Utilities
« Network infrastructure is struggling to meet customers’ needs in emerging countries. »

Context:

Water, electricity and telecommunication networks infrastructure in emerging countries is faced with the same issues, to varying extent, and uses the same solutions: (1) funding and absorbing high investment and maintenance costs for land-based infrastructure, particularly in decentralized areas; (2) handling the peak demand while maintaining profitability; (3) tailoring services, rates and payment terms to the low credit worthiness of a large proportion (60 to 90%) of customers; (4) limiting payment risks using prepayment.

Example of service provided:

Suggesting a funding and operating model for private drinking water distribution networks in rural areas, based on the principle of output-based aid.
  • Segmented analysis of the demand for drinking water in a number of rural areas in Morocco
  • Analysis of the payment capacity of customer segments
  • Analysis of investment and operating costs of a small, private network in rural area
  • Drafting of a business plan
  • Proposition of a water purchase price to the national producer (ONEP) and a selling price from the operator to customers
  • Proposition of a balanced pricing system for production and distribution
  • Business plan for a private operator
  • Calculation of output-based aid

Some significant references:

Country Customer Service provided
Mozambique National operator
World Bank
Economic and financial feasibility study of a project of extension of Maputo’s drinking water network
Mauritania Government Operational diagnostic and proposition of an action plan for the SNDE (Société Nationale des Eaux)
Philippines Asian Development Bank Feasibility study of a project of drinking water supply system in the city of Baguio
Mauritania Government Auditing SONELEC’s (Société Nationale d’Eau et d’Electricité) technical, commercial and financial performance ratios
Central African Republic Government Study on drinking water pricing from production to distribution. Study on the sector’s financial reorganization in Central African Republic