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Roundtable Discussion on Private Sector Participation in Urban Water Supply in India
Meeting Report

ADB and senior officials from the Government of India met for two days of roundtable discussions on the private sector's role in reforming the country's water supply and sanitation. The participants came from the states of Kerala, Karnataka, Madhya Pradesh, Uttaranchal and Jammu and Kashmir.
EVENT DETAILS
Date 15-16 June 2005
Venue Bangalore, India
Contact Ellen Pascua
Related Materials
Event Description
Materials
Agenda
Participants' List [PDF]
BRIEF DESCRIPTION

Acess to safe drinking water and proper sanitation facilities remains a challenge in India. India's urban population was some 280 million in 2000 but will rise to almost 400 million by 2015. Despite increasing allocation of financial resources, there are serious concerns around the sustainability of investments made in the drinking water sector.

Private sector participation (PSP) or public private partnership (PPP) seeks to fuse the skills, expertise and experience from both the public and private sectors to deliver high standard services to customers. ADB does not advocate PSP exclusively. It advocates efficient, reliable, accessible water supply and sanitation services for all, which may require the involvement of private sector expertise.

The roundtable discussion enbled the participants to discuss India's pressing water problems and efforts to reform, and consider whether the private sector should be considered for a role in reforming the sector. In the process, different models utilizing PSP in Kathmandu, Jakarta, Manila, the UK and Chile have offered valuable lessons. Successful public systems, such as Phnom Penh, were also discussed.

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KEY FINDINGS AND AGREEMENTS

There are several PSP models and no single model will suit all situations. PSP must be tailored to meet local infrastructure, affordability, cultural norms, etc.

The participants identified the main issues and constraints facing their water supply and sanitation operations, the opportunities for potential PSP and ways ADB could assist. They also reviewed how the central government and local bodies have embarked on water reforms.

COMPONENTS
  Water Supply and Sanitation — Key Issues     Opportunities for PSP     Enabling Environment for PSP     Possible Areas for ADB Assistance  
  • Water resource availability and sustainability
  • Lack of information
  • Role of local government
  • Need for incremental/progressive steps
  • Need for reform/restructuring of utilities
  • Lack of feasibility studies
  • Motivation of the workforce
  • Funding/resources availability
  • Commitment to O&M after project completion
  • Development of consensus among stakeholders on PSP
  • Lack of alignment of purpose and process
  • Lack of skilled human resources

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KEY OUTPUTS

At the end of the discussion, participants from the 5 state governments prepared concrete action plans to bring 24 x 7 water supply to their respective cities and municipalities. View the action plans:

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NEXT STEPS

The body agreed to undertake a follow-up conference in August 2005 to disseminate the outcome of the roundtable discussion to the chief secretaries/ principal secretaries for urban sector of all states. Such an event would provide an opportunity to assess the progress on the implementation of the action plans.