Annex: Memorandum submitted in October
2006 by AquaFed to the International Development Committee
EXECUTIVE SUMMARY
1. AquaFed, the International Federation
of Private Water Operators, is pleased to take this opportunity
to respond to the call to give evidence to the International Development
Committee's inquiry into water and sanitation. In this response,
AquaFed represents companies that are operating in developing
countries including countries that receive British development
assistance. This response does not represent views of British
water operators.
2. Being an international Federation of
private operators, AquaFed has restricted its comments and evidence
to matters of general interest or concern to development at the
worldwide level. We have tried to avoid making any specific points
about British policy or the conduct of DFID, since these are national
issues largely beyond our remit.
3. AquaFed is encouraged by much that the
White Paper contains. We very strongly support the emphasis on
governance, creating effective states and combating corruption.
These are essential prerequisites for development and poverty
alleviation. We look forward to seeing how these policies can
be turned into actions, and how they might lead the way in international
development. Our members would be pleased to be involved, where
appropriate at field level.
4. Water and sanitation feature throughout
the paper, but we consider that these essential services, should
have a still higher profile. Water and sanitation services underpin
and enable so many of the other development objectives and all
of the MDGs.
5. Our members' experience at many different
scales in the developing world clearly shows that private sector
operators can make a very useful contribution to water and sanitation
development objectives. In recent years, their contribution has
often been misrepresented. Their ability to perform in the field
has been impaired by many of the issues discussed in the paper,
including lack of good governance and corruption.
6. In our evidence, we make the distinction
between "governmental" and "operational" issues.
Both are essential and need to work in close association and partnership
with each other. Governmental issues can only be carried out by
properly empowered government structures. For water and sanitation,
these usually need to be local governments or water authorities.
Operational activities can be carried out by a wide range of organisations
from public and private sectors, civil society, and even individuals.
Almost all the challenges facing water services delivery are the
same irrespective of which sector the operator comes from. Our
evidence therefore advises against treating the sectors separately.
7. International donors and aid agencies
should continue to work to make sure that local decision-makers
have the choice of the full range of options including effective
methods for supporting the existing public sector, as well as
the various different institutional ways in which the private
sector can be called upon to make its contribution.
8. International donors should contribute
to facilitate access to long-term finance at reasonable interest
rates for local operators, public or private.
9. We have outlined a number of practical
points that we believe would enhance the ability of all operators,
including the private sector, to deliver more and better services
thereby reducing poverty and contributing to meeting the MDGs.
These include actions by donors and governments in:
— reinforcing rule of law to build
confidence;
— providing financial support
and using ODA to catalyse other funding;
— implementing recent developments
in international financing;
— involving commercial banks and
micro financing;
— supporting local governments
and their choice of service delivery model
— engaging in capacity building;
— facilitating transfer of technology
and know-how;
— stimulating more projects;
— implementing the right to water;
— focusing on practical and case
specific solutions;
— supporting the participation
of operators of all sizes including small-scale operators;
— encouraging Public Private Partnership
contracts;
— contributing to the anti-corruption
drive;
— assisting Water Operators Partnerships;
and
— sponsoring and supporting research
and development.
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