Output-Based Aid in Morocco (Part 2) : Expanding Water Supply Service in Rural Areas

Output-Based Aid in Morocco (Part 2) : Expanding Water Supply Service in Rural Areas

Since the mid-1990s, Morocco has made big strides in developing access to potable water in rural areas. The National Water Supply Company, Office national de l' eau potable (ONEP), has developed an important network of standpipes in rural comm...

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Bibliographic Details
Main Author:	Beauchêne, Xavier Chauvot de
Format:	Brief
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCESS TO POTABLE WATER ACCESS TO WATER AFFORDABLE ACCESS BUSINESS OPPORTUNITIES COMMERCIAL BANK COMPETITIVE BIDDING COMPETITIVE BIDDING PROCESS CONNECTION FEE CONNECTION TARGETS CUBIC METER CUSTOMER BASE DOMESTIC CONNECTION DOMESTIC CONNECTIONS DOWN PAYMENT DRINKING WATER EXPENDITURES FAMILIES FINANCIAL SUSTAINABILITY FIXED COSTS HOUSEHOLD CONNECTION HOUSEHOLD CONNECTIONS HOUSEHOLDS HYGIENE INCOME-GENERATING ACTIVITIES INSTALLMENTS INTEREST RATE LARGE CITIES LARGE URBAN CENTERS LOCAL AUTHORITIES LOCAL OPERATORS MANAGEMENT OF WATER MICROCREDIT MORTALITY RATES MUNICIPAL UTILITIES MUNICIPALITIES NATIONAL UTILITY NATIONAL WATER NATIONAL WATER SUPPLY OUTPUT WATER PAYMENT FOR WATER PIPED WATER POTABLE WATER PRIVATE OPERATOR PRIVATE OPERATORS PRIVATE SECTOR INVOLVEMENT IN WATER PROFITABLE BUSINESS PROVISION OF WATER PROVISION OF WATER SUPPLY PROVISION OF WATER SUPPLY SERVICES PUBLIC-PRIVATE PARTNERSHIP RESPONSIBILITY FOR SERVICE PROVISION RURAL COMMUNITIES RURAL WATER RURAL WATER SUPPLY SANITATION SANITATION SERVICES SAVINGS SERVICE CONTRACTS SERVICE PROVISION SMALL CITIES SMALL TOWNS SUPPLY OF WATER SUSTAINABLE WATER SUSTAINABLE WATER SUPPLY TARIFF STRUCTURE TECHNICAL ASSISTANCE UTILITIES VULNERABLE HOUSEHOLDS WATER CONSUMPTION WATER DISTRIBUTION WATER PRODUCTION WATER SALES WATER SECTOR WATER SERVICE WATER SERVICE PROVISION WATER SERVICES WATER SUPPLY COMPANY WATER SUPPLY DISTRIBUTION WATER SUPPLY SERVICE
Online Access:	http://documents.worldbank.org/curated/en/2009/06/10869773/output-based-aid-morocco-part-2-expanding-water-supply-service-rural-areas http://hdl.handle.net/10986/10980

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Summary:	Since the mid-1990s, Morocco has made big strides in developing access to potable water in rural areas. The National Water Supply Company, Office national de l' eau potable (ONEP), has developed an important network of standpipes in rural communities and over 87 percent of the rural population has access to a source of drinking water. Many households are now asking for domestic connections, but ONEP's fixed costs make service provision to smaller communities through the development of domestic connections a loss-making business. To serve these populations better, ONEP is piloting Morocco's first public-private partnership to subcontract water service provision and management in rural areas, using an affermage-type contract. During the first years of the ten-year contract, the private operator will receive performance-based subsidies from ONEP under an output-based aid (OBA) approach. This will allow the operator to break even early enough to develop a profitable business within the existing tariff structure. If successful, this model for rural water supply could be scaled up in other small towns and surrounding rural areas, thus presenting business opportunities for the Moroccan private sector while enhancing access to piped water services for the poor.