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| Sunday, 11 May 2003 |
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Drinking water for all by 2010 Private sector participation to develop water supplies The National Water Supply and Drainage Board (NWSDB) aims to expand Sri Lanka's water supply coverage to about 80 per cent by 2005, stated the Central Bank Annual Report - 2002. Surveys have revealed that only 70 per cent of households have access to safe drinking water. Out of this, only 35 per cent have access to pipe-borne water. The main objective of the national water supply policy is to ensure that all residents have access to safe drinking water by 2010. A reduction in non-revenue water distribution, which is presently around 31 per cent, and a 24-hour pipe-borne water supply to all consumers by 2005 are the other major objectives of the NWSDB. The Board has estimated an annual investment of Rs 10 - 12 billion to reach these objectives. However, the Government allocates only about five billion rupees per year for water supply projects. Therefore, to reach these objectives and fill the investment gap, it is necessary to attract private sector investments. Community and non-governmental organisations can also play a role in the distribution and maintenance of projects in rural areas, the Central Bank said. Two pilot projects - Greater Negombo and Kalutara to Galle - have been identified by the Government for private sector participation. Consultants have been appointed to study the best model of private sector participation for these projects. A private operator is expected to be mobilised in Negombo next year. According to the annual report, a cost effective and flexible pricing policy and an effective regulatory mechanism are needed to encourage private sector participation in the water supply sector. The Public Utilities Commission, to be established, will be responsible for regulating the sector. The NWSDB operated 275 water supply schemes with 727,554 connections last year. Its total water supply increased by two per cent to 350 million cubic metres in 2002 from 2001. 62,388 new connections were provided during the year. The Board implemented 82 upgrading and rehabilitation projects at a cost of Rs 406 million last year. These projects, when completed, will benefit 1.3 million people. The NWSDB made a total investment of Rs 8,159 million in 2002, almost double the investment of Rs 3,896 million made in 2001. Eighty five per cent of last years's total investment was on new projects. Some of the major projects carried out by the Board during 2002 were the Small Towns Water Supply Project, Towns South of Colombo Water Supply Project and a project to reduce non-revenue water distribution in Colombo. The NWSDB's total revenue rose by 13 per cent to Rs 4,814 million in 2002 due mainly to the expansion in the consumer network and the upward revision of water tariffs last June. The tariff for the domestic sector was raised between 12.5 per cent and 87.5 per cent while the tariff applicable to the industrial and commercial sectors was raised by about 20 per cent. The tariff revision was effected to reduce existing cross-subsidies in the tariff system, encourage people to conserve water by giving an economic value to water and to cover rising operating expenses. The Board reported a net operating profit of Rs 112 million in 2002 compared to Rs 389 million in 2001. |
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