WOPs: how to make them even better?

Transformation into bankable formats

A.Thawe, K.Schwartz, S.Veenstra and M.Pascual

30 May 2013

UN Advisory Board on Water and Sanitation

“Cooperation based on knowledge transfer between water operators is a useful supporting mechanisms to strengthen the capacity of public water operators – Water Operator Partnerships”

(UNSGAB, Hashimoto Action Plan, 2006)

A water board that wants to

improve

can either delegate its management or

…or partner and get on track

Water Operator Partnership

Private Sector Service Contract with Lilongwe and Blantyre Water Board

Local partners: NGOs and Water Boards

Service Contractor: consortium of an Operator, a NGO and an Engineering Consultant

Private Sector Service Contract with Lilongwe and Blantyre Water Board

Private Sector Service Contract with Lilongwe and Blantyre Water Board

Financer: EU Water Facility and EIB (mix of grant and loan)

Performance Based Service Contract

Source: Janssens 2010

The Service Contract Contract Period: 2009- 2013

• Investment component of € 25 million

• Operator partnership € 3.5 million

• Performance Based Fee (KPI driven): € 1.5 million

Evaluation of the partnership

• The strategic agenda of the Water Board may not always be identical to that of the Service Contractor

• Performance management within a Water Board is a response to governance regulation, not driven by performance based contracts

• Personnel management is an essential element of a water utility and is never to be outsourced to other parties (contractor, consultant, or partner)

Capacity Development as Agent for Change

• Establish water governance based on a transparent, accountable and competitive “enabling environment” for service providers

• Transform service providers to be accountable not for “input driven efforts” but for “impact based results”

• Strengthen HR Departments to maximize the potentials of available human capacity (skills, experience, knowledge, and personal drive)

CD at three conceptual levels

Focus in Capacity development

• Encouraging Leadership

• Delegated Management

• Stimulating HR policies

• Bridge generation gap

Purpose of 5th Symposium

Thank you for your attention.

Andrew ThaweCEO Blantyre Water Board

athawe@gmail.com