[Attachment(s) from Isha Khan included below] Attachment(s) from Isha Khan
WATER POLICY IN BANGLADESH - Aspects of Privatisation
By Mohiuddin Ahmad
Water has been a free gift of nature. Now it is a commodity. Access to water is recognised as a basic right. But procedural and fiscal measures are enforced to harness and regulate its mobilisation and use. The Government of Bangladesh has formulated a National Water Policy, which is in operation since1999.
Objectives
The water policy aims to provide direction to all agencies working with the water sector, and institutions that relate to the water sector in one form or another, for achievement of specified objectives. These objectives are broadly outlined in the policy as:
To address issues related to the harnessing and development of all forms of surface water and ground water and management of these resources in an efficient and equitable manner;
To ensure the availability of water to all elements of the society including the poor and the underprivileged and to take into account the particular needs of women and children;
To accelerate the development of sustainable public and private water delivery systems with appropriate legal and financial measures and incentives, including delineation of water rights and water pricing;
To bring institutional changes that will help decentralise the management of water resources and enhance the role of women in water management;
To develop a legal and regulatory environment that will help the process of decentralisation, sound environmental management, and improve the investment climate for the private sector in water development and management;
To develop a state of knowledge and capability that will enable the country to design future water resources management plans by itself with economic efficiency, gender equity, social justice and environmental awareness to facilitate achievement of the water management objectives through broad public participation.
Water Rights and Allocation
According to the Government policy, the ownership of water does not vest in an individual but in the State. The Government reserves the right to allocate water to ensure equitable distribution, efficient development and use, and to address poverty. The Government can redirect its use during periods of droughts, floods, cyclones, and other natural and man-made disasters, such as contamination of groundwater aquifers that threaten public health and the ecological integrity. Allocation rules will be the formal mechanism for deciding who gets water, for what purpose(s), how much, at what time, for how long, and under what circumstances water use may be curtailed. Rules for water allocation will be developed for in-stream needs (ecological, water quality, salinity control, fisheries and navigation) during low flow periods; for off-stream withdrawal (irrigation, municipal and industrial, power), and for groundwater recharge and abstraction. Allocation for non-consumptive use (e.g. navigation) would imply ensuring minimum levels in water bodies used for that purpose.
The Government may confer water rights on private and community bodies to provide secure, defensible and enforceable ownership rights to ground water and surface water for attracting private investment.
Public and Private Involvement
The Government wants involvement of the public and private sectors in the delivery of water-related services. The policies of the Government regarding the respective roles of the public and private sectors are:
Government's investments in water programme will be directed towards creation of public goods or for addressing specific problems of market failure and protecting particular community interests.
Policies and programmes of any public agency involving water resources will be coordinated with the policies and programmes of all other public and private bodies to build synergy and avoid conflict.
Public water institutions will, to the extent feasible, use private providers of specific water resources services in carrying out their mandates, giving preference to beneficiary groups and organisations.
The management of public water schemes, barring municipal schemes, with command area up to 5000 ha will be gradually made over to local and community organisations and their O&M will be financed through local resources.
Public water schemes, barring municipal schemes, with command area of over 5000 ha will be gradually placed under private management, through leasing, concession, or management contract under open competitive bidding procedures, or jointly managed by the project implementing agency along with local government and community organisations.
Ownership of FCD (flood control and drainage) and FCDI (flood control, drainage and irrigation) projects with command area of 1000 ha or less will gradually be transferred to the local governments, beginning with the ones that are being satisfactorily managed and operated by the beneficiary/ community organisations.
Appropriate public and private institutions will provide information and training to the local community organisations for managing water resources efficiently.
Enabling environment will be created for women to play a key role in local community organisations for management of water resources.
Government, where appropriate, will restructure its present institutions and design all future institutions for efficient implementation of the above policies.
Water and Agriculture
Support of private development of groundwater irrigation for promoting agricultural growth will continue, alongside surface water development where feasible. But there will be a renewed focus towards increasing efficiency of water use in irrigation through various measures including drainage-water recycling, rotational irrigation, adoption of water conserving crop technology where feasible, and conjunctive use of groundwater and surface water.
Despite criticisms for indiscriminate extraction of groundwater for irrigation, the Government policy is to continue mining of groundwater for this purpose. The policy of the Government is to:
Encourage and promote continued development of minor irrigation, where feasible, without affecting drinking water supplies;
Encourage future groundwater development for irrigation by both the public and the private sectors, subject to regulations that may be prescribed by Government from time to time.
Economic and Financial Management
Changes are brought in the system of prices and other economic incentives affecting water demand and supply. The policy is that "the users pay a price for water". This is phrased as a mechanism for 'cost recovery' for investments and O&M.
Public service agencies so far in charge of water delivery are more and more tightening their grip to collect tolls. This has been the result of gradual withdrawal of subsidy from the agriculture sector. The policy of the Government is:
Water will be considered an economic resource and priced to convey its scarcity value to all users and provide motivation for its conservation.
For the foreseeable future, however, cost recovery for flood control and drainage (FCD) projects is not envisaged in this policy. In case of flood control, drainage, and irrigation (FCDI) projects water rates will be charged for operation and maintenance (O&M) as per Government rules.
Relevant public water supply agencies will be gradually given authority to charge for their services.
Recovery of O&M cost will, as far as possible, be made through private collection means such as leasing and other financial options.
The pricing structure will match the goals and needs of the water provider and the population served. Water rates will be lower for basic consumption, increasing with commercial and industrial use. The rates for surface and groundwater will reflect, to the extent possible, their actual cost of delivery.
Water charges realised from beneficiaries for O&M in a project would be retained locally for the provision of services within that project.
Effective beneficiary participation and commitment to pay for O&M will be realised at the project identification and planning stages by respective public agencies.
Appropriate financial incentives will be introduced for water re-use and conservation, responsible use of groundwater, and for preventing overexploitation and pollution.
Domestic Water
The National water Policy (1999) does not adequately address the issue of domestic water. The issue of domestic water has been dealt with in the National Policy for Safe Water Supply and Sanitation 1998.
The Government acknowledges that many functions of the water supply and sanitation sector can be undertaken by private organisations. Government thinks that it would "promote increased service coverage and thereby lessen the burden on the Government". Government policy is to strengthen an administratively and financially enabling environment for the private sector to participate and contribute to sector development.
For rural water supply, the Government policy is that user communities shall be responsible for operation and maintenance of water supply facilities and shall bear its total costs.
For urban water supply, private sector participation will be promoted through BOO/BOT (build, own and operate / build operate and transfer) and other arrangements. For this purpose, opportunities will be created for involving the private sector in billing and collection. The Government will prepare a guideline on private sector participation in the sector.
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Mohiuddin Ahmad is the Chairman of the Community Development Library (CDL), which is a network of development information and communication in Bangladesh. He is a founder member of South Asian Alliance for Poverty Eradication (SAAPE), Coordinator of South Asian People's Forum on River Water and Environment, Co-Convener of People's SAARC and an ARENA Fellow.
http://www.jubileesouth.org/news/EpZZZZkVklINTiHJSC.shtml
DRAFT BANGLADESH WATER ACT:
http://www.warpo.gov.bd/PDFs/Draft_BWA.pdf
http://www.warpo.gov.bd/RETA/Draft%20BWA.pdf
National Water Policy:
http://www.warpo.gov.bd/nw_policy.pdf
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