Field Note 23770 December 1999

Water and Sanitation Villagers Treat Water Public Disclosure Authorized Program An internatiolpartnership as an Economic Good, to help the poor gain sustained access to aiirovdsantatio seupple Olavanna, , and s anitationservices

South Asia Region SUMMARY A,

SMALLPRIVATE AthoghKerlais classified as INITIATIVES (SPI) IN THE Although Kerala i WATER AND SANITATION a rain-rich State, there are SECTOR IN INDIA several pockets of acute water

Public Disclosure Authorized In India, water and scarcity. Since 1987, one I sanitation services are Panchayat in northern Kerala is predominantly provided bekn e rud i by Government and para- bekn e rudi statal agencies. There are community action for self- very few instances of sufficiency in drinking water L large-scale formal privatesufceyindnkgwar sector participation; where supply. Faced with acute water they exist they are mostly scarcity and the unreliable service contracts or man- agement contracts. service of the State water authority, small groups of However, a number of sa F tt- small-scale informal pri- villagers of Olavanna Gram vote initiatives have Panchayat in district- emerged to fill the gaps in Public Disclosure Authorized the existing delivery have been organizing them- privatesystem. initiativesSome ofathse are iniselves into groups, collecting partnership with the money, setting up small piped Government, and others supply schemes, and have come about on theirwaesupy chm,an own in response to meeting their own water supply demandclients,needs,fro rather than depend on 'r ? This series of Field the State Government. In this Notes on Small Private effort they have been inspired -, Initiatives in the Water and Sanitation Sector in by the Gram Panchoyat India is designed to docu- President. This field note A water tank constructed under a private ment a few successful dnnking water scheme urban and rural experi- describes a demand responsive ences focusing on approach in operation, documents a case of managing rural water

Public Disclosure Authorized the poor. supply at the lowest appropriate level, and is an example of how the Government can move from a provider to a facilitator. Most importantly, this field note is about a rural community treating drinking water as an / economic good. This is perhaps the first initiative in rural India where the SPI Series:4 user community is meeting the full capital and operation and maintenance costs of their drinking water schemes. _ _ _ Department for J Internationalt _ FID_ _ ~~Develomn . ing families inthe hamlet of Kambili- Background Olavanna Gram paramba. The GP supported this ini- Panchayat. Main Features tiative. This project was successful HE OLAVANNA Gram Pan- Location: One of,6 Gram Panchay- and the other villagers realized that chayat in 'bts (GP) in,.ozhikode Commmiunity instead of helplessly agitating against had a drinking water scarcity Development Block in north Kerala. the KWA and the GP, they could problem. Olavanna presented a clas- Area:21 43squarekilometersin), themselves solve their drinking water sic case of 'water, water everywhere, with 32 hillocks,21 water channels problem. This could be done at a low but not a drop to drink'. The 3 rivers, 41 ponds and, the river Chaliyar thst cost and, as they themselves mon- including Chaliyar, flowing through bisects the Panchaya. aged the project, they could organize the Panchayat are saline. Other non- Population 44,398(1991 Census) the service according to their require- saline surface water bodies in the in 7,153 households. 2,072 per- ments. This scheme serving lust 5 Panchayat go dry in February, as . lv 1 . k. households was soon to herald a new summer sets in. The water scarcity km.) of area whereas the.average era in rural drinking water supply in forces people (and women in particu- k') Kerala is 749.persons per Kerala. Encouraged by this initiative lar) to walk long distances to get dsk f and supported by the GP President, water for their daily needs. ; k. male population. i h 54 other households of Kambili- The water scarcity was especially than the male populaton paramba got together in 1989, and, acute during the drought in 1985. At Literacys 100 percent; the Panchayat with a contribution of Rs. 4,500 each, that time, there was only 1 Kerala has3 high schools, 4 upper primary formed a registered co-operative Water Authority (KWA) scheme in the schools and 8 creches (anganvadis). Society to provide drinking water for village providing uncertain and erratic Occupational Breakup: Cultivation their own needs. This was a piped water supply to just 1,600 of the 377; Agricultural labor 1,314; House- water supply scheme consisting of a 7,100 households. The villagers, fed holdindustry318;Construction 1,927; similar intake well, pumpset, over- up with the KWA scheme, picketed the Other workers 7,550; Marginal work- Gram Panchayat (GP) office, demand- ers 1,095; Non-workers 31,817. The P h t R ing drinking water schemes. This led to Tnasicoayal i Rai the GP promising to provide drinking dent, Mr. Babu Parassari, the Olavanna Institutioral (PRI) water schemes in the village. This com- villagers resolved to meet their drinking T P mitment led to the commissioning of the water requirements themselves. T ZIla first piped water scheme in 1987 in one: Zila Panchayat'(district level), Vettuvedankunnu Ward of the Olovan. Block Panchaat (intermediate na Panchayat (see box on the Pan- The Private l6vel)' and Gram Panchayat. (village, chayati Raj Institutional Structure). This Response !evel). A district typic6lly has several scheme was funded by Government Block Panchoyats and each Block grants to the Block Panchayat. The Vet- Panchayat contains several Gram tuvedankunnu scheme consisted of an HE SCHEME initiated by the Panchayats (GP). EachGP, which intake well, an overhead tank, and GP generated a lot of interest comprises one or morevillages, has pipelines to distribute drinking water, in the 3 villages. The GP Pres- severgl wards,.which are electoral through public standposts, to serve ident was acknowledged as a true units for GPelections. There are, 400 households. leader and his efforts to solve the also several hamlets within a vil- Since 1987, the GP and the Block drinking water problems of the GP lage, which are local!y-recognized. Panchayat have built 18 piped water applauded. The villagers realized that clusters of habitations: schemes, which provide drinking water local needs required local solutions. through public taps as well as house taps However, given the financial con- head tank and distribution system. to 1,362 families. The KWA also com- straints, which were discussed openly From 1991 onwards, several such pri- missioned 2 more schemes in 1990 and in the GP meetings, a retired school vate Societies have been formed and 1998 which serve 2,400 households. teacher had a novel idea in 1989. He similar small piped water supply However, the quality of service provided collected money from the community schemes commissioned. Today, there by the KWA has not met customer satis- and installed a small 1 HP pump with are 26 such private co-operative Soci- faction and spurred on by the GP Presi- an intake well to service 5 neighbor- eties operating in the GP and 6 more

2 Societies are in the process of con- Extracts from the By-laws: The following extracts from the structing their schemes. The GP has by-laws of a private Society give an idea of the detailed institutional successfully shifted its role from being a provider to a facilitator and it has arrangement that has been worked out. performed the regulatory function to Meetings sustain and encourage this novel pro- U The date of the GBM will be intimated to all the members at least 3 days ject for the last 11 years. The GP does before the meeting. not provide any funds to these Soci- * The quorum is 50 per cent of the general body. eties, as capital costs or for the oper- E EC meeting dates and times must be intimated to EC members at least 24 ation and maintenance (O&M). It hours in advance. also needs to be noted that not a sin- * Members should inform the EC inwriting if they cannot attend a meeting. gle private scheme has failed till l If a member is absent from 3 consecutive EC meetings without notice, the EC date. has the right to co-opt another member in his or her place, but has to obtain the approval of the GB within 3 months. * A copy of all rules of the Society, which has been signed by the Secretary Institutional and and adopted by the EC, must be made available to all members. Operational Finances Arrangem ents larger. The amounts,Secretary theis authorizedTreasurer hasto signthe sanctioningfor expenses authority. up to Rs. 100 a day. For U Amounts exceeding Rs. 500 should not be kept inthe custody of the Treasurer. How Private Societies Start * Any amount more than Rs. 500 must be deposited in a bank account in the name of the Secretary in a bank chosen by the EC. The process of initiating a private * The Treasurer has to present written accounts to the EC and the GB. piped water supply scheme is as follows. Dissolution of the Society * If for any reason the Society is dissolved, all assets of the Society shall be * After enlisting all households who handed over to another Registered Society with a similar mandate. wish to benefit from a piped water * The assets of the dissolved Society shall not be divided among the members supply scheme, the beneficiaries get in such an instance. together, draft their by-laws and regis- Household connections ter their co-operative Society (under All members of a Society must permit. other members to lay pipelines through the Co-operative Societies Act of their property. However, this must be done without causing any damage to the 1860). This process is facilitated by property-owner. the GP, which in turn supports a group * All members must take individual connections from the main line to their of individuals who are willing to mobi- houses, at their own expense. lize the beneficiaries and take the Permitted uses of water responsibility of running the project in and democratic mannepr i Water must not be used for irrigation under any circumstances, Storing an open and democratic manner. water for irrigation, if detected, will invite penal action by the EC. However, a show cause notice must be issued to the member concerned before initiating SELF-REGULATION is a key concept any action. in these Societies. Once the scheme House sale is ready, water isavailable 24 hours E If a member sells his house, the water connection is also transferred. These a day, except in the summer months sales must be intimated in writing to the EC. Inno case will the EC pay back of April and May. During this period, the initial contribution of the original member. The purchaser will automatically water supply is reduced by mutual become a member of the Society. agreement among the beneficiaries, to about 10 hours a day. As the users * Members of the Society are asked E Land is purchased for the open well are also the managers, self-regula- to pay their membership fees, which and for the overhead storage tank. tion brings in an element of responsi- varies from Rs. 4,500 to Rs. 12,500 The location of the well is arrived at bility and ensures that there are no per household. The amount differs by consensus. unnecessary complaints. across Societies because the costs of individual schemes vary. * Local expertise construct (or reno-

3 vate) the well and the storage tank, "It was difficult to pay the Rs. 5,500 schemes, but are dependent on the and lay the pipelines. needed for the scheme. But I paid it in GP and the KWA schemes. 3 installments over 6 months. And it * Beneficiary families provide volun- was worth it.I have no drinking water Financial Issues tary labor as per the skills required problems now." from time-to-time in the scheme. This is Khoyo, a poorer rescient of Olovanna in addition to the cash contribution. OUSEHOLDS WHO wish cal assistance from outside the village, to join the scheme after it * If electricity is available, an electric Nearly all of these schemes are con- has been commissioned pump is bought and installed. If not, a structed within 2 to 4 months. The qual- have to pay twice the initial member- diesel pump is purchased. ity of construction is good and, com- ship fees to offset the initial risk taken pared to KWA-constructed schemes, and efforts made by the members Legal Structure these have lower rnaterial and labor who initiated the Society. costs. This is an aspect that even the The beneficiaries pay all the O&M KWA acknowledges. costs, including the cost of hiring a HE GENERAL Body (GB) of each pump operator and energy costs. The Society, consisting of all users Social Concerns Society makes sure that there is an (averaging around 50 households operating surplus for future repairs per scheme), elects an Executive Commit- and maintenance. The due date for tee (EC) of between 7 and 11 members, LTHOUGH SEVERAL resi- monthly payment is the 30th of the including a President, Vice-President, Sec- dents of Olavanna are fair- month. Payments are accepted till the retary and Treasurer. The EC is elected ly well-off by rural standards, 5th of the next month with a fine. But annually and runs the day-to-day affairs there are some relatively poorer fami- of the Society. The Treasurer operates the lies in the GP. It is interesting to note THIS ISperhaps the first instance in Society's bank account, and is answer- that membership to the private Soci- rural India where the local commu- able to the EC. The EC has to obtain the eties is, however, not restricted to the nity ismeeting the full capital cost as permission of the GB to utilize the Soci- well-off. Even poorer families con- well as the O&M cost of a drinking ety's Funds - including the payment for the tribute to private schemes, paying water project. construction of the water supply scheme. their initial contribution in install- Each year, a General Body Meeting ments. The reason is straightforward, if the payments are delayed after the )GBM) is held to scrutinize the accounts, as the GP President notes, "If the need 5th, supply is disconnected. By and discuss the annual report, and elect the is felt, the money can be found." The large, severance is rare. EC for the following year. Transparency GP President maintains in everyday functioning is a critical factor that he has been sensi- contributing to the sustainability of the tive to the issue of the

Society. Each Society has prepared poor families' require- h_ detailed by-laws for efficient functioning. ment for water and their I .X ability to pay for it. In tiw

Local Technical families,order to assistthe theSocieties poorer M Enterprise accept their contribution F _A in installments. In some Societies, the poor are INCE MANY Olavanna resi- given an opportunity to dents work as construction earn wages during the V ; labor in nearby Kozhikode city, construction of the 8 " E they are familiar with the work of laying scheme, that part-funds -< ~ A - - 'vi , pipelines and constructing water tanks. their contribution. How-

This experience has given them the con- ever, it needs to be ' - fidence to undertake the construction of accepted that the really the piped water schemes without techni- poor have not opted for the private Women at the street tap

4 house taps, benefiting 1,362 families. constructed and operated by the IN KAMBILIPARAMBA, the oldest Schemes run by the Olavanna GP KWA. This scheme provided drinking cooperative Society in the Pan- also have registered Societies, which water to 1,600 individuals through choyat, members have installed a function on the same lines as the pri- private connections and street taps. In sensor-based automatic switching vate schemes. These registered Soci- 1990, another KWA scheme was system, which starts the pump when eties plan, design and construct the commissioned, benefiting about the water level in the tank falls be- drinking water schemes. In these GP 1,200 people and a third scheme iow a certain level, and stops when schemes, households contribute was started in 1998, for another full. All expenses, except the salary 25 per cent of the total capital cost of 1,200 persons. The sources of the 3 of the full-time watchman, are met the scheme either in cash, labor or KWA schemes are open wells. These from the interest on the reserve fund land, while the GP provides the 3 schemes are designed to provide in the Society's bank account. remainder. Poorer and low-caste fami- 40 liters per capita per day (lpcdl Members contribute Rs. 25 per lies benefiting from a Panchayat-run drinking water, but cover only 4,000 month for the watchman's salary. scheme are not required to contribute individuals in the GP with a total pop- According to the President of the towards capital costs. Instead, an addi- ulation of 44,398. Kambiliparamba Society, although tional amount ranging from Rs. 300- Of the 45 standposts of the even the watchman's salary could 400 is collected from each of the other KWA, only 25 are being used as be met from the bank account, the contributing beneficiary Families. there is no water in the rest. In addi- Society decided to continue house- Water supply is limited to 2-3 hours in tion, the quality of service is poor hold collections simply to sustain a a day. In the summer months, it is and these schemes become extreme- sense of ownership in each benefi- restricted to only 11/2 hours a day. ly unreliable between the months of ciary household. Once the scheme is constructed, the February and April every year. The beneficiaries contribute towards partial KWA's cost structure made supply to Each household is allowed 400 O&M. Water meters are installed on rural areas prohibitively expensive. liters per day. Water meters are house connections, and Rs. 15-20 iscol- For example, while the GP pcid a installed to check the consumption, and lected per month from each family. pump operator Rs. 450 per month, an excess consumption attracts a penalty at Excess consumption of water attracts equivalent employee of the KWA the rate of Rs. 20 per 1,000 liters. This penalty, as in private schemes. Poorer receives Rs. 10,000 per month is indeed a remarkable achievement, families, who cannot afford to pay the (along with other benefits that are for, not only can the Societies collect capital cost to have household connec- standard for Government employ- the full O&M costs, but they can also tions, instead draw water from street taps ees). As a result, while the average impose such high penalties for excess and pay between Rs.10-15 a month as monthly revenue from the schemes at usage. This is in stark contrast to the the O&M costs. TheGP pays Rs. 450 per best comes to about Rs. 4,000, the experience of the water boards where month towards the salary of the pump average monthly expenditure, mainly meters are tampered, the O&M costs operators and the cost of fuel. The main- towards the salary of operators and not paid and where it would be impos- tenance of the street taps is done by the electricity charges, comes to about sible to regulate and restrict the use of local KWA officials, for which the GP Rs. 20,000. water at critical times. pays the KWA an annual fee of Rs. An important reason for the com- 1,750 per street tap. The GP realizes that munity initiative in Olavanna is that Gram Pan chyat this isa high cost and isplanning to hand this Panchoyat was neglected by the Grain Panchyat- over the entire O&M of the GP schemes KWA as there are no reliable drink- run Schemes to registered Societies of water users, like ing water supply sources that could those which run private schemes. enable the KWA to implement a scheme of a reasonably large size. N ADDITION to the piped water KW A Schemes The KWA is not geared to construct schemes by private Societies, the _and operate small schemes that were GP and the Block Panchayat suitable for this area. This gap could have built 18 piped water schemes so HE FIRST KWA scheme was only be filled by the GP and the pri- far, and 12 more are under construc- commissioned in 1984. It was vate schemes. tion. These schemes provide drinking a small piped water supply The 's water through public taps as well as scheme in the Gram Panchoyat (GP), decentralization plan has devolved

5_-U Comparative Assessment of RWS Schemes in Olavanna Water and Sanitation Program - South Asia PRIVATE GRAM KWA 55 Lodi Estate, SCHEME PANCHAYAT New Delhi 110 003 Per family share in capital cost Rs. 4,500 Rs. 7,000 Rs. 7,000 India (fuI recovery) l25% recovery) (norecovery) Average capital cost Rs. 2.5 lakhs Rs. 3.75 lakhs Rs. 16.8 lakhs Tel: 011-469 0488/9 Per family share in O&M cost (per month) Rs.25-50 Rs. 10-20 Rs. 17 Fax: 01 1-462 8250 (fullrecovery) (75% recovery) (25% recovery) E-mail: [email protected] Average number of house connections 54 52 240 Website: http://www.wsp.org Number of public standposts _ 20 45 (25 inusel

Supply hours 24 hours 2-3 hours Uncerltin & (10 hrs in Apr-May) 1lr'2 hrsin Apr-May) poor service Supply months 12 1 2 8-9 Other Publications Management responsibility Sociey GP KWA in this Small Private

Number of schemes 26 18 3 Initiatives (SPI) (6 under construction) (12 under construct on) Field Note Series:

1. Privatizing the Operation and powers to the GPs. In March 1999, the Therefore, the KWA costs are far higher Maintenance of Urban Water Supply: Government issued an order transferring compared to the O&M costs incurred by The Experience of Ajmer, all RWS schemes to the GPs. The State private Societies for their schemes. Rajasthan, India water utility, the KWA, is now only 2. Sustainable Community responsible for multi-Panchayat schemes. * User management has led to Management of a Multi-village Water This means that the KWA schemes at user satisfaction An interesting facet Supply Scheme in Kolhapur, Olavanna are in the process of being of the sustained service from these . handed over to the GPs. Given the suc- schemes is the absence of conflict that Maharashtra, India cess of the private schemes and the GP might be expected over an issue as 3. Profits from Waste: An NGO-led intention of handing over the GP important as water supply. Local villagers Initiative for Solid Waste schemes to private Societies, the Ola- ascribe this unique feature to the level of Management in Lucknow, vanna President would like to hand over satisfaction provided by the service. Uttar Pradesh, India the KWA schemes to the private Soci- December 1999 eties, with the GP keeping a close eye on * Local expertise By constructing the functioning of the Society. These mea- overhead tanks and piped systems for a This document is a result of a study sures will go a long way in ensuring the community mini-water supply scheme, carried out by the Water and Sanitation Program - South Asia under sustainability of the RWS projects and without outside technical assistance, the the British Government, Department management by the actual users. villagers of Olavanna have demonstrat- for International Development IDFID)- ed that the technology involved in such funded program, "Capacity Building schemes can be demystified and used by for National and Municipal Key Lessons rural households. Decision-makers".

Water and Sanitation Program is an * Willingness to pay The Olavanna * The Panchoyat as a facilitator international partnership to help the GP is unique in that community groups and not provider Perhaps the most poor gain sustained access to have paid 1 00 per cent capital costs, in important lesson of Olavanna is the improved water supply and sanitation addition to 100 per cent O&M costs for demonstration that the GP can effectively services. The Program's main funding partners are the Governments rural water supply schemes. reduce its role from being a passive of Australia, Belgium, Canada, provider of public services and can Denmark, Germany, Italy, Luxembourg, * Private schemes are more cost- instead become a dynamic facilitator for the Netherlands, Norway, Sweden, effective The difference in the O&M communities to take on the responsibili- Switzerland, and the United Kingdom; costs of private schemes and GP-run ties of helping themselves. As a facilita- the United Nations Development schemes is basically due to the differ- tor, the GP is seriously considering trans- Programme and The World Bank. ence in staff salaries (that is, payment to ferring its existing rural water scheme Created by Write Media. E-mail: wrlternedalaevnltn.com the watchmen-cum-pump operators). assets to user groups. Printed at PS Press Servicos Pvt. Ltd.

This reprint September 2000