Trends in the Performance Indicators of the WSS Utilities in the Kyrgyz Republic

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• Trends in the Performance Indicators of the WSS
  Utilities in the Kyrgyz Republic
• Ildus Zalyalov
• Kyrgyzzhilkommunsoyuz
• Helsinki, Finland, 24-25 May 2007

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Objectives of Work Carried Out

• Monitoring the water supply and sanitation system
  in the Kyrgyz Republic in 2000-2005 based on
  eleven water utilities of the republic (IBNET and
  statistics)
• Capacity building in the collection of technical
  and financial data by transferring the World Bank
  methodology (IBNET)

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Institutional Features of the Water Supply and
Sanitation Sector in the Kyrgyz Republic

• Devolution stage is over and under respective
  decrees of the republics Government water
  utilities were transferred into the supervision
  of the local governments
• Assets of the water utilities transferred to the
  local level are in municipal ownership of the
  local governments
• Tariffs are approved on site by the heads of
  oblasts and Bishkek City public administrations

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Data Collection Techniques for Monitoring the WSS
Utilities Performance

• State statistical statements
• Sectoral forms taking into account the
  specificity of water utilities operations are
  filed quarterly together with accounting
  statements and balance sheets
• IBNET indicators sample survey (questionnaires),
  on-site visits, telephone calls.

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Analysis of WSS Utilities Operational and
Technical Indicators

• Cities and urban villages of the republic are
  covered with the centralized WSS services at
  approximately 90 percent. For the localities
  included in the sample for monitoring purposes,
  the indicator is somewhat lower and equals 65
  percent for water supply and 25 percent for
  sanitation in 2005.

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Analysis of WSS Utilities Operational and
Technical Indicators (2)

• Volume of unaccounted-for water (in percent) at
  WSS utilities ranges from 9 percent to 66
  percent.

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Analysis of WSS Utilities Operational and
Technical Indicators (3)

• Metering of the water consumption by households
  remains at a very low level in the Kyrgyz
  Republic. According to the monitoring data, the
  indicator did not exceed 1 percent during the
  analyzed period.
• Wear and tear of the water networks is as high as
  70 percent. In 2001, 22.1 percent of the street
  water supply networks had to be replaced and in
  2005, 37.3 percent.

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Analysis of Financial IndicatorsCost recovery by
household tariff
Approved tariff did not go up considerably during
the analyzed period moreover, it decreased
during the past three years from 2004 until 2006.
Moreover, the difference between approved tariff
and statutory percentage of cost recovery was
almost 30 percent in 2006.
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Analysis of Financial Indicators

• In addition to low tariffs, the following factors
  affect the loss-making by utilities
• The share of households in service consumption
  went up from 60 percent to 68.7 percent and
  collection rate went down from 80 percent to 63
  percent from 2000 to 2005
• Households arrears increased by 46 percent
  from 2000 to 2005
• ! Problems with attracting skilled labour.
  Monthly average wage was just USD 67 in 2005
  (minimum consumer budget USD 63 per capita)

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Conclusions

• Despite the stability and regularity (24 hours)
  of services, service quality keeps declining
  (increase in unaccounted-for water, network
  deterioration)
• Water utilities remain loss-making (costs are not
  recovered by tariffs, decrease in collection
  rate, build up of arrears)
• Investment remains at a very low level