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Institutional Governance and Regulation of Water Services

Institutional Governance and Regulation of Water Services

Michael J. Rouse

(2013)

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Book Details

Abstract

Institutional Governance and Regulation of Water Services aims to provide the key elements of policy, governance and regulation necessary for sustainable water and sanitation services. On policy matters, it covers important aspects including separation of policy and delivery, integrated planning, sustainable cost recovery, provisions for the poor, and transparency. Regulation and Regulatory Bodies are presented in their various forms, with discussion of why some form of independent scrutiny is essential for sustainability. The focus is on what works and what does not, based on consideration of basic principles and on case studies in both developing and developed countries. 
The early chapters discuss the key elements, with later chapters considering how these elements have come together in successful reforms of public sector operations. A chapter is devoted to the successful use of the private  sector based on lessons learnt from ‘failures’ of private contracts and the need for the application of sound procurement principles. The current trend is for a public sector model which benefits from business approaches, the so-called corporatised public utility. Experience since the publication of the first edition in 2007 reinforces the importance of the key elements for sustainable water services. 
This second edition brings the material up to date and with some increased emphasis on public participation in its many forms. It refers to the opportunity for progress provided by the UN Declaration of Water and Sanitation as a Human Right, but only if it is implemented in a practical and sustainable way. Institutional Governance and Regulation of Water Services is aimed at providing an informative source for national and local governments responsible for water policy, for water utility managers, and for students who will be the policy makers of tomorrow. It is a teaching aid for courses on water policy, governance and regulation. 
About the Author: Michael Rouse is a Distinguished Research Associate at the University of Oxford and manages the Institutional Governance and Regulation module of the University’s MSc Course on Water Science, Policy and Management. He was formerly Head of the Drinking Water Inspectorate in London and has extensive knowledge and experience of water governance and regulation, including all aspects of audit and enforcement, and the governance issues related to both public sector management and privatisation. He has wide knowledge of water technical and operational matters, based on his applied research and development background at the Water Research Centre, where he spent 9 years as Managing Director. Michael has a good understanding of international water matters and advises governments on policy and regulation. He is a Past President of the International Water Association. He is a visiting professor at Tsinghua University in Beijing and at the Shanghai Academy of Social Science. In 2000 he was awarded the CBE (Commander of the British Empire) for his professional services. 

Table of Contents

Section Title Page Action Price
Cover\r Cover
Contents vi
About the Author xii
Acknowledgements xiii
Foreword xv
Preface:\rWhat’s it all about! xvii
Chapter 1: Part 1 – Important policy issues\rSome bricks in the wall 1
GOVERNMENT STRUCTURES AND RESPONSIBILITIES 2
SEPARATION OF POLICY, REGULATION AND DELIVERY 3
THE QUESTION OF WATER UTILITY SIZE 4
CENTRALISATION OR DECENTRALISATION? 5
WATER RESOURCE PLANNING 7
VERTICAL INTEGRATION 10
THE IMPORTANCE OF CONTINUOUS SUPPLIES (OFTEN REFERRED TO AS 24/7) 11
SANITATION POLICY 13
CORRUPTION 15
CONSUMER PARTICIPATION 16
COST RECOVERY, TARIFFS AND AFFORDABILITY 17
WATER FOR HEALTH 17
NATIONALWATER AND SANITATION PLANS 18
REFERENCES 18
Chapter 1: Part 2 – Water and sanitationas a human right\rUniversal Coverage or a Charterfor Lawyers! 21
HISTORY 22
THE UN RESOLUTION 23
THE ELEMENTS 24
Normative elements -\rwater 24
Normative elements - sanitation\r 25
Cross-cutting elements 25
SOME KEY ISSUES 26
INTERNATIONAL TARGETS AND MONITORING 28
AN OPPORTUNITY TO SUCCEED 29
REFERENCES 29
Chapter 2: Regulation and regulatory bodies\rFriend or foe? 31
WHAT IS REGULATION? 32
WHAT IS ECONOMIC REGULATION? 33
WHY NOT SELF-REGULATION? 34
WHY INDEPENDENT ECONOMIC REGULATION? 34
APPROACHES TO SETTING TARIFFS 36
WHY INDEPENDENT DRINKING WATER QUALITY REGULATION? 37
ENVIRONMENTAL QUALITY REGULATION 38
REGULATION BY CONTRACT 38
REGULATORY BODIES 40
England and Wales 41
Scotland 41
Northern Ireland 41
Chile 42
Zambia 42
State of Victoria, Australia 43
Manila, The Philippines 44
Ghana 44
Portugal 45
LESSONS LEARNED FROM THE EXAMPLES 46
EXPERT PANELS 47
REGULATION IN ASSISTING THE POOR AND UNSERVED 47
CONCLUSION ON THE KEY ELEMENTS OF REGULATION 49
REFERENCES 50
Chapter 3: Planning, financing andcost recovery Water:\rnot a free for all 52
FINANCE NEEDS AND COST ELEMENTS 52
WHERE NOT TO BE 53
START-UP COSTS 55
DONOR AND BANK INVESTMENT 57
WATER CHARGES 59
ADEQUATE INVESTMENT IN THE EXISTING INFRASTRUCTURE 60
MAKING PROVISION FOR THE POOR 61
THE CONTROVERSIAL ISSUE OF DEALING WITH NON-PAYMENT 64
RESPONSIBILITY OF DETERMINING TARIFFS 65
THE NEED FOR AN INTEGRATED PLANNING PROCESS 66
CITIES OF THE FUTURE 66
SOME EXAMPLES SHOWING THE NEED FOR INTEGRATED PLANNING 67
ENGLAND AND WALES 69
REFERENCES 70
Chapter 4: Drinking water quality andregulation\rBetter safe than sorry 72
THREATS TO THE SAFETY OF DRINKING WATER 73
APPROACHES TO THE PROVISION OF SAFE DRINKING WATER 75
THE BONN CHARTER 76
WHO GUIDELINES 77
WATER SAFETY PLANS 80
BEYOND THE IMMEDIATE CONTROL OF THE WATER SERVICE PROVIDER 84
GOVERNANCE AND REGULATIONS 84
AUDIT OF WATER SAFETY PLANS 86
DRINKING WATER SAFETY PLANS IN DEVELOPING COUNTRIES 87
Ghana water company limited 87
VERIFICATION AND STANDARDS 89
INTERIM DRINKING WATER QUALITY STANDARDS 92
A WORD ABOUT DISINFECTION 92
THE IMPORTANCE OF MAGNESIUM TO HEALTH 94
MONITORING, AUDIT AND ENFORCEMENT 94
THE EXAMPLE OF THE DRINKINGWATER INSPECTORATE IN LONDON 95
REFERENCES 96
Chapter 5: Transparency and publicparticipation\rIt’s good to talk 100
LEVELS OF PUBLIC PARTICIPATION 102
LEVELS OF PARTICIPATION IN WATER SERVICES 103
PUBLIC PARTICIPATION AS PART OF ACCOUNTABILITY 105
MEDIA BRIEFING 109
PUBLIC MEETINGS 110
WATER CONSUMER COUNCILS 110
LOCAL COMMUNITY GROUPS AND LOCAL ACTION AGENDA 111
La Paz, Bolivia 111
Accra, Ghana 112
Savelugu, Ghana 113
India - Alwar District\r 113
India - Kolhapur\r 115
Orangi, Karachi, Pakistan 116
San Luis, Agusan del Sur, The Philippines 118
Tanzania 118
EFFECTIVE PUBLIC PARTICIPATION 119
Developed countries 120
Developing countries - rural areas\r 120
Developing countries -\rurban areas 121
THE ROLE OF GOVERNMENTS 122
THE BEST IS YET TO COME? 123
SOCIAL NETWORKS 124
REFERENCES 124
Chapter 6: Stimulating improved performance of water service utilities\rHow to encourage improvement 127
SEPARATION OF POLICY AND SERVICE DELIVERY FUNCTIONS 127
BUILDING MANAGEMENT CAPABILITY 128
MANAGEMENT INCENTIVES 128
INCENTIVE-BASED WATER PRICING SYSTEMS 129
BENCHMARKING AND COMPARATIVE COMPETITION 130
EXAMPLES OF BENCHMARKING SYSTEMS\r 133
India 133
England and Wales 135
Canada 138
South Africa 140
NationalWater and Sewerage Corporation (NWSC), Uganda 141
HOW TO START 142
A PUBLIC SERVICE ETHIC - GOOD OR BAD?\r 144
REFERENCES 145
Chapter 7: Steps for successful public sectoroperations\rReform is in order 147
THE TRADITIONAL MUNICIPAL MODEL 147
GOVERNMENT ACTIONS FOR REFORM 148
THE FOUR BASIC MODELS 149
THE SEATTLE STORY 150
BRISBANE, QUEENSLAND, AUSTRALIA 154
ONTARIO, CANADA 157
VICTORIA, AUSTRALIA 160
THE NETHERLANDS 162
SINGAPORE 165
HAIPHONG, VIETNAM 165
PHNOM PENH, CAMBODIA 169
NWSC UGANDA 170
GHANA 171
GENERAL LESSONS 174
REFERENCES 175
Chapter 8: Steps for the successful useof the private sector\rTapping commercial energy 177
SOME EXAMPLES OF THE HISTORY OF THE PRIVATE WATER SECTOR 177
THE EMOTIVE ARGUMENTS 179
HIGHLY PUBLICISED EXAMPLES OF THE USE OF THE PRIVATE SECTOR 180
Atlanta, USA 180
La Paz and Cochabamba, Bolivia 184
Adelaide, Australia 189
Jakarta, Indonesia 194
PRINCIPLES OF EFFECTIVE PROCUREMENT 198
PARTNERING 202
A PERFECT CONCESSION CONTRACT? 205
REGULATION IN CONCESSION CONTRACT SITUATIONS 206
EQUITY-BASED PRIVATISATION 206
Chile 207
China 211
Macao 212
Chengdu 213
Ma’anshan 213
THIS CHAPTER 215
REFERENCES 215
Chapter 9: The story of England and Wales\rA sequence of developments 219
HISTORY OFWATER SERVICES IN ENGLAND ANDWALES 1974–1989 220
THE WATER ACT 1989 226
Regulation of drinking water quality 228
Environmental regulation 230
The consumer council for water 232
Standards of service performance 235
The periodic review process 236
THE “DROUGHT” OF 2006 AND THE “NON-DROUGHT” OF 2012 239
ONGOING DEVELOPMENTS 241
REFERENCES 245
Chapter 10: Summary\rBringing it all together 249
CHAPTER 1 PART 1: IMPORTANT POLICY ISSUES 249
CHAPTER 1 PART 2: WATER AND SANITATION AS A HUMAN RIGHT 250
CHAPTER 2: REGULATION AND REGULATORY BODIES 251
CHAPTER 3: PLANNING, FINANCING AND COST RECOVERY 252
CHAPTER 4: DRINKING WATER QUALITY STANDARDS AND REGULATION 253
CHAPTER 5: TRANSPARENCY AND PUBLIC PARTICIPATION 254
CHAPTER 6: STIMULATING IMPROVED PERFORMANCE 255
CHAPTER 7: STEPS FOR SUCCESSFUL PUBLIC SECTOR OPERATIONS 256
CHAPTER 8: STEPS FOR THE SUCCESSFUL USE OF THE PRIVATE SECTOR 258
Equity-based privatisation 260
CHAPTER 9: THE STORY OF ENGLAND AND WALES 260
FOOTNOTE ON THE PUBLIC VERSUS PRIVATE QUESTION 262
Appendix: The UNDP human developmentreport 2006 Taking forward the Report’s recommendations on governance\rand regulation 263
Second Edition Comments 263
First Edition Text 263
Index 268