Franchising of water services: a viable business format that can be used to improve the cost and reliability of water services at schools and in poor communities

Abstract

The focus by authorities on the roll-out of new water and sanitation infrastructure for providing services for the previously unserved has often resulted in a reduced focus on maintaining the existing infrastructure and services. When working with previously unserved and poor communities, the operation and maintenance of the water services infrastructure offers a sustainable work opportunity for local people. Having observed the difficulties experienced by small operating enterprises in these communities, it was apparent that most of these small businesses do not survive beyond their initial contracts. Studies were then undertaken to investigate the small business sector to identify ideas that could be borrowed from business for application for the provision of public services. The franchising model was identified, studied and piloted with the intention of evolving the basic franchise model to one which could assist locally based small business to provide improved water services to their local communities. It was found that in addition to the direct socio-economic benefits of job creation and local economic development, the model could offer many operational benefits for the authorities, including improved incentives as well as benefits relating to cost, quality and regulation.