What is the best way forward for improving the provision of drinking water and sanitation facilities? This study, by the United Nations Research Institute for Social Development (UNRISD), assesses the situation in four cities in Maharashtra state in India. It suggests that the state has both positive and negative experiences with private sector participation and private-public partnerships
Maharashtra is the first state in the country to prepare a White Paper on the state of the drinking water supply programme and to initiate institutional reforms with a view to improving the performance of local bodies that are responsible for provision of drinking water and sanitation facilities. The State Government has facilitated the reform process by bringing out enabling orders and actually implementing them in the field. Maharashtra state has both positive and negative experiences with private sector participation and private-public partnerships, in the water sector and other sectors as well. In order to encourage Urban Local Bodies (ULBs) to improve the efficiency of their water supply systems, the State Government provides incentives of capital grants and guarantees for loans for water supply schemes.
In June 2001, the State Government issued guidelines for private sector participation in urban water supply and sewerage. The guidelines indicate that many aspects of the existing schemes could be managed more efficiently with private sector participation (PSP) such as metering, billing and collection. The ULBs of Pune, Sangli, Nagpur and Thane in Maharashtra have made efforts to improve water supply systems.
- All four cities have relatively well managed civic bodies, and have involved the private sector in some aspects of water supply and distribution.
- In addition, in Pune and Sangli, attempts were made to issue contracts for privatisation of the entire distribution system.
- In Nagpur and Thane, innovative measures were taken to improve the existing systems.
- Attempts at privatisation failed mainly due to lack of transparency, unequal access to water in different parts of the city.
- Exclusion of the poor slum communities from the coverage and projected high water tariffs were additional problems.
The experiences in Maharashtra have clearly indicated that an atmosphere of openness and transparency along with the demystification of privatisation is required to make it acceptable to the consumers.
- It is clear that local political opinion and support is necessary for PSP to succeed, particularly since water supply is being managed by local self-government bodies.
- The process of private sector participation in addition to being made transparent, also requires a mechanism for involving the community as monitoring and regulatory bodies.
- The outcome of the contracts and bidding process, as well as action plans for implementation need to be made available in the public domain.
- Access to them by citizens needs to be made easy and convenient.
