Yemeni-German Technical Cooperation - Water Sector Program


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Component 3 - Development of Independent and Commercialized Urban Water and Sanitation Utilities

Context
In numerous regions of Yemen, drinking water supplies and sanitation are inadequate. The responsible state-run sector organisations, as well as the water and sanitation utilities, frequently lack the management and operating capacity they need. Around 56% of the urban population nationwide has access to public water supplies, and around 31% to public wastewater disposal. In addition, more than half of the urban population (sometimes also those having access to network but not receiving enough water supply) has to meet its supply needs privately through hygienically unsafe and expensive means. The Government of Yemen has been pursuing a reform process since 1997 which includes decentralization, commercialization, community participation and the expansion of public water supply and sanitation. Establishing decentralised structures and mainstreaming them in both civil society and the political sphere has led to clear improvements in operations management. The launch of the National Water Sector Strategy and Investment Programme, 2005-2009 (NWSSIP) marked the emergence of the strategic framework conditions needed for future development of the urban water sector. This essential effort of providing consistency and cohesiveness to the Water sector is pursued with the updated version of NWSSIP, which adoption is expected soon at the date when this text is written.

Component 3 of the Water Sector Program: Development of autonomous and commercial water and sanitation utilities
The Component is helping water utilities to develop efficient organisational structures, to establish sound business procedures and to improve customer relations management.
In addition, public awareness campaigns and stakeholder participation are being supported. Furthermore, advisory committees and boards of directors are being encouraged to become involved in supervising water utility investments and operations.

The Water Utility Component supports water utilities through consultancy services, facilitating the exchange of know-how among the water utilities, and the following-up of issues with the Ministry of Water and Environment (MWE) and the Central Organisation for Control and Auditing (COCA). Public awareness campaigns are being designed and implemented in collaboration with local stakeholders at water utility level, including local NGOs.

Currently 17 water utilities are being supported. The scope of support ranges from regular follow-up visits to intensive capacity-building programmes.
The Component is active in all cities where KfW (the German Financial Cooperation) finances infrastructures – and in other towns upon request of the ministry -. Financial and Technical cooperation come hand in hand to obtain a multiplying effect in the field, thanks to improved infrastructures and improved management.

Summary of the past achievements:
Phase I – July 2006 to June 2009

Drawing on the experience and achievements of the past individual projects elaborated by GTZ (in the fields of water utility managements, business operations, stakeholder participation through formation of advisory committees or board of directors, public awareness and customer relations management), the program “Institutional Development of the Water Sector” started in 2006, structured in 3-year long phases. The first phase was completed in June 2009.

Many of the supported water utilities are undergoing a process of restructuring the organisation and redesigning core business procedures to improve operations and service delivery. The Water Utility Component has helped to establish a sound administrative and financial management. In addition, advisory committees and boards of directors are trained and empowered. Furthermore, community mobilizing workers (CMW) are trained and assisted to arrange and to conduct public awareness campaigns in order to inform the local population about water supply and sanitation.
More than 10 years of collaboration in the field of water utility support have resulted in substantial decentralisation and commercialisation of the urban water supply and sanitation sector. NWSA – the previous central supply authority – is responsible for only less than 5% of the urban population. Water utilities which have received financial support for infrastructure investment and long-term capacity development from the German side show good to outstanding performance. In 2008, it was estimated that around 2.5 million people, some 50% percent of whom are classified as poor, have gained access to reliable urban water supply. More than 4.5 million people benefit from improved water utility operations supported by the Water Utility Component.

In a challenging environment, results were obtained in terms of cost recovery for the utilities (10 of the water utilities supported manage today to charge their service to a level that allow them to cover more than 90% of their costs), of diminishing of the customers complaints (although the support provided in terms of public awareness and customer dialogue leads initially to a sharp increase in the in complaints because customers only now have the chance to communicate with the water utility), of collection efficiency (5 of the water utilities supported have a collection efficiency of more than 95% and 6 other utilities have a collection efficiency between 80 and 95%), reduction of the Non Revenue Water – the losses due to technical or administrative reasons (in the three cities supported on the that matter – Sanaa, Aden and Ibb - NRW are currently estimated at a level of 33% on average).

A large customer satisfaction survey was held in 2008 in seven towns. The findings from the survey show that 69% of the target groups are satisfied with the situation of water services in general. This result is used to monitor one of the overall indicators which is “at least 75% of target group positively assess the water supply and sanitation situation in the project area by 2015”.

Phase II – July 2009 to June 2012
Phase II has started in July 2009. It pursues and consolidates the activities started during the first phase.

Objective
The operational efficiency of water and sanitation utilities has improved.

Indicators / Phase II

  • Increase in the number of water utilities with a cost recovery rate of 90 % (target figures to be specified after sites have been selected for new investments under the PTOP Program, co-financed by KfW and the Government of Yemen)

  • Decline in customer complaints (target figures to be specified after sites have been selected under PTOP)

  • The number of water utilities operating under a business plan (as per NWSSIP) has increased from 0 (2009) to 7.

  • At least 3 water utilities run at least 5 core business processes based on a GIS operational management system (business audit).

Counterpart Organization
Ministry of Water and Environment

Partnerships
Water and Sanitation Utilities, National Water and Sanitation Authority (NWSA), Central Organisation for Control and Auditing (COCA), the World Bank, Charitable Society for Women Development/NGO, KfW Development Bank, German Development Service (DED), CIM, InWent, ACWUA (Arab Countries Water Utility Association)

Contact Persons
Name: Guillaume Merere / Team Leader
Office: + 967 1 335 036 / 37 / 38, ext 111
Fax: +967 1 231 412
E-mail: guillaume.merere@giz.de

Name: Eng. Zeyad Shawagfeh / Senior Advisor: Utilities Management
Office: +967 1 335 036 / 37 / 38, ext 119
Fax: +967 1 231 412
E-mail: ziad.shawagfeh@giz.de

Name: Saleh Hakami / Senior Advisor: Stakeholder Dialogue – Public Awareness
Office: +967 1 335 036 / 37 / 38, ext 115
Fax: +967 1 231 412
E-mail: saleh.hakami@giz.de
 

Water Sector Factsheets
Detailed Information about the Yemeni-German Water Sector Program and its Components.
Download English Version, 1,1 MB, PDF
Download Arabic Version, 1,1 MB, PDF

The Components:


Consolidation of Sector Reform in
Urban Water Supply and Sanitation
more


Human Resource Development
in the Water Sector
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Development of Independent and
Commercialized Urban Water and
Sanitation Utilities

more

Decentralization of Water Resources Management
more

Strengthening Local Actors in Arid
Areas for Sustainable Water use at the Community Level in Amran

more



Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH