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Module 07: Defining Parameters (scope)
7.5 What are the key parameter issues
for
pro-poor PPPs?
For some time traditional forms of PPPs have neglected to address the
needs of poor communities in the service scope defined as at the outset,
even though the government may have been well aware of the key issues
affecting service delivery to the poor.
The poor is the most vulnerable segment of the population
in terms of infrastructure reform. Of course, many poor people will benefit
from a geographical expansion in service provision where the expanded
coverage allows them to avoid the high costs of alternative services
(having to buy water from vendors, for example). On the other hand, the
proposed level of the service to be provided might appear to be unaffordable
for the poor community so might not improve access in any meaningful
way.
To optimise the cost-benefit ratio for the poor, clear parameters
for the PPP should be defined and developed, taking account of how the
scope of the PPP can affect access for the poor.
The process of setting PPP parameters for poor areas will
include the following factors:
◊ current access of the poor to the services;
◊ primary (physical, financial, social) constraints to better access;
◊ the access available for the vulnerable groups of population, such
as women, children, etc.;
◊ the proportion of the service bill of the household income of the
poor;
◊ the implications of the poor services, such as queuing times, the
additional burden on women, as a constraint on access to education.
In particular, the role of existing, sometimes informal,
providers could be extended or complemented in terms of service expansion,
instead of being substituted altogether by the private contractor. The
role of existing providers will depend of the affordability of the service
they provide and the standards of service that are regarded as being
acceptable by the community. Here an important indicator would be the
proportion of income that poor households currently spend on service
charges.
End of Module 07
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