Case Study September 2010 Public-Private Partnership Model in Small Towns (O&M Contract in Bekwai, Atebubu and Wassa Akropong) Benedict Tuffuor, TREND i TABLE OF CONTENT Table of Content ………………………..……………………………………………………...ii List of Tables ……………………………………..…………………………………………...iii List of Figures …………………………………………….…………………………………..iii List of Boxes ………………………………………………………..……….…………………iii List of Abbreviations ……………………………………………………..………………….iii 1. INTRODUCTION ..............................................................................................1 1.1. Objectives of this study ................................................................................... 2 1.2. Approachs for the study .................................................................................. 2 1.3. Organization of the report ............................................................................... 2 2. DESCRIPTION OF CASE STUDY AREAS .....................................................3 2.1. Overview of Bekwai........................................................................................ 3 2.1.1. Location ................................................................................................... 3 2.1.2. Socio-Cultural .......................................................................................... 3 2.1.3. Economic Activity ................................................................................... 3 2.1.4. Existing Water Supply System ................................................................ 3 2.2. Overview of Atebubu ...................................................................................... 4 2.2.1. Location ................................................................................................... 4 2.2.2. Type of community .................................................................................. 4 2.2.3. Existing Water Supply System ................................................................ 4 2.3. Overview of Wassa Akropong ........................................................................ 4 2.3.1. Location ................................................................................................... 4 2.3.2. Socio-cultural ........................................................................................... 4 2.3.3. Economic Activities ................................................................................. 5 3. PPP Model for small towns WASH service delivery .........................................6 3.1. Development of PPP management models for small towns in Ghana ............ 6 3.2. Bekwai case study ........................................................................................... 7 3.2.1. Introduction of the PPP arrangement ....................................................... 7 3.2.2. PPP model characteristics ........................................................................ 7 3.2.3. PPP Implementation phase ...................................................................... 8 3.2.4. Post Contract arrangement ..................................................................... 10 3.3. Atebubu Case Study ...................................................................................... 11 3.3.1. Introduction of the PPP arrangement ..................................................... 11 3.3.2. PPP model characteristics ...................................................................... 12 3.3.3. PPP Implementation Phase .................................................................... 12 3.3.4. Post contract arrangement ...................................................................... 14 3.4. Wasa Akropong ............................................................................................. 14 3.4.1. Development of the PPP arrangement ................................................... 14 3.4.2. PPP model characteristics ...................................................................... 15 3.4.3. Performance of the PPP ......................................................................... 16 4. ASSESSMENT OF THE MANAGEMENT MODEL .....................................19 4.1. Transparency and Accountability.................................................................. 19 4.2. Water Tariff review and financial sustainability ........................................... 20 4.3. Special measure for ensuring pro-poor focus ................................................ 20 4.4. Health and hygiene promotion, Health and Environmental Considerations . 21 ii 4.5. Factors affecting the PPP performance ......................................................... 21 5. CONCLUSIONS AND RECOMMENDATIONS ...........................................23 LIST OF TABLES Table 3.1: Penalties for Non-Performance – Bekwai ………………………………8 Table 3.2: Water Pricing and Structure in US$....................................……………. 10 Table 3.3: Summary of Performance of Atebubu Water System: 2003 – 2007….. 13 Table 3.4: Performance Indicators …………………………………………………15 LIST FIGURES Figure 1.1: Location of Study Areas………………………………………………..3 Figure 3.1: Pictures Showing Leakages ……………………………..……………. 17 Figure 3.2: Typical Situation at the Standpipe in the Morning …………………… 17 LIST OF BOXES Box 3.1: PPP in Ghana ……………………………………………………………. 6 LIST OF ABBREVIATION AWF - Africa Water Facility COM - Community Ownership and Management CWSA - Community Water and Sanitation Agency DA - District Assembly DCE - District Chief Executive DPPC - Distribution Points for Private Connection DWST - District Water and Sanitation Team EU - European Union GIS - Geographic Information System GWCL - Ghana Water Company Limited GTC - German Technical Co-operation IMC - Interim Management Committee iii NCWSP - National Community Water and Sanitation Programme NGO - Non Governmental Organisation NRM - Non Revenue Water O&M - Operation and Maintenance PPIAF - Public Private Infrastructure Advisory Facility PPP - Public-Private Partnership TPP - Tripartite Partnership TREND - Training Research and Networking for Development PPP - Private Sector Participation PURC - Public Utility Regulatory Commission UNICEF - United Nations Children‟s Fund WASH - Water, Sanitation and Hygiene WSDB - Water and Sanitation Development Board iv 1. INTRODUCTION The Tripartite Partnership (TPP) Project is a joint collaboration among the Netherlands Water Partnership, TREND, the lead implementer and some National actors and stakeholders in the water and sanitation sector in Ghana, working to identify and promote Innovative Management Models for the delivery of water, sanitation and hygiene (WASH) services to the urban poor. TPP started in January 2008, as a response to the lack of knowledge and capacity for dealing with the challenges of pro-poor urban water and sanitation services delivery. The overall goal of the TPP is to ensure a “Strengthened sector capacity for planning and delivery of pro- poor water and sanitation services.” The specific objectives of the project are to: Identify a range of innovative management models for providing water services to the urban poor. Test innovative models through selected demonstration projects. Utilize the learning outcomes of the project to support the creation of the enabling environment (policy, regulation and legislative frameworks) for these models to be scaled up. TPP has reviewed various management models, both locally and globally to identify promising innovative ways of ensuring sustained delivery of WASH services to the urban poor. The best practices which were critically obtained from the various studies would inform the design of various tools and guidelines for replication within the Ghanaian WASH sector. Using knowledge management, advocacy and promotion of networking, the results will be used to ensure improved service delivery at the and strengthened policy at the sectarian level. Plans are advanced for TPP to pilot promising innovative management models with the support of the African Water Facility (AWF) of the African Development Bank (AfDB) for infrastructure development. As part of the project activities to achieve the above objectives, a scoping of existing Management Model and a GIS mapping exercise were carried out between April and November, 2008. At a meeting with stakeholders on 12 November 2008, the outcomes of the scoping studies were presented, and a number of case areas were identified, covering a wide range of issues across the four main ecological zones of Ghana, for further studies to provide better understanding on the ways different management models affect WASH service delivery in Ghana. In line with the central theme of the TPP - Innovative Management Models for services delivery to the urban poor, this report describes the Public-Private Partnership (PPP) model, where the operations and maintenance of small towns water supply schemes have been delegated to private operators. The report is on three small towns‟ water supply schemes with PPP model in Bekwai in the Ashanti Region, Atebubu in the Brong Ahafo Region and Wassa Akropong in the Western Region, as part of a series of nine (9) cases conducted under the TPP Project on promising management models in the water and sanitation sector in Ghana. 1 1.1. Objective of this study The objective of this study is to examine the Public Private Partnership (PPP) management model for small towns WASH services for innovative mechanisms to inform the design of appropriate management models for WASH service delivery to the urban poor. The study is