From rationing to full service : water and sanitation challenge for Bombay

/ - 1 NUMBER 128 * ED Preciss Operations Evaluation Department November 1996 From Rationing to Full Service: Water and Sanitation Challenge for Bombay In many cities of the developing world, case, the poor suffer disproportionately ter and a small portion of the sub- daily water interruptionis are common from the inconveniiences and health urbs, with septic tanks and privies and adequate sanitation is ulnavailable hazards posed by water interruptions used elsewhere. More than 50 per- for large segments of the populationi. and poor sanitation. cent of the population, even those Municipalities ofteii view the rationing who lived in sewered areas, relied of these services as their best, if not To a large extent, Bombay's water on communal facilities. During only, option to cope zvith urban popu- rationing need not exist because the heavy rains, overloaded sewer sys- lation growthi. A recent OED impact gross supply is sufficient to meet the tems flooded streets with mixed evaluation of thiree World Bank loans needs of the currenit population. Fur- sewage and stormwater. Septic to Bombay's water and sanitation sec- ther, thzere is ample scope to reduce tanks overflowed, nightsoil was tor over 1972-95 challenges this view. waste oni both the supply and demand tipped into water courses, and in- sides and to raise the very low tariffs dustries discharged their wastes The projects increased gross water for households to fund the rehabilita- directly into drains and creeks, supply 65 percent and expanded sewer- tion and expansion of sanitation facili- creating serious environmental age coverage and sanitation facilities ties and water and sewerage networks. hazards. in the downtown district and the east- These facts form thze foundationi of the erm shore. During the same period plan of action recommended to finally Although the creation of the Bombay's population grew 80 percent, meet the objective set out in 1972: pro- Bombay Water Supply and Sewer- far outpacing projections, and despite viding uninterrupted water supply and age Department (WSSD) in 1971 strong economic growth, the propor- adequate sanitation for Bombay's reduced the institutional fragmen- tion of the poor increased, as did the populationz. tation that had prevailed until slums they occupied. Without the pro- then, it did not eliminate it. Nor gram, water supply would hazve been The setting cut 40 percent from the current meager levels of 2 to 8 hours daily and the In the early 1970s, about 80 per- *Impact evaluation report: health and environmental hazards froni cent of Bombay's 6.5 million people "Water Supplil and WVaskt'water uncollected sewage would be close to received piped water service, but Services in Bombay,' by Tauno catastrophic. many relied on public standpipes. Skytta and others, report no. Although water was chlorinated, 15849, June 1996. Available to Still, interruptionis in water supply only 6 percent was fully treated. Bank executive directors and continue unabated because of leaks in Leaks were widespread and waste- staff from the Internal Docu- the network and wasteful household ful practices were prevalent. As a ments Unit and from regional habits related to malfunctioning result, the gross supply of more information service centers, meters, highly subsidized tariffs, and than 200 liters per person per day and to the public froml the Pub- the service interruptions themselves; as (lcd) provided only 6 hours of ser- lic Infor mationi Center: 1/202- a result water is often unsafe to drink. vice daily. 458-5454, fax 1-2021522-1500, Similarly, there are still too few la- email pic 4 worldbank.org. trines and those constructed by the Sewerage and sanitation posed Pr6cis written by Farah projects are underused because of inad- similar challenges. Bombay's sewer Ebrahimi. equate maintenance. As is often the service was limited to the city cen-  Bombay Water Supply and Sewer- which the recommendations were During system expansion, age Project (BWSSP-I, approved discussed and adopted by MCGB. 1971-95, population doubled, in 1973), sought, mostly through leaving gross per capita water capital outlays, to fully use avail- Impact availability nearly the same able water sources; improve the quality of supply and the effi- Technical results and economic impact ciency of the distribution system; and, to a lesser degree, rehabilitate The projects increased the gross and expand the sewerage system. supply of water by 65 percent, the The project also sought to develop number of connections 84 percent, WSSD's capacity to carry out and standpipes 800 percent. Al- the development program and most 75 percent of connections operate its systems, to ensure have meters. But during the same , BWSSP-1D WSSD's financial viability, and period, Bombay's population in- 25 to consolidate the management creased 80 percent, leaving per 20 . / B\VSSP-; i of Maharashtra's water resources. capita water availability un- 20 wJ /~J-BwssP-I BWS~P-- 0 changed at about 250 lcd 15 vat maBWSSP-II and III (approved (see figure). 0 ' in 1978 and 1986, respectively) 5 / retained the same objectives as Although enough water is made o -R . BWSSP-I, largely because the available to the system to ensure objectives had mostly remained round-the-clock supply, service 81 89 unmet. BWSSP-III (completed in is available for only 2 to 8 hours June 1996) provided institutional daily in most areas. The reasons Year support for WSSD and sought to are several. First, poor leak detec- -WX.ater supply per capita tILhers per expand water supply and waste- tion keeps unaccounted-for water capita per day x 10) water facilities to keep pace with extremely high, at 40 to 60 percent Aggregate water supply capacity increasing demands. In addition, it based on 24-hour water supply. (million liters per day xlOO) planned to expand earlier efforts Second, inadequate maintenance - Population f millions l. Municipal to provide sanitation and water has left only 15 percent of meters Corporation of Greater Bombay services to the poor. working effectively, which com- service area bined with very low water rates All three projects experienced for residential customers, encour- serious implementation problems, ages wasteful household practices. was the autonomy at first envis- some due to external factors and Finally, the water interruptions aged for WSSD realized. At the others to inadequate institutional themselves encourage waste, since state level, water resource man- capacity and weaknesses in project customers tend to leave taps open agement and development were design. For example, the world- and to store more water than they shared by several government wide inflation and shortages of need to keep themselves in supply agencies and poorly coordinated. construction material during the during water interruptions. Water 1970s largely caused the long de- rationing is proving costly in other Goals and implementation lays and high cost overruns of the ways as well. Because of unreliable first project. Moreover, outdated service, customers invest in expen- In 1971, the Municipal Corpora- urban policies encouraged rapid sive pumping and storage facili- tion of Greater Bombay (MCGB) growth of slums, complicating the ties, a solution that is far costlier proposed a program to develop delivery of urban services. The de- than upgrading the system. Bombay's water supply, sewerage lays and cost overruns forced sig- system, and wastewater disposal. nificant modification of the first Although the projects included The program sought to improve two projects midway through some components for system reha- the health and living conditions of implementation. bilitation, they focused on major Bombay's population by alleviating new construction. Consequently, water shortages and mitigating the In 1994-95, OED evaluated the important benefits that could dangerous sanitary conditions. social, health, economic, institu- have accrued from relatively low- The Bank supported the program tional, and environmental impacts cost improved maintenance and through three projects approved of the MCGB program over the rehabilitation, such as better leak between 1973 and 1986. 1972-94 period. The evaluation detection and more reliable and drew on documents, site visits, better maintained meters, were Because of the size of the effort, and a 1994 social survey to arrive not achieved. The Bank shares the program was divided into two at its findings. A workshop was responsibility for this one-sided phases. The first, financed by the held in Bombay in May 1996, at approach given that it agreed to November 1996  curtailing rehabilitation when the In nonslum areas, almost all related diseases. Two factors may project went through mid-course households have access to toilet partly explain the lack of noticeable correction. facilities, largely because of the pro- change. First, although water now gram. But most slum dwellers sur- meets acceptable quality standards The projects made only mar- veyed complained of inadequate when it enters the distribution sys- ginal improvements in expanding toilet facilities in their neighbor- tem, it is recontaminated because the sewerage system and in im- hoods and poor design and main- of the daily shutdowns. Second, proving sanitary conditions for tenance that left many latrines lower incidence of disease depends slum dwellers. Facilities for col- unused. A third of the respondents also on improved interventions in lecting, screening, and disposing indicated they were willing to pay health care and education, factors sewage for the harbor area of the more for improved toilet facilities. external to the program. eastern shore were completed, but Based on survey responses pay- two key wastewater treatment and-use latrines, which are con- The sewerage components were plants and the marine outfalls for nected to sewers and operated by to provide the primary environ- the western harbor were not. Of the private sector in high traffic ar- mental benefits of the program. the 35,000 latrines in Bombay, a eas, and community-operated facili- Part of the system has been ex- third were out of commission, the ties for slum dwellers seem more panded and two short marine result of poor maintenance. At responsive to consumers' prefer- outfalls are in use, thereby relieving 170 slum dwellers per latrine, the ences: clean, well-lit facilities with street-level and near-shore pollu- poor are grossly underserved with water supply and connected to tion in the areas served. But about sanitation. sewers. 75 percent of all sewage is still un- treated and discharged to local wa- Despite the shortcomings, Health and environmental impact terways and coastal waters, causing the program's economic benefits extensive environmental hazards. greatly exceeded its costs. The in- Project designers had believed The follow-on Bombay Sewage Dis- creased capacity prevented crip- that if the hours of water service posal Project, which started in 1995, pling water shortages. Without it, and the number of standpipes were is aimed specifically at addressing gross water supply, now about 250 increased in the slums and water these shortcomings, especially its lcd, would be about 150 lcd. And fully treated, the incidence of low-cost community-based sanita- service interruptions, urban envi- water-related diseases would de- tion component. ronmental pollution, and unsani- cline. Although full treatment was tary conditions would be far implemented and the number of Institiutionial and financial impacts worse, seriously impeding eco- standpipes expanded significantly, nomic growth, as happened in a 1992 health survey showed little The projects helped WSSD de- other cities in India. change in the incidence of water- velop into a moderately well-run Social inmpact An OED survey of 1,500 house- Improving water supply: success story in the town of Pusad holds carried out in 1994 com- In 1980, 2,000 water meters were Previously, water charges were pared conditions at the time of installed in Pusad, a rural town based only on the size of the con- the survey with those ten years with a population of 30,000 people nection. The meter installation earlier. The results indicate that in Maharashtra. Consumers con- made a volume-based tariff pos- for water supply, house connec- tributed $18 of the $25 cost of each sible, thus turning operating losses tions increased significantly, but meter, with the balance furnished of $12,000 to a surplus of $4,300. that in relative terms, the level of by the municipality. Although the While water cost to consumers in- standpipe use remained constant, quality of the meters was often in- creased 64 percent, the billing still and more households relied on in- adequate, the effects of the project accounted for only about 3 percent termittent service than in 1984. were positive. of household income for those just Respondents, especially in slum above the poverty line. As a result, areas, complained that water often When the project was completed, billings were readily collected, in- reached them in the early morning the water system provided uninter- dicating consumers' willingness to reached them intheearrupted service, compared with only pay. The internal rate of return for hours, causing family hardships. 7 hours daily before. Water pres- the metering project was nearly 30 Some 80 percent of households sure also rose throughout the sys- percent. do not trust the reliability of the tem. While before consumers had water supply. Based on the survey, had to install special taps in pits Source: Meterization in Developing other than an increase in house below ground to be able to obtain Countries-A Case Study, by S. S. connections, little progress was water, they now had tap water in Patwardhen, Maharashtra Water made in key indicators for con- their second story bathrooms. Supply and Sewerage Board, 1991. sumer satisfaction. OED Precis  organization, but operational weak- water from private water tankers. * Focus water supply operations nesses remain, putting sustainabil- The poorest households, those and investments on rehabilitation ity at risk. For example, WSSD is earning Rs 900 a month, spend instead of construction, with the overstaffed, at about 96 staff per less than 1 percent of their income goal of providing consumers with 1,000 connections (mostly for daily on water bills, while the other in- uninterrupted water service. Pro- operation of the valves to regulate come strata spend even less. Expe- grams to detect leaks, improve service between different areas), rience has shown that utilities that metering (as well as billing and compared with sector norms of use price mechanisms rather than collection), and upgrade second- fewer than 20 staff. service interruptions to rationalize ary networks and connections use are more efficient and respon- are essential parts of rehabilita- During the course of the pro- sive to consumer needs, including tion. These efforts should be gram, tariffs were raised several the poor, who cannot afford booster started incrementally and be times, and the government of India pumps and water storage facilities carefully monitored for cost, covered foreign exchange losses on to help them through rationing, benefits, and social implications, the agency's borrowings. As a re- and women and children, the and started where conditions are sult, the financial position of WSSD principal water haulers. most conducive to success. In this has improved since the 1970s and context, undertaking a pilot pro- remains generally sound. But the But proper pricing depends on gram is essential to assessing the tariff structure, which is set by well-operating metering, billing, contribution that loss reduction and MCGB, discriminates against com- and collection systems, all of which changes in consumption patterns mercial and industrial customers need improvement if the efficiency can make toward extending the sUp- in favor of residential consumers. of the system and the viability of ply of piped water to 20-24 hours While the latter use 90 percent of the agency are to be assured. per day. the water sold, they generate only 20 percent of the revenue. This high Recommendations * After consultation with users level of cross-subsidization creates and with the involvement of the pri- resentment among commercial and * Strengthen the institution. The vate sector, redesign new latrine industrial users and encourages most important determinant for components and retrofit existing them to develop, at great cost, their sustainability is a sound institution ones to ensure good maintenance. own sources of water supply, such that is responsive to consumer The social survey reveals the as establishing water recycling sys- needs and is financially viable. Fu- needs: latrines need water sup- tems. As the share of commercial ture projects should help WSSD ply, must be connected to sewers, consumption declines, the tariff streamline its staffing; simplify and be adequately drained and structure of WSSD becomes its procedures, particularly for equipped with lights. unsustainable. procurement; and strengthen its operational performance, such as * Restructure water and sewerage Households have shown that they in billing and collection. Moreover, tariffs so they reflect the full cost are able and willing to pay more institutional issues, such as gover- of supply. Limit subsidies to facili- for reliable water supply. During nance and regulatory frameworks tate access and to provide basic shortages, for example, they spend within which WSSD operates, need needs to the lowest income 50 times the public rate to purchase to be reexamined. population. OED Precis is produced by the Operations Evaluation Department of the World Bank to help disseminate recent evaluation findings to development professionals within and outside the World Bank. The views here are those of the Operations Evaluation staff and should not be attributed to the World Bank or its affiliated organizations. This and other OED publications can be found on the Internet, at http:// www.worldbank.org/html/oed. Please address comments and enquiries to the managing editor, Rachel Weaving, G-7137, World Bank, telephone 473-1719. Internet: rweaving@worldbank.org Novemnber 1996