Prepaid Meters & Water Kiosks

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Prepaid Meters & Water Kiosks

Dear colleagues,

- Water kiosks, I believe, should be regarded as a temporary solution. In the near future we should be ready to supply the residents of low income areas within their yard. I have met residents who are happy with the arrival of water kiosks in their area because they bring safe water closer to their home. On the other hand, I still have to meet residents of low income area who are really enthusiastic about kiosks. Also in the low income areas kiosks are seen as a step towards more individual solutions as with kiosks distances remain relatively long and kiosk service hours limited.

- Soon after informal settlements have been legalised, we can see plot owners and other urban residents investing in these low income urban areas....investing in low income housing. The impact of this change has been that nowadays in urban Zambia - unlike say 10 years ago when most families still owned the structure they lived in - many peri-urban residents are renting their accommodation. A single plot is shared by a number of families and often the landlord is living on the plot. We see the same situation here in Kenya and in Tanzania. Having water, a VIP, electricity and even DSTV/G-TV on the plot enables the landlord to ask for higher rents or to attract new tenants (local economies of scale)... and since through the collection of rent capital is being generated, these services become affordable even if households are poor. Supplying these areas through water kiosks only, is not a solution. In these urban areas we have to move towards yard taps. That’s why in Kenya we are developing a detailed yard tap concept (including drawings, pre-cast, etc.). In Kenya a WSP can insist that a connection is only made if the connection (before and after meter) and yard tap (beyond meter) meets certain (technical, ergonomic and hygienic)standards. A proper yard tap concept requires an adapted tariff structure and targeted regulation.

In many Kenyan and Tanzanian towns we do not have (no longer find) large slums. Poor people live on isolated plots (5 – 15 households/plot) which are surrounded by high cost housing, commercial plots, farms, etc. Kiosks are not a solution for these areas, yard taps are.

In other words, yes we will be able to improve water supply in low income areas through the construction of kiosks, especially where incomes are very low and where people control the plot they occupy...... however, the trend will be focussing upon other and developing new technical solutions which are more adapted to ongoing developments and demand (water within short distance, water which can be fetched whenever needed).

The water kiosk system, like Ecosan, should not be treated as a religion which offers a solution to all urban low income water supply problems. What we need to do is to assess, together with the WSPs, what the best solution is for a given locality. This requires understanding this locality and talking to residents (which means going there!); indeed what is required is an in-depth knowledge of local social, economic, cultural and demographic characteristics. That’s why it is wrong to speak about the “settlements of the urban poor”, the situation in urban Africa is much more complex. Although there may be a rationale behind using such a label at (inter-)national/workshop/retreat (etc.) level it label tends to simplify things and draw our attention away from a complexity, diversityand dynamic (social and economic differentiation) which forces us to develop adapted solutions.

What about pre-paid yard meters? The advantage of having a pre-paid yard meter or a pre-paid public standpipeis if the current situation can be characterised as follows:

-people are not paying their (yard tap) bill,

-landlords are unable to manage their yard tap,

-landlords are selling water at a high informal tariff to their tenants or neighbours,

-landlords close their tap or restrict consumption as soon as they are reaching the next tariff bracket.

In other words, a pre-paid yard tap makes the tenant more independent of (the managing capacities and whims of) the landlord.

If yard tap users/owners do pay their monthly bill, there are no real advantages and probably only disadvantages in having prepaid yard taps as indeed one has to raise the question why some customers are asked to pre-pay whereas others can pay their bill after consumption, provided they have paid a deposit (although I think the CEO of NWSC in Uganda would prefer to install prepaid meters everywhere).

Why do we need to be careful before we start up-scaling the Kampala experience;

-Revenue levels in Kisenyi and Ndeeba are still low, only 10% of what was expected. According to one of the experts responsible for the project this is due to the fact that fewer than expected households have a token. In fact some token owners – local entrepreneurs - are reselling water. Is this all due to a lack of sensitisation? Or are the expected per capita consumption levels based upon WHO recommendations instead of upon the actual market for treated water. I don’t know, but i hope to find out early next year.

-Operation costs are high (according to Mr. Patel the system is not suitable for small WSPs.

-Although the system allows for consumption analysis it remains possible to create by-passes.

Early next year we hope to visit Kampala and of course we can enlarge the group. I also believe however, that a visit should go beyond the guided tour/PowerPoint level. We would like to spend quite some time in the areas, simply talking to people (I know the areas a bit as I did the feasibility study for KfW).

Kiosks versus pre-paid public standpipes? Visiting a kiosk can be indeed a frustrating experience, especially when the visit takes place sometime between 10:00AM and 3:00 PM, because that’s when many of them are closed. Kiosk operators can be rude and some totally neglect their kiosk.... an additional liability. However, and here if do agree with Roland, the situation at some of the pre-paid stand posts I visited is not much better. Many of them are very dirty because they are not cleaned and because they were poorly designed.

Best regards

Han Seur

WSTF/UPCWater Kiosks & Prepaid MetersJune 2009