Publication: Output-Based Aid in Morocco (Part 2) : Expanding Water Supply Service in Rural Areas
Date
2009-06
ISSN
Published
2009-06
Author(s)
Beauchêne, Xavier Chauvot de
Abstract
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.
Citation
“Beauchêne, Xavier Chauvot de. 2009. Output-Based Aid in Morocco (Part 2) : Expanding Water Supply Service in Rural Areas. OBApproaches; Note No. 26. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/9acd1ccc-3998-5e71-8233-cb2a08546773 License: CC BY 3.0 IGO.”