Delhi Metropolitan Water Supply And Sewerage Board

2099 Words9 Pages
The landscape of Hyderabad’s water utility today is characterized by inadequate water supply outpaced by growing demand, an unreliable network, inequitable water access for low-income households, and a tense political climate. If these issues are not urgently addressed in the private-sector participation (PSP) sought by the city, they will continue to plague Hyderabad into the future. After thorough analysis, we recommend the Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB) strive for an output-based concession that grants a private company flexibility to expand as desired, but also ties financial incentives to expansion and performance to ensure pro-poor coverage.

The following sections present an outline of the HMWSSB’s current challenges, as well as the analytical support for our recommended strategy of a successful PSP that is both pro-poor and attractive to multiple bidders.

Context and Challenges

Hyderabad’s fast-growing population places additional constraints on the city’s already overextended infrastructure. Currently, the city faces three primary challenges with the existing system: water supply and reliability, water access and equity, and political climate.

⋅ Water Supply and Reliability: Hyderabad suffers from an insufficient water supply to match growing demand for water utilities. In addition to irregular seasonal rainfall and the low capacity of local reservoirs, poor infrastructure, suspected water syphoning, and mismanagement result in
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