Pre-Conference for LGU-Managed Water Systems
Welcome Remarks by
Rudolf Fauendorfer
Senior Urban Development Specialist, Southeast Asia Department
Asian Development Bank
At the Improving Water Service Performance:
Philippine Consultations on Strengthening Regulation
1 July 2008
Manila, Philippines
I. Introduction
Honorable Governor Leo Ocampos, Undersecretary Jun Paul, mayors, distinguished guests, and other participants from LGUs,
Good morning. Welcome to ADB Headquarters. Many of you either flew in or traveled for hours by land (or both!) from across the country, and we thank you for your time and effort to be here.
I would like to recognize ADB’s co-sponsor GTZ for their support in organizing today’s activities, as well as the national government agencies responsible for making this happen – DILG, DOF, NEDA, with support from the Leagues of Provinces, Cities and Municipalities.
This week’s series of workshops will be providing important inputs for a bigger conference in August on improving the performance of water service providers in the Philippines.
I think it is rather appropriate that our discussions this week begin with you. No matter what your role is in local government, whether you were elected, appointed or hired as a technical professional, you have an enormous task in common—to sustain what’s working, and fix what’s not. Delivery of water supply services has its own unique challenges, and if there is a level of government who is most concerned about making sure these challenges are overcome – it’s you, the LGUs.
Ultimately, a public system that isn’t working for the public, is working against the government. Building sustainable water services is an opportunity to build public confidence in local officials and government, and to create an environment that makes progress in other sectors, like health, education, and labor, more possible. Just as a healthy and safe environment is key to a prosperous life, it is also key to a prosperous city. Reliable, affordable, sustainable water services is the key to prosperity.
II. Champions, On Your Mark
Without question, it is not an easy job to transform these services, from what they have become into what they need to be. It is not impossible, though. In fact, it has been proven possible by one of the world’s most unlikeliest public utilities—Phnom Penh Water Supply Authority in Cambodia. If ever a public water utility was facing long odds, it was Phnom Penh’s.
The utility’s transformation did not begin with large sums of financing, increased tariffs, private management, or major infrastructure projects. Yes, some of those things came later, but progress began with something else—a champion: someone who believed his utility was not a lost cause, who believed that reliable, affordable, sustainable public water services was good politics.
Ek Sonn Chan bet his career on it, and he’ll tell you that sometimes he risked his very own life on decisions he knew he had to make if the public was ever going to get the services they deserved. When he took over the system in 1993, 70 percent of the city’s water was lost to leaks and thieves, among them his own staff, the military and VIPs.
Ek Son Chan made decisions that were tough but necessary—decisions that would deliver. He believed in the value of honest, hard-working human capital and in fair customer-driven policies. And he wasn’t afraid of being held to standards.
As a result, Phnom Penh utility is one of the developing world’s brightest examples of possibility and accomplishment. Phnom Penh’s story began where we believe yours can begin today—with leaders as champions.
III. Regulation as Support for Champions
As elected officials, you know first-hand the importance of delivering on promises. We believe that even champions need support on delivering, and that regulation—yes, regulation—can support your vision for more reliable, affordable, sustainable water services. Regulation is often misunderstood to mean “restrictive.” Regulation can be supportive of your goals, too. Performance targets and standards set through regulation helps share the risk and responsibility of making and delivering on difficult decisions, such as quality control, volume targets, tariff reform and collection policies.
Some of the water utilities represented here today already have such champions, and we’ll be hearing from them. Today’s discussions and guest speakers are focused on helping identify the barriers you face in transforming your water utility. We will also move beyond the problems to talk solutions. How can performance targets and standards help you achieve your goals for your public water supply?
Securing reliable, affordable, sustainable water services for the public is in everyone’s interest. Ek Son Chan has proven that doing what it takes to achieve a sustainable water supply system is good politics. Fifteen years after taking the reins of Phnom Penh’s disastrous system, he remains the director general and has experienced continuity and public confidence. In 2006, he received the Ramon Magsaysay Award for Government Service, and in 2004, his utility was awarded the ADB Water Prize.
Understanding how water sector reforms can be good politics is what today’s discussions are all about. And I look forward to participating in them with you.
Thank you.
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