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CASE STUDIES

A novel private sector initiative for the poor
By Robert E. Sullivan

How does one get cheap, clean water into a Philippine coastal town? Easy, with a debit card that you carry in your pocket. It is beginning to work fairly well, and cheaply, for the poorest people, in Ronda, Cebu, the Philippines. According to entrepreneur Quentin Kelly, it may be the wave of the future for poverty stricken rural and urban areas that do not have electric power.
Water gushes from a newly installed solar-powered well pump in Pakistan. Photo © R.E. Sullivan

Mr. Kelly sees the system as ideal approach for "slum upgrading projects in the world's most derelict urban neighbourhoods." His New Jersey-based WorldWater is installing a complete water system for the town of Ronda, from a deep, solar-powered well that needs neither diesel fuel nor any connection to an electricity grid. The water is fed through channelling pipes, to standpipes and taps. The project goes well out on a limb from his core business of solar-powered water pumps.

"First we convinced the mayor and the town council," he said in an interview with Habitat Debate, "then we went to the local banks." The ace up the sleeve, he said, was the so-called AquaCard which is pre-paid by water users into an account, from which money is automatically deducted as the water is used.

"We told the banks they'd get their money instantly," Mr. Kelly said he said. "And we told them that according to the World Health Organization people use about 20 litres a day. That's a lot of business. They were convinced by that."

It took about two years to get the system up and running. "And the result is that the banks are getting their money back, while the people are getting clean water for about 15 to 20 per cent of the price they used to pay," he said. The entire project is run and sponsored locally.

The construction of a complete water system is a new advance beyond Mr. Kelly's normal core business of solar pumps - a field they have been involved in for more than 20 years. WorldWater solar panels and pipe systems are currently pumping up water for remote populations of the Cholistan Desert of Pakistan to the suburban green houses of Ecuador. They are also pumping water in rural areas Sri Lanka, Malawi, Tanzania, Mozambique, Ethiopia, Angola, Somalia and several parts of the Philippines, as well in huge farms and vineyards in California.

He has been invited to bid for contracts in several other countries, but would prefer not to be too specific. All his projects in the developing world have two very basic things in common: solar power brings the water up without need of polluting fuel or connection to the electricity grid, and the operations are locally run. Even the pumps are locally bought as to make for easier repairs and maintenance. The projects are 100 percent financed ahead of time, and the overwhelming majority of his projects are in conjunction with partners in the private sector.

As to urban areas, Mr. Kelly said he had been examining various parts of the world and was eager to roll up his sleeves and work in the worst city conditions.

Referring to slum areas like those, which are close to downtown Rio but with little or no water, Mr. Kelly said: "What we would do is tap into the main water supply. We would establish our own distribution system and set up standpipes, and then, using solar energy, pump the water into the neighbourhoods where they need it."

When Mr. Kelly read that UN Secretary General Kofi Annan recently launched a new UN commission to get the private sector more directly involved in development, he said, "that's exactly what we do".

WorldWater started as a research and development company in 1984 specifically aimed at private business activity supplying water and power in developing nations. The company also makes solar powered refrigeration units, and even street lamps, the kind which, he said, "could be used in slum upgrading projects" without the need for an electricity grid.

Robert E. Sullivan, an Irish journalist based in New York, specialises in the developing world for a range of international publications and electronic media.