Le sens de l’événement
do not have access to safe drinking
LE SENS DE L'ÉVÉNEMENT
water, and that 2,4 billion are without access to adequate sanitation (WHO 2000). Globally, the proportion of the
The World Water Summit Le sommet mondial de l’eau
world’s
population
receiving
« improved » water supply and sanitation services has increased over the past few decades, but the absolute numbers of individuals lacking access to improved supplies has also increased (a statistical artifact of population growth). Attention of the international community has been focused on increased expen-
Karen Bakker
diture on water supply and sewerage services since the International Water and Supply Sanitation Decade in the Le programme des Nations Unies pour le Développement, PNUD, a déci-
Third World Water Forum (1)
1980s (WHO 1990). Water supply and
(Kyoto, Japan, March 16-23, 2003)
sanitation expenditures, as a proportion
dé au sommet de Rio de 1992 de pro-
of total aid (or « cooperation ») budgets
duire un « World Development Report »
The Third World Water Forum was orga-
et d’organiser sur une base régulière un
nized by the Global Water Partnership
steadily since the 1980s, to 6,6 % in
« sommet mondial de l’eau ». Cet évé-
and the World Water Council as simulta-
1996 (WHO 2000).
nement a eu lieu trois fois, à Marrakech
neous public and ministerial confe-
(mars 1997), à La Haye (mars 2000) et à
rences (see www.worldwaterforum.org).
in OECD countries, have increased
Participants at the Rio Earth Summit
Kyoto (mars 2003). De nombreuses
This briefing note summarizes two of
(1992) and the Johannesburg World
activités se déroulent dans ces som-
the most prominent themes : Financing
Summit on Sustainable Development
mets. Parmi elles, le « World Water
Water Infrastructure (Kyoto, March 20,
(WSSD) (2002) acknowledged that
Forum », organisé par deux structures
21) and Public Private Partnership
more financial resources would be nee-
associatives qui fonctionnent comme
(Osaka, March 18, 19). Background
ded to achieve sustainable develop-
des structures de lobbying, ou des
information, session summaries, high-
ment and poverty reduction. Access to
Think
lights, and a listing of related sessions
fresh water was identified as a major
are provided.
concern requiring considerable additio-
Tanks :
le
Global
Water
Parnership et le World Water Council (voir encadré). Ce « Forum mondial de
nal resources (WWAP 2003). Mention of
l’eau » est un grand moment dans la vie
Theme 1 : Financing Water
de ce milieu professionnel. S’y rencon-
Infrastructure
trent les membres des administrations,
Theme
des agences de développement, des
Council, Global Water Partnership, Third
conference declarations in the late
firmes, les experts, les médias et… les
World Water Forum
1990s, such as the World Water Vision
Organizers :
specific targets (e.g. of halving service deficits in water and sanitation services
World
Water
ONG opposées à l’entrée du secteur
globally) began to appear in reports and
(Second World Water Forum, The Background
Hague, 2002), the UN’s Millennium
témoin de ce forum et nous en offre un
The World Health Organization esti-
Declaration (2000) and the WSSD state-
compte rendu.
mates that 1,1 billion people worldwide
ment
privé. Notre collègue Karen Bakker a été
(2002).
In
its
Millennium
111
Flux n° 52/53 Avril - Septembre 2003
Declaration, the United Nations set a
ment a « user pay » principle, a cholera
the panel to distinguish between capital
target of reducing by half the proportion
epidemic in Kwa-Zulu Natal forced the
expenditure and operating expenditure
of
requirements.
sustainable
Department of Water Affairs to acknow-
access to adequate quantities of affor-
individuals
without
ledge that lack of affordability (despite
dable and safe water by 2015. The sta-
willingness to pay) was preventing
- Creating and accessing local public
tement of the UN-sponsored WSSD
consumers from accessing water sup-
capital markets for urban infrastructure
extended this target to include sanita-
plies ; accordingly, the South African
The organizers, the US Environmental
tion. Meeting these targets poses finan-
government has now implemented a
Protection Agency in cooperation with
cial challenges, which were examined in
« lifeline » water policy, with a free basic
USAID, emphasized the fact that the
the sessions in this theme.
minimum amount for all consumers. In
cost of providing and replacing basic
response to audience questions, the dif-
urban environmental infrastructure far
Summary of Sessions
ficulty of reconciling affordability with
exceeds likely private investment and
As summarized below, the sessions
self-financing approaches was acknow-
international aid flows combined ; crea-
were structured around different types
ledged by panelists, with suggestions
ting and accessing local public capital
of financing mechanisms, proposed by
that transfers/subsidies from other
markets is one means of sourcing requi-
distinct groups (including investment
levels of government might still be requi-
red finance. Panelists presented case
banks, bilateral aid agencies, venture
red.
studies from developing countries
capital firms, NGOs, bond financing advisers) :
(including India and Mexico) of local - International solidarity between
public capital market development. The
consumers
panel addressed the positive aspects of
- Self-financing local water manage-
Representatives of « Projet Solidarité
local finance (e.g. avoidance of currency
ment
Eau - France » presented information on
risk ; greater accountability ; the cataly-
Organized by the Association of Dutch
various initiatives around the world see-
tic role of bond finance in broad-based
Water Boards, this session focused on
king to meet water and sanitation needs
urban governance reforms), as well as
community initiatives in Indonesia,
in developing countries through interna-
means of surmounting potential hurdles
South Africa, Holland and Egypt. The
tional
For
and barriers (e.g. legislative barriers ;
focus on the local level was thought to
example, a levy on water bills in England
small scale of many urban infrastructure
be merited, insofar as « the local level is
and Wales is used to fund WaterAid, the
projects ; lack of local bond rating capa-
where national policy meets community
largest UK-based charity dedicated
city).
needs »
Bonn
towards improving access to water and
Declaration). Drawing on the Dutch
sanitation supplies in developing coun-
- Creating public financing mechanisms
case, details of governance and finan-
tries. The PS Eau proposal focused on
for water supply and sanitation infra-
cial models necessary for self-financing
generalizing this approach, with levies
structure
of water supply management were dis-
on consumers’ water bills in the First
The organizer, USAID, presented case
cussed ; emphasis was placed on the
World being directed towards invest-
studies of successful public financing
« interest-pay-say » approach, in which
ment in the water and sanitation sector
mechanisms, drawing on experience in
(as
stated
in
the
solidarity
mechanisms.
« who benefits will pay, but also gets a
in the developing world. Audience
the USA with State Revolving Funds for
say ». Challenges to generalizing this
members questioned the degree to
urban infrastructure investment. USAID
approach to developing countries were
which this model could realistically
has been involved in adapting and
discussed, with particular reference to
generate the financial flows required,
extending this model to developing
the South African case, where after
and raised questions about oversight
countries ; case studies were discus-
several years of attempting to imple-
and ring-fencing of funds, while asking
sed. The benefits of using the SRF
112
Le sens de l’événement
model as a means of leveraging finance
tor, presented an outline of an ongoing
by 2015. The statement of the UN-
were emphasized ; institutional barriers
project intended to develop private
sponsored WSSD extended this target
were discussed, as were the respective
capital markets and financing mecha-
to include sanitation. Estimates of the
roles of donors, local governments, and
nisms for public-private partnerships in
financing requirements for these targets
national governments. Audience mem-
the water sector. The session examined
are recognized to be relatively impreci-
bers raised questions regarding the
the socio-economic drivers for the feasi-
se, given that accurate data on current
applicability of the US model to other
bility of PPPs, the feasibility of various
annual financing in the water and sani-
countries, and distinguished between
contractual models, new project finan-
tation sector are not available, and given
Middle Income Countries (with relatively
cing mechanisms, and means of redu-
the sensitivity of financing projections to
high rates of savings and availability of
cing investment costs through project
variables such as population growth.
domestic capital), and Low Income
design and management strategies.
Nonetheless, financing requirements will
Countries ; the applicability of the model
Audience members challenged the nar-
need to double, at least, in order to
to HIPC countries, in particular, was
row focus of the session on PPPs, and
meet the UN targets ; the required
questioned.
queried the organizers as to why a
amounts are be significantly greater
diversity of business models, as advo-
than
- Alternative technology as a substitute
cated by the Global Water Partnership
through public or donor finance. In res-
for finance
(see section 2, below) and other
ponse, the World Panel on Financing
The organizers, representatives of the
Financing Water Infrastructure session
Water Infrastructure report articulated
International
organizers, had not been considered.
the need for a new financial architecture
Water
Resources
Association, emphasized the need to
resources
currently
available
to stimulate and support flows of priva-
consider alternative technologies as a
- World Panel on Financing Water
te capital for water and sanitation
means of meeting water supply and
Infrastructure
(Winpenny 2003). Particularly innovative points included :
sanitation needs, allowing communities
Commissioned by the organizers of the
to adopt « least cost » approaches
Third World Water Forum, the Panel,
where appropriate, thereby reducing
chaired by Michel Camdessus (former
other types of finance to induce a larger
financial requirements. Implicit in much
General Manager of the IMF), brought
total flow from all sources (e.g. through
of this discussion was a challenge to
together the Presidents of major multila-
using ODA, or other forms of conces-
traditional engineering models (large-
teral development banks (IADB, ADB,
sionary finance, to provide risk guaran-
scale reticulation networks, individual
EBRD, WB), and representatives of the
tees for private investors),
household connections), and also to the
IFC, Citibank, US Ex-Im Bank, private
financing estimates contained in docu-
water
Thames
sector of lending and investment in the
ments such as the Camdessus Panel
Water), government representatives
water sector (e.g. through the creation
report (Winpenny 2003). The organizers
(from Mexico, Ivory Coast, Pakistan,
of new risk mitigation facilities by
emphasized the need to take local
Egypt, and France) and two NGOs
governments seeking investment),
water use practices into account, and to
(Transparency
develop locally sensitive, appropriate
WaterAid).
companies
(Suez,
International
and
technology solutions.
- combining official aid (ODA) with
- mitigating the risks to the private
- financing in local currency to minimize exposure to currency risk (e.g. through developing local capital mar-
In its Millennium Declaration, the
kets, and funding sources, perhaps
- New project financing mechanisms
United Nations set a target of reducing
through the creation of local develop-
for public private partnerships
by half the proportion of individuals
ment banks),
Price WaterHouse Coopers, a firm with
without sustainable access to adequate
- the creation of a publicly funded
extensive experience in the water sec-
quantities of affordable and safe water
devaluation liquidity backstopping facili-
113
Flux n° 52/53 Avril - Septembre 2003
ty to reduce currency devaluation risk
background on their motivation for
Association, this session brought toge-
for water utility operators taking on forei-
organizing the session :
ther
gn currency commitments,
case
studies
of
successful
examples what the organizers termed
- directing ODA and other forms of
« Privatization in the water sector
concessional finance towards covering
has been a subject of heated debate,
supply provision : municipal public ; cor-
the large, fixed costs associated with
drawing the attention of the international
poratized public ; private sector partner-
private sector participation contracts
community in and out of the water sec-
ship ; and privatized utility. Emphasis
(such as bid preparation and tender).
tor. Some have argued that there has
was placed on the viability of each of
the four main business models for water
been growing pressure to turn water
these models, under the appropriate
These proposals, as well as the
delivery and sanitation services over to
conditions ; the strengths and weak-
composition of the Panel and the lack of
private corporations and a reliance on
nesses of each model were explored by
public consultation on the report, were
the profit motive to ensure quality of
the case study panelists, from the USA
critiqued by audience members and by
access for all people. Others insist that
(Seattle, municipal public), Australia
some government representatives at
there are many successful approaches
(Melbourne, Brisbane and Adelaide,
the session, who raised numerous
to the ownership, management, delivery
corporatized public) ; France (Marseille,
points : the lack of emphasis on alterna-
and financing of water and sanitation
private
tive technologies, levels of service,
delivery services around the world.
England (Thames region, privatized utili-
governance models, citizen input, and
During the Second World Water Forum,
ty). The importance of good governan-
methods of improving public sector per-
this issue became the central focus of a
ce, robust regulation, and community
formance ; the focus on encouraging
growing debate about the assumptions
participation and oversight was emphasized by all panelists.
sector
partnership) ;
and
private sector involvement to the exclu-
around private sector involvement in
sion of other business models ; the
water services and the threat to human
ethics and feasibility of providing risk
rights and the environment. It is time to
- Global water liberalization scenarios
mitigation and cost reduction to the pri-
fully air the issues that have fueled this
Organized by academics from the Ecole
vate sector via the use of public funds ;
growing debate ». (Session Profiles,
polytechnique fédérale de Lausanne,
and the significant transformation in the
Third World Water Forum, p. 4).
this session explored the likelihood of
purposes and premises of ODA finance.
water liberalization, and forms which The Council of Canadians (2), one of
water liberalization may take around the
Theme 2. Public Private Partnership
the most vocal opponents of privatiza-
world. Focusing on liberalization of the
Theme
Water
tion at the Second World Water Forum,
water supply sector, panelists discus-
Partnership (www.gwpforum.org) and
was asked by the Japanese Secretariat
sed the pros and cons of liberalizing the
Council of Canadians (www.cana-
of the Third World Water Forum to co-
water sector, and outlined emerging
Organizers :
Global
dians.org).
organize the sessions, as a means of
market dynamics of the sector, inclu-
fostering dialogue. The theme co-orga-
ding the emergence and consolidation
Background
nizer was the Global Water Partnership
of « public services TNCs ». Panelists
Spread over two days, the Public
(see footnote 1), one of the co-organi-
distinguished between different modes
Private Partnership theme was one of
zers of the Third World Water Forum.
of « private sector involvement » : the
the most high-profile sessions at the
impact of private sector management
conference, attracting a diverse audien-
Summary of sessions
techniques ; the impact of private finan-
ce from academic, government, interna-
- Business models for utility services
ce ; and the direct involvement of the
tional financial institutions, and NGOs.
provision
private sector in production of provision
The organizers provided the following
Organized by the International Water
of services. A representative of the
114
Le sens de l’événement
Pacific Institute presented a recent
examples of « alternative » approaches
- Alternative approaches to water sup-
report on the ethics and impacts of pri-
to water supply provision. Of particular
ply provision
vate sector participation in water supply
interest was the case study of DMAE,
At this session, organized by the
(Pacific Institute 2002).
the municipally owned water supply uti-
Council of Canadians, the focus was on
lity for the city of Porto Alegre, Brazil
examples
- Public Private Community
(population : approx 1.5 million). Fully
water supply systems. Case studies included :
of
community-controlled
Partnerships to Serve the Poor
self-financed with a progressive tariff
The concept of PPCP received attention
structure (increasing block tariffs, but
in many sessions at the conference (see
with cross-subsidies and a « social
3 millions), the water supply utility in
section 2.3, below). Advocates of PPCP
tariff » for poor families), with nearly
Wales, which converted in 2001 from a
begin from an acknowledgement of per-
100 % coverage for water supply despi-
privatized utility into a not-for-profit
formance failure of conventional urban
te rapid recent population growth, and a
company, owned by its members (see
water supply to the poor, and emphasi-
non-payment ratio of only 8 %, and high
Bakker, forthcoming 2003)
ze the actual and potential contribution
approval ratings (consistently over
- SEMAPA, the water supply utility in
of small scale private enterprise and
80 %) for its services, DMAE performs
Cochabamba (Bolivia), which has intro-
NGOs in service provision – particularly
well above the average for public utilities
duced forms of citizen participation in its
- Glas Cymru (population supplied:
to the urban poor. Emphasis is placed
in developing countries. Emphasis was
board management after the cancella-
on developing not just Public Private
placed upon democratized workplace
tion of the private sector participation
Partnerships, but also Public Private
structures, selective use of the private
contract in the city
Civil Society Partnerships. At this ses-
sector for out-sourcing while retaining
- DMAE, the water supply utility in
sion, examples of PPCP from Manila,
full municipal control over strategic deci-
Porto Alegre (Brazil) which involves citi-
Jakarta, and England and Wales were
sions, and the importance of the « parti-
zens in a « participatory budgeting »
given. A representative of the ADB pre-
cipatory budget » planning process, in
process, which is viewed as central to
sented findings of a recent report (ADB
which citizens vote to determine budget
creating social solidarity (necessary for
2003), emphasizing the policy gaps and
allocations by the municipality for
support of cross-subsidies and higher
failures on the part of multilateral agen-
increasing social solidarity and support.
tariffs) and community oversight of
cies, which have emphasized traditional
The second case study focused on
municipal activities In addition to techni-
engineering solutions and large-scale
Rand Water, the largest corporatized
cally competent and professional mana-
private sector partnerships (usually led
water utility in South Africa, operating in
gement, participants emphasized the
by MNCs), and have failed to focus on
the Johannesburg region supplying bulk
importance of transparency, efficiency,
pro-poor contracts, to sufficiently incen-
water to several municipalities with a
social control, and a social justice man-
tivize coverage expansion in contracts,
total population of 10 million. Emphasis
date for the creation of a sustainable uti-
and to adequately support the develop-
was placed upon the management
lity, supported by the community.
ment and application of regulatory fra-
autonomy and financial strength of
meworks necessary for well-functioning
Rand Water, which borrows on the
- Plenary session
utilities (whether public or private).
public capital markets and has a BBB +
The intention of the organizers of the
credit rating. South Africa’s experience
Third World Water Forum was to collate
- Alternative approaches to water sup-
with « lifeline » water tariffs — in which a
views from participants through the pro-
ply provision
free basic minimum water supply is sup-
duction of « theme statements », which
Organized by the International Water
plied to consumers, to ensure public
were in some cases shared by theme
Association, this session brought toge-
health needs in a context of high rates
organizers at the wrap-up plenary ses-
ther
of poverty — was discussed.
sions. In the case of the « public private
case
studies
of
successful
115
Flux n° 52/53 Avril - Septembre 2003
partnership » theme, no consensus was Encadré
reached by the two organizers (the Global Water Partnership and the Council of Canadians). The GWP emphasized the viability of different business models (public and private) and the importance of accountability, transparency, strong regulation, and citizen input for all water utilities. The Council of Canadians agreed but emphasized the failures of private sector partnerships, and the importance of meaningful community control through participatory democracy of a reformed
The Global Water Partnership is a Sweden-based selective membership NGO, whose members subscribe to the Dublin-Rio principles. The GWP was created by the World Bank, UNDP and SIDA in 1996, and it retains close ties to multi-lateral development banks and international financial institutions, the bilateral aid community, and private water companies. The World Water Council Founded in 1996 by representatives of a private water company (Suez Lyonnaise des Eaux), CIDA, and the Egyptian Ministry of Water Resources and Irrigation (now respectively Vice-President, Board Member, and President of the Council) and based in Marseille (France), the World Water Council is an « international water policy think tank » with a membership of 300 organizations (largely private companies, government ministries, and international organizations).
public sector. Notes (1) Author : Dr Karen Bakker, University of British Columbia ; Tel/Fax : +1 604 822 5870/6150 (
[email protected]) (www.geog.ubc.ca/~bakker).
(2) Founded in 1985, the Council of Canadians, an open membership NGO and « citizen’s watchdog » organization, is one of the largest membership organizations. Bibliographie
ADB 2003, Beyond Boundaries. Manila : Asian Development Bank. BAKKER K., forthcoming 2003, « From public to private to… mutual ? Restructuring water supply governance in England and Wales », Geoforum. Pacific Institute 2002, The New Economy of Water : The risks and benefits of globalization and privatization of fresh water, Authored by P. Gleick, G. Wolff, E. Chalecki, R. Reyes, Oakland, California : Pacific Institute for Studies in
Development, Environment and Security, February. WaterAid 2003, Does PSP Benefit the Poor : The Synthesis Report, Authored by E. Gutierrez, B. Calaguas, J. Green, V. Roaf, London ; WaterAid and Tearfund. WHO 2000, Global Water Supply and Sanitation Assessment, Geneva : World Health Organization and UNICEF. WHO 1990, The International Drinking Water Supply and Sanitation
Decade : Review of Decade Progress, Geneva : World Health Organization. WINPENNY J., 2003, Financing Water for all : Report of the World Panel on Financing Water Infrastructure, Chaired by Michel Camdessus, Published by : World Water Council, Third World Water Forum, Global Water Partnership. WWAP 2003, Water for People, Water for Life, The United Nations World Water Development Report. World Water Assessment Programme.
Sens de l'événement « La crise énergétique en Californie. We want the power now ! », Flux n° 43, janvier-mars 2001, pp. 70-72 « Zoé dans le métro », Flux n° 44/45, avril-septembre 2001, pp. 96-98 « Les enjeux de la Directive cadre sur l’eau de l’Union Européenne », Flux n° 46, octobre-décembre 2001, pp. 70-75 « Développement durable, réseaux techniques et terrorisme », Flux n° 47, janvier-mars 2002, pp. 80-83 « Les négociations sur le climat : un bref retour sur l’histoire », Flux n° 48/49, avril-septembre 2002, pp. 100-106 « L’ouverture de capital du groupe ASF-ESCOTA », Flux n° 50, octobre-décembre 2002, pp. 76-79 « La chute de la maison Andersen », Flux n° 51, janvier-mars 2003, pp. 75-82
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