1. Introduction
Inadequate financing of rural water systems O&M services has become a major barrier for the provision of sustainable water services in Sub-Saharan Africa [
1,
2]. Although remarkable progress has been achieved in recent years increasing water service coverage to previously unserved communities [
3,
4,
5] this has not translated into reliable service delivery [
6,
7,
8]. In fact, a 2018 UNICEF report on average rural water supply sector functionality rates indicates that around 40% of water points in rural communities become non-functional by the 10th year after installation [
9].
In this context, current development efforts have focused on providing people with universal and equitable access to safe, affordable and reliable drinking water for all [
10] under the guidance of the SDG target 6.1 [
11] and the framework of the human right to water and sanitation [
12]. Achieving these goals require a thorough understanding of the conditions that enable long-term functionality of rural water systems [
13].
In the last two decades the national water policies of many Sub-Saharan countries have relied on community-based management (CBM) as the prevalent model for managing rural water systems [
1,
14,
15]. The CBM model highlights the financial responsibility of the community to effectively finance the recovery of O&M costs, major repairs, rehabilitation and the long-term capital replacement work [
16]. Despite the support of key development players as international donors, implementing agencies and governments [
17,
18] recent scrutiny of the long-term functionality of rural water supply underlines weaknesses of the CBM model [
19,
20,
21] and calls for improvements in the financial model. Similarly, a number of studies assessing rural water financing challenges in Sub-Saharan Africa suggest that a high proportion of communities struggle to establish and maintain a system for collecting user fees and raise the required funds for sustainable O&M cost recovery [
22,
23].
Under the CBM model, communities are often expected to raise sums which are unacceptable by many members, unaffordable by vulnerable groups or impracticable on a regular basis as it disassociates from productive seasons-based income [
16,
24].
Carter, Herrera and several other authors [
15,
16,
21,
25,
26,
27] have underlined the urgency for a new model where cost-sharing arrangements between communities and development agencies could facilitate reliable service provision. Further, international organisations [
9,
28,
29] advocate for an increase in external financial support to complement user contributions and ensure the financial viability of the projects. The aim of the new model is a partial recovery of O&M costs through user tariffs while transfers from donors would cover major repairs, rehabilitation and replacements.
In this regard, the UNICEF 2018 rural water sector evaluation report emphasized the need for a better understanding of household preferences in the form of WTP. The report finds that an improved understanding of users’ willingness to pay will assist development agents on establishing appropriate and affordable tariffs which translates into sustainable O&M cost recovery [
30,
31,
32].
With this in mind, the present study evaluates WTP for O&M services in eight water schemes in Idjwi Island (DRC). To the extent of the authors’ knowledge, there is no reported study on household demand for improved water services in this region. The implementing agencies in charge of the water infrastructures in the island for the last 15 years, ICLI and RAIDCO, grew concerned about the acute financial challenges for reliable service provision. These agencies intend to set with the communities new tariffs that can be acceptable, affordable, equitable and practicable. For this purpose, it is necessary a thorough understanding of the households WTP for O&M services. This is the goal of the present investigation.
3. Results
Household characteristics are presented in
Table 5. The majority (72.2%) of the respondents in the survey were female and roughly two-thirds were aged between 25 and 60 years. Among them, 33.5% had not received any formal education, less than half had completed primary school, and 21.5% had completed secondary school or beyond. In terms of occupation nearly two thirds were employed in agriculture, 23% were employed in trade and only 13.5% were employed in other sectors. Over 47% of this sample reported 5 to 8 members in the household.
A summary of descriptive statistics for the set of variables employed in the study is illustrated on
Table 6. Mean WTP
b has been estimated at 36 CDF and WTP
m at 327 CDF. These values represent the average estimated willingness to pay for O&M services of water supply in Idjwi. A significant WTP differential can be observed among water schemes. WTP
m ranges from 730 CDF in Mugote to 173 CDF in Chasi and 193 in Monvu. WTP
b ranges from 71 CDF in Kashihe to less than 20 CDF for Lugano, Chasi and Bwina. Additionally significant differences were identified (α = 0.01) for the remaining variables. Mean value for Expendit in Chasi is estimated at 0.41, around ten times inferior to the level of expenditure in other schemes such as Lubuye and Mugote. Mean value for Alternat ranges from 7.04 in Kashihe to 0.98 in Chasi. The average level of reliability of the water supply service is estimated at 6.39 in Lubuye and at 0.93 in Chasi.
With the purpose of evaluating the strength of the relationships between WTP and its conditioning factors, a correlation analysis in three steps was performed. In the first stage, it is observed that EXCLUD is the variable exerting the greatest influence over log (WTP
b) and log (WTP
m): significant Pearson correlation indicators for α = 0.01 of 0.398 and 0.393 (
Table 7). Furthermore, all the variables studied have a positive and significant correlation with log (WTP
b) and log (WTP
m). The correlation indicators show that Expendit stands out with values of 0.248 and 0.300 for both outcomes.
Having identified significant differences among water schemes for each predictor, in a second step a correlation study classified by water schemes was undertaken. Subsequently, an analysis classified by levels of excludability was also conducted. Results indicate that in Mugote a negative high correlation between log (WTP
b) and Meeting participation was identified (
Table 8). In addition, it is described a negative correlation between log (WTP
m) and Meeting related to low level of excludability, reaching a −0.472 coefficient in Chasi. However, the correlation between Meeting and log (WTP
b) became positive for the moderate level of excludability, being significant in Kashihe, Lugano, Monvu and Kadagara.
The variable Reliable has a negative correlation with log (WTPm) for the moderate level of excludability but shows a positive relationship with log (WTPb) and log (WTPm) for the moderate level. The correlation of Expendit with log (WTPm) is positive and significant for the moderate and high levels of excludability, while the correlation with log (WTPb) is positive and significant only for the moderate level. Time has a significant correlation with log (WTPm) for the low level of excludability, highlighting the strength of the relationship for the case of Chasi (0.611). Results also describe a positive correlation for Alternat with log (WTPb) for the moderate level of excludability and with log (WTPm) for the low level.
A multi-regression analysis has been conducted to estimate the relationship between WTP and the dependent variables through a predictive model. In a preliminary assessment, the collinearity of the independent variables was analysed. In particular, a principal component regression was performed for this purpose. As a result, the Variables Exclud, Time and Meeting were extracted. These variables explained 63.3% of the total variance. The remaining variables Reliable, Alternat and Expendit are also significantly correlated with log (WTP
b) and log (WTP
m). However, these predictors are simultaneously correlated for α = 0.01 with Exclud showing correlation indexes of 0.331 for Reliable, 0.252 for Alternat and 0.428 for Expendit. Therefore, they have been excluded from the models [
66].
A linear multi-regression model with logarithmic transformations (log-linear model) was selected to explain the variables WTP
b and WTP
m. A forward stepwise procedure has been conducted. In both cases, the regression analyses are significant for α = 0.01 with F values of 93.222 and 130.093. The values of R
2 are acceptable (0.193 and 0.205) considering the complexity of the study, the number of independent variables in each regression (two and three), the significance of the β coefficients and the number of cases used in the analysis [
67].
As expected from the correlation analysis, Exclud exerts the strongest influence on the independent variables. In the first step, this variable exerts a positive influence on log (WTP
b) explaining 15.6% of its variance with a β coefficient value of 0.098 (
Table 9). In the second and third step, the inclusion of the variables Meeting and Time improves the model, increasing the explained variance from 15.6% to 20.5% but the F value decreases notably from 201.041 to 93.222. In this final model, the β coefficients are 0.101 for Exclud, 0.035 for Meeting and 0.018 for Time.
Modelling log (WTPm) the variable Exclud explains 16.3% of the variance. The variable Time is included in the second step. It increases the R2 from 0.162 to 0.193 but it decreases the F value from 209.425 to 130.093. However, it should be highlighted that the significance level of the variables is 0.000. The variable Meeting is not included in the model because its influence is not significant in the third step. The coefficients β are positive in the two steps. The value of β for the variable Exclud in the first step is 0.070 and its influences increases up to 0.077 in the second step. The value of β for the variable Time is 0.034.
Accordingly, to these results the predictive models for log (WTP
b) and log (WTP
m) follow the equations:
4. Discussion
The financial viability of rural water O&M services relies largely on sustained community´s revenue collection. Current development models endorse partial cost recovery for O&M services through co-financing strategies shared by donors, local governments and community members. The design of appropriate water tariffs is key to sustained user payments in the long term. To achieve this it is of paramount importance to evaluate community demand for the services offered and to establish the economic value that households place on such services.
This study elicits household WTP for O&M services across eight water schemes. The results of the investigation reveal three important insights. First, the average economic value that community members in Idjwi assign to regular O&M services of the improved water systems has been estimated at 327 CDF per month. The findings show a notable WTPm differential among studied schemes of up to 420%. Reported WTPm estimates range from 730 CDF in Mugote to 174 CDF in Chasi. These estimates indicate the household preferences for acceptable services at each water scheme. These values allow us to understand the level of payment that water users from local schemes feel able or willing to afford. This information on local demand for improved services is of great importance for regulation authorities in order to establish acceptable water tariffs.
A significantly high rate of beneficiaries from the water systems reported demand for payable O&M services. Over 92% of respondents showed their preference for an improved source and indicated their intention to pay for O&M services. Evidence suggest that revenue collection systems are more likely to be sustainable if user contribution rates exceeds a 60% threshold [
1], showing the potential for water schemes in Idjwi to achieve stable revenue collection systems. However, there often exists a mismatch between communities expressing demand for improved systems and their payment behaviour for true costs [
68]. International agencies reveal that, across DRC, only around 21% of the interventions maintain an operational system of water tariffs ten years after implementation [
9].
Moreover, the total revenue collected from user contributions when applying the stated preferred monthly fee of 327 CDF would be far from guaranteeing full life-cycle-cost recovery for the water schemes on the island. Documentary data from the studied schemes show that in recent years some major repairs have exceeded a cost of 20 million CDF. However, in the design of cost-sharing arrangements, that ICLI and RAIDCO are in the process of implementing, water tariffs are planned to only cover minor repairs and preventative maintenance while major repairs, rehabilitations and replacements should be covered by a mix of revenue from government subsidies and donor support. Only if the new water tariffs are acceptable and affordable, could the revenue collected from user payments be sustained in the long term and contribute to the financial viability of the water systems.
Second, the design of alternative payment options may play an important role in establishing tariffs affordable for all, including the poorest. The average stated WTP per bucket has been estimated at 36 CDF, ranging from 71 CDF in Kashihe to 15 CDF in Chasi. This option implies a higher fee per liter of water (e.g., the total expenditure in water for a household of five members considering a consumption of one bucket per person per day would result in 1100 CDF per month). However, this option is more practicable for households in informal economies who struggle to gather the amount necessary for a monthly payment in a single installment. Most residents in Idjwi do not work in salaried positions [
33] thus they are obliged to manage their money on a day-to-day basis [
69]. The pay-per-bucket mode offers people with limited financial resources an opportunity to make use of the service on a day-to-day basis.
Third, findings reveal three primary determinants of households’ WTP for O&M services in Idjwi. The predictive model is mainly determined by the level of excludability to access improved water sources, the participation of beneficiaries in management meetings organised by the water committee and the level of monthly expenditure per household.
Despite proximity in geographical terms and despite having been implemented by the same agency in similar organizational designs, schemes have evolved towards different forms of management. Collective nature of management of water services has translated into user groups opting for different levels of excludability to provide long-term functioning of the water points. Previous studies suggested that applying public goods theory to communal management of water services could serve as an appropriate framework of assessment. Koehler [
64] reported that the institutional design of the water schemes as clubs (i.e., higher level of excludability) or as common pools (i.e., lower level of excludability) could influence payment behaviour. In Idjwi more exclusive groups have imposed tighter financial regulations to generate the required revenue. They have achieved this through membership fees, joining fees, fines and stricter enforcement mechanisms. Beneficiaries from systems with exclusive forms of management show higher average WTP per month than more inclusive groups. The results of this study suggest that in Idjwi a more exclusive form of management is related to higher user payment levels.
In the same way, the results also imply that households that spend more time fetching water from an improved source are more likely to report a higher WTP for O&M. Key informants informed that due to current deficiencies in O&M services many water points became non-functional. Community members served at those water points were pushed to walk further searching for an improved source. Thus, they have seen their time employed in fetching water increase considerably. Users who require more time to fetch water are willing to pay higher water fees in order to improve O&M services and to re-establish functioning water points.
Additionally, participation in meetings held by the water committees results in a higher WTP among participants. During the focus group discussions, some actors suggested that community members who regularly participate in informative and managerial gatherings with the committees become more aware of the financial challenges faced by the systems and accordingly report stronger preferences for O&M services.
In this study several potential limitations have been identified. The unique social, cultural and political landscape of Idjwi Island limits potential generalization of the findings. The team of enumerators for the survey was recruited from amongst technicians employed at the water provider. This may have influenced community behaviour despite strict ethical policies. To minimize the impact, each enumerator was assigned to survey a water scheme different from the scheme they regularly work at. Protest votes and yea-sayers were not identified with additional questions, which could introduce downward bias into WTP estimates. Finally, there are also concerns about potential strategic and hypothetical biases associated with the CV method survey. Strategic bias in this investigation appears because respondents may deliberately formulate their answers to influence the outcome of the study in their own interest [
70]. Hypothetical bias appears because there is no real purchase of the service, which generally turns into an overestimation of WTP [
71]. Being aware of these issues, it is necessary to be conservative with the estimates and associated implications.