Water utilities are the main instrument for countries to achieve universal service coverage. In pursuing universal service coverage, water utilities have turned to pro-poor water services to extend water services in low-income areas. This thesis discusses the use of pro-poor water services by water utilities in Kenya, with the intention of highlighting the dimensions of the approach that require attention of policy makers and practitioners when engaging with the concept. Based on the analysis of the technologies, financial and organisational arrangements associated with the pro-poor concept, this thesis shows that the use of pro-poor strategies allows water utilities to reduce the risks of servicing low-income areas while still claiming to fulfil their mandate of providing access to all in a commercially viable manner. The analysis also shows that rather than a decision of the water utility, the choice for pro-poor strategies emerges as the result of a consensus or compromise between the different actors that constitute the broader institutional environment in which water utilities operate. The thesis concludes that while pro-poor water services may serve the interests of water utilities and other stakeholders, in the absence of well-directed subsidies and proper monitoring they will not result in low-income households benefiting from more affordable and reliable access to water.

'Public-Private Partnerships for Urban Water Utilities: A Review of Experiences in Developing Countries' analyzes the market growth of Public-Private Partnerships (PPPs) in the developing world since 1990, and the performance of more than 65 large water PPP projects representing more than 100 million people for access, service quality, operational efficiency, and tariff levels. Although a relatively small portion of the water utilities in the developing world are operated under PPPs (about 7 percent in 2007), the urban population served by private water operators has grown every year since 1990. Despite many difficulties encountered by PPP projects and a few contract terminations, a large majority of contracts awarded since 1990 are still in place. The track record for improving service and efficiency reaffirms the value of PPPs to help turn around poorly performing water utilities, even though the level of private financing did not match initial expectations. Over time, a more realistic market has developed, the number of private investors from developing countries has grown, and contract designs have become more pragmatic concerning risk allocations between partners. The water sector has many features that set it apart from other infrastructure sectors. This book suggests the need for careful consideration of those specificities to successfully involve private operators. Although concessions with private financing have worked in a few places, contractual arrangements that combine private operation with public financing appear to be the most sustainable option in many countries. Policy makers, stakeholders, and donors need to remain heavily engaged in the water sector, especially in the poorest countries and during a global financial crisis. This book contributes to a better understanding of the various options to tackle the many challenges of providing water and sanitation services to urban populations in the developing world.

This book reviews the prevalence and variants of consumer subsidies found in the developing world and the effectiveness of these subsidies for the poor. It places consumer subsidies in a broader social protection framework and compares them with poverty-focused programmes in other sectors using a common metric. It concludes that the most common subsidy instruments perform poorly in comparison with most other transfer mechanisms. Alternative consumption and connection subsidy mechanisms show more promise, especially when combined with complementary non-price approaches to making utility services accessible and affordable to poor households. The many factors contributing to those outcomes are dissected, identifying those that can be controlled and used to improve performance.

Contributed articles chiefly with reference to India; includes articles on water resources development in various countries of the world including India.

This World Bank Study provides a basic diagnostic of residential piped water coverage and affordability in Uganda and its relationship with poverty using a series of nationally representative household surveys for the period 2002†“13. The study fi rst analyzes trends in piped water coverage using both administrative and survey data. Demand-side and supply-side factors reducing the take-up of piped water service by households in areas where the service is available are estimated. The study also documents the extent to which piped water coverage enables households to shift time use away from domestic tasks toward market work, and the benefi cial effect that this may have on poverty. The targeting performance to the poor of water subsidies is estimated and results obtained for Uganda are compared with estimates for other countries. Finally, the study analyzes issues related to affordability—including the impact of the tariff increase of 2012 on household consumption, poverty, and piped water affordability—as well as the cost for households to connect to the piped water network.