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Toolkit: Approaches to Private Participation in Water Services. Module 3 Involving Stakeholders in the design of the Arrangement. Introduction: Navigating through this E-Learning Module. E-learning design: [email protected]. Elements of the Toolkit. 1 ConsideringPrivate - PowerPoint PPT Presentation
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Toolkit: Approaches to Private Participation in Water Services
Module 3
Involving Stakeholders in the design of the Arrangement.
Introduction:
Navigating through this E-Learning Module This is one of 9 Toolkit e-learning Modules. Each Module is created in PowerPoint, and you advance through the Module by pressing the right arrow or ‘Enter’ button. Core Module: The Module takes you sequentially through four or five major issues, depending on the Module. The progress through the Module is shown by the colored area on a logo on the top right hand corner of each slide. Here is an example: Supplementary Content: The Core module covers all key issues. However, you can choose to access additional information. These supplementary slides can be accessed by passing the cursor over colored buttons. The button colors relate to issues of various levels of detail:
Navigation through the supplementary material is also by pressing the right arrow or ‘Enter’ button. At the end of each section you will return automatically to the core Module. However, there is an extra button (to pass over) on the top right hand of each supplementary page that gives you the option of a shortcut back to the core Module:
Basic Concept Detail
Expert insight
Supplementary Information / Case studies
Back to Module
E-learning design: [email protected]
Elements of the Toolkit
TOOLKITTOOLKIT
1ConsideringPrivate Participation
2Planning the Process
5Standards, Tariffs, Subsidy, Financials
4Setting Upstream Policy
3Involving Stakeholders
6Responsibilities & Risks
7Developing Institutions
8Designing Legal Instruments
9Selecting an Operator
Additional MaterialCD-ROM
Appendix BPolicy Simulation
Model
Appendix AExamples of PP Arrangements
General Outline of Toolkit
TOOLKITTOOLKIT
1ConsideringPrivate Participation
2Planning the Process
4Setting Upstream Policy
3Involving Stakeholders
6Responsibilities & Risks
7Developing Institutions
8Designing Legal Instruments
9Selecting an Operator
Additional MaterialCD-ROM
Appendix BPolicy Simulation
Model
Appendix AExamples of PP Arrangements
Module 3
5Setting Service
Standards, Tariffs, Subsidies &
Financial Arrangements
Module 3
Involving Stakeholders in the Design of the
Arrangement
Module 3 - What will we learn?
How will we identify important Stakeholders?
How should we deal with different Stakeholder groups?
What is the best strategy for involving Stakeholders?
Who will ‘win’ or ‘lose’ under the Arrangement?
Module 3Involving Stakeholders in Design
THE ARRANGEMENT
IDENTIFY Stakeholders
DEVELOP Communication
Strategy
INTERACTwith
Stakeholders
Satisfactory outcome
In this Module we look at the issues that Governments need to address in order to involve Stakeholders in Private Particpation Arrangement design.
Government needs to consider the interests of the different stakeholders
Government will benefit from engaging with the Stakeholders:
through better Arrangement design,
through the fact that Stakeholders have participated in the design, and their views have been sought and understood.
Module 3Involving Stakeholders in Design
“In designing the Arrangements the Government needs to consider the interests of different Stakeholders”
Need: To consider the interests of the different stakeholders
Benefits: Engaging with the different groups will ensure that views are understood, and that stakeholder participation in the design is recognized.
Trade-offs: Some interests will conflict:
There is a need for the Government to trade-off competing interests
The better the Arrangement, the easier the trade-offs.
Arrangement Design: Designing the new Arrangement generally increases the size of the ‘pie’, making it easier to find acceptable ways to share. Government has to survey and consult to see:
What people want? What people will pay for services?
Module 3Involving Stakeholders in Design
“In designing the Arrangements the Government needs to consider the interests of different Stakeholders”
Need: To consider the interests of the different stakeholders
Benefits: Engaging with the different groups will ensure that views are understood, and that stakeholder participation in the design is recognized.
Trade-offs: Some interests will conflict:
There is a need for the Government to trade-off competing interests
The better the Arrangement, the easier the trade-offs.
Arrangement Design: Designing the new Arrangement generally increases the size of the ‘pie’, making it easier to find acceptable ways to share. Government has to survey and consult to see:
What people want? What people will pay for services?
Some Examples:
What level of service do people want?
How much are people willing to pay for new connections?
Given different costs, what type of connections do they want?
Module 3Involving Stakeholders in Design
“Engaging with Stakeholders offers two additional advantages………”
Analysis based on the consultation may show Government better ways to design, with a more equitable distribution of costs and benefits
Perhaps too many costs imposed on poorer groups the Government wants to protectPerhaps too many costs imposed on groups that could block the reforms
Not all groups will benefit as well as they hope for. Their support is more likely if they feel that the design and implementation of the Arrangement is ‘Legitimate’. One way is if they see through the consultation process that all is transparent and fair, and peole understand the objectives of the reform
Note: Legitimacy is an issue covered in Modules 7 (Tariff resets) and 9 (Contractor selection)
Module 3Involving Stakeholders in Design
THE ARRANGEMENT
DEVELOP Communication
Strategy
INTERACTwith
Stakeholders
Satisfactory outcome
THE ARRANGEMENT
DEVELOP Communication
Strategy
INTERACTwith
Stakeholders
IDENTIFY Stakeholders
IDENTIFY Stakeholders
Identifying Stakeholders“The first step is to identify important Stakeholders”
Any group that asserts an interest can be a Stakeholder, but only some groups will do so. Other groups that might be overlooked will need to be sought out, including:
Unconnected poor, women, alternative providers ( such as standpipe operators)Women’s groups and community organizations may open the path to other consumers with special needsInternational specialist water operators are obvious contacts, but local financiers, firms and agencies should be considered
A communications needs assessment may be required to further identify the stakeholders
It may help to extend Government consideration beyond the obvious contactsIt can help to identify prevailing concerns about privatization and water services, and possibly offer ideas on potential ways forward
Examples of some potential Stakeholders:
Consumers
NGO’s
Workers
Private Firms and Financiers
Alternative Providers
Opinion Leaders and other Politicians
Media
Module 3Involving Stakeholders in Design
DEVELOP Communication
Strategy
Satisfactory outcome
THE ARRANGEMENT
DEVELOP Communication
Strategy
INTERACTwith
Stakeholders
IDENTIFY Stakeholders
IDENTIFY Stakeholders
Identifying Stakeholders“The first step is to identify important Stakeholders”
Any group that asserts an interest can be a Stakeholder, but only some groups will do so. Other groups that might be overlooked will need to be sought out, including:
Unconnected poor, women, alternative providers ( such as standpipe operators)Women’s groups and community organizations may open the path to other consumers with special needsInternational specialist water operators are obvious contacts, but local financiers, firms and agencies should be considered
A communications needs assessment may be required to further identify the stakeholders
It may help to extend Government consideration beyond the obvious contactsIt can help to identify prevailing concerns about privatization and water services, and possibly offer ideas on potential ways forward
Examples of some potential Stakeholders:
Consumers
NGO’s
Workers
Private Firms and Financiers
Alternative Providers
Opinion Leaders and other Politicians
Media
Examples – more detailLa Paz & Cochabamba
“Can more Consultation help?”
Stakeholder Identification & Composition
Module 3Involving Stakeholders in Design
INTERACTwith
Stakeholders
Satisfactory outcome
THE ARRANGEMENT
IDENTIFY Stakeholders
DEVELOP Communication
Strategy
DEVELOP Communication
Strategy
Developing Strategy for Involving Stakeholders
“Consultation may show better ways to design, and get support”
Acquiring expertise for the engagement
Acquiring expertise for the engagement
Types of Interaction with Stakeholders
Types of Interaction with Stakeholders
Many ways to involve stakeholders, depends on objectives, type of Arrangement and other factors5 main types of interaction: Collecting and providing info, consulting, deciding and acting togetherSeveral different ways of communicating with shareholders, according to situation
Developing Strategy for Involving Stakeholders
“Governments need to think about the types of interaction, and expertize needed”
Acquiring expertise for the engagement
Acquiring expertise for the engagement
Types of Interaction with Stakeholders
Types of Interaction with Stakeholders
Many ways to involve stakeholders, depends on objectives, type of Arrangement and other factors5 main types of interaction: Collecting and providing info, consulting, deciding and acting togetherSeveral different ways of communicating with shareholders, according to situation
Developing Strategy for Involving Stakeholders
“Governments need to think about the types of interaction, and expertize needed”
4 Ways of Communicating
5 Main Types of Interaction
Acquiring expertise for the engagement
Acquiring expertise for the engagement
Types of Interaction with Stakeholders
Types of Interaction with Stakeholders
Specific skill sets needed, that may not exist within Government
Different kinds of interaction needs depend on type and scale of the project
Designating a communications manager as focal point is of advantage
Developing Strategy for Involving Stakeholders
“Governments need to think about the ……………….. expertize needed”
DIFFERENT SKILLS:
Community Development Specialists can help engage poor communities
Survey Experts gather facts in a quantifiable way
Communications Experts help to publicize and explain proposals
Depending on project size, several specialists may be employed
COMMUNICATIONS MANAGER:
Acts as focal point
Needs to be well briefed by the Team
Ensures effective communication about objectives and Government policy
Alerts Team to potential problems or benefits of the proposed Arrangement
Ensures sequence and method of communications
INTERACTwith
Stakeholders
INTERACTwith
Stakeholders
Interacting with Stakeholders
DEVELOP Communication
Strategy
Satisfactory outcome
THE ARRANGEMENT
IDENTIFY Stakeholders
DEVELOP Communication
Strategy
The appropriate approach with each group of Stakeholders depends on a number of variables, including:
The Group’s capacityUnderstanding of Private ParticipationThe ways that social, political and economic climate affect Group
Interacting with Stakeholders“The appropriate approach with each group of Stakeholders must be varied”
Some potential Stakeholder Interactions:
Customers
NGO’s
Workers
Private Firms and Financiers
Alternative Providers
Opinion Leaders and other Politicians
Media
Interacting with Stakeholders“The appropriate approach with each group of Stakeholders must be varied”
Some potential Stakeholder Interactions:
Customers
NGO’s
Workers
Private Firms and Financiers
Alternative Providers
Opinion Leaders and other Politicians
Media
THE ARRANGEMENT
Involving Stakeholders in Design
Satisfactory outcome
IDENTIFY Stakeholders
DEVELOP Communication
Strategy
INTERACTwith
Stakeholders
THE ARRANGEMENT
Satisfactory outcome
Government can use the information from Stakeholders to make estimates of the effects of Arrangements on the different groups.
Whilst net benefits may be expected, it is necessary to review the effect on each of the different groups, and balance the interests of the ‘winners’ and ‘losers’ in the final design
It is possible to establish a quantitative ‘policy model’ approach to help in this task.
Winners & Losers under different options
“Winners & losers can be identified and gains & losses estimated. If necessary the Arrangement can be redesigned to take account of this.”
Introduction of Private Participation reform is on the basis that there will be net benefits to the community. This means that benefits for the ‘winners’ outweigh costs borne by the ‘losers’.
In principle, it may be possible to distribute benefits so that no group loses.
In practice, Governments may wish to support one or more groups such as the disadvantaged poor or politically influential groups (water workers, major water users etc.)
Example: Unconnected poor expected to gain from service expansion. Existing customers might be expected to pay increased tariff and, unless services improve, they will ‘lose’. Government needs to quantify the situation, and use the information to adjust the design as necessary. In this case, the redesign could include a subsidy to the poor.
“A quantitative approach may be used to evaluate the social and economic impact of the Arrangement, and help to simulate the potential effects ”
Winners & Losers - Policy Simulation
“Social impact modeling can establish the different stakeholders. The Toolkit Policy Simulation Model quantifies the effects with different scenarios”
Household Survey Current Service Willingness to pay Income
Household Survey Current Service Willingness to pay Income
Predicted change in welfarePredicted change in welfare
Service ScenariosService Scenarios Tariff ScenariosTariff Scenarios
Typical households/stakeholders
Step 1 - Identify current parameters for various Household/Stakeholder types.
Might include: Middle class household / registered pipe connection Low income household / registered pipe connection Low income household / illegal connection Unconnected household / water standpipe Workers Taxpayers funding any subsidies Other important groups
Step 1 - Identify current parameters for various Household/Stakeholder types.
Might include: Middle class household / registered pipe connection Low income household / registered pipe connection Low income household / illegal connection Unconnected household / water standpipe Workers Taxpayers funding any subsidies Other important groups
Step 2 – Model Service and Tariff Scenarios.
For each Scenario the model predicts net impact on the welfare of each typical Household or Stakeholder types
Estimates additional value placed on each service
Subtracts any increase in bills from the Scenario’s tariff increases
Step 2 – Model Service and Tariff Scenarios.
For each Scenario the model predicts net impact on the welfare of each typical Household or Stakeholder types
Estimates additional value placed on each service
Subtracts any increase in bills from the Scenario’s tariff increases
Step 3 – Evaluate change in welfare across the different Groups
The Toolkit Policy Simulation Model uses a simplified and stylized form of this analysis.
It considers: The currently connected The currently unconnected
Assumes: How much the unconnected have to pay for their water Willingness to pay for better services
The model predicts the effects of reform on both Groups
Step 3 – Evaluate change in welfare across the different Groups
The Toolkit Policy Simulation Model uses a simplified and stylized form of this analysis.
It considers: The currently connected The currently unconnected
Assumes: How much the unconnected have to pay for their water Willingness to pay for better services
The model predicts the effects of reform on both Groups
Reviewing Module 3
The Arrangement
Identify Stakeholders
Develop Communication
Strategy
Interactwith
Stakeholders
Satisfactory outcome
‘The Module has looked at the whole range of Stakeholder communication issues in Arrangement design………….’
More Information: Module 3
More information Involving Stakeholders: Advantages of involving stakeholders: Cabanero-Verzosa and Mitchell 2002, Plummer 2002, Trémolet and Browning 2002, and Water and Sanitation Program 2002b. Consultation techniques and stakeholder interaction: Asian Development Bank 2002 (pages 25 to 29), Mukherjee and van Wijk 2003, Plummer 2002, Plummer and Nhemachena 2001, PPIAF and Water and Sanitation Program 2002d (Chapter 6), Sohail 2003, Wilcox 1994, and World Bank 1996. Sustainable partnerships with NGOs and community organizations: Trémolet and Browning 2002 and Trémolet and others 2004. Engaging the media: Osborne 2003 Household surveys: Hanley and others 2001 and Whittington 1998. Engaging the media: Osborne 2003. Interacting with workers: Chong and Rama 2000, Idelogovitch and Ringskog, 1995, Kikeri 1998, PPIAF and World Bank 2004, and Rama 2000. Advisor support for consultation and effective communication campaigns: World Bank Development Communications webpage “Publications and Articles” available at http://www.worldbank.org/developmentcommunications/Publications/publications.htm Quantitative analysis of impacts on stakeholders: Catalyst Solutions in association with Castalia 2003 and van den Berg 2000.
Supporting Material
• The Toolkit Financial Model• Toolkit Case Study material• Toolkit Website:
http://rru.worldbank.org/Toolkits/WaterSanitation/• For comments or further details contact Cledan Mandri Perrott at
Toolkit: Module 3
End of Module
Toolkit: Module 3
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