76535 INNOVATIONS IN DEVELOPMENT Metering and Billing Water Use in Rural Punjab 10 Punjab Rural Water Supply and Sanitation Project MINISTRY OF FINANCE Department of Economic Affairs THE WORLD BANK IN INDIA 2013 ISSUE 10 SUMMARY Rural Punjab introduces water meters and pilots 24/7 water supply E ven in prosperous Punjab, villagers face water. They also built overhead reservoirs to an acute scarcity of water. Demand for store water. water is rising with a growing population that wants improved service levels, but Metering and billing is being promoted to supply is increasingly constrained on account encourage people to save water and prevent of falling water tables and the deteriorating leakage and waste. By January 2013, 200 quality of ground water. While 17 percent of out of the 840 villages covered under the Punjab’s villages do not have water supply project had opted for metered household systems at all, the remaining 83 percent connections, and fifteen of these had round- receive only intermittent supply and, in some the-clock (24/7) water supply. About 90 areas, the water is contaminated with heavy percent of consumers are paying their water metals such as uranium. bills regularly, while the others are being persuaded to do so. Some villages now In 2006, the Punjab government launched have sizable savings in their Operations and a medium-term program under the World Maintenance (O&M) accounts—varying from Bank-supported Punjab Rural Water Supply Rs. 35,000 to Rs. 10 lakhs (Rs. 1 million). and Sanitation Project (2006-2013). It aimed to provide all the state’s 15,170 habitations A new online complaint redressal system is with 70 litres per capita per day (lpcd) reaching out to over 16 million people in more of safe drinking water by Dec 2013. The than 15,000 habitations. This is helping check project sought to make rural communities absenteeism or non-performance of staff in responsible for construction and management remote villages and making the management of their own water supply systems and to of the system more transparent, accountable make the systems financially sustainable, and citizen-friendly. with consumers paying for operations and The Punjab government plans to expand the maintenance on an ongoing basis. scheme to all its villages in a phased manner. Each scheme cost between Rs.37 and Rs.58 A new state water policy for the rural areas lakhs ($82,000-$129,000) and built a piped is being drafted to encourage metered water distribution network to households by connections, financial sustainability and, accessing ground water aquifers or canal where possible, 24/7 water supply. 2 MINISTRY OF FINANCE Department of Economic Affairs THE WORLD BANK IN INDIA Punjab challenges Rural Water Supply and Sanitation Project This was the first time that Punjab was implementing a community-based project to decentralize rural water supply and sanitation services T he project faced a number of challenges. households regularly paid Rs 60-70 per month Strong political commitment was as water charges, revenues would be enough necessary, especially since this was to meet ongoing O&M expenses. However, it the first time that Punjab was implementing was a challenge to convince villagers to shift a community-based demand-driven project to metered connections and pay for the volume that aimed to decentralize rural water supply of water they consumed. Despite vigorous and sanitation services to local governance Information, Education and Communication institutions across the state. Project (IEC) campaigns, villagers were just not willing functionaries had to work very hard to win the to pay their contributory share or to sign up support of the political leadership by creating for the program until the cost sharing rules awareness about the long-term benefits of were modified. In fact, the program began to decentralization. Commitment and ownership take off only a year and a half after the project by the senior bureaucracy were also essential, began, when the upper limits for community as the ways of working by engineers in the contributions were reduced from Rs.1,500 to Rs. state’s water supply department needed to be 800. Contributions were even lower for border transformed. Enormous efforts were needed to villages, those that were prone to floods and build capacity at all levels. water logging, and those with predominantly hilly terrain. For the schemes to be financially sustainable, at least 70 percent of households in an In addition, while the project called for the average-sized village - about 220 households active participation of beneficiaries, few - needed to opt for water connections. If these NGOs existed to support the consultation and implementation process. THE WORLD BANK IN INDIA 3 INNOVATIONS T o encourage households to opt for Communities reached consensus metered connections, a number of Once the entire village understood the innovative measures were adopted: advantage of subscribing to the scheme and the kind of commitment it required, a Gram Metering and Billing Panchayat Water and Sanitation Committee An innovative communication campaign was formed. The committees consisted of was undertaken people willing to lead the village in adopting Innovative means of communication were used metered connections and who would help run to build support among rural residents. This the system in a sustainable manner. They were included seminars and workshops, involving headed by the village ‘Sarpanch’ – the elected children via competitions, as well as conveying village head – and included representatives messages through school rallies, slogans, road of the weakest members of society, including shows, radio, TV and the print media. The women. Committees were responsible for mobile water testing kits, which provided quick collecting the contributory amount from the feedback on the quality of drinking water, were villagers and negotiated the hours of water extremely successful in initiating dialogue with supply, as 24/7 supply was not feasible in all communities about the need for safe drinking villages due to the non-availability of power water. Regular telephone calls to the village round the clock. head by the Executive Engineers and other All household connections were metered senior officers were also used to communicate Rules were simplified to encourage people to and obtain feedback. Pipes were laid to connect most households and individual meters were installed at each house 4 MINISTRY OF FINANCE Department of Economic Affairs THE WORLD BANK IN INDIA Punjab Rural Water Supply and Sanitation Project By January 2013, 200 out of the 840 villages covered under the project had opted for metered household connections, and 15 villages had 24/7 water supply. opt for household connections. Pipes were laid O&M costs in full. Volumetric charges covered to connect most households, and individual the salaries of the operator and cashier, meters were installed at each house. The electricity charges for pumping water, as well as Punjab government has agreed to finance the for minor repairs and maintenance. Committees installation of water meters in the first 100 were authorized to revise their water tariffs villages on a pilot basis and the project is going depending on their actual expenditures. to finance more based on the demand. Village committees are responsible Consumers pay as they use Village committees maintain the accounts, Meter readings were taken every month in a raise and collect bills, hold non-payers transparent manner by the operator (and the accountable, supervise and manage the pump cashier) in the presence of the consumer. The operator, ensure that electricity bills are paid metered connections not only helped reduce on time and, last but not least, sensitize the the amount of water used by households, but people on the need and importance of water also benefited the poor as they generally used conservation. less water than more prosperous households. By contrast, under the flat rate method, both 24/7 Water supply the prosperous and poor households paid the Round-the-clock provision of water was same amount regardless of the quantity of piloted in villages where all households had water they consumed. installed metered connections and opted for the scheme. Tariffs were fixed by the village O&M costs are met in full water committee. Water tariffs were devised by village water and sanitation committees to cover the system’s THE WORLD BANK IN INDIA 5 Complaint Redressal System Progress is reviewed on a day-to-day basis Since a large number of Punjab’s villages lie at the highest levels, i.e. by the Secretary to in remote areas, a unique complaint redressal the Government of Punjab’s Water Supply system was devised. In November 2009, a and Sanitation Department, enabling the Shikayat Nivaran Kendra was established administration to initiate remedial measures where rural consumers could call a 24/7 toll for common problems to avoid their recurrence free number or register their complaints online, in the future. track progress, and request services. Concurrent Audit To ensure impartiality, the work was outsourced Providing communities with funds in advance to an independent agency. Every official is to implement construction works posed a risk. now connected to the online system through Considering the short implementation period telephone, email, and SMS and can monitor for most of the contracts (6-9 months), several complaints directly. The time that should earlier projects had opted for a single audit normally be taken to address some typical after the scheme was completed. However, complaints is spelt out and, if a complaint is in many cases, it became difficult to resolve not rectified within this period, it is forwarded audit objections once the scheme had been to a senior officer. Complaints are not closed completed. until the customer is satisfied. It was therefore decided to conduct an audit each time funds were provided-before the Audits are conducted each time funds are provided second and third installment and again after completion. While this process was initially considered cumbersome since implementation could be delayed by a late audit, in practice audit reports were issued within 15-30 days of the Gram Panchayat’s request. The auditors deployed multiple teams to different areas to physically verify assets and provide photographic evidence, and audit reports were issued in a concise pre-agreed format. Since audits were linked with the release of funds, the panchayats’ books were regularly updated. The system has ensured that there are no delays in the release of funds, and hence no hurdle in implementation. 6 MINISTRY OF FINANCE Department of Economic Affairs THE WORLD BANK IN INDIA Punjab IMPACT Rural Water Supply and Sanitation Project Rise in metered connections THE ROAD AHEAD By January 2013, 200 out of the 840 villages Going forward, Punjab plans to provide 24/7 covered under the project had opted for water supply to all the 3,161 villages targeted metered household connections. This was under its ongoing Medium-Term Programme achieved by proactive village committees. with no financial support from the government. Wastage of water is expected to decline from Subsequently, it plans to extend the scheme 30 percent to 8 percent and electricity charges to all Punjab villages in a phased manner. A for pumping water by some 20 percent. new water policy is being drafted to promote metered water connections in the rural areas, 24/7 water supply in 15 villages ensure financial sustainability and, where possible, provide 24/7 water supply. By January 2013, fifteen villages had round- the-clock (24/7) metered water supply. With The Government of India has recommended 24/7 water supply, illegal connections become that other states replicate Punjab’s online redundant, the chances of water contamination complaint redressal system. Officials from are reduced, and households at the tail end of West Bengal and Andhra Pradesh have already the system get their fair share of water. visited Punjab to study the system and Bihar and Rajasthan have inquired about its working. Systems remain financially sustainable The Punjab government’s health, education About 90 percent of consumers are paying and electricity departments are also exploring their water bills regularly, while the others are the provision of a similar service to their being persuaded to do so. Some villages now customers. have sizable savings in their O&M accounts— varying from Rs. 35,000 to Rs. 1 million. Savings A new water policy is being drafted to promote metered water connections in the rural areas have been re-invested to extend distribution networks, procure standby pumps and diesel generators, or landscape water works. The new online complaint redressal system is reaching out to some 15 million people in over 15,000 habitations. It is helping check absenteeism or non-performance of staff in remote villages, making the management of water supply more transparent, accountable and citizen-friendly, and boosting people’s confidence in the system. THE WORLD BANK IN INDIA 7 Punjab Rural Water Supply and Sanitation Project Contributions D.S. Cheema Program Director Punjab Rural Water Supply and Sanitation Project Mohali, Punjab Srinivas Rao Podipireddy Design: www.digitatemedia.in Senior Water and Sanitation Specialist The World Bank New Delhi MINISTRY OF FINANCE THE WORLD BANK IN INDIA Department of Economic Affairs