Africa's Water and Sanitation Infrastructure

DIRECTIONS IN DEVELOPMENT
Infrastructure
Africa’s Water and Sanitation
Infrastructure
Access, Affordability, and Alternatives
Sudeshna Ghosh Banerjee and Elvira Morella Africa’s Water and Sanitation InfrastructureAfrica’s Water and Sanitation
Infrastructure
Access, Affordability, and Alternatives
Sudeshna Ghosh Banerjee and Elvira Morella
Vivien Foster and Cecilia Briceño-Garmendia,
Series Editors© 2011 The International Bank for Reconstruction and Development / The World Bank
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ISBN: 978-0-8213-8457-2
eISBN: 978-0-8213-8618-7
DOI: 10.1596/978-0-8213-8457-2
Library of Congress Cataloging-in-Publication Data
Africa’s water and sanitation infrastructure: access, affordability, and alternatives / editors,
Sudeshna Ghosh Banerjee, Elvira Morella.
p. cm.
Includes bibliographical references.
ISBN 978-0-8213-8457-2 — ISBN 978-0-8213-8618-7 (electronic)
1. Water utilities—Africa. 2. Water-supply—Economic aspects—Africa. 3. Sanitation—
Economic aspects—Africa. 4. Sewage disposal—Economic aspects—Africa. I. Banerjee,
Sudeshna Ghosh, 1973- II. Morella, Elvira, 1976- III. World Bank.
HD4465.A35.A47 2011
363.6'1096—dc22
2010047886
Cover photograph: Arne Hoel / The World Bank
Cover design: Naylor DesignContents
About the AICD xvii
Series Foreword xix
Acknowledgments xxi
Abbreviations xxvii
Chapter 1 The Elusiveness of the Millennium Development
Goals for Water and Sanitation 1
A Timely Synthesis 3
Data Sources and Methodologies 4
Key Finding 1: Wide Differences in Patterns
of Access to Water 10
Key Finding 2: Equally Wide Differences in
Patterns of Access to Sanitation 13
Key Finding 3: High Costs, High Tariffs, and
Regressive Subsidies 16
Key Finding 4: The Stark Challenge of
Financing the MDG 18
Key Finding 5: Institutional Reform for Better
Water Sector Performance 24
A Multidimensional Snapshot of WSS in Africa 27
vvi Contents
Annex 1.1 Surveys in the AICD DHS/MICS
Survey Database 28
Annex 1.2 Surveys in the AICD Expenditure 29
Annex 1.3 Introducing a Country Typology 30
Notes 31
Bibliography 31
Chapter 2 Access to Safe Water: The Millennium Challenge 33
The Importance of Wells and Boreholes in
Water Supply 33
Low Access to Piped Water. . . for Various Reasons 37
Multiple Players in the Urban Water Market 42
The Role of Wells, Boreholes, and Surface Water
in the Rural Water Market 49
Steep Growth of Wells and Boreholes as
Sources of Water 52
Notes 59
References 59
Chapter 3 Access to Safe Sanitation: The Millennium
Challenge 63
The Predominance of On-Site and Traditional
Pit Latrines 63
The Sanitation Challenge across Countries 66
Steep Increases in the Use of Traditional
Pit Latrines 69
Good Progress in a Handful of Countries 71
References 81
Chapter 4 Improving the Organization of the Water
and Sanitation Sectors 83
The Heterogeneity of the Urban Water Market 84
Varied Institutional Models for Nonpiped
Services in the Urban Water Market 102
Many Levels of Government Players in the
Rural Water Market 110
Many Players with No Clear Accountability
in the Sanitation Market 115
Notes 120
References 120Contents vii
Chapter 5 Urban Water Provision: The Story
of African Utilities 123
Access to Utility Water 124
The Pace of Expansion of Utility Water Coverage 126
Water Production Capacity Varies
from Country to Country 128
Two-Part Tariff Structures for Piped Water 128
Sewerage Charges Linked to Water Bills 131
Modest Water Consumption by End Users 132
Substantial Water Losses in Distribution System 136
Difference in Quality of Service among
Country Groups 138
Technical Efficiency and Effective
Management of Operations 139
Financial Efficiency and the Alignment
of Operations and Finances 142
The High Cost of Inefficiencies in Operations
and Pricing 146
The Role of Institutions in Improving Performance 153
Annex 5.1 Utilities in the AICD WSS Database 158
Notes 159
References 159
Chapter 6 Cost Recovery, Affordability, and Subsidies 161
Average Monthly Spending on Water 161
Wide Price Variations among Service Providers
in the Urban Water Market 162
Two-Part Tariffs and the Small Consumer 168
Paying for Water: How Common? 171
Recovering Operating Costs: Affordable 173
The High Cost of Connecting to Water and
Sanitation Services 176
The Cost of Subsidizing Capital and Operating
Expenses 179
Poor Targeting of Utility Subsidies 180
Connection Subsidies as a Viable Alternative 184
Annex 6.1 Methodology for Estimating
the Annual Gross Profit and the Annual
Cross-Subsidy between Household Consumers
and Standpipes Captured by Standpipe
Operators in a City 187viii Contents
Notes 188
References 189
Chapter 7 Spending Needed to Meet Goals in Water
and Sanitation 191
The Challenge of Expanding Coverage 191
The Unit Cost of Service Provision
across Countries 197
To Close the MDG Coverage Gap 202
Annex 7.1 Unit Cost Matrix Model:
A Methodology for Estimating
Nonstandardized Unit Costs of
Network Assets 209
Annex 7.2 Methodology for Quantifying
Rehabilitation and O&M Needs 213
Notes 214
References 214
Chapter 8 Bridging the Funding Gap 215
Current Spending on Water and Sanitation 215
Poor Budget Execution by the WSS Sector 220
Even after Efficiency Savings, a Persistent
Funding Gap 224
Limited Scope for Raising Additional Finance 231
Promising Ways to Increase Funds 239
Other Ways to Reach the MDG 240
Notes 248
References 248
Chapter 9 Policy Options for the Water and
Sanitation Sectors 251
PWater Sector 251
Policy Options for the Sanitation Sector 260
Reference 267
Appendix 1 Access to Water Supply and Sanitation Facilities 269
Appendix 2 Institutions in the Water and Sanitation Sector 293
Appendix 3 Performance Indicators of Selected Water Utilities 323