water Suppliers
Date

Questionnaire

3. Cost of Water at Source

4. Treatment Provided On-Site

5. Volume of water sold per day

6.. Revenue in one day*

7.

Proportion sold to business

8.

Average household volume purchased per day

9.

Average household cost per day

10. License fees to Local Government

11. How long in business

12. Smallest volume sold /cost

13. Largest volume sold / cost

14. Business growing or static

15. Delivery services / distance

16. Approx cost loading % for delivery*

17. Costs per month in power, chemicals, rent, staff etc*

* Please indicate in local currency.

Name of Enumerator

18

Appendix 5

for Water
Name of Person who answered this questionnaire 1. Location 2. Who supplies you with water

Questionnaire
Date

Consumer

□ Water Utility □ Small Private Piped Water
3. What is the source of water 4. Is the water treated

□ Water Vendor □ Own Well

5. How much water do you use per month /per day m3 (last two bills)*

6. How much does this cost you per month / per day (last two bills)*

7. How many people in your household

8. How much bottled water do you use per day (liters)

9. How much does the bottled water cost you per day *

10. How far do you go to access water

□ Home
11. How is the water quality

□ < 100m □ Fair

□ > 100m □ Poor

12. How is the service from the utility

□ Good

□ Fair

□ Poor

□ Good
14. Is the supply reliable

13. For how many hours per day is water available

15. How is the service of the Small Private Piped Water Operator

16. How is the service of the water vendor

□ Good

□ Fair

□ Poor

□ Good

□ Fair

□ Poor

17. If you get water from the utility is the supply metered and working

18. If you don’t have piped water then when do you expect it

19. What is your monthly power bill

20. Are there pipe leaks in your street

21. Are there water leaks in your home

* Please indicate in local currency.

Name of Enumerator

Sign up to vote on this title
UsefulNot useful