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Senegal shifts its thinking: Context is everything

Oumar Diallo's picture
Editor's note: this is the second in a two-part series. Click here to read the first part, "Senegal shifts its thinking: Rural water delivery moves to private operators."
 
Photo: flickr/Julien Harnels

In the rural water sector in Senegal, as with many parts of the world that have experienced tremendous changes, context is everything. Rarely does one single act spur a shift at the government level; many elements combine to prompt a change in approach.

The PPP team in Senegal was privileged to be able to develop a brand-new system for rural water delivery in Senegal (see previous post here), but our activity was just one contributing factor in a much larger national and even international effort. The political context in Senegal, along with sustained attention to the Millennium Development Goals (MDGs), created the right atmosphere for this PPP.   
 
Here are five important elements that came together to make Senegal’s paradigm-shifting PPP possible:
  1. Government officials’ forward-thinking views. Coming up with an original plan for the delivery of rural water depended on zoning changes. Our group’s internal study showed that dividing the country into three zones would make it possible to cluster services. Government’s willingness to consider clustering pipe systems across 14 regions was critical, because it made support from the private sector a viable option.

5 potential benefits of integrating ICTs in your water and sanitation projects

Fadel Ndaw's picture

A new study was recently carried out by the Water and Sanitation Program (WSP) of the World Bank on how to unlock the potential of Information and Communications Technology (ICTs) to improve Water and Sanitation Services in Africa[1]. According to a Groupe Speciale Mobile Association (GSMA) report[2], in 2014 52% of all global mobile money deployments were in Sub Saharan Africa and 82% of Africans had access to GSM coverage. Comparatively, only 63% had access to improved water and 32% had access to electricity. This early adoption of mobile-to-web technologies in Africa provides a unique opportunity for the region to bridge the gap between the lack of data and information on existing water and sanitation assets and their current management — a barrier for the extension of the services to the poor.

Senegal shifts its thinking: Rural water delivery moves to private operators

Oumar Diallo's picture
Photo: Wikimedia Commons
Overnight success takes years, as the saying goes – and that’s certainly the case for the delivery of water to rural regions of Senegal. On July 2, 2015, the Government of Senegal celebrated the signing of its first lease (affermage) contract in the rural water sector, the result of a partnership that marks a significant and promising shift in rural water management for the country. This success in Senegal was years in the making, dating back about 15 years to the start of Senegal’s reform process.

Though Senegal’s situation is unique, insights and lessons from the project can inform and strengthen other rural water PPPs as well.
 
What changed, and why it matters 
In Senegal’s earlier period of reform, government officials looked to community-based management for 1,500 rural water piped systems to serve the 7.5 million people in need of water services across 14 rural regions. (Senegal is divided into three large geographic zones – North, South and Central – with ongoing transactions in smaller areas like Gorom Lampsar and Notto-Diosmone-Palmarin, known as GL-NDP, and the Senegal River region.) At that time, officials thought this would be the best way to eventually scale up management of the rural water system. By 2010, though, discussions between the World Bank Group and the Government of Senegal pushed reform forward by including more private sector management, which also aimed to increase sustainability of the system. 

PPP-powered access to water — and much more

Melvin Tan's picture
Note: This blog entry was adapted from an original submission for the PPIAF Short Story Contest. It is part of a series highlighting the role of Public-Private Partnerships (PPPs) in projects and other transformative work around the world.

One of the most salient features of a public-private partnership (PPP) arrangement is the flexibility to use out-of-the-box solutions in resolving the many challenges in day-to-day operations. As a result, the PPP setup gives operators the liberty to come up with innovative solutions for more effective and efficient delivery of the most basic services.
 
Location of Laguna Province in the
Philippines. Image: Wikimedia Commons

In the Philippines, Laguna Water — a joint venture company formed as a result of a PPP between the Provincial Government and Manila Water Philippine Ventures formerly known AAA Water Corporation — is benefitting immensely from that flexibility since it took over the operations of the province-run water system in 2009. Although primarily tasked to improve the provision of water and wastewater in the three cities of Biñan, Sta. Rosa and Cabuyao — collectively known as concession area — Laguna Water’s sustainable business model allows it to participate on matters related to community development (including job generation), as well as programs centered on health, safety and environmental protection.
 
As a staunch advocate of sustainability, Laguna Water takes pride in having significantly improved access to piped, clean and affordable water to 62 percent of the population of the concession area— a far cry from the 14 percent when it started its operations in 2009. The joint venture’s PPP framework has been instrumental in putting in place water infrastructure that provides easier access and better services to customers. Today, Laguna Water is the biggest water service provider in the entire province, and is also ahead in its service-level targets on coverage, water quality and water loss reduction. 
 
Here are some details about our PPP-empowered approach.

What happens when the playground is also the potty?

Emily C. Rand's picture

Imagine you are a busy mother scrubbing your laundry next to the public water stand near your yard. You realize your two year old — who is playing in the dirt — has to go to the toilet. What do you do? Chances are good you might just let them go on the ground somewhere nearby.

According to a recent analysis by the United Nations Children Fund (UNICEF) and the World Bank Global Water Practice's Water and Sanitation Program (WSP) in key countries, over 50 percent of households with children under age three reported that the feces of their children were unsafely disposed of the last time they defecated. What this really means is that children are literally pooping where they are and their feces are left there, in the open. Meanwhile, the feces of other children in the neighborhood are put or rinsed in a ditch or drain, or buried or thrown into solid waste streams that keep the feces near the household environment.

 

​Is infrastructure in emerging markets a good investment?

Laurence Carter's picture
There’s a lot of discussion about attracting more investors to invest in infrastructure in emerging markets. This will be one of the themes of the Financing for Development Conference next week. Last month the PPI Database’s 2014 full year update showed that total investment in infrastructure commitments in emerging markets for projects with private participation in the energy, transport and water and sanitation sectors increased six percent to US$107.5 billion in 2014, compared to 2013.  
 
But what does the evidence tell us about how good those investments might be for investors?
 
One interesting source comes from a Moody’s study based on the performance of over 5,300 projects. This data represents more than 60 percent of all project finance transactions worldwide over 1983-2013. It is broadly representative of worldwide project finance activity by year, industry sector and regional concentration. The data shows that:

Where will the footprints be when there is no more sand? Coastal erosion and the future of Senegal

Matthias Cinyabuguma's picture

Where will the footprints be when there is no more sand?  Coastal erosion and the future of Senegal

Rocky shores that hardly measure more than several meters at high tide are all that are left of some of Senegal’s most highly prized beaches at the seaside resort Saly. With every year that passes, the Atlantic ocean inches closer, much to the dismay of locals and tourists alike.
25% of the Senegalese coast is at high risk for coastal erosion, and it is estimated that this figure will increase to 75% by 2080 if sea levels continue to rise. A victim of climate change, Senegal tourism has taken a hit despite being one of the key focus areas of the Plan Sénégal Émergent, the country’s long-term growth and development strategy.

PPPs in the Caribbean: Filling the gap

Brian Samuel's picture
Prior to about 2005, for many tourists their Jamaican vacation was ruined at the last minute, by the hot and overcrowded conditions inside Montego Bay’s Sangster International Airport. Fast forward 10 years, and waiting for a flight at Sangster is an altogether more pleasant experience. The air conditioning actually works, and the whole environment is infinitely less stress-inducing than before.
 
A new waiting area at Montego Bay's
Sangster International Airport.
Photo: Milton Correa/flickr

What’s the difference? The private sector.

In 2003, the Government of Jamaica finally succeeded in doing what it had been trying to do for a decade: privatize Montego Bay Airport. A private sector consortium, led by Vancouver International Airport, quickly invested millions of dollars in expanding the terminal building, doubling the airport’s capacity and opening dozens of new retail spaces. Since then, the consortium has invested more than US$200 million on expansions and improvements to the airport, all of which has been entirely off the government’s balance sheet.

Jamaica has gone on to implement several more public-private partnerships (PPPs), with mixed results. The second phase of its ambitious highway construction program — the Mount Rosser Bypass — was recently opened, cutting a swath through miles of virgin territory. However, early indications are that traffic levels are not living up to expectations, probably due to the Bypass’ steep eight percent gradient, which is beyond the means of most Jamaican trucks and buses.

In the energy sector, Jamaica is completing three PPPs with a total of 115 megawatts of renewable energy (RE) capacity, putting the country on track to meet its RE target of 12.5 percent of generating capacity by the end of 2015. Lastly, the government is currently completing formalities for the sale of Kingston Container Terminal (KCT) to a consortium of CMA/CGM and China Merchant Marine, a transaction that is expected to result in a US$600 million capital expenditure program by the port’s new owners.

Public-private partnerships: Promise and hype

Michael Klein's picture
Here is a new paper I wrote that provides perspectives on patterns of public-private partnerships (PPPs) in infrastructure across time and space.  
 
PPPs are a new term for old concepts. Much infrastructure started under private auspices. Then many governments nationalized the ventures.

Governments often push infrastructure providers to keep prices low. In emerging markets, the price of water covers maybe 30 percent of costs on average, that of electricity some 80 percent of costs. This renders public infrastructure ventures dependent on subsidies. When governments run into fiscal troubles, they often look again for PPPs, and price increases. As a result, PPPs keep making a comeback in most countries, but are not always loved.

Human wellbeing depends on a functioning planet—the Pope’s call

Paula Caballero's picture
Children in Bhutan look out on terraced fields. (Photo by Curt Carnemark / World Bank)The papal encyclical “on care for our common home” reflects the kind of insightful and decisive leadership that will be needed to reverse trends that will affect humanity’s capacity to feed itself and provide for collective well-being. The encyclical is not only a sobering call to address climate change, but also a manifesto for environmental stewardship and action. It touches on topics that we, as earth’s dominant species, need to urgently care about if we are to keep millions out of poverty today and tomorrow, and deliver on the rising expectations of a global middle class.

At the core of the encyclical is both a concern for the health of the planet and for the earth’s poor, reflected in a commitment to social values and integrity, environmental resilience, and economic inclusion.

The stock-taking begins, aptly, with pollution: “Some forms of pollution are part of people’s daily experience. Exposure to atmospheric pollutants produces a broad spectrum of health hazards, especially for the poor, and causes millions of premature deaths.” The World Bank’s latest edition of the Little Green Data Book finds indeed that in low and middle-income countries, 86% of the residents are exposed to air pollution levels (measured in exposure particulate matter less than 2.5 microns in diameter) that exceed World Health Organization (WHO) guidelines. The WHO last year made headlines when it calculated that 7 million people had died prematurely from indoor and outdoor air pollution in 2012. From safer cookstoves in rural areas, to better air quality management in fast growing cities, this is an area where solutions are known and must be urgently applied.

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