WOP Africa - Peer to Peer Learning and Benchmarking Project

• Reference: P-Z1-EA0-005
• Approval date: 26/11/2009
• Start date: 26/11/2010
• Appraisal Date: 05/10/2009
• Status: ApprovedAPVD
• Location: All Africa
• Implementing Agency: AFRICAN BANKING CORPORATION HOLDINGS LTD

The project aims at improving the service quality to utility customers by improving the sustainability of the operation and maintenance of existing assets including critical parameters of financial and technical performance.

Better service to customers through more sustainable utility operations including better -Quality of Service -Financial Performance -Technical Performance -Coverage

On average, utilities provide water to only about 65 percent of the population within their supply areas while sewerage services coverage is only 36 percent. Most utilities are currently struggling to cover even their operating costs. Less than half of the utilities can be considered financially viable and, for many, poor performance on collections seems to be the main problem. The findings also show that Non-Revenue Water (NRW) is a major weakness for most utilities. In many systems, as much as a third of production is lost due to technical and commercial losses and, on average, utilities in the sample get revenue for only half of the water they produce.

The evolving WOP-Africa program is well placed to connect utilities and facilitate knowledge sharing and capacity building - especially on improving technical efficiency and improving cash flows, areas that are critical to improving service coverage. Crucially for a successful peer support approach, there are some well-performing utilities in Africa. Many countries have improved the institutional framework making it possible for utilities to shift from crisis management to strategic planning and performance improvement, which can be emulated by those still lagging behind.

Ten peer-to-peer learning partnerships will be supported through the African Water Association (AfWA) and the newly established WOP Secretariat based in Johannesburg under Component 1 of AWF funding. Each of these partnerships will implement a specific Performance Improvement Plan specifying substantial improvement of critical parameters for customer service, financial and technical performance. The benchmarking and performance assessment will provide an update of the 2006 data available and install an operational database under Component 2. These components will contribute to accelerated improvement of utility performance through more intense and systematic knowledge sharing. The required 'champions' achieving international best practice are available for most parameters and regions.

HOLLHUBER Franz - AWTF