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USING TARIFF FINANCING TO IMPROVE WATER AND SANITATION SERVICES FOR THE POOR

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Manila Water (MW) is the responsible for water and sanitation services in East Manila. These notes describe generally how services to the poor consumers have been improved by MW. One of the mechanisms being applied is tariff financing of the service improvement process.  MW is a Local Service Provider that provides a bundled water and sanitation service, which gives it a lot of scope for using tariff financing mechanisms to improve sanitation.

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ONEA – Burkina Faso – Some characteristics of well-performing public water and Sanitation Company

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This solution is a good example of a successful financial management. Although Burkina Faso is one of the poorest countries of the world, its water and sanitation performance records are respectable thanks to tariffs guidelines assessed annually (but 3 years-based) along with its financial model (allowing the government to assess progress towards financial equilibrium of ONEA and providing an objective basis for further tariff revision requests), good cost recovery, high technical performance, high personal capacities, autonomous board of Directors, and at the same time a pro-poor attention.

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Establishing social tariffs on water services in Portugal

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In Portugal, the uptake of connections to existing wastewater infrastructure is slower than expected. A study by ERSAR, the water regulator, suggests that this may be due to the high cost of connection. While in average it only represents 26% of monthly income, for low income households in some municipalities the cost of connection can reach three times their monthly income. To address this issue, ERSAR has recommended service providers to eliminate the connection charge and compensate this loss of revenue by increasing the fixed part of the tariff gradually over a five year period. In this way, all users will contribute to pay for the cost of connecting the unserved.

On another perspective, ERSAR has studied also affordability of services by users, which have enabled to say that there is no major macro-affordability problem in Portugal. At the municipal level, the cost of 10m3 of water and sanitation services as proportion of average household income is 0.39% for water and 0.17% for wastewater – reaching maximum values of 0.99% for water and 0.81% for wastewater in the most expensive municipalities.

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Phnom Penh Water Supply Financial Sustainability

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In the early 90s the water supply to the city of Phnom Penh was in a critical state of disrepair and abandon. Since 1993, the Phnom Penh Water Supply Authority (PPWSA) has embarked on an ambitious transformation programme  aimed at providing a continuous, sustainable, high-quality  water supply to the population of Cambodia’s capital city,  which has led to major technical and financial performance improvements. Today, PPWSA is frequently cited internationally as an example of best management practices and sustainable results achievement in terms of efficiency of operations and coverage of the water supply needs of all categories of its large urban population.

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Water Economics Project: Multi-year Water Allocation System – MYWAS

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MYWAS (Multi-Year Water Allocation System) is an economics-based system that optimizes the benefits to be achieved from water subject to the policies and values specified by the user. It focuses on the value of water, and guides decisions as to competing uses.

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Delivering water and sanitation services to the poorest areas of Cartagena de Indias by using adapted customer service solutions

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To ensure full water distribution coverage while keeping pace with the high flow of migrants arriving to the poorest neighborhoods at the outskirts of the city, Aguas de Cartagena decided to implement a range of innovative solutions for sustainable commercial management, among others:
-          The “Mobile office service
-          The “Social management of suspended users
-          A cross-subsidization model for water tariffs

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