[Excerpts from a discussion on “Water Community”]
“24/7 Water Supply is too Expensive.”
Monday, March 02, 2009 12:07 PM
The quality of service in urban water supply in most Indian cities remains low, notwithstanding high subsidies and major investments in the sector. Leakage rates are high, most of the poor are not even connected to the water lines, and the rate of water borne disease is among the highest in the world. Further, despite high subsidies, when coping costs are included (household pumps, storage, and treatment, as well as lost time), the real cost to the consumer for this water is often higher than in other Asian countries that offer significantly better service.
To overcome these problems many organizations have sought to increase the water supply available through water tankers and public stand posts. Others have focussed on Point of Use (POU) in-home treatment systems or sought to develop self-sustaining water kiosk systems where residents can purchase 10 litre containers of water at a nominal price. You can read more on the debate at
http://www.solutionexchange-un.net.in/environment/cr/res 16020901.doc
The discussion process
The pros and cons of a 24/7 water supply were discussed at the Water Community’s Annual Forum held on 23-25 July 2008 (for more details please visit ;
http://www.solutionexchange-un.net.in/environment/resource/annual_forum_2008.pdf;
PDF; Size: 600KB)
and it was felt that the discussion should be taken up by the Community. As a follow-up, this discussion will focus on the role of continuously pressurized (24/7) water supply. No longer a “pipe dream”, 24/7 water has been provided in the last few years in Navi Mumbai, Mysore, Badlapur, Hubli-Darwad and Jamshedpur.
Some of the preconceptions I would like to challenge and discuss in response to proposals for 24/7 water supply are:
• “24/7 water supply is wasteful as it requires too much water and would not be sustainable for most Indian cities”
• “24/7 water is too expensive for India. The poor can’t afford it and the rich don’t need it”
• “24/7 water supply, even if it could be achieved, would be inequitable to the poor, far better to ration water by hours of supply so that rich and poor alike have equal access”
• “24/7 water supply is a needless luxury good, no one needs water 24 hours per day”
I will like to discuss each of the issues around 24/7 water supply, given above, to determine if they are genuine obstacles, major but surmountable challenges, or only simple misunderstandings.
“24/7 Water Supply is too Expensive.”
Background: To the extent that continuous (24/7) water supply is even recognized as being technically possible, it is normally associated with wealthy countries like the U.S., Japan or the U.K. and/or wealthy individuals. Therefore, according to this line of reasoning, 24/7 water is only possible for the rich.
This kind of thinking certainly has logical appeal. If 6 hours of water per day is barely affordable, for example, then obviously 24 hours per day would cost 4 times as much and would be well out of the reach of most people in a poor country like India. Perhaps one day when India also becomes a wealthy country then 24/7 water would also be possible.
I seek the Community’s inputs on the following:
1. What do families with and without a metered connection pay for water (including water bills plus in home storage, pumping and treatment)?
2. What does it cost (per kilolitre of water) to produce, treat, and distribute this water and how much is recovered through user fees?
3. What are the other implications of intermittent water supply, e.g., impact on health, incomes, standard of living, etc?
The results of this discussion will feed into the on-going policy debate at the Administrative Staff College of India and help us to develop a framework on continuously pressurized water supply for cities.
DAVID FOSTER
Centre for Energy, Environment, Urban Governance and Infrastructure
Administrative Staff College of India (ASCI), Hyderabad, Andhra Pradesh
Email: dafoster@aol.com
Monday, March 09, 2009, 9:37 AM
I was fortunate to hear the presentation from David Foster on the Hidden Costs and benefits in Water Supply leading to the argument for cities to have 24X7 water supplies in India. The argument is well crafted – David Foster made us calculate how much does it cost for the poor to get water from a far off place (rather than having water from their tap – most probably 24X7) and the graph automatically calculated that rich are paying far less than the poor that poor pays more, that an improved water supply will decrease the health burden, etc.
Well, this argument is nothing new and anyone who is working in Urban WatSan wouldn’t differ from the argument that a larger proportion of poor person’s income goes in getting access to water supply and that there are many advantages for having water supply and safe sanitation bordering on health and other related benefits. However, there are issues of the affordability of the poor for an improved water supply. When David calculated the cost of water that poor pay using a simplistic estimate based on the cost of fetching water being equated with wage rate employment, one wondered how to calculate the opportunity cost of the poor from gainful employment.
People live in low income settlements without access to water and sanitation only because they can not afford to live in settlements where accessing these basic services cost. They can not afford largely because they do not have opportunity for gainful employment. How could we equate daily wage of a woman if there are no opportunities for her to be gainfully employed? There are other issues of city wide pipe systems not being strong enough to supply 24X7 water. Engineers at the workshop, debated that the infrastructure in Indian cities are not equipped to handle 24X7 water supply and that a superior system (city wide) needs huge investment where will this money come from? People like Dr. Avinash Jutshi and Dr. Kulkarni (of Bhagirathi) argued on these lines.
Another issue was the comparisons of Delhi and Paris which gets 250 and 150 lpcd respectively but the hours of water supply varies between one to 24 hours respectively. So a 24X7 water supply can happen even in 150 lpcd scenario and when Paris can do this, why cant Delhi? Now, there was almost an agreement that even the government system doesn’t know the calculation of water demand and supply in any city – I wonder who calculated 250 lpcd water supply in Delhi and how? Is it as simple as water supply divided by population? If yes, then what about productive use of water other than domestic sector? What about non-revenue water? Has that been taken into account? Organisations like Parivartan have argued that the total water supply in Delhi is much less than 250 lpcd as claimed and it is mainly due to accounted water. Does comparing two cities with different agro-climatic conditions, water availability and management scenarios and different history of economic development proves the case?
Despite these issues, I support David Foster’s argument that we need 24X7 water supplies for the obvious reason that there is no harm in thinking of a superior system. So where is the problem? Dr. Foster raised number of myths which go against the argument of having 24X7 water supplies. These myths are also listed in his 4 statements that he has provided us for discussion.
I asked him to let us know which cities in India or South Asia have implemented the idea of 24X7 water supply and what evidences we have if this has worked well there. From my understanding, I do not know any well operational city-wide initiative for 24X7 water supplies in India. JUSCO’s example was given as a passing remark where this has been achieved. Having been born and brought up and being connected to Jamshedpur, I do admire the status of basic services there, but we shouldn’t forget that it is a planned city where people are directly related to one establishment (Tata Group of Companies) and that makes the service much easy. However, even in JUSCO operated areas, the unaccounted water is about 20%. JUSCO doesn’t operate in entire Jamshedpur city but only in the areas which is controlled by Tata. The moment you go out of JUSCO area, there are problems of water supply. If JUSCO can make it happen in their area so efficiently and with profit, why can’t they extend the same services in areas outside Tata town? At a conceptual level and for academic discussions, 24X7 water supplies definitely is a good idea but the fallacy lies in the concerns that lead to non-operationalisation of this idea. 24X7 water supply in India is not devoid of issues of governance, inequity, urban planning, decentralization, integrated planning and urban poverty.
To many people I spoke to in the workshop, the apprehension was of the back door entry of privatization of utilities in the name of 24X7 water supply and the urban poor. I have very limited understanding on this issue, but I would like the group to keep me and others informed on the policy prescription that follows the agreement on a city-wide 24X7 water supply arrangement. I would be happy to know that the policy prescription of 24X7 water supplies actually doesn’t lead in favour of the privatization of utilities.
Further, Prof. Srinivas Chary of ASCI, who was chairing this interesting session, informed the group that the idea has been tried in Mysore, Latur, Hubli, and Dharwar (cities of India) and that it is working well. I should stand corrected if I got this wrong from Prof Chary but if it is true, I would be glad if the group shares their experiences and the nuances of how is this noble concept has been working in these cities and what benefits poor have been extended to.
ANJAL PRAKASH
SaciWATERs
Secunderabad
Thursday, 12 March 2009
The simple model Anjal is referring to is available at the same website that I mentioned earlier: www.indiawaterportal.org/blog/2008/02/09/ on-the-hidden-cost-of-free-water/. As Anjal rightly says, this is primarily a means of reminding the critics that so called “free water” can be pretty expensive. This is true whether the person carrying the water is a young girl who should be in school or an adult trying to exist on a severely limited income. The “opportunity cost” is simply your best estimate of what they could do with the time saved and its value.
Anjal is also correct in saying that there were serious questions as to whether Indian cities could provide the infrastructure for 24/7 water. When it was pointed out, however, that cities in Afghanistan, Cambodia and Uganda have provided this level of service, then most participants began to think that India could do this also. Likewise the examples from Jamshedpur, Hubli, and Navi Mumbai further caused participants to recognize that 24/7 need no longer be a pipe-dream.
Anjal was not alone in being surprised that Paris has long provided 24/7 service with only 150 LPCD while many cities in India produce far more than this and still provide only a few hours of service per day. This confirms that for most cities it is not the just quantity of water but the quality of the management.
Although there is still limited experience in India with 24/7 supply, experience from other countries clearly demonstrates that this service can be provided in old as well as planned cities, rich and poor communities, and in countries with both limited water supply and those with abundant water supply. Furthermore, even the limited experience in India already demonstrates that 24/7 supply can be provided in slum areas at affordable rates.
Finally regarding the question of links between 24/7 water supply and privatization, there are plenty of examples of both public and private 24/7 systems. The answer is that the hours of supply per day do not dictate the form of ownership. The highly regarded system in Singapore is public while the one in Paris is private. Most urban water systems in the UK are private while most of those in the U.S. are public. These decisions regarding ownership of water supply grew out of the local history, culture, and systems of governance but the real issue is not whether the system is public or private but, whether it is efficiently managed and provides safe, sustainable, and affordable water to all.
DAVID FOSTER
Centre for Energy, Environment, Urban Governance and Infrastructure
Administrative Staff College of India (ASCI), Hyderabad, Andhra Pradesh
Email: dafoster@aol.com
Friday, March 13, 2009 5:02 PM
On calculating how much does a bad water supply costs the poor, I have no disagreement. There is a large pool of literature especially from political economists critiquing opportunity cost theory and on the reductionist idea of equating things in mere economic terms. The point is that if we calculate the cost equated in economic terms, we cannot justify the equation because there is no definite cost that can be associated with a person without understanding the opportunity they have. For anyone who is not convinced that the poor pay more for basic services proportionate to their income, this argument is fine in a simplistic format just to make them understand, but there are problems in applying this argument for more concrete understanding of life and society. As I had previously stated, 24X7 Water Supply is a superior form of service and we should go for it. The question now is to see where and how do we do this and what safeguards the poor shall have in this ‘superior’ model of water supply. The hitch lies in there.
I am happy to hear that Afghanistan, Cambodia and Uganda have provided the 24X7 water supply probably to its urban centers. I have limited exposure in this particular area and so I need to know more on how it was achieved, for how long are they running it, and what implications it has on the poor. If the poor and the marginalized have got 24X7 access to water supply without ‘paying’ more than they used to pay before, I would be most happy to hear that. The problem is that most of the documents don’t give us a clear picture on how the poor have benefited by the water sector reforms in any of these countries. If you have literature that has supported this from the poor’s perspective, let’s share this in the public domain and further our discussion from there.
Each case, I am sure, will be unique with different political economy at play. Painting them with one 24X7 brush is something, I would be very careful about. Citing cases will not help unless each case is read and discussed. This is mainly because your argument is coming from poor’s perspective and not much on efficiency standpoint which was largely the case sometime before and have been contested quite heavily. I have already written about Jamshedpur’s case which I know about personally …this is quite different from the WSP’s documentation and portrayal of JUSCO’s case and this is the perspective one is talking about. I am not sure about Hubli and Navi Mumbai, so I had requested the group to give us a feedback especially from their professional experience in working closely at these places. We still don’t know what benefits the poor got in Hubli (Navi Mumbai will be a different case), Dharwar, Latur, etc.
On comparing Paris with New Delhi, the point was to be careful in assessment when two cities have different levels of economic development, agro-climatic conditions, and water use scenarios, etc. Paris can have 24X7 water supply because it is not New Delhi and vice versa. Why is Paris not New Delhi is a question well understood. The point is that each country is different (as they operate with different political economy) and within a country, each city is different. They need to be understood in a context. We do not have much success on 24X7 in India and we can only learn from other countries which match our criteria (definitely not Paris!). How do we do this? The answer is much localized especially in India where water is a state subject and each state has its own track record of service delivery. However, my question was also on the claim that “24/7 supply can be provided in slum areas at affordable rates” in India. We need to know the evidence of how it has been done. Since you are researching on this issue currently, I look forward to receiving some literature on this to examine how the poor has been benefited.
My point concerning the poor being benefitted is repeated because you are entering 24X7 water supply from this route so, I consider ‘benefits to the poor’ as the entry point and having 24X7 water supply to a limited area as the criteria of success. Let’s scan the interventions from this perspective and take the argument ahead. I am sure privatization agenda will have a lot to contribute against the “benefits going to the poor”. Finally, on hours of supply not being dictated by forms of ownership (read privatization),
I must inform the group about a study done by WaterAid in 2005, “Implementation of Asian Development Bank’s Water Policy in India”. A three-country study (Bangladesh, India, and Nepal) provided an independent input for the ADB’s own initiated Water Policy Implementation Review. WaterAid, as part of a “knowledge partnership” with ADB, conducted this study during 2005 (with funding support from ADB). I need not say here what ADB stands for in utilities all over Asia, as it is self evident. The study involved active engagement with a range of researchers, NGOs, sector specialists, and the ADB staff (so don’t reject this as critique by CSOs) in India. This study covered four Integrated Urban Development projects, at different stages of implementation, in three states (Karnataka, Rajasthan, and Madhya Pradesh) with a close look at the access of sustainable water and sanitation services for the urban poor. The study reveals a low level of implementation with regard to developing a comprehensive water policy, promoting accountability and autonomy of service providers and strengthening women’s ability to participate. Medium level of implementation is evident in participation of the poor and addressing their needs, optimization of agency functions, promotion of sustainable plans for capacity building, developing and adoption of water action agendas and encouraging involvement of civil society and adoption of cost recovery mechanisms.
The debt analysis of the cases shows that there is complete divergence between pre-feasibility projects and actual policies followed by the ULBs on tariff revision. Feasibility studies have made unrealistic projections and recommended tariff rises of nearly 8.4 times. Cost recovery on capital costs and O&M is being attempted, further burdening cities and overstepping ADB’s water policy regarding cost recovery. ULBs have not been involved in making financial projections.
Kindly check out the following documents for reference on the above: http://www.wateraid.org/documents/plugin_documents/adb_water_for_all .pdf and
http://www.wateraid.org/documents/plugin_documents/adbbook_1.pdf
ANJAL PRAKASH
SaciWATERs
Secunderabad








