WASA Charter

The principal achievement of 2002 was the development of the WASA Charter through a process of consultation with various government and non-governmental agencies. The Charter sets out the roles and responsibilities of the various stakeholders in the water sector, especially the rights of the consumers.

The consultation process culminated in a workshop held at the MCTPC on 11 November 2002. Although many comments were received the overall outcome was positive and the Charter enjoyed widespread support. This Charter has still to be confirmed as a legal instrument but it is expected that a Prime Ministerial Decision on this Charter will be announced before the end of this year.

Tariff Policy

In accordance with one of the requirements of the draft legislation described above we have progressed with the development of a National Water Tariff Policy based upon :

• Consumer interest and affordability
• Supplier costs of service provision
• The environment
• National economic policy

This Tariff Policy shall be the cornerstone of future tariff determinations for the water companies. It is our intention to make this policy statement public knowledge at the earliest opportunity.

Water quality regulations

We have prepared draft legislation on water quality standards and monitoring systems for the various water companies. This legislation recognises the financial and technical limitations of the companies. Rather than set mandatory targets to take immediate effect we have provided for generous time allowances for the companies to reach the specified quality and monitoring standards.

Technical and financial management training

We recognise the need for the water supply companies to improve their technical and financial management expertise in order to achieve the objectives of improved service levels and efficiency. With the support of several donor agencies we have provided, and will continue to provide, training to the staff and management of the water companies.

As the regulatory targets become more demanding as service levels improve the expertise of the staff of the water companies will have to improve. Continual improvement through training and other mechanisms is therefore strongly supported.

Development of arrears collection strategies

A major constraint to the financial viability of the water companies is poor cash flow, largely as a result of government customers failing to meet their water bill obligations within a reasonable period of time. Although cash flow management is a management function and outside our responsibilities as a regulator we have provided assistance to the water companies in the form of suggested arrears collection strategies.

It is too early to determine the results of this initiative but we are observing the situation closely with a view to reporting on cash flow in more detail in subsequent annual reports.

Water loss analysis

We have undertaken research into the water loss statistics of all the provincial nam papas employing scientific statistical analysis techniques. This research into water loss control is an ongoing project that will enable WASA to set realistic, achievable and economic targets of water loss reduction.

Awareness development

The general understanding of the water sector in the Lao PDR is generally weak. In many instances people still refer to Nam Papa Lao as a national institution but in fact now only serves Vientiane Prefecture since decentralisation and the creation of Provincial Nam Papas.

This lack of awareness extends to several areas including tariffs, cost recovery, level of service, investment planning etc. We have initiated several programmes of general awareness building to enable the customers to make informed choices about the water supply services that are available to them.

By the same token, we in WASA cannot claim to be fully informed about the needs and aspirations of the general public. We have also initiated many programmes whereby we can gain a greater understanding of the customers. Activities include affordability analyses for several project towns, the establishment of benefit monitoring and evaluation programmes, and continual dialogue with all the stakeholders.

Small towns sector policy

The current institutional arrangements for water supply include the Nam Saat for rural communities and the Provincial Nam Papas for the larger towns and cities. We recognise that this leaves a gap that is not served by either group, the small towns. With the assistance of the World Bank’s Water and Sanitation Programme and the PPIAF we have initiated a study that focuses on this group. The objective of the study is to identify appropriate management models that can deliver a safe and reliable water supply to these communities. We anticipate the publication of the results of this study later this year.

International recognition

Regulation in the water sector is a relatively new concept worldwide but has gained acceptance as a necessary component of any strategy to improve the value of water supply services. WASA has been recognised as a regional leader in this field. This recognition has resulted in researchers representing agencies such as the Asian Development Bank observing the activities of WASA, presenting it as a role model for regulation in other countries in the SE Asia region and elsewhere in the world.