Involve private sector for better water supply: WB

"The public sector does not have the resources necessary to maintain the existing (water supply and sanitation) network, improve service quality and satisfy unmet demands," said a recently released WB study titled 'Private Solutions for Infrastructure in Bangladesh.'

It suggested that a 'multi-track reform' could only solve the growing problems of water supply and sanitation and the approach should focus both on adjusting cost-recovery charges in public utility services and creation of a favourable environment for private sector and NGO involvement in the sector.

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According to an Asian Development Bank (ADB) study, only 42 per cent population could be brought under urban water utility services in Dhaka, the lowest among the South Asian capitals or other major cities in 1997.

The coverage was 86 per cent in New Delhi, 81 per cent in Kathmandu, 70 per cent in Karachi and 58 per cent in Colombo at that time, the ADB study said.

Despite supports of the development partners in the form of loans, the study said, the water supply situation in Dhaka has only marginally improved and "additional support to the highly inefficient public bodies (like WASA) will not help the sector improve its performance."

"Accessing costly suppliers credits as funding from multilateral institutions ... will (also) increase the burden of external debt payments while brining limited social and economic returns," it said.

Officials said that out of more than 250 urban areas classified as municipalities or pourashavas, only 101 are served with piped systems to some extent, and these are all fed by deep tubewells.

Against these challenges, the study said, a multi-track reform approach was necessary.

"(And) the reform must focus, on one hand on adjusting cost-recovery charges and exerting greater financial and commercial discipline on public bodies, and on the other hand, on creating a more favourable legal and regulatory environment for inviting greater private-sector and NGO participation in the medium and long term."