The 7th Ministerial Forum sought to not only discuss key issues in water management financing in the region but to identify potential policy and other approaches for pricing, efficiency, equity and sustainability in the water sector.
The Caribbean Ministers present at this year’s Forum, the Honourable Carlisle Powell, Minister of Communications and Works of Nevis; Honourable Dr. Earl Martin, Minister of Housing, Public Utilities, Public Works and Energy of St. Kitts; Honourable Reginald Austrie, Minister of Lands, Housing, Settlements and Water Resource Management of Dominica; and Honourable Guy Joseph, Minister of Communications, Works, Transport and Public Utilities of St. Lucia have all given support to key recommendations coming out of the 7th HLS for better water management.
The Ministers signed a Decision Paper endorsing:
- A regional regulatory framework for setting appropriate water rates and tariffs be established;
- Dialogues on water financing opportunities should be widened to include Ministers with responsibilities for Finance, Energy, Environment, Health, Agriculture and Tourism;
- Sustainable cost recovery measures for water utilities should be introduced;
- Regional committees should be set-up for follow-up and compliance with HLS Decisions;
- Integrated Water Resources Management (IWRM) should be used as the tool for effective water management;
An enabling policy environment should be created to mobilise multilateral, regional and bilateral resources for the implementation of IWRM plans in the region.
Discussions, experiences and national perspectives presented by various regional water utility managers on water financing in the Caribbean, significantly highlighted the dire need for innovative ways of managing and financing the water sector in the Caribbean.
One of the major issues brought to the fore at the Ministerial Forum was the need for regional governments to decide whether water utilities are to be run as a social service or a business. It was felt that if there isn’t a sufficient charge attached to water, the service would deteriorate in the long-term. Additionally, participants expressed that if water is not taken seriously as a business, water utilities would have the enduring problem of looking for funding instead of funds from their own profits.
A commercial business approach of the utilities was seen as a means of helping utilities focus on efficiency and collection of revenues as full cost recovery was cited as an imperative goal that should be adopted by all water utilities. Mr. Glenn Khan, Deputy Executive Director of the Regulated Industries Commission (RIC) who led discussions on good practices in water financing and water pricing said “Full cost recovery should be the goal of every utility.”
The Honourable Guy Joseph, Minister of Communications, Works, Transport and Public Utilities of St. Lucia raised the issue of the massive loans held by water utilities. He expressed the fact that these loans have hindered the utilities from meeting the needs of the customers they serve.
It was evident from discussions at the 7th HLS, that more innovative ways of managing water are needed in the region. Participants gave suggestions on resourceful ways of managing water such as the use of small community-based water supply systems; rainwater harvesting cross-subsidies that are targeted, well defined, transparent, reliable, practical; and sustainable water augmentation techniques.
The question of how well water has been marketed in the region was also raised when compared to electricity and telecommunication services. Water is more important to families than many of these other services but it is often not given a high priority on their list of monthly expenses. This highlighted a serious need for greater water education at all levels.
Honourable Dr. Earl Martin, Minister of Housing, Public Utilities, Public Works and Energy of St. Kitts, similar to Minister Gilbert, stressed the importance of educating the public on water issues. He explained that as a region that paradigm shift has not been made and there is an undeniable need for greater public awareness and engagement of the public in the management of their water.
In addition to educating the public on the value of water, Honourable Joseph Gilbert, Minister of Environment, Foreign Trade and Export Development of Grenada also stressed the importance of educating people on the importance of a good water tariff. Minister Gilbert gave an anecdote of the case for the increase in the water tariff in Grenada which was approved in 2010, citing the past tariff structure of the National Water and Sewerage Authority (NAWASA) severely restricted the utility’s ability to increase its revenue and successfully operate in today’s environment.
Multilateral funding was pinpointed as a real need and issue for regional water utilities. CARICOM representative at the Meeting, Ms. Anya Thomas urged participants to explore the linkages between water and climate change as an avenue for funding from multilateral agencies to assist utilities with disaster mitigation planning and water resources management. She also stressed the need for greater dialogue between the sectors of Energy, Transport, Agriculture and Water in looking at integrated financing strategies.
The discussions at the 7th HLS along with the recommendations approved by the Caribbean Ministers at the Meeting is seen as a way forward in working towards the sustainable management of water resources in the Caribbean region.