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Building Sustainable Capital for WASHPresentation at Mole XXIII Conference, UDS International Conference Center, Tamale 21st – 25th August 2012 SkyFox Ltd
Introduction/BackgroundUnder community ownership and management (COM) concept,communities bear: 100% of operations and maintenance costs 100% system expansion costs 100% Capital replacement costs SkyFox Ltd
Challenges to building sustainable capital at the community level• Qualified personnel for specialized roles eg accountants for small towns• Collection (lack of tariff, inadequate tariff, ineffective collection, ineffective controls at collection points)• Management (Banking, pilfering, abuse) SkyFox Ltd
Challenges to building sustainable capital at the community level - 2• Growth (lack of it, leading to erosion of value resulting from inflation, discrete, lack of scale)• Catastrophic events – Power failures leading to burning of motors, floods etc• Inflation SkyFox Ltd
Proposed solutions1. Collection: Better community enforcement based on best practices2. Management : – District level accounting support – Mobile Banking, – District Assembly Audit SkyFox Ltd
Proposed solutions -23. Investment Community based savings and loans, Pooling and tapping on capital market4. Community based risk pooling and risk sharing schemes, (eg, Water Mutual Insurance and Commercial Insurance) – Can deal with catastrophic events SkyFox Ltd
Policy Recommendations• Implement National Water Fund – starting with non-state funding sources• Elevate CWSA from Agency to authority, with greater financial oversight responsibility over rural water operations• Redefine ownership of the portion of the funds to be set aside for capital replacement - from community to state (CWSA) SkyFox Ltd
Policy Recommendations• Compulsory two-tier investment policy for Community Water Management Teams 1. Compulsory contribution to a Pooled fund - CWSA level (20%) 2. Compulsory contribution to a Private financial firm of community ‘s own choice SkyFox Ltd
Conclusion• Maximum financial benefits of community management can only be realized if the proper balance of decentralization versus central control is achieved SkyFox Ltd
• Thank you• For more information contact • firstname.lastname@example.org SkyFox Ltd