1. Water Supply and Sanitation in Uzbekistan Ayse Kudat The World Bank 1998

2. Low tariffs, costs not recovered With low tariffs, consumers use water inefficiently High water usage drives up costs and investment needs Utility lacks resources, postpones investment and maintenance Assets and service quality deteriorate With the poor service, customers are less willing to pay The utility depends increasingly on state subsidies Managers lose their autonomy and incentives to perform (soft budget) Efficiency drops Subsidies often fail to materialize Utility lacks resources, even to pay wages or recurrent costs System assets go down the drain CRISIS, HUGE RECONSTRUCTION COSTS Motivation and service deteriorate further What low tariffs do to utilities... Figure 1 Source: Presentation Water and Wastewater Utilities: covering costs, financing investments, Vincent Gouarne, Improving Water and Wastewater Services Seminar, Golitsyno, April 1997

3. Education Levels in Gagarin and Oriol Figure 2 Source: Household Survey in Gagarin and Oriol, March and July 1997

4. Employment Status of Oriol and Gagarin Residents Figure 3 Source: Household Survey in Gagarin and Oriol, March and July 1997 GagarinOriol

5. Average Monthly Household Income in Gagarin Average = 881,196 rubles/month Figure 4A Source: Household Survey in Gagarin, March 1997

6. Average Monthly Household Income in Gagarin Households Which Have Central Pipeline Connections Average = 931,988 rubles/month Figure 4B Source: Household Survey in Gagarin, March 1997

7. Average Monthly Household Income in Gagarin Households Which do not have Central Pipeline Connections Average = 658,982 rubles/month Figure 4C Source: Household Survey in Gagarin, March 1997

8. Delays in Wage and Pension Payments in Gagarin Wage Payments Average delay: 3.09 months Pension Payments Average delay: 1.99 months Figure 5 Source: Household Survey in Gagarin, March 1997

9. Average Monthly Household Income in Oriol Average = 977,402 rubles/month Source: Household Survey in Oriol, July 1997 Figure 6A

10. Average Monthly Household Income in Oriol Households Which Have Central Pipeline Connections Source: Household Survey in Oriol, July 1997 Average = 1,002,945 rubles/month Figure 6B

11. Average Monthly Household Income in Gagarin Households Which do not have Central Pipeline Connections Average = 838,377 rubles/month Source: Household Survey in Oriol, July 1997 Figure 6C

12. Problems with the Water Supply for Connected Households in Gagarin Figure 7A Source: Household Survey in Gagarin, March 1997

13. Problems with the Water Supply for Connected Households in Oriol Source: Household Survey in Oriol, July 1997 Figure 7B

14. Complaints About Water and Evaluation of Its Quality for Connected Households in Gagarin Have complaints (88.2%) Unsure (2.2%) No complaints (9.6%) Figure 8A Source: Household Survey in Gagarin, March 1997

15. Source: Household Survey in Oriol, July 1997 Complaints About Water and Evaluation of Its Quality for Connected Households in Oriol Have complaints (93.6%) No complaints (6.4%) Figure 8B

16. Connected Households in Gagarin Willingness to Make Monthly Payments as Function of Income Willingness to pay Current payments Figure 9A Source: Household Survey in Gagarin, March 1997

17. Connected Households in Gagarin Willingness to Make Monthly Payments for Improved Water Quality 81.4% are willing to pay for improvements Average = 3.6% of monthly household income Current average payments = 2.0% of monthly household income Caution: 18.6% are not willing to pay anything Source: Household Survey in Gagarin, March 1997 Figure 9B

18. Unconnected Households in Gagarin Willingness to Make Monthly Payments for Improvements in Water Supply 56.6% are willing to pay for improvements Average = 3.85% of monthly household income Current payments = 0.25% of monthly household income Caution: 43.4% are not willing to pay anything Source: Household Survey in Gagarin, March 1997 Figure 9C

19. Connected Households in Oriol Willingness to Make Monthly Payments as Function of Income Source: Household Survey in Oriol, July 1997 Current payments Willingness to pay Figure 10A

20. Connected Households in Oriol Willingness to Make Monthly Payments for Improved Water Quality Source: Household Survey in Oriol, July 1997 Caution: 20.3% are not willing to pay anything Current average water payments = 1.1% of monthly household income 79.7% are willing to pay for improvements Average = 2.3% of monthly household income Figure 10B

21. Source: Household Survey in Oriol, July 1997 Unconnected Households in Oriol Willingness to Make Monthly Payments for Improvements in Water Supply 63% are willing to pay for improvements Average = 3.3% of monthly household income Current average payments = 0.63% of monthly household income Caution: 37% are not willing to pay for improvements Figure 10C

22. Improvements in utensils in the house 28.9%; 24,000 rubles Improvements in Outside Pipes 28.2%; 25,600 rubles Improvements in Outside Sewerage Pipes 22.6%; 24,800 rubles Inside Connections 10.9%; 22,600 rubles Inside sewerage system connection 10.5%; 24,200 rubles Other Improvements 5.6%; 33,000 rubles Water System Improvements Demanded in Gagarin and Willingness to Pay Other category includes cleaner water, increase in pressure, improvements in hot water and connections to outside the house Figure 11A Source: Household Survey in Gagarin, March 1997 Improvements in Inside Pipes 28.9%; 28,000 rubles

23. Improvements in utensils in the house 52.1%; 21,150 rubles Improvements in Outside Pipes 20.4%; 20,500 rubles Improvements in Outside Sewerage Pipes 9.2%; 18,000 rubles Inside Connections 10.2%; 18,100 rubles Inside sewerage system connection 13.4%; 19,700 rubles Other Improvements 4.2%; 27,000 rubles Water System Improvements Demanded in Oriol and Willingness to Pay Other category includes cleaner water, increase in pressure, improvements in hot water and connections to outside the house Source: Household Survey in Oriol, July 1997 Improvements in Inside Pipes 44.7%; 21,700 rubles Figure 11B