Water supply and sanitation in Jamaica

"Source": Office of Utilities Regulation Annual Report 2005-2006, p. 48 [ [http://www.our.org.jm/new/Documents/Company%20Reports/cadannual_reports.asp OUR] ]

Most of the country's over 595 unplanned squatter settlements [Sanitation Policy] or approximately 10% of the population is located nearby unhealthy and unsanitary environments without piped water or sanitation where there is a high risk of waterborne diseases. The vulnerability to natural disasters threatens the existing water and sanitation systems. Furthermore, there is a heightened probability of contamination of systems following hurricanes due to service interruption as well as the incidence of health-related diseases.

Responsibility for water supply and sanitation

Policy and regulation

Policy

The Ministry of Water and Housing (MWH) is responsible for setting water and sanitation policies. It is also in charge of ensuring that all housing developments meet required standards for sanitation. The Ministry of Health develops and implements health policies and legislation to promote appropriate sanitation practices; establishes and monitors health indicators for sanitation, enforces public health laws, provides public education on sanitation and hygiene. The National Environment and Planning Agency (NEPA) determines and monitors environmental standards for water supply and sanitation. Local Authorities have only a limited role in the sector.Some of the existing policies and programs related to water supply and sanitation are:
* Water Sector Policy, Strategy and Action Plan (2004) has as its main objective to ensure that all households have access to water by 2010, sewer all major towns by 2020, as well as rehabilitate existing non-compliant facilities to achieve compliance with national environmental standards.
* National Solid Waste Management Policy (2000) establishes the framework for standard setting and regulatory agency, the National Solid Waste Management Authority which facilitates the private sector as the principal service provider. The policy also indicates cost recovery provision as key, establishments of sanitary landfills, and solid waste management.The National sanitation policy for Jamaica notes that there are overlapping responsibilities at the national and local levels of government and a need for greater collaboration between NGOs, CBOs, community members, as well as the government. [ National sanitation policy for Jamaica (draft) [http://www.bvsde.paho.org/bvsacd/cd48/Sanitation_Policy.pdf Sanitation policy] ] includes:

Regulation

The [http://www.our.org.jm/ Office of Utilities Regulation] (OUR) established by an Act of Parliament in 1995 to regulate, among others, water and sanitation service provision. The Office approves tariffs, sets targets for efficiency improvements, processes all license applications for utility services and makes recommendations to the Minister.

Service provision

Water service on the island is provided by one large public entity and three small private companies:
* The National Water Commission (NWC) is the main institution responsible for all major water and sewerage operations, including: production of water and collection, treatment and disposal of urban sewage. NWC is better able to recover costs from the tariffs set by OUR. Provision for rural water is shared between the NWC and the Parish Councils.
* The smaller private service providers are: Four Rivers Development, Runaway Bay Water Co., Rio Bueno Water Co, among others. The three provide 10-year non-exclusive licenses. Sanitation services are provided by NWC, Can Cara Development Company and Rosehall Utilities Company. [ OUR Annual Report 2006, p. 49 [http://www.our.org.jm/new/PDF-FILES/annualreport/OUR_Annual_Report_2005-2006.pdf OUR] ]

Other

The Jamaica Social Investment Fund finances community-based water and sanitation projects.

Economic efficiency

The water and sanitation infrastructure is inadequate and inefficiently operated, as the level of Non-revenue water for the NWC was 66% in 2005. [ OUR Annual Report 2005-2006, p. 43 ] In 2004, service providers produced 277 million cubic meters of water, but only 103 million cubic meters were consumed. [ OUR Annual Report 2005-2006, p. 47. The report makes reference to megaliters (Ml); each Ml (one million liters) is equivalent to 1,000 cubic meters ]

Financial aspects

Tariffs and cost recovery

Despite a tariff increase granted to NWC in 2004, the utility continued to register an operating loss for the fourth consecutive year. [ OUR Annual Report 2005-2006, p. 47 ] . There thus is no cost recovery for capital costs.

Poor enforcement of tariff payments contributes to the utility's low revenues. [ [http://www-wds.worldbank.org/servlet/WDSServlet?pcont=details&eid=000094946_02092104004520 World Bank] ] .

Whenever tariffs are adjusted, the NWC and the OUR shall implement a public awareness campaign on how to reduce bills through water conservation. [Ministry of Water “Jamaica Water Sector” 28 January 1999]

Investment and Financing

The water sector has a lack of enforcement of payments leading to a lack of investment [ [http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/03/14/000160016_20060314085044/Rendered/PDF/34741.pdf World Bank Inner City Services Project, p. 33] ]

Most financing is provided through government grants to NWC. The government intends to tap other source of financing, such as property taxes (called millage) and private sector financing.

External support

IDB

* [http://www.iadb.org/news/articledetail.cfm?language=English&artid=310&artType=PR JA0114 : Kingston Metro Water Supply Rehabilitation] Approved on June 23, 2004, a US$40 million loan aims to improve water and sanitation as well as to modernize the management in Kingston, Jamaica.

World Bank

* [http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P091299 Jamaica Inner City Basic Services for the Poor Project] Approved on March 29, 2006, 38% of the US$32.8 million loan is allocated to improving basic urban water, sanitation, and flood protection services.

* [http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P076837 National Community Development Project] Approved on October 24, 2002, 20% of the US$29.65 million loan is aimed at improving the water, sanitation, and flood protection sector.

JBIC

* [http://www.jbic.go.jp/autocontents/english/news/2007/000075/index.htm Kingston Metropolitan Area Water Supply and Rehab Kingston Metropolitan Area Water Supply and Rehab (US$6m)] Approved on June 1, 2007 and aims to assist USAID in expanding water supply to the Kingston Metropolitan Area.

Sources

* Ricardo de Paredes: “Jamaica: Privatization and Regulation, Challenges in Jamaica”, IDB Economic and Sector Study Series, July 2003 [http://www.iadb.org/regions/re3/Jamaica/Paredes_PriReg.pdf Paredes]
* [http://www.bvsde.paho.org/bvsacg/e/foro4/17marzo/asuntos/dialogue.pdf Dialogue V: Strengthening Local Capacity to Achieve Global Challenges (9-14 October 2005)]
* [http://www.bvsde.paho.org/bvsacd/cd48/Sanitation_Policy.pdf National sanitation policy for Jamaica (Draft)]
* [http://www.paho.org/english/sha/jamrstp.htm PAHO Jamaica Health for All (2000)]

References

External links

[http://www.moh.gov.jm/ Jamaican Ministry of Health]