LECTURE 4
Introduction to water utility and reforms
WATER RESOURCES MANAGEMENT MASTER PROGRAM
Water Utility Administration and Management Course
Dr. Nahed Ghbn
Palestinian Water Authority
Aims and Objectives for the Lecture
The aim of this lecture:
 Introduce and present the basic concepts and elements of the following
topics:
o Utility activity and organization
o Utility vision and mission
o Legal and planning
o Water reform
Definitions
Utility system: provide essential water, wastewater and storm water services
required and utilizing its resources in an efficient and cost effective manner
Goal of the utility: To provide the water and waster services adequately to all
users in accordance with the national policy at an affordable price
Utility objectives: The objective of any Water Utility is to keep customers
satisfied by working to the best of its ability and striving to make the utility a
first class organization
Planning is a strategic tool to achieve a desired set of goals
Water reform is a tool to increase the efficiency through better investment
decisions, better use of existing infrastructure, better management, and better
choices for the customers
Utility management services





Strategic and capital Planning
Internal improvements
Administration and management
Revenue and finance
Operations
The categories of the utility activities


Preliminary investigations,
Construction and/or rehabilitation,





Management
Finance
Major repairs
Operation
Maintenance
Types of the water utilities




Public Companies, owned by local or national government and governing
to the same rules and regulations for commercial business
Direct Municipal Management
o Local management
o Supra Local Management
Private Sector Participation, improve economic efficiency and reduce
the public budget deficits. Public-private partnerships, management,
lease, BOT
Private Ownership
Palestinian water legal framework
Palestinian Inter-Ministerial Co-ordination in the Water Sector
Responsibilities of role players framework
Mission & vision of the utility


The mission is a statement of entity and purpose. It states who we are
and what we do. It is a function of management, should be consistent with
the national policy and goals to achieve the overall mission of the water
resources management
The vision is a clear image of what utility wants to be in the future. It
indicates what we are striving to achieve and where we are headed. It is a
function of leadership
Relation between the vision and mission
Examples of Mission & vision
Mission example:


To provide the water and wastewater services adequately to all users in
accordance with the national policy at an affordable price
To provide and maintain an adequate supply of safe water for
consumption and fire protection, with quality service and at a reasonable
price.
Vision example: To be a regional and national water industry leader
emphasizing quality product, services, and cost containment
Types of planning






Organizational
Capital projects
System growth
Operations
Financial
Emergency
Planning process






Team
Identify problems, planning objectives and constraints
Defining the status
Formulate alternatives
Evaluate alternatives
Implement the plan

Exercise and update the plan
Utility planning elements











Personnel
Organization
Finance
New opportunities
Public and customer relations
Operations and maintenance
Safety and Risk Management
Interagency and governmental Relations
Technology
Purchasing and procurement
Capital projects planning
Utility planning steps and options








Selecting planning horizon
Estimating market demand
Comparing demand and capacity
Adjusting output to demand
Increase yield from existing supply systems
Reduce demand. Education and public awareness. Price, incentives and
regulation
Use reclaimed water (wastewater and storm water)
Expand supply system
Planning time frames
Short range
0 – 5 years
Immediate needs
Medium Range
0 – 10 years
Utility mission
Long range
0 – 20 years
Utility vision
Developing a management plan
The main water reform policy








Strengthening of regulatory and executive functions.
Services should be demand-driven…based on the users’ willingness and
ability to pay
Financial and environmental sustainability.
Human resources development.
Community participation.
Private sector participation.
Separate regulatory and service delivery functions;
Provide access to the market for competitors
Reasons for water reform







Inefficient and inappropriate water use
Fragmented institutions
Water supply quality and quantities problems
Rising life-cycle costs in water infrastructure
Lack of environmental awareness
Bad staffing management and overstaffing
No recognition for sustainable use of resources




Lack of links between the various institutions for better cooperation and
coordination
Lack of management for wastewater and storm water as a resources
Non-availability of water reuse
High operational costs
Objective of the water sector reform





The main objective is to create economically viable and ecologically
sustainable water industry leading to the sustainability.
Enable and encourage utilities to achieve efficient and new service and
performance standards with the purpose of ensuring service delivery to all
citizens.
Enable and encourage utilities to achieve operating cost recovery and cost
effective operation.
Encourage the private sector to finance, manage and operate projects in
the sector, in a competitive manner not leading to monopoly.
Create conditions for self-financing of Governorates water and wastewater
projects in the future.
Elements of the water reform







Water policy
Strategic planning and investment
Water demand and water supply management
o Tariff
o Conservation and awareness
o Water allocation
o Efficiency improvements
Financing, investment
Private sector participation
Institutional reform
Local and regional cooperation
The main challenges for water reforms




Water to be treated as both a social and economic good.
Water to be managed within a comprehensive framework, taking into
account cross-sectoral considerations.
Water to be managed at the lowest appropriate level, employing a
demand-based approach and facilitating participation of all stakeholders.
Institutional and policy reforms to be linked to incentives influencing
decision making.
Water reform process


Institutional restructuring and responsibilities setup
Integrated catchments management









Separation between resource management and regulatory roles
Greater responsibility at the local level for the services management
Encourage privet sector participation and partnership
Adopt new modern water demand techniques
Pricing is to be based on the principles of full cost recovery to cover at
least operation and maintenance
Extension and future new investment should be economically viable and
ecologically sustainable
Comprehensive systems of water allocations or entitlements
Greater public education and participation
Appropriate research into water use efficiency technologies
Key elements for sustainable utility










Enabling environment through appropriate policy, regulation, standards
and works
Strong institutions with clear responsibility legitimate right, financial
resources, strong leadership, ability
Supportive attitude through establishing appropriate policies to motivate
the utility staff and partnership with the community
Appropriate service level
Materials and equipment
Continuous services improvements
Public awareness
Expertise and skills
Use appropriate technology
Comprehensive operation and maintenance programs
References
PWA reports and publications
World Bank publications
UMI materials
COAG publications
Water services improvement project in Gaza-PWA