Model Terms of Reference - Results of Use
Diagnostic Water Market Assessment for Dhaka Water Supply and Sewerage Authority
The Asian Development Bank (ADB), upon the request of the Government of Bangladesh, provided technical and financial assistance to the Dhaka Water Supply and Sewerage Authority (DWASA) to improve the water supply and sanitation situation in Dhaka. Using ADB's Model Terms of Reference for diagnostic city water assessment, DWASA has paved the way for increasing efficiency in water supply and sanitation services.
BACKGROUND
DWASA, with assistance from ADB, undertook a diagnostic water market assessment in Dhaka to determine
- where and how people in Dhaka get water, including "informal market" sources such as water vendors, tanker operators, water re-sellers, small piped network operators, and bottlers
- reliability, cost and quality of these water sources
- amount of water people consume everyday
The assessment called for surveying at least 5% of the population in Dhaka, including non-domestic consumers, as representative sample. The results were analyzed and presented to stakeholders for them to come up with new city government policies and investment plans.
Established in 1963 with modest human resources and minimal logistic support, DWASA has grown over the last 42 years into a major water utility in the region. Now serving more than 12 million people, DWASA is encountering technical and financial difficulties that have contributed to various environmental problems associated with inadequate water supply, sanitation, drainage and urban flood protection. Business costs have risen, urban-based economic growth has slowed, and social unrest has increased.
The diagnostic water market assessment for DWASA was meant to redirect the water utility's efforts to innovative strategies to improve its services in Dhaka.
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WHAT THE ASSESSMENT REVEALED
DWASA is presently serving 75% of the 12 million people in Dhaka; 80% through house connections, 7% through standpipes and 0.5% by tankers. There are 200 bulk connections serving around 100,000 connections, most of which are in slum areas and usually operated by NGOs. The main reason why 20% remains unconnected to the piped system is the absence of pipelines in some areas. As of 2005, there were 217,451 house connections, 63% of which are metered (and 97% of it are in good working condition). All the 200 bulk connections are metered. The utility has 22 tankers with a combined capacity of 120,000 liters. Water runs 24 hours daily to 39% and 44% of domestic and non-domestic connections, respectively. The rest get the supply at an average of 15 hours a day.
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HOW ASSESSMENT RESULTS INFLUENCED PROJECT DESIGN
Based on the result of this diagnostic assessment, the government decided to adopt a zonal approach to improving DWASA's services. The idea is to divide Dhaka in smaller hydraulically isolated districts where upgrading of the service to 24 hour water supply will be undertaken in one district at a time. With assistance from ADB, DWASA is now pilot testing this zonal approach on Manikdi area.
As input to policy and development plans, the result of the assessment aims to influence the following:
Source Augmentation. Groundwater is suffering from overexploitation which has made water supply unsustainable but has also exposed the city to environmental hazards. Future expansion of water supply will require using additional water sources such as surface water. Service Levels. Upgrading of services will focus on expanding piped connections and phasing out of standpipes. Tariff Regulation. The survey has indicated willingness of consumers to pay for improved service. The Government has allowed DWASA to increase tariff up to a maximum of 5%, a policy which should be revised. A tariff adjustment will allow DWASA to increase tariff to reflect the real cost of water supply services.
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