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Background

ADB carried out regional studies on small-scale private water providers (SSPWPs) in 2002-2003 to provide an overview of urban water suppliers beyond formal water utilities, increase knowledge about the type of services provided by SSPWPs, define the profile of the most significant SSPWPs, and assess the main constraints on and potential of SSPWPs.

The studies were carried out in nine cities: Dhaka, Shanghai, Delhi, Jakarta, Ulaanbaatar, Kathmandu, Manila and Cebu, and Ho Chi Minh City.

The results, published in 2004, concluded that

• City officials, city water utilities, and local banks should work with small network entrepreneurs who can immediately bring water supplies to the poor and disadvantaged, on an agreed-upon interim basis until the water utility is able to do so.
• Small networks should be included in city development strategies and formalized with licensing and exit strategies and takeout agreements. Minimum standards should recognize risk and payback requirements.
• Enabling legal and contractual conditions should be created and small operators should be integrated into the water supply chain to the extent possible.
• ADB should join with two or three cities to test and refine these recommendations during 2005–2006.

In response to the recommendation, ADB has approved RETA 6265: Implementing Pilot Projects for Small-Piped Water Networks on 18 October 2005.