Report No: ACS13637 Republic of Turkey Social Compact in Electricity Privatization in Southeastern Turkey Building dialogue and consensus between the citizens and the electricity company towards improved cost recovery and service June 2015 GSURR EUROPE AND CENTRAL ASIA Standard Disclaimer: This volume is a product of the staff of the International Bank for Reconstruction and Development/ The World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Copyright Statement: The material in this publication is copyrighted. 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A SOCIAL COMPACT PILOT IN SOUTHEASTERN TURKEY Building dialogue and consensus between the citizens and the electricity company towards improved cost recovery and service [Sidebars are great for calling out important points from your text or adding additional info for quick reference, such as a schedule. They are typically placed on the left, right, top or bottom of the page. But you can easily drag them to any position you prefer. When you’re ready to add your content, just click here and start typing.] Zeynep Darendeliler & Cansu Aydin Global Practice on Social, Urban, Rural & Resilience The World Bank June 2015 Acknowledgements The Social Compact Pilot was made possible by the continued interest of the Dicle Electricity Distribution Company in working with civil society and local stakeholders to tackle issues of non-payment, trying innovative participatory approaches, and collaborating with the World Bank during this process. The project was implemented by IDEMA, an entrepreneurship initiative working on innovative social development projects, under the guidance of Zeynep Darendeliler (TTL). Guler Altinsoy, Ali Ercan Ozgur and Dilara Gok at IDEMA worked tirelessly in designing and implementing this project, and adapting plans with creativity as circumstances required. This Social Compact Case Study note was written by Zeynep Darendeliler and Cansu Aydin. The team would like to thank all of those who have contributed to the thinking that led to this activity and all those provided formal and informal input. We are especially grateful to Sarah Keener, Nicolas Perrin, Sudeshna Banerjee, Sameer Shukla and Chris Trimble for reviewing and providing guidance on the pilot from the design stage to the finalization stage, and Ani Balabanyan, Michelle Rebosio, Sophia Georgieva, Daniel Ortega, Maria del Camino Hurtado and Ezgi Canpolat for their input and contributions. This pilot would not have been possible without the support and guidance of Kari Nyman, Elisabeth Huybens and Martin Raiser, and funding from the Eastern Europe and Central Asia Knowledge and Innovation Fund, and the Energy Sector Management Assistance Program (ESMAP). Most importantly, we would like to thank the citizens of Mardin and Sanliurfa who participated in the social compact activities to start building this dialogue. Contents Abstract................................................................................................................................................................. 1 Executive Summary............................................................................................................................................... 2 1. Introduction: The Delivery Challenge and the Social Compact Approach.................................................... 4 2. Contextual Conditions .................................................................................................................................. 6 3. Tracing the Implementation Process: Key Stages and Factors Affecting Outcomes .................................. 11 Identification of Pilot Communities ................................................................................................................ 12 Consumer Audit and Satisfaction Survey & Focus Group Discussions............................................................ 14 Creation of Stakeholder Committees ............................................................................................................. 18 Consensus Building & Stakeholder Committee Strategic Plan ....................................................................... 19 Starting Implementation of the Stakeholder Committee Strategic Plan: Consumer Outreach and Sensitization on Energy Efficiency .................................................................................................................. 20 4. Lessons from the Case Study ...................................................................................................................... 22 Annexes............................................................................................................................................................... 25 Abstract About 70 percent of electricity users in Southeastern Turkey are not used to paying for electricity, partially due to the protracted situation of conflict and lack of trust between citizens and the government in the region. Historic tension throughout the 1990s caused an inability for the government to invest in electricity infrastructure and has resulted in low service quality. A large portion of consumers did not pay for electricity use at all, since full electrification of these regions did not take place until the 1980s. This has also resulted in wasteful and non-sustainable patterns of electricity use behavior. The social compact pilot implemented in two provinces in this region, Mardin and Sanliurfa, set up stakeholder committees representing urban and rural communities to forge and sustain a dialogue between the consumers and the electricity company on increased electricity payment and improved service quality. The stakeholder committees came up with a joint Stakeholder Committee Strategic Plan to address payment, service quality and communication issues. Moving forward, the electricity company will institutionalize the Stakeholder Committee meetings, and start implementing portions of the Strategic Plan, starting with an energy efficiency educational campaign and improving its grievance redress mechanism. This is the beginning of a process to increase popular trust in and dialogue with formal institutions in a region marked by a protracted conflict and a deep distrust in the state and formal institutions. 1 Executive Summary About 70 percent of electricity consumers Against this backdrop, the Social Compact in Southeastern Turkey are not used to in Electricity Privatization in Southeastern paying for electricity. The reasons for Turkey was implemented as a pilot such high loss and non-payment rates in project in two provinces in Southeastern the region are multifold – political and Turkey, Mardin and Sanliurfa, from 2013 to historical, economical, behavioral and 2015. The social compact pilot set up stakeholder committees representing urban and technical. Politically and historically, the region rural communities to forge and sustain a has suffered from decades of armed conflict dialogue between the consumers and the since the 1970s. Historic tension throughout the electricity company on increased electricity 1990s caused an inability for the government to payment and improved service quality. The invest in electricity infrastructure and has stakeholder committees came up with a joint resulted in low service quality. This long period Stakeholder Committee Strategic Plan to address resulted in lack of monitoring and meter reading, payment, service quality and communication especially in rural areas. The threat of conflict issues. Moving forward, the electricity company kept electricity company personnel away from a will institutionalize the Stakeholder Committee large number of settlements, including in major meetings, and start implementing portions of cities. This resulted in the assumption of the Strategic Plan, starting with an energy widespread illegal use of electricity, and the efficiency educational campaign and improving government not investing in utility its grievance redress mechanism. This should be infrastructure. The electricity service is seen as only the beginning of a process to unreliable, with frequent power cuts and voltage increase popular trust in formal institutions in a fluctuations. While Turkey has grown region marked by a protracted conflict and a economically and reduced poverty inclusively in deep distrust in the state and formal institutions. the past decade, Southeastern and Eastern provinces are lagging in terms of monetary and The development challenge and the proposed non-monetary indicators. Average incomes are approach, the contextual conditions, the stages four times lower than the highest income of implementation and factors impacting regions in the country. The Dicle electricity outcomes are discussed in more detail in this distribution region lies in its entirety in the least case study. The team has found out that the developed part of the country. Behaviorally, due following factors were critical in determining to the perception that electricity is free over outcomes in this development intervention: many years, wasteful and non-sustainable Citizen engagement and accountability. patterns of electricity use have emerged. The private distribution company estimates that the During the Stakeholder Committee Meetings, current total consumption of electricity for the there were many moments when the dialogue region can be decreased by 40% if wasteful use seemed fragile with participants heatedly of electricity is prevented. restating pre-formed and ossified positions, depending on their backgrounds. Good mediation and facilitation enabled the dialogue 2 to move from an adversarial conversation to one parameters change in such a fragile and dynamic where different sides sought to understand the political and social context. Teams may be able concerns of one another. Participants to anticipate some of these, but adaptive commented that these were the first times they management and flexibility in changing the were listening to the messages of one another. design of activities is necessary to be able to The Stakeholder Committee Plan is not a continue to operate. solution to the region’s host of electricity Implementing partner. The implementing concerns, but reaching consensus on action areas and action items that require firm matters greatly in all projects, but even to a responsiveness and commitment from all sides greater extent in projects taking place in was a large feat for all involved. environments with lower trust and higher fragility. The implementing firm’s local network Buy-in. From the outset, the buy-in of the with local civil society organizations and electricity company was of critical importance. community leaders was an invaluable asset in At the end, the electricity company has taken up creating buy-in on the side of communities. One the torch to continue the stakeholder committee definite sustainable gain accomplished through meetings, at least in the foreseeable future, and the project is the familiarization of the electricity start implementing Strategic Plan with the company with various civil society actors and energy efficiency agenda, but there were ebbs networks in the region. and flows in the interest to implement the pilots. Looking ahead – factors for sustainability A number of factors influenced this, such as the regularity of communication, or buy-in at and replicability. At this juncture, the electricity company has adopted and intend to continue different levels of hierarchy inside the company. efforts under this social compact in the pilot Communication. Communication and communities. Whether this will be sustainable or information flow between the World Bank, the replicable in other communities in the region largely depends on the perceived value added by implementing firm and the electricity company the company. Given its current cost recovery rates, impacted design and implementation of the the company will not be able to invest in activities. Agreeing up front and explicitly on the infrastructure comprehensive and improve service project contact person and a set method of quality very noticeably in the short term. This communication, including mode, frequency and means that, while continuing the dialogue, in the format of communication, should help teams short term, the company needs to deliver in other maintain their relationships better and calibrate ways to communicate its good will to citizens, and everyone’s expectations from the start of the for citizens to respond positively by increasing project. payment rates. In short, the sustainability of the approach depends on the company performing Political and social context. Multiple and communicating on these action plan items, elections, the thaw in broader talks between the and the citizens’ behavioral change towards government and the Kurds on reconciliation, the payment. The ability of the social compact to civil war in Syria, the advent of ISIS, the broader engender trust and grow as a process will be heavily influenced by the ability of each party to messages of the electricity company, ongoing hold up their end of the accountability bargain electricity shortages all impacted the process beyond the dialogue. and outcomes. During implementation a lot of 3 1. Introduction: The Delivery Challenge and the Social Compact Approach Social Compact in Electricity Privatization in the Kurdish population living in the southeastern Southeastern Turkey was a pilot social region has not paid for utilities. For its part, the development project implemented in two government has not invested in utility provinces in Southeastern Turkey, Mardin and infrastructure both in urban areas for daily use Sanliurfa, from 2013 to 2015. A majority of and in rural areas for irrigation. The electricity electricity users in Southeastern Turkey and service is unreliable, with frequent power cuts these provinces were not used to paying for and voltage fluctuations. The prevailing electricity. The reasons for such high loss and perception among the population is that it is non-payment rates in the Southeastern region entitled to free electricity. Behaviorally, due to are multifold – political and historical, behavioral the perception that electricity is free over many and technical. Politically and historically, the years, wasteful and non-sustainable patterns of region has suffered from three decades of armed electricity use have emerged. conflict. This contributed to a situation where Box 1. Perspectives of Consumers and Service Providers Low-income man, rural: “Intermittent supply is widespread in villages. Several times a week the supply is interrupted for 3-4 hours. During periods of heavy wind, the interruptions are more frequent. During winter months there are more problems. This happens because the infrastructure is old. Some of the transformer polls fall down. Therefore the supply is intermittent but people are expected to pay regularly for an irregular supply.” A representative of the Association of Electrical Engineers: “It will take a concerted effort to change the habit of using illegal energy. The distribution companies should get support from local authorities, municipalities, public sector institutions, schools, and religious leaders. Regardless of political party affiliations, municipalities should play a major role. Even our specialized experts are shocked with the variety of methods people come up with to have unpaid electricity.” A social compact serves to build a relationship a result, resources to invest in the infrastructure between the service providers and the service are low, and there is vandalism of meters and users by aligning incentives. From the consumer aggression towards service provider staff. There perspective, the levels of service are low, and the are numerous advantages of social compact utility company is not responsive to needs and approach in electricity sector. By clearly improving infrastructure. From the service assigning responsibility and accountability for provider perspective, payment rates are low, as service quality and price, it engenders economic 1. Create a relationship between the users and efficiency. the service provider in the pilot areas to create The conditions in Southeastern Turkey outlined mutual trust and understanding of each other’s above and the recent privatization of the rights and duties by increasing accountability. electricity distribution system presented an 2. Work with the private company to build opportune time to change the payment and relationships with the communities through the service delivery dynamics in the region. Both the user associations in the pilot areas, and to service provider and the consumers could educate consumers to understand their benefit from changes, but the lack of responsibility to pay by also improving the communication and the current use for reliability and quality of the electricity services. electricity behavior needed to evolve. Realizing this, the distribution company launched a 3. Include creation of mechanisms to hold widespread communications campaign. The service provider responsive and accountable to communications campaign used the more consumers. traditional dissemination methods of bulletin 4. Generate knowledge on implementation for boards, radio spots, television advertisements the possibility of social compacts to be used and schools, through partnership with the during utility reform in other countries, Ministry of Education, as well as muhtars (village especially in fragile contexts of low trust and leaders), religious leaders and trade accountability. associations. The communication campaign aimed provide information and awareness at a Throughout the process, the stakeholder macro level. committees came up with a joint Stakeholder Committee Strategic Plan that to address The social compact approach fit under the payment, service quality and communication umbrella of the communication campaign, but aimed to take the communication one step issues. Moving forward, the electricity company will institutionalize the Stakeholder Committee further, make it a two-way channel, and create more understanding of the other sides’ concerns meetings, and start implementing portions of in each of the sides. In addition to one-way the Strategic Plan, starting with an energy provision of information, the social compact efficiency educational campaign and improving strived to build dialogue between the service its grievance redress mechanism. This should be provider and the communities it was seen as only the beginning of a process to implemented in. Through micro channels, the increase popular trust in formal institutions in a social compact tried to contribute to articulating region marked by a protracted conflict and a the needs and concerns of communities, the deep distrust in the state and formal institutions. The dialogue will hopefully continue. rights and responsibilities of the service provider and to build an accountable relationship This case study discusses the contextual factors, between the two sides. More specifically, the the design elements and the implementation project aimed to forge and sustain a dialogue details that affected the outcomes of the social between the electricity company and the compact pilot. It aims to provide insight to other communities, beyond the life of the project. development practitioners who will implement More specifically, the social compact pilot aimed similar social accountability approaches in to: similar settings. 5 2. Contextual Conditions In Turkey, the government has put in place a Diyarbakır, Sanlıurfa, Mardin, Batman, Siirt and series of reforms to improve the country’s Sırnak. The government set targets for the energy security and efficiency. The electricity private company to reduce loss and non- distribution privatization program, launched in payment rates to 59% by the end of 2014 and 2008, came to an end in March 2013. There were 49% by the end of 2015, with the government five main reasons for the privatization as subsidizing the company up to that rate of non- announced by the Privatization Administration: payment. These targets turned to be too To increase the efficiency and decrease the optimistic however. At the end of 2014, when costs, to provide security to the supply side of the electricity company was unable to meet the target of 59% and risked bankruptcy, the targets the electricity market and increase the quality of were revised to give the company additional the supply, to decrease the loss of electricity, to time to reach the targets and continue to renew the system and invest in its enlargement, subsidize the company during this time. The and lastly to reflect the advantages that come privatization agreement stipulates that the along with the competition to the customers. As company will decrease non-payment rates the program goes into effect by the end of 2013, significantly beyond the subsidy targets, since there will be quarterly adjustments of electricity the company is also expected to foot the bill for prices to cover the increases in costs incurred by the capital investments required to upgrade the energy companies in improving existing networks. The company was aware of infrastructure and services. Increasing electricity the poor quality of infrastructure and low tariffs and improving collection rates are payment rates at the time of privatization and prerequisites to the financial viability of the bid accordingly. Currently however the company electricity sector. The privatization of notes that they have been too optimistic distribution was adopted as the best available regarding increasing payment rates. While means to achieve a sustainable long-term cognizant of the government’s non-payment solution to satisfactory bill collection and the reduction targets at the time of privatization, the efficiency of distribution networks. company now views these as too ambitious to be sustained. The last leg of the privatization program was completed in 2013 and the transfer to the The reasons for such high loss and non-payment private sector went into effect in July 2013. The rates in the Southeastern region are multifold – companies then started work to look for ways at political and historical, economical, behavioral improving the collection rates to sustain and technical. Politically and historically, the financial viability. This last leg included the region has suffered from decades of armed Southeastern “Dicle” region, which is the region conflict since the 1970s. As the conflict escalated with the highest loss and non-payment rates, at from the mid-1980s to 1999, government around 70% compared to the national average of security forces were granted exceptional powers 11%. The Dicle network covers over 1 million under a state of emergency declared in thirteen subscribers in the predominantly Kurdish provinces. Martial law was imposed and civil, Southeastern region, living in the provinces of cultural and political rights for the largely Kurdish population of the region were curtailed. Internal Economically, while Turkey has grown displacement was widespread as a result of economically and reduced poverty inclusively in fighting and the evacuation of villages during the past decade, Southeastern and Eastern counter-insurgency operations. Some 4,000 provinces are lagging in terms of monetary and towns and villages in rural areas were non-monetary indicators. Average incomes are depopulated, with 2 – 3 million internally four times lower than the highest income displaced. 1 The state of emergency status only regions in the country. Average annual income ended in the early 2000s. The long period of for Istanbul is 35,045 TL compared to 17,346 TL martial law resulted in lack of monitoring and in Southeastern Anatolia2, and the ratio of poor meter reading, especially in rural areas. The is 5.2% of the population for Istanbul and 27.5% threat of conflict kept electricity company for the Southeast.3 According to an aggregate personnel away from a large number of index across demographics, education, health, settlements, including in major cities. This employment, competitive and fiscal capacity, resulted in the assumption of widespread illegal access to services and quality of life, these use of electricity, and the government not regions exhibit comparative deprivation as well. investing in utility infrastructure. The electricity The dark circle in Figure 1 below marks the Dicle service is unreliable, with frequent power cuts electricity distribution region. It lies in its and voltage fluctuations. entirety in the least developed category. Figure 1. Socio-Economic Development Index of Turkish Regions & Location of the Dicle Region DICLE REGION Darker colors indicate a lower aggregate score for monetary and non-monetary development indicators; therefore, a lower incidence of development.4 1 2 Kemal Kirisçi, Turkey, in Internally Displaced People: Ministry of Development. 2013. Tenth A Global Survey (Janie Hampton ed., 1998). For Development Plan of Turkey: 2014-2018. Ministry of displacement figures see Grand National Assembly Development, Ankara, Turkey, p 142. 3 of Turkey, Report of the Committee of the National Risk of poverty calculated using a threshold of 60% Assembly to Inquire the Problems of the Citizens, of median equalized income, SILC 2012. 4 Who Migrated as a Result of Evacuations in Eastern Ministry of Development. 2013. National Strategy and Southeastern Anatolia, and To Determine for Regional Development: 2014-2023. Draft. Solutions, Commission Report No. 10/25 (9 Feb. Ministry of Development, Ankara, Turkey, p 131. 1997). 7 Behaviorally, due to the perception that wells and connected illicit electricity electricity is free over many years, wasteful and infrastructure are high. According to the non-sustainable patterns of electricity use have electricity distribution company, 95 percent of emerged. The private distribution company farmers in the Dicle region use electricity for estimates that the current total consumption of which they do not pay. 49 percent of the electricity for the region can be decreased by population works in agriculture, making it the 40% if wasteful use of electricity is prevented. A main source of income in the region. The scope survey conducted in 2011 on electricity usage of the irrigation context is described in more habits in Diyarbakir shows that majority of detail in Box 2. For local merchants and shops in people use electricity for heating of dwellings in urban centers, there is anecdotal evidence of the winter. In rural areas, electricity is used for over-use of electricity as well. The distribution water pumps for irrigation and there is wide use company is of the opinion that such behavior of over-irrigation, wasting both water and causes substantial over-use of electricity and electricity. The number of unlicensed irrigation waste of economic resources. Box 2. Electricity Use in Irrigation Water Pumps Concerns regarding electricity use in irrigation are widespread in the Southeast of Turkey. The electricity distribution company states that about 95% of farmers do not pay for electricity, with an estimated 4 billion Kwh of electricity / year consumed at 45,000 wells. Rural respondents in the assessment stated that electricity for irrigation costs about 30 to 40% of their gross income from agriculture and makes farming almost prohibitive if they need to pay for the electricity. A farmer in Sanliurfa said: “I drilled my own well to irrigate 300 decares of cotton fields. After paying for seed, fertilizer, pesticide, and transportation, I received 60,000 TL for 120 tons of cotton. My electricity bill was 32,000 TL. Once I paid the laborers, I had nothing left.” The problem seems almost intractable with many inter-connected issues: There are crop subsidies for cotton farming in the region and a significant amount of the light industry depends in cotton as input. Cotton is a water intensive crop. Across the region, farmers note that they have had to dig deeper and deeper wells at 200, 300, 400 meters to access the ground water over the years. This creates environmental degradation and increases the electricity costs for the farmers. Ability to pay is an issue, but there are additional factors cited by respondents on why farmers should not pay for electricity for irrigation. 1) Part of the region benefits from the largest irrigation scheme in Turkey, Guneydogi Anadolu Projesi (GAP), under which the government invested in drip irrigation infrastructure on farmers’ lands with water coming from the largest hydro reservoirs in Turkey. These farmers pay for the water by a fixed rate system based on irrigated land area and type of crop. They can produce the same crops at much lower prices, compared to the cost of farming with electricity bills. 2) The illegal users of electricity for irrigation have “invested” a significant amount to set up the electricity system on their plot. A farmer from Bitlis explained: “I built my entire system. I bought the transformer, all the wires to link to the main system. I paid for the labor to install them. However now they also charge us for electricity.” In response to the demands from farmers, the electricity distribution company in the Southeastern region has proposed a fixed rate pricing system for electricity in mid-2014, similar to the water pricing. Farmers can choose from plans to pay a fixed price based on the capacity of the transformer or the irrigated land area or the number of irrigation wells. By the end of 2014 however, the rate of farmers signing up were less than 5%. This is largely due to a distrust among the farmers in the region; they hesitate to officially register their transformers or wells to benefit from the campaign, because they fear that the company may increase prices the next year. Additionally, there were moderate risks to the whether consumers or local authorities had paid project identified at the design stage and some their bills. Secondly, the region borders Syria and of these indeed impact the implementation. The Iraq. Security in the region declined over the project implementation period coincided with a implementation period, at times quite acutely, period containing three election cycles in Turkey due to the conflict in Syria and the advent of ISIS – local elections, presidential elections and in Syria and Iraq. Additionally, some electricity upcoming parliamentary elections. Electricity, as infrastructure failures and electricity outages with many other issues, is a politically and during this time, created significant tension, the socially charged topic in the Southeast. Due to height of which resulted in vandalism and arson the regions’ significant hydropower reserves, of the electricity company offices and a 3-day there is a prevalent discourse among road block by farmers, only to be resolved after respondents in these regions that the benefits the intervention of the current Prime Minister. derived from the region’s resources should be These caused delays in implementation, the shared in the region in the form of free or security need to hold some stakeholder discounted electricity. This discourse stems also meetings outside the region, in Ankara, and from a sense of injustice that the regions’ adjustments in activities. resources are used to support the needs of the All of these contextual factors are summed up in industrial and economic growth in the Western Figure 2 below, through using the analytical parts of the country, and that the government framework for social accountability discussed in always under-invests in the Southeast. The the World Bank’s Opening the Black Box: electricity company and local opinion leaders Contextual Drivers of Social Accountability hesitated to hold public discussions on these Effectiveness - Social Accountability Flagship issues at certain times for fear of the discussion Report Overview. turning to unrelated political or social grievances, or turning physical. There were a few reported instances of political pressure for high quality and uninterrupted electricity service provision before elections as well, irrespective of 9 Figure 2. Contextual Factors behind the Pilot – An Analytical Framework Lens Five Constitutive Elements of Social Accountability Citizen Action Awareness and salience among citizens of electricity privatization are very high; this directly affects their lives and at times livelihoods. Citizens feel an intrinsic motivation for issues to be resolved because they believe it is inherently unfair for them to receive such low quality electricity service vis a vis the price. Citizens overall do not believe in the efficacy of their actions; other than outright protesting, the citizens do not believe that individual or collective actions will make a difference. Capacity for collective action is lacking leadership and strategy. Costs of inaction are high. Service The service provider is painfully aware of the issues. Ability to resolve the issue is somewhat Provider Action limited due to broader political context, electricity pricing set by regulator and the quality of existing electricity infrastructure, but the company is able to take action on dialogue with citizens, meeting some demands through different payment campaigns and making investments in the electricity infrastructure in the medium term. Official attitude towards engaging with civil society demands is very positive; the company makes public statements about the need to engage, even though the actors they naturally engage with are limited. Incentive and costs related to inaction are extremely high because at the current collection rates, the company risks bankruptcy in the near future. Information The company is striving to improve accessibility to information for citizens through communication and public relations campaigns, but accessibility is still somewhat limited due to the following reasons: The ad campaigns focus on timely payment and wasteful use, while the citizens want to access more information on bill composition, metering, rules and regulations, timing and duration of electricity cuts or payment options. Communication is one way; citizens voice difficulty in reaching the company for answers. Due to limited accessibility, consistency of information among citizens is weak; rumors and misconceptions abound. Trust in information is very low due to overall political and social context. Citizen-Service A good and accessible existing interface is not present. The only interface is the grievance Provider redress mechanism of the company, which citizens find inadequate and hard to access. Interface Effective interlocutors to mediate between the citizens and the service provider do not exist in a meaningful manner; civil society and local leaders are quite strongly anti-electricity company. Civic Mobilizers or media exist to make the issues public, but they do not have a strategy and often Mobilization problematize the issues rather than seeking or producing solutions. Mobilizers such a local civil society have credibility with citizens, but they do not have strong leadership to mobilize a strategized campaign. Macro Contextual Factors for Social Accountability Effectiveness Political Society State actors often react to citizen engagement defensively, with certain resistance. Appointed officials are less responsive to citizen demands; elected officials are more responsive but this at times leads to populist public rejection of the electricity company and its policies. Oversight over service provider relations with citizens is State-Society The social contract is strained with palpable lack of trust. Since past decisions affecting citizens Relations have been made top-down by central leaders, citizens mostly believe that the problems related to electricity should also be (and could only be) solved by authorities high in the hierarchy. Civil Society There is some space for citizen voice and some capacity in civil society, which widely perceived by the communities as legitimate. Most civil society is highly politicized due to the region’s history of socio-economic inequality and exclusion; they do not have the commitment to work together with the electricity company (which can create loss of legitimacy). Source: For a detailed discussion of this analytical framework for the effectiveness of social accountability interventions, see World Bank. 2014. Opening the Black Box: Contextual Drivers of Social Accountability Effectiveness - Social Accountability Flagship Report Overview. The World Bank, Washington, D.C. 10 3. Tracing the Implementation Process: Key Stages and Factors Affecting Outcomes At the design stage, the World Bank team and the approach to be used for the pilot the electricity company discussed and intervention and the objective to be achieved. articulated the broad development challenge to The cycle of activities identified at the design be addressed, the contextual factors that shape stage to implement the social compact can be the challenge and will affect the intervention, seen in Figure 3 below. Figure 3. Stages of the Implementation Process 2. Consumer Audit and 1. Identification of Pilot 3. Creation of Satisfaction Survey & Communities Stakeholder Committees Focus Group Discussions 4. Consensus Building & 5. Implementation of the Development of Stakeholder Committee Stakeholder Committee Strategic Plan Strategic Action Plan A firm with experience in community side and cause however. Since the objective of mobilization and mediation, and familiarity with the activities was building dialogue and Southeastern Turkey to implement these mediating between the electricity company and activities. Initial discussions had focused on citizens, the team chose not to work directly with selecting a civil society organization based in the such an organization. Instead, these Southeastern region of Turkey as the stakeholders were invited to discussions to implementing partner, given the distrust of the facilitate community participation in the local population to a long history of stakeholder committees. The firm selected at helicoptered-in development programs. Later the end was based in Istanbul, but had strong mapping showed that most civil society networks with civil society actors in the region as organizations working on these issues in the a result of past project management experience. region were heavily invested in advocacy for one Identification of Pilot Communities The Dicle region is a large geography of 6 weight was given to being responsive to the provinces (Diyarbakır, Mardin, Siirt, Sanlıurfa, immediate and most urgent needs of the Batman and Sırnak) covering 1 million electricity electricity company. users. Choosing a number of communities to In addition, Sanliurfa and Mardin are the two pilot the approach was necessary given the provinces in the region with the highest scope and budget of the activity. Initially, electricity usage for irrigation, and the electricity Diyarbakir was discussed as a possibility, owing company noted that they found it especially to its status as the political and cultural center of difficult to reach rural communities through the region. However, the electricity company their regular macro advertisement campaigns. noted that they had a better understanding of Targeted outreach to rural communities would loss and non-payment in the urban center of be possible under the social compact. The Diyarbakir and a strategy for relationships with irrigation issue however is an almost intractable residents that would succeed in decreasing non- development challenge at the intersection of payment. In contrast, the company stated that many sectors involving agricultural subsidies, the need for piloting such a consensus-building irrigation infrastructure, environmental approach was far greater in both urban and rural degradation and local industry. In this sense, communities in Mardin and Sanliurfa. In some choosing rural communities with irrigation issues rural communities connected to Mardin, such as as pilots was too ambitious for the scope of the Kiziltepe, the non-payment rates, at 95% were project. Further down the line, this selection higher even than the regional average. Since this created a raised sense of expectation for was likely a result of some degree of joint solutions from both the electricity company and community resistance to payment, the the local stakeholders, while the scope of the electricity company suggested that these should challenge was much larger than electricity usage be the target communities to pilot building a and could not be adequately tackled with the relationship between the company and the social compact intervention. citizens. At the end, four pilot communities were chosen For many social accountability interventions, in each of these provinces, including rural, low- available guidance suggests that “early wins” are income urban, middle-income urban and important in creating buy-in from both the commercial. The names of urban neighborhoods service provider and the service users in the and rural villages in Mardin and Sanliurfa that approach’s ability to provide a solution to service were chosen for implementation can be seen in delivery problems. Retrospectively, the Annex 1. Figure 4 schematically describes how identification of pilot communities with this the social compact was designed and organized, degree of challenge may not have been the best and how a representative and participatory choice for convincing the electricity company dialogue was envisaged place between the pilot and the local stakeholders of the effectiveness of community members and the electricity the social compact approach. In this case, more company. 12 Figure 4. Identification of Pilot Communities in Mardin and Sanliurfa & Design for Stakeholder Interaction Analysis of Current Situation and Perception: Customer Satisfaction Survey and Focus Group Discussion Findings Rural Pilot Stakeholder Community Committee Community Mobilizers - Local Civil Society Information Electricity Consumers Exchange Mardin and Sanliurfa Electricity Company Urban Low- Stakeholder Income Pilot Committee Community Participatory Action Urban Middle- Stakeholder Income Pilot Committee Community Interactive Dialogue Commercial Stakeholder Pilot Committee Community Service Users Facilitators User-Provider Interface Service Provider Stakeholder Committee Strategic Plan Incentives and measures for decreased non-payment and illegal use & improved service quality Consumer Audit and Satisfaction Survey & Focus Group Discussions The objective of conducting the survey and focus between urban and rural areas than expected. group discussions was to validate assumptions Satisfaction with different aspects of service about contextual factors together with the provision, such as electricity quality, billing and stakeholders in the pilot communities, and try to electricity company personnel, in urban areas understand whether there are stark differences ranged from 33% to 58%. In rural areas, (between existing assumptions and reality, or satisfaction was low for all areas of service between pilot communities) that would provision, ranging from 5% to 22%. Reasons necessitate adjustments in the approach. The cited by respondents for non-payment also questions aimed to understand consumers’ varied between urban and rural respondents. Ability to pay was a prominent concern for perception on electricity privatization, their almost all of rural residents, and other factors on willingness to pay and possible trade-offs service quality or accessibility were also cited. between willingness to pay and improved Among urban respondents, while ability to pay service. Additional information collected was cited by more than half of the residents as a included demographical details language spoken reason for non-payment, about a quarter of in the household, as a proxy for ethnicity. residents also cited behavioral reasons for non- In total, 450 households and 90 companies were payment, such as other customers not paying or surveyed. Break out numbers for this field electricity being a basic service that they should research according to pilot community can be not be required to pay for. found in Annex 1. Special attention was paid to The conflict in the region, as discussed above, gender and language in selection of surveyors, originally stems from an ethnic division between since it is often difficult for male surveyors to the Kurdish citizens of Turkey and the question female respondents, and the sample of Government of Turkey, with grievances respondents included Arabic, Kurdish and including the use of the Kurdish language in Turkish speakers. public areas and public offices. In terms of responses in the survey regarding reasons for The Focus Group Discussions were conducted non-payment or response in the group after analysis of the surveys, and used to access discussions regarding trust towards the more information about user behaviors and electricity company, there were no marked expectations regarding their habits and differences between the Turkish, Arabic and consumption, their rights and responsibilities Kurdish speaking pilot communities however. All concerning the electricity services, as well as respondents shared a sense of having lived their approach to the social compact. Ten focus through conflict and a resentment against what group discussions were conducted with 105 they perceived as neglect and lack of respondents. infrastructure investment in the region resulting The findings from the field work confirmed the from lack of security and resulting in lower working assumptions of the social compact, and development indices for the region compared to revealed an even more marked difference other parts of Turkey. 14 Box 3. Selected Findings from Quantitative Research in Pilot Communities Figure 5. Satisfaction with Service Provision – Urban Very satisfied Somewhat satisfied Not satisfied SERVICE PROVIDER EMPLOYEE CONDUCT 20% 32% 48% ABSENCE OF VOLTAGE FLUCTUATION 19% 14% 67% ABSENCE OF ELECTRICITY CUTS 15% 18% 67% SERVICE QUALITY 15% 26% 59% PRICES 13% 18% 69% BILL PAYMENT METHODS 23% 35% 42% ELECTRICITY INFRASTRUCTURE 16% 33% 51% Figure 6. Satisfaction with Service Provision – Rural Very satisfied Somewhat satisfied Not satisfied SERVICE PROVIDER EMPLOYEE CONDUCT 83% ABSENCE OF VOLTAGE FLUCTUATION 92% ABSENCE OF ELECTRICITY CUTS 93% SERVICE QUALITY 93% PRICES 95% BILL PAYMENT METHODS 78% ELECTRICITY INFRASTRUCTURE 93% Figure 7. Reasons for Non-Payment and Illegal Connections – Urban "The electricity company does not need the money" 13% "Legal connections do not reach my house" 18% "Everybody does it" 21% "Electricity is a basic right, I shouldn't have to pay" 21% "The service quality is not worth paying for" 26% "I don't have enough money" 55% Figure 8. Reasons for Non-Payment and Illegal Connections – Rural "The electricity company does not need the money" 75% "Legal connections do not reach my house" 36% "Everybody does it" 9% "Electricity is a basic right, I shouldn't have to pay" 17% "The service quality is not worth paying for" 64% "I don't have enough money" 92% Discussions in focus groups provided the broader installment plan payment option for past debt story for these findings. There was repeated accumulated, during the timeframe of the social emphasis that the timing of bill collection affects compact. By the end of 2014 however, the rate the ability of poor households to pay. of consumer signing up to these campaigns or Households whose livelihoods do not depend on payment plans were in the single digit monthly salaries, but instead on daily wages or percentages. Discussions down the line during other sporadic sources of income, reported stakeholder committee meetings provided the more difficulty in paying their electricity bills feedback that this is largely due to a distrust regularly and on time. Job informality is high in towards the company, coupled with the belief the region, therefore the urban poor often do that the company may not last long in the region. not have salaried incomes. This created a higher If farmers register their currently unregistered risk for late payment fees and disconnections, wells for fixed rate pricing of if households have and incentives for establishing illegal meters installed for fixed rate pricing up to a connections. Rural households, who similarly do certain level of consumption, they fear that that not have a steady stream of income along the the company may increase prices the next year, year, noted that they were sometimes unable to with their consumption now monitored more settle their bills prior to the harvest season, even accurately or simply monitored. though they may be able to afford the bills after During this field research stage, it also became the harvest. There were high seasonal apparent that the electricity company should fluctuations in their bills as well. In December, train its personnel more extensively on customer January and February, urban respondents stated relations and interaction, and establish a more that their bills are higher due to some use of effective grievance redress and customer electrical stoves as supplementary heating. In relations management mechanism accessible to the summer, bills peaked for rural households the public. Consumers’ direct interaction and that use electricity for irrigation. These findings relationship with the electricity distribution suggested that the electricity company should company affects their perceptions and run campaigns and payment plans with flexible acceptance of electricity privatization reform as payment options. This was found to be a good a whole. Yet, respondents overwhelmingly solution not just to increase payment rates, but thought that the electricity company did not also present a quick measure of good will to respond to their grievances in a timely or strenghten relationships with the communities. effective manner. Consumers can reach most In response to these findings and broader companies by phone, in person or online. A feedback from other stakeholders in the region, majority of respondents found it hard to reach the electricity distribution company proposed the electricity company by phone, mostly due to some flexible fixed pricing systems for electricity, wait times or busy lines, and hard to resolve one fixed lower rate for irrigation pricing, one issues conclusively once they talked to a fixed rate for household pricing, and an representative. “Grievances are not heard by the private companies. They have telephone lines but these are busy. When the system is shut off we cannot reach anyone to come for repairs. Once we all got so desperate that we reached the house of the deputy director of the company; they came at 11 pm to start the repairs.” During this initial analysis and validation of the governor, or the president of the electricity contextual conditions, community mobilizers distribution company. Turkish society as a were identified to organize the selection and whole, and the region in particular are rather participation of community members in the hierarchical. Given this, it is not surprising that stakeholder committees. Elected village or the respondents believed that solutions can only neighborhood leaders, such as muhtars, or city be reached through a top-down approach. The team at this stage discussed how the bottom-up councils were used to identify men, women and social compact approach can be squared with youth to be selected as community mobilizers. this background. While inviting mayors or Furthermore, other local level actors such as governors to a launch of the social compact religious leaders, civil society organizations, activities, or to the stakeholder committee Multi-Purpose Community Centers (ÇATOMs), meetings was a possibility, the downside would and other local and regional organizations, were be that, due to the hierarchy, when mayors or informed of and invited to contribute to the governors are present, such discussions often process of selection of participants to the remain abstract, formal and political, with the stakeholder committees. remaining stakeholders not speaking and brainstorming freely on needs, priorities and Lastly, it is worth noting that when surveyed on solutions. how or by whom the electricity issues can be resolved, most respondents identified those in very high leadership positions, like the mayor, Box 4. Efforts to Align Macro Communication Campaign Messages with Social Compact Messages At the design stage, it was envisioned to align the messages sent by the electricity company to its customers in its already existing macro communication campaign with messages that would resonate with the findings of the contextual analysis and the underlying reciprocal responsibility and benefit hypothesis of the social compact. These efforts did not bear fruit however. The reason for this was multi-fold: 1) The communications campaign was designed based on new payment plans or campaigns, and developed as these came along. There was no multi-year strategy that reinforced and built on certain messages. 2) The main message was on the need for payment, with emphasis that electricity was now run by a private company that would need to make ends meet and could not tolerate non-payment at a loss like the previous state-owned company. This did not change the discourse from a zero-sum game to a view that the consumers would also benefit with visible improvement in service quality. In addition, given the broader political discourse in the region regarding companies in the West of Turkey benefitting from the natural resources in the region, such as large hydropower generation, filed research findings would not have counselled emphasizing the private nature of the company. 3) Lastly, while the public relations campaign used local opinion leaders, such as imams to deliver messages such as “theft is a sin,” these were usually one off meetings or message deliveries, as opposed to continuous dialogue with civil society stakeholders who could have contributed to outreach to communities. In short, while using the broader communications strategy as a consensus building tool was envisioned at the design stage, there was not enough buy-in from the electricity company during implementation. Creation of Stakeholder Committees Community leaders and community members rural communities, of low-income urban were selected to act as intermediaries between communities etc. the communities and the electricity company, In the second half of 2014 however, there was a and serve in the stakeholder committees. The worsening of security in the region due to the stakeholder committees included different conflict in Syria and the advent of ISIS in Syria and segments of the local population, with particular Iraq. The in-flow of refugees was combined with attention to the civic context in the region. For pre-existing sectarian and ethnic tensions in the instance for the rural communities, the region. Additionally, some electricity stakeholder committees were made of muhtars, infrastructure failures and electricity outages residents, representatives from District during this time, created significant tension, the Directorate for Agriculture, Chamber of height of which resulted in vandalism and arson Agriculture, Irrigation Union and the electricity of the electricity company offices. At this stage company. the electricity company did not want to hold One of the challenges in thinking through how to further stakeholder discussions in the region, for organize stakeholder committees from the pilot fear that this will only contribute to raising communities is balancing already existing tension rather than building a dialogue. A public participatory mechanisms and leaders with the meeting they held for another reason in another need to include those who are not usually community resulted in large numbers of included in such systems. Already existing uninvited citizens showing up in protest, making mechanisms of participation and accountability it impossible to proceed with the meeting. The at the local levels, such as the elected muhtars, firm implementing the social compact also felt present an opportunity to easily reach out to the that holding further meetings in the region at community and legitimately represent the that time would risk security concerns and only community in meetings. On the flip side, given exacerbate tension. Waiting these tensions out the hierarchical organization of society in the and delaying the meetings was discussed. This region, elected leaders tend to be those whose was not deemed to be a good solution both in voice can already be heard. The previous field the interest of time and in the interest of not research was used as an opportunity to assess curtailing a series of meetings that had already the stakeholder relationships in the begun. Interrupting the dialogue at this time communities. when the context became more difficult would send wrong signals of abandonment of the After separate initial meetings with the eight dialogue to local stakeholders. stakeholder committees, the next planned step was to institutionalize the meetings by In response, a smaller representation from the establishing set places and times for the existing stakeholder committees was chosen to committees to meet and for the committees to hold joint stakeholder committee meetings in have discussions on needs and priorities that Ankara, the capital of Turkey. This switch in were specific to their groups as representative of location was not optimal, as it took the discussion away from the communities to the 18 capital, which in the region is perceived as a for discussion with invitation from and entity venue of top down decision-making that does other than the electricity company was an not take into account the views of the region. important element for their ability to participate During meetings held in Ankara however, it at that time, since them accepting an invitation became apparent that having these away from directly from the electricity company and going the volatile fragility of the local context was an to a meeting at a local venue would have been asset to the discussions, as was the World Bank perceived as a sign of betrayal by their hosting the conversation as a mediator. communities. Participants in the stakeholder committees openly stated that coming to a separate location Consensus Building & Stakeholder Committee Strategic Plan Consensus building for the formulation of a joint in Turkey is from hydropower across the Stakeholder Committee Strategic Plan was the country). The electricity outages and voltage most crucial part of the social compact pilot in fluctuations are punitive measures by the order to develop a dialogue between electricity company for non-payment. stakeholders on rights and responsibilities of Representatives also thought that they were both sides, rather than the underlying mutually made to pay higher prices for electricity in the opposing stance with a view of the situation as a region, whereas there is a national tariff in place zero sum game. in Turkey. Correcting factual misconceptions was a visibly effective move towards a common The stakeholder committee meetings were ground understanding of issues. comprised of three stages focused on awareness raising and factual clarifications, mediation and In the second stage of meetings, participants conflict resolution, and developing a common participated in interactive exercises on conflict plan. Findings from the customer satisfaction resolution and problem solving. The aim was to survey and the focus group discussions were familiarize the participants with the main shared with all stakeholders for discussion and concepts, methods and stages of reconciliation, validation. Additionally, the electricity company and shift the understanding of who the presented the technical aspects of electricity responsible parties are in problem solving – from infrastructure and current situation on non- “you” to “all of us.” In this section, none of the payment and loss of electricity in general in Dicle discussions focused on electricity issues, but on region, with emphasis on the constraints the issues where all sides share in assumptions or company has in improving service delivery given grievances. Having this exercise proved very the current non-payment and cost recovery useful in building rapport. levels. In the last stage of meetings, participants were invited to join a workshop to exchange ideas There was a broad set of factual misconceptions regarding the problems around electricity use voiced by consumers: Most of Turkey’s and service provision and jointly propose electricity is generated by hydropower in the solutions to the identified challenges. These region (while only 20% of electricity generation 19 sessions were designed to give the participants and discussion and finalized by consensus. A an opportunity to discuss the problems in detail simplified version of the Strategic Plan can be and collaborate in identifying solutions in a found in Annex 2. Agreement was reached that moderated setting. Following the discussions, the electricity company, together with relevant group moderators discussed the different stakeholders, would start implementing portions groups’ reports and summarized findings. of the plan in collaboration with the Stakeholder Committees. A plan was also discussed to meet Based on these discussions, a comprehensive periodically to review progress on different Stakeholder Committee Strategic Plan was items of the Plan. drafted, opened up for committee comments Box 5. Main Action Areas under the Stakeholder Committee Strategic Plan - Changing the perception of non-payment and illegal use as socially undesirable behavior - Increasing mutual trust between local communities and the electricity company - Supporting renewable and alternative sources of energy, and increase energy efficiency - Reducing electricity outages and voltage fluctuations, including provision of notice by the electricity company to consumers - Registering and formalizing electricity users, including having an up to date database for communication and outreach - Improving qualifications of electricity company personnel and effectiveness of grievance redress mechanisms - Increased transparency and accountability in pricing and billing, and introducing flexible methods of electricity payment Furthermore, through discussions, it became consumption and waste prevention in the short apparent that sustained long-term effort would term at low cost. Stakeholders agreed that initial be necessary to address non-payment behavior. campaigns and trainings should be targeted to Waste of energy and efficient energy use were women, who have most control over household identified as more plausible initial collaboration electricity consumption, and towards farmers, areas, with immediate intervention measures who use electricity in pumped irrigation. that can be taken on efficient electricity Starting Implementation of the Stakeholder Committee Strategic Plan: Consumer Outreach and Sensitization on Energy Efficiency Consumer outreach and sensitization on energy the electricity company, the implementing firm, efficiency was one of the agreed areas for action the Southeastern Anatolia Program (GAP) under the Stakeholder Committee Strategic Regional Development Administration and the Plan. Accordingly, a steering committee to Corporate Social Responsibility Association in design such a project was formed, consisting of Turkey. The GAP Regional Development 20 Administration is a civil society actor that has cohort of 20 trainers from the pilot communities, strong presence in the region and conducts with a comprehensive knowledge on energy development projects with local stakeholders. efficiency, so that they are able to conduct Their inclusion in the steering committee and the awareness raising activities and trainings at the later management of the project is an important local level. 200 training sessions will be step for local community buy-in. The GAP organized in the pilot communities in Mardin Administration understands local stakeholder and Sanlıurfa for women, children and farmers, needs and attitudes better due to many years of to be delivered by the cohort of trainers. The working in the region, and is better positioned to target audience for the initial trainings is 1000 women, 500 children and 500 farmers on communicate to local stakeholders the efficient use of energy. The electricity company messages of the electricity company compared is taking on this project, further actions to be to conventional advertisement or public implemented under the Stakeholder Committee relations channels. Plan and further periodic meetings of the The resulting project aims to address the stakeholder committees with its own financial following issues raised by the Stakeholder and human resources. Committee Plan: The energy efficiency awareness raising and 1. Change the perception of illicit training campaign is low hanging fruit compared electricity use as societally unacceptable to some of the other areas of action in the behaviour that has substantial social, Stakeholder Committee Plan. Yet, small wins and environmental and economic costs. demonstrable action are important in building a relationship. As the next step, the electricity 2. Improve communication and mutual company is committed to training its personnel trust between the local communities for improved perception of consumers and and the electricity company. devoting more resources to making its grievance redress mechanism system more effective. 3. Ensuring effective and efficient electricity consumption and waste In terms of service quality, significant amount of prevention through behavioural investments need to be made to improve the changes. underlying infrastructure of the region. At the outset of the social compact, the Bank team had Managed jointly by the electricity company and expected that some quick and localized the GAP Administration, first training and improvements to service quality could be awareness raising materials will be developed, possible to have a demonstrative effect in pilot specifically targeted to women audiences for communities, and in exchange for community household electricity consumption, children and commitment to improve payment rates. In youth audiences again for household discussions down the line, it became apparent consumption and farmer audiences for that this was not technically feasible during this irrigation. These will be available in Turkish, time period and for such specific localities. Arabic and Kurdish, and will be sensitive to local views on faith, ethics, the economy and the environment. With these materials, a “training of trainers” will be conducted to establish a 21 4. Lessons from the Case Study Citizen engagement and accountability. 1) Implementation arrangements were The social compact pilot was not intended to discussed during the design stage, including the solve the non-payment and service quality human and financial resources that would be challenges in Southeastern Turkey overnight. It needed from the electricity company, the steps was meant to try an innovative approach in pilot they would need to take, and the contact communities to see if stakeholder committees persons that would be responsible. During could build a dialogue from an antagonistic and implementation however, there were moments broken relationship, and if this dialogue could be when the company felt more contribution and used to take positive actions towards addressing buy-in was needed from their side that they these challenges. During the Stakeholder initially bargained for, suggesting that initial Committee Meetings, there were many communication and discussions could have been moments when the dialogue seemed fragile with clearer. Development practitioners should pay participants heatedly restating pre-formed and great attention to reaching a very clear ossified positions, depending on their understanding of roles and responsibilities for all backgrounds. Good mediation and facilitation stakeholders. enabled the dialogue to move from an 2) Hierarchy matters. A higher level engagement adversarial conversation to one where different between the World Bank and the management sides sought to understand the concerns of one of the electricity company up front and in public another. Participants commented that these could have made project implementation easier. were the first times they were listening to the A public commitment would provide incentive to messages of one another. The Stakeholder work more proactively. A higher level signal in Committee Plan is not a magic bullet, but the electricity company may have prevented the reaching consensus on action areas and action necessity to convince persons on the ground one items that require responsiveness and at a time. commitment from all sides was a large feat for all involved. Communication. Communication and information flow between the World Bank, the Buy-in. From the outset, the buy-in of the implementing firm and the electricity company electricity company was of critical importance. impacted design and implementation of the At the end, the electricity company has taken up activities. At the design stage, listening to the the torch to continue the stakeholder committee needs of the electricity company in the selection meetings, at least in the foreseeable future, and of pilot communities created a good relationship start implementing Stakeholder Committee Plan between the implementing stakeholders. During with the energy efficiency agenda, but there implementation, the electricity company were ebbs and flows in the interest to implement switched a number of times the contact person the social impact pilots. There were a number of responsible for the project however, and this did factors that influenced this: negatively impact the continuity of the relationship and communication. Some of these communication strategy and efforts for the changes resulted from the internal hierarchical company. In short, during implementation a lot dynamics inside the company. Based on this of parameters change in such a fragile and experience, the team would strongly dynamic political and social context. Teams may recommend an initial assessment of internal be able to anticipate some of these, but adaptive dynamics of the implementing partners with management and flexibility in changing the which any such intervention will be undertaken. design of activities is necessary to be able to A lot of institutions have their own internal continue to operate. complexities. Understanding these up front is not an easy or straightforward task, but should Implementing partner. The implementing be on a team’s radar. Additionally, agreeing up firm matters greatly in all projects, but even to a front and explicitly on the project contact person greater extent in projects taking place in and a set method of communication, including environments with lower trust and higher mode, frequency and format of communication, fragility. The implementing firm in this case had should help teams maintain their relationships proven experience working in the Southeast of better and calibrate everyone’s expectations Turkey on community mobilization projects. from the start of the project. Through these projects, they had an established network with local civil society organizations and Political and social context. Bear in mind community leaders. This network was extremely that the larger context has many implications in useful during project implementation in project implementation, especially in one so ensuring participation in stakeholder interconnected to regional political and social committees and creating buy-in on the side of issues. The elections, the thaw in talks between communities. Similarly, experience in the region the government and the Kurds on reconciliation, was also an asset while conducting the field the civil war in Syria, the advent of ISIS, the research, since the firm designed survey and broader messages of the electricity company, focus group discussion questions and fielded the ongoing electricity shortages all impacted the research with local surveyors familiar with the process and outcomes. The targets for the cultural, political and social sensitivities in the reduction of non-payment that the company region, and fluent in the languages of the needed to work with exerted strong pressure on communities. the company; there was increased frustration near the end of 2014, when the company Partnership with local actors. One definite realized they would not be able to reach these sustainable gain accomplished through the targets and risk significant financial loss, and project is the familiarization of the electricity even bankruptcy, in 2015 when government company with various civil society actors and subsidies would be reduced. During this time, networks in the region. The company and their company attention was diverted to further public relations firm viewed the landscape more publicizing non-payment of consumers in the as a private company and consumer dynamic Southeast in an effort to lobby the government rather than a development issue with political to extend target deadlines. This strategy worked and historical underpinnings. Working with local and the government extended the provision of civil society will help the company in outreach subsidies, yet this constituted a break in and in avoiding to present an image of 23 themselves as the Western company that flies in. The energy efficiency campaign, the different This will make any and all efforts they have in the payment options, better communication of region more sustainable vis a vis the electricity shortages and improved grievance communities. redress mechanisms can provide these short term wins for the electricity company. In short, Looking ahead – factors for sustainability the sustainability of the approach depends on and replicability. At this juncture, the the company performing and communicating on these action plan items, and the citizens’ electricity company has adopted and intend to behavioral change towards payment. Even after continue efforts under this social compact in the initial moves by all parties, another factor for pilot communities. Whether this will be sustainability will be the monitoring of the sustainable or replicable in other communities in implementation of the action plan and the region largely depends on the perceived value added by the company. Given its current commitment to gradually address all of the issues laid out. cost recovery rates, the company will not be able to invest in infrastructure comprehensive and The biggest lesson for replicating the approach improve service quality very noticeably in the elsewhere in Turkey or ECA is to strive for quick short term. This means that, while continuing reciprocal wins for each side, because ultimately the dialogue, in the short term, the company the success of the effort is dependent on needs to deliver in other ways to communicate whether the service provider and the consumers its good will to citizens, and for citizens to see value added in their work and lives. respond positively by increasing payment rates. The ability of the social compact approach to engender trust and grow as a process will be heavily influenced by the ability of each party to hold up their end of the accountability bargain beyond the dialogue. 24 Annexes Annex I. Consumer Satisfaction Survey & Focus Group Discussion Design in Pilot Communities Pilot Communities Field Research Type Locations & Number of Participants Mardin Sanliurfa FGD Saracoglu Ulucami Eyyubiye Hacibayram 10 male 12 female 10 male 10 female Household Survey Saracoglu Ulucami Eyyubiye Hacibayram Urban Low Income 41hh 40hh 40hh 40hh Gokce Dikmen Ayvanat Golbasi 12hh 11hh 12hh 12hh Total FGD: 22 participants, Survey: 208 households FGD - - - - Urban Middle Income Household Survey Latifiye Ensar Bamyasuyu Yesildirek 42hh 41hh 46hh 39hh Total Survey: 168 households FGD Dikmen Gokce Minare Balkat 8 male 11 female 8 male 12 female Elgun Rural Low Income 7 male Household Survey Dikmen Gokce Elgun Yucelen 31hh 30hh 30hh 30hh Total FGD: 46 participants, Survey: 121 households FGD 10 male 7 male Commercial Survey 51 firms 52 firms Total FGD: 17 participants, Survey: 103 firms Annex II. Stakeholder Committee Strategic Framework for Increased Electricity Payment and Improved Service Quality in the Dicle Region Problems and Solutions Identified by Consensus in Stakeholder Committee Meetings Problem Proposed Solution/Strategy Intervention Measures Possible Stakeholders Time Cost Area 1.Promote social awareness that illegal use of 1.1. Awareness raising activities, information campaigns Opinion leaders, imams, political party Medium Low ELECTRICITY USE electricity is a crucial problem with substantial leaders, civil society, muhtars, electricity term social, environmental and economic impacts. company, Chamber of Agriculture, Irrigation ILLEGAL Association, Chambers of Commerce, private sector 2.Promote increased trust between local 2.1. Conference on the economic development of the Universities, regional development agencies, Medium Medium communities and the central government. region with focus on growth and employment Ministry of Development, Ministry of Labor, term private sector, Chamber of Commerce, Chamber of Agriculture 3.Increase production and use of alternative 3.1.Lobbying for improvement of current regulations on Energy Market Regulatory Authority (EMRA), Medium Low energy (solar, wind, geothermal etc.) alternative energy (such as strengthening the General Directorate of Renewable Energy, term promotion of alternative energy production and GAP Development Administration, private ensuring that providers invest in the region) sector, NGOs, electricity company 3.2.Awareness and information campaigns promoting Municipalities, provincial administrations, Short Medium alternative energy sources regional development agency, GAP term QUALITY OF ELECTRICITY SERVICE Development Administration, civil society, city councils, private sector, electricity company 3.3. Research and piloting of energy production from Development agencies, municipalities, Medium Medium solid waste. provincial administrations, GAP Development term Adminsitration, civil society, city councils, trade chambers, private sector. 4.Reduce electricity outages and voltage 4.1.Reduce duration and interval of electricity outages Electricity company Short to Medium fluctuations in urban and rural areas. for urban households and for rural households (so that medium agricultural production is not lost due to inability to term irrigate) 4.2.Improve electricity distribution infrastructure Electricity company, public institutions Short to High long term 4.3.Separate power lines distributing electricity to Electricity company, public institutions Medium High households and to irrigation (peak during irrigation to long season decreases quality of households electricitty) term 4.4.Decrease excessive / wasteful and illegal use of Electricity company, communities, industry Medium Medium electricity term 5.Ensure safety in electricity installation and 5.1.Increase safety of power lines, panel doors etc. Electricity company Medium Medium infrastructure term 26 Problem Proposed Solution/Strategy Intervention Measures Possible Stakeholders Time Cost Area 6.Ensure timely and accessible announcement 6.1.Improve data about end-users and disseminate Electricity company, users Short Low of electricity outages information via text message as well as radio, TV etc term 6.2Improve registry of electicty users Electricity company, users Medium Low QUALITY OF ELECTRICITY term 7.Improve qualification and competence of 7.1Establish quality standard for personnel; develop Electricity company Medium Medium electricity service personnel (field staff and measures to decrease inaccurate meter readings; term SERVICE customer services) develop corporate capqcity for customer relations; inform users about investments made in the region 8.Decrease communication problems between 8.1.Identify, sort and repsond to grievances in a timely Electricity company Short Medium electricity company and users and effective manner term 8.2.Effectively monitor consumer applications and Electricity company, EMRA Short Medium electricity company responses regarding consumer term rights protections 8.3.Organize regular consultation meetings between Electricity company, users Short Low electricity company and users term 9.Institute irrigation pricing based on hectare 9.1.Flexilbe payment options to allow for farmers to pay Electricity company, EMRA Short to Medium and crop, or number of wells electricity bills medium ELECTRICITY PRICES term 10.Provide public incentives / subsidies to 10.1.Provide subsidies for the farmers who do not Regional development agencies, Minsitry of Medium Medium farmers who use water pumps operated by benefit from the government infrastructure Agriculture term electricity for irrigation investments for irrigation 10.2.Reduce electricity prices at the regional level given EMRA, electricity distribution company Medium Medium the socio-economic development of the Dicle region term 10.3.Provide electricity grants, similar to grants for Ministry of Agriculture Medium Medium diesel oil. term 11.Increase accountability and tranparency 11.1Infrom users about invoice items, applicable fees Electricity company Short Low regarding piricing of electricity bills term 12.Develop methods for increased energy in 12.1.Conduct research and model projections regarding Chamber of Agricultural Engineers, irrigation Medium Medium electricity consumption sustainbility of electricity use in agricultural irrigation associations, Minsitry of Agriculture, Ministry term LOSS OF ENERGY AND of Environment, GAP Regional Development WASTEFUL USE Administration, regional development agencies 12.2.Promote use of drip irrigation Chamber of Agricultural Engineers, irrigation Medium High associations, Minsitry of Agriculture, GAP term Regional Development Administration, regional development agencies, farmers 12.3.Switch to less water-intensive crops Chamber of Agricultural Engineers, irrigation Medium High associations, Minsitry of Agriculture, GAP term Regional Development Administration, regional development agencies, farmers 27 Problem Proposed Solution/Strategy Intervention Measures Possible Stakeholders Time Cost Area 12.4. Develop, pilot and disseminate mechanisms to Chamber of Agricultural Engineers, irrigation Medium Medium impede excessibe use of water associations, Minsitry of Agriculture, GAP term Regional Development Administration, LOSS OF ENERGY AND regional development agencies, farmers 13.Ensure effective and efficient electricity 13.1.Awareness raising and information campaigns on Electricity company, opinion leders, imams, Short Low WASTEFUL USE consumtption and waste prevention through electricity saving methods (insulation, installation etc), muhtars, municipalities, city councils, term behavioral changes with special focus on women and youth universities, GAP Development 13.2.Developing key messages on energy waste (based Adminsitration, civil society, women and Short Low on beliefs, ethics, economy and environment, with youth centers, Chamber of Agriculture, term content designed with community feedback) irrigation associations, Ministry of Agriculture, 13.3.Design and conduct training of trainers to establish Chamber of Commerce, private sector Short to Medium a group with energy efficiency knowledge that can medium educate communities at local level term 13.4.Conduct educational and awareness campaigns for Short Medium irrigation farmers term 14.Improve communication, mutual trust and 15.1.Ensure that electricity company sources and Electricity company Short Low COMMUNICATION AND COOPERATION cooperation between service provider and purchases needs from local companies to the extent term users possible 15.2.Recruit locals to the extent possible Electricity company Short Low term 15.3.Collaborate with municipal call centers in receiving Electricity company, municipalities Medium Medium customer complaints term 15.4.Share and disseminate service standards with the Electricity company Short Low public term 15.5.Establish energy stakeholder platforms at city level, Electrıcıty company, Medium Medium organize quarterly meetings on investment and policies term 15.6.Design and implement a Corporate Social Electricity company, opinion leders, imams, Medium Medium Responsibility Plan with feedback from communities muhtars, municipalities, city councils, term universities, GAP Development Adminsitration, civil society, women and youth centers, Chamber of Agriculture, irrigation associations, Ministry of Agriculture, Chamber of Commerce, private sector. 28